We have audited the attached Balance Sheet of M/s STEEL STRIPS
 INFRASTRUCTURES LIMITED (Formerly Known as Steel Strips & Tubes Ltd.)
 as at 31.03.2011 and also the Profit and Loss Account 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.
 
 1) As required by the Companies (Auditors'' Report) Order, 2003 issued
 by the Central Government of India in terms of Section 227 (4-A) of the
 Companies Act , 1956 we enclose in the Annexure a statement on the
 matters as specified in paragraph 4 and 5 of the said order.
 
 2) Further to our comments in the Annexure referred to in paragraph 1
 above, we state 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 accounts as required under the
 law, have been kept by the Company so far as appears from our
 examination of such books.
 
 iii) The Balance Sheet and Profit and Loss Account and the Cash Flow
 Statement referred to in this report are in agreement with the books of
 accounts.
 
 (iv) In our opinion, the Balance Sheet and Profit and Loss Account and
 the Cash Flow Statement dealt with by this report, comply with the
 Accounting Standards referred to in Section 211 (3C) of the Companies
 Act, 1956.
 
 (v) On the basis of written representation received from Directors, as
 on 31.03.2011 and taken on record by the Board of Directors, we report
 that none of the Directors is disqualified as on 31.03.2011 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, read together with the
 significant accounting policies as per schedule of 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
 Balance Sheet, of the state of affairs of the company as at 31.03.2011,
 and,
 
 (b) In the case of Profit and Loss Account, of the Profit for the year
 ended on that date.
 
 (c) 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 our report of even date:
 
 1.The company is maintaining proper records showing full particulars,
 including quantitative details and situation of fixed assets. The fixed
 assets have been physically verified by the management at reasonable
 intervals. No material discrepancies were noticed on such verification.
 No Material Fixed Assets have been disposed off during the year.
 
 2.  Physical verification of inventory has been conducted at reasonable
 intervals by the management. The procedures of physical verification of
 inventory followed by the management appear to be reasonable and
 adequate in relation to the size of the company and the nature of its
 business. The company is maintaining proper records of inventory. No
 material discrepancies were noticed on physical verification dealt with
 in the books of accounts.
 
 3.  The company has not granted any loans, secured or unsecured to
 companies, firms or other parties covered in the register maintained
 under section 301 of the Act. The company has taken loans from such
 companies, firms or other parties covered in the said register, terms
 where of are not prejudicial to the interest of the company.
 
 4.  There is an adequate internal control procedure commensurate with
 the size of the company and the nature of its business, for the
 purchase of inventory and fixed assets and for the sale of goods.
 
 5.  The transactions that need to be entered into a register in
 pursuance of section 301 of the Act have been so entered in the
 register. Each of these transactions have been made at prices which are
 reasonable having regard to the prevailing market prices at the
 relevant time.
 
 6.  The company has accepted fresh deposits of Rs.  175.00 lac from the
 public during the year.  Deposits of Rs. 84.50 lacs were brought
 forward from previous year. During the year, the Company has repaid Rs.
 25.00 lacs and renewed Rs. 35.00 lacs out of these deposits. There are
 no unpaid or unclaimed deposits as at the end of the year. No deposit
 is maturing before 31.03.2012.
 
 7.  The company has an internal audit system commensurate with its size
 and nature of its business.
 
 8.  The Company has not been required to maintain cost records under
 Section 209(1)(d) of the Companies Act, 1956.
 
 9.  The company is regular in depositing undisputed statutory dues
 including, Provident Fund, Investor Education and Protection Fund,
 Employees'' State Insurance, Income Tax, Sales tax, Service Tax, Wealth
 tax, Custom Duty, Excise Duty, Cess and any other statutory dues with
 the appropriate authorities.
 
 10. The company is registered for a period of more than 5 years, having
 existing share capital of Rs.  864.30 lac. The company has no
 accumulated losses. It has neither incurred cash loss during the year
 under review nor during the previous year.
 
 11. The company has not defaulted in repayment of dues to a financial
 institution or bank.
 
 12.  The company has not granted loans and advances on the basis of
 security by way of pledge of shares, debentures and other securities.
 
 13. The company is not a chit fund company.
 
 14. The company is not running any Nidhi/Mutual Benefit Fund/ Society.
 
 15. The company is not a Financing Company.
 
 16. The company has not given any guarantee for loans taken by others
 from bank or financial institutions.
 
 17. The term loans were applied for the purpose for which the loans
 were obtained, as per the information available from the records of the
 company.
 
 18. The company has not made any preferential allotment of shares to
 parties and companies covered in the Register maintained under section
 301 of the Act.
 
 19. The company has not issued any Debentures upto date.
 
 20. The company has not raised any money by Public Issue during the
 year.
 
 21. No fraud on or by the company has been noticed or reported during
 the year.
 
 22. The company is not a sick company under the provisions of the Sick
 Industrial Companies (Special Provisions) Act, 1985.
 
                                                   for S.C. Dewan & Co.  
 
                                                  Chartered Accountants
 
 Place : Chandigarh                                          S.C. Dewan
 
 Dated : 30.05.2011                                             Partner
 
                                                            M.No. 15678