We have audited the attached Balance Sheet of Kabra Extrusiontechnik
 Ltd (the Company) as at 31st March, 2012, the Statement of Profit and
 Loss for the year ended on that date annexed thereto and the Cash Flow
 Statement for the year ended on that date, which we have signed under
 reference to this report. 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 as
 amended by the Companies (Auditor''s Report) (Amendment) Order, 2004,
 issued by the Central Government of India in terms of sub-section (4A)
 of Section 227 of the Companies Act, 1956 and on the basis of such
 checks as we considered appropriate and according to the information
 and explanations given to us, we give in the Annexure a statement on
 the matters specified in paragraphs 4 and 5 of the Order.
 
 2.  Further to our comments in the Annexure referred to in paragraph
 (1) 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 account as required by law have been
 kept by the Company so far as it appears from our examination of such
 books;
 
 c) the Balance Sheet, Statement of Profit and Loss and the Cash Flow
 Statement dealt with by this report are in agreement with the books of
 account;
 
 d) so far as it appears from our scrutiny of books of account and other
 records, we are of the opinion that the Balance Sheet, Statement of
 Profit and Loss 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;
 
 e) on the basis of the written representations received from the
 directors as on March 31, 2012 and taken on record by the Board of
 Directors, none of the directors is disqualified as on March 31,2012
 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 said accounts, read together with the
 notes thereon 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 the affairs of the
 Company as at 31st March, 2012; 
 
 ii) in the case of the Statement of Profit and Loss, 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 referred to in paragraph 1 of our report of even date
 addressed to the Members of Kabra ExtrusionTechnik Ltd, on the
 financial statements for the year ended March 31,2012.
 
 (i) (a) The Company has maintained proper records showing full
 particulars including quantitative details and situation of its fixed
 assets.
 
 (b) As explained to us, fixed assets are physically verified by the
 management at reasonable intervals, in a phased verification programme,
 which, in our opinion, is reasonable, looking at the size of the
 company and nature of its business.
 
 (c) During the year, the Company has disposed some of its fixed assets.
 In our opinion and according to the information and explanations given
 to us, fixed assets disposed off were not substantial and therefore has
 not affected the going concern assumption.
 
 (ii) (a) The inventory has been physically verified during the year by
 the management. In our opinion, the frequency of verification is
 reasonable and adequate, considering the size of the company and the
 nature of its business.
 
 (b) The procedures of 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 physical verification of inventory as compared
 to the book records have been properly dealt with in the books of
 accounts.
 
 (iii) (a) The Company has not granted any loan, secured or unsecured,
 to Companies, firms or other parties covered in the register maintained
 under Section 301 of the Companies Act, 1956.
 
 (b) As the Company has not granted any loan, clauses (b) to (d) of
 paragraph 4 (iii) are not applicable.
 
 (c) The Company has accepted unsecured loan, from 3 parties covered in
 the register maintained under Section 301 of the Companies Act. 1956.
 The Maximum amount outstanding at any time during the year was Rs.
 4,11,50,000/- and the year-end Balance is Rs. 23,66,274/- (including
 interest).
 
 (d) In our opinion and according to information and explanations given
 to us, the rate of interest and other terms and conditions of loan
 accepted by the company, are not prima facie prejudicial to the
 interest of the company.
 
 (e) The principle & interest is repayable as per agreed terms and there
 are no overdue amounts in respect of said loans and interest there on.
 
 (iv) In our opinion and according to the information and explanations
 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 purchase of inventory and fixed assets and for
 the sale of goods and service. We have neither come across nor have
 been informed of any major weaknesses in the internal control system in
 the aforesaid areas.
 
 (v) (a) In our opinion and according to the information and
 explanations given to us, the particulars of contracts or arrangements
 that are required to be entered in the register in pursuance of Section
 301 of the Companies Act, 1956 have been so entered.  
 
