We have audited the attached Balance Sheet of Shivam Autotech Limited
as at 31st March, 2012 and also the Statement of Profit & Loss and the
Cash Flow Statement of the Company for the year ended on that date,
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, Statement of Profit & Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
(d) In our opinion, the Balance Sheet, Statement of Profit & Loss 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, 2012 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2012 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, 2012; (ii) In the case of Statement of Profit
and Loss, 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
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
2012 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. The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956.
Consequently, clauses (iii) (a) to (iii) (g) of paragraph 4 of CARO are
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 thegenerally 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 on the audit procedures applied by us and according to
the information and explanations provided by the management, we are of
the opinion that there are no particulars of contracts or arrangements
that need to be entered in the register maintained under section 301 of
the Companies Act, 1956.
(b)Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that, there are no transactions made in pursuance of contracts
or arrangements required to be entered in the register maintained under
section 301 of the Companies Act, 1956 and exceeding the value of five
Lacs rupees in respect of each party during the year.
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 records maintained by the Company
pursuant to The Companies (Cost Accounting Records) rules, 2011 as
notified by notification no. GSR 429 (E) dated 3rd June, 2011 of
Ministry of Corporate Affairs, Government of India under section
209(1)(d) of the Companies Act, 1956. We are of the opinion that prima
facie the prescribed records have been made and maintained by the
Company. We are, however, not required to make a detailed examination
of such 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
(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 Income Tax along with the forum where the dispute is
Name of Nature of Dues Year to which Amount Forum
the Statute amount
pertains (Rs.in Lacs)
Income Demand A.Y 2008-09 6.45 Commissioner of
Tax Act, raised on Income Tax
1961 assessment (Appeals),
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 there were no delays in
amounts due in respect of Term Loans from Banks / Financial
Institutions on account of Principal except 2 instances of Rs.600 Lacs
with delay ranging from 30 to 45 days and 2 instances of Rs.540 Lacs
with delay ranging from 60 to 90 days of Punjab National Bank, the
amount being fully paid up to 31st March 2012.
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. 3,626.68 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 : 25th May, 2012 Partner
Membership Number - 078017