1.  We have audited the annexed Balance Sheet of PRAKASH SOLVENT
 EXTRACTIONS LIMITED as at 31st March 2011 and also the annexed profit &
 Loss account of the Company for the year ended on that date. These
 financial statements are the responsibility of the management of the
 company. Our responsibility is to express opinion on these financial
 statements based on our audit.
 
 2.  We have conducted our audit in accordance with auditing standards
 generally accepted in India. Those standards require that we plan and
 perform audit to obtain reasonable assurance about whether the financial
 statements are free of material misstatement. An audit includes,
 examining on 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 presentation of
 the financial statements. We believe that our audit provides a
 reasonable basis for our opinion.
 
 3.  As required by the Companies (Auditors Report) order, 2003 issued
 by the Central Government in terms of sub section (4A) of Section 227
 of the Companies Act 1956, and on the basis of such checks as we may
 have considered appropriate and according to the information and
 explanations given to us, we set out in annexure a Statement on the
 matters specified in the 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 :- 
 
 1.  We have obtained all the information and explanation which to the
 best of our knowledge and behalf were necessary for the purpose of our
 audit.
 
 2.  In our opinion proper books of accounts as required by law have
 been kept by the company so far as appear from our examination of these
 books.
 
 3.  The Balance Sheet and the profit & Loss account dealt with by the
 report are in agreement with the books of accounts
 
 4.  In our opinion, these financial statements have been prepared in
 compliance with the applicable accounting standards referred to in Sub
 Clause [3c] of Section 211 of the Companies Act, 1956.
 
 5.  Based on the basis of the written representations made by all the
 Directors of the company as on 31st March 2011 and taken on record by
 the Board of Directors of the Company and in accordance with the
 information and explanations as made available, the Directors of the
 company do not, prima facie, have any disqualification as referred to in
 clause (g) sub-section 1 to the Section 274 of the Companies Act, 1956.
 
 6.  In our opinion and to the best of our information and according to
 the explanations given to us, the Balance Sheet and Profit and Loss
 account together with the Notes thereon and attached thereto 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 :
 
 a.  In the case of the Balance Sheet of the state of affair of the
 company at 31st March 2011and
 
 b.  In case of Profit & Loss account, of the profit for the year ended on
 that date.
 
 c.  In case of cash flow as on that date.
 
 ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITORS'' REPORT TO THE
 MEMBERS OF PRAKASH SOLVENT EXTRACTIONS LIMITED ON THE ACCOUNTS FOR THE
 YEAR ENDED 31ST MARCH 2011.
 
 1.  In respect of Fixed Assets :
 
 a.  The Company has maintained proper records to show full particulars
 including quantitative details and situation of the fixed assets.
 
 b.  During the year, majority of the fixed assets have been physically
 verified by the management on the basis of phased programmed of
 verification of the assets over a reasonable time. No material
 Discrepancies were noticed on verification of the assets made during the
 year.
 
 c.  In our opinion, the company has not disposed of substantial part of
 fixed assets during the year and the going concern status of the Company
 is not affected.
 
 2.  In respect of inventories :
 
 a.  The management has conducted physical verification of inventory at
 reasonable intervals.
 
 b.  The procedures of physical verification of inventory followed by the
 management are reasonable and adequate in relation to the size of the
 Company and its nature of business.
 
 c.  The company is maintaining proper records of inventory and as
 explained to us there were no material discrepancies noticed on
 physical verification of inventory, as compared to the book records.
 
 3.  In respect of loans, secured or unsecured, granted or taken by the
 Company to/from companies, firms or parties covered in the register
 maintained under section 301 of the Companies Act, 1956 :
 
 a.  The company has not taken loans from any parties covered in the
 Register maintained under section 301 of the Companies Act, 1956.
 
 b.  The Company has not granted any loans during the year.
 
 c.  In our opinion, the rate of interest and other terms and conditions
 on which the loans has been obtained and or given from the parties
 listed in register maintained under Sec. 301 of the Companies Act, 1956
 are prima facial not prejudicial to the interest of the Company.
 
 d.  The parties have repaid the Principal amounts as stipulated and
 have been regular in Payment of interest.
 
 e.  There are no overdue amounts more than one lakhs.
 
