MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ('the act') with respect to the preparation of these Standalone 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 Companies (Accounts) Rules, 2014. This responsibility includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the Assets of the Company and for preventing and detecting frauds and other irregularities; Selection and application of appropriate Accounting Policies; Making judgments and estimates that are reasonable and prudent; Design, Implementation and Maintenance of adequate Internal Financial Controls, that are 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

Standalone 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 a true and fair view, in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate Internal Financial Controls System over Financial Reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of Accounting Policies used and the reasonableness of the Accounting Estimates made by the 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 of the State of Affairs of the Company as at March 31, 2015, its Profit and its 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 further 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 purpose 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, Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the Books of Account;

d) In our opinion, the aforesaid Financial Statements comply with the applicable 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 terms of Section 164(2) of the Act.

f) With respect to other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its fnancial position.

ii. The Company did not have any Long- Term Contracts including Derivative 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 during the year ended March 31, 2015.

ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF BS LIMITED ON THE ACCOUNTS OF THE COMPANY FOR THE YEAR ENDED MARCH 31, 2015 UNDER "REPORT ON OTHER LEGAL & REGULATORY REQUIREMENTS"

On the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of our audit, we report that:

i. (a) The Company has maintained proper Records showing full particulars, including quantitative details and situation of Fixed Assets.

(b) As explained to us, Fixed Assets have been physically verified by the Management at regular intervals; as informed to us no material discrepancies were noticed on such verification.

ii. (a) The Inventory has been physically verified during the year by the Management and in our opinion, the frequency of verification is reasonable.

(b) In our opinion, the procedures of the physical verification of inventory 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 and as explained to us, no material discrepancies were noticed on physical verification of Stocks as compared to book records.

iii. During the year the Company has granted a Loan of Rs. 24,60,35,100/- to BS Global Resources Private Limited, which is a party covered in the Register maintained U/s. 189 of the Companies Act 2013. The Closing balance as on March 31, 2015 is Rs. 16,70,20,749/-.

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, for the purchase of Fixed Assets and for the sale of services. Further, on the basis of our examination of the Books and Records of the Company and according to the information and explanations given to us, no major weakness has been noticed or reported.

v. The Company has not accepted any Deposits from the Public covered under Section 73 to 76 of the Companies Act, 2013.

vi. We have broadly verified the Books of Accounts and Records maintained by the Company in respect of products where, pursuant to the Rules made by the Central Government of India, the maintenance of Cost Records has been specified under the Sub-section (1) of Section 148 of the Companies Act 2013, and are of the opinion that, prima facie, the prescribed Accounts and Records have been made and maintained.

vii. (a) According to the information and explanations given to us and based on the records of the Company examined by us, the Company is regular in depositing the undisputed Statutory Dues, including Provident

Fund, Employees' State Insurance, Income-tax, Service Tax, Custom Duty, Excise Duty and other Material Statutory Dues, as applicable, with the appropriate Authorities in India;

(b) There were no undisputed amounts payable in respect of Provident Fund, Employees' State Insurance, Income-tax, Service Tax, Custom Duty, Excise Duty and other Material Statutory Dues in arrears as at March 31, 2015 for a period of more than 6 months for the date they became payable.

(c) According to the information and explanations given to us and based on the Records of the Company examined by us, there are no dues of Income Tax, Wealth Tax, Service Tax, Sales Tax, Customs Duty and Excise Duty which have not been deposited on account of any disputes.

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

viii. The Company does not have accumulated losses at the end of the Financial Year and the Company has not incurred cash losses during the Financial Year covered by our audit and in the immediately preceding Financial Year.

ix. In our opinion, and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to Financial Institution /Banks. The Company has not issued any Debentures.

x. In our opinion, and according to the information and explanations given to us, the terms and conditions of Guarantees given by the Company for Loan taken by others from Bank or Financial Institutions are not prejudicial to the interest of the Company.

xi. In our opinion, and according to the information and explanations given to us, the Term Loans have been applied, on an overall basis, for the purposes for which they were obtained.

xii. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company has been noticed or reported during the year.

                                                  For P. Murali & CO.,

                                               Chartered Accountants

                                      Firm Registration No : 007257S

                                               P. Murali Mohana Rao 

Date : 20/05/2015 M.No. 023412