1.  We have audited the attached Balance Sheet of AHMEDABAD STEELCRAFT
 LIMITED as at March 31,2011 and also the Profit and Loss account and
 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.
 
 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 issued
 by the Central Government of India in terms of sub-section (4A) of
 Section 227 of the Companies Act, 1956, we enclose in the Annexure a
 statement on the matters specified in paragraphs 4 and 5 of the said
 Order.
 
 4.  Further to our comments in the 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 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, Profit and Loss account and Cash flow statement
 dealt with by this report are in agreement with the books of account.
 
 iv) In our opinion, the Profit and Loss account and Balance Sheet
 comply with the Accounting Standards referred to in Subsection (3C) of
 Section 211 of the Companies Act, 1956
 
 v) On the basis of the written representations received from the
 directors as on March 31 , 2011 and taken on record by the Board of
 Directors, we report that none of the directors are disqualified as on
 March 31,2011 from being appointed as a director in terms of clause (g)
 of sub-section(l) of section 274 of the Companies Act, 1956.
 
 vi) In our opinion the said accounts to the best of our information and
 according to the explanations given to us 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 at March 31,2011;
 
 b) in the case of the Profit and Loss account, of the Profit for the
 year ended on that date; and
 
 c) in the case of Cash Flow Statement, of the cash flows for the year
 ended on that date.
 
 ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE Ref:
 Ahmedabad Steelcraft Limited
 
 1) (a) The Company is maintaining proper records showing full
 particulars, including quantitative details and situation of fixed
 assets.
 
 (b) All the assets have been physically verified by the management
 during the year as per the regular programme of verification which, in
 our opinion, is reasonable having regard to the size of the Company and
 the nature of its assets. No material discrepancies were noticed on
 such verification.
 
 (c) During the year the Company has disposed off its land in full.
 According to the information and explanations given to us, the said
 disposal plan is consistent with the Company''s long term strategy to
 focus in its current business of Trading & Export of Steel Mild Section
 and for investment in partnerships for real estate ventures/projects.
 The Company has also disposed off old & obsolete fixed assets as per
 the above long term strategy. Therefore in the present situation the
 Company''s going concern status has not been affected.
 
 2) (a) The management has conducted physical verification of inventory
 at reasonable intervals.
 
 (b) The procedures 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 and no
 material discrepancies were noticed on physical verification by the
 management.
 
 3) (a) The Company has granted unsecured loan to one company covered in
 the register maintained u/s.301 of the Act and maximum amount involved
 in the transactions is Rs. 2,13,53,950/-.
 
 (b) The rate of interest and other terms and condition of the loan
 granted are Prima facie not prejudicial to the interest of the Company.
 
 (c) There is no stipulation regarding repayment of principal amount
 which is outstanding at the year end of Rs. 1,94.94,190/-.
 
 (d) There is no stipulation regarding repayment of outstanding loan.
 Hence, we are unable to give any comment that whether the same is over
 due or not.
 
 (e) The Company has not taken any loans, secured or unsecured from
 companies, firms or other parties covered in the register maintained
 u/s. 301 of the Companies Act, 1956 during the year.  Accordingly,
 clauses (iii)(f) and (iii)(g) of paragraph 4 of the Order are not
 applicable to the Company for the current year.
 
 4) In our opinion and according to the information and explanations
 given to us. there are adequate internal control procedures
 commensurate with the size of the Company and the nature of its
 business, with regard to purchases of inventory, fixed assets and with
 regard to sale of goods, and services.  During the course of our audit,
 no major weakness has been noticed in internal control system.
 
 5) Based on the audit procedures applied by us and according to the
 information and explanations provided by the management, we are of the
 opinion that there are no contracts or arrangements that need to be
 entered into the register maintained under section 301 of the Companies
 Act, 1956.  Accordingly, clause (v) (b) of Paragraph 4 of the Order is
 not applicable to the company for the current year.
 
 6) The Company has not accepted any deposit during the year in
 contravention of provisions of section 58A of the Companies Act,! 956
 and Companies (Acceptance of Deposit) Rule 1975.
 
 7) The internal audit functions carried out during the year by a firm
 of Chartered Accountants appointed by the management have been
 commensurate with the size of the company and nature of its business.
 
 8) We are informed that the Central Government has not prescribed
 maintenance of cost records under section 209( 1 )(d) of the Companies
 Act, 1956 for any products of the company.
 
 9) (a) According to the records of the Company, the Company is regular
 in depositing undisputed statutory dues including Provident Fund,
 Investor Education and Protection Fund, Employees'' State Insurance,
 Income-tax, Sales-tax, Wealth Tax, Custom Duty, Excise Duty, Service
 tax, Cess and other material statutory dues applicable to it with the
 appropriate authorities except in depositing Income tax deducted at
 Source in respect of pay ment to Contractors.
 
 (b) According to the information and explanations given to us, no
 undisputed amounts payable in respect of Income-tax, Wealth tax, Sales
 tax, Service tax, Customs duty and Excise Duty, Cess were outstanding
 as at 31st March, 2011 for a period of more than six months from the
 date they became payable.
 
 10) In our opinion, the Company has no accumulated losses. During the
 financial year covered by our audit, Company has not incurred cash
 losses. In the immediately preceding financial year, there were cash
 losses.
 
 11) Based on our audit procedures and according to the information and
 explanation given to us, we are of the opinion that the company has not
 defaulted in repayment of dues to financial institutions, banks, or
 debenture holders.
 
 12) In our opinion and according to the information and explanations
 given to us, no loans or advances have been granted by the company on
 the basis of security by way of pledge of shares, debentures and other
 securities.
 
 13) In our opinion the Company is not a chit fund or a nidhi/mutual
 benefit funds/society. Therefore, clause 4(xiii) of the Companies
 (Auditor''s Report) Order 2003 is not applicable to the Company.
 
 14) In our opinion, the Company is not dealing in shares, securities,
 debentures and other investments.  Accordingly, the provision of clause
 4(xiv) of the Companies (Auditor''s Report) Order 2003 is not applicable
 to the Company.
 
 15) According to the information and explanations given to us, the
 Company has not given any guarantee for loans taken by its subsidiaries
 and associates from bank or financial institutions.
 
 16) The Company did not have any term loan outstanding during the
 current financial year or in the immediately preceding financial year.
 
 11) According to the information and explanations given to us and on an
 overall examination of the balance sheet of the company, we report that
 no funds raised on short term basis have been used for long term
 investment.
 
 18) During the year, the Company has not made any preferential
 allotment of shares to parties or companies covered in the register
 maintained under section 301 of the Companies Act, 1956.
 
 19) The Company did not have any outstanding debentures during the
 year.
 
 20) The Company has not raised any money through a public issue during
 theyear.
 
 21) Based upon the audit procedures performed and information and
 explanations given by the management, we report that no fraud on or by
 the Company has been noticed or reported during the course of our audit
 that causes the financial statements to be materially misstated.
 
                                               For, DHIREN SHAH & Co.,
 
                                               Chartered Accountants,
                                               Firm Reg. No. 114633W
 
 PLACE  :   Ahmedabad                               (DHIREN SHAH)
 
 DATED  :   23-07-2011                                PROPRIETOR
 
                                                Membership No. 35824