Auditor Report of Trombo Extractions Ltd.

Mar 31, 2014

1. We have audited the attached Balance Sheet of RAJANI EXTRACTIONS LIMITED, as at 31st March 2014, and the Profit and Loss Account of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company''s Management. Our responsibility is to express an opinion on these financial statements based on our audit

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

3. As required by the Companies (Auditor''s Report) Order, 2003 issued by the central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956. We enclosed in annexure statement on the matters specified in paragraph 4 and 5of the said order.

4. Further to our comments, we report that.

(a) We have obtained all the information and explanations, which to the best of our knowledge and believe 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 examinations of those books:

(c) The Balance-Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of accounts

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

(e) On the basis of written representation received from the directors, as on 31st March, 2014 and taken on record by the Board of Directors, we report that none of directors are 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.

(f) In our opinion and to the best of our information and according to the explanation given to us, the said financial statements together with the notes there on and attached there on give in the prescribed manner the information required by the Companies Act, 1956. 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 affairs of the Company as at 31st March, 2014 and:

ii) In the case of the Profit and Loss Account of the Loss for the year ended on that date:

ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 3 of our report of even date)

1. (A) The Company is not having any fixed assets.

(B) Since, The Company was not having any fixed assets during the year hence clause regarding its physical verification is not applicable.

2. The Company is not having any stock during the period under review and therefore such clause is not application to it.

3. (a) The Company had taken loan from four persons covered in the register maintained under section 301 of the Companies Act, 1956. The minimum amount involved during the year was of Rs. 20.97 Lacs and the year-end Balance of Loans taken from such persons was of Rs. 20.97 Lacs. The Company has not given loan to any party covered in the register maintained under section 301 of the Companies Act, 1956.

(b) In our opinion and according to the information and explanation give into us, the rate of interest and other terms and conditions on which loans have been taken from Companies, firms or other parties Listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the Company.

(c) The Company is regular in repaying the principal amounts as stipulated and has also been regular in the payment of interest as stipulated.

(d) There is no over due amount of loans taken from Companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business. Further on the basis of our examination of the books and records of the Company and according to the information and explanations given to us, we have neither come across nor have been informed of any instances of major weaknesses in the aforesaid internal control procedures.

5. (a) To the best of knowledge and belief 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 under section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rupees 5 Lacs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market price at he relevant time.

6. The Company has not accepted any deposits the public within the meaning of section 58A and 58AA of the Companies Act, 1956 and the rule framed there under.

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

8. The Central Government of India has not prescribed the maintenance of cost records under clause (d) of sub-section (1) of section 209 of the Act, for any of the products of the Company.

9. The company does have any liability towards sales tax in view of recently pronounced decision.

11. 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.

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

13. The Provision of any special statute applicable to chit Fund/Nidhi/Mutual Benefit Fund/ Societies are not applicable to the Company.

14. In our opinion, the Company is not a dealer in shares, securities, debentures and other investments.

15. 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 banks or financial institutions during the year.

16. The Company has not obtained any term loan.

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

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

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

20. The other clauses of paragraph 4 of the Companies (Auditor''s Report) Order, 2003 are not applicable in the case of the Company for the current year, since in our opinion there is no matter arises to be reported in the aforesaid order in respect of such clauses.

FOR S.N.KABRA & CO. CHARTERED ACCOUNTANTS PLACE:-INDORE DATE:- 29/05/2014 Sd/- (S.N.KABRA) PARTNER

---

Mar 31, 2013

1. We have audited the attached Balance Sheet of RAJANI EXTRACTIONS LIMITED, as at 31st March 2013, and the Profit and Loss Account of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company''s Management. Our responsibility is to express an opinion on these financial statements based on our audit

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

3. As required by the Companies (Auditor''s Report) Order, 2003 issued by the central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956. We enclosed in annexure statement on the matters specified in paragraph 4 and 5of the said order.

4. Further to our comments, we report that.

(a) We have obtained all the information and explanations, which to the best of our knowledge and believe 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 examinations of those books:

(c) The Balance-Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of accounts

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

(e) On the basis of written representation received from the directors, as on 31st March, 2013 and taken on record by the Board of Directors, we report that none of directors are 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 Companies Act, 1956.

