Auditor Report of Mercury Ev-Tech Ltd.

Mar 31, 2023

INDEPENDENT AUDITOR''S REPORT

To the Members of Mercury EV Tech Limited (Formerly known as Mercury Metal Limited)
Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Mercury EV Tech
Limited ("the Company”), which comprise the Balance Sheet as at 31st March 2023, the
Statement of Profit and Loss (including Other Comprehensive Income), the Statement of
Changes in Equity and the Statement of Cash Flows for the year ended on that date, and notes
to the financial statements, including a summary of significant accounting policies and other
explanatory information (hereinafter referred to as ''''the standalone financial statements").

In our opinion and to the best of our information and according to the explanations given to us,
the aforesaid standalone financial statement gives the information required by the Companies
Act, 2013 (the "Act”) in the manner so required and give true and fair view in conformity with the
Indian Accounting Standards prescribed under section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS”) and other accounting
principles generally accepted in India, of the state of affairs of the Company as at March 31,
2023 and its profit, total comprehensive income, changes in equity and its cash flows for the
year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under
section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards 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 Code of
Ethics issued by the Institute of Chartered Accountants of India together with the ethical
requirements that are relevant to our audit of the financial statements under the provisions of
the Companies Act, 2013 and the Rules there under, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the Code of Ethics. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion on the Standalone Financial Statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the standalone financial statements of the current period. These
matters were addressed in the context of our audit of the standalone financial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters. We have determined that there are no key audit matters to be communicated in our
report.

The Company''s Board of Directors is responsible for the other information. The other
information comprises the information included in the Board''s Report including Annexures to
Board''s Report, Management Discussion and Analysis, Corporate Governance and
Shareholder''s Information, but does not include the standalone 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 whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit or otherwise appears to be
materially misstated. If, based on the work we have performed, we conclude that there is a
material misstatement of this other information; we are required to report that fact. We have
nothing to report in this regard.

Responsibility of Management for Standalone 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 standalone financial
statements that give a true and fair view of the state of affairs (financial position), profit or loss
(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 specified under section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015, as amended.

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.

Those Board of Directors are 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 financial statements as a
whole are 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 assu^yi ce,

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 these financial statements.

As part of an audit in accordance with Standards on Auditing, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:

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

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

• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management''s 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 statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor''s
report. However, future events or conditions may cause the Company to cease to
continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a reasonably
knowledgeable user of the financial statements may be influenced. We consider quantitative
materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating
the results of our work; and (ii) to evaluate the effect of any identified misstatements in the
financial statements.

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

We also provide those charged with governance with a statement that we have complied with

relevant ethical requirements regarding independence, and to communicate with them all

98

relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor''s report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

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

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

a. We have sought and obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our audit.

b. In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books.

c. The Standalone Balance Sheet, the Standalone Statement of Profit and Loss
(including other comprehensive income), the Standalone Statement of Changes in
Equity and the Standalone Statement of Cash Flows 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 Ind
AS specified under Section 133 of the Act read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended

e. On the basis of written representations received from the directors as on 31st
March 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March 2023 from being appointed as a director in terms of
Section 164(2) of the Act.

f. With respect to the adequacy of the internal financial controls with reference to
standalone financial statements of the Company and the operating effectiveness
of such controls, refer to our separate Report in "Annexure B”.

g. With respect to the other matters to be included in the Auditor''s Report in
accordance with the requirements of section 197(16) of the Act, as amended:

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

(B) With respect to the other matters to be included in the Auditor''s Report in acc^t ance

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

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

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

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

d) (i) The management has represented that, to the best of its knowledge and belief,
no funds have been advanced or loaned or invested (either from borrowed funds
or share premium or any other sources or kind of funds) by the Company to or in
any other persons or entities, including foreign entities ("Intermediaries”), with the
understanding, whether recorded in writing or otherwise, that the Intermediary
shall:

• directly or indirectly lend or invest in other person or entities identified in any
manner whatsoever ("Ultimate Beneficiaries”) by or on behalf of the Company

or

• provide any guarantee security or the like to or on behalf of the Ultimate
Beneficiaries.

(ii) The management has represented, that, to the best of its knowledge and belief,
no funds have been received by the Company from any persons or entities,
including foreign entities ("Funding Parties”), with the understanding, whether
recorded in writing or otherwise, that the Company shall:

• directly or indirectly, lend or invest in other persons or entities identified in any
manner whatsoever ("Ultimate Beneficiaries”) by or on behalf of the Funding Party
or

• provide any guarantee, security or the like from or on behalf of the Ultimate
Beneficiaries; and

(iii) Based on such audit procedures as considered reasonable and appropriate in
the circumstances, nothing has come to our notice that has caused us to believe
that the representations under sub clause (d) (i) and (d) (ii) contain any material
mis-statement.

e) The Company has not declared dividend or paid during the year by the Company.

