Auditor Report of IEL Ltd.

Mar 31, 2015

1. We have audited the accompanying financial statements of Indian Extractions Limited ("the Company"), which comprise the Balance Sheet as at 31 March 2015, the Statement of Profit and Loss, 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

2. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements, that give a true and fair view of the financial position, 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 (as amended). 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 controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

3. Our responsibility is to express an opinion on these financial statements based on our audit.

4. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

5. 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 misstatement.

6. 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 internal financial controls 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 the 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.

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

Opinion

8. 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 31 March 2015, and its profit and its cash flows for the year ended on that date.

Other Matters

9. The financial statements of the Company for the year ended 31 March 2014 were audited by another auditor, Messer''s Thingna & Contractor who expressed an unmodified opinion on those statements on 9 May 2014.

Report on Other Legal and Regulatory Requirements

10. As required by the Companies (Auditor''s Report) Order, 2015 ("the Order") issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.

11. 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 account as required by law have been kept by the Company so far as it appears from our examination of those books;

c. the financial statements dealt with by this report are in agreement with the books of account;

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 (as amended);

e. on the basis of the written representations received from the directors as on 31 March 2015 and taken on record by the Board of Directors, none of the directors is disqualified as on 31 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 does not have any pending litigations which would impact its financial position;

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

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



Annexure to the Independent Auditor''s Report of even date to the members of Indian Extractions Limited, on the financial statements for the year ended 31 March 2015.

Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit, we report that:

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

(b) The fixed assets have been physically verified by the management during the year and no material discrepancies were noticed on such verification. In our opinion, the frequency of verification of the fixed assets is reasonable having regard to the size of the Company and the nature of its assets.

(ii) The Company does not have any inventory. Accordingly, the provisions of clause 3(ii) of the Order are not applicable.

(iii) In respect of Loans, Secured or Unsecured, granted by the Company to Companies, Firms or other parties covered in the register maintained under Section 189 of the Companies Act 2013, according to information and explanations given to us, The company has granted unsecured loan to one companies covered in the register maintained under section 189 of the Companies Act, 2013. The maximum amount outstanding during the year is 5,200,386/- and the year-end balance is '' Nil.

(a) In respect of aforesaid loans granted, whether the amount (principal as well as interest) has been repaid/paid regularly or not cannot be commented upon, as there is no stipulation as regard to the repayment/payment of the amount.

(b) Since there is no terms of repayment as mentioned in (a) above, hence this clause is not applicable.

(iv) In our opinion, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets. During the course of our audit, no major weakness has been noticed in the internal control system in respect of these areas.

(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.

(vi) To the best of our knowledge and belief, the Central Government has not specified maintenance of cost records under sub-section (1) of Section 148 of the Act, in respect of Company''s products/ services. Accordingly, the provisions of clause 3(vi) of the Order are not applicable.

(vii)(a) Undisputed statutory dues including provident fund, employees'' state insurance, income- tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues, as applicable, have generally been regularly deposited with the appropriate authorities, though there has been a slight delay in a few cases. Further, no undisputed amounts payable in respect thereof were outstanding at the year-end for a period of more than six months from the date they became payable.

(b) The dues outstanding in respect of income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax and cess on account of any dispute, are as follows:



Name of the Nature Amount Amount Period to statute of (Rs. In Paid which the dues lacs) Under amount Protest relates (Rs. In Lacs)

Gujarat sales VAT 35.91 2.85 F.Y Tax 1991-92

Income Tax Act, Tax on 83.58 Nil F.Y 1961 Long 2011-12 term Capital gain



Name of the Forum where statute dispute is pending

Gujarat sales Gujarat Sales Tax Tax Tribunal, Ahmedabad

Income Tax Act, Assistant 1961 Commissioner of Income Tax

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. Accordingly, the provisions of clause 3(vii)(c) of the Order are not applicable.

(viii) In our opinion, the Company has accumulated losses at the end of the financial year and it has incurred cash losses in the current and the immediately preceding financial year.

