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Auditor Report of Coral India Finance and Housing Ltd.

Mar 31, 2015

We have audited the accompanying standalone financial statements of Coral India Finance & Housing Limited ("the Company"), which comprise the Balance Sheet as at 31 March, 2015, the Profit and Loss Account and the Cash Flow Statement for the year then ended and significant accounting policies and notes forming part of the accounts.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 ("the Act") with respect to preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities, selection and application of appropriate accounting policies, making judgments and estimates that are reasonable and prudent, and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified under section 143(1 p) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company's preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company's directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements together with the notes thereon, give the information required by the Companies Act, 2013, in the manner so required and give a true and fair, view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2015, and its profit and its cash flows for the year then ended on that date.

Report on Other Legal and Regulatory Matters

1. As required by the Companies (Auditor's Report) Order, 2015 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.

2. As required by section 143(3) of the Companies Act, 2013, we report that:

(a) We have sought and obtained all the 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 appears from our examination of those books;

(c) The Balance Sheet, the Profit and Loss Statement and the Cash Flow Statement dealt with by us in the Report are in agreement with the books of account.

(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

(e) On the basis of the written representations received from the directors as on 31 March, 2015 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2015 from being appointed as a director in terms of Section 164 (2) of the Act.

(f) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

(i) The Company has does not have any pending litigation which would impact its financial position in its standalone financial statements as on 31 st March 2015;

(ii) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses on long-term contracts, if any, including derivative contracts.

(iii) There were no delay in transferring amounts, required to be transferred to the Investor Education and Protection Fund by the Company.

Referred to in paragraph 1 under the heading " Report on other legal & regulatory requirement" of our report of even date to the members of CORAL INDIA FINANCE AND HOUSING LIMITED

1 a. The Company had maintained proper records showing full particulars including quantitative details and situation of fixed assets;

b As explained to us, the assets have been physically verified by the management in accordance with a phased programme of verification, considering the size and nature of its business. The frequency of verification is reasonable and no material discrepancies have been noticed on such physical verification.

2 a The inventories have been physically verified by the management during the year at reasonable intervals, while the inventory of construction work-in-progress as at the balance sheet date was physically surveyed and certified by an engineer. For materials lying with third parties, confirmation has been obtained by the management.

b The procedure of physical verification of the inventories followed by the management is reasonable and adequate in the relation to the size of the Company and nature of business;

c The Company has maintained proper records of inventories & discrepancies noticed on physical verification of inventories as compared to books records were not material.

3 a The company has granted loans, secured or unsecured to one party covered in the register maintained under section 189 of the Act.

b The rate of interest and other terms and conditions of loan given by the company, secured or unsecured are not prima facie prejudicial to the interest of company.

c The receipts of the principal amount and interest are regular.

d There is no stipulation for repayments hence, the steps for recovery of principal and interest does not arise.

e There are no overdue amounts of more than rupees one lakh in respect of the loans granted to the bodies corporate listed in the register maintained under section 189 of the Act. '

4 In our opinion and according to the information and explanation given to us, there are adequate internal control systems commensurate with the size of the company and the nature of its business for the purchase of inventories, fixed assets and for the sale of goods. There is no continuing failure to correct major weaknesses in internal control system.

5 The company has not accepted any deposits from the public

6 To the best of our knowledge & belief, the Central Government has not prescribed the maintenance of cost records, for any of the services rendered by the company

7 a According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund, employees state insurance, income tax, sales tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities.

b According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues were in arrears as at 31 March 2015 for a period of more than six months from the date they became payable.

c According to the information and explanations given to us the amounts which were required to be transferred to the investor education and protection fund in accordance with the relevant provisions of the Act and rules there under has been transferred to such fund within time.

8 The Company does not have any accumulated losses at the end of the financial year and has not incurred cash losses in the financial year and in the immediately preceding financial year.

9 The Company has not defaulted in repayment of dues to a financial institution or bank or debenture holders during the year and did not have any amount outstanding to financial institutions or debenture holders.

10 In our opinion and according to the information and the explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

11 During the year, the company did not avail any term loan during the year.

12 According to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported during the year.

For M. A. Parekh & Associates Chartered Accountants FRN: 121973W

sd/- Manish Parekh Place : Mumbai Proprietor Date : 27th May, 2015 Membership No.: 044911


Mar 31, 2014

We have audited the accompanying financial statements of Coral India Finance and Housing Limited, which comprise the Balance Sheet as at March 31,2014, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956, read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

In our opinion and to the best of our information and according to the explanations given to us, the financial statements 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:

(a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31,2014;

(b) In the case of the Statement Profit and Loss, of the profit 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.

