We have audited the attached Balance Sheet of ASIAN HOTELS (NORTH)
 LIMITED as at 31st March, 2012, the Statement of Profit and Loss and
 also the Cash Flow Statement for the year ended on that date and
 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.
 
 We have 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 statements
 presentation. We believe that our audit provides a reasonable basis for
 our opinion.
 
 As required by the Companies (Auditor''s 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 to the
 extent applicable to the Company.
 
 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 account as required by the law
 have been kept by the Company so far as it appears from our examination
 of those books;
 
 (iii) The Balance Sheet, Statement of Profit and Loss and Cash Flow
 Statement dealt with by this report are in agreement with the books of
 account;
 
 (iv) In our opinion, the Balance Sheet, Statement of Profit and Loss
 and the Cash Flow Statement dealt with by this report comply with the
 Accounting Standards referred to in Section 211 (3C) of the Companies
 Act, 1956;
 
 (v) On the basis of written representation received from the directors
 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 Section 274(1)(g) 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 financial statements together
 with notes thereon and attached thereto give, in the prescribed manner,
 the information required by the Companies Act, 1956, 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 31st March, 2012;
 
 b) in the case of the Statement 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.
 
 ANNEXURE TO THE AUDITORS'' REPORT OF ASIAN HOTELS (NORTH) LIMITED, FOR
 THE YEAR ENDED 31ST MARCH, 2012
 
 1a) The Company has maintained proper records showing full particulars
 including quantitative details and situation of its fixed assets.
 
 1b) Though all the assets have not been physically verified by the
 management during the year, as per the information furnished to us,
 there exists a programme of physical verification of entire fixed
 assets over a reasonable period. In our opinion the frequency of
 verification of the fixed assets by the management is at reasonable
 intervals having regard to the size of the Company and nature of the
 assets and no material dis-crepancies were noticed between the book
 records and the physical inventory in respect of the assets physically
 verified.
 
 1c) During the year, the Company has not disposed off a substantial
 part of the fixed assets. Based on the information and explanations
 given by the management and on the basis of audit procedures performed
 by us, we are of the opinion that the sale of the fixed assets, if any,
 has not affected the going concern status of the Company.
 
 2a) The stocks of stores, provisions, beverages, crockery etc., have
 been physically verified during the year by the management. In our
 opinion, the frequency of verification is reasonable.
 
 2b) In our opinion and according to the information and explanations
 given to us, the procedures of physical verification of stocks followed
 by the management were found reasonable and adequate in relation to the
 size of the Company and the nature of its business.
 
 2c) The Company is maintaining proper records of inventory. The
 discrepancies noticed on verification between the physical stocks and
 book records were not material in relation to the operations of the
 Company and the same have been properly dealt with in the books of
 account.
 
 3a) The following are the particulars of loans granted by the Company,
 secured or unsecured, to companies, firms and other parties covered in
 the Register maintained under Section 301 of the Companies Act, 1956:
 
 Sl.    Name of
        Party         Relationship 
                      with              Maximum 
                                        Amount
                                       (excluding        Year end
                                                         Balance
 No.                  Company           interest) 
                                        Involved 
                                        during 
                                        the year        (excluding 
                                                         interest)
                                       (Rs. In Lakhs)  (Rs. in Lakhs)
 
 1    Fineline 
      Hospitality &  Subsidiary 
                     Company             39,279.09 
                                        (unsecured
                                         foreign         39,279.09
      Consultancy 
      Services 
      Pte. Ltd.                          currency 
                                         loan)
 
 3b) In our opinion the rate of interest and other terms and conditions
 of such loan are not prima facie prejudicial to the interest of the
 Company.
 
 3c) In respect of above loan, repayment of principal and interest is
 not yet due.
 
 3d) In respect of above loan, there is no overdue amount.
 
 3e) The Company has not taken any loans, secured or unsecured, from
 companies, firms or other parties 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, there are adequate internal control procedures
 commensurate with the size of the Company and nature of its business
 with regard to the purchase of stores, provisions, beverages, crockery
 etc., plant and machinery, equipment and other assets and for the sale
 of goods and services. During the course of our audit, we have not
 observed any continuing failure to correct any major weakness in
 internal control systems.
 
 5a) Based on the audit procedures applied by us and according to the
 information and explanations provided by the Management, we are of the
 opinion that the particulars of contracts or arrangements that need to
 be entered into the register maintained under Section 301 of the
 Companies Act, 1956 have been so entered.
 
 5b) In our opinion and according to the information and explanations
 given to us, the transactions made in pursuance of contracts or
 arrangements entered in the register maintained under Section 301 of
 the Companies Act, 1956 and exceeding the value of rupees five lakh in
 respect of any party during the year have been made at prices which are
 prima facie reasonable having regard to prevailing market prices to the
 extent available with the Company of similar items supplied under
 similar circumstances sale of such services to others except where due
 to certain special reasons as explained to us prices have been charged
 with no comparison available with the Company.
 