(ix) In our opinion, the Company has not defaulted in repayment of dues to any financial institution or a bank or to debenture-holders during the year.

(x) The Company has not given any guarantees for loans taken by others from banks or financial institutions. Accordingly, the provisions of clause 3(x) of the Order are not applicable.

(xi) In our opinion, the Company has applied the term loans for the purpose for which these loans were obtained.

(xii) No fraud on or by the Company has been noticed or reported during the period covered by our audit.

For Walker Chandiok & Co LLP per Adi Sethna (Formerly Walker, Chandiok & Co) Partner Chartered Accountants Membership No.: 108840 Firm''s Registration No.: 001076N/N500013

Mumbai 29 May, 2015

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Mar 31, 2014

We have audited the accompanying financial statements of Indian Extractions Limited ("the Company"), which comprises the Balance Sheet as at 31st March 2014, the statement of profit and 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 the General Circular 15/2013 dated 13 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, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the 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

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, we report that:

a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

c) the balance sheet, statement of profit and loss and 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 cash flow statement comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.;

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

ANNEXURE TO INDEPENDENT AUDITORS' REPORT

ANNEXURE REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF INDIAN EXTRACTIONS LIMITED ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2014

(i) Fixed Assets

a) The company has maintained fixed asset register showing full particulars, including quantitative details and situation of fixed assets.

b) As explained to us, the management, at reasonable intervals, has physically verified fixed assets and no serious discrepancies were noticed on such verification, as compared with the book records.

c) In our opinion and according to the information and explanations given to us, the disposals of assets during the year were not substantial so as to have an impact on the operations of the company, or affect its going concern.

(ii) Inventory

a) As explained to us, the inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

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

c) In our opinion and according to the information and explanations given to us and on the basis of records of inventory produce to us, the Company is maintaining proper records of inventory. No discrepancies were noticed on physical verification of inventory as compared to book records.

(iii) Loans granted to or taken from related persons

a) According to the information and explanations given to us, the company has granted unsecured loan to two companies listed in the register maintained under section 301 of the Companies Act, 1956. The maximum amount outstanding during the year was Rs. 59,44,593/- and the year-end balance of such loans amounted to Rs. 52,00,386/-. Other than the above, the Company has not granted any loans, secured or unsecured, to companies, firms or parties covered in the register maintained under Section 301 of the Act

b) In respect of loan given by the company, the rate of interest and other terms and conditions are not prima facie prejudicial to the interest of the company.

c) At the year end, the outstanding balance of such loan taken aggregated Rs. 1,00,000/-, and the maximum amount involved during the year was Rs. 1,00,000/-. In our opinion in respect of loans taken by the company, the terms & conditions are not prima facie prejudicial to the interest of the company.

d) There are no stipulations as regards repayment and interest.

(iv) Internal Control

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 the nature of its business for the purchase of fixed assets and for the sale of goods and services. Further, on the basis of our examination of the books and records of the Company carried out in accordance with the auditing standards generally accepted in India and according to the information and explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control system.

(v) Related Party Transactions

a) In our opinion and according to the information and explanations given to us, we are of the opinion, that the transactions that need to be entered into the register maintained in pursuance of 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 transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rs. Five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time, where such market price is available.

(vi) Deposits from Public

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

(vii) Internal Audit

The Company does not have a formal internal audit system. However, in our opinion there are adequate internal control procedures commensurate with the size and nature of its business.

(viii) Cost Records

The central government has prescribed maintenance of cost records under section 209(1) (d) of the Companies Act, 1956 in respect of the products, manufactured by the company. However, during the year since the Company has discontinued its manufacturing operations, the same have not been maintained.

(ix) Statutory Dues

(a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing the undisputed statutory dues including provident fund, income-tax, sales-tax, service tax, customs duty, excise duty, cess and other material statutory dues as applicable with the appropriate authorities.

