1.  We have audited the attached Balance Sheet of Kilburn Office
 Automation Ltd as at 31st March, 2012, and the Statement of Profit 
 and Loss and the Cash Row Statement for the year ended on that date 
 annexed thereto, which we have signed under reference to this report.
 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, V\fe 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
 issued by the Central Government of India in terms of sub-section (4A)
 of Section 227 of The Companies Act, 1956'' of India (the ‘Act) 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, we give in theAnnexure a statement on the
 matters specified in paragraphs 4 and 5 of the said Order.
 
 4.  We report that:
 
 a) As indicated in Note No. 2.36 Service Income, Interest Costs &
 Income are accounted for on cash basis. However the consequential
 effect on the results for the year and net assets position of the
 company as at the year end has not been ascertained.
 
 b) As indicated in Note No. 2.42(a)& (b), we are unable to express an
 opinion on the recoverability
 
 1 * bf''Loans and Advances andthe teSi/ttŁnf provision; if any, that
 may ariSe''them from. 
 
 c) As indicated in Note No. 2.44, past deferred tax assets have been
 recognised in the books on the basis of business plans and projected
 future profitability of the company.
 
 5.  The aggregate impact of our observations in paragraph 4 above on
 the results for the year ended 31st March, 2012 and the net assets
 position as at that date cannot be readily ascertained.
 
 6.  Further to our comments above we report that
 
 a) Subject to our remarks in paragraph 4 (a) to (c) above and other
 relevant notes, 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, subject to our remarks in paragraph 4(a) above,
 proper books of account as required by law have been kept by the
 company so far as appears from our examination of those books;
 
 c) The Balance Sheet Statement of Profit and Loss and Cash Flow
 Statement dealt with by this report are in agreement with the books of
 account;
 
 d) In our opinion, the Balance Sheet, Profit and LossAcoount and Cash
 Flow Statement dealt with by this report, subject to our remarks in
 paragraph 4(a) to (c) above, comply with the Aocounting Standards
 referred to in sub-section (3C) of section 211 of the Act;
 
 e) 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 Act;
 
 f) In our opinion and to the best of our information and according to
 the explanations given to us and subject to our remarks in paragraph
 4(a) above, the said financial statements together with the notes
 thereon and attached thereto give in the prescribed manner the
 information required by the Act.
 
 g) In our opinion and to the best of our information and according to
 the explanations given to us, subject to our remarks in paragraph 4
 above the consequential effect of which on the net asset position of
 the company as at 31st March, 2012 and the PnyBt/(Loss) for the year
 ended on that date is not ascertainable, the said financial statements
 give a true & fair view in conformity with the accounting principles
 generally accepted in India:
 
 i) in the case of the Balance Sheet, of the state of attains of the
 Company as at 31st March,2012, and
 
 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 the Cash Row Statement, of the cash flows for the
 year ended on that date.
 
 ANNEXURE TO AUDITORS REPORT
 
 [Referred to in paragraph 3 of the Auditors'' Report of even date to
 the members of Kilbum Office Automation Limited on the financial
 statements for the year ended 31st March, 2012]
 
 1.  (a) The company is maintaining proper records showing full
 particulars including quantitative detais and situation of fixed
 assets.
 
 (b) The fixed assets are physically verified by the management during
 the year which in our opinion, is reasonable having regard to the size
 of the company and the nature of its assets.
 
 (c) In our opinion and according to the information and emanations
 given to us substantial part of fixed assets has been disposed of by
 the company during the year, however, it had not affected the going
 concern of the Company.
 
 2.  (a) The inventory (excluding stocks with third parties and in
 transit) has been physically verified by the management during the
 year. In respect of inventory lying with third parties, these have
 substantiaiy been confirmed by them and those in transit have been
 verified by the management with reference to subsequent receipt and /or
 relevant documents. In our opinion, the frequency of verification is
 reasonable.
 
 (b) In our opinion, the procedures of physical verification of
 inventory followed by the management are reasonable and adequate in
 relation to the size of the company and nature of its business.
 
 (c) On the basis of our examination of the inventory records, in our
 opinion, the company is maintaining proper records of inventory. The
 discrepancies noticed on verification between the physical stocks and
 book records were not material.
 
 3.  (a) The company has not granted any loans, secured or unsecured, to
 companies, firms or other parties covered in the register maintained
 under Section 301 of the Act Therefore the provisions of the clauses
 4(iii) (b), (c), and (d) of the Order, 2004 are not applicable to the
 company.
 
 (b) The company has taken unsecured loans from four companies covered
 in the register maintained under Section 301 of the Act aggregating to
 Rs. 22,00,000. The maximum amount involved during the year andthe
 year-^end balance of loans from sucrf parties aggregate to''Rs.
 4,07,77,''352* * and Rs.4,07,77,322 respectively.
 
 (c) The rate of interest and other terms and conditions of such loans
 are not prima facie prejudicial to the interest of the company.
 
 (d) Both the principal and interest are repayable on demand hence we
 are not in a position to comment on the regularity of its payments.
 
 4.  In our opinion and according to the information and explanations
 given to us, there is an adequate internal control system commensurate
 with the size of the company and the nature of its business for the
 purchase of inventory, fixed assets and for the sale of goods and
 services. Further, on the basis of our examination of the books and
 records of the company, and according to the information and
 explanations given to us, we have neither come across nor have been
 informed of any continuing failure to correct major weaknesses in the
 aforesaid internal control system.
 
