1. We have audited the attached Balance Sheet of MIHIJAM VANASPATI
 LIMITED as at 31st March 2012 and also the profit & Loss account and
 the Cash Flow Statement 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 and give
 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 examination 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 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 (Auditors'' Report) Order, 2003 as
 amended by Companies (Auditors'' Report) (Amendment) Order, 2004 issued
 by the Central Government in terms of section 227(4A) of the Companies
 Act, 1956 (as amended), we enclose in the Annexure a statement on the
 matters specified in Paragraph 4 & 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 purpose of our
 audit;
 
 b) In our opinion, proper5 books of accounts as required by law have
 been kept by the company so far as appears from our examination of
 those books;
 
 c) The Balance Sheet and profit & Loss Account dealt with by this
 report are in agreement with the books of account:
 
 d)In our Opinion, the Balance Sheet and Profit & Loss Account dealt
 with by the report comply with the Accounting Standards referred to in
 Section 211(3C) of the Companies Act, 1956:
 
 e) On the basis of written representations received from the Director
 as on 31st March, 2012 and taken on record by the Board of Directors,
 We report that none of the Directors is disqualified as on 31st March
 2012 from being appointed as a director in terms of section 274(1) (g)
 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 accounts to read together with
 the Notes on the accounts, give in the prescribed manner the
 information required by the Companies Act, 1956 and also given 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 31st March 2012.
 
 ii) In the case of Profit & Loss Account, 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.
 
                                                     
 ANNEXURE TO THE AUDITOR''S REPORT
 
 REFERRED TO PARAGRAPH 3 OF OUR REPORT OF EVEN DATE
 
 (i) (a) The Company is maintaining proper records showing full
 particulars, including quantitative details & situation of its fixed
 assets.
 
 (i) (b) As explained to us, the fixed assets of the Company have been
 physically verified by the Management during the year in a phased
 periodical manner, which, in our opinion, is reasonable having regard
 to the size of the Company and the nature of its Assets. To the best of
 our knowledge, no discrepancies were noticed on such verification.
 
 (i)(c) The Company has not disposed of substantial part of fixed assets
 during the year under audit and the going concern status of the company
 is not affected.
 
 (ii)(a) As explained to us, the inventories have been physically
 verified by the management at regular intervals during the year.
 
 (ii)(b) In our opinion and according to the information and
 explanations given to us, the procedure of physical verification of
 inventories followed by the management is reasonable and adequate in
 relation to the size of the Company and the nature of its business.
 
 (ii)(c) The company is maintaining proper records of inventories. As
 explained to us, there was no material discrepancies noticed on
 physical verification of inventories as compared to the book records.
 
 (iii)(a) As informed, the company has given unsecured loan to two
 companies covered in the register maintained under section 301 of the
 Companies Act, 1956. The maximum amount outstanding at any time during
 the year was Rs. 682.36 lacs and the year-end balance is Rs.  27.36
 lacs.
 
 (iii) (b) As informed, the said loan has been given free of interest.
 Other terms and conditions of the abovementioned unsecured loan, prima
 facie, do not appear to be prejudicial to the interests of the company.
 
 (iii) (c) As informed, there are no stipulations regarding repayment
 and as such we are unable to comment in this regard:
 
 (iii)(d) As informed, the Company has taken unsecured loan from four
 companies covered in the register maintained under section 301 of the
 Companies Act, 1956. The maximum amount outstanding during the year was
 Rs. 16.47 crore and the year-end balance is Rs 7.49 crore.  
 
 (iii)(e) As informed, the said loan has been taken free of interest.
 Other terms and conditions of the abovementioned unsecured loan, prima
 facie, do not appear to be prejudicial to the interests of the company.
 
 (iii) (f) As informed, there are no stipulations regarding repayment
 and as such we are unable to comment in this regard.
 
 (iv) 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 inventory and fixed assets and for the sale of goods and
 services. During the course of our audit we have not observed any major
 weakness in internal controls.
 
 (v) (a) Based on the audit procedures applied by us and according to
 the information and explanations provided by the management, we are of
 the opinion that the transactions that need to be entered into the
 register maintained under section 301 have been so entered.
 
 (v)(b) In our opinion and according to information and explanations
 given to us, the transaction made in pursuance of contracts or
 arrangement entered in the register under Section 301 of the Companies
 Act, -1956 and exceeding the value of Rs. 5,00,000/- in respect of any
 party during the year have been made at prices which are reasonable
 having regard to prevailing market prices wherever comparable prices
 are available at the relevant time.
 
 (vi) In our opinion and according to information and explanations given
 to us, the company has not accepted any deposits from the public during
 the year.
 
