1.  We have audited the attached Balance Sheet of CHI INVESTMENTS
 LIMITED, as at March 31,2008, the Profit and Loss Account and also the
 Cash Flow Statement for the period ended on that date annexed thereto.
 These financial statements are the responsibility of the Companys
 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 (Auditors Report) Order, 2003 issued
 by the Central Government of India in terms of sub-section (4A) of
 Section 227 of the Companies Act, 1956 and on the basis of such checks
 of the books and records of the Company as we considered appropriate
 and according to the information and explanations given to us during
 the course of the audit, we enclose 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 and our
 comments in paragraph 3 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 law have
 been kept by the Company so far as appears from our examination of
 those books;
 
 (iii) The Balance Sheet, Profit and Loss Account and Cash Flow
 Statement dealt with by this report are in agreement with the books of
 account;
 
 (iv) 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;
 
 (v) On the basis of written representations received from the
 Directors, as on 31st March 2008, 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 2008 from being appointed as a director
 in terms of clause (g) of sub-section (1) of Section 274 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 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:
 
 (a) In the case of the Balance Sheet, of the state of affairs of the
 Company as at March 31, 2008;
 
 (b) In the case of the Profit and Loss Account, of the profit for the
 period ended on that date; and
 
 (c) In the case of the Cash Flow Statement, of the cash flow for the
 period ended on that date.
 
 ANNEXURE TO THE AUDITORS REPORT
 
 (Referred to in paragraph 3 of our report of even date)
 
 (i) The Company has neither granted nor taken any loans, secured or
 unsecured to / from companies, firms or other parties covered in the
 register maintained under Section 301 of the Companies Act, 1956.
 Accordingly, sub-clause (b), (c), (d), (f) and (g) of clause (iii) of
 the Order are not applicable;
 
 (ii) In our opinion, there is adequate internal control system
 commensurate with the size of the Company and the nature of its
 business for the purchase and sale of shares. During the course of our
 audit, we have not observed any major weaknesses in internal controls;
 
 (iii) No transactions have been entered during the year in the register
 maintained in pursuance of Section 301 of the Companies Act, 1956.
 Accordingly, sub- clause (b) of clause (v) of the Order is not
 applicable;
 
 (iv) The Company has not accepted any public deposits;
 
 (v) In our opinion, the Company has an internal audit system
 commensurate with its size and nature of its business;
 
 (vi) The Central Government has not prescribed the maintenance of cost
 records under Section 209(1 )(d) of the Companies Act, 1956;
 
 (vii) (a) According to the records of the Company, the Company is
 generally regular in depositing with the appropriate authorities
 undisputed statutory dues including Investor Education and Protection
 Fund, Income-tax, Wealth-tax and any other statutory dues applicable to
 it. Based on our audit procedures and according to the information and
 explanations given to us, there are no arrears of undisputed statutory
 dues which remained outstanding as at March 31, 2008 for a period of
 more than six months from the date they became payable;
 
 (b) According to the records made available to us and the information
 and explanations given by the management, there are no dues of Income
 tax / Wealth tax which have not been deposited with the appropriate
 authorities on account of any dispute;
 
 (viii) This year being the first financial year of the Company, clause
 (x) of the Order is not applicable;
 
 (ix) The Company has not taken any loan from financial institutions or
 banks or debenture holders;
 
 (x) Based on our examination and according to the information and
 explanation given to us the Company has not granted loans and advances
 on the basis of security by way of pledge of shares, debentures and
 other securities;
 
 (xi) The Company is not a chit / nidhi / mutual benefit fund /
 societies;
 
 (xii) Based on our examinations 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 and timely
 entries have been made in those records. We also report that the
 Company has held the investments in its own name;
 
 (xiii) During the period, the Company has not given any guarantee for
 loans taken by others from banks or financial institutions;
 
 (xiv) During the period, the Company has not obtained any Term Loan;
 
 (xv) The Company has not availed any short-term funds;
 
 (xvi) During the period, 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;
 
 (xvii) During the period, the Company has not issued any debentures;
 
 (xviii) During the period, the Company has not raised any money by
 public issue;
 
 (xix) During the course of our examination of the books and records of
 the Company, carried out in accordance with the generally accepted
 auditing practices in India and according to the information and
 explanations given to us, we have neither come across any instance of
 material fraud on or by the Company, noticed or reported during the
 period, nor have we been informed of such case by the management.
 
 
                                    For N.M. RAIJI & CO.
                                    Chartered Accountants
 
                                    CA.Y.N. Thakkar
 
                                    Partner
                                    Membership No. 33329
 
 Mumbai,
 Date : June 30, 2008