1.  We have audited the attached Balance Sheet of ANANTHI CONSTRUCTIONS
 LIMITED as at 31st March 2012 and also the Profit & Loss Account for
 the year ended on that date annexed thereto and the Cash Flow statement
 for the period 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.
 
 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 evaluating the over all 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
 and amended by the '' Companies'' (Auditor''s Report) (Amendment)
 Order, 2004 and according to the information and explanations given to
 us during the course of the audit and on the basis of such checks as
 were considered appropriate, we enclose in the Annexure a statement on
 the matters specified in paragraph 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 purpose of our
 audit.
 
 b.  The Balance sheet and profit and loss account dealt with by this
 report are in agreement with the books of account subject to above
 remark.
 
 c.  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.
 
 d.  On the basis of the written representation received from the
 Directors, as on 31st March 2012 and taken on record by the Board of
 Directors, we report that none of the Directors is disqualified as on
 31st March, 2012 from being appointed as a Director in terms of Clause
 (g) of Sub-section (1) of Section 274 of the Companies Act, 1956.
 
 5.  In our opinion and to the best of our information, and according to
 the explanations given to us, the said financial statements, read
 together with the attachment schedules and notes forming part of
 accounts give the information required by the companies act, 1956, in
 the manner so required and present 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 of as at 31st March 2012;
 
 b.  in the case of the Profit and Loss Account, of the Loss for the
 year ended on that date, and
 
 c.  in the case of Cash Flow Statement, of the Cash Flows for the
 period ended on that date.
 
 Annexure to Auditors'' Report
 
 1) a) The company has maintained proper records showing full
 particulars including quantitative details and situation of fixed
 assets.
 
 b) The assets have been physically verified by the management in
 accordance with a phased programme of verification, which in our
 opinion is reasonable, considers the size and the nature of business.
 The frequency of verification is reasonable and discrepancies noticed
 on such physical verification were not maternal and have been properly
 dealt with in books of accounts.
 
 c) The movable assets have been disposed during the year retaining
 immovable assets of the company.
 
 2) a) the inventories have been physically verified by the management
 during the year at reasonable intervals.
 
 b) The procedures of physical verification of the inventories followed
 by the management are reasonable and. adequate in relation to the size
 of the company and nature its business.
 
 c) The company has maintained proper records of. inventories and,
 discrepancies noticed on physical verification of inventories as
 compared to book records were not material and have been appropriately
 dealt with.
 
 3) a) During the year the company has not granted any loans to
 Companies, firms or other parties covered in the Register maintained
 under section 301 of the Companies Act, 1956.
 
 b) There were no loans, secured or unsecured outstanding in the books
 of the company as no loans advanced by the company.
 
 c) The Company has not taken any Loans from Companies, firms or other
 parties covered in the Register maintained under section 301 of the
 Companies Act, 1956, during the year under Audit.
 
 4) There are adequate internal control procedures commensurate with the
 size of the company and the nature of its business with regard to
 purchase of inventory, fixed assets and for the sale of goods and
 services. There is no major weakness in the internal controlled.
 cedures.
 
 5) a) The particulars of contracts or arrangement referred to in
 section 301 of the Act have been entered in the register, required to
 be maintained under that section.
 
 b) There transactions made in pursuance of such contracts or
 arrangements have been made at prices which are reasonable having
 regard to prevailing market prices the relevant time.
 
 6) The company has not accepted any Deposits from public attracting
 provisions of section 58 A and 58 AA of Companies Act, 1956. Or any
 other relevant provisions of the Act.
 
 7) The Company has an adequate internal Audit system commensurate with
 its size and nature of its business.
 
 8) The company is not covered by the order made by the Central
 Government for the maintenance of cost records under section 209(1)
 (d) of the Companies Act, 1956.
 
 9) a) According to the information and explanations given to us and the
 records examined by us the company is regular in depositing with
 appropriate authorities undisputed statutory dues including Provident
 Fund, Investors, Education and Protection Fund, Income Tax, Sales Tax,
 Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
 statutory dues. According to the information, and explanations given to
 us, no undisputed arrears of statutory dues except Income Tax were
 outstanding as at 31st March, 2012 for a period of more than six months
 from the date they become payable.
 
 b) There were no disputed statutory dues in the books of the company as
 on 31st March 2012 except Income Tax. 
 
 10) The accumulated losses as at the end of financial year has exceeded
 fifty percent of its net worth and has incurred cash loss in the
 immediately preceding Financial year.
 
 11) The company has not defaulted in repayment of its dues to financial
 institution and banks.
 
 12) During the year, the company has not granted any loans and advances
 on the basis of security by way of pledge of shares, debentures or
 other securities.
 
 13) The provisions of special statutes applicable to chit fund, Nidhi
 or mutual benefit fund/societies are not applicable to the company.
 
 14) The company is not dealing or trading in shares, securities,
 debentures or other investment.
 
 15) According to the information and explanation given to as, the
 company has not given any guarantee during the year for loans taken by
 others from bank and financial institutions.
 
 16) The company has not availed any Term Loan during the year.
 
 17) According to information and explanation given to as, and on, an
 overall examination of the balance sheet of the company we report that
 the company has not used funds raised on short term basis 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 companies Act, 1956.
 
 19) During the year, the company has not issued debentures.
 
 20) During the year, the company has not raised money by public issue.
 
 21) According to the information and explanation given to as, and the
 book and records examined by us there are no frauds on or by the
 company that has been noticed or reported during the year.
 
                                        For VIJAYARAGHAVAN & ASSOCIATES
 
                                                  Chartered Accountants
 
                                                     P.B.Vijayaraghavan
 
                                                                Partner
 
 Place: Chennai 
 
 Date: 07-05-2012