Kabra Extrusion Technik

We have audited the attached Balance Sheet of Kabra Extrusiontechnik
 Limited, as at 31s March, 2009 and also the Profit and Loss Account of
 the Company and Cash Flow Statement for the year ended on that date
 annexed thereto. These financial statements are the responsibility of
 the Companys 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 Companies (Auditors Report) Order 2003, issued by
 the Central Government in terms of section 227(4A) of the Companies
 Act, 1956, we enclose in the annexure a statement on the matters
 specified in the para 4 & 5 of the said order to the extent applicable.
 
 2.  Further to our comments in the annexure referred to in para 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 accounts as required by law have
 been kept by the Company so far as it appears from our examination of
 these Books;
 
 c.  The Balance Sheet and the Profit & Loss Account and Cash Flow
 Statement dealt with by this report are in agreement with the Books of
 Accounts;
 
 d.  In our opinion, the Balance Sheet and Profit & Loss Account and
 Cash Flow Statement comply with the Accounting Standards referred to in
 subsection (3C) of section 211 of the Companies Act, 1956 to the extent
 applicable;
 
 e.  On the basis of written representations received from the Directors
 as on 31st March, 2009, and taken on record by the Board of Directors,
 we report that none of the directors is disqualified as on 31st March,
 2009 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
 explanations given to us, the said accounts read together with notes
 thereon give the information required under 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 Balance Sheet, of the state of affairs of the Company
    as at 31st March, 2009; and 
 ii) In the case of the Profit & Loss Account, of the profit for the 
      year ended on that date; and 
 iii) In the case of Cash Flow Statement, of the cash flows for the 
    year ended as on that date.
 
 ANNEXURE TO THE AUDITORS REPORT
 
 (i) (a) The company has maintained proper records showing full
 particulars including quantitative details and situation of fixed
 assets.
 
 (b) All the assets have been physically verified by the management
 during the year. No material discrepancies were noticed on such
 verification. In our opinion the frequency of physical verification of
 fixed assets is reasonable.
 
 (c) During the year, the company has not disposed off a major part of
 the fixed assets.
 
 (ii) (a) The inventory has been physically verified during the year by
 the management. In our opinion, the frequency of verification is
 reasonable.
 
 (b) In our opinion and according to the information and explanations
 given to us the procedures of physical verification of inventory
 foliowed by the management are reasonable and adequate, considering 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 physical stocks & book
 stocks were not material & the same have been properly dealt with in
 books of accounts.
 
 (iii) (a) The Company had not taken any loans from parties covered in
 the register maintained under section 301 of the Companies Act, 1956,
 however the Company has granted inter corporate deposits / loans. The
 amount involved during the year was Rs. 5,80,00,000/- and the year-end
 balance of loans granted to such party was Rs. 55,00,000/- The maximum
 balance outstanding was Rs. 5,80,00,000/-
 
 (b) In our opinion, the rate of interest and other terms and conditions
 on which loans/inter corporate deposits have been granted to companies,
 firms or other parties listed in the register maintained under section
 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the
 interest of the company.
 
 (c) The parties have repaid the principal amounts as stipulated and
 have been regular in the payment of interest.
 
 (d) There is no overdue amount of loans granted to companies, firms or
 other parties listed in the register maintained under section 301 of
 the Companies Act, 1956.
 
 (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, fixed asset and with
 regard to the sale of goods. During the course of our audit, we have
 not observed any continuing failure to correct major weaknesses in
 internal controls.  
 
 (v) (a) According to the information and explanations given to us, we
 are of the opinion that the transactions that need 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
 arrangements entered in the register maintained under Section 301 of
 the Companies Act,1956 and exceeding the value of Rs. 5,00,000 in
 respect of each party during the year are either have been made at
 prices which are reasonable having regard to prevailing market prices
 at the relevant time or the prices at which transactions for similar
 goods or services have been made with other parties or as compared to
 the prices quoted by others, or such comparisons could not be made
 since there are no other suppliers of similar items.  
 
 (vi) The Company has not accepted any deposit from the public.  
 
 (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) The Central Government has not prescribed for maintenance of
 cost records under section 209(1) (d) of the Companies Act, 1956 for
 any of the products of the company.
 
 (ix) (a) According to the records of the company ,the company is
 regular in depositing with appropriate authorities undisputed statutory
 dues including provident fund, investor education and protection fund ,
 employees state insurance , income tax, sales tax /VAT, wealth tax,
 custom duty , cess and other material statutory dues applicable to it.
 According to the information and explanations given to us, there are no
 arrears of statutory dues which have remained outstanding as at 31st
 March 2009 for a period of more than six months from the date they
 became payable.
 
 (b) As set out in note no. 6(b) of schedule 18, dues of service tax &
 excise duty have not been deposited on account of various disputes.  
 
 (x) There are no accumulated losses of the company.  The Company has
 not incurred cash losses during the financial year covered by our audit
 and the 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 a
 financial institution, bank or debenture holders.
 
 (xii) According to the information and explanations 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, the company is not a chit fund or a nidhi/
 mutual benefit fund/society.  Therefore, the provisions of clause
 4(xiii) of the Companies (Auditors Report) Order, 2003, are not
 applicable to the Company.
 
 (xiv) 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 (Auditors Report) Order,
 2003, are not applicable to the Company.  
 
 (xv) According to the information and explanation given to us, the
 Company has not given guarantees for loans taken by others from banks
 or financial institutions.
 
 (xvi) According to the information & explanation given to us, term
 loans were applied for the purpose for which loans were obtained.
 
 (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 the no funds raised on short-term basis have been used for
 long-term Investment and vice versa.
 
 (xviii) According to the information and explanations given to us, the
 Company has not made preferential allotment of shares to the parties
 and companies covered in the register maintained under section 301 of
 the Act.
 
 (xix) According to the information and explanations given to us during
 the period covered by audit report, the Company had not issued
 debentures.
 
 (xx) The Company has not made public issue during the year.
 
 (xxi) 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 audit.
 
                                                    For A.G.OGALE & CO.,
                                                   Chartered Accountants
 
                                                               A.G.OGALE
 Date : 26,h May, 2009                                        Proprietor
 Place : Mumbai                                    Membership No.: 34540