We have audited the attached Balance Sheet of Coimbatore Lakshmi
 Investment and Finance Company Limited, Coimbatore, as at 31st March,
 2012 and also the statement of Profit and Loss 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
 
 We conducted our audit in accordance with auditing standards generally
 accepted in India. These 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 the management as well as evaluating the over all financial
 statement 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 subsection (4A) of section
 227 of the Companies Act, 1956, we enclose in the Annexure a statement
 on the matters specified in paragraph 4 and 5 of the said Order.
 
 Further to our comments in the Annexure referred to above, we report
 that:
 
 1) We have obtained all the information and explanation, which to the
 best of our knowledge and belief were necessary for the purposes 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 and the statement of Profit and Loss dealt with by
 this report are in agreement with the books of account.
 
 4) In our opinion the Balance Sheet and statement of Profit and Loss
 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 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 Subsection (l) of Section 274 of the Companies Act, 1956.
 
 6) In our opinion and to the best of our information, and According to
 the explanation given to us, the said financial statements, give the
 information required by the Companies Act, 1956, in the manner so
 required and subject to:
 
 a) Note Number 19 regarding Non-reconciliation of Bank accounts the
 aggregate amount of difference as of 31st March 2012 is Rs. 1,15,750/-,
 the exact impact of which on the working results of the company is not
 ascertainable as the company is yet to complete the reconciliation.
 
 b) Note Number 20 regarding non-reconciliation of certain subsidiary
 records, the exact impact of which on the working results of the
 company is not ascertainable as the company is yet to complete the
 reconciliation.
 
 c) Note Number 25 regarding non receipt of confirmation of Balances
 from Parties.
 
 d) Non compliance of the Reserve Bank of India Guidelines in respect of
 Statutory Liquidity Ratio and Capital Adequacy Ratio.
 
 e) Note Number 15 regarding the non-recognition of disposal of
 Bangalore Branch assets, the quantum of which have not been identified
 and determined by the Company.
 
 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 2012
 
 ii.  In the case of the statement of Profit and Loss, of the Loss for
 the year ended on that date, and
 
 iii.  in the case of cash flow statement, of the cash flows for the
 year ended on that date.
 
 
                                                     
 Annexure to Auditor'' Report to the Member of Coimbatore Lakshmi
 Investment and Finance Company Limited, Coimbatore
 
 1. The fixed assets of the company have been written off, consequent to
 being obsolete.
 
 2. The company has neither taken nor granted any loans, secured or
 unsecured to or from companies, firms or other parties covered in the
 register maintained under section 301 of the Companies Act, 1956.
 
 3. There are adequate internal system procedures commensurate with the
 size of the company and the nature of its business, for the purchase of
 fixed assets and for the services rendered. During the course of our
 audit, we have not observed any major weaknesses in internal control
 
 4. We are of the opinion that the transactions that need to be entered
 in the register maintained u/s 301 of the Companies Act, 1956, have
 been so entered.
 
 5. The company has not accepted any deposits from public during the
 year. The Company law Board had passed an order dated 31.3.1999,
 regarding repayment of deposit and interest.
 
 6. The company has an internal audit system commensurate with its size
 and the nature of its business.
 
 7. The company is generally regular in depositing with the appropriate
 authorities undisputed statutory dues including -Provident Fund,
 Employees'' State Insurance, and Sales-tax. According to the information
 and explanation given to us, no undisputed arrears of statutory dues
 were outstanding as at 31st March, 2012 for a period of more than six
 months from the date they became payable.
 
 8. The accumulated losses of the Company as at 31st March 2012 are more
 than fifty per cent of its net worth and the company has incurred cash
 losses during the financial year covered by our audit and also in the
 immediately preceding financial year.
 
 9 a.  The company is dealing in shares, securities and other
 investments and the company has maintained proper records of
 transactions and contracts thereon.
 
 b.  The Company has made timely entries of the above transactions.
 
 c.  The shares, securities and other securities have been held by the
 company in its own name.
 
 10. The Company has not given any guarantee for loans taken by others
 from bank or financial institutions.
 
 11. According to the information and the explanation given to us and on
 an overall examination of the balance sheet of the company, we report
 that no funds raised on short-term basis have been used for long-term
 investment.
 
 12. According to the information and the explanation given to us and
 the books and records examined by us, no fraud on or by the company has
 been noticed or reported during the year.
 
 13. The other clauses of the order are not applicable to the company.
 
 
                                                      For Suri & Co.,
                                                Chartered Accountants
                                           Firm Registration No 4283S
 
                                                                 (Sd)
 
                                                           M. SIVARAM
                                                              Partner
                                                        M. No. 211916
 
 Place : Coimbatore
 Date : 30.05.2012