Auditor Report of Continental Petroleums Ltd.

Mar 31, 2024

CONTINENTAL PETROLEUMS LIMITED Opinion

We have audited the financial statements of Continental Petroleums Limited, which comprise the Balance Sheet as at 31st March, 2024, and the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as "Ind AS financial statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statement gives the information required by the Companies Act, 2013 ("Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2024, of its profit and other comprehensive income, changes in equity and cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditor''s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in terms of the Code of Ethics issued by the Institute of Chartered Accountants of India and the relevant provisions of the Act, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our 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 financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters

Information Other than the Financial Statements and Auditor''s Report Thereon

The Company''s Board of Directors is 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 Annexures to Board''s Report, Corporate Governance and Shareholder''s Information, but does not include the financial statements and our auditor''s report thereon. Our opinion on the financial statements does not cover the other 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 whetherthe 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. We have been provided the aforesaid reports and based on the work we have performed, we did not observe any material misstatement of this other information and accordingly, 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 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 and financial performance including other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the accounting standards (Ind-AS) specified under section 133 of the Act read with relevant rules issued thereunder.

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 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 statement 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.

The Board of Directors is also responsible for overseeing the Company''s financial reporting process.

Auditor''s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted In accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Statement.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit, We also;

1. Identify and assess the risks of material misstatement of the Financial Results, 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.

2. 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 company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Management and the Board of Directors.

4. Conclude on the appropriateness of the Management and the 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 financial results or, if such disclosures are inadeq uate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report.

5. However, future events or conditions may cause the Company to cease to continue as a going concern.

6. Evaluate the overall presentation, structure and content of the Financial Results, including the disclosures, and whether the Financial Results represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit a nd significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit a nd significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor''s Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of subsection (11) of section 143 of the Companies Act, 2013, we give in the "Annexure A", a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

As required by Section 143(3) of the Act, we report that:

1 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.

2 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.

3 The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

4 In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

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

6 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. "Annexure B"

7 With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us

i. The Company does not have any pending litigations which would impact its financial position in its financial statements forthe year ended 31st March, 2024 under Notes on Accounts "Contingent Liabilities and Capital Commitments to the extent not provided for".

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

iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

For: R.P. KHANDELWAL& ASSOCIATES Chartered Accountants (FRNN0.001795C)

Sd/-

CA: RONAK KHANDELWAL (Partner)

M.No.423822 Date: -30.05.2024 Place:-Jaipur

UDIN: 24423822BKBHDE2934

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Mar 31, 2015

We have audited the accompanying financial statements of Continental Petroleums Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2015, the Statement of Profit, Loss and Cash Flow Statement for the year the Ended and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

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 referred to in sub-Section (3C) of Section 211 of 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. This responsibility includes the design, implementation 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.

Auditors' Responsibility

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 misstatements.

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.

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

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair viewin 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 March 31,2015;

(b) In the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and

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

Report on Other Legal and Regulatory Requirements

1. As Required by the Companies (Auditor's Report) Order, 2015 ("the Order") as amended issued by the Central Government of India in terms of Sub-section(11) Of Section 143 of the Act, We give in the Annexed a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. Asrequired by Section 143(3) of the Act, we report that:

a. 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;

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 those books;

c. The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;

d. In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)Rules, 2014.

e. On the basis of written representations received from the directors as on 31st March , 2015 taken on record by the Board of Directors, none of the Directors is disqualified as on 31st March, 2015 from being appointed as a Director of the company in terms of Section 164(2) of the Act.

f. With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules and to our best of information and according to the explanations given to us :

(i) The company has disclosed pending litigations which would impact it financial position.

(ii) The company did not have any long term contracts including derivatives contracts for which there were any material foreseeable losses.

(i) There has been no delay in transferring amounts which were required to be transferred to the investor education and protection fund by the company.

ANNEXURE TO THE AUDITOR'S REPORT

[Referred to in our report of even date to the Member of Continental Petroleums Ltd]:

(i) (a) The Company is in the process of compiling fixed assets records to show full particulars, including quantitative details and situation of fixed assets.

(b) We were informed that all major items of fixed assets were physically verified by the management at the end of the year and that no discrepancy was notified on such verification, which on account of proper records being still under compilation, could not be verified.

(ii) (a) The Management of Company has conducted physical verification of inventory at reasonable intervals.

(b) In our opinion, the procedures of physical verification of stocks followed by the management of Company are reasonable and adequate in relation to the size of the Company and the nature of its business.

(iii) 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 . Accordingly the clause 3(iii)(a) and 3 (iii)(b) of the Order are not applicable to the Company.

