We have audited the attached Balance Sheet of Shivam Autotech Limited
as at 31st March, 2011 and also the Profit & Loss Account and the Cash
Flow Statement of the Company for the year ended on that date, annexed
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.
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
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.
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 specified in paragraphs 4 and 5 of the said
Further to our comments in the Annexure referred to above, we report
a) We have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purposes of
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
c) The Balance Sheet, Profit & 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 & 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, 2011 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2011 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, 2011;
ii) In the case of Profit and Loss Account, of the Profit for the year
ended on that date; and
iii) In the case of Cash Flow Statement, of the cash flows 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 fixed
(b) Verification of the fixed assets is being conducted based on a
phased programme by the management designed to cover all assets, which,
in our opinion, is reasonable having regard to the size of the company
and nature of its business. Discrepancies noticed on such verification
as compared to book records were not material and have been properly
adjusted in the books of account.
(c) Fixed assets disposed off during the year were not substantial.
2. (a) The inventory has been physically verified during the year by
the management at all its locations at reasonable intervals. Further
stocks in the possession and custody of third parties as at 31st March
2011 have been verified by the management with reference to
confirmations or statement of account or correspondence of the third
parties. In our opinion, the frequency of such verification is
(b) The procedures for the physical verification 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 verification of
inventory as compared to book records were not material and have been
properly dealt with in the books of account.
3. (a) As informed, 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. Accordingly, the provisions of clause 4 (iii)
(b), (c) & (d) of the Companies (Auditor''s Report) Order, 2003 (as
amended) are not applicable to the Company.
(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 1700.00 lacs and year-end balance
was Rs 500 lacs. Apart from this, the company has not taken any other
loans, secured or unsecured, from companies, firms or other parties
listed in the register maintained under section 301 of the Companies
(c) In our opinion, other terms & 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 fixed 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 Companies Act, 1956 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 Companies Act, 1956 and aggregating during the year to Rupees five
lacs 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
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 Companies Act, 1956 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 as
on the date of the balance sheet.
(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,
Custom Duty, Income Tax and Cess which have not been deposited on
account of any dispute except the following dues of Service Tax and
Income Tax along with the forum where the dispute is pending :
Name of Nature of Dues Year to which Forum Amount
the Statute amount pertains (Rs. in lacs)
Finance Service Tax 2005-06 to Additional 15.43
Act, 1994 2009-10 Commissioner
Income Demand raised A.Y. 2007-08 Commissioner 6.45
Tax Act, on assessment of Income Tax
10. There are no accumulated losses of the Company as at the end of
the financial year. There are no cash losses during the financial year
and in the immediately preceding financial 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 financial 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 Benefit fund / Society and hence the related reporting
requirements of the Order 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 financial 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, on an overall examination of
the Balance Sheet of the Company, the funds raised by the Company on
short-term basis have been applied for long-term investment to the
extent of Rs. 1030.04 Lacs. We understand from management that the
company is in the process of arranging suitable long term funds to
replace these short term funds
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.
Firm Registration No. 000756N
Place : New Delhi KAMAL KISHORE
Date : 28.05.2011 Partner
Membership Number - 078017