1. We have audited the attached Balance Sheet of M/s. BHORUKA
ALUMINIUM LIMITED as at March 31, 2009, and also the Profit and Loss
Account and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Companys 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 the 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, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
d. in our opinion, the Balance Sheet, the Profit and Loss Account and
the 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 Act, 1956;
e. on the basis of written representations received from the
directors, as on March 31, 2009, and taken on record by the Board of
Directors, we report that none of the directors of the Company are
disqualified as on March 31, 2009 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 in India:
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2009;
ii. in the case of the Profit and Loss Account, of the loss 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.
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
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 disposal of substantial part of its fixed assets
during the year.
2. a. Physical verification of inventory has been conducted by the
management at reasonable intervals.
b. The procedures 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 physical verification.
3. In our opinion and according to the information and explanations
given to us, the company has not taken or 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 systems 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 and
services. Further, we have not come across any major weakness in the
internal control system nor we have been informed of any such instance.
5. In respect of transactions covered under Section 301 of the
Companies Act, 1956:
(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 entered into during the financial year, are at
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
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, 58AA or any other relevant provisions 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 account and records
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 are no arrears of
outstanding statutory dues as on that date, for a period of more than
six months from the date they became payable.
10. The Company has accumulated loss of Rs. 4,912,538 as on 31st
March, 2009, which is less than fifty 50 percent of Companys net
11. Based on our audit procedures and as per the information and
explanations given by the management, during the year, the Company has
defaulted in repayment of dues of Rs. 23,044,130 to the Bank, since
October, 2008. The Company has made an application to the Bank for
re-schedulement of the loan.
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 Companys 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 the management, the Company has used the term-loan for the
purpose for which the same has been obtained.
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 year for long-term investment.
17. The Company has not made any preferential allotment of shares
during the year.
18. The Company has not issued any debentures during the year.
19. The Company has not raised any money by the public issue during
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.,
Place: Bangalore Partner.
Date : 27th May, 2009 Membership No. 22958