1.  We have audited the attached Balance Sheet of ASIAN OILFIELD
 SERVICES LIMITED (the Company) as at 31st March, 2011, the Profit and
 Loss Account and the Cash Flow Statement of the Company for the period
 ended on that date, both 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 misstatements. An audit
 includes examining, on a test basis, evidence supporting the amounts
 and the disclosures in the financial statements. An audit also includes
 assessing the accounting principles used and the significant estimates
 made by the Management, as well as evaluating the overall financial
 statement presentation. We believe that our audit provides a reasonable
 basis for our opinion.
 
 3.  As required by the Companies (Auditor''s Report) Order, 2003 (CARO)
 issued by the Central Government in terms of Section 227(4A) of the
 Companies Act, 1956, we enclose in the Annexure a statement 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 as follows:
 
 (i) 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;
 
 (ii) 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;
 
 (iii) the Balance Sheet, the Profit and Loss Account and the Cash Flow
 Statement dealt with by this report are in agreement with the books of
 account;
 
 (iv) in our opinion, the Balance Sheet, the Profit and Loss Account and
 the Cash Flow Statement dealt with by this report are in compliance
 with the Accounting Standards referred to in Section 211(3C) of the
 Companies Act, 1956;
 
 (v) 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:
 
 (a) in the case of the Balance Sheet, of the state of affairs of the
 Company as at 31st March, 2011;
 
 (b) in the case of the Profit and Loss Account, of the loss of the
 Company for the period ended on that date and
 
 (c) in the case of the Cash Flow Statement, of the cash flows of the
 Company for the period ended on that date.
 
 6. On the basis of the written representations received from the
 Directors as on 31st March, 2011, none of the Directors is disqualified
 as on 31st March, 2011 from being appointed as a director in terms of
 Section 274(1)(g) of the Companies Act, 1956.
 
 ANNEXURE TO THE AUDITORS'' REPORT
 (Referred to in paragraph 3 of our report of even date)
 
 (i) In respect of its fixed assets:
 
 (a) The Company has maintained proper records showing full particulars,
 including quantitative details and situation of the fixed assets.
 
 (b) The fixed assets were physically verified during the period by the
 Management in accordance with a regular programme 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) The fixed assets disposed off during the period, in our opinion, do
 not constitute a substantial part of the fixed assets of the Company
 and such disposal has, in our opinion, not affected the going concern
 status of the Company.,
 
 (ii) In respect of its inventories:
 
 (a) As explained to us, the inventories were physically verified during
 the year by the Management at reasonable intervals.
 
 (b) In our opinion and according to the information and explanation
 given to us, the procedures of physical verification of inventories
 followed by the Management were reasonable and adequate in relation to
 the size of the Company and the nature of its business.
 
 (c) Based on our review and as per the information and explanations
 given to us, we are of the opinion that the Company is maintaining
 proper records of its inventories and the discrepancies noticed, which
 were not material, on physical verification have been properly adjusted
 in the books of account.
 
 (iii) The Company has neither granted nor taken any loans, secured or
 unsecured, to/from companies, firms or other parties listed in the
 Register maintained under Section 301 of the Companies Act, 1956.
 
 (iv) In our opinion and according to the information and explanations
 given to us, having regard to the explanations that some of the items
 purchased are of special nature and suitable alternative sources are
 not readily available for obtaining comparable quotations, there is an
 adequate internal control system commensurate with the size of the
 Company and the nature of its business with regard to purchases of
 inventory and fixed assets and the sale of goods and services. During
 the course of our audit, we have not observed any major weakness in
 such internal control system.
 
 (v) In respect of contracts or arrangements entered in the Register
 maintained in pursuance of Section 301 of the Companies Act, 1956, to
 the best of our knowledge and belief and according to the information
 and explanations given to us, there are no contracts or arrangements
 that needed to be entered in the Register maintained under the said
 Section.
 
 (vi) According to the information and explanations given to us, the
 Company has not accepted any deposit from the public during the period.
 
 (vii) In our opinion, the internal audit functions carried out during
 the period by firm of Chartered Accountants appointed by the Management
 have been commensurate with the size of the Company and the nature of
 its business.
 
 (viii) To the best of our knowledge and according to the information
 and explanations given to us, the Central Government has not prescribed
 the maintenance of cost records for the Company''s class of business.
 
 (ix) According to the information and explanations given to us in
 respect of statutory dues:
 
 (a) The Company has generally been regular in depositing undisputed
 dues, including Provident Fund, Investor Education and Protection Fund,
 Employees'' State Insurance, Income-tax, Sales Tax, Wealth Tax, Custom
 Duty, Service Tax, Cess and other material statutory dues applicable to
 it with the appropriate authorities.
 
 (b) There were no undisputed amounts payable in respect of Income Tax,
 Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other
 material statutory dues in arrears as at 31st March, 2011 for a period
 of more than six months from the date they became payable.
 
 (c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
 Custom Duty, Excise Duty and Cess which have not been deposited as on
 31st March, 2011 on account of disputes are given below:
 
 Name of          Nature of     Forum where      Period to 
                                                   which       Amount 
                                                             involved
 the Statute      the Dues      dispute is 
                                  pending        the amount
                                                    relates  (Rs. in 
                                                               lakhs)
 
 Income Tax 
 Act, 1961        Penalty       CIT (Appeals)   FY 2003-04      5.49
 
 Income Tax 
 Act, 1961        Penalty           DCIT        FY 2003-04      6.86
 
 Income Tax 
 Act, 1961     Assessment Dues  CIT (Appeals)   FY 2006-07      2.61
 
 Income Tax 
 Act, 1961     Assessment Dues  CIT (Appeals)   FY 2007-08    132.36
 
 (x) The accumulated losses of the Company at the end of the financial
 year are less than fifty percent of its net worth and the Company has
 not incurred cash losses in the financial year and in the immediately
 preceding financial year.
 
 (xi) In our opinion and according to the information and explanations
 given to us, the Company has not defaulted in the repayment of dues to
 banks and financial institutions.
 
 (xii) According to the information and explanation given to us, 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) The provision of any special statute applicable to chit fund is
 not applicable to the Company.
 
 (xiv) According to the information and explanation''s given to us, the
 Company is not dealing or trading in any shares, securities, debentures
 and other investments.
 
 (xv) According to the information and explanation''s given to us, the
 Company has not given any guarantees for loans taken by others from
 banks and financial institutions.
 
 (xvi) Based on our audit procedures and according to the information
 and explanations given to us, the term loans taken during the year have
 been applied for the purpose they were obtained.
 
 (xvii) 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 not been used during
 the period for long- term investment.
 
 (xviii)The Company has not made any preferential allotment of shares to
 parties and companies covered in the register maintained under Section
 301 of the Companies Act, 1956 during the year.
 
 (xix) According to the information and explanations given to us,
 during the period covered by our audit report, the Company has not
 issued any debentures.
 
 (xx) As informed to us, during the year covered by our audit report,
 the Company has not raised any money by way of public issue.
 
 (xxi) To the best of our knowledge and according to the information and
 explanations given to us, no fraud by the Company and no fraud on the
 Company has been noticed or reported during the year.
 
                                         For Deloitte Haskins & Sells
 
                                                Chartered Accountants
 
                                             (Registration No.117364W)
 
                                                      (Gaurav J. Shah)
 
 Place: Vadodara                                              Partner
 
 Date: 26th May, 2011                                     M. No.35701