We have audited the attached Balance Sheet of M/s Nahar Poly Films
 Limited, Ludhiana (the Company) as at 31st March, 2012 and also
 statement of Profit & Loss 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.
 
 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.
 
 As required by the Companies (Auditor''s Report) Order, 2003, as
 amended by the Companies (Auditor''s Report) (Amendment) Order, 2004
 (together the ''order''), issued by the Central Government of India
 in terms of Section 227(4A) of the Act, 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 paragraph 4 and 5 of the said order to the extent
 applicable to the company.
 
 Further to our comments in the Annexure referred to above, we report
 that:
 
 i) 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.
 
 ii) 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
 those books.
 
 iii) The Balance Sheet, statement of Profit & Loss and Cash Flow
 Statement dealt with by this report are in agreement with the books of
 account.
 
 iv) In our opinion, the Balance Sheet, statement of Profit & Loss and
 Cash Flow statement dealt with by this report comply with the mandatory
 accounting standards referred to in subsection (3C) of Section 211 of
 the Companies Act, 1956 to the extent applicable.
 
 v) On the basis of written representations received from the Directors
 as on 31st March, 2012 and taken on record by the Board of Directors,
 we report that none of the Directors is disqualified as on 31st March,
 2012 from being appointed as a Director in terms of clause (g) of
 sub-section (i) of section 274 of the Companies Act, 1956.
 
 vi) 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
 Accounting Policies & Notes on Accounts, 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:
 
 a) In the case of the Balance Sheet, of the state of affairs of the
 Company as at 31st March, 2012;
 
 b) In the case of the statement of Profit & Loss, of the profit/loss
 for the year ended on that date; and
 
 c) In the case of the Cash Flow Statement, the Cash Flow of the Company
 for the year ended on that date.
 
 ANNEXURE TO AUDITOR''S REPORT
 
 (Referred to in paragraph (3) thereof)
 
 i) a) The Company has maintained proper records showing
 
 full particulars including quantitative details and situation of fixed
 assets.
 
 b) All the fixed assets have been physically verified by the management
 during the year. In our opinion the frequency of physical verification
 is reasonable and no material discrepancy were noticed on such
 verification.
 
 c) No substantial part of fixed assets has been disposed off during the
 year.
 
 ii) a) The inventory has been physically verified during the year by
 the management. In our opinion, the frequency of verification is
 reasonable.
 
 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 its nature of business.
 
 c) On the bases of our examination of the records of inventory, we are
 of the opinion that the Company is maintaining proper records of
 inventory. As explained to us, no discrepancies were noticed on
 verification between physical stock and the book records.
 
 iii) According to the explanation and information given to us, the
 company has neither granted nor taken any loan from the parties covered
 in the Register maintained under section 301 of the Companies Act,
 1956. Hence, clause 4(iii)(a) to (g) of the Companies (Audit Report)
 order, 2003 are not applicable in case of the company.
 
 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 nature of its business
 with regard to purchase of inventory and fixed assets. The provisions
 regarding sale of goods and services are not applicable to the Company.
 During the course of our audit, we have not observed any major
 weaknesses in internal control.
 
 v) a) In our opinion and according to the information and explanations
 given to us, we are of the opinion that the transactions made in
 pursuance of contracts or arrangements that need to be entered in 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 and
 arrangements entered in the register maintained under section 301 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 Public.  Hence, the
 clause 4(vi) of the order is not applicable to the company.
 
 vii) In our opinion, the company has internal audit system commensurate
 with its size and nature of its business.
 
 viii) To the best of our knowledge and according to information given
 to us, the company is no longer covered under the provisions of Section
 201(1)(d) of the Companies Act, 1956.  Therefore, the provisions of
 clause 4(viii) of the order are not applicable to the Company.
 
 ix) a) According to the records of the company, undisputed statutory
 dues including provident fund, investor education and protection fund,
 employees state insurance, income tax, sales tax, wealth tax, service
 tax and other material statutory dues applicable to the company, if
 any, have been regularly deposited with appropriate authorities.
 
 According to the information and explanations given to us, undisputed
 amounts payable in respect of above dues were not in arrears, as at
 31st March, 2012 for a period of more than six months from the date
 they become payable.
 
 b) According to the information and explanations given to us, there is
 no dues sales tax, income tax, custom duty, wealth tax, service tax,
 excise duty and cess which have not been deposited on account of any
 disputes with the appropriate authorities.
 
 x) The company does not have any accumulated losses at the end of the
 financial year and has not incurred cash losses in the financial year
 and in the financial year immediately preceding such financial year.
 
 xi) In our opinion and according to the information and explanations
 given to us, the Company has not defaulted in repayment of loans taken
 from banks and financial institutions.
 
 xii) In our opinion and 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.  Therefore, the provisions of clause 4(xii) of the 
 Companies (Auditors'' Report) Order, 2003 are not applicable to the 
 company.
 
 xiii) 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 respect of dealing in investments and shares, in our opinion
 and according to the information and explanations given to us, proper
 records have been maintained of the investments and timely entries have
 been made therein. The shares and other investments have been held by
 the company in its own name.
 
 xv) As per the information and explanations given to us, we are of the
 opinion that the terms and conditions at which guarantees have been
 given by the company for loans taken from financial institutions and/or
 banks by others, are not prejudicial to the interest of the company.
 
 xvi) Based on the information & explanations given to us by the
 management, we are of the opinion that the loans taken were applied for
 the purpose they are obtained.
 
 xvii)According to the information and explanations given to us and on
 an overall examination of the Balance Sheet of the Company, we are of
 the opinion that there no funds raised on short-term basis that have
 been used for long-term investment.
 
 xviii)During the year, 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. Hence clause
 4(xviii) of the order is not applicable.
 
 xix) The company has not issued debentures during the year.  Therefore,
 the provisions of clause 4(xix) of the Companies (Auditor''s Report)
 Order, 2003 are not applicable to the company.
 
 xx) The company has not raised money by way of public issue during the
 year. Therefore, the provisions of clause 4(xx) of the Companies
 (Auditors'' Report) Order, 2003 are not applicable to the company.
 
 xxi) 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 GUPTA VIGG & CO.
 
                                                 Chartered Accountants
                                                           FRN 001393N
 
 Place : Ludhiana                                       VIPAN KR GUPTA
 
 Dated : 30.05.2012                                          (Partner)
 
                                                          M.No.:502737