Auditor Report of Advance Petrochemicals Ltd.

Mar 31, 2024

We have audited the accompanying financial statements of ADVANCE
PETROCHEMICALS LIMITED (“the Company”), which comprise the Balance Sheet as at
March 31, 2024, and the Statement of Profit and Loss (including Other Comprehensive
Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then
ended and a summary of the significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us,
the aforesaid standalone financial statements give the information required by the Companies
Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with
the Indian Accounting Standards prescribed under Section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015, as amended, (“Ind AS”) and other
accounting principles generally accepted in India, of the state of affairs of the Company as at
March 31, 2024 and its profit, total comprehensive income, changes in equity and its cash flows
for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the standard on auditing
specified u/s. 143(10) of the act (SAs). Our responsibilities under those standards are further
described in the auditor’s responsibilities for the audit of financial statements section of our
report. We are independent of the company in accordance with the code of ethics issued by ICAI
together with Independence Requirements that are relevant to our audit of the financial
statements under the provisions of the Act and the rules made there under, and we have fulfilled
our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of
Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide the basis for our audit opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance
in our audit of the Standalone Ind AS financial statements of the current period. These matters
were addressed in the context of our audit of the standalone Ind AS financial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters. We have determined the matters described below to be the key audit matters to be
communicated in our report.

Sr. No.	Key Audit Matters	Principal Audit Procedures/ Auditor’s Response
1	Valuation of Stock in Process	The Company is engaged in chemical activity and for the Purpose of valuation of stock Rs.618.54 Lakhs we have taken the value of stock as certified by the Management.
2	Investments	The company is having investment of Rs. 35.90 lakhs being 211600 equity shares of Advance Multitech Ltd Rs. 10 each .The shares of this company is listed at Mumbai stock Exchange ,but presently these are not traded since trading is suspended by the exchange on account of non compliance of some of the terms of exchange. Therefore, market value could not be determined .The company is in process of resumption of listing and expect that shares would be traded in the exchange. The fair value of investment is above than the cost of investment as per audited financial statement as on 31/03/2024. The management expects that on revocation of suspension, the shares may trade above its cost and on account of it; there is no permanent deterioration in the value of investment.

Information other than Financial Statements and Auditor’s Report thereon

The company’s Board of Directors’ are responsible for the preparation of the other information.
The other information comprises the information included in the management discussion and
analysis, board’s report including annexure to board’s report, Business responsibility report,
Corporate governance and Shareholder’s information but does not include the financial
statement and our auditor’s report thereon.

Our opinion on the financial statements does not cover the information and we do not express
any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained during the course of our audit or
otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is material misstatement of this
other information; we are required to report the fact. We have nothing to report in this regard.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the
Act with respect to the preparation of these financial statements that give a true and fair view of the
financial position, financial performance including other comprehensive income, cash flows and
changes in equity of the Company in accordance with the accounting principles generally accepted
in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the
Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended including the
Companies (Indian Accounting Standards) Amendment Rules, 2019. This responsibility also
includes maintenance of adequate accounting records in accordance with the provisions of the Act
for safeguarding of the assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and the design, implementation and maintenance of
adequate internal financial controls, that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless management either intends to liquidate the
Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are also responsible for overseeing the Company’s financial
reporting process.

Auditor’s Responsibility

Our responsibility is to express an opinion on these standalone financial statements based on our
audit. In conducting our audit, we have taken into account the provisions of the Act, the
accounting and auditing standards and matters which are required to be included in the audit
report under the provisions of the Act and the Rules made there under and the Order issued
under section 143(11) of the Act.

As part of an audit in accordance with SAs, we exercise professional judgement and maintain
professional Scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under Section 143(3) (i) of the Act, we are
also responsible for expressing our opinion on whether the bank has adequate internal financial
controls with reference to financial statements in place and the operating effectiveness of such
controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures in the standalone financial statements made by the
Management and Board of Directors.

• Conclude on the appropriateness of the Management and Board of Directors use of the
going concern basis of accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the
company''s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our Auditor''s Report to the related disclosures in the
standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our Auditor''s Report.
However, future events or conditions may cause a Company to cease to continue as a going
concern.