1 As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2 As required by section 227(3) of the Act, 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 purpose of ouraudit;

(b) 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;

(c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account;

(d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards notified under the Act read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013

(e) on the basis of written representations received from the directors as on March 31,2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

ANNEXURE TO THE AUDITORS'' REPORT Referred to in paragraph 1 under the heading " Report on other legal & regulatory requirement" of our report of even date to the members of CORAL INDIA FINANCE AND HOUSING LIMITED

1 a The Company had maintained proper records showing full particulars including quantitative details and situation of fixed assets;

b As explained to us, the assets have been physically verified by the management in accordance with a phased programme of verification, considering the size and nature of its business. The frequency of verification is reasonable and no material discrepancies have been noticed on such physical verification.

2 a The inventories have been physically verified by the management during the year at reasonable intervals, while the inventory of construction work-in-progress as at the balance sheet date was physically surveyed and certified by an engineer. For materials lying with third parties, confirmation has been obtained by the management.

b The procedure of physical verification of the inventories followed by the management is reasonable and adequate in the relation to the size of the Company and nature of business;

c The Company has maintained proper records of inventories & discrepancies noticed on physical verification of inventories as compared to books records were not material.

3 a The company has granted loans, secured or unsecured to two parties covered in the register maintained under section 301 of the Act, and maximum amount outstanding during the year is 402.28 lacs & balance amount outstanding attheyearend is 40.43 lacs.

b The rate of interest and other terms and conditions of loan given by the company, secured or unsecured are not prima facie prejudicial to the interest of company.

c The receipts of the principal amount and interest are also regular.

d There is no stipulation for repayments hence, the steps for recovery of principal and interest does not arise.

e The company has not taken loan from party covered in the Register maintained under section 301 of the Companies Act, 1956.

f The rate of Interest and other terms and conditions in respect of loans taken by the Company, are in our opinion, prima facie not prejudicial to the interest of the Company.

g In respect of loans taken by the Company, payments of principal amount and interest are regular as per terms.

4 In our opinion and according to the information and explanation given to us, there are adequate internal control systems commensurate with the size of the company and the nature of its business for the purchase of inventories, fixed assets and for the sale of goods. There is no continuing failure to correct major weaknesses in internal control system.

5 a In our opinion, and explanation given to us, the transactions made in pursuance of contracts or arrangements, that need to be entered into the registered maintained under section 301 of the Companies Act, 1956 have been recorded in the register.

b In our opinion, and according to explanation given to us all the transactions have been made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

6 In our opinion and according to explanation given to us, during the year under review, the company has not accepted any deposits from the public. According to information and explanations given to us, no order has been passed by The Company Law Board or National Company Law Tribunal or Reserve Bank Company in respect of India or any court or any other Tribunal on the aforesaid deposits.

7 The Company does not have a formal Internal Audit department as such, however the control procedures enables reasonable internal checking of its financial and other records which is commensurate with the size of the business.

8 We have been informed that Central Government has not prescribed maintenance of Cost records under Section 209(1) (d) of the Companies Act, 1956.

9 a According to the record of the Company, the Company is regular in depositing undisputed statutory dues including

Provident Fund, Investor Education and Protection Funds, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs duty, Excise Duty, Service Tax, Cess and other statutory undisputed dues with appropriates authorities. According to the information and explanation given to us, there are no amounts payable in respect of such statutory dues which have remained outstanding as at 31st March 2014 for the period more than six month from the date they became payable.

b According to information and explanations given to us and records of the company examined by us, there are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and cess which have not been deposited on account of any dispute.

10 In our opinion, the accumulated losses of the Company are not more than fifty percent of its net worth. The Company has not incurred cash losses in the immediately preceding financial year.

11 Based on examination of records and the information and the explanation given by the management, we are of the opinion that the Company has not defaulted in repayment of its dues to financial institution and banks.

12 Based on examination of records and the information and the explanation given by the management, we are of the opinion that the company has not granted any loans byway of pledge of shares, debentures or other securities.

13 The Provisions of any Special Stature applicable Chit Fund, Nidhi or Mutual Benefit Fund/ Societies are not applicable to the company.

14 The Company is dealing or trading in shares, securities, debenture or other investments. The Company has maintained proper records of the transactions and timely entries made therein. The share, securities and other investments are held in the name of company.

15 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 institutions.

16 According to the information and explanations g iven to us, the Company has not taken any term loan during the year.

17 According to the information and explanations given to us, and on an overall examination of balance sheet of the company, no funds raised on shortterm basis have been used for long term investment.

