1.  We have audited the attached Balance Sheet of Sah Petroleums
 Limited as at 31st March, 2011, the related Profit and Loss Account for
 the year ended on that date annexed thereto, and the Cash Flow
 Statement for the year ended on that date, which we have signed under
 reference to this report. 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 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 the 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 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 Company Law Board 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 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 the
 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 examination of those
 books;
 
 c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
 dealt with by this report are in agreement with the books of account;
 
 d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
 Flow Statement dealt with by this report comply with the accounting
 standards referred to in sub-section (3 C) of Section 211 of the
 Companies Act, 1956;
 
 e) On the basis of the written representations received from the
 directors as on March 31, 2011 and taken on record by the Board of
 Directors, none of the directors is disqualified as on March 31, 2011
 from being appointed as director in terms of section 274 (1 )(g) of the
 Act;
 
 f) In our opinion and to the best of our information and according to
 explanations given to us, the said financial statements together with
 notes thereon give the information required by the Companies Act,
 195,6, in the manner so required 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 the state of affairs of the
 Company as at 31st March, 2011;
 
 ii.  In the case of the Profit and Loss Account, of the Profit for the
 year ended on that date; and
 
 iii.  In the case of Cash Flow Statement, of the cash flows for the
 year ended on that date.
 
 ANNEXURE REFERRED TO IN PARA I:
 
 i. (a) The company has maintained proper records showing full
 particulars, including quantitative details and situation of fixed
 assets.
 
 (b) All the Fixed assets have not been physical)/verified by management
 during the year but there is regular programme of verification which,
 in our opinion, is reasonable having regard to the size of the company
 and the nature of its assets. No material discrepancies were noticed on
 such verification.
 
 (c) During the year the company has not disposed off a substantial part
 of its fixed assets.
 
 ii. (a) The inventory (excludipg stocks with third parties) has been
 physically verified during the year by the management. In our opinion,
 the frequency of verification is reasonable.
 
 (b) The procedures of physical verification of inventories followed by
 the management are reasonable and adequate in relation to the size of
 the Company and the nature of its business.
 
 (c) The Company is maintaining proper records of inventory.  No
 material discrepancies have been noticed on physical verification of
 stocks as compared to books records.
 
 iii. The Company has neither granted nor taken, during the year, any
 loans, secured or unsecured, to or from companies, firms or other
 parties covered in the register maintained under Section 301 of the
 Act.
 
 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 the purchase of inventory and fixed assets and for the
 sale of goods. During the course of audit, no major weakness has been
 noticed in these internal controls.
 
 v. Based on the audit procedures applied by us and according to the
 information and explanations provided by the management, the
 transactions that need to be entered into the register maintained under
 Section 301 of the Companies Act, 1956 have been so entered.
 
 vi. The Company has not accepted any deposits from public within the
 meaning of Section 58A & 58AA of the Companies Act, 1956, read with
 Companies (Acceptance of Deposits) Rules, 1975.  Accordingly, the
 provisions of clause 4(vi) of the Companies (Auditor''s Report) Order
 2003 is not applicable to the company.
 
 vii.  In our opinion, the Company has an internal audit system
 commensurate with its size and nature of its business.
 
 viii.  The Central Government has not prescribed the maintenance of
 cost records by the Company under Section 209(1) (d) of the Companies
 Act, 1956 for any of its products.
 
 ix. (a) The Company is generally regular in depositing with the
 appropriate authorities undisputed statutory dues including Provident
 Fund, Investor Education and Protection Fund, Employees'' State
 Insurance, Income-tax, Sales-tax, Wealth tax, Service Tax, Custom Duty,
 Excise Duty, Cess and other material statutory dues applicable to it.
 There were no arrears as at 31 st March 2011 for a period of more than
 six months from the date they became payable.
 
 (b) On the basis of our examination of the documents and records, there
 are no dues of Income Tax, Wealth Tax, Service Tax, Customs duty and
 Cess which have not been deposited on account of any dispute. The
 particulars of Sales tax as on 31 st March 2011 which have not been
 deposited on account of disputes is as follows:
 
 Name of Statute Nature of Dues        Amount Period to 
                                              which the Forum where the
                                        (Rs.) amount 
                                              relates   dispute is
                                                        pending
 
 Central Sales 
 Tax, 1956 and   Central Sales 
                 Tax, Local Sales  41,575,724  2003-04  Appellate 
                                                        Tribunal
 Sales Tax Acts 
 of various 
 States          Tax and 
                 Commercial Tax    89,503,356  1996-97,
                                              2003-04 to Departmental
                                              2005-06,
                                              2007-08,
                                              2010-11    Authorities
 
 x. The Company has no accumulated losses as at 31 st March, 2011 and
 has not incurred any cash losses in the financial year ended on that
 date but had incurred cash losses during the immediately preceding
 financial year.
 
 xi. Based on the examination, of the books of account and related
 records and according to the information and explanations given to us,
 the Company has not defaulted in repayment of dues to the banks.
 
 xii. According to the information and explanations given to us, the
 company has not granted loans and 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. According to the information and explanations given to us, the
 Company is not dealing or trading in shares, securities, debentures and
 other investments. Accordingly, the provisions of clause 4(xiv) of the
 Companies (Auditor''s Report) Order 2003 are not applicable to the
 company.
 
 xv. According to the information and explanation given to us, the
 Company has not given any guarantee for loans taken by others from
 banks or ffnancial institutions, during the year.
 
 xvi. On the basis of an overall examination of the Balance Sheet of the
 company, in our opinion, ¦there are no funds raised on short-term basis
 which have been used for long-term investment.
 
 xvii. 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, during the year.
 
 xviii. 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 Manager.
 
 xix.  The Company has not raised any money by public issue during the
 year.
 
 
                                                   For N.D.DAGA & CO.
 
                                      Firm Registration No. 101993 W
 
                                               Chartered Accountants
 
                                                            N.D.Daga
 
                                                          Proprietor
 
 Mumbai. 12.08.2011                              Membership No. 9921