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Auditor Report of Interlink Petroleum Ltd.

Mar 31, 2015

Report on the Financial Statements

We have audited the accompanying financial statements of Interlink Petroleum Ltd. ('The Company'), which comprises the Balance Sheet as at March 31,2015, the Statement of Profit and Loss and the Cash Flow Statement of the Company for the year then ended, and a summary of significant accounting policies and other explanatory information.

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 and presentation 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 maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 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

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 the matters which are required to be included in the audit report under the provisions of the Act, and the Rifles made there under. We conducted our audit 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 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 financial control relevant to the company's preparation of the financial statements that give a true and fair view in order to design audit procedures, that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the company has in place an adequate internal financial controls system over financial reporting and operating effectiveness of such controls. 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 financial statements. We believe that the audit evidence that we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

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 view in conformity with the accounting principles generally accepted in India, of the State of affairs of the company as at 31st March, 2015 and its losses and its cash flows for the year ended on that date.

Emphasis of Matters

We draw attention to the following matters in the Notes to the financial statements requiring emphasis by us. Our opinion is not qualified in respect of these matters.

1. Note No. 3(d) of the Financial Statements regarding non provision of interest on ECB Borrowings from Loyz Oil Pte Ltd. consequent to the waiver of interest.

2. Note No. 5(b) of the Financial Statements regarding non provision of interest on unsecured Borrowings.

3. Note No. 25 of the Financial Statements regarding Impact and Justification on the Assumption of Going Concern:

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's 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 matter specified in the Paragraph 3 & 4 of the order, to the extent applicable.

2. As required by section 143(3) of the Act, 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 purpose of our audit.

b) In our opinion proper books of accounts 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 and the cash flow statement dealt with by this report are in agreement with the books of accounts.

d) 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;

e) on the basis of the written representations received from the directors as on 31st March, 2015, taken on records by board of directors, none of the directors is disqualified as on 31st March, 2015, from being appointed as a director in terms of section 164(2) of the Act;

f) 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 has disclosed the impact of pending litigations on its financial position in its financial statements-Refer Note 31 to the financial statements;

ii. the company is not required to make any provisions under the applicable law or accounting standards, for material foreseeable losses, on long term contracts including derivative contracts;

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

The Annexure referred to in our Independent Auditors Report to the members of the company on the financial statements for the year ended 31st March, 2015, we report that:

I. In respect of fixed assets

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

(b) All fixed assets have been physically verified by the management during the year. 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. No material discrepancies were noticed on such verification.

II. In respect of inventory

(a) The Company is currently in the business of exploration and production of crude oil and natural gas from the oil and/or gas field(s), which is supplied as and when they are extracted. There is no storage of crude oil or natural gas available and hence physical verification of natural gas stock is not applicable. However, stores and spare parts have been physically verified by the management at reasonable intervals during the year.

(b) In our opinion and according to the information and explanation given to us, 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) In our opinion and according to the information and explanation given to us, the Company has maintained proper records of its inventory and no material discrepancies were noted on physical verification.

III. The According to the 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. Accordingly, the provisions of clause 3(iii)(a) and (b) of the Order are not applicable to the Company and hence not commented upon.

IV. In our opinion and according to information and explanations given to us, there is an adequate internal control system commensurate with the size of the company and the nature of its business with regard to purchase of fixed assets and sale of goods & services. During the course of audit, we have not observed any major weakness in the internal control system of the Company in respect of these areas.

V. The company has not accepted any deposits from the public.

VI. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, related to the extraction of crude oil and natural gas, and are of the opinion that pfima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.

VII. (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including income-tax, sales-tax, wealth-tax, service tax, customs duty, excise duty, value added tax, cess and other material statutory dues applicable to it. The provisions relating to provident fund employees' state insurance are not applicable to the Company.

(b) According to the records of the Company, the dues outstanding of income-tax, sales-tax, wealth-tax, service tax, customs duty, excise duty, value added tax and cess on account of any dispute, are as follows:

Name of the Statute Nature of the Dues Amount Period for which Forum where Rs. in Lacs amount Relates dispute is Pending

Income Tax Act 1961 Income Tax Penalty and Interest 37.33 A.Y. 2009-2010 ITAT, Ahmedabad

(c) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made thereunder.

VIII. The accumulated losses of the Company are more than fifty percent of its net worth. The company has incurred a cash loss of Rs.234.89 Lacs during the financial year covered by our audit and in the immediately preceding financial year the company had incurred cash Loss of Rs.140.21 Lacs.

IX. During the Year the ECB taken from DBS Bank in F.Y. 2010-11, F.Y. 2011-12 & F.Y. 2012-i3 of US$ 9 Million has been repaid by the Promoter Company (Loyz Oil Pte Ltd.) on behalf of the company and resultantly the refinancing of the same has been done by the Promoter Company, permission of which has already been taken from Reserve Bank of India. The company has not issued any debentures till 31st March, 2015.

