While you retain the theme name (Twenty Twelve) and the theme image, there is no reference to the original authors whose work you have customized as well as you have removed the licensing info which is basically wrong. Also, as you have modified the original theme, you cannot update the theme unless you want to lose all your customizations or you may not be able to update it at all. Instead, you could have created a child theme and customized it.
http://codex.wordpress.org/Child_Themes
http://wordpress.org/about/license/
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Krishna on "Custimsed TwentyTwelve WP theme - Locksmiths 24/7"
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