1.  We have audited the attached Balance Sheet of FLUIDOMAT LIMITED
 (the Company) as at 31st March, 2011 and the Profit & Loss Account
 and also 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.
 
 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 also
 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, 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.
 
 4.  Further to our comments in the Annexure referred to in paragraph 3
 above, we report that:
 
 (i) 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;
 
 (ii) 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;
 
 (iii) The Balance Sheet, Profit & Loss Account and Cash flow statement
 dealt with by this report are in agreement with the books of accounts; 
 
 (iv) In our opinion, the Balance Sheet, Profit & 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 representations 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 were 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 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 read together with
 notes appearing in schedule of significant Accounting Policies and
 Notes on 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 Balance Sheet, of the state of affairs of the
 Company as at 31st March, 2011; and
 
 (b) In case of the Profit & Loss Account, of the PROFIT 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 Auditors Report of Fluid mat Ltd. for the year ended
 31.3.2011
 
 (Referred to in paragraph 3 of our report of even date) (i) In respect
 of the company''s fixed assets:
 
 (a) The company has generally maintained proper records showing full
 particulars, including quantitative details and situation of fixed
 assets;
 
 (b) As explained to us, the fixed assets have been physically verified
 by the management in accordance with a phased programme of
 verification, which in our opinion is reasonable, considering the size
 and nature of its business. No material discrepancies were noticed on
 such verification as compared with the available records.
 
 (c) In our opinion and according to the information and explanations
 given to us, the company has not made any substantial disposal of fixed
 assets during the year and going concern status of the company is not
 affected.
 
 (ii) In respect of its inventories:
 
 (a) As explained to us, physical verification of inventory has been
 conducted at reasonable intervals by the management.
 
 (b) In our opinion and according to the information and explanations
 given to us, 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) According to the information and explanations given to us and on
 the basis of our examination of inventory records, we are of the
 opinion that the company is maintaining proper records of inventory.
 As explained to us, discrepancies noticed on physical verification of
 the inventories between the physical inventories and book records were
 not material, having regard to the size of the operations of the
 Company, and the same have been properly dealt with.
 
 (iii) According to the information and explanations given to us, the
 company has neither taken nor granted any loans, secured or unsecured,
 from / to companies, firms or other parties covered in the register
 maintained under section 301 of the Companies Act, 1956. Therefore, the
 provisions of clause 4 (iii) of the Companies (Auditors'' Report) Order,
 2003 are not applicable to the company.
 
 (iv) In our opinion and according to the information and explanations
 given to us, there is adequate internal control procedure commensurate
 with the size of the company and the nature of its business, for the
 purchase of inventory and fixed assets and for the sale of goods.
 During the course of Audit we observed no continuing failure to correct
 major weaknesses in internal control.
 
 (v) (a) According to the information and explanations given to us, we
 observed the transactions that need to be entered into a register in
 pursuance of section 301 of the Act have been so entered.
 
 (b) According to the information and explanations given to us, we
 observed that these transactions have been made at prices which are
 reasonable having regard to the prevailing market prices at the
 relevant time, though no such transaction was of the value exceeding
 Rupee Five Lakhs.
 
 (vi) In our opinion and according to the information and explanations
 given to us, the company has not accepted deposits from the public
 within the meaning of the provisions of sections 58 and 58AA or any
 other relevant provisions of the Companies Act, 1956 and the Companies
 (Acceptance of Deposits ) Rules, 1975.
 
 (vii) In our opinion and according to the information and explanations
 given to us, the company has an internal audit system commensurate with
 its size and nature of its business.
 
 (viii) To the best of our knowledge and as per explanation given to us,
 maintenance of cost records has not been prescribed by the Central
 Government under clause (d) of sub-section (1) of section 209 of the
 Act for the products of the company;
 
 (ix) According to the records of the Company, the company has been
 generally regular in depositing undisputed statutory dues including
 Provident Fund, Employees'' State Insurance, Income-tax, Sales-tax,
 Custom Duty, Excise Duty, cess and any other statutory dues with the
 appropriate authorities though there has been delay in a payment of
 Sales Tax. The extent of the arrears of outstanding statutory dues as
 at the last day of the financial year concerned for a period of more
 than six months from the date they became payable, are in aggregate of
 Rs.13,61,136/- (Commercial Tax (Vat), Central Sales Tax & Entry Tax ).
 
 According to the records of the Company, there are no dues outstanding
 of custom tax / wealth tax / excise duty / cess etc. on account of any
 dispute except the following:
 
 Nature of         Period to which          Forum where 
                                            matter is            Amount
 Dues              the amount relates       pending          (In Rupees)
 
 Sales Tax         1996-97 & 2007-08    The Commissioner 
                                        M.P. Com.               2,81,882
                                        Tax Appellate 
                                        Board, Bhopal &
                                        Deputy Commissioner
                                        M.P. Com. Tax division
                                        III Indore
 
 (x) The Company has no accumulated losses as at 31st March, 2011 and
 has not incurred any cash losses in the financial year ended on that
 date or in the immediately preceding financial year.
 
 (xi) In our opinion and according to the information and explanation
 given to us, the company has not defaulted in repayment of dues to
 Financial Institutions, Banks or Debenture holders as at the Balance
 Sheet date.
 
 (xii) In our opinion and according to the information and explanation
 given to us, the company has not granted loans and advances on the
 basis of security by way of pledge of shares, debentures and other
 securities.
 
 (xiii) In our opinion and according to the information and explanation
 given to us, the company is not a chit fund or a nidhi or mutual
 benefit societies. Therefore the provisions of clause 4 (xiii) of the
 Companies (Auditors'' Report) Order 2003 are not applicable to the
 company.
 
 (xiv) In our opinion and according to the information and explanation
 given to us, the company is not dealing in or trading in Shares,
 Securities, Debentures and other investments. Therefore the provisions
 of clause 4 (xiv) of the Companies {Auditors'' Report} Order 2003 are
 not applicable to the company;
 
 (xv) In our opinion and according to the information and explanations
 given to us, the company has not given any guarantee for loans taken by
 others from bank or financial institutions.
 
 (xvi) According to the information and explanation given to us and on
 an overall examination of the Balance Sheet and cash flow statement of
 the company, we report that no funds raised on short term basis have
 been used for long term investment and vice versa (excluding permanent
 working capital).
 
 (xvii) During the year the company has not made any preferential
 allotment of shares to parties and companies covered in the Register
 maintained under section 301 of the Companies Act, 1956.
 
 (xviii) The Company has not issued any debentures during the year.
 
 (xix) No money has been raised through the Public Issue during the year
 under Audit.
 
 (xx) During the course of our examination of the books & 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 instance of fraud on or by
 the company noticed or reported during the year, nor have we been
 informed of such case by the management.
 
                                            For J.P. Saraf & Company
                                               Chartered Accountants
 
 Place   : INDORE
 
 Date    : This 28th Day of May, 2011                   (J.P. SARAF)
 
                                                            Partner
 
                                            Membership No. : 075319
 
                                                 Firm No. : 006430C