X. According to the 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 and explanations given to us, the term loans have been applied by the company during the year for the purpose for which they were obtained.

XII. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management, we report that no material fraud on or by the Company has been noticed or reported during the year.

For Shirish Desai & Co.

Chartered Accountants

Firm Registration No. 112226W

Jaydeep A. Samani

Date : 30th May, 2015 (Partner)

Place: Noida Membership No.150207


Mar 31, 2014

We have audited the accompanying financial statements of Interlink Petroleum Ltd. (''The Company''), which comprise the Balance Sheet as at March 31, 2014, the Statement of Profit and Loss and the Cash Flow Statement of the Company for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

The Management is responsible for the preparation of these financial statements that give true and fair view of the financial position, financial performance and cash flow 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 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 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

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.

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, whetherdue 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, but not for the purpose of expressing an opinion on the effectiveness of the Company''s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient an 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 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;

a. In the case of the balance sheet, of the state of affairs of the Company as at March 31, 2014;

b. In the case of the statement of profit and loss, of the loss 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

As required by the Companies(Auditor''s Report) Order, 2003 (''the Order''), as amended, 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.

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, Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account;

iv) In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the Accounting Standards referredto in Sub-section(3C) of Section 211 of the Companies Act, 1956, read with General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act 2013; and

v) On the basis of the 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 interms of clause (g) of subsection (1) of section 274 of the Companies Act, 1956.

ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT

In our report to the member of Interlink Petroleum Limited (''the Company'') for the year ended 31st March 2014. We report that:

1. In respect of its fixed assets:

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

(b) The Company has a programme of verification of fixed assets to cover all the assets during the year, which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. Pursuant to the programme, certain fixed assets were physically verified by the Management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

(c) Fixed Assets disposed off during the year were not substantial, and therefore, do not affect the going concern assumption.

2. In respect of its inventories:

(a) The Company is currently in the business of exploration and production of crude oil and natural gas fromthe oil and/or gas field(s),which is supplied as and when they are extracted. There is no storage of crude oil or natural gas available and hence physical verification of natural gas stock is not applicable. However, stores and spare parts have been physically verified by the management at reasonable intervals during the year.

(b) In our opinion and according to the information and explanation given to us, the procedures 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) In our opinion and according to the information and explanation given to us, the Company has maintained proper records of its inventories and no material discrepancies noted on physical verification.

3. (a) According to the information and explanations given to us, the company had taken loan from one company, covered under register maintained under section 301 of the Companies Act, 1956.

i. The maximum amount outstanding during the year was Rs. 775.69 Lacs and the year end balance of such loan amounted to Rs. 775.69 Lacs.

ii. In our Opinion, the rate of interest and other terms and conditions on which the loan have been taken from the company covered under register maintained under section 301 of the act are not, prima facie, prejudicial to the interest of the company.

iii. The principal and interest amount are repayable over a period of three to five years.

iv. There are no overdue amounts of more than rupees one lac in respect of loans taken from the company covered under register maintained under section 301 of the act

(b) The company has not granted loan to any companybut given deposit to one party covered in register maintained under section 301 of the Companies Act 1956.

i. The maximum amount involved of deposit during the year was Rs. 330,000/- and yearend balance of deposit granted to such party was Rs. 330,000/-.

ii. The deposit has been given are prima facie not prejudicial to the interest of the company and deposit is receivable at the end of the lease period.

iii. The deposit given is receivable at the end of the lease period.

iv. There are no overdue amounts of more than Rupees one lac in respect of loan granted to the company covered in the register maintained under section 301 of the act.

4. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and nature of its business for purchase of inventory and 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 weaknesses in internal control system of the company.

5. (a) In our opinion and according to the information and the explanations given to us, the transaction made in pursuance of contracts or arrangements, that needed 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, for purchase of services made in pursuance of contracts or arrangements entered in to the Register in pursuance of Section 301 of Act and exceeding the value of Rupees Five Lacs in respect of each party during the year, no comparison of prices could be made available as the services are of special nature. There were no purchase of goods and materials, and sale of goods, materials during the year.

6. According to the information and the explanations given to us, the Company has not accepted any deposits within the meaning of Section: 58A and 58AA or any other relevant provisions of the Companies Act, 1956.

7. In our opinion the internal audit functions carried out during the year by a firm of Chartered Accountants appointed by the management have been commensurate with the size of the Company and nature of its business.