For M Sahu & Co

Chartered Accountants

Firm Registration No: 130001W

Partner (Manojkumar Sahu) Date: 26th May, 2023

Membership No: 132623 Place: Vadodara

UDIN: 23132623BGXVGP7785

---

Mar 31, 2014

We have audited the accompanying financial statements of M/s. MERCURY METALS LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March 2014, the Statement of Profit & Loss and Cash Flow Statement for the year then 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 General circular 8/ 2014 dated April 4,2014 ,issued by the ministry of corporate affairs. The 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 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 accounting policies used and the reasonableness of the accounting estimates made by managements, 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 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 Balance Sheet, of the state of affairs of the Company as at 31st March 2014;

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

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

Emphasis of Matter

We draw attention to Note 19 & 22 of the financial statements regarding Non provision of interest payable & diminuation in value of inventory of shares of listed companies respectively. Company has not made provision for Interest Payable to Charotar Nagrik Sahakari Bank Limited towards their OTS. Further, company has not provided for diminution in value of inventories of listed companies as per Accounting Standard - 13 ''Accounting for Investments''. Our opinion is not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. Provision for the Companies (Auditor''s Report) Order, 2003 ("the Order") 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.

2. As acquired by section 227(3) of the Act subject to our comments in Emphasis of Matter , we report that:

a. We have obtain 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 and Statement of Profit and Loss dealt with by this report are in agreement with the books of account;

d. 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;

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

ANNEXURE TO INDEPENDENT AUDITOR''S REPORT

(Referred to paragraph 1 under the heading of "Report on Other Legal and Regulatory Requirements" of our report of even date.)

(i) As per information and explanation provided to us, The company has no fixed assets during the year.

(ii) (a) As explained to us, since stock of the company comprises shares in Demat as well as physical certificate form and other traded goods has been physically varified by the management during the year & stock items at the end of the year verified with respect to corresponding Demat statement and physical certificate at the end of the year.

(b) The procedures explained to us, which are followed by the management, for such physical verification of the inventories are in our opinion, reasonable and adequate in relation to the size of the company and nature of its business.

(c) On the basis of our examination of the inventory records of the company, we are of the opinion that the company is maintaining proper records of its inventory. No material discrepancies were noticed on physical verification of the inventory as compared to book records.

(iii) According to the information and explanation given to us, the Company has not granted/taken any unsecured loans to/from companies & firms listed in the register maintained under section 301 of the Companies Act 1956.

(iv) In our opinion and according to the information and explanation given to us, there are adequate internal control procedures commensurate with the size of company and nature of its business with regard to purchase of trading goods and with regard to sale of goods.

(v) In our opinion and according to the information and explanations given to us, there is no transaction made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act, 1956 and aggregating during the year to 500000 or more in respect of any party maintained under section 301 of the Companies Act 1956, have been so entered.

(vi) The Company has not accepted any deposits from Public and hence the provision of section 58A and 58AA of the Act and rules framed there under are not applicable to the Company.

(vii) In our opinion, the intrnal audit system of the Company is commensurate with its size and natue of its business.

(viii) In our opinion and according to the information and explanations given to us, maintenance of cost records has not been prescribed by the Central Government under section 209(1)(d) of the Companies Act, 1956 for any products of the company.

(ix) (a) According to the information and explanation given to us and the books and records examined by us, there are no undisputed amounts payable in respect of Income-tax, Sales-Tax outstanding as at 31st March 2014 for a period exceeding six months from the date they became payable.

(b) On the basis of our examination of the documents and records, there is no disputed amount pending in respect of any statutory dues.

(x) In our opinion Company has registered for a period not less than five year, its accumulated losses at the end of the financial year 19,50,96,952 and during previous year it has incurred cash losses of 5,32,100 And in immediately preceding financial year it was Rs. 4,78,030.

(xi) As per information and explanation provided to us, The company has rearrange in OTS scheme of the secured loan payable to Charotar Nagarik Sahakari Bank Ltd. But installments due of 202.24 Lacs for the year 2013-14 under OTS scheme are not paid by the company.

(xii) As explained to us the company has not granted any loans on the basis of the security by way of pledge of shares, debentures or any other securities.

(xiii) In our opinion, the company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore, the provisions of the clause (xiii) of paragraph 4 of the order are not applicable.

