1.  We have audited the attached Balance Sheet of Fusion Fittings
 (India ) Ltd as at 31st March, 2011 together with the Profit & Loss
 Account and 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 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 the 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, 2003 issued
 by the central Government of India in terms of sub-section (4A) of
 section 227 of the companies Act, 1956, we give 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:
 
 a) 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;
 
 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;
 
 d) In our opinion, the Balance Sheet, 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 the 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 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.
 
 f) In our opinion and to the best of our information and according to
 the explanations given to us, the Balance Sheet and the Profit & Loss
 Account read with the Schedules and Notes thereon, 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, 2011;
 
 ii) in the case of the Profit and Loss Account, of the profit for the
 year ended on that date; and
 
 iii) 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 the Auditor''s Report of even
 date to the Members of Fusion Fittings (India) Ltd for the year ended
 31st March, 2011.
 
 1 (a) The company has 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 during the year in a phased periodical manner, which
 in our opinion is reasonable having regard to the size of the company
 and nature of its assets. No material discrepancies between the book
 records and the physical inventory were noticed in respect of the
 assets physically verified.
 
 (c) In our opinion, the company has not disposed of substantial part of
 fixed assets during the year and the going concern status of the
 company is not affected.
 
 2 The company had no inventory.
 
 3 The company has not granted or taken any loans, secured or unsecured,
 to any company, firm or other party 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, there are adequate internal control systems commensurate
 with the size of the company and the nature of its business with regard
 to purchase of inventory and fixed assets and for the sale of goods and
 services. During the course of our audit, no major weakness has been
 noticed in the internal control system in respect of these areas.
 
 5 (a) According to the information and explanations given to us, we are
 of the opinion, that the transactions that needed 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 explanations
 given to us, the transactions made in pursuance of contracts or
 arrangement entered in the register maintained under section 301 of the
 companies Act,1956 exceeding the value of Rupees five lakhs 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 The company has not accepted any deposits from the public to which
 the provisions of Section 58A & Section 58AA or any other relevant
 provisions of the companies Act, 1956 and the Rules framed there under
 apply.
 
 7 The Company did not have any internal audit system.
 
 8 To the best of our knowledge and according to the information and
 explanations given to us, the central Government has not prescribed the
 maintenance of cost records under Section 209(1) (d) of the companies
 Act, 1956.
 
 9 (i) Undisputed statutory dues including Provident Fund, Investor
 Education and Protection Fund, Employees State Insurance, Income Tax,
 Sales Tax, Wealth Tax, Service Tax, custom Duty, Excise Duty, cess have
 been regularly deposited with the appropriate authorities.
 
 (ii) According to the information and explanations given to us, no
 undisputed amounts payable in respect of Income-Tax, Sales-Tax, Wealth
 Tax, Service Tax, custom Duty, Excise Duty and cess were outstanding at
 the year end for a period of more than six months from the date they
 became payable.
 
 (iii) According to the record of the company and information and
 explanation given to us, there were no disputed dues outstanding as at
 31st March, 2011 in respect of Sales Tax, Income Tax, custom Duty,
 Wealth Tax, Service Tax, Excise Duty and cess.
 
 10 The company has no accumulated losses as at 31st March 2011. The
 company has not incurred cash losses during the year nor in the
 immediately preceding financial year.
 
 11 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, bank or debenture holder.
 
 12 According to the information and explanations given to us, 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, the company is not a chit fund or a nidhi/ mutual
 benefit fund/society. Therefore, the provisions of clause 4(xiii) of
 the companies (Auditor''s Report) Order, 2003 are not applicable to the
 company.
 
 14 In our opinion, the company is not dealing in or trading in shares,
 securities, debentures and other investments.  Accordingly, the
 provisions of clause 4(xiv) of the companies (Auditor''s Report) Order,
 2003 are not applicable to the company.
 
 15 In our opinion and according to the information and explanation
 given to us, the term and conditions on which the company has given
 guarantees for loans taken by others from banks or financial
 institutions are not prejudicial to the interest of the company.
 
 16 The company has not raised any term loan during the year.
 
 17 According to the information and explanations 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 investments.
 
 18 The company has not made any preferential allotment of shares to
 parties or companies covered in the register maintained under section
 301 of the companies Act, 1956, during the year.
 
 19 No secured debenture were issued by the company.  Therefore, no
 securities have been created.
 
 20 The company has not raised any money by a public issue during the
 year.
 
 21 According to the information and explanation given to us, no fraud
 on or by the company has been noticed or reported during the year.
 
                                                   For K. K. Jain & Co.
                                                  chartered Accountants
                                          Firm Registration No. 002465N
 
                                                                   Sd/-
                                                         (R. K. Mittal)
                                                   Partner M. No. 95459
 
 Place : Delhi
 Date  : 28 May, 2011