We have audited the attached Balance Sheet of B & B REALTY LTD. as at
 31st March, 2012 and the Profit and Loss Account 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.
 
 We have conducted the 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.
 
 As required by the Companies ( Auditor''s Report ) Order, 2003, as
 amended by the Companies (Auditor''s Report) Amended order- 2004, issued
 by the Central Government of India in terms of section 227(4A) 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.
 
 Subject to above and further to our comments in the Annexure referred
 to above, we report that:
 
 a) 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, proper books of account as required by law have been
 kept by the Company, so far as it appears from our examination of such
 books.
 
 c) The Balance Sheet and Profit and Loss Account dealt with by this
 report are in agreement with the books of account.
 
 d) In our opinion the attached Balance Sheet of the Company as at 31st
 March, 2012 and the Profit & Loss Account for the year ended on that
 date complies with the Accounting Standards referred to in Sub- section
 (3C) of Section 211 of the Companies Act, 1956.
 
 e) On the basis of the written representations received from the
 Directors 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.
 
 f) In our opinion and to the best of our information and according to
 the explanations given to us, the said Balance Sheet and Profit and
 Loss Account read together with the 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 :
 
 i) in the case of Balance Sheet, of the state of Company''s affairs as
 at 31st March, 2012
 
 ii) in the case of Profit and Loss Account of the Profit of the Company
 for the year ended on that date.
 
 and
 
 iii) in the case of cash flow statement, of the Cash flows for the year
 ended on that date.
 
 Annexure referred to in our report of even date to the members of B &
 B REALTY LIMITED, BANGALORE on the accounts for the year ended 31st
 March, 2012.
 
 1.  a) Records of fixed assets have not been produced before us for
 verification and we have not verified the existence of the fixed
 assets.
 
 b) No records in respect of physical verification of fixed assets by
 management have been produced before us and as such we are unable to
 comment in this respect.
 
 c) During the year the company has not disposed off a substantial part
 of its fixed assets so as to affect its going concern status
 
 2.  a) The inventory has been physically verified during the year by
 the management. In our opinion, the frequency of verification is
 reasonable.
 
 b) In our opinion and according to information and explanation given to
 us, the procedure of physical verification of inventories followed by
 the management is reasonable and adequate in relation to the size of
 the Company and nature of its business.
 
 c) The Company has maintained proper records of inventories. As
 explained to us, there was no material discrepancies noticed on
 physical verification of inventory as compared to the book records.
 
 3.  The Company has not granted any loans, secured or unsecured, to
 companies, firms or other parties as covered in the register maintained
 under Section 301 of the Companies Act, 1956. Accordingly the
 provisions of the clause 4 (iii) (b) to 4 (iii) (d) of the order are
 not applicable to the company.
 
 4.  The Company has not taken unsecured loans, from companies, firms or
 other parties as covered in the register maintained under Section 301
 of the Companies Act, 1956.
 
 5.  In our opinion and according to the information and explanations
 given to us, there are adequate internal control systems commensurate
 with the size of the company and the nature of its business. Further on
 the basis of our examination of the books and records of the company,
 and according to information and explanation given to us, we have
 neither come across nor have been informed of any continuing failure to
 correct major weaknesses in the afore said internal control systems..
 
 6.  According to the information and explanations given to us the
 transactions that needed to be entered in the register maintained in
 pursuance of section 301 of the Companies Act, 1956 have been so
 entered.
 
 7.  In our opinion and according to information and explanation given
 to us, the company has not accepted any deposit from the public and
 consequently the directives issued by the Reserve Bank of India, the
 provisions of Section 58A and 58AA of the Companies Act, 1956 and rules
 framed there under are not applicable.
 
 8.  The Company has not evolved an internal audit system commensurate
 with its size and the nature of its business.
 
 9.  The Company has not been required by the Central Government to
 maintain cost records under section 209 (1) (d) of the Companies Act,
 1956.
 
 10.  a) According to the information and explanations given to us the
 Company has been regular in depositing the undisputed statutory dues
 applicable to it with the appropriate authorities during the year,
 except for the under mentioned taxes which have been outstanding as at
 31st March 2012 for a period of more than six months from the date they
 became payable.
 
 Name of the statute          Nature of the 
                              dues            Period        Amount 
                                                           (Rs.)
 
 The West Bengal State Tax 
 on Professions, Trades, 
 Callings and                 Professional 
                              Tax             F.Y. 2008-09  Rs.600
 Employment Act, 1979
 
 11.  The accumulated losses of the company at the end of the financial
 year under audit were not more than 50% of its net worth. The Company
 has not incurred cash losses in the financial year under audit and has
 incurred cash loss in the immediately preceding financial year.
 
 12.  During the year the company has not defaulted in repayment of dues
 to bank and the company has not issued any debentures.
 
 13.  According to the information and explanations given to us the
 company has not granted any loans and advances on the basis of security
 by way of pledge of shares, debentures and other securities.
 
 14.  The company is not a Chit Funds / Nidhi / Mutual Benefit
 Fund/Societies. Therefore the provisions of clause 4 (xiii) of the said
 order are not apply to the Company.
 
 15.  According to the information and explanation given to us, the
 Company is not dealing in or trading in shares, securities, debentures,
 and other investments. Accordingly, clause 4 (xiv) of the order is not
 applicable.
 
 16.  As per information given to us the Company has not given any
 guarantee for loan taken by others from banks or financial
 institutions.
 
 17.  The Company has not availed any term loan during the year under
 audit.
 
 18.  According to the information and explanations given to us and on
 an overall examination of balance Sheet of the company, in our opinion,
 there are no funds raised on a short term basis, which have been used
 for long term investment.
 
 19.  The Company has made not made any preferential allotment of shares
 during the year covered under audit.  Accordingly, clause 4 (xviii) of
 the order is not applicable.
 
 20.  The Company has not issued any debentures during the year.
 
 21.  The Company has not raised any money by way of public issue during
 the year.
 
 22.  As per the information and explanations given to us no material
 fraud on or by the Company has been noticed or reported during the
 year.
 
                                         For Mishra & Co., 
 
                                      Chartered Accountants 
 
                                       Nilamadhab Mishra 
 
 Place : Bangalore                        Proprietor 
 
 Date : 01.09.2012                M.No. 223157, FRN: 012355S