We conducted our audit of the standalone financial statements in accordance with the Standards
on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the
disclosures in the standalone financial statements. The procedures selected depend on the
auditor’s judgment, including the assessment of the risks of material misstatement of the
standalone financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal financial control relevant to the Company’s preparation of the
standalone financial statements that give a true and fair view in order to design audit procedures
that are appropriate in the circumstances. An audit also includes evaluating the appropriateness
of the accounting policies used and the reasonableness of the accounting estimates made by the
Company’s Directors, as well as evaluating the overall presentation of the standalone financial
statements.

We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis
for our audit opinion on the standalone financial statements.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act, based on our audit we report that:

a) We have sought and 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 it appears from our examination of those books.

c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive
Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by
this Report are in agreement with the books of account.

d) In our opinion, the afore said standalone financial statements comply with the Indian
Accounting Standards prescribed under section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014.

e) On the basis of the written representations received from the directors of the Company as
on March 31, 2024 taken on record by the Board of Directors, none of the directors is
disqualified as on March 31, 2024 from being appointed as a director in terms of Section
164(2) of the Act.

f) As per the Ministry of Corporate Affairs (MCA) notification, proviso to Rule 3(1) of the
Companies (Accounts) Rules, 2014, for the financial year commencing April 1, 2023, every
company which uses accounting software for maintaining its books of account, shall use
only such accounting software which has a feature of recording audit trail of each and
every transaction, creating an edit log of each change made in the books of account along
with the date when such changes were made and ensuring that the audit trail cannot be
disabled.

Based on our examination which included test checks, performed by us on the Company,
have used accounting software for maintaining their respective books of account for the
financial year ended March 31, 2024 which has a feature of recording audit trail (edit log)
facility and the same has operated throughout the year for all relevant transactions
recorded in the software except following :

(i) The feature of recording audit trail was not enabled at the database layer to log any
direct data changes for the accounting software used for maintaining the books of
accounts relating to general ledger and consolidation process

(ii) The audit trail was not enabled for certain changes which were performed by users
having privilege access rights, for the accounting software used for maintaining the books
of accounts relating to the general ledger.

Further, for the period audit trail (edit log) facility was enabled and operated for the
respective accounting softwares, we did not come across any instance of the audit trail
feature being tampered with.

As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April
1, 2023,reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 on
preservation of audit trail as per the statutory requirements for record retention is not
applicable for the financial year ended March 31, 2024.

g) With respect to the adequacy of the internal financial controls over financial reporting

of the Company and the operating effectiveness of such controls, refer to our separate
Report in “Annexure A”. Our report expresses an unmodified opinion on the adequacy
and operating effectiveness of the Company’s internal financial controls over financial
reporting.

h) With respect to the other matters to be included in the Auditor’s Report in accordance
with the requirements of Section 197(16) of the Act, as amend:

In our opinion and to the best of our information and according to the explanations given
to us, the remuneration paid by the Company to its Directors during the year is in
accordance with the provisions of Section 197 of the Act.

i) Withre sp ecttotheothermatterstob eincludedintheAuditor’ sReportinacco rdancewithRule 11
of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and
to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position
in its standalone financial statements.

ii. The Company has made provision, as required under the applicable law or accounting
standards, for material foreseeable losses, if any, on long-term contracts including
derivative contracts.

iii. There has been no delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Company.

iv. (a) The Management has represented that, to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) have been advanced
or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in any other person or entity,
including foreign entity (“Intermediaries”), with the understanding, whether recorded
in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend
or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security
or the like on behalf of the Ultimate Beneficiaries;

(b) The Management has represented, that, to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) have been received by
the Company from any person or entity, including foreign entity (“Funding Parties”),
with the understanding, whether recorded in writing or otherwise, that the Company
shall, whether, directly or indirectly, lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate
Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries;

(c) Based on the audit procedures that have been considered reasonable and
appropriate in the circumstances, nothing has come to our notice that has caused us to
believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided
under (a) and (b) above, contain any material misstatement.

v. No dividend has been proposed and hence this clause is Not Applicable.

2. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”) issued by
the Central Government in terms of Section 143(11) of the Act, we give in “Annexure B” a
statement on the matters specified in paragraphs 3 and 4 of the Order.

Suresh R Shah & Associates
Chartered Accountants
FRN:110691W

Place: Ahmedabad Mrugen K Shah

Date: 24-05-2024 (Partner)

M. No.: 117412

UDIN: 24117412BKAHPI7635

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Mar 31, 2015

1 We have audited the accompanying financial statements of ADVANCE PETROCHEMICALS LIMITED, which comprise the Balance Sheet as at March 31, 2015, the Statement of Profit and Loss & Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management Responsibility:

2 The Company's Board of Directors is responsible for the matters in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility:

3 Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with standards on auditing specified under section 143(10) of the Act. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

5 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion :

6 In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act 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 at March 31, 2015;

ii) In the case of statement of profit & loss, of the profit for the year ended on that date; and

iii) In the case of Cash Flow Statement , of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements:

7 As required by the Companies (Auditors Report) Order, 2015 ("the Order) issued by the Central Government of India in terms of sub section(11) of section 143 of the Act, we give in the Annexure a statement on the matters Specified in Paragraphs 3 and 4 of the Order.

8 As required by section 143(3) of the Act, 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 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 those books.

iii) The Balance Sheet and Statement of Profit and Loss dealt with by this Report are in agreement with the books of account.

iv) In our opinion, the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement comply with Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies(Accounts) Rules 2014.

v) On the basis of written representations received from the directors as on March 31, 2015, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2015, from being appointed as a director in terms of section of 164 (2) of the Companies Act, 2013.

9 With respect to the other matters included in the Auditor's report and to best of our information and explanation given to us:

i) The Company does not have any pending litigations which would impact its financial position.

ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the company.

Annexure referred to in paragraph 3 & 4 of our report of even date to the members of Advance Petrochemicals Limited on the accounts for the year ended on 31st March, 2015.

(i) (a) The company has not maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) All fixed assets have not been physically verified by the management at reasonable intervals.

(ii) (a) The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable having regards the size of the company and the nature of its business.

(b) In our opinion, the procedure 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 company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and book records were not material.

(iii) According to information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act 2013.

(iv) 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 purchases of inventory, fixed assets and with regard to the sales of goods. In our opinion, and as explained to us there is no major weakness in internal control. However Company does not have an internal Audit systems commensurate with its size and nature of its business .

(v) (a) In our opinion and according to the information and explanations given to us, the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under have been complied by company with regards to acceptance of Deposit.

(b) No order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal aganist the company

(vi) According to the information and explanations given to us maintenance of cost records in respect of manufacturing activities of the Company are prescribed by the Central Government under sub section (1)of Section 148 the Companies Act, 2013

(vii) (a) According to the information and explanations given to us, and on the basis of our examination of the books of accounts, the Company has generally been regular in depositing the undisputed statutory dues including Income- Tax, Sales Tax, Wealth Tax, Custom Duty, Cess and other statutory dues during the period with the appropriate authorities. Hence, at the end of the year, there are no undisputed dues payable for a period of more than six months from the date they became payable.

(b) According to the information and explanation given to us, there are no amounts in respect of Sales Tax, Income tax, Wealth tax, Custom Duty, Cess and any other material statutory dues were in arrears with the appropriate authorities on account of any dispute.

(c) According to information and explanation given to us, there are no such amounts which are required to be transferred to investor education and protection fund in accordance with the provisions Companies Act 1956(1 of 1956) and rules made hereunder.

(viii) The company does not have any accumulated losses at the end of financial year and has not incurred cash losses during the financial year and in the financial year immediately preceding such financial year.

(ix) In our opinion and according to the information & explanations given to us, the company has not defaulted in repayment of dues to a financial institution or banks or Debenture holder.

(x) In our opinion and based on certificate given by the management to us and information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

(xi) In our opinion and according to the information & explanations given to us the company has not procured ant fresh term loan during the year, hence this clause is not applicable.

(xii) According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the year under audit and even up to the date of our audit.

For, PIPARA & CO.