8. We have broadly reviewed the Cost record maintained by the company pursuant to the Companies (Cost Accounting Records) Rule, 2011prescribed by Central Government under section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie, the prescribed cost records have been maintained. We have however not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

9. (a) According to the information and explanations given to us in respect of statutory and other dues we are informed that the provisions of Employees'' Provident Fund Act & Employees'' State Insurance Act, 1948 are not applicable to the Company during the year. According to the records of the Company, undisputed statutory dues including Investors'' Education and Protection Fund, Income-tax, Sales-tax/ VAT, Wealth Tax, Custom Duty, Service Tax, Excise Duty, Cess, and other material statutory dues have been generally regularly deposited with the appropriate authorities. According to the information and explanations given to us, there is no undisputed amounts payable in respect of the aforesaid dues were outstanding as at March 31, 2014 for a period of more than six months from the date they become payable.

(b) According to information and explanations given to us, the following dues of income tax have not been depositedas on March 31, 2014 of by the company on account of disputes

Name of the Nature of the Amount Period for Forum where Statute Dues which dispute is Rs. In Lacs amount is Pending Relates

Income Tax Act Income Tax and 37.33 A.Y. 2009-10 CIT 1961 Interest (appeals) Vadodara

Income Tax Act Income Tax and 3.21 A.Y. 2010-11 CIT 1961 Interest (appeals) Vadodara

Income Tax Act Income Tax and 0.05 A.Y. 2011-12 ACIT 1961 Interest Vadodara (U/s 154)

10. The accumulated losses of the Company are not more than fifty percent of its net worth. The company has incurred a cash loss of ''140.21 Lacs during the financial year covered by our audit and in the immediately preceding financial year the company had incurred cash Loss of Rs. 61.66 Lacs.

11. Based on our audit procedures and according to information and explanations given to us, we are of the opinion that the company has not defaulted in repayment of dues to financial institutions and banks. The company has not issued any debentures till March 31, 2014.

12. 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.

13. In our opinion and according to the information and explanations given to us, the Company is not a chit fund or a nidhi / mutual benefit fund/society.

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

15. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

16. In our opinion and according to the information and explanations given to us, the term loanshave been applied by the company during the year for the purpose for which they were obtained.

17. According to information and explanations given to us and on an overall examination of the balance sheet of the Company, we report that, no funds raised on a short term basis, have been used for long term investment.

18. According to information and explanations given to us,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.

19. The Company has neither issued nor had any outstanding debentures during the year.

20. The Company has not raised any money by way of public issue during the year.

21. According to information and explanations given to us, no material fraud on or by the company has been noticed or reported during the course of our audit.

For, Shirish Desai & Co. Chartered Accountants (Firm Registration No. 112226W)

Date : May 28, 2014 Dilip K. Thakkar Place : NOIDA (Partner) Membership No. 031269


Mar 31, 2013

1. We have audited the accompanying financial statements of Interlink Petroleum Ltd. (''The Company''), which comprise The Balance Sheet as at March 31, 2013 and the Statement of Profit and Loss and the Cash Flow Statement of the Company for the year then ended, and a summary of significant accounting policies and other explanatory information.

2. Management is responsible for the preparation of these financial statements that give true and fair view of the financial position, financial performance and cash flow 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"). 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.

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.

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 the accounting policies used and the reasonableness of the accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient an appropriate to provide a basis for our audit opinion.

4. 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 present 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 March 31, 2013;

b. In the case of the statement of profit and loss, of the loss 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.

5. As required by the Companies (Auditor''s Report) Order, 2003 as amended, 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.

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 and Cash Flow Statement dealt with by this report are in

agreement with the books of account; iv) In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the

Accounting Standards referred to in Sub-section (3C) of Section 211 of the Companies Act, 1956; v) On the basis of the 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 TO THE INDEPENDENT AUDITORS'' REPORT EFERRED TO IN PARAGRAPH 5 OF OUR REPORT OF EVEN DATE

1. (a) The company has maintained Proper records of fixed assets 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, but 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. No material discrepancies were noticed on such verification.

(c) Fixed Assets disposed off during the year were not substantial, and therefore, do not affect the going concern assumption.

2. (a) The Company is currently in the business of exploration and production of crude oil and natural gas from the oil and/or gas field(s), which is supplied as and when they are extracted. However, since there has been no production of either oil or gas during the year under review, there is no storage of crude oil or natural gas available and hence physical verification of natural gas stock is not applicable. However, stores and spare parts have been physically verified by the management at reasonable intervals during the year.

(b) The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) The Company is maintaining proper records of inventories. Discrepancies noted on physical verification of inventories were not material and have been properly dealt with in the books of accounts.