(xiv) In our opinion, the company has maintained proper records of transactions and contracts in respect of dealing and trading in shares, securities, debentures and other investments and that timely entry have been made therein. The shares and other securities have been held by comapny in its own name.

(xv) According to the information and explanation given to us and representation made by the management, the company has not given any guarantee for loans taken by others from any banks or financial institution.

(xvi) In our opinion the term loans have been applied for the purpose for which there were raised.

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

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

(xix) On the basis of the records and documents examined by us, the Company has not issued any secured debentures during the year.

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

(xxi) According to the information and explanation given to us and to the best of our knowledge and belief no fraud on or by the company, has been noticed or reported by the company during the year.

For AMBALAL PATEL & CO. Chartered Accountants Firm Reg. No. : 100305W

CA Ratan Jethaliya Ahmedabad Partner 22/05/2014 M.No. 47398

---

Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of MERCURY METALS LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March , 2013, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

The Company''s Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards 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.

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 the 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 the 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 the 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 the 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 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 31st March, 2013;

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

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

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") 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.

2. As required by Section 227(3) of the Act, subject to our comment in below paragraph 3, 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 purposes of our audit.

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

(c) The Balance Sheet, 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 Balance Sheet, Statement of Profit and Loss, and the Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Act.

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

3. a) Valuation of investments at cost as stated in note no. 7

b) Non Provision of Book Debts as stated in Note No.8

c) Non Provision of Interest as stated in Note No.18

ANNEXURE REFERRED TO IN PARAGRAPH (1) OF OUR REPORT OF EVEN DATE

Annexure referred to in paragraph 3 of the Auditor''s Report of even date to the members of MERCURY METALS LIMITED on the financial statement for the year ended 31st March,2013.

1 As per information and explanation provided to us, The company has no fixed assets during the year.

2 As explained to us, the inventories have been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable having regard to the size of the Company and the nature of its business.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 the business.The company has maintained proper records of inventory. As explained to us, there were no material discrepancies noticed on physical verification of the having regard to the size of the operations of the Company.

3 We are informed that the Company has not taken any loans, secured or unsecured, from/to companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956.

4 As per information and explanation provided to us, There are no transaction of Purchase of Fixed assets and inventory or sale of goods, hence no internal control required.

5 In our opinion and according to the information and explanations given to us, there is no transaction made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act, 1956 and aggregating during the year to Rs.500000 or more in respect of any party.

6 As per information and explanation provided to us, The Company has not accepted any deposits from the public hence provision required Us 58A & 58AA are not applicable.

7 In our opinion, the internal audit system of the Company is commensurate with its size and nature of its business.

8 As per information and explanation provided to us, The Central Government has not prescribed maintenance of cost Records under Section 209 (1) (d) of the Companies Act, 1956.

9 According to the information and explanations given to us, there are no undisputed statutory dues payable respect of Provident Fund, Investor Education and Protection Fund, Employees state Insurance, Income-tax Sales-tax, Wealth Tax, Custom Duty, Excise duty, cess which are outstanding as at 31st March,2013 for a period of more than six months from the date they became payable.

10 In our opinion Company has registered for a period not less than five year, its accumulated losses at the end of the financial year Rs. 17,39,31,455.69 and during previous year it has incurred cash losses of Rs. 4,78,030.54 And in immediately preceding financial year it was NIL.

11 As per information and explanation provided to us, The company has rearrange in OTS scheme of the secured loan payable to Charotar Nagarik Sahakari Bank Ltd. But Installments due of Rs. 202.24 Lacs for the year 2012-13 under OTS scheme are not paid by the company.

12 According to information and explanation provided 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 and in our opinion, adequate documents and records are not required to maintained.

13 The company is not chit Fund, Nidhi and Mutual Fund society; hence requirements of item (Xiii) of paragraph 4 of the order are not applicable to the company.

14 According to the information and explanations given to us, proper records have been maintained in respect of transactions and contracts, in shares, securities, debentures and other investments and timely entries have been made therein. The shares and other securities have been held by the company in its own name.

15 According to the information and explanations given to us, the company has not given any guarantee for loans taken by others during the year.

16 As per information provided to us, The company has not taken any term loans and hence requirement of reporting regarding application of term loans does not arise.

17 In our opinion, No short term loan was applied for long term investment.

18 We are informed that the company has not made any preferential allotment of shares to companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956.

19 As per information provided to us, The company has not issued debentures and hence requirement of reporting regarding creation of securities in respect of debentures issued does not arise.

20 According to information and explanation provided to us, The company has not raised any money by public issue during the year.

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



For, Badrilal Punglia & Co.