Chartered Accountants

(F.R.N.: 107929W)

Place : AHMEDABAD GYAN PIPARA

Date : 29.05.2015 Partner

M.No. 034289

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Mar 31, 2014

1 We have audited the accompanying financial statements of ADVANCE PETROCHEMICALS LIMITED, which comprise the Balance Sheet as at March 31, 2014, the Statement of Profit and Loss & Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management Resposibility :

2 The Company''s Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards notified under the Companies Act, 1956 (the Act) read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 and in accordance with the accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility :

3 Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

5 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion :

6 In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act 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 at March 31, 2014; and

ii) In the case of statement of profit & loss, of the profit for the year ended on that date.

iii) In the case of Cash Flow Statement , of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements:

7 As required by the Companies (Auditor''s Report) Order, 2003, issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

8 As required by section 227(3) of the Act, 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 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 those books

iii) The Balance Sheet and Statement of Profit and Loss dealt with by this Report are in agreement with the books of account.

iv) In our opinion, the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement comply with Accounting Standards notified under the Act read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.

v) On the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

Annexure referred to in paragraph 7 of our report of even date to the members of Advance Petrochemicals Limited on the accounts for the year ended on 31st March 2014.

(i) (a) The company has not maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) All fixed assets have not been physically verified by the management at reasonable intervals.

(c) There is no disposal of substantial part of fixed assets have been disposed off during the year, which could affect the going concern.

(ii) (a) The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable having regards the size of the company and the nature of its business.

(b) In our opinion, the procedure 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 company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and book records were not material.

(iii) (a) According to information and explanations given to us, 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. Hence, Clause (iii)(b), (c) & (d) are not applicable.

(e) According to the information and explanations given to us, the Company has taken unsecured loans from the companies, firms or other parties covered under section 301 of the Companies Act, 1956 details of which are as under:

Particulars Loans Accepted No. of Parties Involved - 4

Maximum Amount Involved

During the Year- Rs. 1,00,07,683/-

Amount Outstanding as on 31.03.2014 Rs. 27,09,827/-

(f) In our opinion, the rate of interest and other terms and conditions of inter corporate deposits and loans given/taken by the company, secured or unsecured, are prima facie not prejudicial to the interest of the company.

(g) As explained to us, no stipulation have been fixed for the repayment of principal amount and interest, therefore, we are unable to give any comment on the regularity of payment of the principal amount and interest thereon.

(iv) 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 purchases of inventory, fixed assets and with regard to the sales of goods. In our opinion, and as explained to us there is no major weakness in internal control.

(b) According to the information and explanations given to us, the transaction made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act,1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time. However, the said register was not made available for our perusal.

(vi) In our opinion and according to the information and explanations given to us the Company has not accepted any deposits from the public. Hence, the directives issued by the Reserve Bank of India and the provisions of sections 58A and 58AA of the Act and the rules framed there under are not applicable.

(vii) The company does not have an Internal audit system commensurate with its size and nature of its business; or as required by Companies Auditors (Report) Order, 2003.

(viii) According to the information and explanations given to us maintenance of cost records in respect of manufacturing activities of the Company are prescribed by the Central Government under section 209(1)(d) of the Companies Act, 1956.

(ix) (a) According to the information and explanations given to us, and on the basis of our examination of the books of accounts, the Company has generally been regular in depositing the undisputed statutory dues including Income- Tax, Sales Tax, Wealth Tax, Custom Duty, Cess and other statutory dues during the period with the appropriate authorities. Hence, at the end of the year, there are no undisputed dues payable for a period of more than six months from the date they became payable.

(b) According to the information and explanation given to us, there are no amounts in respect of Sales Tax, Income tax, Wealth tax, Custom Duty, Cess and any other material statutory dues were in arrears with the appropriate authorities on account of any dispute.

(x) The company does not have any accumulated losses at the end of financial year and has not incurred cash losses during the financial year and in the financial year immediately preceding such financial year.

(xi) In our opinion and according to the information & explanations given to us, the company has not defaulted in repayment of dues to a financial institution or banks.