3. (a) According to information and explanations given to us, the company had taken loan from one company, covered under register maintained under section 301 of the Companies Act, 1956.

i. The maximum amount outstanding during the year was Rs.668.37 Lacs and the year end balance of such loan

amounted toRs.679.87 Lacs. ii. In our opinion, the rate of interest and other terms and conditions on which the loan have been taken from the

company covered under register maintained under section 301 of the act are not, prima facie, prejudicial to the

interest of the company. iii. The principal and interest amount are repayable over a period of three to five years. iv. There are no overdue amounts of more than rupees one lac in respect of loans taken from the company covered under register maintained under section 301 of the act

(b) The company has granted loan to one company and given deposit to one party covered in register maintained under section 301 of the Companies Act 1956. i. The maximum amount of loan involved during the year wasRs.415,699/- and the yearend balance of loan isRs.NIL and maximum amount involved of deposit during the year was Rs.330,000/- and yearend balance of deposit granted to such party wasRs.330,000/-.

ii. The loan and deposit given is interest free and other terms and conditions on which the loan and deposit has been given are prima facie not prejudicial to the interest of the company and deposit is receivable at the end of the lease period. iii. In respect of loan given to subsidiary, the loan of Rs.415,699/- has been written off during the year. However, deposit given is receivable at the end of the lease period. iv. There is no overdue amounts of more than Rupees one lac in respect of loan granted to the company covered in the

register maintained under section 301 of the act.

4. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and nature of its business for purchase of inventory and 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 weaknesses in internal control system of the company in respect of these areas.

5. (a) In our opinion and according to the information and explanations given to us, the transaction made in pursuance of Lontracts or arrangements, that needed 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, for purchase of services made in pursuance of contracts or arrangements entered in to the Register in pursuance of Section 301 of Act and exceeding the value of Rupees Five Lacs in respect of each party during the year, no comparison of prices could be made available as the services are of special nature. There were no purchase of goods and materials, and sale of goods, materials and services during the year.

6. The company has not accepted any deposits within the meaning of Section: 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public.

7. In our opinion the internal audit functions carried out during the year by a firm of Chartered Accountants appointed by the management have been commensurate with the size of the Company and nature of its business.

8. We have broadly reviewed the books of accounts maintained by the company pursuant to the rules made by the Central Government for the maintenance of cost records under section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained.

9. (a) According to the information and explanations given to us in respect of statutory and other dues we are informed

that the provisions of Employees'' Provident Fund Act & Employees'' State Insurance Act, 1948 are not applicable to the Company during the year. According to the records of the Company, undisputed statutory dues including Investors'' Education and Protection Fund, Income-tax, Sales-tax/ VAT, Wealth Tax, Custom Duty, Service Tax, Excise Duty, Cess, and other material statutory dues have been generally regularly deposited with the appropriate authorities. According to the information and explanations given to us, there is no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March, 2013 for a period of more than six months from the date of becoming payable. (b) According to the information and explanations given to us, no disputed amounts payable in respect of, wealth-tax, sales-tax/ vat, Customs duty, excise duty, service tax and cess were in arrears, as at 31st March, 2013. However, according to information and explanations given to us, the following dues of income tax have not been disposed of by the company on account of disputes

10. The accumulated losses of the Company are not more than fifty percent of its net worth. The company has incurred a cash loss of Rs.61.66Lacs during the financial year covered by our audit and in the immediately preceding financial year the company had incurred cash Loss of 18.93 Lacs.

11. Based on our audit procedures and according to information and explanations given to us, we are of the opinion that the company has not defaulted in repayment of dues to financial institutions and banks. The company has not issued any debentures till 31st March, 2013.

12. According to the information and explanations given to us and based on the documents and records produced before us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion the Company is not a chit fund or a nidhi / mutual benefit fund/society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the Company.

14. In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly the provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the Company.

15. Based on the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

16. According to the information and explanations given to us the company has obtained term loan in form of External Commercial Borrowing (ECB). The Term Loan raised during the year has been applied for the purpose for which they were raised.

17. According to information and explanations given to us and on an overall examination of the balance sheet of the Company, we report that, no funds raised on a short term basis, have been used for long term purpose.

18. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956.

19. The Company has neither issued nor had any outstanding debentures during the year.

20. The Company has not raised any money by way of public issue during the year.

21. Based on the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per information and explanations given to us, we report that no fraud on or by the company has been noticed or reported during the year.

For, Shirish Desai & Co.

Chartered Accountants

(Firm Registration No. 112226W)

Dilip K. Thakkar

Date : May 23, 2013 (Partner)

Place : NOIDA Membership No. 031269


Mar 31, 2012

1. We have audited the accompanying financial statements of Interlink Petroleum Ltd. ('The Company'), which comprise the Balance Sheet, as at 31st March, 2012 and the Statement of Profit and Loss and the Cash Flow Statement of the Company for the year then ended, and a summary of significant accounting policies and other explanatory information.

2. Management is responsible for the preparation of these financial statements that give true and fair view of the financial position, financial performance and cash flow of the Company in accordance with the financial principles generally accepted in India, including accounting standard referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the act"). 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.

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.

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, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient an appropriate to provide a basis for our audit opinion.

4. In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the significant accounting policies and notes on accounts give the information required by the Companies Act, 1956 in the manner so required and present 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 the Statement of Profit and Loss, of the loss 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.