(f) In our opinion and to the best of our information and according to the explanation given to us, the said financial statements together with the notes there on and attached there on give in the prescribed manner the information required by the Companies Act, 1956. 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 affairs of the Company as at 31st March, 2013 and:

ii) In the case of the Profit and Loss Account of the Loss for the

year ended on that date:

ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 3 of our report of even date)

1. (A) The Company is not having any fixed assets.

(B) Since, The Company was not having any fixed assets during the year hence clause regarding its physical verification is not applicable.

2. The Company is not having any stock during the period under review and therefore such clause is not application to it.

3. (a) The Company had taken loan from four persons covered in the register Maintained under section 301 of the Companies Act, 1956. The minimum amount involved during the year was of Rs. 16.36 Lacs and the year-end Balance of Loans taken from such persons was of Rs. 16.36 Lacs. The Company has not given loan to any party covered in the register maintained under section 301 of the Companies Act, 1956.

(b) In our opinion and according to the information and explanation give into us, the rate of interest and other terms and conditions on which loans have been taken from Companies, firms or other parties Listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the Company.

(c) The Company is regular in repaying the principal amounts as stipulated and has also been regular in the payment of interest as stipulated.

(d) There is no overdue amount of loans taken from Companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business. Further on the basis of our examination of the books and records of the Company and according to the information and explanations given to us, we have neither come across nor have been informed of any instances of major weaknesses in the aforesaid internal control procedures.

5. (a) To the best of knowledge and belief 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 under section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rupees 5 Lacs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market price at he relevant time.

6. The Company has not accepted any deposits the public within the meaning of section 58A and 58AA of the Companies Act, 1956 and the rule framed there under.

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

8. The Central Government of India has not prescribed the maintenance of cost records under clause (d) of sub-section (1) of section 209 of the Act, for any of the products of the Company.

9. The company does have any liability towards sales tax in view of recently pronounced decision.

11. 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.

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

13. The Provision of any special statute applicable to chit Fund/Nidhi/Mutual Benefit Fund/ Societies are not applicable to the Company.

14. In our opinion, the Company is not a dealer in shares, securities, debentures and other investments.

15. 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 banks or financial institutions during the year.

16. The Company has not obtained any term loan.

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

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

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

20. The other clauses of paragraph 4 of the Companies (Auditor''s Report) Order, 2003 are not applicable in the case of the Company for the current year, since in our opinion there is no matter arises to be reported in the aforesaid order in respect of such clauses.

FOR S.N.KABRA & CO.

CHARTERED ACCOUNTANTS

PLACE:-INDORE

DATE:- 29/05/2013

Sd/-

(S.N.KABRA)

PARTNER

---

Mar 31, 2012

1. We have audited the attached Balance Sheet of RAJANI EXTRACTIONS LIMITED, as at 31st March 2012, and the Profit and Loss Account of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company''s Management. Our responsibility is to express an opinion on these financial statements based on our audit

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

3. As required by the Companies (Auditor''s Report) Order, 2003 issued by the central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956. We enclosed in annexure statement on the matters specified in paragraph 4 and 5of the said order.

4. Further to our comments, we report that.

(a) We have obtained all the information and explanations, which to the best of our knowledge and believe 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 examinations of those books:

(c) The Balance-Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of accounts

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

(e) On the basis of written representation received from the directors, as on 31st March, 2012 and taken on record by the Board of Directors, we report that none of directors are disqualified as on 31st March, 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

(f) In our opinion and to the best of our information and according to the explanation given to us, they said financial statements together with the notes there on and attached there on give in the prescribed manner the information required by the Companies Act, 1956. 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 affairs of the Company as at 31st March, 2012 and:

ii) In the case of the Profit and Loss Account of the Loss for the year ended on that date:

1. (A) The Company is not having any fixed assets.

(B) Since, The Company was not having any fixed assets during the year hence clause regarding its physical verification is not applicable.

2. The Company is not having any stock during the period under review and there for such clause is not application to it.

3. (a) The Company had taken loan from one person covered in the register Maintained under section 301 of the Companies Act, 1956. The minimum amount involved during the year was of Rs. 1.57 Lacs and the year-end Balance of Loans taken from such persons was of Rs. 1.57 Lacs. The Company has not given loan to any party covered in the register maintained under section 301 of the Companies Act, 1956.

