Report On the Financial Statements
We have audited the accompanying Financial Statements of Shivam
Autotech Limited (the Company) which comprises the Balance Sheet as
at 31st March, 2013, and the Statement of Profit and Loss and the Cash
Flow Statement for the year then ended, and Notes to the Financial
Statements comprising of a summary of significant accounting policies
and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956. This responsibility includes the design,
implementation and maintenance of internal controls relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatements, whether
due to fraud or error.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of the material misstatement of the financial statements,
whether due to error of fraud. In making those risk assessments, the
auditor considers internal control relevant to the Company''s
preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of accounting
policies used and reasonableness of the accounting estimates made by
management, as well as evaluating the overall presentation of the
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
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 31st March, 2013;
ii) In the case of Statement of Profit and Loss, of the profit of the
Company 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 (''the
Order'') issued by the Central Government of India in terms of section
227 of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order;
2. As required by section 227(3) of the Act, 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 purpose 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 those
c. The Balance Sheet, Statement of Profit and Loss 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 and Loss and
Cash Flow Statement 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 31 March 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956;
Annexure to Independent Auditor''s Report
Referred to in paragraph 1 under the heading of Report on Other Legal
and Regulatory Requirements of our Report of even date
(i) (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) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the Company during the year.
(ii) (a) The inventories of the Company have been physically verified
by the management during the year at reasonable intervals. Further
stocks in the possession and custody of third parties as at 31st March
2013 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 verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion, the Company is maintaining proper records of
inventories. As explained to us, the discrepancies noticed on
verification between the physical stocks and the book records were not
material and have been properly dealt with in the books of account.
(iii) (a) The company has not granted any loan, secured or unsecured,
to companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act 1956. Accordingly clauses 4(iii)
(b) to (d) of the order are not applicable.
(b) The company has not taken any loan, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under section 301 of the companies Act 1956. Accordingly clauses (iii)
(a) to (iii) (g) of paragraph 4 of CARO are not applicable.
(iv) 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 the size of the Company and the
nature of its business with regard to purchase of inventory, fixed
assets and sale of goods and services. Further, on the basis 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 nor have been informed of any instance of a
continuing failure to correct major weaknesses in the aforesaid
internal control system.
(v) (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.
(vi) 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.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size & nature of its business.
(viii) We have broadly reviewed the cost records maintained by the
Company pursuant to The Companies (Cost Accounting Records) rules,
2011 prescribed by the Central Government 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 by the Company. We
are, however, not required to make a detailed examination of such
(ix) (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 along with the forum where the dispute is pending :
S. Amount Forum where
Name of the Statute Nature of Dues which the
Lacs) the dispute
1. Income Tax Demand raised
on 6.45 A.Y 2008-
Act, 1961 assessment Tax
2. Central Excise Excise Duty 83.94 A.Y 2002-
Act, 1944 Excise
Central Excise Commissioner
3. Service tax 15.20 A.Y 2005-
Act, 1944 Excise
(x) 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.
(xi) According to the information and explanations given to us and as
per the books and records examined by us, generally the Company has not
defaulted in repayment of dues to any financial institutions or banks.
(xii) 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.
(xiii) 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.
(xiv) 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.
(xv) The company has not given any guarantees for loans taken by others
from bank or financial institution.
(xvi) 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.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet, the Cash Flow Statement
and other records examined by us, the Company has not used funds raised
on short term basis for long term investment during the year.
(xviii) 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, during the year.
(xix) The Company has not issued any debentures during the year nor has
any outstanding debentures.
(xx) The Company has not raised any money by public issues during the
(xxi) 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 or 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 Partner
Date: May 28, 2013
Membership No. 078017