Auditor Report of Bhanot Construction & Housing Ltd.

Mar 31, 2014

We have audited the accompanying financial statements of Bhanot Construction & Housing Limited, which comprise the Balance Sheet as at March 31, 2014, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Company''s Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards notified under the Companies Act, 1956 (the Act) read with the General Circular 15/2013 dated 13th September. 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 and in accordance with the accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

AUDITORS''RESPONSIBILITY

Our responsibility is to express an opinion on these financial statements based on our audit We conducted Our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audft to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management as well as evaluating the overall presentation of the financial statements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OPINION

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of tjie Balance Sheet, of the state of affairs of the Company as at March 31,2014;

(b) In the case of the Statement of Profit and Loss, of the loss of the Company for the year ended on that date;

(c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor''s Report) Order, 2003 (the Order) issued by the Central Government of India in terms of Section 227(4A) of the Act, we give in the Armexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by Section 227(3) of the Act, we report that:

a. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b. In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.

c. The Balance Sheet ,the Statement of Profit and Loss and the Cash Flow Statement, dealt with by this Report are in agreement with the books of account.

d. In our opinion, the Balance Sheet, the Statement of Profit and Loss and Cash Flow Statement comply with Accounting Standards notified under the Act read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act; 2013.

e. On the basis of the written representations received from the directors as on March 31, 2014, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of Section 274(lXg) of the Act.

Annexure to Auditor''s Report

RE: Bhanot Construction «Y Housing Ltd.

Referred to in paragraph 3 of our report of even date to the members on the accounts for the year ended 31* March 2014,

1) a) The Company Is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.

b) The fixed assets have been physically verified by the management at reasonable intervals, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

c) During the year, the Company has converted a part of land at dehradun (0.285 bigha out of 3 bigha) into Stock-In-Trade for Rs. 19.985 lacs (Book Value Rs. 10.756 lacs) and has also sold a land (i.e., 2.715 bigha) for Rs.l04.51lacs (Book Value Rs.102.21 lacs), but the going concern status is not affected.

2) a) The inventory has been physically verified during the year by the management In our opinion,the frequency of verification is reasonable.

b) The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size and the nature of its business.

c) The company is maintaining proper books of inventory. As explained to us, no discrepancies Were noticed during verification between the physical stocks as compared to books of records.

3 a)The company has not granted any loans, secured and unsecured, to companies, firms or other partners covered in the register maintained under section 301 of the Companies Act, 1956.

b) The company has an unsecured loan from M/s Indica Credits Private Limited amounting Rs. 33.24 lacs (Pertaining to FY 2010-11) covered in the register maintained under section 301 of the Companies Act, 1956.

4) In our opinion and according to the information and explanations given to us, the Company has no adequate internal control procedure commensurate with the size of the company and the nature of its business for purchase of inventories, raw materials, equipment and other assets and for sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls system of the company.

5) a)Based on the audit procedures applied by us and according to the information and explanation provided by the management, there are no particulars of contracts Or arrangements referred to in section 301 of the Act which are to be entered in the register required to be maintained under that section.

b) As per information & explanations given to us and in our opinion, the transaction entered into by the company with parties covered u/s 301 of the Act does not exceeds five lacs rupees in a financial year therefore requirement of reasonableness of transactions does not arises.

6) According to the information and explanations given to us, the company has accepted deposits (outstanding amount Rs.64.89 lacs) covered under the provisions of sections 58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public

7) In our opinion, the company has no internal audit system commensurate with the size and nature of its business.

8) The central government has prescribed the maintenance of cost records by the company under clause (d) of sub-section (1) of section 209 of the Act The company is not required to maintain such records.

9) a) The company is irregular in depositing with appropriate auttorities undisputed statutory dues applicable to it such as service tax, Tax Deducted Source & Luxury Tax,

b) According to the information and explanations given to us, undisputed amounts payable in respect of Luxury tax (Rs.7.66 lacs), service tax (Rs. 5.26 lacs) and Tax Deducted at source for the F.Y 2013-14 is payable for Rs.4.09 lacs as On 31/03/2014.

c) According to the information and explanation given to us, there are dues of income tax, amounting to Rs. 7.20 Crones relating to A.Y.2011-12 which have not been deposited on account of any dispute.

10) In Our opinion, the accumulated loses of the company are not more than fifty per cent of its net worth. Further, the company has incurred cash losses of Rs. 177.87 lacs during the financial year covered by our audit and there was no cash loss in the immediately preceding financial year.

