We conducted our audit in accordance with the 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 financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

We report as follows:

1. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

2. Further to our comments in the Annexure referred to in paragraph 1 above:

a) 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.

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 Profit and Loss Account dealt with by this report are in agreement with the books of account.

d) In our opinion, the Balance Sheet, Profit and Loss Account & 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.

e) On the basis of written representation received from the Directors as on 31st August, 2006, and taken on record by the Board of Directors, we report that none of the directors are disqualified as on 31s1 August, 2006 from being appointed as Directors in terms of Clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

f) In our opinion and to the beast of our information and according to the explanations given to us, the said accounts read together with the Companys Accounting policies and notes thereto, 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;

(i) In the case of the Balance Sheet, of the State of Affairs of the Company

as on 31" August, 2006 (ii) In the case of the Profit and Loss Account, of the profit of the Company

for the year ended on that date.

Annexure to Auditors Report (Referred to in paragraph 1 of our report of even date)

1 (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of information available.

(b) According to the information and explanation given to us, the fixed assets have been physically verified by the management during the year in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the company and nature of the assets. No material discrepancies were noticed on such verification.

(c) The Company has not disposed off any substantial/ major part of fixed assets.

2 None of the Fixed Assets have revalued during the year.

3 As explained to us, the stock of shares, spare parts, raw materials and finished goods have been physically verified by the management at regular intervals during the year. In pur opinion the frequency of such verification is reasonable having regard to the size of the company and nature of its business.

4 In our opinion and according to the information and explanations given to us, the procedures of .physical verification of stocks followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

5 As explained to us there were no material discrepancies noticed on physical of the stocks of raw materials, stores and spare parts and finished goods, having regard to the size of the operations of the Company.

6 The valuation of stocks is fair and proper and is in accordance with the normally accepted accounting principles and is on the same basis as in the preceding year.

7 The Company has neither granted nor taken any loans, secured or unsecured to/from companies, firms or other parties as listed in the register maintained under Section 301 of the Companies Act, 1956.

8 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 the nature of its business with regard to purchase of fixed assets and for the sale of goods.

9 In our opinion and according to the information and explanations given to us, there are no transactions during the year exceeding in value Rs. 5 lakhs in respect of any party ,which need to be entered in the register maintained under section 301 of the companies act,1956.

10 I n our opinion and according to the information and explanations given to us, the company has not accepted deposits from the public and therefore, the provision of Section 58A of the Companies Act, 1956 and rules there under are not applicable to the company.

11 In our opinion the company has an internal audit system commensurate with it size and the nature of its business.

12 Maintenance of cost records under Section 209(1) (d) of the Companies Act, 1956 are applicable to the company.

13 Provisions relating to Provident Fund and Employees State Insurance are not applicable to the company.

14 No loans have been taken from Banks / Financial Institutions during the year under audit.

15 The provisions of any Special Statute applicable to a chit fund, nidhi or Mutual fund benefit/societies are not applicable to the Company.

16 According to the information and explanations given to us, the company has not granted any loans and advance on the basis of security by way of pledge of shares, debentures and other securities.

17 According to the information and explanations given to us, the company has not given any guarantee for loans taken by others from Banks and Financial Institutions.

18 On the basis of an overall examination of the financial statements of the company, there are no funds raised on a short term basis which have been used for long term investment and vice versa.

19 The company has not made any preferential allotment of shares during the year to any party.

20 The company has not raised any money by public Issues during the year.

21 To the best of our knowledge and belief 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 M/s S S Trimbakkar & Co.  
                                                Chartered Accountants,

                                                       S S Trimbakkar 
                                                           Proprietor