We have audited the attached Balance Sheet of M/s VERTICAL INUSTRIES
 LIMITED (formerly known as LA MANSION GRANITES LIMITED) as at 31st
 March 2012 and the related Profit & Loss Account and Cash Flow
 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.
 
 We conducted the 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 mis-statement. 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.
 
 1.  As required by Companies (Auditors report) Order, 2003, issued by
 the Central Government of India in terms of sub - section 4(A) of
 Section 227 of The Companies Act, 1956 we enclose in the Annexure
 ''A'' a statement on the matters specified in paragraphs 4 and 5 of
 the said order.
 
 2.  Further to our comments in the Annexure ''A'' referred to in
 paragraph 2 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 our
 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
 those books;
 
 iii. The Balance sheet, Profit and Loss Account and Cash Flow Statement
 dealt with by this report are in agreement with the books of account;
 
 iv.  In our opinion, the Balance Sheet, Profit and Loss Account and
 Cash Flow Statement dealt with by this report comply with the
 Accounting Standards referred to in sub-Section (3c) of the Section 211
 of the Act;
 
 v.  On the basis of written representations received from the
 directors, as on 31st March 2011 and taken on record by the Board of
 Directors, none of the directors are 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;
 
 3.  In our opinion, and to the best of our information and explanations
 given to us, the said accounts read with the notes thereon give the
 information required by the Companies Act, 1956 in the manner so
 required and give a true & fair view:
 
 a.  In the case of the Balance Sheet, of the state of affairs of the
 Company as at 31st March 2012 and
 
 b.  In the case of the Profit and Loss of Account, of the LOSS for the
 year ended on that date and
 
 c.  In the case of Cash Flow Statement, of the cash flows for the year
 ended on that date.
 
 ANNEXURE ''A'' TO THE AUDITORS'' REPORT
 
 The Annexure referred to paragraph 2 of our report to the members of
 Vertical Industries
 
 Limited (formerly known as La Mansion Granites Limited) (the
 Company) for the year
 
 ended March 31st 2012 we report that:
 
 i.  Since the company is not holding fixed assets, the sub clauses (a),
 (b) and (c) are not applicable.
 
 ii.  a) The inventories have been physically verified by management
 reasonable intervals during the year; and
 
 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 the nature of its business; and
 
 c) The Company is maintaining proper records of inventory. The
 discrepancies noticed during the physical verification of inventory as
 compared to the books of record were not material and have been
 properly dealt with in the books of accounts.
 
 iii. Since the company has not granted any loans to companies, firms or
 other parties covered in register maintained under section 301 of the
 Act, the sub clauses (a) to (d) are not applicable; and
 
 e) The Company has not taken unsecured loan from parties covered in the
 registrar maintained under Section 301 of the Companies Act, 1956,
 Hence, this clause is not applicable.
 
 f) The rate of Interest and other terms and conditions of the aforesaid
 loan are not prejudicial to the interests of the company; and
 
 g) In our opinion, The payment of principal amount and interest are
 regular.
 
 iv.  In our opinion and according to the information and explanations
 given to us, there is an internal control 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. During the financial
 year, the Company did not undertake any activity of sale of services.
 During the course of our audit, we were not observed any major
 weaknesses in the internal control system.
 
 v.  According to the information and explanations given to us, there
 are no contracts or arrangements referred to in Section 301 of the
 Companies Act, 1956 that need to be entered in the register required to
 be maintained under section,
 
 vi.  The company has not accepted any deposits from the public during
 the year.  Therefore, the provisions of clause (vi) of the Companies
 (Auditors'' Report) Order, 2003 are not applicable to the Company.
 
 vii. Since the company''s paid up capital and reserves is less than
 Rs. 50,00,000/- and the company''s turnover is less than
 5,00,00,000/-, this clause is not applicable to this company.
 
 viii.  According to the information and explanations given to us, the
 Central Government has not prescribed maintenance of Cost records under
 Section 209(i)(d) of the Companies Act, 1956. Accordingly clause
 4(viii) of the order is not applicable.
 
 ix.  a) According to the records of the Company, undisputed statutory
 dues including
 
 Provident Fund, Investor Education and Protection Fund, Income Tax,
 Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and
 any other material statutory dues have been generally regularly
 deposited with the appropriate authorities. According to the
 information and explanations given to us, no undisputed amounts payable
 in respect of the aforesaid dues were outstanding as at 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, there are
 no dues of Sales Tax, Income Tax, Custom Duty, wealth Tax, Service Tax
 and Excise Duty which have not been deposited on account of any
 dispute.
 
 x.  The company has accumulated losses exceeding 50% of its net worth.
 The company has incurred cash losses during the financial year covered
 by our audit and cash losses immediately preceding financial year.
 
 xi.  Based on our audit procedures and on the information and
 explanations given by the management, no such loans were taken by the
 Company during the year under the audit.
 
 xii. In our opinion and according to the explanations given to us and
 based on the information available, no loans and advances have been
 granted by the Company on the basis of security by way of pledge of
 shares, debentures and other securities.
 
 xiii.  In our opinion and according to the information and explanations
 given to us, the Company is not a chit fund or a nidhi/mutual benefits
 fund/society. Therefore, the sub clauses (a) to (d) of this clause are
 not applicable.
 
 xiv. According to the information and explanations given to us, the
 Company is not dealing in or trading in Shares, Securities, debentures
 and other investment.
 
 xv.  According to the information and explanations given to us, the
 Company has not given any guarantee for loans taken by others from
 banks and financial institution.
 
 xvi. Since the company has not taken any term loans, this clause is not
 applicable.
 
 xvii.  According to the information and explanations given to us and on
 an overall examination of the Balance Sheet of the Company, there are
 no funds raised on short-term basis during the year under audit and
 hence the question of using the same for long-term investment does not
 arise.
 
 xviii.  Since 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, this clause is not applicable.
 
 xix. According to the information and explanation given to us, the
 Company has not issued any debentures during the year under audit.
 Hence the question of security or charges against debentures does not
 arise.
 
 xx.  Since the company has not raised money from public, the question
 of disclosure of end use of money does not arise.
 
 xxi. To the best of our knowledge and belief and according to the
 information and explanations given to us, no fraud on or by the Company
 was noticed or reported during the year.
 
                                           For P S Nagaraju &Co.,
 
                                         Chartered Accountants 
                                          (Firm Reg.No.011447S)
 
                                                Sd/-
 
 Place : Hyderabad                         CA P S Nagaraju
 
 Date : 23.05.2012                            Partner
 
                                         Membership No.210268