We have audited the attached Balance Sheet of, KAMANWALA HOUSING
 CONSTRUCTION LIMITED as at 31st March, 2012 and also the Statement 
 of Profit and Loss for the year ended on that date annexed thereto 
 and Cash Flow Statement for the year 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. Those Standards require that we plan and perform the
 audit to obtain reasonable assurance about whether the financial
 statements 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 management, as well as evaluating the overall financial statement
 presentation. We believe that our audit provides a reasonable basis for
 our opinion.
 
 As required by the Companies (AuditorRss Report) Order, 2003 issued by
 the Central Government in terms of section 227(4A) of the Companies
 Act, 1956, as amended by Companies (AuditorRss Report) (Amendment)
 Order, 2004, and on the basis of such checks of the books and records
 of the company, as we considered appropriate, we enclosed in the
 annexure a statement on the matters specified in the said order to the
 extent applicable.
 
 Further to our comments in the Annexure referred to 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 and Statement of Profit and Loss dealt with by
 this report are in agreement with the books of account.
 
 (iv) In our opinion, the Statement of Profit & Loss and Balance Sheet
 comply with the Accounting Standards referred in sub-section 3(c) of
 section 211 of the Companies Act, 1956.
 
 (v) On the basis of written representations 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
 sub-section (1) of section 274 of the Companies Act, 1956.
 
 (vi) I n our opinion and to the best of our information and according
 to the explanations given to us the said accounts subject to notes
 appearing in note no. 1 of notes annexure herewith read together with
 significant Accounting Policies and other notes appearing elsewhere,
 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 31st March, 2012;
 
 (b) In the case of the Statement of Profit and Loss, of the profit
 for the year ended on that date; and
 
 (c) In the case of Cash Flow Statement, of the cash flows for the year
 ended on that date.
 
 ANNEXURE TO THE AUDITORSRs REPORT
 
 Annexure referred to in paragraph 3 of the AuditorsRs Report to the
 Members of KAMANWALA HOUSING CONSTRUCTION LIMITED, on the accounts for
 the year ended 31st March, 2012.
 
 1) (a) The Company is maintaining proper records
 
 to show full particulars including quantitative details and situation
 of fixed assets.
 
 (b) As per information and explanations given to us, physical
 verification of fixed assets has been carried out in terms of the
 phased programme of verification of its fixed assets adopted by the
 Company and no material discrepancies were noticed on such
 verification. In our opinion, the frequency of verification is
 reasonable having regard to the size of the Company and nature of its
 business.
 
 (c) Fixed Assets disposed off during the year were not substantial.
 According to the information and explanation given to us, we are of the
 opinion that the disposal of fixed assets has not affected the going
 concern status of the company.
 
 2) (a) The inventories have been physically verified
 
 during the year by the management. In our opinion, the frequency of
 verification is reasonable.
 
 (b) I n our opinion, the procedure followed by the management for such
 physical verification is reasonable and adequate in relation to the
 size of the Company and nature of its business.
 
 (c) In our opinion and according to the information and explanation
 given to us, the Company is maintaining proper records of Inventory. No
 discrepancies were noticed on verification between physical Inventory
 and the books records.
 
 3) (a) The Company has not granted secured or
 
 unsecured loans to any of the Companies covered in the register
 maintained under Section 301 of the Companies Act, 1956 and therefore
 Clause (3)(a)(b)(c)(d) of paragraph 4 of the Order are not applicable.
 
 (e) The Company has taken unsecured loans from Nine parties covered in
 the register maintained u/s 301 of the Companies Act, 1956 during the
 year and maximum amount involved during
 
 the year was Rs 661.16 Lacs and the year end balance of loan taken from
 such parties was Rs 102.72 Lacs.
 
 (f) Based on the information and explanation given to us, we are of the
 opinion that rate of interest and other terms and conditions of loans
 taken by the company from such parties are prima- facie is not
 pre-judicial to the interest of the Company.
 
 (g) The Company is regular in payment of principal amount and interest
 wherever stipulated.
 
 4) In our opinion and according to the information and explanations
 given to us, there is adequate internal control system commensurate
 with the size of the Company and the nature of its business for
 purchases of inventory and fixed assets and for the sale of goods and
 services. During the course of our audit, we have not observed any
 continuing failure to correct major weakness in the Internal Control
 System.
 