 5.  (a) In our opinion and according to the information and
 explanations given to us, the particulars of contracts or arrangements
 referred to in Section 301 of the Act have been entered in the register
 required to be maintained under that section.
 
 (b) in the absence of readily avsilable market price, we are unable to
 escertsin the reasonableness of the price involved in respect of the
 transactions exceeding the value of Rupees five lakhs during the year
 for sale of services to a company made in pursuance of a contract
 entered into the register maintained under Section 301 of the Act.
 
 6.  In our opinion and according to the information and explanations
 given to us, the company has complied with the provisions of Sections
 58A and 58AA of the Act and the Companies (Acoeptance of Deposits)
 Rules, 1975 with regard to the deposits accepted from the public.
 According to the information and explanations given to us, no order
 under the aforesaid sections has been passed by the Company Law Board
 on the compa ny.
 
 7.  In our opinion, the company has an internal audit system
 commensurate with its size and nature of its business.
 
 8.  We have broadly reviewed the books of accounts maintained by the
 Company in respect of its product as prescribed by the Central
 Government for maintenance of cost records under Section 209{1 )(d) of
 the Companies Act, 1956 and are of the opinion that prima facie the
 prescribed accounts and records have been maintained. However, we have
 not carried out a detaied examination of accounts and records.
 
 9.  (a) According to the information and explanations given to us and
 the records of the company examined by us, in our opinion, the company
 is generally regular in depositing the undisputed statutory dues with
 respect to provident fund, income-tax, sales-tax, employees'' state
 insurance and service tax dues as applicable with the appropriate
 authorities though there are delay in some cases. However, the company
 is regular in depositing other statutory dues including investors''
 education and protection fond, wealth tax, customs duty, excise duty
 and other material statutory dues, as applicable.
 
 (b) According to the information and explanations given to us, no
 undisputed amounts, payable in respect of Provident Fund, income tax,
 wealth tax, sales tax, service tax, customs duty and excise duty were
 in arrears, as at31st March, 2012 for a period of more than six months
 from the date they became payable, except ESIC of Rs. 29,800/-, Service
 Tax of Rs. 4,54,878/-, Profession Tax of Rs. 40,849/-, TDS of Rs.
 14/455/-, P.F. Inspection Charges of Rs. 29,056/-, Central Sales Tax
 (CST) of Rs. 1,19,861 & VAT of Rs. 8,80,612/-.
 
 (c) According to the information and explanations given to us and the
 records of the company examined by us, there are no dues on account of
 sales tax, income tax, wealth tax, service tax, customs duty, excise
 duty and cess which have not been deposited on account of dispute
 except
 
 Name of Statute  Nature of Dues    Amount      Financial   Forum where
                                    (In Lakhs)  Year        dispute is 
                                                            pending
 
 Income Tax Act   Income Tax         275.00     2004-2005   CLT-Appeals
 
 - Kolkata
 
 10.  The Company has no accumulated losses. The Company has incurred
 cash loss of Rs. 1,25,81,487/- in the financial year under report and
 has not incurred any cash losses in the immediately preceding financial
 year.
 
 11.  According to the records of the company examined by us and the
 information and explanation given to us, the company has not defaulted
 in repayment of dues to any financial institution or bank or debenture
 holders as at the balance sheet date.
 
 12.  The company has not granted loans and advances on the basis of
 security by way of pledge of s hares, debentures a nd ot her
 securities.
 
 13.  The provisions of any special statute applicable to chit fund /
 nidhi / mutual benefit fund/societies are not applicable to the
 company. Therefore, the provisions of this clause of the Companies
 (Auditor''s Report) Order 2003, as amended by the Companies (Auditor''s
 Report) Amendment Order, 2004 are not applicable to the company.
 
 14 In our opinion, the company is not dealing in shares, securities,
 debentures and other investments.
 
 15.  In our opinion and according to tie information and explanations
 given to us, the company has not given any guarantee for loans taken by
 others from banks or financial institutions during the year.
 
 16.  The term loans obtained by the company have been applied for the
 purpose for which they were raised.
 
 17.  On the basis of an overall examination of the balance sheet of the
 company, in our op''nion and according to the information and
 explanations given to us, there are no funds raised on a short-term
 basis which have been used for long-term investment.
 
 18.  The company has not made any preferential allotment of shares to
 parties and companies covered in the register maintained under Section
 301 of the Act during (he year.
 
 19.  The company has not issued any debentures during the year and no
 debentures are outstanding at the end of the year.
 
 20.  The company has not raised any money by public issues during the
 year.
 
 21.  During the course of our examination of the books and records of
 the company, carried out in acoordanee with the generally accepted
 auditing practices in India, and according to the information to us, we
 have neither,cptpe across, any instance.of fjajj^ gr^qf by.tt|e.
 company, noticed or reported during the year, nor have we been informed
 of such case by the management
 
                                                  For PATNI & CO.
 
 Firm Reg. No. 320304E                     Chartered Accountants 
 
                                                    Pavel Pandya
 
 Place: Koikata                                         (Partner)
 
 Date: The 31st day of May, 2012           Membership No. 300667