We have audited the attached Balance Sheet of ELANTAS Beck India
 Limited (''the Company'') as at 31 December 2011, the related Profit and
 Loss account 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 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 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 to the extent applicable to the Company.
 
 2. 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 account as required by law have been
 kept by the Company so far as appears from our examination of those
 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;
 
 d) in our opinion, the Balance Sheet, the Profit and Loss account and
 the 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;
 
 e) on the basis of written representations received from the directors
 of the Company, as on 31 December 2011 and taken on record by the Board
 of Directors, we report that none of the Directors are disqualified as
 on 31 December 2011 from being appointed as a director in terms of
 clause (g) of sub-section (1) of Section 274 of the Companies Act,
 1956; and
 
 f) in our opinion, and to the best of our information and according to
 the explanations given to us, the said financial statements 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 31 December 2011;
 
 ii) in the case of the Profit and Loss account, of the profit of the
 Company for the year ended on that date; and
 
 iii) in the case of the Cash Flow statement, of the cash flows of the
 Company for the year ended on that date.
 
 Annexure to the Auditors'' Report - 31 December 2011
 
 With reference to the Annexure referred to in paragraph 1 of the
 Auditors'' Report to the Members of the Company on the financial
 statements for the year ended 31 December 2011, we report that:
 
 1.  (a) The Company has maintained proper records showing full
 particulars, including quantitative details and situation of fixed
 assets.
 
 (b) The Company has a regular programme of physical verification of its
 fixed assets by which all fixed assets are verified in a phased manner
 over a period of two years. In our opinion, this periodicity of
 physical verification 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) Fixed assets disposed off during the year were not substantial, and
 therefore, do not affect the going concern assumption.  Annexure to
 Auditors'' Report - 31 December 2011 (Continued)
 
 2.  (a) The inventory, except goods-in-transit and stocks lying with
 third parties, has been physically verified by the management during
 the year. In our opinion, the frequency of such verification is
 reasonable. For stocks lying with third parties at the year-end,
 written confirmations have been obtained.
 
 (b) The procedures for physical verification of inventories 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 book records were not material.
 
 3.  The Company has neither granted nor taken any loans, secured or
 unsecured, to or from companies, firms or other parties covered in the
 register maintained under Section 301 of the Companies Act, 1956.
 
 4.  In our opinion and according to the information and explanations
 given to us, and having regard to the explanation that purchases of
 certain items of inventories are for the Company''s specialised
 requirements and suitable alternative sources are not available to
 obtain comparable quotations, there is an adequate internal control
 system commensurate with the size of the Company and the nature of its
 business with regard to purchase of inventories and fixed assets and
 with regard to the sale of goods and services. We have not observed any
 major weakness in the internal control system during the course of the
 audit.
 
 5.  In our opinion, and according to the information and explanations
 given to us, there are no contracts and arrangements the particulars of
 which need to be entered into the register maintained under section 301
 of the Companies Act, 1956.
 
 6.  The Company has not accepted any deposits from the public.
 
 7.  In our opinion, the Company has an internal audit system
 commensurate with the size and nature of its business.
 
 8.  We have broadly reviewed the books of account maintained by the
 Company pursuant to the rules prescribed by the Central Government for
 maintenance of cost records under Section 209(1 )(d) of the Companies
 Act, 1956 in respect of resins (excluding natural resins) and varnishes
 and are of the opinion that prima facie, the prescribed accounts and
 records have been made and maintained. However, we have not made a
 detailed examination of the records.
 
 9.  (a) According to the information and explanations given to us and
 on the basis of our examination of the records of the Company, amounts 
 deducted / accrued in the books of account in respect of undisputed
 statutory dues including Provident Fund, Employees'' State Insurance, 
 Income-tax, Wealth tax, Sales-tax, Service tax, Customs duty, Excise 
 duty, Cess, Investor Education and Protection Fund and other material 
 statutory dues have been regularly deposited by the Company with the 
 appropriate authorities.
 
 According to the information and explanations given to us, no
 undisputed amounts payable in respect of Provident Fund, Employees''
 State Insurance, Income tax, Sales tax, Wealth tax, Service tax,
 Customs duty, Excise duty, Cess, Investor Education and Protection Fund
 and other material statutory dues were in arrears as at 31 December
 2011 for a period of more than six months from the date they became
 payable.
 
 (b) According to the information and explanations given to us, there
 are no dues of Income-tax, Sales tax, Wealth tax, Service tax, Custom
 duty, Excise duty and Cess, other than the dues listed in Appendix I,
 which have not been deposited by the Company on account of disputes.
 
 10.  The Company does not have any accumulated losses at the end of the
 financial year and has not incurred cash losses in the financial year
 and in the immediately preceding financial year.
 
 11.  The Company did not have any outstanding dues to any financial
 institution, banks or debenture holders during the year.
 
 12.  The Company has not granted any loans and advances on the basis of
 security by way of pledge of shares, debentures and other securities.
 
 13.  In our opinion and according to the information and explanations
 given to us, the Company is not a chit fund or a nidhi / mutual benefit
 fund/society.
 
 14.  According to the information and explanations given to us, the
 Company is not dealing or trading in shares, securities, debentures and
 other investments.
 
 Annexure to Auditors'' Report - 31 December 2011 (Continued)
 
 15.  According to the information and explanations given to us, the
 Company has not given any guarantee for loans taken by others from banks
 Or financial institutions.
 
 16.  The Company did not have any term loans outstanding during the
 year.
 
 17.  According to the information and explanations given to us and on
 an overall examination of the Balance Sheet of the Company, we are of
 the opinion that the funds raised on short-term basis have not been
 used for long-term investment.
 
 18.  The Company has not made any preferential allotment of shares to
 companies, firms or parties 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 by public issues.
 
 21.  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 B S R & Co.
  
                                  Firm Registration No. 101248W
 
                                          Chartered Accountants
 
                                                Juzer Miyajiwala
 
 Pune                                                   Partner
 
 21 February 2012                        Membership No.: 047483