1.  We have audited the attached Balance Sheet of Camson Bio
 Technologies Limited as at 31st March 2012, and also the Profit and
 Loss Account and the Cash Flow statement for the year ended as on that
 date, both 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 mis-statements. 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.
 
 3.  As required by the Companies (Auditor''s Report) Order, 2003 as
 amended by the Companies (Auditor''s Report) (Amendment) Order, 2004
 (the ''order'') issued by the Central Government in terms of Section 227
 (4A) of the Companies Act, 1956 we give in the annexure, a statement on
 the matters specified in paragraphs 4 and 5 of the said order to the
 extent applicable.
 
 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
 those books;
 
 c.  The Balance Sheet, the Profit and Loss Account and the Cash Flow
 Statement dealt with by this report are in agreement with the books of
 account;
 
 d.  In our opinion, the Balance Sheet, the Profit and Loss Account and
 the Cash Flow Statement dealt with by this report comply with the
 accounting standards, to the extent applicable referred to in
 subsection (3C) of the Section 211 of the Companies Act, 1956;
 
 e.  On the basis of written representations received from the
 directors, taken on record by the Board of Directors, we report that
 none of the directors is disqualified as at 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; and
 
 f.  In our opinion, and to the best of information and according to the
 explanation given to us, the said Accounts, give the information
 required by the Companies Act, 1956 in the manner so required give a
 true and fair view
 
 i.  in the case of Balance Sheet, of the state of affairs of the
 Company as at 31st March 2012;
 
 ii.  in the case of Profit and Loss Account, of the profit of the
 Company 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.
 
 ANNEXURE TO THE AUDITORS'' REPORT
 
 [Referred to in paragraph (3) of our report of even date]
 
 (i) a. The Company has maintained proper records showing full
 particulars including quantitative details and situation of the fixed
 assets.
 
 b.  According to the information and explanation given to us, the fixed
 assets have been physically verified by the Management during the year
 in a phased periodic manner which in our opinion is reasonable having
 regard to the size of the Company and the nature of its assets. No
 material discrepancies were noticed on such verification.
 
 c.  As explained to us the Company has not disposed off any fixed asset
 during the year under review.
 
 (ii) a. As explained to us, inventories were physically verified during
 the year by the Management at reasonable intervals.
 
 b.  In our opinion and according to the information and explanation
 given to us, the procedures of physical verification of inventories
 followed by the management were reasonable and adequate in relation to
 the size of the Company and nature of the business.
 
 c.  The Company has strengthened inventory records which in our opinion
 need to be modified to record the movement and balances of the
 inventory on regular basis. We have been informed that no material
 discrepancies have been noticed on physical verification of stocks with
 the inventory records maintained by the Company.
 
 (iii) a. According to the information and explanations given to us, the
 Company has not granted any loans, secured or unsecured to Companies,
 Firms or other parties covered in the register maintained under section
 301 of the Companies Act, 1956.
 
 b.  According to the information and explanations given to us, the
 Company has taken unsecured loans from four parties covered in the
 register maintained under section 301 of the Companies Act, 1956.
 Maximum amount involved during the year was Rs 2,80,09,178/ and balance
 as on year end was Rs 2,48,71,146/
 
 (iv) In our opinion and according to the information and explanations
 given to us, internal control systems with regard to purchase of
 inventory, fixed assets, and with regard to sale of goods needs to be
 strengthened to make it commensurate with the size of the Company and
 the nature of its business. During the course our audit, we have been
 informed that the company has initiated corrective steps to address the
 weakness in internal controls.
 
 (v) a. To the best of our knowledge and belief and according to the
 information and explanations given to us, transactions to be entered in
 the register maintained under Section 301 of the Companies Act, 1956
 have been entered in the register
 
 b.  As per the information and explanations given to us, the Company
 during the year under review has not entered into any transactions
 exceeding Rs Five lakhs in respect of any party which need to be
 recorded in the register maintained under section 301 of the Companies
 Act, 1956.
 
 (vi) In our opinion and according to the information and explanations
 given to us, the Company has not accepted deposits in terms of the
 provisions of Sections 58A and 58AA or any other relevant provisions of
 the Companies Act, 1956.
 
 (vii) In our opinion, internal audit system of the Company needs to be
 strengthened to make it commensurate with the size and nature of its
 business.
 
 (viii) The Central Government has not prescribed maintenance of cost
 records under section 209 (1) (d) of the Companies Act, 1956 in respect
 of any of the activities of the company.
 
 (ix) a. According to the information and explanations given to us, the
 Company has generally been regular in depositing undisputed statutory
 dues, including Provident Fund, Investor Education and Protection Fund,
 Employees'' State Insurance, Wealth Tax, Service Tax, Custom Duty,
 Excise Duty, Cess and any other material statutory dues except for
 income tax where there is slight delay in a few cases. According to the
 information and explanations given to us, income tax dues of Rs
 1,61,731/ is outstanding as on 31st March 2012 for a period of more
 than six months from the date they became payable
 
 b.  According to the information and explanations given to us, there
 are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom
 Duty, Excise Duty and cess which have not been deposited on account of
 any dispute.
 
 (x) The Company does not have accumulated losses. The Company has not
 incurred cash losses during the financial year and in the immediately
 preceding financial year.
 
 (xi) According to the information and explanations given to us, the
 Company has not defaulted in the repayment of dues to banks.
 
 (xii) In our opinion and according to the information and explanations
 given to us, no loans and advances have been granted by the Company on
 the basis of securities by way of pledge of shares, debentures and
 other securities.
 
 (xiii) Company is not a chit fund/nidhi/mutual benefit fund/society.
 Accordingly, clause 4 (xiii) of the Companies (Auditor''s Report) Order,
 2003 is not applicable to the company during the year under audit.
 
 (xiv) In our opinion and according to the information and explanations
 given to us, the Company is not dealing in or trading in shares,
 securities, debentures and other investments. All the investments are
 held by the Company in its own name.
 
 (xv) The Company has not given any guarantee for loans taken by others
 from financial institutions or banks.
 
 (xvi) Based on the explanation given to us, the term loans were applied
 for the purpose for which loans are obtained.
 
 (xvii) According to the information and explanations given to us, and
 on an overall examination of the Balance Sheet of the Company, short
 term funds have not been used for long term investments.
 
 (xviii) The Company has not made any preferential allotment of shares
 to parties covered in the register maintained under section 301 of the
 Companies Act, 1956.
 
 (xix) The Company did not have any outstanding debentures during the
 year under review.
 
 (xx) The Company has not raised any money by public issues during the
 year.
 
 (xxi) Based upon the audit procedures performed by us 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 ISHWAR & GOPAL,
 
 Chartered Accountants
 
 K. V. Gopalakrishnayya
 
 Partner
 
 Membership No. 21748                       Place: Bangalore
 
 Firm Registration No. 001154S              Date: 30.08.2012