(xii) In our opinion and according to the information and explanations given to us, the Company has not granted any loan or advance on the basis of security by way of pledge of shares, debentures and other securities and hence maintenance of such documents and records does not arise.

(xiii) According to the information and explanations given to us, the provisions of any special statute applicable to Chit Fund, Nidhi or Mutual Benefit Fund and Societies are not applicable to the Company, as no such activity has been undertaken by the Company.

(xiv) In our opinion and according to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures or other investments.

(xv) In our opinion and based on certificate given by the management to us and information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

(xvi) In our opinion and according to the information & explanations given to us the company has not procured ant fresh term loan during the year,hence this clause is not applicable.

(xvii) In our opinion, and according to the information & explanations given to us, funds raised on short-term basis have not been used for long-term investment and vice versa.

(xviii) According to the information & explanations given to us, during the year under our audit , the Company has not allotted shares on preferential basis to the parties and companies covered in the register maintained under section 301 of the Act, 1956. However, the said register was not made available for our perusal.

(xix) The Company has not issued any debentures during the year and therefore paragraph 4 (XiX) of the said order is not applicable.

(xx) The Company has not raised any money by public issues during the year.

(xxi) According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of our audit.

PIPARA & CO. Chartered Accountants (F.R.N.: 107929W)

Place : AHMEDABAD GYAN PIPARA Date: 30.05.2014 Partner M.No. 034289

---

Mar 31, 2013

Report on the Financial Statements

1 We have audited the accompanying financial statements of ADVANCE PETROCHEMICALS LIMITED, which comprise the Balance Sheet as at March 31, 2013, the Statement of Profit and Loss & Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management Resposibility:

2 Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditor''s Responsibility:

3 Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

5 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion :

6 In out opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act 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 at March 31, 2013; and

ii) In the case of statement of profit & loss, of the profit for the year ended on that date.

iii) In the case of Cash Flow Statement , of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements:

7 As required by the Companies (Auditor''s Report) Order, 2003, issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

8 As required by section 227(3) of the Act, 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 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 those books

iii) The Balance Sheet and Statement of Profit and Loss dealt with by this Report are in agreement with the books of account.

iv) In our opinion, the Balance Sheet and Statement of Profit and Loss comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956;

v) On the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

Annexure referred to in paragraph 7 of our report of even date to the members of Advance Petrochemicals Limited on the accounts for the year ended on 31st March 2013.

(i) (a) The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) All fixed assets have been physically verified by the management at reasonable intervals; and no material discrepancies were noticed on such verification;

(c) There is no disposal of substantial part of fixed assets have been disposed off during the year, which could affect the going concern.

(ii) (a) The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable having regards the size of the company and the nature of its business.

(b) In our opinion, the procedure 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 company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and book records were not material.

(iii) (a) According to information and explanations given to us, 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. Hence, Clause (iii)(b), (c) & (d) are not applicable.

(e) According to the information and explanations given to us, the Company has taken unsecured loans from the companies, firms or other parties covered under section 301 of the Companies Act, 1956 details of which are as under:

Particulars Loans Accepted

No. of Parties Involved 3

Maximum Amount Involved

During the Year Rs. 930,000/-

Amount Outstanding as on 31.03.2013 Rs. 8,399,413/-

(f) In our opinion, the rate of interest and other terms and conditions of inter corporate deposits and loans given/taken by the company, secured or unsecured, are prima facte not prejudicial to the interest of the company.

(g) As explained to us, no stipulation have been fixed for the repayment of principal amount and interest, therefore, we are unable to give any comment on the regularity of payment of the principal amount and interest thereon.

(iv) (a) 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 purchases of inventory, fixed assets and with regard to the sales of goods. In our opinion, and as explained to us there is no major weakness in internal control.

(b) According to the information and explanations given to us, the transaction made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time. However, the said register was not made available for our perusal.

(vi) In our Opinion and according to the information and explanations given to us the Company has not accepted any deposits from the public. Hence, the directives issued by the Reserve Bank of India and the provisions of sections 58A and 58AA of the Act and the rules framed there under are not applicable.

(vii) . The company does not have an Internal audit system commensurate with its size and nature of its business; or as required by Companies Auditors (Report) Order, 2003.