Chartered Accountant



Sd/-

B. L. Punglia

Proprietor

Membership No. : 034230

Place:Ahmedabad FRN. : 100827W

Date :29/05/2013 PAN : AEHPP2017D

---

Mar 31, 2012

We have audited the attached Balance Sheet of MERCURY METALS LIMITED as at 31st MARCH,2012 and the Statement of Profit and Loss 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.

We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditor's Report) Order, 2003 issued by the Central Government of India in terms of sub- section (4A) of section 227 of the Companies Act, 1956, and on the basis of the books and records of the company as we considered appropriate and according to the information and explanation give to us, we enclosed 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 to above, 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 purposes of our audit;

(b) In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of those books;

(c) The Balance Sheet and Statement of Profit and Loss dealt with by this report are in agreement with the books of account;

(d) In our opinion, the Balance Sheet and the Statement of Profit and Loss dealt by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

(e) On the basis of written representations received from the directors, as on 31st March, 2012, and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March,2012 from being appointed as a Director in terms of clause (g) of sub-section(1) of section 274 of the Companies Act, 1956;

(f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read Note No 8 no provision made for doubtful Debts and together with the Significant Accounting Policies and other notes thereon gives the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India;

(a) in the case of the Balance Sheet, of the state of affair 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;

(c) in the case of the Cash Flow Statement of the cash flow of the company for the year ended on that date

Annexure referred to in paragraph 3 of the Auditor's Report of even date to the members of MERCURY METALS on the financial statement for the year ended 2012.

1 The Company has maintained proper records of fixed assets showing full particulars including quantitative details and location. The company has a regular programmed of physical verification of its fixed assets which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. In accordance with this programmed, certain fixed assets were physically verified by Management during the year and no material discrepancies were noticed on such verification.During the company has disposed off fixed assets held by the company.

2 As explained to us, the inventories have been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable having regard to the size of the Company and the nature of its business.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 the business.The company has maintained proper records of inventory. As explained to us, there were no material discrepancies noticed on physical verification of the having regard to the size of the operations of the Company.

3 We are informed that the Company has not taken any loans, secured or unsecured, from/to companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956.There was outstanding balance of ' 16600 granted to a company listed in the register maintained us 301. During the year said balance was written off.

4 In our opinion, and according to the information and explanation given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods. In our opinion and according to the information and explanations given to us, there is no continuing failure to correct major weakness in internal control.

5 In our opinion and according to the information and explanations given to us, there is no transaction made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act, 1956 and aggregating during the year to ' 500000 or more in respect of any party.

6 The Company has not accepted any deposits from the public hence provision required Us 58A & 58AA are not applicable.

7 In our opinion, the internal audit system of the Company is commensurate with its size and nature of its business.

8 The Central Government has not prescribed maintenance of cost Records under Section 209 (1) (d) of the Companies Act, 1956.

9 According to the information and explanations given to us, there are no undisputed statutory dues payable respect of Provident Fund, Investor Education and Protection Fund, Employees state Insurance, Income-tax Sales-tax, Wealth Tax, Custom Duty, Excise duty, cess which are outstanding as at 31st March,2012 for a period of more than six months from the date they became payable except C.S.T. ' 4,74,582 Lacs , sales tax outstanding ' 10658, which was written off during the year.

10 Company has registered for a period not less than five year, its accumulated losses at the end of the financial year ' 17,34,53,425.15 and during previous year, it was ' 155289782.14.

11 The company has rearrange in OTS scheme of the the secured loan payable to Charotar Nagarik Sahakari Bank Ltd. Which was default in previous year.

12 The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities and in our opinion, adequate documents and records are not required to maintained.

13 The company is not chit Fund, Nidhi and Mutual Fund society; hence requirements of item (Xiii) of paragraph 4 of the order are not applicable to the company.

14 According to the information and explanations given to us, proper records have been maintained in respect of transactions and contracts, in shares, securities, debentures and other investments and timely entries have been made therein. The shares and other securities have been held by the company in its own name.

15 According to the information and explanations given to us, the company has given guarantee for loans taken by Rupangi Impex Ltd.(company under liquidation) amounting to ' 738 Lacs from bank or financial institutions.

16 The company has not taken any term loans and hence requirement of reporting regarding application of term loans does not arise.

17 No short term loan was applied for long term investment.

18 We are informed that the company has not made any preferential allotment of shares to companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956.

19 The company has not issued debentures and hence requirement of reporting regarding creation of securities in respect of debentures issued does not arise.

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

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

For, Badrilal Punglia & Co.

Chartered Accountant

B. L. Punglia

Proprietor

Membership No. : 034230

Place : Ahmedabad FRN. : 100827W

Date : 13/08/2012 PAN : AEHPP2017D