 (vii) We are informed that the Company has no formal internal audit
 system but internal control is exercised departmentally which in our
 opinion is commensurate with the size of the Company and the nature of
 its business.
 
 (viii) We are informed that the Central Government has not prescribed
 the maintenance of cost records under section 209(1) (d) of the Act.
 
 (ix)(a) According to the information and explanations given to us and
 the records of the company to the extent produced before us & examined
 by us, in our opinion the Company is generally regular in depositing
 the statutory dues including Employees State Insurance, Income Tax,
 Sales Tax, Wealth Tax, Customs Duty, Excise Duty, Cess, Service and
 other statutory dues, as applicable to the company, with the
 appropriate authorities. According to the information and explanations
 given to us and records to the extent produced before us no undisputed
 amounts payable in respect of the statutory dues mentioned above, were
 in arrears as at the year end for a period of more than 6 months from
 the date they became payable.
 
 (ix)(b) In our opinion and according to the information and
 explanations given to us and books and records, to the extent produced
 before us, there are no dues of income-tax sales-tax, wealth-tax,
 service tax, customs duty, excise duty and cess which have not been
 deposited on account of any dispute, other than following:
 
                                                       (Rs. In lacs)
 
 Name of the      Nature of        Gross        Paid      Period to 
 statute          the dues        Amount       under          which
                                 (Rs. In     Protest        related
                                   lacs)     (Rs. In           (FY)          
                                               lacs) 
 
 Central and      Taxes            27.58        7.67        1996-97,      
 State Sales      including                                 1997-98,      
 Tax Acts         interest                                  1998-99,
                                    2.30        2.30        2000-01,
                                                            2001-02       
                                                            2003-04
 
 Central          Duty              6.87        0.55      1999-2000,      
                                                          2000-2001        
                                                                          
 
 Customs          Demand          159.40       55.00        2003-04,    
 Act, 1962        custom                                    2004-05      
                  duty              2.49
                  against                                   2004-05        
                  DEPB                                                    
 
 Income Tax       Income          209.13       25.00        2002-03     
 Act              Tax    
 
 
 
 Name of the      Forum where
 statute          dispute is pending
                                 
 
 Central and      Sales Tax Appellate
 State Sales      Tribunal
 Tax Acts        
                  ACCT, Durgapur
                                                
 
 Central          Assistant Excise Act, Demand
                  Commissioner,
                  Central Excise
 
 Customs          Commissioner of
 Act, 1962        Customs
                
                  Commissioner of
                  Customs 
 
 Income Tax       CIT (A) Ranchi
 Act  
             
 
 (x) The Company''s does not have accumulated losses. It has not incurred
 cash losses in the financial year under report or in the immediately
 preceding financial year.
 
 (xi) In our opinion and according to the information and explanations
 given to us by the Management and records to the extent produced before
 us, the Company has not defaulted in repayment of dues to financial
 institutions and banks during the year.
 
 (xii) The Company has not granted any loans & advances on the basis of
 security by way of pledge of shares, debentures and other securities.
 
 (xiii) The Company is not a Chit Fund or a nidhi mutual benefit
 fund/society, Therefore, the provisions of clause 4(xiii) of the
 Companies'' (Auditor''s Report) Order, 2003 are not applicable to the
 Company.
 
 (xiv) The Company has maintained proper records of the transactions and
 contracts in respect of dealing or trading in shares, securities,
 debentures and other investments and timely entries have been made
 therein. All shares, securities, debentures and other investments have
 been held by the Company in its own name.
 
 (xv) In our opinion, the terms and conditions on which the company has
 given guarantee for loans taken by others from banks or financial
 institutions are not, prima facie, prejudicial to the interest of the
 company.
 
 (xvi) The company has raised new term loans during the year. The term
 loans raised during the year have been applied for the purpose for
 which they were raised.
 
 (xvii) According to the information and explanations given to us and on
 an overall examination of the Balance Sheet of the Company, we report
 that funds raised on short term basis have not been used for long term
 assets.
 
 (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 Act.
 
 (xix) No debentures have been issued by the Company. As such provisions
 of clause 4(xix) are not applicable.
 
 (xx) The Company has not raised money by way of public issue during the
 year. As such provisions of clause 4(xvi) are not applicable.
 
 (xxi)To the best of our knowledge and belief and according to the
 information and explanations given to us, no fraud or by the company
 has been noticed or reported during the year.
 
 
                                                   For Lihala & Co.
                                                Chartered Accountants
                                         Firm Registration No-315052E
 
                                                            R. Lihala 
                                                              Partner
                                                         M. No. 52138
 
 Place: 11, Crooked Lane, 
        Kolkata - 700 069
 
 Date: 29 day of May, 2012