1. We have audited the attached Balance Sheet of PEOPLES INVESTMENTS
 LIMITED as at 31st March, 2012 and also annexed Profit and Loss
 Statement of the Company 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 whether the financial
 statements are free of material misstatement. An audit includes, 
 examining on the 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 presentation of the
 financial statements. We believe that our audit provides a reasonable
 basis for our opinion.
 
 3. As required by Companies Auditor''s Report Order, (CARO) 2003
 issued by the Central Government of India in terms of sub section (4A)
 of section 227 of the Companies Act, 1956 (Act), we enclose in the
 annexure a statement on the matters specified in paragraph 4 & 5 of the
 said Order.
 
 4. Further to our comment in the annexure referred to above, we report
 that:
 
 a) We have obtained all information and explanation, which to the best
 of our knowledge and belief were necessary for the purpose 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 these
 books;
 
 c) The Balance Sheet and the Profit and Loss Statement dealt with by
 this report are in agreement with the books of account;
 
 d) In our opinion the Balance Sheet and Profit and Loss Statement have
 been prepared in compliance with the Accounting Standard referred to in
 Section 211 (3C) of the Act, to the extent applicable;
 
 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 information and according to the
 explanations given to us, the accounts read with the notes thereon give
 the information required by the Act in the manner so required and give
 a true and fair view in conformity with the accounting principles
 generally accepted in India;
 
 i) In the case of the Balance Sheet of the state of affairs of the
 Company as at 31st March, 2012 and
 
 ii) In the case of Profit and Loss Statement, of the loss for the year
 ended on that date.
 
 ANNEXURE TO THE AUDITORS REPORT TO THE MEMBER OF PEOPLES INVESTMENTS
 LIMITED ON THE ACCOUNTS FOR THE PERIOD ENDED
 
                         31st MARCH, 2012.
 
          (Referred to in paragraph 3 of our report of even date)
 
 1. The Company is an Investment Company and have no fixed Assets.
 Therefore clauses 1.1,1.2 and 1.3 of Companies (Auditor''s Report)
 Order 2003 is not applicable.
 
 2. The Company has no inventories. Therefore clauses 2.1,2.2 and 2.3
 are not applicable.
 
 3. (a) We are informed that the Company has not granted or taken any
 loans, secured or unsecured, to/from companies, firms or other parties
 listed in the register maintained under Section 301 of the companies
 Act, 1956.
 
 (b) As the Company has not granted or taken any loans, secured or
 unsecured, to/from companies, firms or other parties listed in the
 register maintained under Section 301 of the Companies Act, 1956,
 Clause (iii) (b) of the Order is not applicable.
 
 (c) No loans and advance in the nature of loans are given by the
 Company to other parties.
 
 4. The Company has not taken any loans from other parties.
 
 As the Company has not taken for granted any loan, there is no question
 of overdue amount of loans taken for granted by the Company.
 
 5. In our opinion, and according to the information and explanations
 given to us, there are adequate internal control procedures
 commensurate with the size of the Company and the nature of its
 business for the purchase and sale of investments. During the course of
 our audit, no major weakness has been noticed in the internal controls.
 
 6. (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 transactions that need to be entered into the
 registers maintained under Section 301 have been so entered.
 
 (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 have been made at prices which are
 reasonable having regard to prevailing market prices as available with
 the Company.
 
 (c) 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 have been made at prices which are
 reasonable having regard to prevailing market prices as available with
 the Company.
 
 7. The Company has not accepted any deposits during the year from the
 public within the meaning of the provisions of Section 58A and 58AA of
 the Companies Act, 1956 and rules made there under. Hence the Clause
 (vi) of the order is not applicable.
 
 8. The Company has an adequate internal audit system commensurate with
 size and nature of its business.
 
 9. The Central Government has not prescribed maintenance of cost
 records under section 209 (l)(d) of the Companies act, 1956.
 
 10. (a) According to the information and explanations given to us,
 there are no undisputed statutory dues payable in respect of provident
 fund, investor education and protection fund, employees state
 insurance, income tax, sales tax, wealth-tax, custom duty, excise-duty,
 cess which are outstanding as on 31st March, 2012, for a period of more
 than six months from the date they became payable.
 
 (b) According to the information and explanations given to us and the
 records examined by us, there is no disputed amount of sales tax,
 income tax, custom tax, wealth tax, excise duty, cess and other
 statutory dues which is not deposited.
 
 11. The Company has incurred cash losses during the financial year
 covered by our audit and also cash losses in the immediately preceding
 financial year. The accumulated losses of the Company at the end of the
 financial year covered by our audit is more than 50% of its net worth.
 
 12. Based on our examination of the record and the information and
 explanations given to us, the Company has not granted any loans and/or
 advances on the basis of security by way of pledge of shares,
 debentures and other securities.
 
 13. Clause (xiii) of the Order is not applicable to the Company as the
 Company is not a Chit fund company or nidhi/mutual benefit
 fund/society.
 
 14. In our opinion and according to the information and explanation
 given to us, the company has properly maintained the Investment
 Register and timely entries have been made in the Register. All the
 Investments are held by the company in its own name.
 
 15. According to the information and explanations given to us, the
 Company has not given any guarantee for loans taken by others from bank
 or financial institutions.
 
 16. The Company has not taken any term loans and hence requirement of
 reporting regarding application of term loans does not arise.
 
 17. Based on our examination of the record and the information and
 explanations given to us, the Company has not used the funds raised on
 short-term basis for long term investment and vice versa.
 
 18. We are informed that the Company has not made any preferential
 allotment of shares to companies, firms or other parties listed in the
 register maintained under Section 301 of the Companies Act, 1956.
 
 19. The Company has not issued debentures and hence requirement of
 reporting regarding creation of securities in respect of debentures
 issued does not arise.
 
 20. The Company has not raised any money by public issue, during the
 year.
 
 21. As per the information and explanations given to us, no fraud on or
 by the Company has been noticed or reported during the year.
 
 For R. K. KHANDELWAL & CO.
 
 CHARTERED ACCOUNTANTS
 
 
 
 R. K. KHANDELWAL
 
 (PARTNER)
 
 Membership No. 30054
 
 Firm Reg. No. 105054W
 
 
 
 Place : Mumbai
 
 Dated : May 28, 2012.