Report of the Auditors to the Members

1.  We have audited the attached Balance Sheet of M/s ANSAL BUILDWELL LIMITED as at 31st March, 2007 and the Profit & Loss Account and Cash Flow Statement for the year ended on that date annexed hereto, 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 the opinion on these financial statements based on 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 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, as amended by the Companies (Auditor’s Report) (Amendment) Order, 2004, (together the ‘Order’) issued by the Central Government in terms of Section 227(4A) of the Companies Act, 1956, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said Order.
    
4. Further to our comments in the Annexure referred to above, we report that:

 
1. 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.
2. 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 such books.
3. The Balance Sheet and the Profit & Loss Account referred to in this Report are in agreement with the books of account.
4. The Balance Sheet, the Profit & Loss Account and Cash Flow Statement referred to in this Report comply with the Accounting Standards referred to Section 211(3C) of the Companies Act, 1956.
5. On the basis of written representations from the Directors as on 31st March, 2007, and taken on record by the Board of Directors, we report that none of the directors are disqualified as on 31st March, 2007 from being appointed as a Director under Section 274(1)(g) of the Companies Act,
   1956.
6. In our opinion and to the best of our information and according to the explanations given to us, the said Accounts, 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:

 
1. in so far as it relates to the Balance Sheet, of the state of affairs of the Company as at 31st March, 2007;
2. in so far as it relates to the Profit & Loss Account, of the profit of the Company for the year ended on that date;
3. in so far as it relates to the Cash Flow, of the cash flows for the year ended on that date.