We have audited the attached Balance Sheet of MONNET INDUSTRIES LIMITED
 as at 31st March, 2011 and Profit & Loss Account for the Year Ended 31st 
 March, 2011 annexed thereto and cash flow statement for the year
 ended on that date. 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 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.
 
 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 in terms of Section 227(4A) of the
 Companies Act, 1956, we enclose in the annexure a statement on the
 matters specified in the paragraphs 4 & 5 of the said order to the
 extent applicable to the Company.
 
 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 appears from our examination of such
 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
 account.
 
 d) In our opinion, the profit and loss account and balance sheet and
 Cash Flow Statement comply with the accounting standards referred to in
 sub-section (3c) of section 211 of the Companies Act, 1956.
 
 e) On the basis of written representation received from the directors
 and taken on records by the Board of Directors, we report that, none of
 the director is disqualified as on 31 st March, 2011 from being
 appointed as Director u/s 274(1)(g) 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
 Significant Accounting Policies and other Notes thereon in Schedule
 give the information as required by the Companies Act, 1956 in the
 manner so required and give true and fair view in conformity with
 accounting principles generally accepted in India :-
 
 i) In the case of the Balance Sheet of the State of affairs of the
 Company as at 31.03.2011.
 
 ii) In the case of the Profit & Loss Account of the profit for the Year
 Ended on that date.
 
 iii) In the case of Cash Flow Statement of the cash flows for the Year
 ended on that date.
 
 ANNEXURE REFERRED TO IN PARAGRAPH 1 OF THE AUDITORS'' REPORT ON ACCOUNTS
 FOR THE YEAR ENDED 31st MARCH 2011
 
 1.a)The Company has maintained proper records to show full particulars
 including quantitative details and situation of fixed assets.
 
 b) As explained to us, major fixed assets have been physically verified
 by the management during the year. We have been informed that the
 discrepancies noticed on such verification as compared to book record
 were not material and have been properly dealt with in the books of
 account. In our opinion the frequency of verification is reasonable.
 
 c) As the Company has not disposed off any of the fixed assets during
 the year, paragraph 4 (i) (c) of the said order is not applicable.
 
 2. The Company has no stocks during the year under audit.
 
 3. According to the information and explanations given to 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,
 paragraph 4 (iii) (b), (c) and (d) of the order are not applicable.
 
 4. 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 inventories, fixed assets and with regard to the sale of
 goods. During the course of audit, no major weakness has been noticed
 in the underlying internal controls.
 
 5. a) In our opinion and according to information and explanations
 given to us the transactions that needed to be entered in the register
 maintained under section 301 of the Act have been entered in the
 register.
 
 b) As per information and explanations given to us aforesaid
 transactions exceeding the aggregate amount of Rupees five lacs in
 respect of each Party made during the year, have been made at prices
 which are reasonable having regard to the prevailing market price at
 the relevant time.
 
 6. In our opinion and according to the information and explanations
 given to us, the Company has not accepted any deposits within the
 meaning of provisions of section 58A and 58AA of the Companies Act,
 1956 and the Companies (Acceptance of Deposits) Rules, 1975.
 
 7. In our opinion and according to the information and explanations
 given to us, the Company has adequate internal audit system
 commensurate with its size and nature of its business.
 
 8. We are informed that the Central Government has not prescribed the
 maintenance of cost records under section 209(1)(d) of the Companies
 Act, 1956.
 
 9. As per information and explanations given to us the Company has been
 regular in depositing the undisputed statutory dues including Provident
 Fund, Investor Education and Protection Fund, Employees State
 Insurance, Income Tax, Sales Tax, and other statutory dues with the
 appropriate Authorities. There are no undisputed statutory dues at the
 year end outstanding for a Year of more than six months from the date
 they become payable.
 
 10. The accumulated losses of the company as at the end of the year are
 less than the 50% of the net worth of the company. The company has not
 incurred cash loss during the year under audit and in the immediately
 preceding financial year.
 
 11. The Company has not granted any loans and advances on the basis of
 security by way of pledge of shares, debentures and other securities.
 Paragraph 4 (xii) of the order is not applicable.
 
 12. According to the information and explanations given to us, the
 company has not given any guarantees for loans taken by others from
 banks for financial institutions during the year.
 
 13. According to the information and explanations given to us the
 company has not taken any term loans during the year.
 
 14. During the year the Company has not made any preferential allotment
 of shares to parties and Companies covered in the Register maintained
 u/s 301 of the Companies Act 1956. As such paragraph 4 (xviii) of the
 order is not applicable.
 
 15.  Since the Company has not raised money by way of Public Issue
 during the year paragraph 4 (xx) of the order is not applicable.
 
 16. Based upon the audit procedures performed and information and
 explanations given by the management, we report that, no fraud on or by
 the Company has been noticed or reported during the course of our audit
 for the year ended 31.03.2011.
 
 17. Other clauses of the order are not applicable to the Company for
 the year under report.
 For O.P. BAGLA & CO.
 
 CHARTERED ACCOUNTANTS
 
 (RAKESH KUMAR)
 
 PARTNER
 
 MNo. 87537
 
 Firm Regn. No. 000018N
 
 PLACE : NEW DELHI
 
 DATED : 03/08/2011