We have audited the attached Balance sheet of KOLTE-PATIL DEVELOPERS
 LIMITED, as at 31st March 2011 and the Profit & Loss Account and also
 the Cash Flow Statement of the Company for the period ended on that
 date annexed thereto. (all together referred as the financial
 statements) These financial statements are the responsibility of the
 Companys 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 misstatement. An audit includes
 examining on test basis, evidence supporting the amount and disclosure
 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 (Auditors Report) Order, 2003 issued by
 the Central Government of India in terms of Sub-Sec (4A) of Sec. 227 of
 The Companies Act, 1956 and according to the information and
 explanation given to us during the course of the audit and on the basis
 of such checks as we considered appropriate, we have enclosed in the
 Annexure a Statement on the matters specified in the Paragraphs 4 and 5
 of the said order, to the extent applicable to the Company.
 
 Further to our comments in Annexure referred to in paragraph 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 purpose of
 audit;
 
 ii. In our opinion, proper books of accounts as required by law have
 been kept by the Company, so far as appears from our examination of the
 those books;
 
 iii. The Balance Sheet and Profit and Loss Account and Cash Flow
 Statement dealt with by this report are in agreement with the books of
 accounts ;
 
 iv. In our opinion, the Balance Sheet and Profit & Loss Account and
 Cash Flow Statement dealt with by this report comply with the
 accounting standards referred to in sub-section (3C) of Section 211 of
 The Companies Act. 1956.
 
 v. On the basis of written representation received from all the
 Directors, as on 31st March, 2011 and taken on record by the Board of
 Directors, we report that none of the Directors are disqualified as on
 31st March, 2011 from being appointed as 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
 explanation given to us, the accounts read with notes thereon 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 case of the Balance Sheet, of the state of the Companys affairs
 as at 31st March 2011;
 
 b) In case of the Profit & Loss A/c, of the Profit of the Company for
 the period ended on that date ; and
 
 c) In the case of Cash Flow Statement, Cash flow of the Company for the
 period ended on that date.
 
 ANNEXURE TO THE AUDITORS REPORT
 
 ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE AND IN
 TERMS OF THE EXPLANATIONS AND THE INFORMATION GIVEN TO US AND ON THE
 BASIS OF SUCH CHECKS AS WE CONSIDERED APPROPRIATE, WE FURTHER STATE
 THAT:
 
 1.  In our opinion and according to the information & explanation given
 to us, the nature of Companys business/ activities during the year is
 such that the requirements of clauses (xiii) and (xiv) of paragraph 4
 of the Companies (Auditors Report) Order, 2003 are not applicable to
 the Company.
 
 2.  In respect of Fixed Assets
 
 a.  The Company has maintained proper records showing full particulars
 including quantitative details and situation of Fixed Assets.
 
 b.  As explained to us, the fixed assets have been physically verified
 by the management during the year in a phased periodical manner, which
 in our opinion is reasonable having regard to the size of the Company
 and nature of its assets. No material discrepancies were noticed on
 such physical verification.
 
 c.  Even though some of the Fixed Assets have been sold during the
 year, the going concern ability of the Company has not been affected.
 
 d.  None of the Fixed Assets has been revalued during the year.
 
 3.  In respect of Inventories
 
 a.  As explained to us, an inventory of major items of building
 materials and stores has been physically verified by the management at
 reasonable intervals during the year. In our opinion, the frequency of
 such verification is reasonable.
 
 b.  In our opinion and on the basis of the information and explanations
 given to us, the procedures for physical verification of inventory
 followed by the management are reasonable and adequate in relation to
 the size of the Company and the nature of its business.
 
 c.  The Company has maintained proper records of inventory.
 Verification of inventory is being conducted in a phased programme by
 the management designed to cover all inventory, which in our opinion is
 reasonable having regard to the size and the nature of the Company, The
 discrepancies noticed on such verification were not material and have
 been properly dealt with in the books of account.
 
 d.  The valuation of stocks is fair and proper and in accordance with
 the normally accepted accounting principles and is on the same basis as
 in the preceding year.
 
