We have audited the attached Balance Sheet of Amtek Auto Limited as at
30th June 2010, the Profit and Loss Account and also 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.
We conducted our audit in accordance with auditing standards generally
accepted in India (Indian GAAP). 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
As required by the Companies (Auditors Report) Order, 2003 (as
amended) by the companies (Auditors Report) (amended) order, 2004
(together the order) issued by the Central Government of India 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
paragraph 4 and 5 of the said order.
Further to our comments in the Annexure referred to above, we report
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose 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
(iii) The Balance Sheet,Profit and Loss Account and Cash Flow Statement
of the Company, dealt with by this report are in agreement with the
books of account.
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (30 of section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on 30th June 2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
30th June 2010 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 in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 30th June 2010;
(b) in the case of the Profit and Loss Account, of the Profithr the
year ended on that date; and
(c) in the case of Cash Flow Statement, of the cash flow for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE OF AMTEK
AUTO LIMITED FOR THE YEAR ENDED 30th JUNE 2010
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
(b) As explained to us, fixed assets, according to the practice of the
Company, have been physically verified by the management at reasonable
intervals. In our opinion, the frequency of physical verification of
fixed assets is reasonable having regard to the size of the Company and
nature of its assets. According to the information and explanations
given to us, no material discrepancies were noticed on such physical
(c) During the year, the Company has not disposed off substantial part
of the fixed assets and the going concern status of the Company is not
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of physical verification
(b) The procedure for physical verification of inventories followed by
the management is reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) The Company, during the year under report, has given loans &
advances to its seven subsidiariy companies and joint ventures, firms
or other parties covered in the register maintained under Section 301
of the Companies Act, 1956.
a) The balance at the end of the year and the maximum amount involved
during the year was Rs.68,778.83 lacs.
b> In our opinion and according to the information and explanations
given to us, the rate of interest, where-ever applicable and other
terms and conditions are not prima-facie prejudicial to the interest of
c) In respect of the loan granted to its subsidiaries, the loan is
interest free and being repayable on demand are not overdue.
(iv) 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 purchase of inventories, consumable stores,
fixed assets and with regard to sale of goods and services. During the
course of our audit, we have not observed any continuing failure to
correct major weaknesses in internal controls.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangement
referred to in section 301 of the act has been entered in the register
required to be maintained under section 301 of the Companies Act, 1956.
(b) In our opinion and according to the information & 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 in respect of any party during the year have
been made at prices which are reasonable having regard to prevailing
market prices at the relevant time.
(vi) In our opinion and according to the information and explanation
given to us, the Company has complied with all the provisions of
section 58A and 58AA and any other relevant provisions of the Companies
Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with
regard to deposits accepted from public. No order has been passed by
the Company Law Board, Reserve Bank of India, National Company Law
Tribunal or any other Court or any Tribunal.
(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 prescribed maintenance of cost
accounting records under section 209 (1) (d) of the Companies Act, 1956
in respect of certain machining activities of the Company. We have
broadly reviewed the accounts and records of the Company in this
connection and are of the opinion that prima facie, the prescribed
accounts and records have been properly maintained.
(ix) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees state insurance, income
tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess
and other material statutory dues applicable to it.
(b) The disputed statutory dues aggregating to Rs.30.04 lacs, that have
not been deposited on account of matters pending before appropriate
authorities are as under:
Sr. Name of the Statute Nature Period to
No. of Dues which it
1. Haryana Sales Tax Act Sales Tax 1991
& Central Sales Tax Act
2. Excise Duty Cenvat 2008
Name of the Statue Forum where Amount
dispute is (Rs.
pending in lacs)
Haryana Sales Tax Act
& Central Sales Tax Act Appellete Sales 10.62
Excise Duty Commissionerate 19.42
(x) The Company has no accumulated losses and has not incurred any cash
loss during the year under report or in the immediately preceding
(xi) in our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions, banks or debenture holders.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause of
4(xiii) of the Companies (Auditors Report) Order, 2003 are not
applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 [as amended) are not applicable to the Company. The Company,
however, is maintaining proper records of transactions and contracts in
respect of long term investment made by it and timely entries have been
made therein. Further, all the securities including shares, debentures
and other investments have been held by the Company in its own name.
(xv) The Company has given guarantees for credit facilities taken by
others from Banks or Financial Institutions, the terms and conditions
whereof are not prejudicial to the interest of the Company.
(xvi) According to the information and explanation given to us, in our
opinion, term loan availed by the Company were, prima facie, applied by
the Company during the year under report for the purpose for which the
term loans were obtained, other than temporary deployment pending
(xvii) According to the information and explanation given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short term basis have been used for long term
investment and no long term funds have been used to finance short term
assets except permanent working capital.
(xviii) According to the information & explanation given to us, the
Company, during the year under report, has made preferential allotment
of 1,50,00,000 equity shares of Rs.2/- each at a premium of Rs.131/-
per shares against warrants issued by it in the earlier years, to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956. The Company has also received
application money against 2,40,00,000 warrants (carrying
option/entitlement to subscribe to 1 number of equity share of Rs.2/-
each at a premium of Rs.178/- per share to parties and Companies
covered in the register maintained under section 301 of the companies
Act, 1956. According to the information & explanation given to us, the
prices at which shares have been issued, is not pre- judicial to the
interest of the Company.
(xix) According to information and explanation given to us and the
records of the Company examined by us, the Company has issued Non
Convertible Debentures and has created security in favour of the
(xx) According to information and explanation given to us and the
records of the Company examined by us, the Company has not raised any
money by public issue during the year.
(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 audit.
For & on behalf of
Manoj Mohan & Associates
Firm Regn. No.009195C
(M. K. Aggarwal)
Place : New Delhi Partner
Dated : 24th November 2010 Membership No.-76980