Mar 31, 2023
Shivam Autotech Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of Shivam Autotech Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2023, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date, and notes to the financial statements including a summary of significant accounting policies and other explanatory information (hereinafter referred to as "the financial statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013, as amended ("the Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2023 and its loss and other comprehensive income, changes in equity and its cash flows for the year ended on that date.
We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs), as specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the financial statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the financial statements.
We draw attention to:
1. Note 7 in the financial statements regarding management judgment for determining deferred tax assets and minimum alteration tax (MAT) credit entitlements of Rs.1989.25 Lakhs and Rs.1494.06 Lakhs respectively for earlier years which is available to the Company on the assumption that there will be sufficient future taxable profits. As a matter of prudence, deferred tax assets have been recognized till March 31, 2021. Deferred tax assets have not been recognized for year ended March 31, 2023.
2. Note 10.1 in the financial statements regarding booking of material consumption and accounting impact of physical verification more fully explained in the said note.
Our opinion is not modified in respect of above matters. Key Audit Matters
Key audit matters (KAM) are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined that there are no key audit matters to communicate in our report.
The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual Report but does not include the financial statements and our auditor''s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Management and Those Charged with Governance for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, changes in equity and cash flows of the Company in accordance with accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken based on these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3) (i) of the Act, we are also responsible for expressing our opinion on internal financial controls with reference to standalone financial statements and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Other Matters
Rep ort on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order") issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and 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 it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Cash Flows and the Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid financial statements comply with the Ind AS specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended.
e) On the basis of the written representations received from the directors as on March 31, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2023, from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to the financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".
g) With respect to the Other matters to be included in the Auditor''s Report in accordance with the requirements of Section 197(16) of the Act, as amended:
In our opinion, the managerial remuneration for the year ended March 31, 2023 has been paid by the Company to its directors is in accordance with the provisions of Section 197 read with Schedule V to the Act.
h) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at March 31, 2023 on its financial position in its financial statement - Refer note 31 to the financial statements.
ii. The Company has made provisions, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long term contracts including derivatives contracts.
iii. There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company.
iv. (a) Management has represented to us
that, to the best of its knowledge and
belief, other than as disclosed in the notes to the accounts, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) Management has represented to us that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been received by the Company from any person(s) or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(c) Based on our audit procedures conducted that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that cause us to believe that the representation under sub-clause (a) & (b) contain any material misstatement.
(v) In our opinion, and according to the information and explanations given to, the company has not declared and paid dividend during the year. Hence, the provisions of Section 123 to the Act are not applicable to the Company and have not been commented upon.
Chartered Accountants Firm''s Registration Number: 001075N
Subodh Kumar Modi
Partner
Place: New Delhi Membership Number: 093684
Date: May 25, 2023 UDIN: 23093684BGXGSU7925
Mar 31, 2018
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of Shivam Autotech Limited (âthe Companyâ), which comprise the Balance sheet as at March 31, 2018, Statement of Profit and Loss (including the statement of other comprehensive income), the Statement of Cash Flows and the statement of changes in equity for the year then ended, and a summary of significant accounting policies and other explanatory information (herein after referred to as âInd AS financial statementsâ).
Managementâs Responsibility for the Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended thereof.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these Ind AS financial statements based on our audit. In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder and the Order Issued under Section 143(11) of the Act.
We conducted our audit of the Ind AS financial statements in accordance with the Standards on Auditing, specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the Ind AS financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, its loss including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Emphasis of Matter
Without qualifying we draw attention to Note no. 7 to the financial statements wherein management has recognized deferred tax assets on the assumption that there would be sufficient future taxable profits, more fully explained in the said note for reversal of such deferred tax assets.
Our opinion is not modified in respect of this matter.
Other Matter
The comparative financial information of the Company for the year ended March 31, 2017 and the transition date opening balance sheet as at April 01, 2016 included in this Ind AS Financial Statements, are based on the previously issued statutory financial statement prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited and reported by S.S. Kothari Mehta & Co. having firm registration number 000756N who have issued an unmodified audit report dated May 30, 2017 and May 28, 2016, have been furnished to us by the management and which have been relied upon by us for the purpose of issuing the report on the financial statement as adjusted for the differences in the accounting principles adopted by the Company on transition to Ind AS, which has been audited by us.
Our report is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (the âOrderâ), issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
a. We have sought and 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 it appears from our examination of those books;
c. The balance sheet, statement of profit and loss including statement of other comprehensive income, the statement of cash flow and statement of changes in equity dealt with by this Report are in agreement with the books of account;
d. In our opinion, the aforesaid Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended thereof;
e. On the basis of the written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164 (2) of the Act;
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ;
g. With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its Ind AS financial statements - Refer Notes 31 to the Ind AS financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; and
iii. There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company during the year ended March 31, 2018.
