SRI KPR INDUSTRIES LIMITED
(FORMERLY KNOWN AS BHAGYANAGAR WOOD PLAST LIMITED)
ANNUAL REPORT 2011-2012
To the Members of
Sri KPR Industries Limited
(Formerly Bhagyanagar Wood Plast Limited)
1. We have audited the attached balance sheet of Sri KPR Industries Limited
(Formerly Bhagyanagar Wood Plast Limited), as at 31st March, 2012, the
statement of profit and loss and also the cash flow statement 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 an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the 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 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 made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis of our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued by
the Central Government in terms of sub-section (4A) of section 227 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 the comments in the Annexure referred to in paragraph 3
above, we report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
(ii) 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
(iii) The balance sheet, the statement of profit and loss and the cash flow
statement dealt with by this report are in agreement with the books of
(iv) In our opinion, the balance sheet, the statement of profit and loss
and the cash flow statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956;
(v) On the basis of written representations received from the directors, 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 clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts give the information required
by the Companies Act, 1956, in the manner so required and give a true and
fair view in conformity with the accounting.principles generally accepted
(a) in the case of the balance sheet, of the state of affairs of the
company as at 31st March, 2012.
(b) in the case of 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.
For V. Sridhar & Co.,
Membership No: 202337
Secunderabad, May 31, 2012
Annexure to the Auditors' Report
Re: Bhagyanagar Wood Plast Limited, Year ended March 31, 2012. Referred to
in paragraph 3 of our report of even date,
(i)(a) The company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) The management during the year at reasonable intervals has physically
verified the fixed assets. According to information and explanations given
to us no material discrepancies were noticed on such verification.
(c) The company has not disposed of substantial part of fixed assets during
(ii)(a) The company did not carry out any manufacturing activity during the
year and as such did not carry inventory.
(b) The company has maintained proper records with respect to the stock of
(iii)(a) The company has granted loan to Sri Venkateswara pipes Limited, a
related party. The maximum balance in the account during the year was
Rs.2.89 crores and the yearend balance is Rs. 2.89 Crores.
(b) The interest & other terms & conditions of the Loan given are not prima
facie prejudicial to interest of the company.
(c) The payment of principal & interest are as agreed by the parties & are
(d) The company had not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
U/s.301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations given
to us, there is adequate internal control system commensurate with the size
of the company and the nature of its business with regard to purchases of
inventory, fixed assets and with regard to the sale of goods. During the
course of our audit, we have not observed any continuing failure to correct
major weaknesses in internal control system.
(v) (a) According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
register maintained under section 301 of the Companies Act, 1956, have been
(b) According to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in the
register maintained under section 301 of the Companies Act, 1956 have been
made at prices which are reasonable having regard to prevailing market
prices at the relevant time. However there are no transactions exceeding
rupees five lakhs in this regard.
(vi) The company has not accepted deposits within the meaning of section
58A of the Companies Act, 1956.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central Government has not prescribed maintenance of cost
records to the company.
(ix)(a) The company is regular in depositing with appropriate authorities
undisputed statutory dues.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales tax,
customs duty, excise duty, service tax and cess were in arrears, as at
March 31, 2012 for a period of more than six months from the date they
(x) The company does not have any accumulated losses.
(xi) In our opinion and according to the information and explanations given
to us, the company has not defaulted in repayment of dues to a financial
institution or banks. The company has not issued any debentures.
(xii) The company has not granted any 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 nldhi/ mutual fund / society.
(xiv) Proper records have been maintained in respect of the transactions in
shares and timely entries have been made therein. In respect of the shares/
investments whose transfer has been pending as at the last day of the
financial year the entries have been made as soon as the transfer is
recorded. These shares and securities are held in the name of the company.
(xv) The company has not given any guarantee for loans taken by others.
(xvi) The company has not raised any term loans during the year.
(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 the
no funds raised on short-term basis have been used for long-term
investment. No long-term funds have been used to finance short-term assets
except permanent working capital.
(xviii) The company has not made any preferential allotment during the
(xix) The company has not issued any debentures.
(xx) The company has not raised any monies from public issue during the
year under review.
(xxi) 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 our
For V. Sridhar & Co.,
Membership No: 202337
Secunderabad, May 31, 2012