(viii) According to the information and explanations given to us maintenance of cost records in respect of manufacturing activities of the Company are prescribed by the Central Government under section 209(1 )(d) of the Companies Act, 1956.

(ix) (a) According to the information and explanations given to us, and on the basis of our examination of the books of accounts, the Company has generally been regular in depositing the undisputed statutory dues including Income- Tax, Sales Tax, Wealth Tax, Custom Duty, Cess and other statutory dues during the period with the appropriate authorities. Hence, at the end of the year, there are no undisputed dues payable for a period of more than six months from the date they became payable.

(b) According to the information and explanation given to us, there are no amounts in respect of Sales Tax, Income tax, Wealth tax, Custom Duty, Cess and any other material statutory dues were in arrears with the appropriate authorities on account of any dispute.

(x) The company does not have any accumulated losses at the end of financial year and has not incurred cash losses during the financial year and in the financial year immediately preceding such financial year.

(xi) In our opinion and according to the information & explanations given to us, the company has not defaulted in repayment of dues to a financial institution or banks.

(xii) In our opinion and according to the information and explanations given to us, the Company has not granted any loan or advance on the basis of security by way of pledge of shares, debentures and other securities and hence maintenance of such documents and records does not arise.

(xiii) According to the information and explanations given to us, the provisions of any special statute applicable to Chit Fund, Nidhi or Mutual Benefit Fund and Societies are not applicable to the Company, as no such activity has been undertaken by the Company.

(xiv) In our opinion and according to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures or other investments.

(xv) In our opinion and based on certificate given by the management to us and information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

(xvi) In our opinion and according to the information & explanations given to us the company has not procured ant fresh term loan during the year,hence this clause is not applicable.

(xvii) In our opinion, and according to the information & explanations given to us, funds raised on short-term basis have not been used for long-term investment and vice versa.

(xviii) According to the information & explanations given to us, during the year under our audit, the Company has not allotted shares on preferential basis to the parties and companies covered in the register maintained under section 301 of the Act, 1956. However, the said register was not made available for our perusal.

(xix) The Company has not issued any debentures during the year and therefore paragraph 4 (XiX) of the said order is not applicable.

(xx) The Company has not raised any money by public issues during the year.

(xxi) According to the information and explanations given to us, no fraud on cr by the Company has been noticed or reported during the course of our audit.

For, PIPARA & COMPANY

Chartered Accountants

(F.R.N. 107929W)

PLACE: AHMEDABAD (GYAN PIPARA)

DATE :31/05/2013 PARTNER

Membership No. 034289

---

Mar 31, 2012

1. We have audited the attached Balance Sheet of ADVANCE PETROCHEMICALS LIMITED, as at 31st March, 2012, the Profit & Loss Account and also the Cash Flow Statement of the Company for the year ended on that date, both annexed hereto. 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 have 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 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, a statement on the matters specified in paragraphs 4 & 5 of the said Order.

4. Further to our comments in the Annexure referred to 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 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 it appears from our examination of those books;

iii) The Balance Sheet, Profit & Loss Account and Cash-flow Statement dealt with by this report are in agreement with the books of account;

iv) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report comply with the Applicable Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956;

v) On the basis of written representations received from the directors, as on 31st March, 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, read together with significant accounting policies and notes 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 Profit & Loss account, of the Profit for the year ended on that date; and

c) in the case of Cash Flow Statement, of the Cash Flow for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT

(Referred to in paragraph 3 of our report of even date)

(i) (a) The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) All fixed assets have been physically verified by the management during the year and there is a regular programme of verification which in our opinion is reasonable having regard to the size of the Company and the nature of its assets. As informed, no material discrepancies were noticed on such verification.

(c) During the year no disposal of fixed asset has been made which could affect the going concern status of the company.

(ii) (a) The management has conducted physical verification of inventory at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable having regard to the size of the Company and the nature of its business.

(b) In our opinion, 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) According to the information and explanations given to us and in our opinion, the company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and book records have been properly dealt with in the books of accounts and were not material.

(iii) (a) During the year, the company has not granted any loans, secured or unsecured, to companies or other parties covered in the maintained under section 301of the companies act, 1956.