11) In our opinion and according to the information and explanations given to us, the company has defaulted in repayment of dues to financial institution/bank amounting to :-

Bank Amount Unpaid Due For The Month (Rs. In lacs)

Loan From IQQ Bank (4345) 11.05 March-14

Loan From IQQ Bank (4342) 10.72 February - 14 & March - 14

Loan From IQQ Bank (4343) 5.02 March-14

HDFC Loan 12.02 March -14

HDFC (Home Equity) 15.06 February - 14 & March -14

TATA Capital (Skoda) 7.26 March -14

S. E. Investment Limited 68.06 February - 14 (Had To Be Closed On)

Total 129.19



12) In Our opinion and according the information and explanations given to us, no loans and advances have been granted by the company on the basis of security by way of pledge of shares, debentures and other securities;.

13) The company is not a chit fund or a nidhi/mutual benefit fund/ society.

14) The company is not dealing/ trading in shares, securities, and other invesrjnents. However it has maintained proper record in respect of shares held as long term investment and is held in the name of the company.

15) According to the information and explanation given to us, the company has not given any guarantee during the period for loans taken by others banks or financial institutions.

16) On the basis of information & explanation given to us, the company has not obtained any term loan during the period.

17) According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we report that no funds raised on short-term basis have been used for long-term investments and vice versa.

18) According to the information and explanations given to us, the company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956 during the year.

19) According to the information and explanations given to us, the company had not issued any debentures during the period.

20) As per information and explanations given to us, the company has not raised money by public issue during the year.

21) According to the information and explanations given to-us, no fraud on or by the company has been noticed or reported during the course of our audit

For Dhamija Sukhija & Co. Chartered Accountants (FRN: 000369N)

New Delhi Sd/- Date :30/05/2014 partner Membership No.:514761

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Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of M/s. Bhanot Construction & Housing Ltd, which comprise the Balance Sheet as at 31st March 2013, the Statement of Profit and Loss and Cash Flow Statement for the year ended on that date and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the company in accordance with the accounting principles generally accepted in India including Accounting Standard referred to in Section 211(3C) of the companies Act, 1956. This Responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors'' Responsibility

Our responsibility is to express an opinion on these Financial Statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants Of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidences about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatements of the financial statements, whether due to fraud or error. In making those risk assessments the auditors consider internal controls relevant to the company''s preparation and fair presentation of the financial statements in order to design audit procedure that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) In the case of the Balance Sheet, of the state of affairs of the company as at March 31, 2013;

(b) In the case of the Statements of Profit and Loss, of the profit for the year ended on that date: and

(c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the companies (Auditor''s Report) Order, 2003 ("the Order") issued by the central government of India in terms of Section 227(4A) of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, we report that:

(a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

(b) In our opinion, proper books of account as required by law have been kept by the company as far as appears from our examination of those books.

(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statements dealt with by this Report are in agreement with the books of account.

(d) In our opinion, the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement comply with the Accounting Standards referred to in section 211(3C) of the Act;

(e) On the basis of the written representations received from the Directors as on March 31, 2013 taken on record by the board of Directors, none of the directors is disqualified as on March 31, 2013 from being appointed as a director in terms of section 274(1) (g) of the Act.

Annexure to Auditor''s Report

RE: Bhanot Construction & Housing Ltd.

Referred to in paragraph 3 of our report of even date to the members on the accounts for the year ended 31st March 2013,

1) a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.

b) The fixed assets have been physically verified by the management at reasonable intervals, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

c) During the year, the Company has converted two flats & part of land at dehradun (4.25 bigha out of 7 bigha) into Stock-In-Trade for Rs.55265000/- (Book Value Rs. 17486388/-) and has also sold a car for Rs. 521000, but the going concern status is not affected. Details of fixed assets converted into stock in trade are as follows:

PARTICULARS BOOK VALUE VALUE AT WHICH FIXED ASSETS ARE CONVERTED INTO STOCK

Flat 401 1868101.00 12757500.00

Flat 402 1868101.00 12757500.00

Dehradun Land 13750186.00 29750000.00

2) a) The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

b) The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size and the nature of its business.

c) The company is maintaining proper books of inventory. As explained to us, no discrepancies were noticed during verification between the physical stocks as compared to books of records.

3) a) The company has not granted any loans, secured and unsecured, to companies, firms or other partners covered in the register maintained under section 301 of the Companies Act, 1956.

b) The company has an unsecured loan from M/s Indica Credits Private Limited amounting Rs. 33.24 lacs (Pertaining to FY 2010-11) covered in the register maintained under section 301 of the Companies Act, 1956.

4) In'' our opinion and according to the information and explanations given to us, the Company has no adequate internal control procedure commensurate with the size of the company and the nature of its business for purchase of inventories, raw materials, equipment and other assets and for sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls system of the company.

5) a) Based on the audit procedures applied by us and according to the information and explanations provided by the management, there are no particulars of contracts or arrangements referred to in section 301 of the Act which are to be entered in the register required to be maintained under that section.

b) As per information & explanations given to us and in our opinion, the transaction entered into by the company with parties covered u/s 301 of the Act does not exceeds five lacs rupees in a financial year therefore requirement of reasonableness of transactions does not arises.

