1.  We have audited the attached balance sheet of AVIVA INDUSTRIES
 LIMITED, as at 31st March 2011, the profit and loss account and also
 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
 there financial statements based on our audit.
 
 2.  We conducted our audit in accordance with the 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 disclosure in the financial statement. An Audit also includes
 assessing the accounting principal 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, 2003issued
 by the Central Government of India in term of sub-section (4A) of
 section 277 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 the information and explanation, which to the best
 of our knowledge and belief were necessary for the purpose 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 balance sheet, profit and loss account and
 cash flow statement 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 representation received from the directors,
 as on 31st March 2011 and taken on record by the Board of Directors, we
 report that none of the directors is disqualified as on 31st March
 2011, 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 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 31st March 2011.
 
 (b) In the case of the profit and loss account, of the Loss for the
 year ended on that date; and
 
 (c) In the case of the cash flow statement, of the cash flows for the
 year ended on that date.
 
 
 
 
 ANNEXURE TO THE AUDITOR''S REPORT
 
 ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
 MEMBERS OF AVIVA INDUSTRIES LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED
 MARCH 31, 2011.
 
 I.  A) The Company has maintained proper records showing full
 particulars, including quantitative details and situation of fixed
 assets;
 
 B) We are informed that fixed assets have been physically verified by
 the management as at the year end and no material discrepancies have
 been noticed in respect of assets so verified during the year. In our
 opinion the frequency of verification is reasonable having regard to
 the size of the Company and the nature of its assets.
 
 C) During the year the Company has not disposed off any substantial
 part of its fixed assets.
 
 II.  A) The inventory has been physically verified during the year by
 the management. In our opinion the frequency of verification is
 reasonable.
 
 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. The
 discrepancies noticed on verification between the physical stocks and
 the books records were not material.
 
 III.  A) The company has not granted/taken loans to/from companies,
 firms or other parties listed in the register maintained under section
 301 of the Companies Act, 1956.
 
 IV.  In our opinion and according to the information and explanation
 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, fixed assets and with
 regard to the sale of goods, during the course of our audit, we have
 not observed any continuing failure to correct major weakness in
 internal controls.
 
 V.  A) According to the information and explanations given to us, we
 are of the opinion that the transactions that need to be entered into
 the register maintained under section 301 of the Companies Act, 1956
 have been so entered.
 
 B) In our opinion and according to the information and explanation
 given to us the transaction made in pursuance of the contracts or
 arrangements entered in the register maintained under section 301 of
 the Companies Act, 1956 and exceeding the value of rupees five Lacks in
 respect of any party during the year have been made at prices which are
 reasonable having regard to prevailing market prices at the relevant
 time.
 
 VI.  The Company has not accepted any deposits during the year from the
 public within the meaning of the provisions of Section 58A and 58AA of
 the Companies Act, 1956 and rules made there under.
 
 VII.  In our opinion, the company has an internal control system
 commensurate with the size and nature of its business.
 
 VIII.  Since this is being Trading Unit hence section 209 (1) (d) of
 the Companies Act, 1956 is not applicable to it.
 
 IX.  (A) The company is regular is depositing with appropriate
 authorities undisputed statutory dues including income tax, sales tax,
 custom duty, cess and other material statutory dues applicable to it.
 
 (B) According to the information and explanation given to us, no
 undisputed amounts payable in respect of income tax, wealth tax, sales
 tax, custom duty, excise duty and cess were in arrears, as at 31st
 March,2011 for a period of more than six months from the date they
 became payable, other than income tax for the immediate previous years.
 
 (C) According to the information and explanation given to us, there are
 no dues of sale tax, customs duty, wealth tax, excise duty and cess,
 which have not been deposited on account of any dispute.
 
 X.  The Company has incurred cash losses during the financial year
 covered by our audit and immediately preceding financial year and also
 company has no accumulated losses.
 
 XI.  In our opinion and according to the information and explanations
 given to us, the company has not defaulted in repayment of dues to a
 financial institution, bank or debenture holders.
 
 XII.  The Company has not granted loans and advances on the basis of
 security by way of pledge of share, debentures and other securities.
 
 XIII.  The Company is not a chit fund or a nidhi mutual benefit
 fund/society. Therefore, the provisions of clause 4 (xiii) of the
 companies (Author''s Report) Order, 2003 are not applicable to the
 company.
 
 XIV.  The Company is not dealing in or trading in shares, securities,
 debentures and other investments except as an investment. Accordingly,
 the provisions of clause 4 (xiv) of the companies (Auditor''s Report)
 Order, 2003 are not applicable to the company.
 
 XV.  In our opinion and informed by the management, the company has not
 given guarantees for loans taken by others from banks or Financial
 Institution.
 
 XVI.  In our opinion, the term loans have been applied for the purpose
 for which they were raised.
 
 XVII.  According to the information and explanations given to us and on
 an overall examination of the balance sheet of the company, we report
 that the no funds raised on short-term basis have been used for long-
 term assets permanent working capital.
 
 XVIII.  According to the information and explanations given to us, the
 company has not made any allotment of preferential shares during the
 financial year.
 
 XIX.  The company has no issued any debentures during the year.
 
 XX.  The company has not issued and raised money by public issues
 during the year.
 
 XXI.  According to the information and explanations given to us, no
 fraud on or by the Company has been noticed or reported during the
 course of our audit.
 
 For and on behalf of
 
 For, J .VAGERIYA & ASSOCIATES
 
 Chartered Accountants   
 
 FRN:124193W
 
 Jitendra Vageriya
 
 Proprietor        
 
 M.No. 114424      
 
 Place: Ahmedabad 
 
 Date: July 5, 2011