 4.  a.  According to information and explanation given to us, during
 the year the Company has not taken unsecured loan from parties covered
 in the register maintained u/s 301 of The Companies Act, 1956.  However
 carried forward balance in loan account from Ankit Enterprises is Rs.
 540.00 lakhs.  The Company has granted advances/loans to parties and to
 subsidiary companies in the register maintained u/s 301 of The
 Companies Act, 1956. The Maximum amount involved during the year was
 Rs. 3,112.38 lakhs and the year end balance of advances/loans was Rs.
 4,244.03 lakhs.
 
 b.  In our opinion, the rate of interest and other terms and conditions
 on which loan has been taken from each party listed in the register
 maintained under Section 301 of the Companies Act 1956, are not prima
 facie prejudicial to the interest of the Company. The advances given by
 the Company to wholly owned subsidiary companies are interest free and
 the other terms and conditions on which advances given are not prima
 facie, prejudicial to the interest of the Company.
 
 c.  The Company is regular in repaying the interest in respect of loans
 taken by the Company. In respect of advances given to wholly owned
 subsidiary companies the advances are interest free and repayable on
 demand. The Company has charged interest in respect of advances given
 to other group companies covered in register maintained u/s 301.
 
 d.  In respect of advances given to employees, wholly owned subsidiary
 and other group companies, these are repayable on demand and therefore
 the question of overdue amount does not arise.
 
 5 In our opinion and according to the information and explanation given
 to us, there are adequate internal control procedures commensurate with
 the size of the Company and nature of its business with regard to
 purchase of construction material, fixed assets, and with regard to the
 sale of units. During the course of our audit, we have not observed any
 continuing failure to correct major weaknesses in internal controls.
 
 6 In our opinion and according to the information and explanations
 given to us, the transactions that needed to be entered in the Register
 in pursuance of Section 301 of The Companies Act, 1956 have been
 entered.  In our opinion and according to the information and
 explanations given to us, there are transactions made in pursuance of
 contracts or arrangements entered in the register maintained under
 section 301 of The Companies Act, 1956 have been made at prices which
 are reasonable having regard to the prevailing market prices at the
 relevant time.
 
 7.  In our opinion and according to the information and explanations
 given to us, the Company has complied with the provisions of Section
 58A and 58AA and other relevant provisions of the Companies Act, 1956
 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to
 the deposits accepted from public. No order has been passed by Company
 Law Board or National Company Law Tribunal or Reserve Bank of India or
 any court or any other Tribunal.
 
 8.  In our opinion, the Company has an internal audit system
 commensurate with its size and the nature of its business.
 
 9.  The Central Government has not prescribed maintenance of cost
 records under Section 209(1) (a) of The Companies Act, 1956, for any of
 the operations of the Company.
 
 10.  The Company is regular in depositing with appropriate authorities
 undisputed statutory dues including provident fund, employees state
 insurance, income tax and other material statutory dues applicable to
 it.  According to the information and explanations given to us, no
 undisputed amounts payable in respect of Wealth Tax, Income Tax and
 Sales Tax were outstanding as on 31st March, 2011 for a period of more
 than six months from the date they became payable.
 
 11.  The Company does not have any accumulated losses at the end of
 financial year and has not incurred cash losses in the financial year
 and in the immediately preceding financial year accordingly, paragraph
 4 (x) of the Order is not applicable.
 
 12.  According to the information and explanation given to us and based
 on our observations during the audit, the Company has not defaulted in
 repayment of dues to any financial institution or bank.
 
 13.  The Company has not granted any loans and advances on the basis of
 security by way of pledge of shares, debentures and other securities.
 Accordingly, paragraph 4 (xii) of the Order is not applicable.
 
 14.  In our opinion, the terms and conditions on which the Company has
 given guarantee for loans taken by others from Banks or Financial
 Institutions are not, prima facie, prejudicial to the interest of the
 Company.
 
 15.  According to the information and explanations given to us and
 representations made by the management, term loans have been applied
 for the purpose for which they were raised
 
 16.  According to the information and explanations 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.
 
 17.  According to the information and explanation given to us, the
 Company has not made preferential allotment of shares to parties and
 companies covered in the Register maintained under Section 301 of The
 Companies Act, 1956 and therefore provisions of clause 4 (xviii) of the
 order are not applicable to the Company.
 
 18.  The Company has neither issued any debentures during the year nor
 any debentures outstanding at the beginning of the year. Accordingly
 the provisions of Clause (xix) of the Paragraph 4 of the Companies
 (Auditors Report) Order, 2003 are not applicable to the Company.
 
 19.  We have verified the end use of money raised by way of Public
 Issue in previous year 2009-2010 as disclosed in the Notes to Accounts.
 
 20.  Based upon audit procedure performed for the purpose of reporting
 true and fair view of financial statements and as per the information
 and explanations given by management, which have been relied upon by
 us, we report that no fraud on or by the Company has been noticed or
 reported during the course of audit.
 
 
 
 For S P C M & Associates
 
 (Formerly Known as Bora Kasat & Co.)
 
 Chartered Accountants
 
 Firm Registration No. 112165W
 
 CA Manoj R. Jain
 
 Partner
 
 M. No. 108970
 
 Place: Pune
 
 Date: May 30, 2011