6) According to the information and explanations given to us, the company has accepted deposits (outstanding amount Rs.298.20 lacs) covered under the provisions of sections 58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public.

7) In our opinion, the company has no internal audit system commensurate with the size and nature of its business.

8) The central government has not prescribed the maintained of cost records by the company under clause (d) of sub-section (1) of section 209 of the Act, therefore, the company not required to maintained such records;.

9) a) The company is irregular in depositing with appropriate authorities undisputed statutory dues applicable to it such as service tax, TDS & Luxury Tax.

b) According to the information and explanations given to us, undisputed amounts payable in respect of Luxury tax (Rs.253156/-), service tax (Rs. 317447/-) and Tax Deducted„at source for the F.Y 2012-13 is payable for Rs. 1153366 as on 31/03/2013.

c) According to the information and explanation given to us, there are no dues of sale tax, income tax, customs duty, wealth tax, excise duty and cess which have not been deposited on account of any dispute.

10) In our opinion, the accumulated loses of the company are not more than fifty per cent of its net worth. Further, the company has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year.

11) In our opinion and according to the information and explanations given to us, the company has defaulted in repayment of dues to financial institution bank amounting

Bank Amount Unpaid (Rs.)

HDFC Home Equity Loan 125552.00

Kotak Mahindra Prime Ltd. 124288.00

S E Investment Ltd 5272500.00

Total 5522340.00

12) In our opinion and according the information and explanations given to us, no loans and advances have been granted by the company on the basis of security by way of pledge of shares, debentures and other securities;.

13) The company is not a chit fund or a nidhi/mutual benefit fund/ society.

14) The company is not dealing/ trading in shares, securities, and other investments. However it has maintained proper record in respect of shares held as long term investment and is held in the name of the company.

15) According to the information and explanation given to us, the company has not given any guarantee during the period for loans taken by others banks or financial institutions.

16) On the basis of information & explanation given to us, the company has obtained term loan from HDFC Bank Limited for Rs.9.50Crore during the period.

17) According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we report that the no funds raised on short-term basis have been used for long- term investments and vice versa.

18) According to the information and explanations given to us, the company has made preferential allotment of shares to Mr. Rajeev Bhanot (200000 shares face value of Rs. 10 at a premium of Rs. 38) & Rajender Dev Bhanot (150000 shares face value of Rs. 10 at a premium of Rs. 38) against there share application money covered in the register maintained under section 301 of the Companies Act, 1956 during the year.

19) According to the information and explanations given to us, the company had not issued any debentures during the period.

20) As per information and explanations given to us, the company has not raised money by public issue during the year.

21) According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit-



Place: New Delhi For Dhamija Sukhija & Co.

Date: 30/05/2013 Chartered Accountants

FRN:000369N



{Prabhat Sukhija)

PARTNER

M.No.514761

---

Mar 31, 2012

1. We have audited the attached Balance Sheet of M/s Bhanot Construction & Housing Ltd. as at 31 st March 2012, the profit and loss account and also the cash flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 & 5 of the said order.

4. Further, to our comments in the Annexure referred to above we report that

i. We have obtained all the information and explanation, which to the best of our knowledge and belief were necessary for the purposes of our audit.

ii. In our opinion, proper books of accounts as required by law have been kept by the company so far as appears from our examination of those books.

iii. The balance sheets, profit and loss account and cash flow statement dealt with by this report are in agreement with the books of accounts.

iv. In our opinion, the balance sheet, profit and loss account and cash flow statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act 1956

v. On the basis of written representation received from the directors, as on 31 st March 2012 and taken on record by the Board of Directors, we report that none of the directors is disqualified from being appointed as a directors in terms of clause (g) of sub-section (1) of section 274 of the companies Act 1956

vi. In our opinion and to the best of our information and according to the explanations given to us the said accounts give the information required by the Companies Act 1956 in the manner so required and give a true and fair view in conformity with the accounting principle generally accepted in India

a. In the case of the balance sheet, of the state of affairs of the company as at 31 st March 2012.

b. In the case of the Profit and Loss Account, of the profit for the year ended on that date

c. In the case of the cash flow statement of the cash flows for the year ended on that date.

RE : Bhanot Construction & Housing Ltd.

Referred to in paragraph 3 of our report of even date to the members on the accounts for the year ended 31 st March

1 a) The company is maintaining proper records showing full particulars, including quantitative details and situate fixed assets.

b) The fixed assets have been physically verified by the management at reasonable intervals, in our opines reasonable having regard to the size of the company and the nature of its assets. No material discrepancies notices on such verification.

c) During the year, the Company has converted a plot into Stock-In-Trade for Rs. 15750000.00 (Book Value 7505455.00) but the going concern status is not affected.