Details of loans, secured or unsecured, taken from companies or other parties are as under:-

No. of Parties : One

Maximum amount involved during the year : Rs.10,76,822/-

Outstanding Balance as on 31.03.2012 : Rs.60,15,554/-

(b) In our opinion, the loans taken and given are prima facie, not prejudicial to the interest of the Company.

(c) As stated in clause (iii)(b) above and in the absence of any stipulation for the repayment of principal amount and interest thereon, we are unable to give any comment on the regularity of payment of the principal amount and interest thereon.

(d) As stated in clause (iii)(b) above and in the absence of any stipulation for the repayment of principal amount or interest, the overdue amount could not be found out. Hence, we are unable to give any comment on the steps taken by the Company for recovery / payment of the principal or interest.

(iv) 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 for the purchases of inventory, fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weakness in the internal controls.

(v) (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 information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956, and exceeding the value of Rs.5,00,000 in respect of each party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

(vi) The company has not accepted any deposits from the public and therefore the provisions of sections 58A, 58AA of the Companies Act, 1956 and the rules framed there under are not applicable.

(vii) In our opinion, the company has an Internal Audit System commensurate with the size and nature of its business.

(viii) The Central Government has not prescribed maintenance of cost records under section 209(1)(d) of the Companies Act, 1956.

(ix) (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Income Tax, Wealth Tax, Service Tax 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, Income Tax, Wealth Tax, Sales Tax, Service Tax, Cess, Custom Duty and other undisputed statutory dues were in arrears as at 31st March, 2012 for a period of more than six months from the date they became payable

(c) According to the records of the Company, There are no dues outstanding of income-tax, sales-tax, service-tax, cess on account of any dispute.

(x) The Company neither has any accumulated losses nor has incurred any cash losses during the financial year covered by our audit and the immediately preceding financial year.

(xi) According to the information and explanation given to us, the Company has not defaulted in repayment of dues to banks, financial institution or debenture holders.

(xii) In our opinion and according to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) 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) The company is not dealing in or trading in shares, securities, debentures and other investments. Therefore, the provisions of clause (xiv) of paragraph 4 of the order are not applicable.

(xv) To the best of our knowledge and belief and according to the information and explanations given to us, the Company has not given guarantees for loans taken by subsidiaries from banks and financial institution, the terms and conditions whereof in our opinion are not prima-facie prejudicial to the interest of the company.

(xvi) To the best of our knowledge and belief and according to the information and explanations given to us, in our opinion, the term loans outstanding at the beginning of the year and raised during the year were, prima facie, applied by the Company for the purpose for which they were obtained.

(xvii) According to the Cash Flow Statement and other records examined by us and the information and explanations given to us, on an overall basis, funds raised on short-term basis have not, prima facie, been used during the year for long-term investments.

(xviii) During the year, the company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

(xix) The Company has not issued any debentures during the year under our audit.

(xx) The Company has not raised any money by way of public issues during the year.

(xxi) To the best of our knowledge and belief and according to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported during the year.

For, PIPARA & COMPANY

Chartered Accountants

(Registration No. 107929W)

PLACE: AHMEDABAD (GYAN PIPARA)

DATE : 31/08/2012 PARTNER

Membership No. 034298

---

Mar 31, 2010

1. We have audited the attached Balance Sheet of Advance Petrochemicals Limited as at 31 st March 2010, the Profit and Loss Account and also the Cash Flow Statement for the year ended on that date both annexed thereto. These financial statements are the responsibility of the companys 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 auditto 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 (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 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 above, we report that:

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;

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, Profit and Loss Account and 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 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;

On the basis of written representations received from the directors, as on 31st March 2010 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March 2010 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 significant accounting policies and notes, 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 2010;

(b) in the case of the Profit and Loss Account, of the Profit for the year ended v on that date; and

(c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT (referred to in paragraph 3 of our report of evendate)

(i) (a) The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) All fixed assets have been physically verified by the management during the year and there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and nature of its assets. As informed, no material discrepancies were noticed on such verification.

(c) During the year no disposal of fixed asset has been made which could affect the going concern status of the company.