 (b) In our opinion and according to information and explanations given
 to us, the transactions 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 Rs. Five Lacs with any parties
 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 deposits from the public.
 Accordingly, paragraph 4(vi) of the Order (as amended) is not
 applicable.
 
 (vii) On the basis of internal audit reports broadly reviewed by us, we
 are of the opinion that, the company has an adequate internal audit
 system commensurate with the size and nature of its business.
 
 (viii) We have broadly reviewed the cost records maintained by the
 Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
 prescribed by the Central Government under Section 209(1 )(d) of the
 Companies Act, 1956 and are of the opinion that prima facie the
 prescribed cost records have been maintained. We have, however, not
 made a detailed examination of the cost records with a view to
 determine whether they are accurate or complete.
 
 (ix) (a) According to records of the company undisputed statutory dues
 including provident fund, Investors Education and Protection Fund,
 Employees'' State insurance, Income-Tax, Sales tax, Wealth tax, Service
 tax, Customs Duty, Cess and other statutory dues have been generally
 regularly deposited with the appropriate authorities. According to the
 information and explanation given to us, no undisputed amounts payable
 in respect of aforesaid dues were outstanding as at March 31, 2012 for
 the period of more than six months from the date of becoming payable.
 (b) The disputed statutory dues aggregating Rs. 142.37 lacs that have
 not been deposited on account of disputed matters pending before
 appropriate authorities are as under
 
 
 Sr.  Name of the   Nature of     Amount   Period for   Forum where 
 No.  Statute       the dues     (Rs. in   which the    the dispute
                                   lacs)   amount       is pending
                                           relates  
                           
 1.   Finance Act   Service Tax   142.37   Various      Commissioner
      1994                                 years from   of Central
                                           2006-07 to   excise
                                           2010-11      (appeals)
 
 
 (x) The Company has no accumulated losses and has not incurred any cash
 losses during the financial year covered by our audit or in immediately
 preceding financial year.
 
 (xi) In our opinion and according to the information and explanations
 given to us, the Company has not defaulted in repayment of dues to any
 financial institution or bank.
 
 (xii) According to the information and explanations given to us and
 based on the documents and records produced 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. Accordingly, the provision of
 clause 4(xii) of the Order (as amended) is not applicable. 
 
 (xiii) 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. Therefore, the provisions of clause 4 (xiii) of the
 Order (as amended) are not applicable.  
 
 (xiv) In our opinion and according to the information and explanations
 given to us, the Company is not dealing in or trading in shares,
 securities, debentures and other investments. Accordingly, the
 provisions of clause 4 (xiv) of the Order (as amended) is not
 applicable.
 
 (xv) In our opinion and according to the information and explanations
 given to us, the Company has not given guarantees for loans taken by
 others from banks or financial institutions.
 
 (xvi) In our opinion, the term loans have been applied for the purpose
 for which they were raised.  
 
 (xvii) According to the information and explanations given to us, and
 on an overall examination of the Balance Sheet of the Company, we
 report that no funds raised on short-term basis have been used for
 long-term investment.
 
 (xviii) According to the information and explanations given to us, the
 Company has not made preferential allotment of shares to parties and
 companies covered in the register maintained under section 301 of the
 Companies Act, 1956. Accordingly, paragraph 4(xviii) of the Order (as
 amended) is not applicable.
 
 (xix) According to the information and explanations given to us, during
 the year, the company has not issued debentures. Accordingly,
 paragraph 4(xix) of the Order (as amended) is not applicable. 
 
 (xx) As the Company has not raised any money by way of public issue,
 disclosure requirement of the end use of money raised by public issue
 does not apply to the Company.
 
 (xxi) During the course of our examination of the books and records of
 the Company 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 course of our audit, nor we
 have been informed of such case by the Management
 
 
                                                 FOR KIRTANE & PANDIT
 
                                                Chartered Accountants
                                                        (FRN-105215W)
 
                                                     PARAG P. PANSARE
                                                              Partner
                                               Membership No.: 117309
 
 Place : Mumbai
 Date :29th May, 2012