5. As required by the Companies (Auditor's Report) Order, 2003 as amended by Companies (Auditor's Report) (Amendment) Order, 2004 (together 'The Order') issued by the Central Government Of India in terms of sub- section (4A) of Section 227 of the Companies Act, 1956, and on the basis of information and explanation given to us, and the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

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 and Cash Flow Statement dealt with by this report are in agreement with the books of account;

iv) In our opinion, the Balance Sheet, Statement of Profit and Loss 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, subject to the qualifications & notes to accounts;

V) On the basis of the written representations received from the directors as on 31 st 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.

ANNEXURE TO THE AUDITORS' REPORT

REFERRED TO IN PARAGRAPH 5 OF OUR REPORT OF EVEN DATE

1) In Respect of its fixed assets:

a. Proper records of fixed assets are maintained.

b. Physical verification of the fixed assets has been conducted by the management during the year. There were no discrepancies between physical count and fixed assets as per the records.

c. In our opinion and according to information and explanations given to us, the Company has not made any substantial disposals of its fixed assets during the year.

2) In Respect of its inventories

a. The Company is currently in the business of exploration and production of crude oil and natural gas from the oil and/or gas field(s), which is supplied as and when they are extracted. However, since there has been no production of either oil or gas during the year under review, there is no storage of crude oil or natural gas available and hence physical verification of natural gas stock is not applicable. However, stores and spare parts have been physically verified by the management at reasonable intervals during the year.

b. In our opinion and according to the information and explanations given to us, the procedures 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. In our opinion and according to the information and explanations given to us, the Company is maintaining proper records of inventories. The discrepancies noticed on verification between the physical stocks and the book records were not material.

3) In respect of loans, secured or unsecured, granted or taken by the Company to/from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956;

a. According to information and explanations given to us, the Company had not taken any loan from companies, firm or other parties covered under register maintained under section 301 of the Companies Act, 1956. According, the provisions of clause 4(iii) (a) to (d) of the order are not applicable to the Company and hence not commenced upon.

b. The Company has granted loan to one Company and given deposit to one party covered in register maintained under section 301 of the Companies Act 1956. The maximum amount involved during the year was Rs. 669,734/- and the year-end balance of loan and deposit granted to such parties was Rs. 669,734/-. The loan and deposit given is interest free and other terms and conditions on which the loan and deposit has been given are prima facie not prejudicial to the interest of the company and receivable at the end of the lease period. In respect of loan given, whether the amount has been received regularly or not cannot be commented upon, as there is no stipulation as regards to the repayment of the amount, However, deposit given is receivable at the end of the lease period.

4) In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the Company and nature of its business for purchase of inventory and 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 weaknesses in internal control system of the Company in respect of these areas.

5) In respect of transaction covered under section 301 of the Companies Act, 1956;

a. In our opinion and according to the information and explanations given to us, the transaction made in pursuance of contracts or arrangements, that needed 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, for purchase of services made in pursuance of contracts or arrangements entered in to the Register in pursuance of Section 301 of Act and exceeding the value of Rupees Five Lacs in respect of each party during the year, no comparison of prices could be made available as the services are of special nature. There were no purchase of goods and materials, and sale of goods, materials and services during the year.

6) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits within the meaning of Section: 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the Companies(Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public.

7) In our opinion and according to the information and explanations given to us the internal audit functions carried out during the year by a firm of Chartered Accountants appointed by the management have been commensurate with the size of the Company and nature of its business.

8) We have broadly reviewed the books of accounts maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have however not made a detailed examination of cost records with a view to determine whether they are accurate or complete.

9) According to the information and explanations given to us in respect of statutory and other dues:

a. We are informed that the provisions of Employees' Provident Fund Act & Employees' State Insurance Act, 1948 are not applicable to the Company during the year. According to the records of the Company, undisputed statutory dues including Investors' Education and Protection Fund, Income- tax, Sales-tax/ VAT, Wealth Tax, Custom Duty, Service Tax, Excise Duty, Cess, and other material statutory dues have been generally regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March, 2012 for a period of more than six months from the date of becoming payable.

b. According to the information and explanations given to us, no disputed amounts payable in respect of Income-Tax, Wealth-Tax, Sales-Tax/ VAT, Customs Duty, Excise Duty, Service Tax and Cess were in arrears, as at 31st March, 2012.

10) The accumulated losses of the Company are not more than fifty percent of its net worth. The Company has incurred a cash loss of 18.93 Lacs during the financial year covered by our audit and in the immediately preceding financial year the Company had incurred cash Loss of "43.45Lacs. In arriving at the accumulated losses and net worth, we have considered the qualifications, which are quantifiable in the audit report of the years to which such losses pertains.

11) Based on our audit procedures and according to information and explanations given to us, we are of the opinion that the Company has not defaulted in repayment of dues to financial institutions and banks. The Company has not issued any debentures till 31st March, 2012.