 6.  In our opinion and according to the information and explanations
 given to us, the Company has not accepted any deposits covered by the
 provisions of Section 58A and 58AA or any other relevant provisions
 of the Companies Act, 1956 and the Companies (Acceptance of Deposits)
 Rules, 1975, hence the provisions of clause 4 (vi) of the Companies
 (Auditor''s Report) Order, 2003 are not applicable to the Company.
 
 7.  Internal Audit has been conducted by an independent firm of
 Chartered Accountants during the year and it is commensurate with the
 size of the Company and the nature of its business.
 
 8.  The Central Government has not prescribed for the Company the
 maintenance of cost records under Section 209 (1)(d) of the Companies
 Act, 1956 and hence the provisions of clause 4 (viii) of the Companies
 (Auditor''s Report) Order, 2003 are not applicable to the Company.
 
 9a) According to the records of the Company examined by us, the Company
 has generally been regular in depositing with appropriate authorities
 undisputed statutory dues including Provident Fund, Investor Education
 and Protection Fund, Employees State Insurance, Income Tax, Sales Tax,
 Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
 applicable statutory dues.
 
 According to the information and explanations given to us, there are no
 undisputed amounts payable in respect of the aforesaid dues that were
 outstanding as at 31st March 2012 for a period of more than six months
 from the date they became payable.
 
 9b) According to the records of the Company examined by us and
 according to the information and explanations given to us, there are no
 dues of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Service Tax,
 Excise Duty or Cess which have not been paid on account of any dispute
 except the following demand of service tax:
 
 Name of the 
 Statute           Year to 
                   which it 
                   relates              Amount
                                        unpaid (Rs in 
                                        lakhs)           Forum where
                                                         dispute is
                                                         pending
 
 Finance 
 Act,1994         2002-2007               467.96         Commissioner
                                                         Of Central
                                                         Excise(Appeals)
 
 10.  The Company had no accumulated losses as at the end of the current
 financial year and has not incurred any cash losses in such financial
 year and in the immediately preceding financial period, hence
 provisions of clause 4 (x) of the Companies (Auditor''s Report) Order,
 2003 are not applicable.
 
 11.  As per books and records maintained by the Company and according
 to the information and explanations given to us, the Company has not
 defaulted in the repayment of any dues to financial institutions, banks
 or debenture holders as at the Balance Sheet date.
 
 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.  In our opinion the Company is not a chit fund or a nidhi / mutual
 benefit fund / society, hence the provisions of clause 4 (xiii) of the
 Companies (Auditor''s Report) Order, 2003 are not applicable to the
 Company.
 
 14.  Based on our examination of the records and evaluation of the
 related internal controls, we are of the opinion that proper records
 have been maintained of the transactions and contracts of dealing or
 trading in shares, securities, debentures and other investments and
 timely entries have been made in those records. We also report that the
 Company has held the shares, securities, debentures and other
 investments in its own name.
 
 15.  As at the balance sheet date, there are no guarantees given for
 loans taken by others from banks or financial institutions.
 
 16.  In our opinion, the term loans were applied for the purposes for
 which they were raised except to the limited extent as mentioned in 17
 below.
 
 17.  According to the information and explanations given to us and on
 an overall examination of Balance Sheet of the Company, we report that
 no funds raised on short term basis have been used for long term
 investment, except the following:
 
 Particulars                                       Amount in lakhs
 
 A short term loan availed during 
 the year from Bank                                    1,000.00
 
 Short term loans availed during the 
 previous year from Banks                              2,875.00*
 
 *    Repaid during the year
 
 18.  As the Company made no preferential allotment of shares to any
 parties and companies covered in the register maintained under Section
 301 of the Companies Act, 1956, the provisions of clause 4 (xviii) of
 the Companies (Auditor''s Report) Order, 2003 are not applicable to the
 Company.
 
 19.  As the Company has not issued any debentures the provisions of
 clause 4 (xix) of the Companies (Auditor''s Report) Order, 2003 are not
 applicable to the Company.
 
 20.  As the Company has not raised any money during the year by public
 issue, the provisions relating to end use thereof as per clause 4 (xx)
 of the Companies (Auditor''s Report) Order, 2003 are not applicable to
 the Company.
 
 21.  Based upon the audit procedures performed by us for expressing our
 opinion on these financial statements and information and explanations
 given by the management, we report that no fraud on or by the Company
 has been noticed or reported during the course of our audit.
 
                                         FOR MOHINDER PURI & COMPANY
 
                                               Chartered Accountants
 
                                      Firm Registration No.: 000204N
 
                                                           VIKAS VIG
 
 Place: New Delhi                                            PARTNER
 
 Dated : 28th May 2012                      Membership Number: 16920