(iv) In our opinion and according to information and explanation given to us ; there is adequate internal control system commensurate with the size of the Company and the nature of its business .fixed assets and with regard to loans given . Further on the basis of our examination of books and records of the Company, and according to the information and explanations given to us, we have not observed any continuing failure to correct major weaknesses in the aforesaid internal control system.

(v) The Company has not accepted any deposited as defined in the Companies(Acceptance Of Deposits) Rules 2014.Accordingly, the provisions of Clause 3(v) of the order are not applicable to the Company.

(vi) According to information and given to us, The Central government has not prescribed maintenance of cast records under section (1) one of section 148 of the company's act, 2013.

(a) According to the information and explanation given to us , the company is generally regulars in depositing with appropriate authorities undisputed statutory dues to company had no areas of such outstanding statutory dues as at 31st march, 2015 for a pried more than six month from the date they become payable.

(b) According to the information and explanation given to us, the company has no disputed outstanding statutory dues as at 31st march, 2015

(c) According to the information and explanation given to us, no amount is required to be transferred to the investor Education and Protection fund as the relevant provision of the company's Act, 2013 are not applicable to the company.

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

(viii) According to the information and explanation given to us, the Company has not defaulted in the repayments of dues to financial institution, bank or debenture holder during the year

(ix) According to the information and explanation given to us, the Company has not given any guarantee for loans taken by others from bank or financial intuitions during the year.

(x) According to the information and explanation given to us, the Company has applied term loans for the purpose for which the loans were obtained.

(xi) According to the information and explanation given to us, no fraud on or by the Company has been noticed or reported during the year review.

Place Jaipur For R.P. Khandelwal & Associates Date:-30th May 2015 Chartered Accountants FRN 001759C

R.P Khandelwal (Partner) M.No : 071002

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Mar 31, 2013

We have audited the attached Balance Sheet of M/s Continental Petroleum''s Limited, Jaipur as at 31st March, 2013 and the Profit & Loss Account for the year ended on that date annexed and report that:-

"We conducted our Audit in accordance with Auditing Standards generally accepted in India. Those standards required 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 amount and disclosures in the financial statement. 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 (Auditor''s Report) order 2003 dated 12th June, 2003 issued by the Central Government in terms of Sub-Section (4A) of Section 227 of the Companies Act, 1956. We enclosed in the Annexure a statement on the matter specified in paragraph 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 purpose of our audit.

(b) Proper Books of Accounts as required by law have been kept by the Company so far as it appears from our examination of the books.

(c) The Balance Sheet and Profit & Loss Account referred to in this report are in agreement with the books of account.

(d) During the course of our audit we have not observed any adverse effect on the working of the Company.

(e) None of the Director of the Company are disqualified from the appointment as Director under 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 explanation given to us the said accounts read with the notes thereon given 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 profit & Loss Account of the Profit for the year ended on that date.

(ii) In the case of Balance Sheet of the state of affairs of the Company as at 31st March, 2013.

Annexure to the Auditor''s Report

Referred to in paragraph 1 above of even date:

1. The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets. The fixed assets have been physically verified by the management during the year and we are informed that no material discrepancies were noticed on such verification.

2. The company has not disposed off substantial part of the fixed assets which affects the going concern of the company.

3. a) The inventory has been physically verified by the management at reasonable intervals during the year.

b) In our opinion, the procedures of physical verification of stocks followed by the management are reasonable and adequate in relations to the size of the company and nature of its business.

c) The Company has maintained proper record of inventory and no material discrepancies were noticed on the physical verification of inventory as compared to book records except minor discrepancies and the same have been dealt with in the books of accounts.

4. On the basis of our examination of stocks we are satisfied that the valuation of stocks of finished goods, spare parts and raw material is fair and proper in accordance with the normally accepted accounting principles and is generally on the same basis as in the previous year.

5. The Company has not taken unsecured loans, (interest free) from companies, firms and other parties listed in the register maintained under Section 301 of the Companies Act, 1956. As explained, there is no company under the same management as the company within the meaning of Section 370 (1 -B) of the companies Act, 1956 which is not prejudicial to the interest of the company.

6. The Company has not given any loans and advance in the nature of loans to the employees except the temporary loans given to staff as per contractual obligation and the same are being recovered as per stipulation except minor delays.

7. In our opinion and explanations given to us, internal control procedures for the purchase of stores, raw materials including components, plant & machinery, equipments and other assets, and for the sale of goods are commensurate with the size of the company and nature of its business.

8. There are no transaction of purchase of goods and material and sale of goods, materials and services aggregation to Rs. 5.00 Lacs or more in respect of each party in pursuance of contracts for arrangements that need entered in the register maintained under section 301 of the Companies Act, 1956.