 5) (a) Based on the audit procedures applied by us and
 
 according to the information and explanations provided by the
 management, we are of the opinion that the particulars of contracts or
 arrangements referred to in Section 301 of the Companies Act, 1956 have
 been entered in the register required to be maintained under that
 Section.
 
 (b) In our opinion and according to the information and explanations
 given to us, the transactions made in pursuance of contracts or
 arrangements entered in the register maintained under Section 301 of
 the Companies Act, 1956 and exceeding the value of Rs 5.00 Lakhs in
 respect of any party during the period, have been made at prices which
 are reasonable having regard to prevailing market prices at the
 relevant time.
 
 6) In our opinion and according to the information and explanations
 given to us, the Company has not accepted any deposits from the public
 within the meaning of Section 58A and 58AA or any other relevant
 provisions of the Companies Act 1956 and the Rules framed there under.
 Hence Clause (vi) of the Order is not applicable.
 
 7) In our opinion, the Company has internal audit system commensurate
 with the size and nature of its business.
 
 8) As informed to us, the maintenance of cost records has not been
 prescribed by the Central Government u/s. 209(1)(d) of the Companies
 Act, 1956, in respect of the activities carried on by the Company.
 
 9) (a) According to the information and explanations
 
 given to us and the records examined by us, the Company is regular in
 depositing with appropriate authorities undisputed statutory dues
 including provident fund, investor education and protection fund,
 employees state insurance, income tax, sales tax, wealth tax, service
 tax, custom duty, excise duty, cess and other statutory dues except in
 case of service tax, arrears of statutory dues i.e. interest on service
 tax which is equal to Rs 11,25,506/-.  According to the information and
 explanations 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.
 
 (b) According to information and explanation given to us there are no
 disputed dues in respect of Sales tax, wealth tax, service tax, custom
 duty, excise duty and cess except income tax as at last day of the
 Financial Year. According to records of the Company, income tax which
 have not been deposited in the accounts of dispute are given below:
 
 Assessment Year Amount Dateoforder
 
 2007-08 Rs 1,69,763/- 21/12/2009
 
 2008-09 Rs 2,32,724/- 20/12/2010
 
 10) The Company has no accumulated losses at the end of the financial
 year and it has not incurred any cash losses in the current and
 immediately preceding financial year.
 
 11) According to the information and explanations given to us and the
 records examined by us, the Company has not defaulted in repayment of
 dues to financial institutions or banks or debenture-holders.
 
 12) 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 security by way of pledge of Shares, Debentures and other
 securities.
 
 13) I n our opinion the Company is not a chit fund or a nidhi / mutual
 benefit fund / society. Therefore, Clause 4(xiii) of the Companies
 (AuditorRss Report) Order, 2003 is not applicable to the Company.
 
 14) The Company has maintained proper records of transactions and
 contracts in respect of trading in securities, debentures and other
 investments and timely entries have been made therein. All shares,
 debentures and other investments have been held by the Company in its
 own name.
 
 15) According to the information and explanations given to us and the
 records examined by us, the Company has not given any guarantees for
 loans taken by others from banks or financial institutions, the terms
 and conditions whereof areprima-facie prejudicial to the interest of
 the Company.
 
 16) In our opinion, the term loans have been applied for the purposes
 for which they were obtained.
 
 17) On the basis of an overall examination of the Balance Sheet and
 Cash Flows of the Company and the information and explanations given to
 us, we report that the Company has not utilised any funds raised on
 short-term basis for long-term investments.
 
 18) The Company has not made any preferential allotment of shares
 during the year
 
 19) The Company has not issued any debentures.
 
 20) The Company has not raised any money by way of public issue during
 the year.
 
 21) In our opinion and according to the information and explanations
 given to us, no fraud on or by the Company has been noticed or reported
 during the year that causes the financial statements to be materially
 misstated.
 
                                               For MITTAL & ASSOCIATES 
                                                 Chartered Accountants
                                                       FRNo. : 106456W
 
                                                              M. Mehta
 
                                                  Partner M. No. 42990
 
 Place: Mumbai
 
 Dated: 30th May, 2012.