2 a) The inventory has been physically verified during the year by the management. In our opinion, the frequent verification is reasonable.

b) The procedures of physical verification of inventories followed by the management are reasonable and adequacy relation to the size and the nature of the business.

c) The company is maintaining proper books of inventory. As explained to us, no discrepancies were noticed du verification between the physical stocks as compared to books of records.

3. a) The company has not granted any loans, secured and unsecured to companies, firms or other partners covered the register maintained under section 301 of the Companies Act 1956.

b) The company has not taken any loans, secured and unsecured, to companies firms or other partners covered the register maintained under section 301 of the Companies Act 1956.

4. In our opinion and according to the information and explanations given to us, the Company has an adequate inter control procedure commensurate with the size of the company and the nature of its business for purchase of inventory raw materials, equipment and other assets and for sale of goods and services. During the course of our audit, we ha not observed any continuing failure to correct major weaknesses in internal controls system of the company.

5. a) According to the information and explanation given to us, we are of the opinion that the particulars of all contraire or arrangement that need to be entered into the register required to be maintained in pursuance of section 301 the Companies Act 1956 have been so entered.

b) In our opinion and according to the information and explanation given to us, the transactions made in pursuance contracts or arrangements entered into the register required to be maintained in pursuance section 301 of t Companies Act 1956 and exceeding the value of rupees five lacs in respect of any party during the year have be made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6. According to the information and explanations given to us, the company has accepted deposits (outstanding amount Rs, 212.02 lacs) covered under the provisions of Section 58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public.

7. In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

8. The Central Government has not prescribed the maintained of cost records by the company under clause (d) of is section (1) of section 209 of the Act, therefore, the company not required to maintained such records :

9 a) The company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education fund, employees state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other material statutory dues applicable to it,

b) According to the information and explanations given to us no undisputed amounts payable in respect of income tax, wealth tax, sale tax, service tax is in arrears for more than six months as on 31.03.2012. However, Tax Deducted at source Rs. 185.24 lacs for the F. Y 2011 -12 is payable.

c) According to the information and explanation given to us, there are no dues of Sale tax, Income tax, Customs duty, Wealth tax, Excise duty and cess which have not been deposited on account of any dispute.

10. In our opinion, the accumulated loses of the company are not more than fifty percent of its net worth. Further, the company has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year.

11. In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to a financial institution, or bank or debenture holders.

12. In our opinion and according the information and explanations given to us, no loans and advances have been granted by the company on the basis of security by way of pledge of shares, debentures and other securities;

13. The company is not a chit fund or a nidhi/mutual benefit fund/society.

14. The company is not dealing/trading in shares, securities, debentures and other investments. However it has maintained proper record in respect of shares held as long term investment and are held in the name of the company.

15 According to the information and explanation given to us, the company has not given any guarantee during the period for loans taken by other banks or financial institutions.

16. According to the information and explanations given to us, the term loans raised during the year were applied, on an overall basis, for the purpose for which the loans were obtained.

17. According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we report that the no funds raised on short-term basis have been used for long term investments and vice versa.

18. According to the information and explanations given to us the company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956 during the year.

19. According to the information and explanations given to us, the company had not issued any debentures during the period.

20. As per the information and explanations given to us, the company has not raised any money by public issue during the year.

21. According to the information and explanations given to us, no fraud on or by the company has been notices or reported during the course of our audit.

For Dhamija Sukhija & Co.

Place : New Delhi Chartered Accountants

Date : 01/09/2012 FRN:000369N

(A.K. Dhamija)

PARTNER

M.No. 015963

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Mar 31, 2011

1. We have audited the attached Balance Sheet of M/s Bhanot Construction & Housing Ltd. as at 31 st March 2011, the profit and loss account and also the cash flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 & 5 of the said order.

4. Further, to our comments in the Annexure referred to above we report that

i. We have obtained all the information and explanation, which to the best of our knowledge and belief were necessary for the purposes of our audit.

ii. In our opinion, proper books of accounts as required by law have been kept by the company so far as appears from our examination of those books.

iii. The balance sheets, profit and loss account and cash flow statement dealt with by this report are in agreement with the books of accounts.

iv. In our opinion, the balance sheet, profit and loss account and cash flow statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act 1956

v. On the basis of written representation received from the directors, as on 31 st March 2011 and taken on record by the Board of Directors, we report that none of the directors is disqualified from being appointed as a directors in terms of clause (g) of sub-section (1) of section 274 of the companies Act 1956

vi. In our opinion and to the best of our information and according to the explanations given to us the said accounts give the information required by the Companies Act 1956 in the manner so required and give a true and fair view in conformity with the accounting principle generally accepted in India

a. In the case of the balance sheet, of the state of affairs of the company as at 31 st March 2011.

b. In the case of the Profit and Loss Account, of the profit for the year ended on that date

c. In the case of the cash flow statement of the cash flows for the year ended on that date.

