ANNUAL REPORT 2005-2006
1. We have audited the attached Balance sheet of M/s. BHORUKA ALUMINIUM
LIMITED as at March 31, 2006, and also the Profit and Loss Account and 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 for our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003, issued by
the Central Government of India in terms of sub-section (4A) of Section 227
of the Companies Act, 1956, we annex hereto a statement on the matter
specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph (3)
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 purposes of our
(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 the books and
proper returns adequate for the purpose of our audit have been received
from branches of the Company, not visited by us;
(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 applicable Accounting
Standards referred to in sub-section (3C) of Section 211 of the Companies
(e) On the basis of written representations received from the directors, as
on March 31, 2006, and taken on record by the Board of Directors, we report
that none of the directors of the Company is disqualified as on March 31,
2006 from being appointed as a director, in terms of clause (g) of sub-
section (1) of Section 274 of the Companies Act, 1956;
(f) 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
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2006
(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 the Cash Flow Statement, of the cash flows for the
year ended on that date.
For R.S. Agarwala & Co.,
Date : 22nd July, 2006.
ANNEXURE TO AUDITORS' REPORT
(Referred to the paragraph 3 of our report of even date)
1. (a) The company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
(b) As explained to us, the fixed assets have been physically verified by
the management at reasonable intervals and no material discrepancies were
noticed on such physical verification.
(c) There was no substantial disposal of fixed assets during the year.
2. (a) Physical verification of inventory has been conducted by the
management at reasonable intervals.
(b) The procedure for Physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and nature of its business.
(c) The Company has maintained proper records of inventory and no major
discrepancies were noticed on such physical verification.
3. (a) The Company has taken interest free unsecured loan from Managing
Director, person covered under Section 301 of the Companies Act, 1956. The
maximum amount involved during the year and year end balance are Rs.318
Lakhs and Rs.318 Lakhs respectively.
(b) The loan is interest free and terms and conditions are not prejudicial
to the interest of the Company.
(c) As there is no stipulated repayment schedule for the above loan, hence,
there is no overdue amount more than Rupees one lakh.
(d) In our opinion and 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 301 of the Companies Act, 1956.
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 for the purchase, of
inventory, fixed assets and for the sale of goods. Further we have not come
across any major weakness in the internal control.
5. In respect of transactions covered under Section 301 of the Companies
(a) In our opinion and according to the information and explanations given
to us, the transactions that need to be entered into the register
maintained under section 301 have been so entered.
(b) In our opinion and according to the information and explanations given
to us, the transactions with parties exceeding the value of Rupees five
lakhs each have been entered into during the financial year, are at prices
which are reasonable having regard to the prevailing market prices at the
6. In our opinion and according to information and explanations given to
us, the Company has not accepted any fixed deposits from the public, under
Section 58A of the Companies Act, 1956.
7. In our opinion, the Company has an internal audit system commensurate
with the size and nature of its business.
8. We have broadly reviewed the books of accounts maintained by the Company
pursuant to the Rules made by the Central Government for the maintenance of
cost records under, Section 209(1)(d) of the Companies Act, 1956 and are of
the opinion that prima facie the prescribed records have been made and
maintained. We have not, however, made a detailed examination of the same.
9. According to the records of the Company, it has generally been regular
in depositing undisputed statutory dues including Provident Fund and
Employees' State Insurance, Income-tax, Sales tax, Custom Duty, Excise
Duty, Service-tax, Cess and other statutory dues during the year with the
appropriate authorities, and there is no arrears of outstanding statutory
dues as on that date, for a period more than six months from the date they
10. The Company has accumulated losses at the end of the financial year,
less than fifty percent of its net worth and it has not incurred cash
losses during the current financial year and in the financial year
immediately preceding such financial year also;
11. Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to bank.
12. According to the information and explanations given to us, the Company
has not granted any loans and advances on the basis of securities by way of
pledge of shares, debentures and other securities.
13. The nature of Company's activities during the year is such that clauses
(xiii) and (xiv) of paragraph 4 of Companies (Auditors' Report) Order, 2003
are not applicable to the Company for the year.
14. The Company has not given any guarantee for loans taken by others from
banks or financial institutions.
15. Based on our audit procedures and information and explanation given by
management, the Company has applied for a term-loan during the year.
16. On the basis of information and explanations given to us and on an
overall examination of the Balance Sheet and the Cash Flow Statement of the
Company, funds raised on short-term basis have, prima facie, not been used
during the period for long-term investment.
17. The Company has not made any preferential allotment of shares during
18. The Company has not issued any debentures during the year.
19. The Company has not raised any money by the public issue during the
20. Based upon the audit procedures performed and as per the information
and explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our audit.
For R.S. Agarwala & Co.,
Date : 22nd July, 2006.