(b) In our opinion and according to the information and explanation give into us, the rate of interest and other terms and conditions on which Loans have been taken from Companies, firms or other parties Listed in the register maintained under section 301 of the Companies Act, 1956. are not, prima facie, prejudicial to the interest of the Company.

(c) The Company is regular in repaying the principal amounts as stipulated and has also been regular in the payment of interest as stipulated.

(d) There is no overdue amount of loans taken from Companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956.

4. In our opinion and according to the information and explanations given to us, There are adequate internal control procedures commensurate with the size of the Company and the nature of its business Further on the basis of our examination of the books and records of the Company and according to the information and explanations given to us, we have neither come across nor have been informed of any instances of major weaknesses in the aforesaid internal control procedures.

5. (a) To the best of knowledge and belief 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 under section 301 of the Companies Act, 1956. have been so entered.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rupees 5 Lacs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market price at he relevant time.

6. The Company has not accepted any deposits the public within the meaning of section 58A and 58AA of the Companies Act, 1956 and the rule framed there under.

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

8. The Central Government of India has not prescribed the maintenance of cost records under clause (d) of sub-section (1) of section 209 of the Act, for any of the products of the Company.

9. The company does have any liability towards sales tax in view of recently pronounced decision.

11. 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.

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

13. The Provision of any special statute applicable to chit Fund/Nidhi/Mutual Benefit Fund/ Societies are not applicable to the Company.

14. In our opinion, the Company is not a dealer in shares, securities, debentures and other investments.

15. 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 banks or financial institutions during the year.

16. The Company has not obtained any term loan.

17. On the basis of overall examination of the Balance-Sheet of the Company, In our opinion and according to the information and explanation given to us, there are no funds raised on short-term basis, which have been used for long-term investment and vice-versa.

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

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

20. The other clauses of paragraph 4 of the Companies (Auditor''s Report) Order, 2003 are not applicable in the case of the Company for the current year, since in our opinion there is no matter arises to be reported in the aforesaid order in respect of such clauses.

By Order of the Board of Directors

Place : Indore

Date : 31/07/2012

Sd/- Sd/- Sd/-

(Jawahar Rajani) (Jagdish Rajani) (Munnalal Shivnarayan) Managing Director Director Director

---

Mar 31, 2011

1. We have audited the attached Balance Sheet of RAJANI EXTRACTIONS LIMITED, as at 31st March 2011, and the Profit and Loss Account of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's Management. Our responsibility is to express an opinion on these financial statements based on our audit

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

3. As required by the Companies (Auditor's Report) Order, 2003 issued by the central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956. We enclosed in annexure statement on the matters specified in paragraph 4 and 5of the said order.

4. Further to our comments, we report that.

(a) We have obtained all the information and explanations, which to the best of our knowledge and believe 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 examinations of those books:

(c) The Balance-Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of accounts

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

(e) On the basis of written representation received from the directors, as on 31st March, 2011 and taken on record by the Board of Directors, we report that none of directors are disqualified as on 31st March, 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

(f) In our opinion and to the best of our information and according to the explanation given to us, the said financial statements together with the notes there on and attached there on give in the prescribed manner the information required by the Companies Act, 1956. 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 affairs of the Company as at 31st March, 2011 and:

ii) In the case of the Profit and Loss Account of the Loss for the year ended on that date:

ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 3 of our report of even date)

1. (A) The Company is not having any fixed assets.

(B) Since, The Company was not having any fixed assets during the year hence clause regarding its physical verification is not applicable.

2. The Company is not having any stock during the period under review and there for such clause is not application to it.

3. (a) The Company had taken loan from one person covered in the register Maintained under section 301 of the Companies Act, 1956. The minimum amount involved during the year was of Rs. 1.47 Lacs and the year-end Balance of Loans taken from such persons was of Rs. 1.47 Lacs. The Company has not given loan to any party covered in the register maintained under section 301 of the Companies Act, 1956.

(b) In our opinion and according to the information and explanation give into us, the rate of interest and other terms and conditions on which Loans have been taken from Companies, firms or other parties Listed in the register maintained under section 301 of the Companies Act, 1956. are not, prima facie, prejudicial to the interest of the Company.

(c) The Company is regular in repaying the principal amounts as stipulated and has also been regular in the payment of interest as stipulated.