(b) According to the information and explanations given to us and the records of the Company examined by us, there were no undisputed amounts payable in respect of Provident Fund, Investor Education and Protection Fund, Employee State Insurance, Income-tax, Sales- tax, Wealth tax, Service tax, Custom duty, Excise duty, cess, Value Added Tax and other material statutory dues in arrears as at 31st March, 2014 for a period of more than six month from the date they became payable.

(c) According to the information and explanations given to us, details of dues of sales tax, income tax, customs duty, wealth tax, excise duty, service tax and cess which have not been deposited as on 31st March, 2014 on account of any dispute are given below.

Name of Nature of Amount Period to which Statute the Dues (Rs.in Lakhs) the Amount

Sales Tax Sales Tax 35.91 A.Y.1991-92 Act Demands



Name of Statute the Forum where relates dispute is pending

Sales Tax Act Gujarat Sales Tax Tribunal, Ahmedabad

(x) Net Worth

In our opinion, the accumulated losses of the company are more than fifty percent of its net worth at the end of the financial year. However, it has incurred cash losses both in current year as well as in the immediately preceding financial year.

(xi) Repayment of dues

In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to financial institutions or banks or debenture holders during the year.

(xii) Loans granted

The company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) Chit Fund

In our opinion and according to the information and explanations given to us, the provisions of any special statute applicable to Chit Fund, Nidhi or Mutual benefit fund/society are not applicable to the company.

(xiv) Investment company

In our opinion, the Company is not as dealer or trader in shares, securities, debentures and other investments. Hence, this clause is not applicable to the company.

(xv) Guarantee issued

In our opinion and according to the information and explanations given to us, the company has not given any guarantee for loans taken by others from bank or financial institutions during the year.

(xvi) Utilisation of term loans

In our opinion and according to the information and explanations given to us, the company has not obtained any term loans during the year. Hence, this clause is not applicable.

(xvii) Utilisation of short-term loans

In our opinion and according to the information and explanation given to us and on an overall examination of the balance sheet, no funds raised on a short-term basis have been used for long-term investment.

(xviii) Preferential Allotment

In our opinion and according to the information and explanation 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 during the year.

(xix) Debentures

According to the information and explanations given to us and the records examined by us, no debentures have been issued by the company during the year.

(xx) End use of Public Issue

According to the information and explanations given to us, the Company has not raised funds by public issue during the year.

(xxi) Frauds

During the course of our examination of the books and records of the Company, carried out in accordance with the auditing standards generally accepted in India, and according to the information and explanations given to us, we have neither come across any instance of fraud by the Company, noticed or reported during the year, nor have we been informed of such case by the management.

For THINGNA & CONTRACTOR Chartered Accountants Firm Registration No. 110963W

Sunil Modi Partner

M. No. 042562 Mumbai: 09th May, 2014

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Mar 31, 2012

1. We have audited the attached Balance Sheet of India Extractions Limited ("the company") as at 31st March 2012, the Statement of Profit and Loss and cash flow statement 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the companies (Auditor's Report) Order, 2003, issued by the central government of India in terms of section 227 (4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to in paragraph 3 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 maintained by the Company, so far as appears from our examination of those books.

c) 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.

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 except for the matters contained in the paragraph 4(e) below.

e) The Company has during the year incurred Retrenchment Compensation aggregating to Rs.43,02,523/-, on the termination of the employees on account of discontinuation of manufacturing operations, the same has been considered by the Company as Deferred Expenses which is to be written off over a period of five years. The aggregate net amount of deferred expenses is overstating the profit by Rs. 39,54,984/-.

f) Subject to our examination and observation in paragraph 4 (e), in our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

i) In the case of the balance sheet, of the state of affairs of the Company as at 31th March, 2012;

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

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

5. On the basis of the 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 31s1 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 REFERRED TO IN PARAGRAPH 3 UNDER THE HEADING "REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF INDIAN EXTRACTIONS LIMITED ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH 2012

(i) Fixed Assets

a) The company has maintained fixed asset register showing full particulars, including quantitative details and situation of fixed assets;

b) The fixed assets were physically verified during the year by the Management in accordance with a regular program of verification which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanation given to us, no material discrepancies were noticed on such verification.

c) During the year the Land, Building, Plant & Machinery of the Company pertaining to the manufacturing operations has been sold off due to discontinuance of this manufacturing operations. In our opinion and according to the information and explanations given to us, substantial part of fixed assets was been disposed of by the Company during the year; and such disposal, in our opinion, would not affect the going concern status of the company in view of implementations of future plans and new business by the company.