18 According to the information and explanation given to us, the Company has not made any preferential allotment of share to parties and companies covered in the register maintained under section 301.

19 According to the information and explanation given to us, during the period covered by our audit report, no debenture has been issued.

20 The Company has not raised any money byway of public issues during the year.

21 On the basis of our examination and according to the information and explanations given to us, no material fraud, on or by the company, has been noticed or reported during the year.

For M. A. Parekh & Associates

Chartered Accountants FRN: 121973W

sd/-

Manish Parekh

Place : Mumbai Proprietor

Date : 30th May, 2014 Membership No.: 044911


Mar 31, 2012

We have audited the attached Balance Sheet of CORAL INDIA FINANCE AND HOUSING 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.

We have 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 misstatements. 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 companies (Auditor's Report) Order, 2004, issued by the Central Government of India in terms of Sub-section 227(4A) of the companies Act, 1956 we give in the Annexure hereto a statement on the matter specified in paragraph 4 and 5 of the said Order.

Further to our comments in the Annexure referred to in paragraph above

a) We have obtained all the 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 accounts as required by law have been maintained by the Company so far as appears from our examination of the books.

c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this report are in agreement with the books of account.

d) In our opinion, the Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this report comply with the Accounting standards referred in sub section (3C) of section 211 of the Companies Act, 1956.

e) On the basis of written representations received from the directors and taken on records by the board of Directors, we report that none of the directors are disqualified as on 31st March,2012 from being appointed in terms of 274 (1)(g) of the Companies Act, 1956.

f) In our opinion and to the best of our information and according to the explanation 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:

i In the case of the Balance Sheet of the state of affairs of the company as at 31st March, 2012.

ii In the case of the Statement of Profit and Loss, of the profit for the year ended on that date and

iii In the case of the Cash Flow Statement, on the cash flow for the year ended on that date.

ANNEXURE TO THE AUDITORS' REPORT

Referred to in paragraph 3 of our report of even date to the members of CORAL INDIA FINANCE AND HOUSING LIMITED

1. (a) The Company had maintained proper records showing full particulars including quantitative details and situation of

fixed assets;

(b) As explained to us, the assets have been physically verified by the management in accordance with a phase programmed of verification, considering the size and nature of its business. The frequency of verification is reasonable and no material discrepancies have been noticed on such physical verification.

2. (a) The inventories have been physically verified by the management during the year at reasonable intervals, while the

inventory of construction work-in-progress as at the balance sheet date was physically surveyed and certified by an engineer. For materials lying with third parties, confirmation has been obtained by the management.

(b) The procedure of physical verification of the inventories followed by the management is reasonable and adequate in the relation to the size of the Company and nature of business;

(c) The Company has maintained proper records of inventories & discrepancies noticed on physical verification of inventories as compared to books records were not material.

3. (a) The company has granted loans, secured or unsecured to two parties covered in the register maintained under

section 301 of the Act, and maximum amount outstanding during the year is Nil & balance amount outstanding at the year end is Nil.

(b) The rate of interest and other terms and conditions of loan given by the company, secured or unsecured are not prima facie prejudicial to the interest of company.

(c) The receipts of the principal amount and interest are also regular.

(d) There is no stipulation for repayments hence, the steps for recovery of principal and interest does not arise.

(e) The company has taken loan from one party covered in the Register maintained under section 301 of the Companies Act, 1956 and the maximum amount outstanding during the year are Rs.1.05 crore & balance amount outstanding at the year end is Nil.

(f) The rate of Interest and other terms and conditions in respect of loans taken by the Company, are in our opinion, prima facie not prejudicial to the interest of the Company.

(g) In respect of loans taken by the Company, payments of principal amount and interest are regular as per terms.

4. In our opinion and according to the information and explanation given to us, there are adequate internal control systems commensurate with the size of the company and the nature of its business for the purchase of inventories, fixed assets and for the sale of goods. There is no continuing failure to correct major weaknesses in internal control system.

5. (a) In our opinion, and explanation given to us, the transactions made in pursuance of contracts or arrangements, that

need to be entered into the registered maintained under section 301 of the Companies Act, 1956 have been recorded in the register.

(b) In our opinion, and according to explanation given to us all the transactions have been made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

6. In our opinion and according to explanation given to us, during the year under review, the company has not accepted any deposits from the public. According to information and explanations given to us, no order has been passed by The Company Law Board or National Company Law Tribunal or Reserve Bank Company in respect of India or any court or any other Tribunal on the aforesaid deposits.