9. The Company has not accepted any deposit from public under section 58A & 58AA of the Act.

10. In our opinion the Company''s internal audit system commensurate with its size and nature its activities. However it require further strengthen. The Company has appointed chartered accountant to perform internal audit.

11. We are informed that the Central Govt, has prescribed the maintenance of cost records under section 209 (1)

(d) of the Companies Act, 1956 and the company has complied with provision of sec. 209 (1) (d) of the said Act.

12. As verified by us, the company is regularly depositing Employees'' State Insurance and Provident fund dues with appropriate authorities.

13. (a) As verified by us, there are no un-disputed amount payable in respect of income tax, wealth-tax, custom duty, sales-tax and excise duty, outstanding for a period of more than 6 months from the date they became payable.

(b) In respect of following disputed demand, the Company has filed appeals to various appropriate courts / Appeal let Authorities to seek justice and the same are pending for decision by appropriate authorities/ courts.

(i) Rajasthan Sales Tax demand of Rs 21,21,408/- (Assessment Year 2001-2002)

(ii) Rajasthan Sales Tax demand of Rs. 6,94,412/- (Assessment Year 2002-2003)

(C) The sales Tax Deptt. has challenged the decision (already decided in favor of the company) in the Rajasthan Tax Board for demand of Rs. 7,89,699/- for assessment year 1994-95

14. The Company is not sick unit under SICA.

15. In our opinion and to the best of the information and explanation given to us the company has taken secured loan car loan of Rs.485941 from the financial institutions and working capital loan from Bank of Rs 3838708.

16. The Company has not granted any loan and advances on the basis of pledge of shares, debentures and other securities. Accordingly clause 4 (xiii) of the order is not applicable.

17. In our opinion and to the knowledge and explanation given to us the Company is not a chit fund/ nidhi/ mutual benefit fund/ society. Accordingly clause 4 (xiii) is not applicable.

18. According to the information and explanation given to us, the Company is not dealing or trading in shares securities, debenture and other investment. Accordingly, clause 4(xiii) of the order is not applicable.

19. In our opinion and according to the information and explanations given to us, the Company has not given any guarantees for loan taken by others from bank or financial institutions.

20. According to the information and explanation given to us and on the basis of our examination of the books of account, the term loans obtained by the company in the past were applied for the purpose for which such loans were obtained.

21. According to the information and explanation given to us and on an the basis of our examination of the Balance Sheet of the Company, we are of the opinion that no fund raised on short - term basis have been used for long term investment. The Company has taken the car loan of Rs. 4,85,904/-

22. The Company has issued 3,15,000 fully convertible warrants of Rs.10/- each to promoter on preferential basis at a premium of Rs. 13/- per share i.e. Rs.23/- per warrant in 2011 out of which during the year 1,22,000 fully convertible warrants were converted into equity share capital in equal number of equity shares during the year. This issue is subject to approval of Bombay Stock Exchange which is still awaited.

23. The Company has not issued any debenture. Accordingly, cause 4(xix) of the order is not applicable.

24. The Company has not made any public issue, therefore, the clause of disclosure the end use of money raised by public issues is not applicable this year.

25. We have been informed that no employee of the company has misappropriated fund of the Company.

For R.R Khandelwal & Associates

Chartered Accountants

Place: Jaipur R.P. Khandelwal

Date: 30th May, 2013 Partner

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Mar 31, 2010

We have audited the attached Balance Sheet of M/s Continental Petroleums Limited, Jaipur as at 31st March 2010 and the Profit & Loss Account for the year ended on that date annexed and report that:-

"We conducted our Audit in accordance with Auditing Standards generally accepted in India. Those standards required 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 amount and disclosures in the financial statement. 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 dated 12th June 2003 issued by the Central Government in terms of Sub-Section (4A) of Section 227 of the Companies Act, 1956. We enclosed in the Annexure a statement on the matter specified in paragraph 4 and 5 of the said order.

2. Further to our comments in the Annexure referred to in a 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 purpose of our audit.

(b) Proper Books of Accounts as required by law have been kept by the Company so far as it appears from our examination of the books.

(c) The Balance Sheet and Profit & Loss Account referred to in this report are in agreement with the books of account.

(d) During the course of our audit we have not observed any adverse effect on the working of the Company.

(e) None of the Director of the Company are disqualified from the appointment as Director under 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 explanation given to us the said accounts read with the notes thereon given 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 profit & Loss Account of the Profit for the year ended on that date.

(ii) In the case of Balance Sheet of the state of affairs of the Company as at 31st March, 2010.

Annexure to the Auditors Report Referred to in paragraph1 above of even date:

1. The Company has maintained proper records showing full Particulars including quantitative details and situation of fixed assets. The fixed assets are being physically verified by the management under a phased programs of verification and no material discrepancies have been noticed on such verification.

