1.  We have audited the attached balance sheet of A. K. Capital
 Services Limited (''the Company'') as at March 31, 2011 and also the
 profit and loss account and 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 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 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 Companies (Auditor''s report) Order, 2003 as amended
 by the Companies (Auditor''s report) (Amendments) Order, 2004
 (hereinafter referred to as ''the Order'') issued by the Central
 Government of India in terms of Section 227(4A) of the Companies Act,
 1956 (hereinafter referred to as ''the Act'') and on the basis of such
 checks, as we considered appropriate, we annex hereto 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 in paragraph 3
 above, 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, profit and loss account and cash flow statement
 dealt with by this report are in agreement with the books of account;
 
 d) 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 Act, to
 the extent applicable;
 
 e) On the basis of written representations received from the directors
 of the Company as on March 31, 2011 and taken on record by the Board of
 Directors, we report that none of the directors is disqualified as on
 March 31, 2011 from being appointed as a director of the Company in
 terms of clause (g) of sub-section (1) of Section 274 of the Act; and
 
 f) In our opinion and to the best of our information and according to
 the explanations given to us, the said accounts read together with
 notes thereon in Schedule ''O'' 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:
 
 i.  in the case of the balance sheet, of the state of affairs of the
 Company as at March 31, 2011;
 
 ii.  in the case of the profit and loss account, of the profit of the
 Company for the year ended on that date; and
 
 iii.  in the case of cash flow statement, of the cash flows of the
 Company for the year ended on that date.
 
 ANNEXURE TO THE AUDITORS'' REPORT REFERRED TO IN PARAGRAPH 3 OF OUR
 REPORT OF EVEN DATE
 
 1.  In respect of its fixed assets:
 
 a) The Company is in the process of updating records for its fixed
 assets to show full particulars including quantitative details and
 situation of its fixed assets.
 
 b) The Company has regular programme of physical verification of its
 fixed assets by which all fixed assets are verified in a phased manner
 over a period of three years. In our opinion, this periodicity of
 physical verification is reasonable having regard to the size of the
 Company and the nature of its assets.
 
 c) During the year, the Company has not disposed off substantial part
 of its fixed assets.
 
 2.  Considering the nature of business, the Company does not have
 inventory. In view of this, clauses 4 (ii) (a), 4 (ii) (b) and 4 (ii)
 (c) of the Order are not applicable to the Company.
 
 3.  In respect of loans, secured or unsecured, granted or taken by the
 Company to / from companies, firms or other parties covered in the
 register maintained under Section 301 of the Act:
 
 a) The Company has granted unsecured loan to its subsidiary company
 covered in the register maintained under Section 301 of the Act during
 the year. The maximum amount outstanding during the year was Rs.
 4,534.39 lacs and year end balance was Rs. 2,001.48 lacs.
 
 b) In our opinion, the rate of interest and other terms and conditions
 on which loans have been granted are prima facie, not prejudicial to
 the interest of the Company.
 
 c) In our opinion and according to information and explanations given
 to us, receipt of the principal amount and interest are regular,
 wherever stipulated.
 
 d) The loans given by the Company are repayable on demand hence there
 is no overdue amount.
 
 e) The Company has not taken loans, secured or unsecured from the
 companies, firms or other parties covered in the register maintained
 under Section 301 of the Act during the year. Accordingly, paragraph
 4(iii)(f) and 4(iii)(g) of the Order are not applicable.
 
 4.  In our opinion and according to the information and explanations
 given to us, there is an adequate internal control system commensurate
 with the size of the Company and the nature of its business, for the
 purchases of fixed assets and for sale of services. There is no
 purchase of inventory or sale of goods during the year. During the
 course of our audit, we have not observed any continuing failure to
 correct major weaknesses in internal control system.
 
 5.  a) According to the information and explanations given to us, we
 are of the opinion that the particulars of contracts or arrangements
 referred to in Section 301 of the Act have been so entered in the
 register required to be maintained under that Section.
 
 b) In our opinion and according to the information and explanations
 given to us, the transactions made in pursuance of such contracts or
 arrangements aggregating during the year to Rs. 500,000 or more in
 respect of each party have been made at prices which are reasonable
 having regard to the prevailing market prices at the relevant time.
 
 6.  The Company has not accepted any deposits from the public within
 the meaning of Section 58A and 58AA or any other relevant provisions of
 the Act, during the year.
 
 7.  In our opinion, the Company has an adequate internal audit system
 commensurate with its size and nature of its business.
 
 8.  In our opinion and according to the information and explanations
 given to us, the Central Government has not prescribed maintenance of
 cost records under Section 209(1)(d) of the Act.
 
 9.  a) According to the information and the explanations given to us,
 the Company is generally regular in depositing undisputed
 
 statutory dues including provident fund, investor education and
 protection fund, income tax, sales tax, wealth tax, custom duty, excise
 duty, cess and other material statutory dues as applicable, with the
 appropriate authorities. There were no arrears in this respect as at
 March 31, 2011 for a period of more than six months from the date they
 became payable.
 
 b) According to information and explanations given to us, there are no
 dues of sales tax, service tax, income tax, custom duty, wealth tax,
 excise duty and cess, which have not been deposited on account of any
 dispute.
 
 10.  The Company has no accumulated losses at the end of the financial
 year and it has not incurred any cash losses in the current year and in
 the immediately preceding financial year.
 
 11.  In our opinion and according to information and explanations given
 to us, the Company has not defaulted in repayment of dues to banks. The
 Company has not issued any debentures and there are no dues to
 financial institutions.
 
 12.  According to the information and explanations given to us, the
 Company has not granted any loans or advances on the basis of security
 by way of pledge of shares, debentures and other securities.
 
 13.  In our opinion and according to information and explanations given
 to us, the Company is not a chit fund or a nidhi / mutual benefit fund
 / society. Accordingly, clause 4(xiii) of the Order is not applicable
 to the Company.
 
 14.  In our opinion and according to the information and explanations
 given to us, the Company has maintained proper records in respect of
 transactions relating to dealing in shares, securities, debentures and
 other investments. As per our examination of such records, we report
 that timely entries had been made in such records and that share,
 securities, debentures and other investments have been held by the
 Company in its own name.
 
 15.  According to information and explanations given to us, the Company
 has not given any guarantee for loans taken by others from banks or
 financial institutions.
 
 16.  Based on information and explanations given to us, the term loans
 have been applied for the purpose for which they were raised.
 
 17.  According to information and explanations given to us and on an
 overall examination of the Balance Sheet of the Company, we report that
 funds raised on short-term basis have not been used for long term
 investment.
 
 18.  The Company has not made any preferential allotment of shares to
 parties and companies covered in the register maintained under Section
 301 of the Act. Accordingly, paragraph 4(xviii) of the Order is not
 applicable.
 
 19.  The Company has not issued any debentures during the year.
 
 20.  The Company has not raised any money through a public issue during
 the year.
 
 21.  During the course of our examination of books of account and
 records of the Company, carried out in accordance with the generally
 accepted auditing practices in India and according to the information
 and explanations given to us, we have neither come across any instance
 of fraud on or by the Company, noticed or reported during the year, nor
 have we been informed of such case by the management.
 
 
 For Suresh Surana & Associates
 
 Chartered Accountants
 
 Firm Registration No.: 121750W
 
 Ramesh Gupta
 
 Partner
 
 Membership No.: 102306
 
 Place : Mumbai
 
 Date : August 10, 2011