(ii) Inventory

a) The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable.

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

c) On the basis of our examination of the inventory records, in our opinion, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material.

(iii) Loans granted to or taken from related persons

a) The Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 301 of the Act. Hence clause (b), (c) and (d) are not applicable to company.

b) The company has taken unsecured loans from an individual covered in the register maintained under section 301 of the Companies Act, 1956. At the year end, the outstanding balance of such loan taken aggregated Rs. 50,000/-, and the maximum amount involved during the year was Rs. 90,50,000/-. In our opinion in respect of loans taken by the company, the terms & conditions are not prima facie prejudicial to the interest of the company. There are no stipulations as regards repayment and interest.

(iv) Internal Control

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 the nature of its business for the purchase of fixed assets and for providing the services. Further, on the basis of our examination of the books and records of the Company carried out in accordance with the auditing standards generally accepted in India and according to the information and explanations given to us, we have neither , come across nor have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control system.

(v) Related Party Transactions

(a) In our opinion and according to the information and explanations given to us, the contracts or arrangements that need to be entered into the register in pursuance of Section 301 of the Act have been so entered.

(b) In our opinion, and according to the information and explanations given to us transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rs. Five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to the prevailing market prices M the relevant time.

(vi) Deposits from Public

According to the information and explanation given to us the company has complied with the provision of section 58A, 58AA or any other relevant provision of the Companies Act, 1956 and the Rules framed there under with regard to deposits accepted from public. We are informed that no Order has been passed by the Company Law Board or the Reserve Bank of India or any Court or any other Tribunal in this respect.

(vii) Internal Audit

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

(viii) Cost Records

The central government has prescribed maintenance of cost records under section 209(1) (d) of the Companies Act, 1956 in respect of the products, manufactured by the company. However, during the year since the Company has discontinued its manufacturing operations, the same have not been maintained.

(ix) Statutory Dues

(a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing the undisputed statutory dues including provident fund, investor education and protection fund, employees' state insurance, income-tax, sales-tax, wealth tax, service tax, customs duty, excise duty, cess and other material statutory dues as applicable with the appropriate authorities.

(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues of income-tax, sales-tax, wealth tax, service tax, customs duty, excise duty and cess as at March 31, 2012 which have not been deposited on account of a dispute.

(c) According to the information and explanations given to us, details of dues of sales tax, income tax, customs duty, wealth tax, excise duty, service tax and cess which have not been deposited as on 31st March, 2012 on account of any dispute are given below.

Name of Nature of Amount Period to Forum where Statue the Dues (Rs. In which the dispute is Lakhs) amount pending releates

Sales Tax Sales Tax 33.34 A.Y. 1991-92 Gujarat Sales Act Demands Tax Tribunal, Ahmedabad

(x) Net Worth

In our opinion, the accumulated losses of the company are more than fifty percent of its net worth at the end of the financial year. The company has incurred cash profit in the end of the current financial year as well as in the immediately preceding financial year.

(xi) Repayment of dues

According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of dues to any financial institution or bank or debenture holders as at the balance sheet date.

(xii) Loans granted

The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, paragraph 4(xii) of the Order is not applicable.

(xiii) Chit Fund

The provisions of any special statute applicable to chit fund / nidhi / mutual benefit fund/societies are not applicable to the Company.

(xiv) Investment Company

In our opinion, the Company is not a dealer or trader in shares, securities, debentures and other investments. Hence, this clause is not applicable.

(xv) Guarantee issued

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 during the year.

