To the Members of Shree Hari Chemicals Export Ltd.

Report on the Financial Statements

We have audited the accompanying financial statements of Shree Hari Chemicals Exports Ltd. (the Company ), which comprise of the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management s Responsibility for the Financial Statements

The Company s Board of Directors is responsible for the matters in section 134(5) of the Companies Act, 2013 ( the Act ) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company s preparation of the financial statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Company s Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements, give the information required by the Act 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 March 31, 2016;

b) in the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and

c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Report on other Legal and Regulatory Requirements

As required by the Companies (Auditor s Report) Order, 2016 ( the order ), issued by the Central Government of India in terms of sub-section (11) of Section 143 of Companies Act, 2013, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure I, a statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

As required by section 143(3) of the Act, we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our 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, the Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account

d) On the Basis of written representations received from the Board of Directors as on March 31 , 2016 and taken on record by the Board of Directors , none of the directors is disqualified as on March 31,2016, from being appointed as a Directors in terms of sub-section (2) of section 164 of the Act;

e) With respect to the other matters to be included in the Auditor s Report and to our best of our information and according to the explanations given to us :

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements

ii. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

Annexure-I to the Independent Auditors Report

The Annexure referred to in Para -1 of our Report on other Legal and Regulatory Requirements to the members of the Company on the Standalone financial statement for the year ended on 31st March, 2016, we report that :

We report that:

(i) (a) The Company has maintained proper records showing full particulars, including quantitative details

and situation of its fixed assets;

(b) As informed to us the fixed assets have been physically verified by the management at reasonable intervals and no material discrepancies were noticed on such verification. Which in our opinion is reasonable having regards to size of the Company and nature of its assets.

(c) The title deeds of Immovable properties of are held in the name of the Shree Hari Chemicals Export Limited.

(ii) As informed to us Physical verification of inventory has been conducted at reasonable intervals by the management and no material discrepancies were noticed on such verification. Which in our opinion is reasonable having regards to size of the Company and nature of its assets.

(iii) In respect of loans, the Company has not granted any secured or unsecured loan to Companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly the clause 3(iii) (a), 3(iii) (b) and 3(iii) (c) of the Order are not applicable to the Company.

(iv) As information provided to us, there are no instances of loans, investments, guarantees, and security covered under Sec 185 and 186 of the Companies Act, 2013 that have not been complied with.

(v) The Company has not accepted any deposits, hence the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under, are not applicable to the Company.

(vi) Maintenance of cost records has not been specified by the Central Government under sub-section (1) of section 148 of the Companies Act 2013, to the company hence same is not applicable to the Company.

(vii) (a) According to the information and explanation given to us and records as produced and examined

by us, in our opinion, the Company is regular in depositing undisputed applicable statutory dues including provident fund, employees state insurance, income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues applicable to it, with the appropriate authorities.

(b) According to the information and explanations given to us, the details of statutory dues of income tax, sales tax ,service tax or custom duty, excise duty or value added tax, which have not been deposited on account of appeal are given as under.

(viii)According to the records of The Company examined by us and the information and explanation provided to us, the Company has not defaulted in repayment of loans o borrowing to a financial institution, Bank, Government or dues to debenture holders as at the balance sheet date.

(ix) The Company has not raised any initial public offer or further public offer (including debt instruments) and according to the information and explanations given to us no term loans has been obtained hence the question of applying them for the purposes for which those were raised does not apply.

(x) According to information and explanations given to us there were no frauds on the Company by its officers or employees noticed or reported by the management for the year under review.

(xi) The Company has paid or provided any managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V of the Companies Act.

(xii) According to the information and explanations given to us the Company is not a Nidhi Company hence clause 3(xii) of the order is not applicable.

(xiii) According to the explanations and information given to us, all the transactions of the related parties at the Company, for the year under review are in compliance with Section 177 and 188 of the Companies Act, 2013 and the details of the same have been disclosed in the financial statements as required by the applicable accounting standards.

(xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly paid convertible debentures during the year under review hence clause 3(xiv) of the order is not applicable.

(xv) According to the information and explanation given to us the Company has not entered into any non cash transaction with directors or persons connected with him as per provisions of Section 192 of the Companies Act, 2013.

(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 and hence clause 3(xvi) of the order is not applicable.

For and on behalf of the Board

Place: Mumbai Bankesh Chandra Agrawal

Date: 1st August, 2016 Chairman & Executive Director