RE : Bhanot Construction & Housing Ltd.

Referred to in paragraph 3 of our report of even date to the members on the accounts for the year ended 31 st March 2011.

1 a) The company is maintaining proper records showing full particulars, including quantitative details and situate fixed assets.

b) The fixed assets have been physically verified by the management at reasonable intervals, in our opines reasonable having regard to the size of the company and the nature of its assets. No material discrepancies notices on such verification.

c) During the year, the Company has not disposed of a substantial part of fixed assets, and accordingly going concern status is not affected.

2 a) The inventory has been physically verified during the year by the management. In our opinion, the frequent verification is reasonable.

b) The procedures of physical verification of inventories followed by the management are reasonable and adequacy relation to the size and the nature of the business.

c) The company is maintaining proper books of inventory. As explained to us, no discrepancies were noticed du verification between the physical stocks as compared to books of records.

3. a) The company has not granted any loans, secured and unsecured to companies, firms or other partners covered the register maintained under section 301 of the Companies Act 1956.

b) The company has not taken any loans, secured and unsecured, to companies firms or other partners covered the register maintained under section 301 of the Companies Act 1956.

4. In our opinion and according to the information and explanations given to us, the Company has an adequate inter control procedure commensurate with the size of the company and the nature of its business for purchase of inventory raw materials, equipment and other assets and for sale of goods and services. During the course of our audit, we ha not observed any continuing failure to correct major weaknesses in internal controls system of the company.

5. a) According to the information and explanation given to us, we are of the opinion that the particulars of all contraire or arrangement that need to be entered into the register required to be maintained in pursuance of section 301 the Companies Act 1956 have been so entered.

b) In our opinion and according to the information and explanation given to us, the transactions made in pursuance contracts or arrangements entered into the register required to be maintained in pursuance section 301 of the Companies Act 1956 and exceeding the value of rupees five lacs in respect of any party during the year have be made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6. According to the information and explanations given to us, the company has accepted deposits (outstanding amount Rs. 192.13 lacs) covered under the provisions of Section 58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public.

7. In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

8. The Central Government has not prescribed the maintained of cost records by the company under clause (d) of is section (1) of section 209 of the Act, therefore, the company not required to maintained such records :

9 a) The company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education fund, employees state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other material statutory dues applicable to it,

b) According to the information and explanations given to us no undisputed amounts payable in respect of income tax, wealth tax, sale tax, service tax is in arrears for more than six months as on 31.03.2011. However, Tax Deducted at source Rs. 181.02 lacs for the F.Y 2010 -11 is payable.

c) According to the information and explanation given to us, there are no dues of Sale tax, Income tax, Customs duty, Wealth tax, Excise duty and cess which have not been deposited on account of any dispute.

10. In our opinion, the accumulated loses of the company are not more than fifty percent of its net worth. Further, the company has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year.

11. In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to a financial institution, or bank or debenture holders.

12. In our opinion and according the information and explanations given to us, no loans and advances have been granted by the company on the basis of security by way of pledge of shares, debentures and other securities;

13. The company is not a chit fund or a nidhi/mutual benefit fund/society.

14. The company is not dealing/trading in shares, securities, debentures and other investments. However it has maintained proper record in respect of shares held as long term investment and are held in the name of the company.

15. According to the information and explanation given to us, the company has not given any guarantee during the period for loans taken by other banks or financial institutions.

16. On the basis of information & explanation given to us, the Company has obtained and / or applied term loan amounting to Rs. Nil /- during the period.

17. According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we report that the no funds raised on short-term basis have been used for long term investments and vice versa.

18. According to the information and explanations given to us the company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956 during the year.

19. According to the information and explanations given to us, the company had not issued any debentures during the period.

20. As per the information and explanations given to us, the company has not raised any money by public issue during the year.

21. According to the information and explanations given to us, no fraud on or by the company has been notices or reported during the course of our audit.

For Dhamija Sukhija & Co.

