We have audited the attached Balance Sheet of Pet Plastics Limited on
 31st March, 2012, and also the profit & Loss Account annexed there to
 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.
 
 1.  We conducted our audit in accordance with auditing standards
 generally accepted in India. These standards require that we plan &
 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 &
 disclosures in the financial statements. An audit also includes
 assessing the accounting principle used & 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.
 
 2.  As required by the Companies (Auditors Report) Order 2003 issued by
 the Central Government of India in terms of Sub-section (4A) of section
 227 of the Companies Act.  1956, we enclose in the Annexure hereto a
 statement on the matters specified in paragraphs 4 & 5 of said order.
 
 3.  Further to our Comments in the Annexure referred to in paragraph
 (2) above, we report that:
 
 i) We have obtained all the information and explanations which to the
 best of our knowledge and belief which 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
 these books;
 
 iii) The Balance sheet. Profit and Loss Account & Cash Flow Statement
 dealt with by this report are in agreement with the books of account;
 
 iv) In our opinion, the Balance sheet, Profit and Loss account & the
 Cash Flow Statement dealt with by this report comply with the mandatory
 Accounting Standards referred to in sub-section (3-C) of section 211 of
 the companies Act, 1956;
 
 v) hi our opinion, and based on information and explanations given to
 us, none of the directors are disqualified as on 31st March, 2012 from
 being appointed as a directors 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 read together with the
 Significant Accounting Policies and other notes thereon give the
 information required by the Companies Act, 1956 in the manner so
 required, and present a true and fair view, in conformity with the
 accounting principles generally accepted in India.
 
 a) In so far as it relates to Balance Sheet, of the state of affairs of
 the company as at 31st March, 2012.
 
 b) In so far as it relates to the Profit and loss Account, of the
 profit of the Company for the year ended on that date; and
 
 c) In so far as it relates to the Cash Flow Statement, of the Cash
 flows of the company for the year ended on that date.
 
 ANNEXURE REFERRED TO IN PARAGRAPH 2 OF OUR AUDITOR''S REPORT OF EVEN
 DATE ON THE ACCOUNTS FOR THE YEAR ENDED 31SI MARCH, 2012 OF M/s. PET
 PLASTICS LIMITED.
 
 1. IN RESPECT OF ITS FIXED ASSETS:
 
 a.  The company is compiling records showing full particulars including
 quantitative details and situation of fixed assets.
 
 b.  As explained to us, the fixed assets have been physically verified
 by the Management during the year, which in our opinion is reasonable,
 having regard to the size of the company and nature of its assets. No
 material discrepancies were noticed on such physical verification.
 
 c.  In our opinion, the company has not disposed of substantial part
 of fixed assets during the year and the going concern status of the
 company is not affected.
 
 2. IN RESPECT OF INVENTORIES:
 
 a.  As explained to us, inventories have been physically verified by
 the management at regular intervals during the year.
 
 b.  In our opinion and according to the information and explanation
 given to us, the procedures of physical verification of inventories
 followed by the management are reasonable and adequate in relation to
 the size of the company and the nature of its business.
 
 c.  The discrepancies noticed on physical verification of stock as
 compared to the book records were not material and have been properly
 dealt with in the books of accounts.
 
 3.  The company has not granted. The Company has taken loan from one
 party covered.  In our opinion, terms and conditions of said Loan are
 not, prima facie. prejudicial to the interests of the Company in the
 registered maintain under section 301 of the Act.
 
 4.  In our opinion and according to the information and explanation
 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 the purchase of Inventory, fixed assets and
 also for the sale of goods. During the course of our audit, we have not
 observed any major weaknesses in internal controls.
 
 5. There are no transaction made in pursuance of contracts or
 arrangements that need to be entered into the registered maintained
 under section 301 of the Companies Act, 1956. Hence, clause (v) of para
 4 of the said order is not applicable.
 
 6. The company has not accepted any deposit from the public.
 
 7.  In our opinion, the arrangement made by the company to have an
 internal audit done by a firm of Chartered Accountants is commensurate
 with the size of the Company and the nature of its business
 
 8.  The Central Government under 209 (1) (d) of the companies Act,
 1956, has prescribed the maintenance of cost accounts and record in
 respect of Plastics manufactured by the company. As explained to us,
 the company is in the process of completing necessary records in
 respect of the same. Pending completion of the same, we are unable to
 offer any comment.
 
 9.  In respect of statutory dues:
 
 a) According to the records of the company, undisputed statutory dues
 including Provident Fund, Investor Education and Protection Fund,
 Employees State Insurance, Sales tax, Customs Duty, Excise Duty, Cess
 and other statutory dues have been generally regularly deposited with
 the appropriate authorities.  According the information and
 explanations given to us, no undisputed amount payable in respect of
 the aforesaid dues were outstanding as a 31st March, 2012 for period of
 more than six months from the date of becoming payable.
 
 b) According to the information and explanation give to us, there are
 no disputed statutory dues pending as on 31st March, 2012 except Income
 Tax. (Applied pending before (I.T.A.T.) Income Tax Appellate Tribunal)
 
 10. The company has no accumulated losses and has not incurred any cash
 losses during the financial year covered by our audit or in the
 immediately preceding financial year.
 
 11.  Since there are no borrowings from the Financial Institutions.
 Banks or by way of debentures, the question of default in repayment of
 dues does not arise.
 
 12.  In our opinion and according to the information and explanation
 given to us, no loans and advances have been granted by the company on
 the basis of security by way of pledge of shares, debentures and other
 securities.
 
 13.  In our opinion, company is not chit fund or nidhi/mutual benefit
 fund/society.  Therefore, Clause 4 (xiii) of the companies (Auditor
 Report) Order 2003 is not applicable to the company.
 
 14.  Since the company is not dealing or trading in Shares, Securities,
 debentures and other Investments, the Clause is not applicable.
 
 15. The company has not given any guarantee for loans taken by others
 from banks or financial institutions.
 
 16. The company has not raised any new term loans during the year.
 
 17. 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 the company has not used funds raised on short-term basis
 for long-term investment and vice-versa.
 
 18. During the year, company has not made any preferential allotment of
 shares to parties and companies covered in Registered maintained under
 Section 301 of the companies Act. 1956.
 
 19. The company has not issued any debenture during the year.
 
 20. The company has not raised any money by way of public issue during
 the year.
 
 21. In our opinion and according to the information and explanation
 given to us, no fraud on or by the company has been noticed or reported
 during the year.
 
 
 
                                            FOR MULRAJ D. GALA 
 
                                         Chartered Accountants
 
                                          MULRAJ DEVCHAND GALA
 
                                                   (Proprietor) 
 
                                         Membership No: 041206
 
 Place: Mumbai
 
 Date: 14thAugust, 2012