12) 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 to her securities.

13) In our opinion the Company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

14) In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. As such the provisions of clause 4(xiv) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

15) Based on examination of documents and records made available and on the basis of information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

16) According to the records of the Company, the Company has obtained term loan in form of External Commercial Borrowing (ECB). The Term Loan raised during the year have been applied for the purpose for which they were raised.

17) According to information and explanations given to us and on an overall examination of the balance sheet of the Company, in our opinion, there are no funds raised on a short term basis, which has been used for long term purpose.

18) The Company has not made any preferential allotment of shares to parties and companies covered under Section 301 of the Companies Act, 1956.

19) The Company has neither issued nor had any outstanding debentures during the year.

20) The Company has not raised any money by way of public issue during the year.

21) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company which is material in amount and nature has been noticed or reported during the course of our audit



For Shirish Desai & Co. Chartered Accountants (Firm Registration No.112226W)

Dilip K. Thakkar Partner Membership No. 31269

Place : Noda Date : 13th July, 2012


Mar 31, 2011

1. We have audited the attached Balance Sheet of Interlink Petroleum Ltd. ('The Company') as at 31st March, 2011 and the Profit and Loss Account and the Cash Flow Statement of the Company for the year Ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. These Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on 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 the 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 as amended by Companies (Auditor's Report) (Amendment) Order, 2004 (together 'The Order') issued by the Central Government Of India in Terms of sub- section (4A) of Section 227 of the Companies Act, 1956, and on the basis of information and explanation given to us, and the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

Further to our comments in the Annexure referred in paragraph (3) 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 appears from our examination of those books;

iii) The Balance Sheet and 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, subject to the qualifications & notes to accounts;

v) On the basis of the written representations received from the directors as on31st March 2011 and taken on record by the Board of Directors, were port that none of the directors is disqualified as on 31st March, 2011 from being appointed as a director in terms of clause (g) of sub section (1) of section 274 of the Companies Act, 1956.

vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the significant accounting policies and notes on accounts give the information required by the Companies Act, 1956 in the manner so required and present 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, 2011;

b) In the case of the profit and loss account, of the loss 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.

ANNEXURE TO THE AUDITOR'S REPORT REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE

1) In Respect of its fixed assets:

a. Proper records of fixed assets are maintained.

b. Physical verification of the fixed assets has been conducted by the management during the year. There were no discrepancies between physical count and fixed assets as per the records.

c. In our opinion and according to information and explanations given to us, the company has not made any substantial disposals of its fixed assets during the year.

2) In Respect of its inventories

a. The Company is currently in the business of exploration and production of crude oil and natural gas from the oil and/or gas field(s), which is supplied as and when they are extracted. However, since there has been no production of either oil or gas during the year under review, there is no storage of crude oil or natural gas available and hence physical verification of natural gas stock is not applicable. However, stores and spare parts have been physically verified by the management at reasonable intervals during the year.

b. In our opinion and according to the information and explanations given to us, the procedures 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. In our opinion and according to the information and explanations given to us, the Company is maintaining proper records of inventories. The discrepancies noticed on verification between the physical stocks and the book records were not material.

3) In respect of loans, secured or unsecured, granted or taken by the Company to/from companies, firms or other parties covered in the register maintained under Section 301of the Companies Act, 1956;

a. The company had taken loan from one company covered under registered maintained under section 301 of the companies act 1956. The Maximum amount involved during the year was 9.57 Lacs and the year end balance of the loans taken is NIL. The maximum balance during the year was Rs. 9.57 Lacs. The loan taken was interest free and other terms and conditions on which the loan has been taken are not prima facie prejudicial to the interest of the company. In respect of loan taken, whether the amount has been repaid regularly or not cannot be commented upon, as there is no stipulation as regards to the repayment of the amount.

b. The company has given deposits to one party and loan to one wholly owned subsidiary of the company covered in register maintained under section 301 of the Companies Act 1956. The maximum amount involved during the year was Rs.5.48 lacs and the year end balance of loan and deposits granted to such parties was Rs.5.48 lacs. The loan and deposit given are interest free and other terms and conditions on which the loan and deposit has been given are prima facie not prejudicial to the interest of the company. In respect of loan given, whether the amount has been received regularly or not cannot be commented upon, as there is no stipulation as regards to the repayment of the amount. However, the deposit given is receivable at the end of the lease period.

4) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and nature of its business for purchase of inventory and 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 weaknesses in internal control system.

5) In respect of transaction covered under section 301 of the Companies Act, 1956;

a. In our opinion and according to the information and explanations given to us, the transaction made in pursuance of contracts or arrangements, that needed 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, for purchase of services made in pursuance of contracts or arrangements entered in to the Register in pursuance of Section 301 of Act and exceeding the value of Rupees Five Lacs in respect of each party during the year, no comparison of prices could be made available as the services are of special nature. There were no purchase of goods and materials, and sale of goods, materials and services during the year.