Place : New Delhi Chartered Accountants

Date : 01/09/2011 FRN:000369N

Sd/-

(A.K. Dhamija)

PARTNER

M.No. 015963

---

Mar 31, 2010

1. We have audited the attached Balance Sheet of M/s Bhanot Construction & Housing Ltd. as at 31st March 2010, the profit and loss account and also the cash flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the company''s management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

4. Further to our comments in the Annexure referred to above, we report that;

i. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit;

ii. In our opinion, proper books of accounts as required by law have been kept by the company so far as appears from our examination of those books.

iii. The Balance Sheet, profit and loss account and cash flow statement dealt with by this report are in agreement with the books of accounts.

iv. In our opinion, the balance sheet, profit and loss account and cash flow statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956

v. On the basis of written representation received from the directors, as on 31st March 2010 and taken on record by the Board of Directors, we report that none of the directors is disqualified from being appointed as a directors in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956;

vi. In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principle generally accepted in India :

a. In the case of the balance sheet, of the state of affairs of the company as at 31st March 2010.

b. In the case of the Profit and Loss Account, of the profit/loss for the year ended on that date, and

c. In the case of the cash flow statement, of the cash flows for the year ended on that date.

Annexure to Auditor''s Report

RE: Bhanot Construction & Housing Ltd.

Referred to in paragraph 3 of our report of even date to the members on the accounts for the year ended 31st March 2010,

1. a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.

b) The fixed assets have been physically verified by the management at reasonable intervals, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

c) During the year, the Company has not disposed of a substantial part of fixed assets, and accordingly going concern status is not affected.

2. a) The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

b) The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size and the nature of its business.

c) The company is maintaining proper books of inventory. As explained to us, no discrepancies were noticed during verification between the physical stocks as compared to books of records.

3. a) The company has not granted any loans, secured and unsecured, to companies, firms or other partners covered in the register maintained under section 301 of the Companies Act, 1956.

b) The company has not taken any loans, secured and unsecured, to companies, firms or other partners covered in the register maintained under section 301 of the Companies Act, 1956.

4. In our opinion and according to the information and explanations given to us, the Company has an adequate internal control procedure commensurate with.the size of the company and the nature of its business for purchase of inventories, raw materials, equipment and other assets and for sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls system of the company.

5. a) According to the information and explanation given to us, we are of the opinion that the particulars of all contracts or arrangements that need to be entered into the register required to be maintained in pursuance of section 301 of the Companies Act, 1956 have been so entered,

b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered into the register required to be maintained in pursuance section 301 of the Companies Act, 1956 and exceeding the value of rupees five lacs in respect of any party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6. According to the information and explanations given to us, the company has accepted deposits (outstanding amount Rs. 164.95 lacs) covered under the provisions of sections 58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public.

7. In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

8. The central government has not prescribed the maintained of cost records by the company under clause (d) of sub-section (1) of section 209 of the Act, therefore, the company not required to maintained such records;.

9. a) The company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education fund, employees state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other material statutory dues applicable to it.

b) According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, sale tax, service tax is in arrears for more than six months as on 31.03.2010. However, Tax Deducted at sourcte for the F.Y 2009-10 is payable for Rs.185 lacs.

c) According to the information and explanation given to us, there are no dues of sale tax, income tax, customs duty, wealth tax, excise duty and cess which have not been deposited on account of any dispute.

10. In our opinion, the accumulated loses of the company are not more than fifty per cent of its net worth. Further, the company has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year.

11. In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to a financial institution, or bank or debenture holders.

12. In our opinion and according the information and explanations given to us, no loans and advances have been granted by the company on the basis of security by way of pledge of shares, debentures and other securities;.

13. The company is not a chit fund or a nidhi/mutual benefit fund/ society.

14. The company is not dealing/ trading in shares, securities, debentures and other investments. However it has maintained proper record in respect of shares held as long term investment and are held in the name of the company.

15. According to the information and explanation given to us, the company has not given any guarantee during the period for loans taken by others banks or financial institutions.

16. On the basis of information & explanation given to us, the company has obtained and/or applied term loan amounting to Rs.Nil/- during the period.

17. According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we report that the no funds raised on short-term basis have been used for long- term investments and vice versa.

18. According to the information and explanations given to us, the company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956 during the year.

19. According to the information and explanations given to us, the company had not issued any debentures during the period.

20) As per information and explanations given to us, the company has not raised any money by public issue during the year.

21) According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

Place: New Delhi For Dhamija Sukhija & Co.

Date : 14/08/2010 Chartered Accountants

FRN: 000369N

Sd/-

(A.K. Dhamija)

PARTNER

M.No.015963

---

Jun 30, 2009

We have audited the attached Balance Sheet of M/s. Bhanot Construction and Housing Limited, as at 30st June, 09, and also the Profit and Loss Account and the cash flow statement of the company for the year ended on that date annexed thereto. The Incorporate in the said statement are the accounts of M/s Fakir Properties Ltd. are audited by us and M/s Bhanot Infrastructure and Hospitalities Ltd and M/ s Trishul Industries Pvt. Ltd are audited by other auditors. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted oyr audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on test basis, evidence supporting the accounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditor's Report) Order, 2003 as amended by the Companies (Auditor's Reports) (Amendment) Order, 2004 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclosed in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

