We have audited the attached Balance Sheet of Readymade Steel India
 Limited (the Company) as at 31st March 2011 and the Profit and Loss
 account and Cash Flow Statemement of the Company 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.
 
 1) We have conducted our audit in accordance with auditing standards
 generally accepted in India. These 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 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 the management, as well as evaluating the overall presentation of
 the financial statements. We believe that our audit provides a
 reasonable basis for our report.
 
 2) As required by the Companies (Auditor''s Report) Order, 2003 (as
 amended) issued by the Central Government in terms of Section 227 (4A)
 of the Companies Act, 1956 and on the basis of such checks as we
 considered appropriate and according to information and explanation
 given to us during the course of our audit, we enclose in the Annexure,
 our report on the matters specified in paragraph 4 & 5 of the said
 order to the extent applicable to the company.
 
 3) We report that :
 
 a) We have obtained all the information and the 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 the
 books;
 
 c) The Balance Sheet and the Profit and Loss account dealt with by this
 report are in agreement with the Books of Account;
 
 d) In our opinion, the Balance Sheet and the Profit and Loss account,
 read together with the Notes thereon, dealt with by this report comply
 in material respects with the accounting standards referred to in sub
 section (3C) of section 211 of the Companies Act, 1956
 
 e) On the basis of the written representations received from the
 Directors, which have been taken on the record by the Board of
 Directors, we report that none of the Directors is disqualified as on
 March 31, 2011 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 and subject to our comments above, the
 said accounts, read together with the notes thereon, give the
 information required by the Companies Act, 1956, in the manner so
 required, and give a true and fair view :
 
 (i) In the case of the Balance Sheet, of the state of the Company''s
 affairs as at March 31, 2011;
 
 (ii) In the case of the Profit and Loss account, of the profit of the
 company for the year ended on that date.
 
 (iii) In the case of the Cash flow statements of the cash flows for the
 period ended March 31, 2011
 
 ANNEXURE TO AUDITORS'' REPORT
 
 Annexure referred to in paragraph 2 of the Auditors'' Report to the
 members of Readymade Steel India Limited, on the accounts for the year
 ended on March 31, 2011
 
 1) a) The Company is maintaining proper records showing full
 particulars, quantitative details and situation of Fixed Assets.
 
 b) As explained to us, the assets have been physically verified by the
 management during the year. There were no material discrepancy on such
 verification.
 
 c) The Company did not dispose off a substantial part of the Fixed
 Assets during the Financial Year under review.
 
 2) a) The inventory has been physically verified during the period 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 nature of its business.
 
 c) As explained to us, the Company has been maintaining records of
 inventories. In our opinion, the maintenance of records are prima-facie
 reasonable in relation to the size and nature of business of the
 company.
 
 3) As explained to us, during the period under audit the company has
 not given or taken loan or advances to party covered under the register
 maintained pursuant to section 301 of the Companies Act, 1956.
 
 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 nature of its business
 with regard to purchases of inventory, Fixed Assets and with regard to
 the sale of goods. During the course of our audit, we have not observed
 any continuing failure to correct major weaknesses in internal control.
 
 5) a) According to the information and explanations given to us, we are
 of the opinion that the transactions that need to be entered into the
 register maintained under section 301 of the Companies Act, 1956 have
 been so entered.
 
 b) In our opinion, and according to the explanations given to us, the
 Company has not entered into any contracts or arrangements exceeding
 Rs. 5.00 Lakh in respect of any party in pursuance of contracts or
 arrangements entered in the register to be maintained under section 301
 of the Companies Act, 1956 except for the contracts for sale / purchase
 which, as explained, are at the prevailing market prices
 
 6) The company has not accepted public deposits to which the provisions
 of section 58A and 58AA of the Companies Act,1956 apply.
 
 On the basis of written representation received from the management, we
 state that the company has not received any order for the contravention
 of the provisions from the Company Law Board or RBI or any court or any
 other Tribunal in this respect.
 
 7) The Company does not have an Internal Audit System.
 
 8) As explained to us the company is not required to maintain cost
 records under Section 209 (1) (d) of the Companies Act, 1956.
 
 9) a) The company is generally regular in depositing with appropriate
 authorities undisputed statutory dues including Provident Fund,
 Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom
 Duty, Excise Duty, Cess and other material statutory dues applicable to
 it.
 
 b) According to the information and explanations given to us, there are
 no undisputed amounts payable in respect of Income Tax, Wealth Tax,
 Sales Tax, Custom Duties and Excise Duties, which have remained
 outstanding as at 31st March 2011 for a period of more than six months
 from the date they become payable.
 
 c) According to the information and explanations given to us, there are
 no disputed statutory dues which have not been deposited by the
 company.
 
 10) There are no accumulated losses of the company and company has not
 incurred cash losses during the period covered by our audit and the
 immediately preceeding financial year.
 
 11) The Company has taken various facility from their Banks / FI for
 the purpose of its business. The company is regular in paying the
 interest and principal amount in respect of the loans taken from the
 Banks / FI.
 
 12) The Company has not granted any secured loans or advances to any
 person against security by way of pledge of shares or securities.
 
 13) In our opinion, the Company is not a chit fund or a nidhi / mutual
 benefit fund/ society. Therefore, the provisions of clause 4(xiii) of
 the Companies (Auditor''s Report) order, 2003 are not applicable to the
 Company.
 
 14) In our opinion, the company is not dealing in or trading in shares,
 securities, debentures and other investments. Accordingly, the
 provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
 2003 are not applicable to the company.
 
 15) The Company has not given any Guarantee on behalf of others to any
 Bank or Financial Institution.
 
 16) In our opinion, the term loans, taken from the bankers, have been
 prima-facie applied for the purpose for which they were raised.
 
 17) According to information and explanations given to us, and on an
 overall examination of the balance sheet of the company, we report that
 no funds raised on short term basis have been used for long term
 investment. No long term funds have been used to finance short term
 assets except permanent working capital.
 
 18) a) During the year under audit the company has alloted 378500
 Equity Shares on preferential basis at the price at which the same are
 not prejudicial to the company.
 
 b) According to the information made available to us, the company has
 not raised any fund by way of public issue, the end use of which is
 required to be disclosed in the notes to the financial statement and to
 be verified by us.
 
 19) During the course of our audit and on the basis of our test check,
 we did not come across any case of fraud on or by the company noticed
 or reported during the period under audit.
 
 
 For MKPS & Associates
 
 Chartered Accountants
 
 Firm Regn. No. 302014E
 
 CA. Narendra Khandal
 
 Partner
 
 M No. 065025
 
 Place: Mumbai
 
 Date: 3rd September 2011