(d) There is no over due amount of loans taken from Companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956.

4. In our opinion and according to the information and explanations given to us, There are adequate internal control procedures commensurate with the size of the Company and the nature of its business Further on the basis of our examination of the books and records of the Company and according to the information and explanations given to us, we have neither come across nor have been informed of any instances of major weaknesses in the aforesaid internal control procedures.

5. (a) To the best of knowledge and belief 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 under section 301 of the Companies Act, 1956. have been so entered.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rupees 5 Lacs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market price at he relevant time.

6. The Company has not accepted any deposits the public within the meaning of section 58A and 58AA of the Companies Act, 1956 and the rule framed there under.

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

8. The Central Government of India has not prescribed the maintenance of cost records under clause (d) of sub-section (1) of section 209 of the Act, for any of the products of the Company.

9. (a) As per information & explanation given to us & according to the records of the Company there were no undisputed amounts payable in respect of Provident Fund. Investor Education and Protection Fund, Employees State Insurance, Income-Tax, Sales-Tax, Custom Duty, and Cess and other statutory dues which have remained outstanding as at 31st March 2011 for a period of more than six months from the date they become payable.

(b) The disputed statutory dues, aggregating to Rs. 148.20 Lacs that have been deposited on account of matters pending before appropriate authorities are as under.

Sr. Name of Nature of Due Forum Where Amount No. Statute Dispute is (Rs. In Lacs) Pending

1 MPCT/CT/ET- Tax, Interest & Addl. 100.69 1998-99 Penalty Commercial Tax Officer, Indore

2 MPCT/CT/ET- Tax, Interest & Addl. 47.51 1999-2000 Penalty Commercial Tax Officer, Indore

TOTAL 148.20

Similarly assessment orders for the years 1993-94 to 1997-98, 2000-01 and 2001-02 were passed by the Commercial-Tax Authorities were by demand of tax & interest has been created aggregating to Rs. 809.45 lacs Revision petitions are yet to be submitted against such orders through provision has been made in the account for entire demand.

10. The Company has accumulated losses of Rs. 1283.78 Lacs as at 31st March 2011 Which is approx. 397% of the Net Worth of the Company. The Company has Incurred cash loss Rs. 20.07 Lacs in the financial year ended on that date. The Company had also incurred cash losses in the immediately preceding financial year.

11. 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.

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

13. The Provision of any special statute applicable to chit Fund/Nidhi/Mutual Benefit Fund/ Societies are not applicable to the Company.

14. In our opinion, the Company is not a dealer in shares, securities, debentures and other investments.

15. 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 banks or financial institutions during the year.

16. The Company has not obtained any term loan.

17. On the basis of overall examination of the Balance-Sheet of the Company, In our opinion and according to the information and explanation given to us, there are no funds raised on short-term basis, which have been used for long-term investment and vice-versa.

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

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

20. The other clauses of paragraph 4 of the Companies (Auditor's Report) Order, 2003 are not applicable in the case of the Company for the current year, since in our opinion there is no matter arises to be reported in the aforesaid order in respect of such clauses.

FOR S.N.KABRA & CO.

CHARTERED ACCOUNTANTS

PLACE:-INDORE

DATE:- 30-07-2011 Sd/-

(S.N.KABRA)

PARTNER

---

Mar 31, 2010

1. We have audited the attached Balance Sheet of RAJANI EXTRACTIONS LIMITED, as at 31st March 2010, and the Profit and Loss Account of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's Management. Our responsibility is to express an opinion on these financial statements based on our audit

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

3. As required by the Companies (Auditor's Report) Order, 2003 issued by the central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956. We enclosed in annexure statement on the matters specified in paragraph 4 and 5of the said order.

4. Further to our comments, we report that.

(a) We have obtained all the information and explanations, which to the best of our knowledge and believe 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 examinations of those books:

(c) The Balance-Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of accounts

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

(e) On the basis of written representation received from the directors, as on 31st March, 2010 and taken on record by the Board of Directors, we report that none of directors are disqualified as on 31st March, 2010 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

(f) In our opinion and to the best of our information and according to the explanation given to us, the said financial statements together with the notes there on and attached there on give in the prescribed manner the information required by the Companies Act, 1956. 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 affairs of the Company as at 31st March, 2010 and:

ii) In the case of the Profit and Loss Account of the Loss for the year ended on that date:

ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 3 of our report of even date)

1. (A) The Company is not having any fixed assets.

