We have audited the attached Balance Sheet of ECOBOARD INDUSTRIES LTD.
 as at 31st March 2012 and also the Statement of Profit and Loss and the
 Cash Flow Statement of the Company 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.
 
 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 from 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.
 
 As required by the Companies (Auditors'' Report) Order 2003, issued by
 the Central Government of India in terms of section 227 (4A) of the
 Companies Act, 1956, we give in the Annexure a statement on the matters
 specified in paragraph 4 of the said Order.
 
 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 purposes of our
 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 the 
 books;
 
 c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
 dealt with by this report are in agreement with the books of account
 and in our opinion, comply with the accounting standards referred to in
 sub-section (3C) of section 211 of the Companies Act, 1956.
 
 d) On the basis of written representations received from the directors
 and taken on record by the Board of Directors, we report that none of
 the directors is disqualified as on 31st March 2012 from being
 appointed as a director in terms of clause (g) of sub-section (1) of
 section 274 of the Companies Act, 1956.
 
 e) In our opinion and to the best of our information and according to
 the explanations given to us, the said accounts read with the notes to
 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:
 
 i) in the case of the Balance Sheet, of the state of affairs of the
 Company as at 31st March 2012;
 
 ii) in the case of Statement of Profit and Loss, of the loss for the
 year ended on that date.
 
 iii) in the case of the Cash Flow Statement, of the cash flows for the
 year ended on that date.
 
 ANNEXURE TO THE AUDITORS'' REPORT
 
 Referred to in our report of even date on the accounts of ECOBOARD
 INDUSTRIES LIMITED for the year ended 31st March 2012.
 
 1.  (a) The Company has maintained proper records showing full particulars
 including quantitative details and situation of fixed assets.
 
 (b) According to the information and explanations given to us, the
 fixed assets were physically verified during the period by the
 management. No material discrepancies were noticed on such
 verification.
 
 (c) The company has not disposed off substantial part of its fixed
 assets during the year.
 
 2.  (a) According to the information given to us, physical verification
 of inventory was conducted by the management during the year at
 reasonable intervals.
 
 (b) In our opinion, 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. According
 to the information and explanations given to us, no material
 discrepancies were noticed on physical verification of inventories.
 
 3.  (a) The company has not granted any loans, secured and unsecured,
 to companies, firms or other parties listed in the register maintained
 under section 301 of the Companies Act, 1956. Accordingly, paragraphs
 4(iii)(b),(c) and (d) of the Order are not applicable.
 
 (b) The company has taken unsecured loans of Rs.264.61lacs from 3
 parties listed in the register maintained under section 301 of the
 Companies Act, 1956.
 
 (c) In our opinion, the rate of interest and other terms and conditions
 of above loans taken by the company are not prima facie prejudicial to
 the interest of the company.
 
 (d) According to information and explanations given to us, the company
 is regular in payment of principal amount and interest on these loans.
 
 4.  In our opinion and according to the information and explanations
 given to us, there is adequate internal control system commensurate
 with the size of the company and the nature of its business with
 regards to the purchase of inventory and fixed assets and for the sale
 of goods and services. Further, on the basis of our examination of the
 books and records of the Company, and according to the information and
 the explanations given to us, we have neither come across nor have been
 informed of any continuing failure to correct major weaknesses in the
 aforesaid internal control system.
 
 5.  (a) According to the information and explanations given to us, we
 are of the opinion that the particulars of contracts or arrangements
 that need to be entered in the register maintained under section 301 of
 the Companies Act 1956 have been entered.
 
 (b) In our opinion and according to the information and explanations
 given to us, the transactions 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.
 
 6.  In our opinion and according to the information and explanations
 given to us, the company has not accepted any deposits from the public.
 The provisions of section 58A and 58AA of the Companies Act. 1956 and
 the rules framed there under are not applicable.
 
 7.  In our opinion, the Company has an internal audit system
 commensurate with its size and the 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 the Company''s products.
 
 9.  (a) According to the records of the company, the company is
 generally regular in depositing undisputed statutory dues including
 Provident Fund, Investor Education and Protection Fund, Employees''
 State Insurance, Income-tax, Sales-tax, Custom duty, Excise duty and
 other statutory dues applicable to it, although in some cases, payments
 were made after the due dates. According to information and
 explanations given to us, except service tax of Rs.  28.85lacs,no
 outstanding statutory dues were in arrears as at 31/03/2012 for a
 period of more than six months from the date they became payable.
 
 (b) According to the information and explanations given to us,
 following amount of tax, duty or cess was under dispute hence not paid:
 
 Nature of      Period          Amount            Forum where the
 dues                           Rs. In lacs       dispute is pending
 
 
 Central        2003-04         28.45             Custom, Excise & 
 Excise duty                                      Service Tax
                                                  Appellate Tribunal.
 
 Central        2003-04         13.50             Custom, Excise & 
 Excise duty                                      Service Tax
                                                  Appellate Tribunal.
 
 
 Central        2004-05          2.98             Custom, Excise &
 Excise duty                                      Service Tax
                                                  Appellate Tribunal.
 
 
 Central        2004-05/         3.14             Custom, Excise &
 Excise duty    2005-06                           Service Tax
                                                  Appellate Tribunal.
 
 
 Central        2006-07          2.25             Custom, Excise &
 Excise duty                                      Service Tax
                                                  Appellate Tribunal.
 
 Central        2009-10         13.14             Custom, Excise &
 Excise duty                                      Service Tax
                                                  Appellate Tribunal.
 
 
 Central        2008-10         78.15             Custom, Excise &
 Excise duty                                      Service Tax
                                                  Appellate Tribunal.
 
 10.  The company is registered for a period of more than five years.
 Its accumulated losses at the end of the financial year were less than
 fifty per cent of its net worth. The company has not incurred cash
 losses in this or immediately preceding financial year.
 
 11.  In our opinion and according to the information and explanation
 given to us by the management, the company has not defaulted in
 repayment of dues to the financial institutions or banks or the
 debenture-holders during the year.
 
 12.  The company has not granted loans and advances on the basis of
 security of shares, debentures and other securities.
 
 13.  The company is not engaged in the business of chit funds, nidhi,
 mutual benefit fund or mutual benefit society.
 
 14.  The company is not dealing or trading in shares, securities,
 debentures or other investments.
 
 15.  According to the information and explanations given to us, the
 company has not given any guarantee for loans taken by others.
 
 16.  According to the information and explanations given to us, the
 company has not availed any term loans during the year.
 
 17.  According to the information and explanations given to us and on
 an overview of the balance sheet and the cash flow statement of the
 company, we report that no funds raised on short term basis have been
 used for long term investment.
 
 18.  The Company has not made any preferential allotment of shares
 during the year.
 
 19.  The company did not have any outstanding secured debentures as on
 the date of the balance sheet.
 
 20.  The company has not raised any money by public issue of securities
 during the year.
 
 21.  During the course of our examination of the books and records of
 the Company, carried out in accordance with the generally accepted
 auditing practices in India, and according to the information and
 explanations given to us, we have neither come across any instances of
 material fraud on or by the company, noticed or reported during the
 year, nor have we been informed of such case by the management.
 
                                           For Chaturvedi SK & Fellows
                                                 Chartered Accountants
 
 
                                                    Srikant Chaturvedi
                                                               Partner
 
 Place : Pune                                   (Firm Regn No. 112627W.
 
 Dated :August 14, 2012                 Partner''s Membership No. 70019)