6) In our opinion and according to the information and explanations given to us, the company has not accepted any deposits within the meaning of Section: 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public.

7) In our opinion and according to the information and explanations given to us by the Company has an internal audit system commensurate with the size of the Company and nature of its business.

8) We have been informed that the Central Government has not prescribed maintenance of cost records under Section 209(1) (d) of the Companies Act, 1956 for the product of the company for the financial year under review. However, the same has been made applicable from the next financial year and the compliance shall be reported in the next year's audit report.

9) According to the information and explanations given to us in respect Of statutory and other dues:

a. We are informed that the provisions of Employees' Provident Fund Act & Employees' State Insurance Act,1948 are not applicable to the Company during the year. According to the records of the Company, undisputed statutory dues including Investors' Education and Protection Fund, Income-tax, Sales-tax/ VAT, Wealth Tax, Custom Duty, Service Tax, Excise Duty, Cess, and other material statutory dues have been generally regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March, 2011 for a period of more than six months from the date of becoming payable.

b. According to the information and explanations given to us, no disputed amounts payable in respect of income-tax, wealth-tax, sales-tax/ vat, Customs duty, excise duty, service tax and cess were in arrears, as at31st March, 2011.

10) The accumulated losses of the Company are not more than fifty percent of its net worth. The company has incurred a cash loss of Rs. 43.45 Lacs during the financial year covered by our audit and in the immediately preceding financial year the company had not incurred any cash Loss. In arriving at the accumulated losses and net worth, we have considered the qualifications, which are quantifiable in the audit report ofthe yearsto which such losses pertains.

11) Based on our audit procedures and according to information and explanations given us, we are of the opinion that the company has not defaulted in repayment of dues to financial institutions and banks. The company has not issued debentures till 31st March, 2011.

12) 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. Therefore, the provisions of clause 4 (xii) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

13) In our opinion the Company is not a chit fund or a nidhi / mutual benefit fund/society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

14) In our opinion, the Company is not dealing or trading in shares, securities, debentures and other investments. As such the provisions of clause 4(xiv) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

15) Based on examination of documents and records made available and on the basis of information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

16) According to the records of the Company, the company has obtained term loan in form of External Commercial Borrowing (ECB). The Term Loan raised during the year have been applied for the purpose for which they were raised.

17) According to information and explanations given to us and on an overall examination of the balance sheet of the Company, in our opinion, there are no funds raised on a short term basis, which has been used for long term purpose.

18) The Company has not made any preferential allotment of shares to parties and companies covered under Section 301 of the Companies Act, 1956.

19) The Company has neither issued nor had any outstanding debentures during the year.

20) The Company has not raised any money by way of public issue during the year.

21) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company which is material in amount and nature has been noticed or reported during the course of our audit

For, Shirish Desai & Co.

Chartered Accountants

(Registration No.112226W)

Place : Noida Dilip. K. Thakkar

Date : 11/07/2011 Partner

Membership No. 31269


Mar 31, 2010

1. We have audited the attached Balance Sheet of Interlink Petroleum Limited (The Company) as at 31st March, 2010 and the Profit and Loss Account and the Cash Flow Statement of the Company for the year ended on that date 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. These Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on 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 the 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 as amended by Companies (Auditors Report) (Amendment) Order, 2004 (together The Order) issued by the Central Government Of India in terms of sub- section (4A) of Section 227 of the Companies Act, 1956, and on the basis of information and explanation given to us, and the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we give in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said order.

Further to our comments in the Annexure referred in paragraph (3) 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 appears from our examination of those books;

iii) The Balance Sheet and 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, subject to the qualifications & notes to accounts;

v) On the basis of the 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 the significant accounting policies and notes on accounts give the information required by the Companies Act, 1956 in the manner so required and present 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 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

1) In Respect of its fixed assets:

a. Proper records of fixed assets are maintained.

b. Physical verification of the fixed assets has been conducted by the management during the year. There were no discrepancies between physical count and fixed assets as per the records.

c. The company has disposed off some of its fixed assets during the year. As per the information and explanation given to us on our enquiries the disposal of assets during the year was not substantial so as to have an impact on the operations of the company or affect its going concern.

2) In Respect of its inventories

a. The Company is currently in the business of extraction of crude oil and natural gas from the field, which is supplied as and when it is extracted. So there is no storage of crude oil or natural gas available and hence physical verification of natural gas stock is not applicable. However, stores and spare parts have been physically verified by the management at reasonable intervals during the year.

b. In our opinion and according to the information and explanations given to us, the procedures 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. In our opinion and according to the information and explanations given to us, the Company is maintaining proper records of inventories. The discrepancies noticed on verification between the physical stocks and the book records were not material.