(xvi) Utilization of term loans

According to the information and explanations given to us, the Company has not obtained term loans during the year. Hence, this clause is not applicable.

(xvii) Utilization of short-term loans

On the basis of an overall examination of the balance sheet of the Company, in our opinion and according to the information and explanations given to us, there are no funds raised on a short-term basis which have been used for long- term investment and vice versa.

(xviii) Preferential Allotment

During the year, The Company has made preferential allotment of 90,000 Zero Coupon Redeemable Preference Shares of Rs. 100/- each aggregating to Rs.90,00,000/- on a private placement and preferential basis to parties and companies covered in the register maintained under Section 301 of the Act during the year.

(xix) Debentures

The Company has not issued any debentures during the year. Hence, this clause is not applicable.

(xx) End use of Public Issue

The company has not raised funds by way of public issue and hence this clause is not applicable.

(xxi) Frauds

During the course of our examination of the books and records of the Company, carried out in accordance with the auditing standards generally accepted in India, and according to the information and explanations given to us, we have neither come across any instance of fraud by the Company, noticed or reported during the year, nor have we been informed of such case by the management.

For THINGNA & CONTRACTOR

Chartered Accountants

Firm Registration No. 110963W



Sunil Modi

Partner

Membership No. 042562

Place: Mumbai

Date: 24 May, 2012.

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Mar 31, 2010

1. We have audited the attached Balance Sheet of Indian Extractions Limited ("the Company") as at 31st March, 2010, the Profit and Loss Account and also the Cash Flow Statement 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 IndistThose 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 sttest basis, evidence support- ing 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 streasonable basis for our opinion

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

4. Further to our comments in the Annexure referred to in paragraph 3 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 the books;

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

d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act. 1956 except for matters contained in paragraph e) below;

e) Certain items of inventory have been valued at amounts which are higher than their respective cost. which is nofin accordance with Accounting Standard 2 "Valuation on Inventories". Consequently, the values of inventory as at 31st March. 2010 are higher by Rs.42 57 lacs and loss for the year is lower by the like amount

f) Without qualifying our opinion, we draw attention to note 14 of Schedule 18 regarding the accounts of the Company being prepared on stgoing concern basis

g) Subject to our observation in paragraph 4(e) above, in our opinion and to the best of our information and according to the explanations given to us. the said accounts give the information required by the Companies Act, 1956, in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India:

i) in the case of the balance sheet, of the state of affairs of the Company as at 31st March, 2010;

ii) in the case of the profit and loss account, of the loss for the year ended on that date; and

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

5 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 appbinted as stdirector in terms of clause (g) of sub-section (1) of Section 27.4 of the Companies Act, 1956.



ANNEXURE TO THE AUDITORSREPORT

Re: Indian Extractions Limited

(Referred to in Paragraph 3 of our report of even date) .

i) The nature of the Companys business /activities during the year has been such that clauses (xiii) and (xiv) of paragraph 4 of the Companies (Auditors Report) Order, 2003 are nofapplicable to the Company for the year.

ii) a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

b) The fixed assets were physically verified during the year by the Management in accordance with stregular program of verification which, in our opinion, provides foi pnysica) verification of all the fixed assets at reasonable intervals. According to the information and explanation given to us,no material discrepancies were noticed on such verification

c) The Company has nofdisposed off stsubstantial part of fixed assets during the year.

iii) a) The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

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 its inventory. The discrepancies noticed on verification between the physical stocks and the book records were nofmaterial.

iv) a) There are no loans, secured or unsecured given .to companies, firms, or other parties covered in the register maintained under Section 301 of the Companies Act, 1956 and hence clause (a), (b), (c) and (d) of clause (iii) are nofapplicable to the Company.

t b) The Company has taken unsecured loans from three parties covered in the Register maintained under

Section 301 of the Companies Act, 1956. At the year-end-, the outstanding balance of such loans taken aggregated Rs. 2.55,00,000 /- and the maximum amount involved during theyear was Rs. 2.58,00.000/-.

