1.  We have audited the attached Balance Sheet of Page Industries
 Limited as at 31st March 2012 and also the Statement of Profit and 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.
 
 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 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.
 
 3.  As required by the Companies (Auditor''s Report) Order, 2003, (as
 amended), issued by the Central Government of India in terms of
 sub-section (4A) of Section 227 of ''The Companies Act, 1956'' of
 India (the ''Act'') and on the basis of such checks of the books and
 records of the company 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 said
 Order.
 
 4.  Further to our comments in the Annexure referred to in paragraph 3
 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 purposes 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 and 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 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;
 
 v.  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, 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 (1) 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 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 and Loss, of the Profit for
 the year ended on that date; and
 
 c) in the case of Cash Flow Statement, of the cash flows for the year
 ended on that date.
 
 (i) (a) The Company has maintained proper records showing full
 particulars, including quantitative details and situation of fixed
 assets.
 
 (b) As explained to us, the Company has a regular program of physical
 verification of its fixed assets by which all fixed assets are verified
 in a phased manner over a period of 3 years, which in our opinion, is
 reasonable having regard to the size of the Company and the nature of
 its assets. Discrepancies identified on such verification have been
 properly dealt with in the books of accounts.
 
 (c) In our opinion and according to the information and explanations
 given to us, a substantial part of fixed assets has not been disposed
 of by the company during the year and the going concern status of the
 Company is not affected.
 
 (ii) (a) The inventory has been physically verified by the management
 during the year. In our opinion, the frequency of verification is
 reasonable.
 
 (b) In our opinion and according to the information and explanation
 given to us, the procedures of physical verification of inventory
 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 and as
 explained to us there were no material discrepancies noticed on
 physical verification carried out at the end of the year.
 
 (iii) (a)As informed, the Company has granted unsecured loan to one
 party covered in the register maintained under section 301 of the
 Companies Act, 1956. The maximum amount involved during the year was
 Rs. 29,558,714/- and the yearend balance of loans granted to such
 parties was Rs. 29,543,362/-.
 
 (b) In our opinion and according to the information and explanations
 given to us, the rate of interest and other terms and conditions for
 such loans are not, prima facie, prejudicial to the interest of the
 Company.
 
 (c) According to the information and explanation given to us there are
 no specific covenants with regard to repayment of the loan and the
 Company has not demanded repayment of loan during the year. Hence there
 is no overdue amount and there has been no default on the part of the
 party to whom the loan has been given. Accordingly, the sub- clause (d)
 of clause (iii) of paragraph 4 of the order is not applicable. The
 repayment of interest has been regular.
 
 (d) As informed, the Company has not taken any loan, secured or
 unsecured from companies, firms or other parties covered in the
 register maintained under section 301 of the Companies Act, 1956.
 Accordingly, the provisions stated in paragraph 4 (iii)(f)and (g) of 
 the order are not applicable.
 
 (iv) In our opinion and according to the information and explanations
 given to us, there exists an adequate internal control system
 commensurate with the size of the Company and the nature of its
 business with regard to purchase of inventory, fixed assets and with
 regard to the sale of goods and services. During the course of our
 audit, we have not observed any continuing failure to correct major
 weakness in internal control system of the company.
 
 (v) (a) 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 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, and having regard to the explanations that some of the
 items purchased, sold or services availed are of a special nature for
 which comparable alternative price are not available, the transactions
 made in pursuance of contracts or arrangements exceeding value of
 Rupees Five lakhs in respect of each party during the year have been
 made at prices which appear reasonable as per the information available
 with the company.
 
 (vi) The Company has not accepted any deposits from the public within
 the meaning of Sections 58A and 58AA of the Act and the rules framed
 there under.
 
 (vii) In our opinion, the Company has an internal audit system
 commensurate with the size and nature of its business.
 
 (viii)We have broadly reviewed the books of account maintained by the
 company in respect of products where, pursuant to the Rules made by the
 Central Government of India, the maintenance of cost records has been
 prescribed under clause (d) of sub-section (1) of Section 209 of the
 Act and we are of the opinion that prima facie, the prescribed accounts
 and records have been made and maintained. We have not, however, made a
 detailed examination of the records.
 
 (ix) (a) 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, wealth-tax, service tax, customs duty, excise
 duty, cess and other material statutory dues applicable to it.
 
 (b) According to the information and explanations given to us, no
 undisputed amounts payable in respect of provident fund, investor
 education and protection fund, employees'' state insurance, income-
 tax, wealth-tax, service tax, sales-tax, customs duty, excise duty,
 cess and other undisputed statutory dues were outstanding, at the year
 end, for a period of more than six months from the date they became
 payable.
 
 (c) According to the records of the Company, the dues outstanding of
 income-tax, sales- tax, wealth-tax, service tax, customs duty, excise
 duty and cess on account of any dispute, are as follows:
 
 Name       Nature        Amount*       Period to        Forum
 of the     of Dues         Rs.         which the        where
 Statute                                amount           dispute is
                                        relates          pending
 
 Income     Income        4,253,281     2005-2006        Commis-
 Tax Act,   Tax           3,540,159     2006-2007        sioner of
 1961                                                    Income
                                                          Tax
                                                         (Appeals)
 
 TOTAL                    7,793,440
 
 
 *The amount indicated is after reducing of Rs. 13,303,962/- which has
 paid under protest.
 
 (x) The company has no accumulated losses at the end of the financial
 year and it has not incurred cash losses in the current and immediately
 preceding financial year.
 
 (xi) Based on our audit procedures and according to the information and
 explanations given to us we are of the opinion that the Company has not
 defaulted in repayment of dues to a financial institution and bank.
 There was no amount raised by the Company through the issue of
 debenture.
 
 (xii) In our opinion and 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 & 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
 (xiii) of paragraph 4 of the Companies (Auditor''s Report) Order, 2003
 (as amended) 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 (xiv) of paragraph 4 of the Companies (Auditor''s
 Report) Order, 2003 (as amended) are not applicable to the Company.
 
 (xv) In our opinion and according to the information and explanations
 given to us, the company has not given any guarantee for loans taken by
 others from banks or financial institutions during the year.
 
 (xvi) In our opinion and according to the information and explanations
 given to us, the term loans have been applied for the purpose for which
 the loans were raised.
 
 (xvii) According to the information and explanations given to us and on
 an overall examination of the balance sheet of the Company, there are
 no funds raised on short- term basis, which have been used for long-
 term investment.
 
 (xviii) According to the information and explanation given to us, 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.
 
 (xix) According to the information and explanations given to us, no
 debentures have been issued by the company during the year.
 
 (xx) We have verified that the end use of money raised by public issues
 during the financial year ended 31st March 2007 as disclosed in the
 Note No. 33 in the notes to the financial statements.
 
 (xxi) During the course of our examination of the books and records of
 the company, carried out in accordance with the generally accepted
 auditing practices in India, 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 year, nor
 have we been informed of such case by the management.
 
                                                  For Haribhakti & Co.
 
                                                Chartered Accountants
 
                                        Firm Registration No. 103523W
 
                                                          Sunil Birla
 
 Bangalore                                                    Partner
 
 30th May 2012                                        Mem. No. 202226