1. We have audited the attached Balance Sheet of KARTIK INVESTMENTS
 TRUST LIMITED as at 31st March 2012 and also the Profit and Loss
 Statement and the 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.
 
 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 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 (Auditor''s Report) Order, 2003 as
 amended by the Companies (Auditor''s Report) (Amendment) Order 2004
 (together the ''Order'') 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, we enclose in the Annexure a statement on the matters
 specified in paragraphs 4 and 5 of the said Order.
 
 4. 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, Profit and Loss Statement and the 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 Statement and
 the Cash Flow Statement dealt with by this Report comply with the
 accounting standards referred to in sub-section (3-C) of Section 211 of
 the Companies Act, 1956.
 
 (v) On the basis of the 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) In our opinion and to the best of our information and according to
 the explanations given to us the said accounts together with the
 schedules attached thereto give the information required by the
 Companies Act, 1956, in the manner so required and gives 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 and
 
 b) In the case of the Profit and Loss Statement, of the profit for the
 year ended on that date; and
 
 c) In so far as it relates to the Cash Flow Statement, of the cash
 flows of the company for the year ended on that date.
 
 Annexure referred to in Paragraph 3 of the Auditors'' Report to the
 Members of Kartik Investments Trust Limited on the accounts for the
 year ended 31st March 2012.
 
 (i) The Company does not have any fixed assets and hence reporting on
 the same does not arise.
 
 (ii) The Company is an Investment Company and does not hold any
 inventory and hence reporting on physical verification of inventory and
 maintenance of inventory records does not arise.
 
 (iii) 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 Act.
 
 (iv) In our opinion and according to the information and explanations
 given to us, the internal control system is commensurate with the size
 of the company and the nature of its business.
 
 (v) According to the information and explanations given to us, there
 are no contracts or arrangements referred to in Section 301 of the
 Companies Act, 1956 during the year that need to be entered in the
 register maintained under that Section.
 
 (vi) The Company has not accepted any deposits from the Public.
 
 (vii) The Company has no formal internal audit department as such.
 However its control procedures ensure reasonable internal checking of
 its financial and other records.
 
 (viii) Maintenance of cost records have not been prescribed by the
 Central Government in respect of the business carried on by the
 Company.
 
 (ix) a) The Company is regular in depositing with appropriate
 authorities undisputed statutory dues like Income tax and Service tax.
 The Company did not have any dues in respect of Provident Fund,
 Employees State Insurance, investor education protection fund, sales
 tax, wealth tax, custom duty, excise duty and cess.
 
 b) According to the information and explanation given to us, there are
 no dues of sales tax, income tax, customs duty, wealth tax, service
 tax, excise duty and cess which have not been deposited on account of
 any dispute.
 
 (x) The Company has no accumulated losses as at 31st March 2012. It has
 not incurred any cash loss during the year and during the immediately
 preceding financial year.
 
 (xi) In our opinion and according to the information and explanations
 given to us, the company has not defaulted in repayment of dues to any
 financial institution or bank. The company has not issued any
 Debentures.
 
 (xii) The Company has not granted any loans and advances on the basis
 of security by way of pledge of shares, debentures and other
 securities.
 
 (xiii) The provisions of any special statute applicable to chit fund/
 nidhi/mutual benefit fund/societies are not applicable to the
 Company.
 
 (xiv) In our opinion and according to the information and explanations
 given to us the company has maintained proper records of the
 transactions and contracts relating to dealings in shares, securities,
 debentures and other investments and these are held by the company in
 its own name.
 
 (xv) According to the information and explanations given to us the
 Company has not given guarantees for loans taken by others from bank or
 financial institutions.
 
 (xvi) The Company has not taken any Term Loans and hence reporting on
 the utilisation of such loans does not arise.
 
 (xvii) According to the information and explanations given to us and on
 an overall examination of the balance sheet of the company as at 31st
 March 2012, we report that short term funds have not been used for
 long term investment.
 
 (xviii) The Company has not made any preferential allotment of shares
 to parties and companies covered in the Register maintained under
 section covered in the Register maintained under section 301 of the
 Companies Act, 1956.
 
 (xix) The Company has not issued any Debentures and hence the question
 of reporting on creation of security or charge in respect of Debentures
 issued does not arise.
 
 (xx) The Company has not raised any resources by way of public issues
 and hence the question of reporting on the disclosure relating to end
 use of such resources does not arise.
 
 (xxi) 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
 fraud on or by the company, noticed or reported during the year, nor
 have we been informed of such case by the management.
 
                                         For SHANKER GIRI & PRABHAKAR
                                                Chartered Accountants 
                                    Firm Registration Number : 03761S
 
                                                      P.PRABHAKAR RAO 
                                                              Partner 
                                             Membership Number: 18408
 
 CHENNAI: 17/5/2012