1. We have audited the attached Balance Sheet of M/s. Inter State Oil
 Carrier Limited as at 31st March, 2011 and also the annexed Profit &
 loss Account of the company for the year ended on that date annexed
 thereto. These financial statements are responsibility of the
 management of the company. 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 to support the financial
 statement. amounts and disclosure in the financial statement. An audit
 also includes assessing the accounting principles used in the
 preparation of financial Statements, assessing significant estimates
 made by the Management in the preparation of financial statements and
 evaluating overall financial statement preparation. We believe that our
 audit provides a reasonable basis for our opinion.
 
 3. As required by the Companies (Auditors Report Order, 2003 as amended
 by the Companies (Auditors Report) Amendment order, 2004, issued by the
 Central Government in term of sub section (4A)of Section 227 of the
 Companies Act, 1956. We give in the Annexure a statement on the matters
 specified in the paragraphs 4 and 5 of the said order.
 
 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 tor the purposes of our
 audit.
 
 b) In our opinion, proper books of accounts as required by law have
 been kept by the company so far as appears horn our examination of the
 books
 
 c)The Balance sheet and Profit & Loss Account referred to in this
 report are in agreement with the books of account.
 
 d) In our opinion, the Profit & Loss Account and Balance Sheet comply
 with the Accounting Standard referred to in sub-section 3(C) of section
 211 of the rates Act, 1956.
 
 e) On the basis of written representations received from the directors,
 as on March 31,2011 and taken on record by the Board of Directors, we
 report that none of the director is disqualified as on March 31, 2011
 from being appointed as a director in terms of section 274(1 )(g) of
 the Companies Act, 1956.
 
 f) In our opinion and to the best of our information and according to
 the explanations given to us and subject to notes given there on, the
 said accounts give the information required by the Companies Act. 1956
 in the manner so required and give a true and fair view:-
 
 (a) In the ease of the Balance Sheet, of the stale of affairs of the
 company as at 31st March, 2011.
 
 And
 
 (b) In the case of the Profit & Loss Account, of the Profit of the
 company for the year ended on that date.
 
 And 
 
 (c) In the case of the Cash Flow statements of the cash flow for the
 year end on that date.
 
 ANNEXURE TO THE AUDITORS REPORT
 
 In term of the information and explanations given to us and books of
 account examined in us in the normal course of audit and to the best of
 our knowledge and belief, we state as under :-
 
 i)The company has maintained proper records showing full particulars
 including quantitative details and situation of its fixed assets. These
 fixed as physically verified by the management during the year. We have
 been informed that no discrepancies were noticed on such physical
 verification Substantial part of fixed assets has not been disposed of
 during the year, which will affect its status as going concern.
 
 ii) Since the Company has not dealt in any of the commodities Hence
 requirement reporting on physical verification of inventory or
 maintenance of inventory records does not arise
 
 iii) The company has not granted any loan, secured or unsecured to
 companies, firms or other parties covered in the register required to
 be maintained under section 301 of the Companies Act, 1956. Hence
 question of reporting whether the terms and conditions of such loans
 are prejudicial to the interest of the company, whether reasonable
 steps for recovery of over dues of such loans are taken do not arise.
 The company has not taken any loan, secured or unsecured from
 companies, firms or other parties covered in the register required to
 be maintained under section 101 of the Companies Act, 1956. Hence
 question of reporting whether the terms and conditions of such loans
 are prejudicial to the interest the company does not arise
 
 iv) 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 for
 purchase of inventory and fixed assets and lor sale of goods and
 services. During the course of our audit, we have not observed any
 continuing failure to correct major weakness in internal control
 
 v)According to the information and explanations given to us, in our
 opinion that there were no contracts or arrangements during the year
 that need to be entered in the register required to be maintained u/s
 301 of the Companies Act, 1956.
 
 vi) According to information and explanations given to us the company
 has not accepted deposits from the public upto 31.3.2011.
 
 vii) In our opinion, the company has an internal audit system
 commensurate with the size and nature of its business. 
 
 Viii) The company is not engaged in production, processing,
 manufacturing or mini activities.  Hence, the provisions of section
 209(1)(d)do not apply to the company.  Hence, no comment on maintenance
 of cost records u/s 209(1)(d) is required
 
 (ix) According to the records of the company, the company is regular in
 depositing undisputed statutory dues including Provident Fund, Investor
 Education and Protection Fund, Employees State Insurance. Income Tax,
 Wealth Tax, Service tax, Sales Tax, Customs Duty, Excise Duty & Cess
 and any other statutory dues with appropriate authorities applicable to
 it. According to information and explanations given to us. no
 undisputed amounts payable in respect of income tax. wealth tax service
 Tax, sales Tax, custom duty and excise duty were outstanding as at the
 last date of the accounting year for a period of more than six months
 From the date they became payable According to records of the company,
 there are no dues of sales Tax, income tax, custom duty, Wealth tax,
 service tax, excise duty and cess which have not been deposited on
 account of any dispute
 
 x) The company has no accumulated losses .The company has not incurred
 cash losses in the Financial year under report and in the immediately
 preceding financial year
 
 xi) The company has not defaulted in repayment of dues to financial
 institutions banks
 
 xii) As informed to us, the company has not granted any loans or
 advances on the basis of Security by way of pledge of shares,
 debentures and other similar securities.
 
 xiii) The company is not chit fund, nidhi or mutual benefit fund
 society.
 
 xiv) The company has maintained proper records of the transactions and
 contracts of dealing in shares, securities, debenture and other
 investment and we have been informed that timely entries have been made
 therein. As explained to us, all the shares have been held by the
 company in its own name except to the extent of exemption granted u/s
 49 of the Companies Act. 1956.
 
 xv) The company has not given any guarantee for loans taken by others
 from bank or financial institutions.
 
 xvi) The company has not taken any term loans. Hence, comments under
 the clause arc not called for.
 
 xvii) According to the information and explanation given to us, we
 report that no funds raised on short-term basis have been used for long
 term investment by the company.
 
 xviii) The company has not made any preferential allotment of shares to
 parties and companies covered in the Register required to be maintained
 under section 301 of the Act.
 
 xix) The company has not issued any debenture.
 
 xx) The company has not raised any money by public issues during the
 period covered by our audit report.
 
 xxi) During the checks carried out by us no fraud on or by the company
 has been noticed or reported during the year under report
 
 
 
 
                                                      For PATNI & CO.
 
                                                  CHARTERED ACCOUNTANTS
 
 
                                                        S. SUREKA 
 
                                                        (Partner)
 
                                                  Membership No. 57918 
 
                                          Firm Registration No.320304E
 
 Place : 1, ndia Exchange Place 
 
 Kolkata - 700 001 
 
 Date : The 24th of August 2011