(Formerly known as The Anand Electric Supply Company Limited)
 
 1.  We have audited the attached Balance Sheet of M/s. ANAND PROJECTS
 LIMITED (Formerly known as The Anand Electric Supply Company Limited)
 as at 31st March, 2011 and also the Profit and Loss Account 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 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 (Auditor''s Report) Order, 2003 issued
 by the Central Government 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:
 
 (a) 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;
 
 (b) In our opinion, proper books of account as required by law have
 been kept by the Company so far as it appears from our examination of
 the books of the Company;
 
 (c) The Balance Sheet and the Profit and Loss Account dealt with by
 this report are in agreement with the books of account of the Company;
 
 (d) In our opinion, the Balance Sheet and the 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, to
 the extent applicable to the Company;
 
 (e) On the basis of written representations received from the directors
 of the Company, as on 31st March, 2011 and taken on record by the Board
 of Directors, we report that none of the directors of the Company is
 disqualified as on 31st March, 2011 from being appointed as a director
 in terms of clause (g) of sub-section (1) to section 274 of the
 Companies Act, 1956;
 
 (f) Subject to the above, in our opinion and to the best of our
 information and according to the explanations given to us, the said
 accounts read together with the notes thereon, 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 Balance Sheet, of the state of affairs of the
 Company as at March 31st, 2011; and
 
 (ii) in the case of Profit and Loss Account, of the Profit for the year
 ended on that date;
 
 (iii) in the case of the Cash Flow Statement, of the cash flows for the
 year ended on that date.
 
 ANNEXURE TO THE AUDITORS'' REPORT
 
 Annexure referred to in Paragraph ''3'' of the Auditors'' Report to the
 members of M/s. Anand Projects Limited (Formerly known as The Anand
 Electric Supply Company Limited) on the accounts for the year ended 31
 March, 2011.
 
 On the basis of such checks as we considered appropriate and in terms
 of the information and explanations given to us, we state that:
 
 1.  a) The Company has maintained proper records showing full
 particulars including quantitative details and situation of its fixed
 assets;
 
 b) The fixed assets of the company have been physically verified by the
 management during the year and no material discrepancies were noticed
 on such verification;
 
 c) The company has not disposed off substantial part of the fixed
 assets during the year.
 
 2.  a) Physical verification of inventory has been conducted at
 reasonable intervals by the management.
 
 b) In our opinion, the procedures of physical verification of
 inventories followed by the management are reasonable and adequate in
 relation to the size of the Company and nature of its business.
 
 c) The company has maintained proper records of inventories.  No
 material discrepancies were noticed on physical verification.
 
 3.  a) The Company has neither granted any loans to, nor taken any
 loans from companies covered in the register maintained under section
 301 of the Companies Act;
 
 b) In view of the forgoing, the question of reporting on clauses 4
 (iii) (b), 4(iii) (c) and 4 (iii) (d) of the said Order does not arise;
 
 4.  In our opinion, and according to the information and explanations
 given to us, there are adequate internal control procedures
 commensurate with the size of the company and the nature of its
 business for the purchase of fixed assets. During the course of audit
 we have not observed any continuing failure to correct weaknesses in
 internal control;
 
 5.  a) In our opinion and according to the information and explanations
 given to us, the transactions that need to be entered into the register
 in pursuance of Section 301 of Act, have been so entered;
 
 b) Sub-clause (b) is not applicable;
 
 6.  The company has not accepted any deposits from the public within
 the meaning of Sections 58A and 58AA of the Act and the rules framed
 there under;
 
 7.  The Company has an internal audit system commensurate with its size
 and nature of its business;
 
 8.  The Central Government of India has not prescribed the maintenance
 of cost records under clause (d) of subjection (1) of Section 209 of
 the Act for any of the products of the Company;
 
 9. a) According to the information and explanations given to us and the
 records of the company examined by us, in our opinion, the company is
 generally regular in depositing the undisputed statutory dues
 including, income tax, wealth tax, service tax, customs duty, excise
 duty, cess and other material statutory dues as applicable with the
 appropriate authorities;
 
 b) According to the information and explanations given to us and the
 records of the company examined by us, there are no dues of income tax,
 wealth tax, service tax, customs duty, excise duty and cess which have
 not been deposited on account of any dispute;
 
 10.  The company did not have accumulated losses at the end of the
 financial year;
 
 11.  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.  According to the information and explanations given to us, 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.  In our opinion, the company is not a chit fund or a nidhi/mutual
 benefit fund/society.  Therefore, the provisions of clause 4 (xiii) of
 the Companies (Auditors Report) Order, 2003 are not applicable to the
 company.
 
 14.  In our opinion, the company has maintained proper records of
 transactions and contracts relating to dealing or trading in shares,
 securities, debentures and other investments during the year and timely
 entries have been made therein. Further, such securities have been held
 by the company in its own name or are in the process of transfer in its
 name, except to the extent of the exemption granted under Section 49 of
 the Act;
 
 15.  According to the information and explanations given to us, the
 company has not given any guarantee for loans taken by others from bank
 or financial institutions;
 
 16.  The company has not taken any term loan accordingly the question
 of reporting on its application does not arise;
 
 17.  On the basis of reviews of utilization of fund on an overall
 basis, no fund was raised on short term basis;
 
 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 Companies Act, 1956 during the year;
 
 19.  The Company has not issued any debentures;
 
 20.  The Company has not raised any money by public issues during the
 year;
 
 21.  To the best of our knowledge and belief and according to the
 information and explanations given to us, no fraud on or by the company
 was noticed or reported during the year.
 
 
 For M/s. Pramod & Associates
 Chartered Accountants
 
 (Vipul I. Sheth)
 Partner
 (Membership No.: 101282)
 Firm Registration No.: 001557C
 
 Mumbai: 30th May, 2011