1) We have audited the attached Balance Sheet of- MEENAKSHI STEEL
 INDUSTRIES LIMITED as at 31st March, 2007 and also 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 Companys 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 misstatements.  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.
 
 3) As required by the Companies (Auditors Report) Order, 2003 issued
 by the Company Law Board in terms of Section 227 (4A) of the Companies
 Act, 1956 and in terms of the information and explanations given to us
 and also on the basis of such checks, as we considered appropriate we
 set out in the Annexure, a statement on the matters specified in
 paragraphs 4 & 5 of the said Order.
 
 4) Further to our comments in Annexure referred to in paragraph 3 above
 we report that: -
 
 a) We have obtained all the information and explanation, 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 those
 books;
 
 c) The Balance Sheet, 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, Profit & Loss Account and Cash
 Flow Statement have been prepared, in all material respects in
 compliance with the Accounting Standards referred to in Section 211(3C)
 of the Companies Act, 1956.
 
 e) On the basis of the written representations received from the
 Directors as on 31st March, 2007, and taken on the record by the E3oard
 of Directors, we report that none of the Directors is disqualified as
 on 31st March, 2007 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 the information required by the Companies Act, 1956, in
 the manner so required and also give subject to note no. 1 of Notes on
 Accounts regarding non-provision of stamp duty on purchase of freehold
 land, 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 2007;
 
 (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 Auditors Report
 
 (Referred to in paragraph 3 of our report of even date to the members
 of Meenakshi Steel Industries Limited for the year ended 31 ,,03.2007)
 
 1.  The Company does not have any fixed assets, therefore the question
 of maintenance of records, any material discrepancies on physical
 verification and disposal of the fixed asset, does not arise.
 
 2.  According to information and explanations given to us, during the
 year, the company does not have any trading activity and hence does not
 have any inventory. Therefore the question of physical verification,
 adequacy of procedures of physical verification and maintenance of
 proper records of inventories does not arise.
 
 3.  According to the information and explanations given us, the company
 has neither granted nor taken any loans, secured or unsecured, to/from
 companies, firms or other parties covered in the register maintained
 under section 301 of the Companies Act, 1956. Accordingly, the clauses
 4(iii) (b) to (g) of the Order is not applicable to the company.
 
 4.  In our opinion and according to the information and explanations
 given to us, it appears that there are adequate internal control system
 commensurate with the size of the Company and the nature of its
 business with regard to purchase of shares & securities and other
 assets, and for the sale of shares & securities and services. We have
 not observed any major weakness in the internal control system during
 the course of the audit.
 
 5.  According to the information and explanations given to us, during
 the year no contracts or arrangements referred to in section 301 of the
 Act, have been entered by the company. Accordingly, the Clause 4 (v)
 (b) of the order is also not applicable.
 
 6.  In our opinion and according to the information and explanations
 given to us, the Company has not accepted any deposit from public
 during the year, within the meaning of Section 58-A and 58AA and other
 relevant provisions of the Companies Act, 1956 and rules framed there
 under.
 
 7.  The Company does not have an internal audit system.
 
 8.  According to the information and explanations given to us, the
 maintenance of Cost records has not been prescribed by the Central
 Government under Section 209 (1) (d) of the Companies Act, 1956.
 
 9.  a) According to the records of the Company and information and
 explanations given to us, the Company has been regular in depositing
 undisputed statutory dues including Provident Fund, Employees State
 Insurance, Income tax, Sales-Tax, Wealth Tax, Custom Duty, Investor
 Education and Protection Fund, Excise Duty, Cess, service tax or any
 other statutory dues, wherever applicable, with the appropriate
 authorities and there were no arrears under the above heads which were
 due for more than six months from the date they became payable as at
 the close of the year.
 
 b) According to the information and explanations given to us and
 records of the company examined by us, the Company has disputed
 liability in respect of stamp duty and penalty raised by District
 Magistrate amounting to Rs. 9,64,935/- in respect of freehold lands
 purchased in the year 1992-93. However, the said land was disposed off
 in the year 2005-06.
 
 10.  The Company has no accumulated losses at the end of the financial
 year and has not incurred any cash losses in the current financial year
 and in the immediately preceding financial year.
 
 11.  No amounts were borrowed by the company from bank and through
 debentures or financial institutions. Therefore, question of default in
 repayment of dues of such borrowings does not arise.
 
 12.  The Company has not granted any loans or advances on the basis of
 security by way of pledge of shares, debentures or other securities.
 
 13.  The provisions of any Special Statute applicable to Chit Fund,
 Nidhi or Mutual Benefit Fund / Societies are not applicable to the
 company.
 
 14.  The Company has maintained proper records of transactions and
 contracts in respect of investments in shares, securities debentures
 and other investments and that timely entries have been made therein.
 The shares, securities debentures and other investments have been held
 by the Company in its own name except to the extent of the exemption
 granted under section 49(4) of the Companies Act, 1956.
 
 15.  According to the information and explanations given to us, the
 company has not given any guarantee for loans taken by others from
 banks and financial institutions.
 
 16.  The Company has not taken any terms loans during the year.
 
 17.  According to the cash flow statement and other records examined by
 us and the information and explanation given to us, on an overall
 basis, the Company has not raised any short funds during the year.
 Hence, the question of use of such fund for long term investments does
 not arise.
 
 18.  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 during the year.
 
 19.  The Company has not issued any Debentures and hence no securities
 or charges are required to be created in respect thereof.
 
 20.  The Company has not raised any money by way of public issues
 during the year.
 
 21.  On the basis of our examination and according to the information
 and explanations given to us, no fraud, on or by the Company, has been
 noticed or reported during the year.
 
                                           For VIJAY R. TATER & CO.
                                              Chartered Accountants
 Place : Mumbai
 Date  : 03-09-2007                             (Suresh G. Kothari)
                                                            Partner
                                               Membership No. 47625