We have audited the attached Balance Sheet of M/s. INDO-ASIAN PROJECTS
 LIMITED as at 31st March, 2012 and also the Profit and Loss Account 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.
 
 We conduct 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 whether the financial statements
 are prepared, in all material respects, in accordance with an
 identified financial reporting frame work and are free of material
 misstatements. 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 wells as evaluating
 the overall financial statements presentation. We believe that our
 audit provides a reasonable basis for our opinion.
 
 Further to our comments given in para No.2 here below, we report that:
 
 1 .(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
 such books;
 
 (c) The Balance Sheet and Profit and Loss Account dealt with by this
 report are in agreement with the books of accounts.
 
 (d) In our opinion, the Balance Sheet and Profit and Loss Account
 comply with the Accounting standards referred to sub section (3C) of
 Section 211 of the Companies Act, 1956.
 
 (e) As per the information and explanations given to us, none of the
 Directors of the Company are disqualified from being appointed as a
 director under clause(g) of sub-section(1) of section 274 of the
 Companies Act, 1956.
 
 In our opinion and to the best of our information and according to the
 explanations given to us, the accounts read with the notes on accounts
 and the significant accounting policies give the information required
 by the Companies Act, 1956, in the manner so required and give a true
 and fair view and are in confirmation with Accounting Principles
 generally accepted in India.
 
 i) In the case of the Balance Sheet, of the State of affairs of the
 Company as at 31M March, 2012.
 
 and
 
 ii) In the case of the Profit and Loss Account, of the Loss of the
 Company for the year ended 31** March, 2012.
 
 2.  As required by the Companies (Auditors Report) order, 2003, issued
 by the Central Government of India in terms of Section 227 (4A) of the
 Companies Act, 1956, and on the basis of such checks as we considered
 appropriate, and explanations given to us in the course of audit, we
 further report that:
 
 (i) The company has maintained proper records showing full particulars
 including quantitative details and situation of the fixed assets. We
 are informed by the Management that all the fixed assets were
 physically verified during the year and no discrepancies were noticed.
 *
 
 (ii) None of the fixed assets have been revalued during the year.
 According to the information and explanations given to us, the Company
 has not disposed off substantial part of fixed assets and the going
 concern status of the Company is not affected.
 
 (iii) As explained to us, Stock of stores and spares, raw materials and
 finished goods have been physically verified by the management at
 reasonable intervals during the year. In our opinion, the frequency of
 such verification is reasonable having regard to the size of the
 company and the nature of its business.
 
 (iv) In our opinion and according to the information and explanations
 given to us, the procedures of physical verification of stocks followed
 by the management are reasonable and adequate in relation to the size
 of the Company and the nature of its business.  , ,
 
 3.  As explained to us, there were no material discrepancies noticed on
 physical verification of stock of stores and spares, raw materials and
 finished goods, having regard to the size of the operations of the
 Company.
 
 a The valuation of stocks is fair and proper and is in accordance with
 the normally accepted accounting principles and is on the same basis as
 in the preceding year.
 
 b The Company has not taken any loan secured or unsecured, from
 companies, firms or other parties listed in the Register maintained
 under section 301 of the Companies Act 1956 (1 of 1956).
 
 c The Company has not granted any loan to Companies, Firms or other
 parties listed in the Register maintained under Sub- section (1B) of
 Section 370 of the Companies Act, 1956.
 
 d The Company has not granted Loans and advances on the basis of
 securities by way of pledge of shares, debentures and other securities.
 
 e There is an adequate internal control procedure commensurate with the
 size of the Company and the nature of its business for purchase of
 plant and machinery, equipment, raw materials, stores and other assets
 and with regard to sale of the goods.
 
 f In our opinion and according to the information and explanations
 given to us, there are no transactions of purchases of goods and
 materials and sale of goods, materials and services made in pursuance
 of contracts or arrangements entered in the register maintained under
 section 301 of the Companies Act, 1956 and aggregating during the year
 to Rs.50,000/- (Rupees Fifty thousand only) or more in respect of any
 party).
 
 g According to the information and explanations given to us, there were
 no unserviceable or damaged stores, raw materials and finished goods.
 
 h The Company has not accepted any deposits from the public. Hence, the
 Provisions of Sections 58A of the Companies Act, 1956 and the Rules
 framed there under are not applicable to this Company.
 
 i The Company has no bye-products, and the company has not sold any
 scrap during the year.
 
 j No cost Records have been prescribed by the Central Government under
 section 209(1) (d) of the Companies Act, 1956 for the Company.
 
 k According to the explanations given by the Company, the proviso  of
 the Employees'' Provident Fund and Employees''
 
 State insurance are not applicable to the company for the time being.
 
 I There were no undisputed amounts payable by the Company in respect of
 income tax, Wealth tax, Sales tax, Customs Duty and Excise Duty,
 outstanding for a period of more than 6 months as at the last day of
 the financial year concerned.
 
 m According to the information and explanations given to us, no
 personal expenses of employees or directors have been charged to
 revenue account, other than those payable under contractual obligations
 or in accordance with generally accepted business practice.  .
 
 n The Company is not a Sick Industrial Company within the Meaning of
 clause (O) of Sub-section (1) of Section (3) of the Sick Industrial
 Companies (Special Provisions) Act, I956.  ''
 
 o The Company has an Internal Audit system which is commensurate with
 the size of the Company and its present activity. .
 
 p The Company has not carried on any trading activity during the year
 under report.
 
 q The Company has accumulated loses to the extent of Rs. 60.58 lakhs
 and they are less than 50% of the net worth of the Company. The Company
 has incurred a Cash Loss of Rs. 8.56 lakhs before prior period items
 and total loss is Rs. 17.71 lakhs in the financial year under report.
 
 r The Company is not a chit fund / nidhi / mutual benefit fund /
 society. Therefore, the provisions of clause 4 the Companies (Auditors
 Report) order 2003 are not applicable to the Company.
 
 s The Company is not dealing or trading in shares, securities,
 debentures and other investments. Accordingly the provisions of clause
 4 (xiv) of the Companies (Auditors Report) order 2003 are not
 applicable to the Company.
 
 t The Company has obtained Secured loan from a Nationalised Bank during
 earlieryears and the loan was repaid during the Current year under
 review well within the time permitted by the Bank.
 
 u 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 during the year.
 
 v. The Company has not raised any money by public issues during the
 year.
 
 w. The Company has not issued any debentures during the year.
 
 x.'' In accordance with the information and explanations given to us and
 on our examination of books and records, no fraud on or by the Company
 has been noticed or reported during the year.
 
                                               For S. RAMESH BABU & CO.,
 
                                                 Chartered Accountants.
 
 Place: Hyderabad                                          Sd/-
 
 Date: 30.05.2012.                                   (K. CHENNUBOTLU)
 
                                                           Partner
                                                  Membership No. 022535
                                              Firm Regd. Number: 07806S