Further to our comments in the Annexure referred to above, we report that:

I. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit;

II. In our opinion, proper books of account as required by law, have been kept by the company so far as appears from our examination of those books;

III. In our opinion, the Balance Sheet, Profit and Loss Account and Cash flow statement dealt with by this report are in agreement with the books of account;

IV. In our opinion, the Balance Sheet and Profit and Loss Account dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956;

V. On the basis of written representations received from the directors, as on 30th June, 2009 and taken on records by the Board of Directors, none of the directors of the company, is disqualified from being appointed as director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956;

VI. In our opinion, and to the best of our information and our information and according to the explanations given to us, the said accounts, read together with the notes thereon, give the information as required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India;

i. in the case of Balance Sheet, of the state of affairs of the Company as at 30th June, 2009; and

ii. In the case Profit and Loss Account, of the Profit/Loss for the year ended on that date; and

iii. In the case of the Cash Flow Statement, of the cash flow for the year ended on that date.

ANNEXURE TO AUDITOR'S REPORT

Re Bhanot Construction & Housing Limited

Referred to in paragraph 3 of our report of even date to the members on the accounts for the year ended 30th June, 2009,

i. (a) The company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;

(b) The fixed assets have been physically verified by the management at reasonable intervals, which in our opinion, is considered reasonable having regard to the size of company and nature of assets. No material discrepancies were noticed on such verification;

(c During the year, the company has not disposed of a substantial part of fixed assets, and accordingly going concern status is not effected;

ii. (a) The inventories have been physically verified by the management at reasonable intervals. In our opinion, the frequency of verification is reasonable;

(b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business;

(c) The company is maintaining proper records of inventories. As explained to us, there were no material discrepancies were noticed on physical verification of inventories as compared to books records;

iii. (a) The company has not granted any loans, secured and unsecured, to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956;

(b) The company has not taken any loan, secured and unsecured, from companies, firms or others parties covered in the register maintained under section 301 of the Companies Act, 1956;

iv. In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the company and the nature of its business, for the purchase of inventories and fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system of the company;

v. (a) According to the information and explanations given to us, we are of the opinion that the particulars of all contracts or arrangements that need to be entered into the register required to be maintained in pursuance of section 301 of the Companies Act, 1956 have been so entered;

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered into the register required to be maintained in pursuance section 301 of the Companies Act, 1956 and exceeding the value of rupees five lacs in respect of any party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time;

vi. The companies has accepted deposits from the public's deposit under the provision of sections 58A, 58AA or any other relevant provision of the Act and the Companies (Acceptance of Deposits) Rules, 1975;

vii. In our opinion, the company has an internal audit system commensurate with the size of the company and the nature of its business;

viii. The central government has not prescribed the maintained of cost records by the company under clause (d) of sub-section (1) of section 209 of the Act, therefore, the company not required to maintained such records;

ix. (a) The company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education fund, employees' state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other material statutory dues applicable to it;

(b) According to the information and explanations given to us, no undisputed amounts payables in respect of income tax, sales tax, wealth tax, service tax, customs duty and excise duty were in arrears, as at 30.06.09, for a period of more than six months from the date they became payable.

(c) According to the information and explanations given to us, there are no dues of income tax, sales tax, service tax, customs duty and excise duty which have not been deposited on account of any dispute.

x. In our opinion, the accumulated losses of the company are not more than fifty per cent of its net worth. Further, the company has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year.

xi. In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to a financial institution, bank or debentures holders.

xii. In our opinion and according to the information and explanations given to us, no loans and advances have been granted by the company on the basis of security by way of pledge of shares, debentures and other securities;

xiii. In our opinion, the company is not a chit fund or a nidhi mutual benefit fund/society;

xiv. According to the information and explanation given to us, the company is not dealing or trading in shares, securities, debentures and other investments. However, it has maintained proper records in respect of shares held as long term investment and are held in the name of the Company;

xv. According to the information and explanation given to us, the company has not given any guarantee during the period for loans taken by others banks or financial institutions;

xvi. On the basis of information & explanation given to us the Company has obtained and/or applied term loan amounting to Rs. Nil/-during the period.

xvii. According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we report that the no funds raised on short-term basis have been used for long-term investment and vice versa;

xviii. According to the information and explanations given to us, the company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956 during the period;

xix. According to the information and explanations given to us and the records examined by us, the Company has not issued any debentures during the period;

xx. The Company has not raised any money by public issue;

xxi. According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

For DHAMIJA SUKHIJA & CO.