(B) Since, The Company was not having any fixed assets during the year hence clause regarding its physical verification is not applicable.

2. The Company is not having any stock during the period under review and there for such clause is not application to it.

3. (a) The Company had taken loan from one person covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year was of Rs. 0.67 Lacs and the year-end Balance of Loans taken from such persons was of Rs. 0.67 Lacs. The Company has not given loan to any party covered in the register maintained under section 301 of the Companies Act, 1956.

(b) In our opinion and according to the information and explanation given to us, the rate of interest and other terms and conditions on which Loans have been taken from Companies, firms or other parties Listed in the register maintained under section 301 of the Companies Act, 1956. are not, prima facie, prejudicial to the interest of the Company.

(c) The Company is regular in repaying the principal amounts as stipulated and has also been regular in the payment of interest as stipulated.

(d) There is no over due amount of loans taken from Companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956.

4. In our opinion and according to the information and explanations given to us, There are adequate internal control procedures commensurate with the size of the Company and the nature of its business Further on the basis of our examination of the books and records of the Company and according to the information and explanations given to us, we have neither come across nor have been informed of any instances of major weaknesses in the aforesaid internal control procedures.

5. (a) To the best of knowledge and belief 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 under section 301 of the Companies Act, 1956. have been so entered.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rupees 5 Lacs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market price at he relevant time.

6. The Company has not accepted any deposits the public within the meaning of section 58A and 58AA of the Companies Act, 1956 and the rule framed there under.

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

8. The Central Government of India has not prescribed the maintenance of cost records under clause (d) of sub-section (1) of section 209 of the Act, for any of the products of the Company.

9. (a) As per information & explanation given to us & according to the records of the Company there were no undisputed amounts payable in respect of Provident Fund. Investor Education and Protection Fund, Employees State Insurance, Income-Tax, Sales-Tax, Custom Duty, and Cess and other statutory dues which have remained outstanding as at 31st March 2010 for a period of more than six months from the date they become payable.

(b) The disputed statutory dues, aggregating to Rs. 148.20 Lacs that have been deposited on account of matters pending before appropriate authorities are as under.

Sr. Name of Nature of Due Forum Where Amount No. Statute Dispute is (Rs. In Lacs) Pending

1 MPCT/CT/ET- Tax, Interest & Addl. 100.69 1998-99 Penalty Commercial Tax Officer, Indore

2 MPCT/CT/ET- Tax, Interest & Addl. 47.51 1999-2000 Penalty Commercial Tax Officer, Indore

TOTAL 148.20

Similarly assessment orders for the years 1993-94 to 1997-98, 2000-01 and 2001-02 were passed by the Commercial-Tax Authorities were by demand of tax & interest has been created aggregating to Rs. 809.45 Lacs. Revision petitions are yet to be submitted against such orders through provision has been made in the account for entire demand.

10. The Company has accumulated losses of Rs. 1283.78 Lacs as at 31st March 2010 Which is approx. 397% of the Net Worth of the Company. The Company has Incurred cash loss Rs. 20.07 Lacs in the financial year ended on that date. The Company had also incurred cash losses in the immediately preceding financial year.

11. 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.

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

13. The Provision of any special statute applicable to chit Fund/Nidhi/Mutual Benefit Fund/ Societies are not applicable to the Company.

14. In our opinion, the Company is not a dealer in shares, securities, debentures and other investments.

15. 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 banks or financial institutions during the year.

16. The Company has not obtained any term loan.

17. On the basis of overall examination of the Balance-Sheet of the Company, In our opinion and according to the information and explanation given to us, there are no funds raised on short-term basis, which have been used for long-term investment and vice-versa.

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

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

20. The other clauses of paragraph 4 of the Companies (Auditor's Report) Order, 2003 are not applicable in the case of the Company for the current year, since in our opinion there is no matter arises to be reported in the aforesaid order in respect of such clauses.

FOR S.N.KABRA & CO.

CHARTERED ACCOUNTANTS

PLACE:-INDORE

DATE:- 03-08-2010 Sd/-

(S.N.KABRA)

PROPRIETOR