We have audited the Balance Sheet of ALPINE HOUSING DEVELOPMENT
 CORPORATION LIMITED as at 31st March, 2011 and the annexed Profit and
 Loss Account for the year ended on that date. 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 have 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 mis-statement. 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 the management, as well as evaluating the overall financial
 statement presentation. We believe that our audit provides a reasonable
 basis for our opinion.
 
 1.  We have, on the basis of such checks as we considered necessary and
 the information and explanations given to us, given our findings in the
 annexure hereto on the matters required by the Companies (Auditor''s
 Report) Order, 2003 issued by the central government under section 227
 (4A) of the Companies Act, 1956, as are applicable to the company.
 
 2.  Further to our findings in the Annexure referred to in paragraph
 (1) 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 the law have
 been kept by the Company so far as it appears from our examination of
 those books and proper returns adequate for the purposes of our audit
 have been received from branches not visited by us;
 
 c.  the Balance Sheet and the Profit and Loss Account dealt with by
 this report are in agreement with those Books of account;
 
 d.  in our opinion, the Profit and Loss Account and the Balance Sheet
 dealt with by this report comply with the Accounting Standards referred
 to in Section 211 (3C) of the Companies Act, 1956;
 
 e.  on the basis of the information given to us, we repot that none of
 the directors is disqualified as on 31st March, 2011 from being
 appointed as a director of the Company in terms of Section 274(1 )(g)
 of the Companies Act, 1956; and
 
 f.  In our opinion and to the best of our information and according to
 the explanation given to us, the accounts read together with the notes
 attached thereto 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 principles generally accepted in India:
 
 (i) In the case of the Balance Sheet, of the state of affairs of the
 company as at 31st March, 2011; and
 
 (ii) In the case of the Profit and Loss Account, of the profit of the
 company for the year ended on that date.
  
 ANNEXURE REFERRED TO IN PARA (1) OF OUR REPORT
 TO THE MEMBERS OF ALPINE HOUSING DEVELOPMENT CORPORATION LIMITED
 
 1.01 The company has maintained proper records showing full particulars
 including quantitative details and situation of fixed assets.
 
 1.02 The Fixed Assets have been physically verified at reasonable
 periodical interval by the management. As per the information given to
 us no discrepancy has been noticed.
 
 1.03 The company has not sold substantial part of its fixed assets
 during the year.
 
 2.01 The management has physically verified the inventory during the
 year.
 
 2.02 The procedure adopted for physical verification of the inventory
 is, in our opinion, reasonable and adequate in relation to the size of
 the company and the nature of its business.
 
 2.03 The company has maintained proper records of inventory. The
 discrepancies found thereon have been properly dealt within the
 accounts. The discrepancy noticed on physical verification is not
 significant and material.
 
 3.01 The Company has not taken loans from its Directors during the
 year. The Company has not granted any advance in the nature of loan to
 any of its Directors or their relatives or to a Firm or Company listed
 in the register maintained under Section 301 of the Companies Act, 1956
 in which the Directors of the Company or their relatives are interested
 as partners and Directors.
 
 4.01 In our opinion and according to the explanations given to us,
 there are adequate internal control procedures, commensurate with the
 size of the company and the nature of its business with regard to the
 purchase of goods and fixed assets and sale of goods. We have not
 noticed any continued failure to correct major deficiencies in internal
 control.
 
 5.01 On the basis of the checks made by us there were no transactions
 during the year, which need to be entered into a register maintained
 under section 301 of the Companies Act, 1956 are entered in the said
 registered.
 
 5.02 According to the information and explanations given to us, the
 prices received and paid by the company or the goods sold and purchased
 and the services rendered and availed, in respect of the transactions
 which are entered in the register, maintained u/s 301 of the Companies
 Act, 1956 are prima facie, reasonable and are not prejudicial to the
 company.
 
 6.01 The Company has not accepted any deposits from the public during
 the year.
 
 7.01 The company has an internal audit system which in our opinion is
 adequate having regard to the size of the company and the nature of its
 business.
 
 8.01 According to the information and explanations given to us the
 Company is not required to maintain any cost records in terms of the
 prescription made by the Central Government u/s section 209 (1)(d) of
 the Companies Act, 1956.
 
 9.01 The company has, according to the information and explanations
 given to us, the statutory liability in respect of Central Excise Duty,
 Provident Fund, Employees State Insurance, Income Tax, Entry Tax,
 Service Tax and Value Added Tax. On the basis of such checks as we
 considered necessary we found that the Company been regular in
 depositing such undisputed statutory dues with the appropriate
 authority, though delays have been caused in certain cases and there
 are no dues, which are due for more than a period of six months which
 remained outstanding as at 31 March 2011 except those specified in
 Note No. 9 of Schedule ''Q''.
 
 9.02 There are no dues in respect of Central Excise Duty, Provident
 Fund, Employees State Insurance, Income Tax, Entry Tax, Service Tax,
 Fringe Benefit Tax and Sales Tax, which have remained unpaid owing to
 pending dispute.
 
 10.  The company has no accumulated losses as on the date of Balance
 Sheet dealt with by this report.
 
 11.  That as per the information given to us, the Company has not
 defaulted in repayment of dues to financial institutions and Banks.
 
 12.  The company has not granted any 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.
 
 14.  The company has not sold any shares, debentures and other
 securities during the year.
 
 15.  The company has not given any guarantees for loans taken by others
 as per the information given to us.
 
 16.  The company did not borrow by way of term loans during the year
 except portion certain cash credit loans borrowed are split into
 Working Cap[ital Term Loans and according the information given to us
 the same have been applied for the purposes for which they are
 borrowed.
 
 17.  Having regard to the profits generated by the company and also the
 amount invested during the year on the long term assets, we are of the
 opinion, that the company has not used the short term funds for long
 term investments and vice versa.
 
 18.  The company has not made any preferential allotment of shares
 during the year.
 
 19.  The company has not issued any secured debentures either during
 the year or in the past.
 
 20.  The company has not raised any funds from the public during the
 year.
 
 21.  According to our information and to the explanations given to us
 no fraud on or by the company was noticed during the year.
 
 
                                         For RAO & VENKATESULU
 
                                         Chartered Accountants
 Place: Bengaluru
 Date : 30th May 2011                            Sd/-
 
                                            K.Y.NINGOJI RAO
                                                Partner
                                         Membership No. 18278
                                             FRNO-003108S