Chartered Accountants

Sd/-

A. K. Dhamija

Place : New Delhi (Partner)

Date : 31st October, 2009 M. No. 015963

---

Mar 31, 2008

1 We have audited the attached Balance Sheet of M/S Bhanot Construction & Housing Ltd. as at 31- March 2008 Profit and loss aces and also the cash flow statement for the year ended on that date annexed thereto. These financial statement are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the auditing standards genera Or acceptance in Indi* that we loan and perform the audit to obtain reasonable assurance about whether the financial statements the free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts the financial statements. An audit also significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3 As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of sub section (4A) of section 227 of the Companies Act, 1956, we enclose ,n the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

4 Further to our comments in the Annexure referred to above, We report that.

i. We have obtained all the information and explanation, Which to the best of our knowledge and belief were necessary for the purposes of our audit.

ii. In our opinion, proper books of accounts as required by law have been kept by the company so far as appears from our examination of those books.

iii. The balance sheet, profit and loss Account and cash flow statement dealt with by this report are in agreement with the books of accounts.

vi. In our opinion and to the best of our information and according to the explanations given to us, they said accounts give the information required by the Companies Act, 1956 in the manner so required and g.ve a true and fair view in conformity with the accounting principle generally accepted in India :

a In the case of the balance sheet, of the state of affairs of the company as at 31th March 2008.

b In the case of the Profit and Loss Account, of the profit on that date, and

c. In the case of the cash flow statement, of the cash flows for the year ended on that date.

ANNEXURE

RE: Bhanot Construction & Housing Ltd.

Referred to in paragraph 3 of our report of even date,

1) a) The Company has maintained records of fixed assets in prescribed form.

b) All the assets have not been physically verified by the management during the year but there is a regular } Verification of fixed assets, which in our opinion, is reasonable having regard if the size of the company and the nature of its assets. No material discrepancies were not.ced on such verification.

c) During the year the Company has sold two motor car at market value.

2) a) The invented has; been physically verified during the year by the management. In our opinion, the frequency of

b) The procedure verification of inventories followed by the management are reasonable and adequate

c) The company is maintained proper books of inventory. No discrepancies were noticed during verification between the physical stocks and the books records.

3) a) During the year, the company has taken interest free loan from director and not granted any loan to companies, firms or other parties covered in the Registrar maintained under section 301 of the Companies Act.

b) Hence, clause regarding rate of interest & other terms & conditions of loans are not applicable.

c) There are no overdue amounts of loans granted to companies or firm listed in the register required to be maintained under section 301 of the Companies Act, 1956.

4) In our opinion and according to the information and explanations given to us, the Company has an adequate internal control procedure commensurate with the size of the company and the nature of its business for purchase of stores, raw materials, equipment and other assets and for sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls.

5) a) & b) According to the information and explanations given to us, the company had sold/purchased flats from group company in pursuance of contract or arrangements entered in the register maintained under section 301 of the companies act, 1956.

6) According to the information and explanations given to us, the company has accepted deposits covered under the provisions of sections 58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public. And the directives issued by the Reserve Bank of India and the provision, of Section 58A & 58AA of the Companies Act and the applicable rules framed there under have been complied with.

7) In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

8) The provisions for section 209(1) (d) of the Companies Act, 1956 regarding maintenance of cost records do not apply to the company.

9) a) The statutory dues including Provident Fund have been regularly deposited during the year with proper authority.

Provisions of E.S.I. Act are not applicable to the Company.

b) According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, sale tax, service tax is in arrears for more than six months as on 31.03.2008. The provisions of Wealth Tax, customs duty and Excise Duty are not applicable to the company.

c) According to the information and explanation given to us, there are no dues of sale tax, income tax, customs duty, wealth tax, excise duty and cess which have not been deposited on account of any dispute.

10) In our opinion the company has not incurred cash losses during the financial year and immediately preceding financial year covered by our audit and there are no accumulated losses.

11) In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to a financial institution, or bank or debenture holders.

12) The company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13) The company is not a chit fund or a nidhi/mutual benefit fund/ society. Therefore, the provisions of clause 4(xiii) of the companies (Auditor's Report) Order 2003 are not applicable to the company.

14) The company is not dealing/ trading in shares, securities, debentures and other investments. Proper records for the same are being maintained._

15) The company has not given any guarantee for loans taken by others from banks or financial institutions.

16) As per information and explanations provided to us, Term Loans were used for the purpose for which they were obtained.

17) According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we report that the no funds raised on short-term basis have been used for long-term investments. No long- term funds were raised.

18) According to the information and explanations given to us, the company has made preferential allotment of shares at face value to parties and companies covered in the register maintained under section 301 of the Act.

19) According to the information and explanations given to us, the company had not issued any debentures.

20) As per information and explanations given to us, the company has not raised any money by public issue during the year.

21) According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

Place : New Delhi For Dhamija Sukhija & Co.

Date : 27.6.2008 Chartered Accountants

Sd/-

(A.K. Dhamija)

PARTNER