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 the 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 (Auditors' Report) Order, 2003 issued by the Company Law Board in terms of Section 227 (4A) of the Companies Act 1956 (1 of 1956) we give in the Annexure a statement on the matters specified in paragraph 4 & 5 of the said Order.

4. Further to our comments in the Annexure referred to in Paragraph 3 above , 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 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 such books.

(c) The Balance Sheet and Profit & Loss Account and Cash Flow Statement referred to in this report are in agreement with the books of account.

(d) On the basis of confirmations received from the Directors of the Company, and the information and explanation given to us, none of the Directors of the Company are disqualified from being appointed as Directors of the Company under Clause (g) of Sub- Sec(l) of Section 274 of the Companies Act,1956.

(e) In our opinion the Profit and Loss Account and the Balance Sheet and Cash Flow Statement comply with the accounting standards defined in sub-section (3C) of Section 211 of the Companies Act, 1956.

(f) In our opinion, and to the best of our information and according to the explanations given to us, the said Balance Sheet and the Profit & Loss Account 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:

i) In so far as it relates to the Balance Sheet of the state of affairs of the Company as at 31st March, 2012 and

ii) In so far as it relates to the Profit & Loss Account of the Profit of the Company for the year ended on that date.

iii) In the case of the Cash Flow Statement of the Cash Flow for the year ended on that date.

ANEXURE TO AUDITOR'S REPORT

Referred to in Paragraph 1 of my report of even date.

i) On the basis of such checks as we considered appropriate and in terms of the information and explanations given to us, we state that:-

a) The records of quantitative details and situation of Fixed Assets could not be verified as the Company has claimed that the Fixed Assets Register has been damaged due to natural calamity.

b) As explained to us, fixed assets, according to the practice of the Company, have been physically verified by the Management at reasonable intervals, which in our opinion, is reasonable, having regard to the size of the Company and the nature of its business, during the year. According to the information and explanations given to us, no material discrepancies were noticed on physical verification of assets.

c) The Company has not disposed of substantial part of fixed assets during the year.

ii) a) Physical verification of inventory has been conducted at reasonable intervals.

b) The procedure and interval 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.

c) The company is maintaining proper records of inventory. No discrepancies were noticed on verification between the physical stock and book record.

iii) a)The Company has granted unsecured loan to its associate concern JVl/ s. Mono Acriglass Industries Ltd amounting to Rs.219.48 lakh.

b) There is no stipulation as to the repayment of the principal or the interest on the above loans.

c) Neither the principal amount nor the interest has been repaid by the associate M/s. Mono Acriglass Industries Ltd

d) This associate has become a sick unit and the same is with BOARD FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION for reconstruction. The company claim to be taking possible reasonable steps to ensure speedy recovery of this loans.

iv) There is an adequate internal control procedure commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and for sale of goods. We have not observed any continuing failure to correct major weakness in the internal control system.

(v) a) The Register to be maintained u/s 301 could not be verified as the company claims that the same was damaged due to natural calamity.

b) It is not possible to comment on the reasonableness of the prices at which the transactions have been entered into considering the technical nature of the business and the unavailability of the Registrar to be maintained u/s.301. (vi) According to the information and explanation given to us, the Company has not accepted any deposits from the public.

vii) In our opinion, the internal audit function carried out during the year by a firm of Chartered Accountants appointed by the management has been commensurate with the size of the Company and the nature of its business.

viii) The Central Government has not prescribed the maintenance of cost records under Section 209( 1 )(d) of the Companies Act, 1956 for the Company.

ix) According to the records of the Company, the Company is irregular in depositing with appropriate authorities undisputed statutory dues. The following dues are outstanding as at the last day of the financial year concerned for a period of more than 6 months from the day they become payable. Service Tax Rs.96,10,821/- , Profession tax Rs 1,17,945/- & CST Rs.2,97,255/- .

x) The Company's accumulated loss at the end of the financial year is not more than fifty percent of its net worth. The company has earned cash profit during this financial year, and in the previous financial year.

(xi) According to the records of the company, the company has not borrowed from financial institutions or bank or issued debentures till 31st March 2012.Hence, in our opinion, the question of reporting on defaults in repayment of dues to financial institutions or banks or debentures does not arise.

(xii) The company has given guarantee for Term loan granted to its associate concern M/s. Mono Acriglass Industries Ltd. The terms and conditions of this guarantee don't seem to be prejudicial to the company. However there is no counter guarantee taken by the Company in case the lender invokes the guarantee given by the Company.

(xiii) On the basis of records examined by us and according to the information and explanations given to us, the company has not taken any term loan during the year.

(xiv) On the basis of records examined by us and according to the information and explanations given to us, the company has not used any short term funds for long term application.

(xv) Since the Registrar u/s.30 1 has not been maintained it is not possible to comment weather the Company has made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act during the year.

(xvi) According to the information and explanations given to us, and to the best of our knowledge and belief, no fraud on or by the Company, has been noticed or reported by the Company during the year;

(xvii) Looking to the nature of activities being carried on at present by the Company during the year; and also considering the nature of the matters referred to in the various clauses of the Companies (Auditors' Report) Order, 2003, clauses (xii),(xiii) , (xiv) and (xix) of paragraph 4 of the aforesaid Order, are in our opinion, not applicable to the Company.

For HEMANT MHAMBREY ASSOCIATES

CHARTERED ACCOUNTANTS

CA.HEMANT MHAMBREY

PROPRIETOR

Dated : 30th July, 2012

Place : Mumbai