We have audited the attached Balance Sheet of Shivam Autotech Limited
as at 31st March, 2009 and also the Profi t & Loss Account and the Cash
Flow Statement of the Company for the year ended on that date, annexed
thereto.
These fi nancial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these fi
nancial statements based on our audit.
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the fi
nancial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the fi nancial statements. An audit also includes
assessing the accounting principles used and signifi cant estimates
made by the management, as well as evaluating the overall fi nancial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
As required by the Companies (Auditors Report) Order, 2003 as amended
by the Companies (Auditors Report) (Amendment) Order, 2004
(Collectively the Order) issued by the Central Government of India in
terms of Section 227 (4A) of the Companies Act, 1956 and on the basis
of such checks as we considered appropriate and according to the
information and explanations given to us, we enclose in the Annexure a
statement on the matters specifi ed in paragraphs 4 and 5 of the said
Order.
Further to our comments in the Annexure referred to 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 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, Profi t & 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, Profi t & Loss Account and 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.
e) On the basis of written representations received from the directors
as on 31st March, 2009 and taken on record by the Board of Directors,
we report that none of the directors is disqualifi ed as on 31st March,
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 read with the
Accounting policies and Notes thereon, 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 Balance Sheet, of the state of affairs of the Company
as at 31st March, 2009;
ii) In the case of Profi t and Loss Account, of the Profi t for the
year ended on that date; and iii) In the case of Cash Flow Statement,
of the cash fl ows for the year ended on that date.
ANNEXURE TO AUDITORS REPORT (Annexure referred to in our report of
even date)
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fi xed
assets.
(b) The Company has a phased programme of physical verifi cation of its
fi xed assets which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. Management has
physically verifi ed certain fi xed assets during the year.
Discrepancies noticed on such verifi cation as compared to book records
were not material and have been properly adjusted in the books of
accounts.
(c) Fixed assets disposed off during the year were not substantial.
2. (a) As explained to us, physical verifi cation has been conducted
by the management at reasonable intervals in respect of
inventory. Further stocks in the possession and custody of third
parties as at 31st March 2009 have been verifi ed by the management
with reference to confi rmations or statement of account or
correspondence of the third parties. In our opinion, the frequency of
such verifi cation is reasonable.
(b) The procedures for the physical verifi cation of inventory followed
by the management are, in our opinion, reasonable and adequate in
relation to the size of the Company and nature of its business.
(c) In our opinion, the Company is maintaining proper records of
inventory. The discrepancies noticed on physical verifi cation of
inventory as compared to book records were not material and have been
properly dealt with in the books of account.
3. (a) The Company has not granted any loan, secured or unsecured, to
Companies, fi rms and other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
(b) The company has taken unsecured loan in the nature of advance
against supplies, from a Company covered in the register maintained
under section 301 of the Companies Act, 1956. The maximum amount
outstanding during the year was Rs 1400.00 lacs and year end balance of
such loan was Rs NIL. Apart from this, the company has not taken any
other loans, secured or unsecured, to companies, fi rms or other
parties listed in the register maintained under section 301 of the
Companies Act, 1956.
(c) In our opinion, other terms and conditions of such loan are, prima
facie, not prejudicial to the interest of the Company.
(d) In respect of the aforesaid loan, the company was regular in
repayment of principal amount and interest due thereon as per the terms
of the acceptance.
4. In our opinion, and according to the information and explanations
given to us during the course of audit, there are adequate internal
control systems commensurate with size of the Company and the nature of
its business with regard to purchase of inventory and fi xed assets and
for the sale of goods and services. Further, on the basis of our
examination of the books & records of the company, carried out in
accordance with the generally accepted auditing practices in India, we
have neither come across nor have we been informed of any instance of
major weaknesses in the aforesaid internal control systems.
5. (a) Based upon the audit procedures applied by us and according to
the information and explanations given to us, we are of
the opinion that the particulars of contracts or arrangements that need
to be entered into the register maintained under section 301 of the Act
have been so entered.
(b) In our opinion, and 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 Act and aggregating during the year to Rupees fi ve lakhs or more
in respect of each party have been made at prices which are reasonable
having regard to market prices for such transactions, prevailing at the
relevant time, where such market prices are available.
6. The Company has not accepted any deposits from the public within
the meaning of section 58A and 58AA or any other relevant provisions of
the Companies Act, 1956 including the Companies (Acceptance of
Deposits) Rules, 1975.
7. In our opinion, the Company has an internal audit system
commensurate with the size & nature of its business.
8. We have broadly reviewed the Cost Accounting records, maintained by
the Company pursuant to the Rules prescribed by the Central Government
for the maintenance of cost records under clause (d) of sub-section (1)
of section 209 of the Act, and are of the opinion that, prima facie,
the prescribed accounts and records have been made and maintained. We
are, however, not required to make a detailed examination of such books
and records.
9. (a) According to the records of the Company, undisputed statutory
dues including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income-Tax, Sales-Tax,
Wealth-Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
material statutory dues have been generally regularly deposited with
the appropriate authorities during the year and there are no such
undisputed statutory dues outstanding as on the date of Balance Sheet
for a period exceeding six months from the date they became payable.
(b) According to the information & explanations given to us and as per
the books and records examined by us, there are no dues in respect of
Excise Duty, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Income
Tax and Cess which have not been deposited on account of any dispute.
10. The company is in existence for less than 5 years. However, there
are no accumulated losses of the Company at the end of the fi nancial
year. There are no cash losses during the fi nancial year and in the
immediately preceding fi nancial year.
11. According to the information and explanations given to us and as
per the books and records examined by us, the Company has not defaulted
in repayment of dues to any fi nancial institution or bank.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The Company does not fall within the category of Chit fund / Nidhi
/ Mutual Benefi t fund / Society and hence the related reporting
requirements are not applicable.
14. The Company is not dealing in or trading in shares, securities,
debentures, and other investments. Accordingly, the provisions of
clause 4 (xiv) of the Order are not applicable to the company.
15. The company has not given any guarantees for loans taken by others
from bank or fi nancial institution.
16. In our opinion, and according to the information and explanations
given to us, the term loans raised during the year by the Company have
been applied for the purpose for which the said loans were obtained,
where such end-use has been stipulated by the lender.
17. According to the information and explanations given to us and as
per the books and records examined by us, as on the date of balance
sheet, the funds raised by the Company on short-term basis have not
been applied for long term investments.
18. The Company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. The Company has not issued any debentures during the year nor has
any outstanding debentures.
20. The Company has not raised any money by way of public issues
during the year.
21. During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices in India, we have neither come across any instance
of fraud on or by the Company, noticed and reported during the year,
nor have we been informed of such case by the management.
For S.S. KOTHARI MEHTA & CO.
Chartered Accountants
(ARUN K. TULSIAN)
Partner
M. No. 89907
Place: New Delhi
Dated: 29-06-2009