3) In respect of loans, secured or unsecured, granted or taken by the Company to/from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956;

a. The company has taken loan from M/s Jit Sun Investments Pte Limited Covered under registered maintained under section 301 of the companies act 1956. The opening balance of the same was Rs.12.33 Lacs and its closing balance is Rs.9.57 Lacs. The maximum balance during the year was Rs. 12.33 Lacs. The loan taken is interest free and other terms and conditions on which the loan has been taken are not prima facie prejudicial to the interest of the company. In respect of loan taken, whether the amount has been repaid regularly or not cannot be commented upon, as there is no stipulation as regards to the repayment of the amount.

b. The company has given deposits to one company and one party covered in register maintained under section 301 of the Companies Act 1956. The maximum amount involved during the year was Rs.4.74 lacs and the year end balance of loan and deposits granted to such parties was Rs.4.74 lacs. The loan and deposit given is interest free and other terms and conditions on which the loan and deposit has been given are prima facie not prejudicial to the interest of the company. In respect of loan given, whether the amount has been received regularly or not cannot be commented upon, as there is no stipulation as regards to the repayment of the amount. However, the deposit given is receivable at the end of the lease period.

4) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and nature of its business for purchase of inventory and 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 weaknesses in internal control system.

5) In respect of transaction covered under section 301 of the Companies Act, 1956;

a. In our opinion and according to the information and explanations given to us, the transaction made in pursuance of contracts or arrangements, that needed 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, for purchase of services made in pursuance of contracts or arrangements entered in to the Register in pursuance of Section 301 of Act and exceeding the value of Rupees Five Lacs in respect of each party during the year, no comparison of prices could be made available as the services are of special nature. There were no purchase of goods and materials, and sale of goods, materials and services during the year.

6) In our opinion and according to the information and explanations given to us, the company has not accepted any deposits within the meaning of Section: 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public.

7) In our opinion and according to the information and explanations given to us the internal audit functions carried out during the year by a firm of Chartered Accountants appointed by the management have been commensurate with the size of the Company and nature of its business.

8) We have been informed that the Central Government has not prescribed maintenance of cost records under Section 209(1) (d) of the Companies Act, 1956 for the product of the company.

9) According to the information and explanations given to us in respect of statutory and other dues:

a. We are informed that the provisions of Employees Provident Fund Act & Employees State Insurance Act, 1948 are not applicable to the Company during the year. According to the records of the Company, undisputed statutory dues including Investors Education and Protection Fund, Income-tax, Sales-tax/ VAT, Wealth Tax, Custom Duty, Service Tax, Excise Duty, Cess, Fringe Benefits Tax and other material statutory dues have been generally regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March, 2010 for a period of more than six months from the date of becoming payable.

b. According to the information and explanations given to us, no disputed amounts payable in respect of income-tax, wealth-tax, sales-tax/ vat, Customs duty, excise duty, service tax, fringe benefits tax and cess were in arrears, as at 31st March, 2010.

10) The accumulated losses of the Company are not more than fifty percent of its net worth. The company has not incurred a cash loss during the financial year covered by our audit and in the immediately preceding financial year the company had incurred the cash Loss amounting to Rs. 180.78 lacs. In arriving at the accumulated losses and net worth, we have considered the qualifications which are quantifiable in the audit report.

11) According to records of the company, the company has not borrowed from financial institutions/banks or has issued debentures till 31st March 2010. Hence, in our opinion the question of reporting on default in repayment of dues to financial institution/banks or debentures does not arise.

12) 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. Therefore, the provisions of clause

4 (xii) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

13) In our opinion the Company is not a chit fund or a nidhi / mutual benefit fund/society. Therefore, the provisions of clause

4(xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

14) In our opinion, the Company is not dealing or trading in shares, securities, debentures and other investments. As such the provisions of clause

4(xiv) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

15) Based on examination of documents and records made available and on the basis of information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

16) According to the records of the Company, the company has not obtained any term loans. Hence, comments under the clause are not called for.

17) According to information and explanations given to us and on an overall examination of the balance sheet of the Company, in our opinion, there are no funds raised on a short term basis, which has been used for long term purpose.

18) During the year, the Company has made preferential allotments of 6,520,000 equity shares of face value of Rs. 10 each at a price of Rs. 33 per share. In our opinion, the price of Rs. 33 per share at which the allotment has been made is as per the applicable regulations and is not prejudicial to the interest of the company.

19) The Company has neither issued nor has any outstanding debentures during the year.

20) The Company has not raised any money by way of public issue during the year.

21) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company which is material in amount and nature has been noticed or reported during the course of our audit

For, Shirish Desai & Co.

Chartered Accountants

(Registration No 112226W)

Dilip K. Thakkar

Partner

Membership No.31269

Place : Noida Date: 10/06/2010

 
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