 4.  In our opinion and as per the information and explanation given to
 us there are adequate internal control procedure commensurate with the
 size of the company and nature of its business with regards to
 purchases of new materials, stores, plant and machinery equipment and
 other assets and for sale of goods. During the course of our audit, we
 have not observed any continuing failure to correct major weakness in
 internal control.
 
 5.  In respect of transactions covered under Section 301 of the
 Companies Act, 1956 :
 
 a.  In our opinion and according to the information and explanations
 given to us, transactions that need to be entered into the Register in
 pursuance of section 301 of the Companies Act, 1956 have been so
 entered.
 
 b.  So far we have been able to ascertain, the company has entered into
 transactions for purchase of goods an materials and sale of goods,
 materials and services in pursuance of contract or agreements entered
 in the Register maintained under Sec. 301 of the Companies Act, 1956 as
 aggregating during the year to Rs.500,000/ – of more in respect of
 each party. These transactions have been made at prices which are
 reasonable having regard to prevailing market prices available with the
 company for such goods and services or the prices at the relevant time.
 
 6.  In respect of Fixed Deposits :
 
 a. In our opinion and as per information and explanation given to us
 the Company has not accepted any deposit from public.
 
 7.  In respect of internal audit systems : a.  In our opinion, the
 Company has an internal audit system commensurate with the size and its
 nature of business.  
 
 8.  To the best of our knowledge and according to information given to
 us, the Central Government has not prescribed maintenance of cost
 records under sec. 209 (i) (d) of the Companies Act, 1956 in respect of
 any of the products of the Company.
 
 9.  In respect of statutory dues :
 
 a.  According to the records of the company, the Company is regular in
 depositing undisputed statutory dues including the Provident Fund dues,
 ESIS dues, Income tax, Sales tax and other statutory dues applicable to
 it with the statutory authorities.
 
 b.  According to information and explanation given to us, there are no
 undisputed amounts payable in respect of income Tax, Sales Tax, customs
 duty and excise duty which have remained outstanding as on 31st March
 2011 for a period of more than six months from the date they become
 payable.
 
 c.  According to information and explanations given to us, there are no
 statutory dues which have not been deposited as on 31st March 2011 on
 account of any dispute.
 
 10.  The company has got accumulated losses at the end of the financial
 year and it has not incurred any cash losses in the current and
 immediately preceding financial year.
 
 11.  According to information and explanations given to us, and based
 on the documents and records produced before us, the Company has not
 defaulted in repayment of dues to financial institution, banks or
 debenture holders.
 
 12.  According to information and explanations given to us, and based
 on the documents and records produced before us, the Company has not
 granted loans and advances on the basis of security by way of pledge of
 shares, debentures and other securities. Therefore the provisions of
 clause 4(xii) of the Companies (Auditor''s Report) order,2003 are not
 applicable to the Company.
 
 13.  In our opinion and according to the information and explanations
 given to us, the nature of activities of the Company does not attract
 any special statute applicable to chit fund and nidhi / mutual benefit
 fund / societies. Therefore the provisions of clause 4(xiii) of the
 Companies (Auditor''s Report) order,2003 are not applicable to the
 Company.
 
 14.  In our opinion the company is not dealing in or trading in shares,
 securities, debentures and other investments. Therefore the provisions
 of clause 4(xiv) of the Companies (Auditor''s Report) order,2003 are not
 applicable to the Company.
 
 15.  Based on our audit procedures and according to information and
 explanations given to us the company has not given guarantees for loans
 taken by others from a Bank or financial institution.
 
 16.  In our opinion the term loans have been applied for the purpose
 for which they were raised.
 
 17.  According to the information and explanations given to us and on
 an overall examination of the Balance Sheet of the Company, we are of
 the opinion that no funds raised on short term basis have been used for
 long term assets. No long term funds have been used to finance short
 term assets.
 
 18.  During the year, 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.
 
 19.  The company has not raised any money by public issue and
 accordingly the provisions of clause 4 (xx) of the Companies (Auditor''s
 Report) order,2003 are not applicable to the Company.
 
 20.  The Company has not raised any money by issue of Debentures.
 
 21.  In our opinion and according to the information and explanations
 given to us, no fraud on or by the Company has been noticed or reported
 during the year that causes the financial statements to be materially
 misstated.
 
 
 For Ajay B. Garg
 
 Chartered Accountant
 
 A Garg
 
 Mumbai,
 
 Dated : 12th August 2011