2. The company has not disposed off substantial part of the fixed assets which affects the going concern of the company.

3. a) The inventorv has been physically verified by the management at reasonable intervals during the year.

b)In our opinion,the procedures of physical verification of stocks followed by the management are reasonable and adequate in relations to the size of the company and nature of its business.

c) The Company has maintained proper record of inventory and no material discrepancies were noticed on the physical verification of inventpry as compared to books records except minor discrepancies and the same have been dealt with in the books of account.

4. on the basis of our examination of stocks we are satisfied that the valuation of Stocks of finished goods,spare parts and raw materials is fair and proper in accordance with the normall accepted accounting principles and is generally on the same basis as in the previous year.

5.The company has not taken any unsecured loans,(interest free) from companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956. As explained, there is no Company under the same management as the company with in the meaning of section 370(1-B) of the Companies Act, 1956 which is not prejudicial to the interest of the company.

6.The company has not given any loans and advance in the nature of loans to the employees except the temporary loans given to staff as per contractual obligation and the same are being recovered as per stipulation except minor delays.

7. In our opinion and explanations given to us, internal control procedures for the purchase of stores, raw materials including components, plant & machinery, equipments and other assets, and for the sale of goods are commensurate with the size of the company and nature of its business.

8. There are no transactioonf purchaseo f goods and material and sale of goods, materials and servlces aggregation to Rs. 5.00 Lacs or more in respect of each party in pursuance of contracts for arrangements that need entered in the register maintained under section 301 of the Companies Act,1956.

9.The company has not accepted any deposit from public under Section 58A & 58AA of the Act,except unsecured loan of Rs.8,58,567/- taken from body corporate, promoters & Directors of the company.

10.ln our opinion the Companys internal audit system commensurate with its size and nature its activities.However it require further strengthen.

11. we are informed that the central govt. has not prescribed the maintenance of cost records under section 209 (1) (d) of the Companies Act 1956.

12. As verified by us, the companyis regularly depositing Employees State Insurance and Provident fund dues with appropriate authorities.

13. (a) As verified by us, there are no un-disputed amount payable in respect of income tax, wealth-tax, custom tax, sales tax and excise duty, outstanding for a period more than 6 months from the date they became payable.

(b) ln respect of following disputed demand, the company has filed appeals to various appropriate courts/ Appeallet Authorities to seek justice and the same are under process of finalization.

(i) Rajasthan Sales Tax demand of Rs.7,89,699- (Assessment Year 1994-95)

(ii) Rajasthan Sales Tax demand of Rs.21,21,408/-- (Assessment Year 2001-2002)

(iii) Rajasthan Sales Tax demand of Rs.6,94,4121- (Assessment Year 2002-2003)

14 The Company have accumulated losses at the end of the financial year Rs 7,14,714/- which is less than 50% of its net worth and also the Company has not incurred any cash losses in the current year as well as in the immediately preceding the financial year.

15. In our opinion and to the best of the information and explanation given to us the company has not taken any secured loan from any of the financial institutions except working capital loan from Bank.

16. The company has not granted any loan and advances on the basis of pledge of shares, debentures and other securities. Accordingly clause 4 (xiii) of the order is not applicable.

17. In our opinion and to the knowledge and explanation given to us the company is not a chit fund/ nidhi/ mutual benefit fund/ society. Accordingly clause 4 (xiii) is not applicable.

18. According to the information and explanation given to us, the company is not dealing or trading in shares securities, debenture and other investment. Accordingly, clause 4(xiii) of the order is not applicable.

19. In our opinion and according to the information and explanations given to us, the Company has not given any guarantees for loan taken by others from bank or financial institutions.

20. According to the information and explanation given to us and on the basis of our examination of the books of account, the term loans obtained by the company in the past were applied for the purpose for which such loans were obtained.

21. According to the information and explanation given to us and on an the basis of our examination of the Balance Sheet of the company, we are of the opinion that no fund raised on short term basis have been used for long term investment. Further funds generation from regular Hazardous Waste Management operation was Rs.2,51,70, 530/-. The company has repaid the Unsecured loan of Rs.15,46,276/-.

22. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the companies Act, 1956. Accordingly, clause 4(xviii) of the order is not applicable.

23. The Company has not issued any debenture. Accordingly, cause 4(xix) of the order is not applicable.

24. The Company has not made any public issue, therefore, the clause of disclosure the end use of money raised by public issues is not applicable this year.

25. We have been informed that no employee of the company has misappropriated fund of the company.

For R.P. Khandelwal & Associates Chartered Accountants

R.P. Khandelwal Partner

Place: Jaipur Date : 29th May 2010