Auditor Report of Beta Kappa Investments Ltd.

Mar 31, 2009

We have audited the attached Balance Sheet of M/s. Beta Kappa Investments Limited as at 31st March 2009 and also the Profit and Loss Account and 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 statments 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 (Auditors Report) Order, 2003 issued by the Central Government 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 & 5 of the said order.

Further to our comments in the Annexure referred in paragraph 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 and Profit and Loss Account 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 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, 2009, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March 2009 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 read together with the significant accounting policies and notes forming part thereof 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 the state of affairs of the Company as at 31st March, 2009; and

b) in the case of the Profit and Loss Account, of the profit for the year ended on that date.

c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT TO THE MEMBERS OF M/s. Beta Kappa Investments Limited Annexure referred to in the Auditors Report to the members of M/s. Beta Kappa Investments Limited on the accounts for the year ended 31st March 2009.

i) The Company has maintained proper records to show full particulars including quantitative details and situation of fixed assets. The fixed assets are being physically verified under a phased programme of verification and no material discrepancies have been noticed on such verification.

ii) The company has not taken any loans from parties listed in the register maintained under section 301 of the Companies Act, 1956 during the period under review.

iii) The company has not granted any loans during the year, secured or unsecured to Companies, Firms or other parties listed in the Register maintained under Section 301 where the rate of interest and other terms and conditions are prima facie prejudical to the interest of the company.

iv) The company has adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods.

v) There were no transactions of purchase of goods and materials and sale of goods and materials and services made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act, 1956 and aggregating during the year to Rs. 5,00,000/- or more at prices which are unreasonable havig regard to the prevailing market prices for such goods, materials or services.

vi) The company has not accepted any deposits from the public.

vii) The company has an internal audit system commensurate with the size of the company and nature of its business.

viii) We have been informed by the management that the Central Government has not prescribed the maintenance of cost records under Section 209(1 )(d) of the Companies Act, 1956 for the period under review.

ix) We have been informed by the management that the provisions of Provident Fund Act and Employees State Insurance Act does not apply to the company.

x) There are no undisputed amounts payable in repect of Investor Education and Protection Fund, Income Tax, Sales Tax, Wealth Tax, Customs Duty and Excise Duty, cess and other statutory dues as on 31 st March 2009, outstanding for a period of more than six months from the date on which they became payable.

xi) The company has not incurred cash losses in the current financial year and in the immediately preceding financial year. There is no accumulated losses at the end of the year.

xii) The company has not defaulted in repayment of its dues to bankers and debenture holders.

xiii) 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.

xiv) The company has neither availed nor had any outstandig balance of term loans during the year under review.

xv) According to the Cash flow statement and other records examined by us and the information and explanations given to us, on an overall basis, short term funds have not been deployed in long term investments.

xvi) 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.

xvii) The company has not issued debentures during the year.

xviii) The company has not raised any money byway of public issues during the year.

xix) 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.

The other clauses specified in paras 4 & 5 of The Companies (Auditors Report) Order are not applicable to the company.

for P.CHANDRASEKAR Chartered Accountants

Sd/- Place: Chennai S. BABU

Date: 30.6.2009 Partner

Membership No. 024136