Annexure A to the Independent Auditorâs Report to the members of Shivam Autotech Limited dated May 30, 2018.
Report on the matters specified in paragraph 3 of the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of section 143(11) of the Companies Act, 2013 (âthe Actâ) as referred to in paragraph 1 of âReport on Other Legal and Regulatory Requirementsâ section
(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) The fixed assets are physically verified by the management according to a phased program designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, the fixed assets has been physically verified by the management during the year and no material discrepancies were noticed on such verification, discrepancies has duly been adjusted in the financials.
(c) According to the information and explanation given to us and on the basis of our examination of the records of the Company, the title deed of immovable properties are held in the name of the company.
(ii) The inventories of the Company (except stock lying with the third parties and in transit for which confirmations have been received / materials received) have been physically verified by the management at reasonable intervals. In our opinion and the procedures of physical verification of inventory followed by the Management are reasonable in relation to the size of the Company and nature of its business. The discrepancies noticed on such physical verification of inventory as compared to book records were not material and have been properly dealt with in the books.
(iii) The company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under section 189 of the Act. Accordingly clauses 3(iii) (a) to (c) of the Order are not applicable.
(iv) According to the information and explanations given to us, there are no loans, investments, guarantees, and securities granted in respect of which provisions of section 185 and 186 of the Act are applicable. Hence, clause 3(iv) of the Order is not applicable to the Company.
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of directives issued by the Reserve Bank of India and provisions of sections 73 to 76 or any other relevant provisions of the Act and the Rules framed thereunder .
(vi) 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 sub-section (1) of section 148 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.
(vii) (a) According to the records of the Company examined by us and the information and explanations given to us, the Company has generally deposited undisputed statutory dues including Employeesâ Provident Fund, Employeesâ State Insurance, Goods and Service Tax, Investor Education and Protection Fund, Income Tax, Wealth Tax, Service Tax, Custom Duty, Excise duty, Cess and any other material statutory dues, as applicable, within the prescribed time with the appropriate authorities during the year and there are no such undisputed amounts payable which have remained outstanding as at March 31, 2018 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us and as per the books and records examined by us, there are no dues of Custom Duty, Excise Duty, Service Tax and Sales Tax/ Value Added Tax/Goods & Service Tax and Cess which have not been deposited on account of any dispute, except the following in respect of disputed Income Tax along with the forum where dispute is pending:
S. No |
Name of the Statute |
Nature of Dues |
Amount (Rs. Lacs) |
Period to which the amount relates |
Forum where the dispute is pending |
1. |
Income Tax Act, 1961 |
Demand raised on assessment |
6.45 |
A.Y 2008-09 |
Commissioner of Income Tax (Appeals), New Delhi |
(viii) 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 repayments of its dues to banks and financial institution. The Company has not taken any loan from debenture holders and Government.
(ix) According to the information and explanations given by the management, the Company has not raised any monies by way of initial public offer or further public offer during the financial year, and the terms loans raised by the Company have been applied for the purpose for which they were obtained. Where such end use has been stipulated by the lender(s).
(x) 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 or any fraud on the Company by its officers or employees has been noticed or reported during the year, nor have we been informed of such case by the management.
(xi) In our opinion, and according to the information and explanations given to us that the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) As the Company is not a Nidhi Company, hence clause (xii) of the Order is not applicable to the Company.
(xiii) In our opinion, and according to the information and explanations given to us during the course of audit, transactions with the related parties are in compliance with section 177 and section 188 of the Act and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and on an overall examination of the balance sheet, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence, reporting requirements under clause 3(xiv) are not applicable to the Company and, not commented upon.
(xv) In our opinion and on the basis of information and explanations given to us, the Company has not entered into noncash transactions with directors and persons connected with him. Hence, the provisions of section 192 of Act are not applicable.
(xvi) In our opinion and on the basis of information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Annexure B to the Independent Auditorâs Report to the members of Shivam Autotech Limited dated May 30, 2018.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ) as referred to in paragraph 1(f) of âReport on Other Legal and Regulatory Requirementsâ section
We have audited the internal financial controls over financial reporting of Shivam Autotech Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Board of Directors of the Company is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the âGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of Indiaâ. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit.
We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, as specified under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
An audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness.
Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that:
a) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
b) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
c) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on âthe internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of Indiaâ
For NSBP & Co.