7. The Company does not have a formal Internal Audit department as such, however the control procedures enables reasonable internal checking of its financial and other records which is commensurate with the size of the business.

8. We have been informed that Central Government has not prescribed maintenance of Cost records under Section 209(1) (d) of the Companies Act, 1956.

9. (a) According to the record of the Company, the Company is regular in depositing undisputed statutory dues including

Provident Fund, Investor Education and Protection Funds, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs duty, Excise Duty, Service Tax, Cess and other statutory undisputed dues with appropriates authorities. According to the information and explanation given to us, there are no amounts payable in respect of such statutory dues which have remained outstanding as at 31st March 2012 for the period more than six month from the date they became payable.

(b) According to information and explanations given to us and records of the company examined by us, there are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and cess which have not been deposited on account of any dispute.

10. In our opinion, the accumulated losses of the Company are not more than fifty percent of its net worth. The Company has not incurred cash losses in the immediately preceding financial year.

11. Based on examination of records and the information and the explanation given by the management, we are of the opinion that the Company has not defaulted in repayment of its dues to financial institution and banks.

12. Based on examination of records and the information and the explanation given by the management, we are of the opinion that the company has not granted any loans by way of pledge of shares, debentures or other securities.

13. The Provisions of any Special Stature applicable Chit Fund, Nidhi or Mutual Benefit Fund/ Societies are not applicable to the company.

14. The Company is dealing or trading in shares, securities, debenture or other investments. The Company has maintained proper records of the transactions and timely entries made therein. The share, securities and other investments are held in the name of company.

15. 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 institutions.

16. According to the information and explanations given to us, the Company has not taken any term loan during the year.

17. According to the information and explanations given to us, and on an overall examination of balance sheet of the company, no funds raised on short term basis have been used for long term investment

18. According to the information and explanation given to us, the Company has not made any preferential allotment of share to parties and companies covered in the register maintained under section 301.

19. According to the information and explanation given to us, during the period covered by our audit report, no debenture has been issued.

20. The Company has not raised any money by way of public issues during the year.

21. On the basis of our examination and according to the information and explanations given to us, no fraud, on or by the company, has been noticed or reported during the year.

For M. A. Parekh & Associates Chartered Accountants FRN: 121973W

Manish Parekh

Place : Mumbai Proprietor

Date : 14th August, 2012. Membership No.: 044911


Mar 31, 2010

We have audited the attached Balance Sheet of M/S. CORAL INDIA FINANCE AND HOUSING LIMITED as on 31st March, 2010, and also the Profit & Loss Account and also cash flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

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 the 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 Companies (Auditors Report) (Amendment) 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 Paragraph 4 and 5 of the said order.

Further to our comments in 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 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 and Profit & 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 and 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 Section 211 of the Companies Act, 1956;

v) On the basis of written representations received from the directors, as on 31st March, 2010, and taken on record by the Board of Directors, we report that none of the directors of the Company is disqualified as on 31st March, 2010, from being appointed as 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, and subject to the Notes on Accounts forming part of the Balance Sheet, 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 on 31st March, 2010;

b) In the case of Profit & Loss account, of the profit for the year ended on that date.

c) In the case of cash flow statement, of the cash flow for the year ended on that date.

RE: CORAL INDIA FINANCE AND HOUSING LIMITED ANNEXURE REFERRED TO IN PARAGRAPH (3) OF EVEN DATE

As required by the Companies (Auditors Report) Order, 2004 and according to the information and explanations given to us during the course of the audit & on the basis of such checks as were considered appropriate we report that:

(i) (a) The Company had maintained proper records showing full particulars including quantitative details and situation of fixed assets;

(b) As explained to us, the assets have been physically verified by the management in accordance with a phased programme of verification, considering the size and the nature of its business. The frequency of verification is reasonable and no material discrepancies have been noticed on such physical verification.

(ii) (a) The inventories have been physically verified by the management during the year at reasonable intervals, while the inventory of construction work-in-progress as at the balance sheet date was physically surveyed and certified by an engineer, except materials lying with third parties, where confirmations are obtained;

(b) The procedure of physical verification of the inventories followed by the management is reasonable and adequate in the relation to the size of the Company and mature of its business;

(c) The Company has maintained proper records of inventories and discrepancies noticed on physical verification of inventories as compared to books records were not material.

(iii) (a) The Company has granted any loans, Secured or Unsecured to three parties covered in the register maintained under section 301 of the Act and the maximum amount outstanding during the year are Rs. 3.48 crore & balance amount outstanding at the year end is Rs. 0.13 crore.

