We have audited the attached Balance Sheet of Aunde India Ltd, as at
 30th June 2011 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 Company''s
 management. Our responsibility is to express an opinion on these
 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 management, as well as evaluating the overall financial statement
 presentation. We believe that our audit provides a reasonable basis for
 our opinion.
 
 1.  As required by the Companies (Auditor''s Report) Order, 2003 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 paragraphs 4 and 5 of the said Order.
 
 2.  Further to our comments in the Annexure referred to in Paragraph 1
 above:
 
 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 and Loss Account dealt with by this
 report are in agreement with the books of account
 
 d) In our opinion, the Balance Sheet and the 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.
 
 e) On the basis of written representations received from the Directors,
 as on 30th June, 2011 and taken on record by the Board of Directors, we
 report that none of the Directors are disqualified as on 30th June,
 2011 from being appointed as a Director in terms of clause (g) of
 sub-section (1) of section 274 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 Balance Sheet and Profit and Loss
 Account read together with the Accounting Policies and 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 the case of the Balance Sheet, of the state of affairs of the
 Company as at 30th June, 2011,
 
 ii.  In the case of Profit and Loss Account, of the Profit for the year
 ended on that date, and
 
 iii.  In the case of the Cash Flow statement, of the cash flows for the
 year ended on that date.
 
 ANNEXURE TO AUDITORS'' REPORT Referred to in paragraph 1 of the
 Auditors'' Report of even date to the members of Aunde India Ltd. On the
 financial statements for the year ended 30th June, 2011.
 
 i.  In respect of Fixed Assets
 
 a) The Company is maintaining proper records showing full particulars
 including quantitative details and situation of its Fixed Assets.
 
 b) As explained to us the major Fixed Assets have been physically
 verified by the Management at reasonable intervals during the year. As
 per the information given to us no material discrepancy has been
 noticed on such verification.
 
 c) In our opinion, the Company has not disposed of substantial part of
 fixed assets during the year and the going concern status of the
 Company is not affected.
 
 ii.  In respect of Inventories
 
 a) As informed to us, physical verification of finished goods, stores,
 spare parts and raw materials have been conducted by the Management at
 the end of the year.
 
 b) Based on the explanations given to us, in our opinion, the procedure
 of physical verification of stocks followed by the management is
 reasonable and adequate in relation to the size of the Company and the
 nature of its business.
 
 c) In our opinion, the Company is maintaining proper records of
 inventories and as explained to us, there were no material
 discrepancies noticed between the physical stocks and book record.
 
 iii. In respect of loans, Secured or Unsecured, granted or taken by the
 Company to/from companies, firms or other parties listed in the
 register maintained under Section 301 of the Companies Act, 1956:
 
 a) Based on the audit procedures applied by us and according to the
 information and explanations given to us, the Company has taken
 unsecured loan of Rs.594/- Lacs from company listed in a Register
 maintained under Section 301 of the Companies Act, 1956. The Company
 has not granted any loan to any companies, firms or other parties
 listed in the Register maintained under Section 301 oftheCompaniesAct,
 1956.
 
 b) As per the information and explanations given to us, rate of
 interest and the terms and conditions of the said loan taken, is not
 prima facie prejudicial to the interest of the Company.
 
 c) As explained to us no amount of principal & interest has become due
 for payment during the current year.
 
 d) In view of our comment in (c) above, Para 4(iii)(d) of the Order is
 not applicable to the Company.
 
 iv. 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 purchase of inventory and fixed assets and for the sale of goods.
 During the course of our audit, we have not observed any continuing
 failure to correct major weaknesses in internal controls.
 
 v.  In respect of transactions covered under Section 301 of the
 CompaniesAct, 1956
 
 a) In our opinion and according to the information and explanations
 given to us, the transactions that need to be entered in the Register
 maintained under section 301 of the Act, have been so entered.
 