(a) The management has conducts physical verification of invetory at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable having regard to the size of the Company and the nature of its business.

(b) In our opinion, 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) According to the information and explanations given to us and in our opinion, the company is maintaining proper records of invetory. The discrepancies noticed on verification between the physical stocks and book records have been properly dealt with in the books of accounts and were not material.

(iii) (a) During the year, the company has not granted any loans, secured or unsecured, to companies or other parties covered in the maintained under section 301 of the companies act, 1956.

Details of loans, secured or unsecured, taken from companies or other parties are as under :-

No of Parties : One

Maximum amount Involved during the year : Rs.17,49,997/-

Outstanding Balance as on 31.03.2010 : Rs.16,58,766/-

(b) In our opinion, the loan taken and given are prima facie, not prejudicial to the interest of the company.

(c) As stated in clause (iii) (b) above and in the absence of any stipulation for the repayment of principal amount and interest thereon, we are unable to give any comment on the regularity of payment of the principal amount and interest thereon.

(d) As stated in clause (iii) (b) above and in the absence of any stipulation for the repayment of principal amount or interest, the overdue amount could not be found out. Hence, we are unable to give any comment on the steps taken by the Company on the steps taken by the Company for recovery / payment of the principal or interest.

(iv) 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 for the purchases of inventory, fixed assets and forthe sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct majorweakness in the internal controls.

(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 information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956, and exceeding the value of Rs.5,00,000 in respect of each party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

i) The company has not accepted any deposits from the public and therefore the provisions of sections 58A, 58AAof the Companies Act, 1956 and the rules framed there under are not applicable.

(vii) In our opinion, the company has an Internal Audit System commensurate with the size and nature of its business.

(viii) The Central Government has not prescribed maintenance of cost records under section 209(1 )(d) of the Companies Act, 1956.

(ix) (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Income Tax, Wealth Tax, Service Tax 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, Income Tax, Wealth Tax, Sales Tax, Service Tax, Cess, Custom Duty and other undisputed statutory dues were in arrears as at 31 st March, 2010 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, service-tax, cess on account of any dispute, are as follows:

Name of the Nature of dues Amount in Period to which Forum where

statute INR the amount dispute pending relates

Income Tax Income tax on 2,36,928 AY1992-93 Commissioner of

Act,1961 regular Income Tax (Appeals),

assessment Ahmedabad

Income Tax Income tax on 9,21,642 AY1996-97 Deputy

Act,1961 regular Commissioner

assessment - Udaipur

(x) The Company neither has any accumulated losses nor has incurred any cash losses during the financial year covered by our audit and the immediately preceding financial year.

(xi) According to the information and explanation given to us, the Company has not defaulted in repayment of dues to banks, financial institution or debenture holders.

(xii) In our opinion and according to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) 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 (Auditors Report) Order 2003 (as amended) are not applicable to the company.

(xiv) The company is not dealing in or trading in shares, securities, debentures and other investments. Therefore, the provisions of clause (xiv) of paragraph 4 of the order are not applicable.

(xv) To the best of our knowledge and belief and according to the information and explanations given to us, the Company has not given guarantees for loans taken by subsidiaries from banks and financial institution, the terms and conditions whereof in our opinion are not prima-facie prejudicial to the interest of the company.

(xvi) To the best of our knowledge and belief and according to the information and explanations given to us, in our opinion, the term loans outstanding at the beginning of the year and raised during the year were, prima facie, applied by the Company for the purpose for which they were obtained.

(xvii) According to the Cash Flow Statement and other records examined by us and the information and explanations given to us, on an overall basis, funds raised on short- term basis have not, prima facie, been used during the year for long-term investments.

(xviii) During the year, the company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

(xix) The Company has not issued any debentures during the year under our audit.

(xx) The Company has not raised any money by way of public issues during the year.

(xxi) To the best of our knowledge and belief and according to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported during the year.

For, Pipara & Company

Chartered Accountants

(Registration No. 107929W)

(RASHMIRUNGTA)

PLACE: AHMEDABAD PARTNER

DATE : 30.08.2010 Memb. No. 101176