(b) The rate of interest and other terms and conditions of loan given by the company, secured or unsecured are not prima facie prejudicial to the interest of company.

(c) The receipts of the principal amount and interest are also regular.

(d) There is no stipulation for repayments so the there is no overdue amount hence, the steps for recovery of principal and interest does not arise.

(e) The Company has taken loan from one party covered in the Register, maintained under Section 301 of the Companies Act, 1956 and the maximum amount outstanding during the year are Rs. 0.45 Crore & balance amount outstanding at the year end is Nil.

(f) The rate of interest and other terms and conditions in respect of loans taken by the Company, are in our opinion, prima facie not prejudicial to the interest of the Company.

(g) In respect of loans taken by the Company, payments of principal amount and interest are regular as per terms.

(iv) In our opinion, and according to explanation given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business, for the purchase of inventories, fixed assets and for the sale of goods. There is no continuing failure to correct the major weakness in the internal control system.

(v) (a) In our opinion and explanation given to us, the transactions made in pursuance of contracts or arrangements, that need to be entered into the registered maintained under Section 301 of the Companies Act, 1956 have been recorded in the register;

(b) In our opinion, and according to explanation given to us all the transactions have been made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

(vi) In our opinion and explanation given to us, during the year under review the company has not accepted any deposits from the public. The Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other Tribunal has passed however the management has certified that they have complied with the provisions of section 58A & 58AA or any other relevant provisions of the Act and there is no order during the year.

(vii) The company does not have a formal Internal Audit department as such, however the control procedures enables reasonable internal checking of its financial and other records which is commensurate with the size of the business.

(viii) We have been informed that Central Government has not prescribed maintenance of Cost records under Section 209(1) (d) of the Companies Act, 1956.

(ix) (a) According to the record of the Company, the Company is regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Funds, Employees State Insurance, Income Tax, Sales Tax, Wealth-Tax, Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues with appropriates authorities. According to the information and explanation given to us, there are no undisputed amounts payable in respect of such statutory dues which have remained outstanding as at 31st March, 2010 for the period more than six month from the date they became payable.

(b) Accordingly information given to us, there is no Disputed Income tax, Sales tax, Wealth tax, Service tax, Customs Duty and Excise Duty except as listed below:-

Name of Statute Nature of Dues Amount (Rs.)

Income Tax Act, 1961 Disallowances of Exp 10.36 Lacs

Income Tax Act, 1961 Disallowances of Exp 13.06 Lacs

Income Tax Act, 1961 Disallowances of Exp 12.30 Lacs

Name of Statute Period Forum where dispute is pending

Income Tax Act, 1961 2002-2003 Commissioner (Appeals)

Income Tax Act, 1961 2003-2004 Commissioner (Appeals)

Income Tax Act, 1961 2004-2005 Commissioner (Appeals)



(x) In our opinion, the accumulated losses of the company are not more than fifty percent of its net worth. The Company has not incurred cash losses in the immediately preceding financial year.

(xi) Based on our audit procedure and the information and the explanation given by the management, we are of the opinion that the Company has not defaulted in repayment of its dues to financial institution and banks.

(xii) Based on examination of records and the information and the explanation given by the management the Company has not granted any loans or advance on the basis of security by way of pledge of shares, debenture or other securities.

(xiii) The provisions of any Special Statute applicable to Chit Fund, Nidhi or Mutual Benefit Fund/Societies are not applicable to the Company.

(xiv) The Company is dealing or trading in shares, securities, debenture or other investments. The company has maintained proper records of the transactions and timely entries made therein. The shares, securities and other investments are held in the name of company.

(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 institutions.

(xvi) According to the information and explanations given to us, the Company has not taken any term loan during the year.

(xvii) According to the information and explanations given to us, and on an overall examination of the balance sheet of the company. No funds raised on short-term basis have been used for long term investment.

(xviii) According to the information and explanations given to us, the Company has not made any preferential allotment of share to parties and companies covered in the register maintained under Section 301 of the year.

(xix) According to the information and explanations given to us, during the period covered by our audit report, no debenture has been issued.

(xx) The Company has not raised any money by way of public issues during the year.

(xxi) On the basis of our examination and according to the information and explanations given to us, no fraud, on or by the company, has been noticed or reported during the year.



For SUTARIA ASSOCIATES CHARTERED ACCOUNTANTS FRN : 110728W

(CA PARESH H.SUTARIA) PARTNER Membership No: 36749

PLACE : MUMBAI DATE : 13th August, 2010