We have audited the accompanying financial statements of BNR UDYOG
LIMITED (the Company), which comprises the Balance Sheet as at March
31, 2015, the Statement of Profit and Loss and the 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
Management is responsible for 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
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014, This responsibility
also includes the design, implementation and maintenance of internal
control 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.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India 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 misstatements.
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 control relevant to the Company''s preparation and
fair presentation of the financial statements 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 management, as
well as evaluating the overall presentation of the financial
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit 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, 2015;
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
1. As required by the Companies (Auditor''s Report) order, 2015 (the
order) issued by the Central Government of India in terms of
Sub-Section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the order.
2. As required by Section 143(3) of the Act, 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
b) In our opinion, proper Books of Accounts, as required by law, have
been kept by the Company so far as appears from our examination of
c) The Balance Sheet, the Statement of Profit & Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the Books of
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
the Cash Flow Statement complying with the accounting standards
specified under Section 133 of the Act read with Rule 7 of the
Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the Directors,
as on March 31, 2015, and taken on record by the Board of Directors,
none of the Directors is disqualified as on March 31, 2015, from being
appointed as a Director in the terms of section 164(2) of the Act.
f) With respect to the other matters to be included in Auditors Report
in accordance with Rule 11 of Companies (Audit and Auditors), 2014, in
our opinion and to the best of our information and according to the
explanations given to us.
(i) The Company has disclosed the impact of pending litigation on its
financial position in its financial statements.
(ii) In our opinion and as per information and explanations provides to
us, the company has not entered into any long term contracts including
derivatives contracts requiring provisions under applicable laws or
accounting standards, for material foreseeable losses and
(iii) There has been no delay in transferring the amounts, required to
be transferred, to the Investor Education and Proctection Fund by the
ANNEXURE TO INDEPENDENT AUDITOR''S REPORT
M/s. BNR UDYOG LIMITED
[Referred to in paragraph 1 under the heading of Report on Other Legal
and Regulatory Requirements of our report of even date]
1. a.) According to the information and explanations furnished to us,
the company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b.)According to the information and explanations furnished to us, all
the assets have been physically verified by the Management during the
year through a 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
2. a.) According to the information and explanations furnished to us,
the inventory has been physically verified by the management during the
year. In our opinion, the frequency of such verification is reasonable.
b. ) In our opinion, 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. ) According to the information and explanations furnished to us, the
Company is maintaining proper records of inventory. The discrepancies
noticed on verification between the physical stocks and the book
records were not material.
3. According to the information and explanations given to us, the
company has not granted any loans secured or Unsecured to Companies,
firms or other Parties covered in the register maintained under section
189 of the Companies Act, 2013.
4. 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 with regard to the purchases of property, shares, and other
securities and fixed assets and with regard to sale of property, shares
and other securities and services. During the course of our audit, we
have not observed any continuing failure to correct major weaknesses in
5. According to the information and explanations given to us, The
Company has not accepted any deposits in terms of Directives issued by
the Reserve Bank of India and provision of Sections 73 to 76 or any
other relevant provisions of the Companies Act, 2013 and the rules
framed there under.
6. The maintenance of cost records under section 148(1) of the
Companies Act, 2013 has not been prescribed by the Central government
for the products of the company.
7. a.) According to the information and explanations given to us and
the records of the company examined by us, the company is generally
regular in depositing with appropriate authorities undisputed statutory
dues including provident fund, employees'' state insurance, income tax,
sales tax, wealth tax, service tax, customs duty, excise duty, Value
Added tax, cess and any other material statutory dues applicable to it
and we have been informed that there are no arrears of outstanding
statutory dues as at the last day of the financial year under audit for
a period of more than six months from the date they became payable.
b. ) According to the information and explanations given to us, there
are no dues of Income Tax, Sales tax, Wealth tax, Service tax, Custom
Duty , Excise duty, Value Added tax and cess which are not deposited on
account of dispute.
c. ) In our opinion and according to information and explanations given
to us amounts required to be transferred to investor education and
protection fund in accordance with relevant provision of Companies Act,
1956(1 of 1956) and Rules made there under have been transferred to
such fund within time.
8. In our opinion, the company has no accumulated losses as at
31.03.2015 and it has not incurred any cash losses in the financial
year ended on that date or in the immediately preceding financial year
9. According to the information and explanations given to us, the
company has not defaulted in repayment of dues to financial
institutions, bank and debenture holders as at balance sheet date.
10. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions during the year.
11. According to information and explanations given to us, no term loan
were Obtained during the year under audit.
12. According to the information and explanations given to us, no fraud
on or by the company has been noticed or reported during the course of
For LAXMINIWAS & JAIN,
Firm Registration No. 001859S
B. RAMESH KUMAR
Membership No. 200304
Place : Hyderabad
Date : 28.05.2015