1.  We have audited the attached Balances Sheet of M/S.CRIMSON METAL
 ENGINEERING COMPANY LIMITED. As at 31st March 2012 and also the
 Statement of Profit & Loss and Cash Flow Statement on that date annexed
 there to.  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 (Auditors'' Report) Order, 2003 (As
 amended) issued by the Central Government of India in terms of section
 227(4A) of the Companies Act, 1956. and on the basis of such checks as
 we considered appropriate and according to information and explanation
 given to us, we setout in the annexure a statement on the matters
 specified in paragraph 4 and 5 of the said order.
 
 4.  Further to our comments in the annexure referred to 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 the
 audit.
 
 b) In our opinion proper books of accounts as required by Law have been
 kept by the company, so far as appears from our examination of those
 books.
 
 c) The Balance Sheet and Statement of Profit & Loss and Cash flow
 statement dealt with by this report are in agreement with the books of
 accounts.
 
 d) In our opinion, the Balance Sheet, Statement of Profit & Loss and
 Cash flow statement dealt with by this report have been prepared, in
 all material respects, in compliance with the applicable Accounting
 Standards referred to in section 211(3C) of the Companies Act, 1956.
 
 e) On the basis of the written representations received from the
 directors and taken on record by the Board of Directors, none of the
 directors is disqualified as 31st March 2012 from being appointed as a
 director in terms section 274(1) (g) of the Companies Act 1956.
 
 f) In our opinion and to the best of our information and according to
 the explanation 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 accounting principle generally
 accepted in India.
 
 (i) In the case of the Balance Sheet of the state of affairs of the
 company as at 31st March, 2012; and
 
 (ii) In the case of Profit and Loss Account, of the profit 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.
 
 
 
 ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
 MEMBERS OF M/S. CRIMSON METAL ENGINEERING COMPANY LIMITED (Formerly
 known as SRI SAARBATI STEEL TUBES LIMITED), CHENNAI, THE ACCOUNT FOR
 THE YEAR ENDED ON 31ST MARCH, 2012.
 
 (i)(a) The Company records showing full particulars including
 quantitative details and situation of Fixed Assets have been lost and
 an FIR has been filed on 03.08.2003 in that regard. It was explained to
 us that record from 01.04.2003 is being made. Further, the Company is
 taking efforts to make the records of Fixed Assets for earlier period
 as much as possible.
 
 (b) Some of the Fixed Assets were physically verified by the management
 randomly during the year in accordance with a programme of verification
 which, in our opinion, provides for physical verification of all assets
 at reasonable intervals.  According to information and explanations
 given to us, no material discrepancies were noticed on such
 verification.
 
 (c) None of the Fixed Assets have been revalued during the year.
 
 (d) There was no disposal of substantial part of fixed assets during
 the year.
 
 (ii) (a) The Inventories of the company at its locations have been
 physically verified during the year by the management.
 
 (b) In our opinion the procedures of physical verification of
 inventories followed by the management are reasonable and adequate in
 relation to the size of the company and nature of its business.
 
 (c) The company has maintained proper records of inventories and the
 discrepancies noticed on verification between the physical stocks and
 the book records have been properly dealt with in the books of account.
 
 (iii) (a) The company has taken loans secured or unsecured from two of
 the corporate bodies amounting to Rs.8.47 Crores.The Maximum amount
 involved during the year was Rs.8.87 Crores.
 
 (b) In our Opinion, the rate of interest and other terms and conditions
 on which loan have been taken from the companies are not, prima-facie,
 prejudicial to the interest of the Company.
 
 (c) The company is regularly paying the principal and interest amount
 as so stipulated.
 
 (d) There is no overdue amount of loan taken from 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 the purchase of inventories, fixed assets
 and 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 Companies Act, 1956 have
 been so entered.
 
 (b) In our opinion and according to the information and explanations
 given to us, the transaction made in pursuance of contracts or
 arrangements entered in the register maintained under section 301 of
 the Companies Act, 1956 and exceeding the value of five lakhs rupees in
 respect of any party covered 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 fixed deposits from the public
 during the year.
 
 (vii) In our opinion, the company has an internal audit system
 commensurate with the size and nature of its business.
 
 (viii) We have broadly reviewed the books of account
 
 relating to materials, labour and other items of cost maintained by the
 company pursuant to the rules made by the central government for the
 maintenance of cost records under section 209 (I) (d) of the companies
 Act, 1956 and we are of the opinion that prima facie the prescribed
 accounts and records have been made and maintained. However, we have
 not carried out detailed examination of such accounts and records.
 
 (ix) (a) The company is regular in depositing with appropriate
 authorities undisputed statutory dues including investor''s education
 protection fund, Income Tax, Wealth Tax, customs duty, excise duty,
 cess and other material statutory dues applicable to it. However some
 delays were there in payment of provident fund, Employee state
 insurance during the year.
 
 (b) According to the information and explanation given to us, no
 undisputed amounts payable in respect of provident fund, investor
 education under protection fund, Employees state insurance, income tax.
 Wealth Tax, service tax, Sales tax, customs duty, excise duty, cess and
 other material on disputed statutory dues were outstanding, at the year
 end, for a period of more the\an six month they became payable.
 
 (c) According to information and explanation given to us, there are no
 dues of sales tax, income tax, customs duty, wealth tax, excise duty
 and cess which have not been deposited on account of any dispute.
 
 (x) The accumulated losses of the company exceed fifty percent of net
 worth at the end of the year. The company has not incurred cash loss
 during the financial year covered by our audit and immediate preceding
 financial year.
 
 (xi) In our Opinion and according to information and explanation given
 to us, the Company has not defaulted in repayments of dues to a
 financial institutions, bank or debenture holders.
 
 (xii) The company has not granted any loan and advances on the basis of
 security by way of pledge of shares, debentures and other securities.
 
 (xiii) In our opinion, the company is not a chit fund or a nidhi/mutual
 benefit/society. Therefore, the provision of clause 4 (xiii) of the
 companies (Audit Report) Order 2003, (as amended) are not applicable to
 the company.
 
 (xiv) In our opinion, the company is not dealing in or trading in
 shares, securities, debentures and other investments. Accordingly, the
 provisions of clause 4 (xiii) of the companies (Audit Report) Order
 2003, (as amended) are not applicable to the company.
 
 (xv) The company has not given any guarantee for loans taken by others
 from banks or financial institutions.
 
 (xvi) According to the information and explanation given to us no terms
 loans raised by the company during the year covered by our audit.
 
 (xvii) According to the information and explanations given to us and an
 overall examination of the balance sheet of the company, we report that
 Rs 2.66 Cores fund raised on short term basis have been used for long
 term investment. No long term fund has been used to finance short term
 assets except permanent working capital.
 
 (xviii) According to the information and explanations given to us, the
 Company has not made any preferential allotment of shares to parties or
 Companies covered in the register maintained U/s 301 of the Companies
 act 1956.
 
 (xix) According to the information and explanations given to us, during
 the period covered by our audit report, the company has not issued any
 debentures.
 
 (xx) We verified the books of accounts of the company and report that
 the company has not raised any money by public issue 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 ABHAY JAIN & CO.
 
                                              Chartered Accountants
 
                                                       FRN: 000008S
 
                                                        (A.K. JAIN) 
 
 Place : Chennai                                           Partner
 
 Date  : 03.09.2012                                   M. No. 70224