c) In our opinion, the rate of interest and other terms and conditions of such loans are nofprimstfacie, prejudicial to the interest of the Company.

d) The Company is generally regular in repaying the principal amounts as stipulated and has been regular in the payment of interest. -

v) In our opinion and according to the information and explanations given to us, the internal control system is in the process of being strengthened to be commensurate with the size of the Company and the nature of its business with regard to the purchase of inventory and fixed assets and with regard to sale of goods and services, in respect of maintenance of appropriate documentation thereof

vi) a) According to the information and explanation given to us, we are of the opinion that the particulars of contracts/arrangements that need to be entered into the Register maintained under section 301 of the Companies Act, 1956 have been so entered.

b) According to the information and explanations given to us, there are no transactions, which are in excess of Rs 5 lacs in respect of each party covered under section 301 of the Companies Act, 1956 [excluding loans reported under paragraph (iv) above]. Hence, clause (v) (b) of paragraph 4 of the Companies (Auditors Report) Order, 2003 is nofapplicable

vii) Acoording to the information and explanations given to us, the Company has complied with the provisions of section 58A, 58Astor any other relevant provisions of the Companies Act, 1956 and the Rules framed there under with regard to deposits accepted from public. We are informed that no Order has been passed by the Company Law Board or the Reserve Bank of Indistor any Court or any other Tribunal in this respect

viii) In our opinion, the Company has an internal audit system commensurate with the size of the Company and nature of its business.

ix) According to the information and explanations given to us the Central Government has nofprescribed maintenance of Cost Records under Section 209 (1) (d) of the Companies Act, 1956 in respect of products manufactured by the Company.

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

a) The Company has generally been regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income-tax, Sales-tax, Wealth tax, Service tax, Custom duty, Excise duty, cess, Value Added Tax and any other statutory dues with the appropriate authorities during the year, where applicable.

b) There were no undisputed amounts payable in respect of Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income-tax, Sales-tax, Wealth tax, Service tax, Custom duty. Excise duty, cess. Value Added Tax and other material statutory dues in arrears as at 31st March. 2010 for stperiod of more than six months from the date they became payable.

c) According to the information and explanations given to us. details of dues of sales tax, income tax. customs duty, wealth tax. excise duty, service tax and cess which have nofbeen deposited as on 31«t March, 2010 on account of any dispute are given below:





Name of Nature of Amount Period to which Forum where

Statute the Dues (Rs. In Lakhs) the amount relates dispute is pending

Sales Tax Act Sales Tax Demands 27.92 A.Y. 1991-92 Gujarat Sales Taxal, Ahmedabad.

Central Excise Act Excise Duty 232.22 A.Y 2003-04 Commissioner of Central Excise, Rajkot





xi) In our opinion, the accumulated losses of the Company are more than fifty per cent of its net worth- The Company has incurred cash losses during the financial year covered by our audit as well as during the immediately preceding financial year

xii) In our opinion and according to the information and explanations given to us, the Company has nofdefaulted in the repayment of dues to banks. There are no dues to financial institutions or debenture holders

xiii) According to the information and explanations given to us, the Company has nofgiven any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

xiv) According to the information and explanations given to us, the Company has nofgiven any guarantee for loans taken by others from bank or financial institutions.

xv) To the best of our knowledge and belief, and according to the information and explanations given to us. the term loan taken during the year has been applied for the purpose for which, it was obtained.

xvi) In our.opinion and according to the information and explanations given to us and on an overall examination of the Balance Sheet, we report that funds raised on short-term basis have been used during the year for long-term investment to the extent of Rs. 3,12,28;560/-.

xvii) The Company has nofmade any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956.

xviii) The Company has nofissued any debentures during the year.

xix) The Company has nofraised any money by way of public issues during the year.

xx) 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 was noticed or reported during the year.



For DELOITTE HASKINS AND SELLS

Chartered Accountants

(Registration No. 117366W)

A. B. Jani

Partner

Membership No. : 46488

Mumbai,

Dated: 29th May, 2010