 b) In our opinion and according to the information & explanation given
 to us, the transaction made in pursuance of such contracts or
 arrangements entered in the register maintained under section 301 of
 the Companies Act, 1956 and exceeding the value of Rupees Five Lacs in
 respect of any party during the year, have been made at prices which
 are reasonable having regard to the prevailing market prices at the
 relevant time.
 
 vi. The Company has not accepted any deposits from the public within
 the meaning of Sec 58Aand 58AAof the Act and the Rules framed there
 under.
 
 vii. In our opinion, the Company has an Internal Audit System, which is
 commensurate with the size and nature of its business.
 
 viii. We have been informed that the Central Government has not
 prescribed maintenance of cost records under Section 209 (1 )(d) of the
 Companies Act, 1956.
 
 ix.  In respect of Statutory dues
 
 a) The company has been generally regular in depositing undisputed
 statutory dues including Provident Fund, Income- Tax, Sales-Tax,
 Wealth-Tax, Customs Duty, Excise Duty, Cess and other statutory dues
 with the appropriate authorities. According to the information and
 explanation given to us, no undisputed amounts payable in respect of
 the aforesaid dues were outstanding as at 30th June 2011 for a period
 df more than six months from the date they became payable.
 
 b) According to the information and explanation given to us, the
 company do not have disputed liability towards the statutory dues
 including dues of Provident Fund, Income-Tax, Sales-Tax, Wealth-Tax,
 Customs Duty, Excise Duty, Cess and other statutory dues with the
 appropriate authorities except as given below:
 
 Particulars   Assessment years
                 to which        Status of Forum where     Amount
               the matter 
               pertains to       dispute is pending     (Rs. in lakhs)
 
 Excise Duty   
 AED (T&TA)    2001 to 2004        High Court               30.09
 
 Excise Duty -
 Textile 
 committee     2006 to 2008      Textile Committee           3.63
   cess
 
 Fringe Benefit 
 Tax           2006-2007         CIT (Appeals)               0.41
 
 x. The Company has no accumulated losses and has not incurred any cash
 losses during the financial year covered by our audit or in the
 immediately preceding financial year.
 
 xi. Based on our audit procedures and according to the information and
 explanations given to us we are of the opinion that the Company has not
 defaulted in repayment of dues to the financial institutions, banks or
 debenture holders.
 
 xii. In our opinion and according to the information and explanation
 given to us no loans and advances have been granted by the Company on
 the basis of security by way of pledge of shares, debentures and other
 securities.
 
 xiii. The Company is engaged in manufacturing activity, and therefore
 the provisions of para 4(xiii) of the said order relating to a chit
 fund or a nidhi / mutual benefit fund / society are not applicable to
 the company.
 
 xiv. In our opinion, the company is not dealing or trading in shares,
 securities, debentures and other investments and hence, the
 requirements of para 4(xiv) of the Order are not applicable to the
 Company.
 
 xv. According to the information and explanations given to us, the
 company has not given any guarantee for loans taken by others from
 bankorfinancial institutions.
 
 xvi. In our opinion and according to the information and explanations
 given to us, the term loan raised during the year was applied for the
 purposes for which it was obtained.
 
 xvii. On the overall examination of the balance sheet of the Company,
 in our opinion and according to the information and explanations given
 to us, funds raised on short-term basis have not been used for long-
 term purposes and vice-versa.
 
 xviii.The Company has not made any preferential allotment of shares or
 issued debentures or made any public issue during the year, and,
 accordingly, para 4 (xiii), (xix) and (xx) of the said order are not
 applicable to the company.
 
 xix. During the course of our examination of the books and records of
 the Company carried out in accordance with generally accepted auditing
 practices in India and according to the information and explanations
 given to us, we have neither come across any instance of fraud on or by
 the Company noticed or reported during the year, nor have we been
 informed of any such case by the management.
 
                                                MAJIBAIL & CO.
 
                                         Chartered Accountants
 
                                                       M.V.RAO
 
 Place: Mumbai                                      Proprietor
 
 Dated: 29th August, 2011                   Membership No.7082