1. We have audited the attached Balance Sheet of ASSOCIATED MARMO AND
 GRANITES LIMITED as at 31st March 2011 and also the Profit & 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 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 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 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.
 
 4. Further to our comments in the Annexure referred to above, we report
 that:
 
 1. 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.
 
 2. 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.
 
 3. The Balance Sheet, Profit & Loss Account and cash flow statement
 dealt with by this report are in agreement with the books of account.
 
 4. 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
 Companies Act, 1956.
 
 5. On the basis of written representations received from the Directors,
 as on 31st March 2011 and taken on record by the Board of Directors, we
 report that none of the Director''s is disqualified as on 31st March
 2011 from being appointed as a Director in terms of clause (g) of
 Sub-Section (1) of Section 274 of the Companies Act, 1956.
 
 6. In our opinion and to the best of our information and according to
 the explanations given to us, the said accounts 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;
 
 (ii) In the case of the Profit & Loss Account, of the profit for the
 year ended on that date; and
 
 (iii) In the case of the cash flow statement, of the cash flows for the
 year ended on that date.
 
 On the basis of such checks, as we considered appropriate and as per
 the information and explanation given to us, we further report as
 under:
 
 1. (a) The company has generally maintained proper records showing
 particulars, including quantitative details and situation of fixed
 assets.
 
 (b) As explained to us, fixed assets were physically verified by the
 management at reasonable intervals, which, in our opinion, is
 reasonable looking to the size of the Company and the nature of its
 business. According to the information and explanation given to us any
 discrepancies noticed on physical verification have been adjusted in
 the books of accounts.
 
 (c) The company has not disposed off any substantial part of its fixed
 assets so as to affect its going concern.
 
 2. (a) As explained to us, inventories have been physically verified by
 the management during the year under reference.
 
 (b) The procedures explained to us, which are followed by the
 management are in our opinion, reasonable and adequate in relation to
 the size of the Company and nature of its business.
 
 (c) On the basis of our examination of the inventory records of the
 Company we are of the opinion, that the Company is maintaining proper
 records of its inventory. Discrepancies, which were noticed on physical
 verification of inventory as compared to book records, have been
 properly dealt with in the books of accounts.
 
 3. (a) The Company has taken unsecured loan from Companies, firms, or
 other parties listed in the register maintained under section 301 of
 the Companies Act, 1956 and from the Companies under same management as
 defined under section 370(1B) of the Companies Act, 1956.
 
 (b) In our opinion having regard to the long term involvement with the
 Company and considering the explanation given to us in this regard the
 term and conditions are not prima facie, prejudicial to the interest of
 the company.
 
 (c) The Company has not granted loans and advances (unsecured) to
 Companies, firms, or other parties listed in the register maintained
 under section 301 of the Companies Act, 1956 and to the Companies under
 same management as defined under section 370(1B) of the Companies Act,
 1956.
 
 4.  In our opinion and according to the information and explanation
 given to us, there are generally adequate internal control procedure
 with the size of the Company and the nature of its business with regard
 to the purchase of inventory, fixed assets and for sale of goods.
 During the course of our previous assessment, no major weakness in
 internal control had come to our notice.
 
 5. (a) On the basis of audit procedure performed by us and according to
 the information, explanation and representation given to us, we are of
 the opinion, the transactions to be entered in the register maintained
 under section 301 of the said Act, have been so entered.
 
 (b) In our opinion and according to the information and explanation
 given to us, the transaction with the aforesaid parties stated in
 clause 5(a) with whom transactions exceeding value of Rupees Five lacs
 have been entered into during the financial year are at prices which
 are reasonable having regard to the prevailing market prices at the
 relevant time.
 
 6.  The Company has not accepted any deposit from public within the
 meaning of section 58A of the Companies Act, 1956 and the rules framed
 thereunder.
 
 7.  In our opinion, the Company has an internal audit system
 commensurate with the size of the Company and the nature of its
 business.
 
 8.  The Central Government has not prescribed maintenance of cost
 records under section 209(l)(d) of the Companies Act, 1956.
 
 9.  According to the record of the Company, the Company is generally
 regular in depositing undisputed statutory dues including Provident
 Fund, Investor Education and Protection Fund, Employee''s State
 Insurance, Income Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and
 other statutory dues applicable to it with to the appropriate
 authorities. There are no undisputed amounts payable in respect of
 income Tax, Wealth Tax, Sales Tax, Custom Duty and Excise Duty which
 were outstanding, at the year ended for a period more than six months
 from the date they became payable.
 
 10. The Company''s accumulated losses at the end of the financial year
 are less than fifty percent of its net worth and the Company has not
 suffered any cash losses in the current year and previous year.
 
 11.  On the basis of records examined by us and the information and
 explanations given to us, the Company has not defaulted in repayment of
 dues to the financial institutions and banks.
 
 12.  As explained to us, the Company has not granted any loans or
 advances on the basis of security by way of pledge of shares,
 debentures or any other securities.
 
 13.  As informed and explained to us, the Company has not dealt /
 traded in securities or debentures during the year. In our opinion and
 according to the information and explanations given to us, proper
 records have been maintained of the transactions and contracts relating
 to dealing/ trading in shares and other investments and timely entries
 have been made therein. The shares and other investments have been held
 by the Company in its own name.
 
 14.  According to the information and explanations given to us the
 Company has not given any guarantee for loans taken by its associates
 or subsidiaries from bank or financial institutions.
 
 15.  On the basis of the records examined by us, and relying on the
 information complied by the Co. for co-relating the funds raise to the
 end use, we have to state that funds raised on a short term basis have
 not been used for long term investment and vice versa.
 
 16.  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.
 
 17.  The Company has not raised any money by public issue during the
 year.
 
 18.  According to the information and explanations given to us, and to
 the best of our knowledge and belief no fraud on or by the Company has
 been noticed or reported by the company during the year.
 
                                              For KUNAWAT & ASSOCIATES.  
                                                  Chartered Accountants 
 
 Place: Pasoond (Raj.)
                                                       (NIRMAL KUNAWAT)
 
 Date: 28th May, 2011.                                          Partner