1.  We have audited the attached Balance Sheet of SQL STAR
 INTERNATIONAL LIMITED as at 31st March 2012, the Statement of Profit
 and Loss and also the Cash Flow Statement for the year ended on that
 date annexed thereto. 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 the 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 issued
 by the Central Government of India in terms of sub-section (4A) of
 section 227 of the Companies Act, 1956, 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, the Statement of Profit and Loss and Cash Flow
 Statement dealt with by this report are in agreement with the books of
 account.
 
 (iv) In our opinion, the Balance Sheet, the Statement of Profit and
 Loss 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 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
 31 st 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 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 31 st March 2012;
 
 (b) in the case of the Statement of Profit and Loss, of the LOSS for
 the year ended on that date; and
 
 (c) in the case of the Cash Flow Statement, of the Cash Flows for the
 year ended on that date.
 
 i) a) The Company has maintained proper records showing full
 particulars including quantitative details and situation of fixed
 assets
 
 b) These fixed assets have been physically verified by the management
 at reasonable intervals which, in our opinion, is reasonable having
 regard to the size of the Company and the nature of its business and
 assets. No material discrepancies were noticed on verification.
 
 c) No substantial part of fixed assets has been disposed off during the
 year.
 
 ii) a) Inventories have been physically verified during the year by the
 management. In our opinion, the frequency of verification is
 reasonable.
 
 b) The procedures of physical verification of inventories 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 is maintaining proper records of inventory. The
 discrepancies noticed on verification between the physical stocks and
 book records have been properly dealt with in the books of accounts and
 were not material.
 
 iii) a) The Company has not granted secured/unsecured loan to a Company
 covered in the register maintained under section 301 of the Companies
 Act, 1956.
 
 b) The Company has taken unsecured loans from three Companies covered
 in the register maintained under section 301 of the Companies Act;
 1956.The amount outstanding at the end of the year is Rs.430.54 lakhs
 including interest of Rs 28.54 lakhs.
 
 c) In our opinion, the rate of interest and other terms and conditions
 on which loans have been taken are not, prima facie, prejudicial to the
 interest of the Company.
 
 d) The Company is regular in repaying the principal amounts as
 stipulated however interest has not been paid from March 2008 onwards.
 
 iv) In our opinion and according to the information and explanations
 given to us, there are adequate internal control System commensurate
 with the size of the Company and the nature of its business for the
 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 weaknesses in internal controls.
 
 v) The Company has not entered into any contracts or arrangements with
 any parties referred to under section 301 of the Companies Act, 1956.
 
 vi) The Company has not accepted loans which are in the nature of
 deposits without complying with provisions of section 58A and the rules
 made there under.
 
 vii) In our opinion, the Company has an internal audit system
 commensurate with the size and nature of its business.
 
 viii) The Central Government has not prescribed the maintenance of cost
 records under Section 209 (1) (d) of the Companies Act, 1956
 
 ix) a) Undisputed Statutory dues including Provident Fund, Income Tax,,
 Service Tax, Employees State Insurance and Cess have not been regularly
 deposited with the appropriate authorities and there have been delays
 in a number of cases except in respect of Investor Education and
 Protection Fund, Sales Tax and Wealth Tax.
 
 b) The arrears of Statutory dues as at the last day of the Financial
 year outstanding for a period of more than six months from the day it
 is payable is detailed below:
 
 c) According to the information and explanations 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 other than the following:
 
 x) The accumulated losses, as at 31st March 2012 is more than 50% of
 the Companies Net worth. The Company has incurred cash losses in the
 financial year under report and in the immediately preceding financial
 year.
 
 xi) The Company has not defaulted in repayment of dues to a financial
 institution, bank or debenture holders.
 
 xii) The Company has not granted loans and advances on the basis of
 security by way of pledge of shares, debentures and other securities .
 
 xiii) The Company is not a chit fund or a nidhi / mutual benefit fund /
 society.
 
 xiv) The Company is not dealing or trading in shares, securities,
 debentures and other investments.
 
 xv) The Company has not given any guarantees for loans taken by others
 from banks or financial institutions.
 
 xvi) According to the information and explanations given to us, the
 Company has not raised any term loans during the year.
 
 xvii) According to the information and explanations given to us and on
 overall examination of the financial statements of the Company as at
 31st March, 2012, we report that funds raised on short-term basis 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
 301 of the Companies Act, 1956 during the year.
 
 xix) The Company has not issued any debentures during the year.
 
 xx) The Company has not raised money by public issues during the year
 
 xxi) According to the information and explanations given to us, no
 fraud on or by the Company has been noticed or reported during the
 course of our audit.
 
                              For Maharaj N. R. Suresh and Co., 
 
                                             FRN No. 001931S 
 
                                       Chartered Accountants
 
                                             K.V. Srinivasan
 
 Place : Chennai                                     Partner
 
 Date : 4th December, 2012                     M. No. 204368