Chartered Accountants
Firm Registration No. 001075N
Sd/-
Deepak K. Aggarwal
Place: New Delhi Partner
Date: May 30, 2018 Membership No: 095541
Mar 31, 2015
We have audited the accompanying financial statements of Shivam
Autotech Limited ("the Company") which comprises the balance sheet as
at March 31, 2015, the statement of profit and loss, the cash flow
statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134 (5) of the Companies Act, 2013 ("the Act") with respect
to 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 principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the company and
for preventing and detecting fraud & other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are responsible and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records relevant to the preparation and
presentation of financial statements that give a true and fair view and
are free from material misstatements, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and the matters which are required to be
included in the audit report under the provisions of the Act and the
rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143 (10) of the Act. 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 fraud or error. In making those risk assessments, the
auditor considers internal financial control relevant to the Company's
preparation of financial statement that gives a true and fair view in
order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31, 2015, and its profit and its 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, 2015 ('the
Order') issued by the Central Government of India in terms of Section
143 (11) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 3 and 4 of the Order;
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and 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 it appears from our examination of
those books.
(c) The balance sheet, the statement of profit and loss, and the cash
flow statement dealt with by this report are in agreement with the
books of account.
(d) In our opinion, the aforesaid financial statements comply with
accounting standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of written representations received from the directors
as on March 31,2015 taken on record by the Board of Directors, none of
the directors is disqualified as on March 31, 2015 from being appointed
as director in terms of Section 164 (2) of the Act.
(f) With respect to the other matters to be included, in the Auditors
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to best of our information and
accordingly to explanations given us;
i) The Company has disclosed the impact of pending litigation on its
financial position in its financial statements as referred to in Note
26 to the financial statements.
ii) Company did not have any long term contracts including derivative
contracts for which there were any material foreseeable losses.
iii) There has been no delay in transferring amounts required to be
transferred to the Investor Education and Protection Fund by the
Company.
Annexure referred to in paragraph 1 of 'Report on Other Legal and
Regulatory Requirements' of the Independent Auditor's Report of even
date to the members of Shivam Autotech Limited on its financial
statements as of and for the year ended March 31, 2015.
(i) In respect of fixed assets:
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management
during the year, the frequency of which, in our opinion, is reasonable
having regard to the size of the Company and the nature of its assets.
No discrepancies were noticed on such verification.
(ii) In respect of the Company's inventories:
(a) As explained to us the Management has conducted physical
verification of inventory at reasonable intervals during the year,
except stocks lying with third parties which have been verified with
reference to correspondence received from third parties.
(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 and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories. The discrepancies noticed on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of accounts.
(iii) As informed to us, the company has not granted any loans, secured
or unsecured, to companies, firms or other parties covered in the
register maintained under section 189 of the Act. Accordingly sub
clauses (iii) (a) & (iii) (b) of the Order are not applicable.
(iv) According to the information and explanations given to us, there
seems to be adequate internal control systems commensurate with the
size of the Company and the nature of its business, for the purchase of
inventory and fixed assets and for the 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, and according to the information and
explanations given to us, 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 systems.
(v) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of directives issued by the Reserve Bank of India
and provisions of sections 73 to 76 or any other relevant provisions of
the Act and the Rules framed thereunder are not applicable.
(vi) 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 sub-section (1) of section
148 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.
(vii) (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees' State
Insurance, Income-tax, Sales-tax, Wealth-tax, Service tax, Customs Duty,
Excise Duty, Value Added Tax, Cess and other material statutory dues, as
applicable, during the year with the appropriate authorities. There are
no such dues outstanding at the yearend for a period of more than six
months from the date they became payable.
(b) According to the information and explanations given to us and as
per the books and records examined by us, the details of dues of
Income-tax, Sales-tax, Wealth-tax, Service-tax, Customs Duty, Excise
Duty, Value added tax and Cess which have not been deposited on account
of any dispute and the forum where the dispute is pending, are as
follows :
S. No Name of the Nature of Dues Amount Period to which
Statute (Rs. Lacs) the amount
1. Income Tax Act, Demand raised on 6.45 A.Y 2008-09
1961 assessment
2. Central Excise Cenvat Credit 8.95 April 2009 to
Act, 1944 disallowance on March 2011
input services
S. No Name of the Forum where the
Statute dispute is pending
relates
1. Income Tax Act, Commissioner of
1961 Income Tax (Appeals),
New Delhi
2. Central Excise Commissioner of
Act, 1944 Central Excise
(Appeals), Gurgaon
(c) According to the information and explanations given to us, the
amount required to be transferred to Investor Education and Protection
Fund in accordance with the relevant provisions of the Companies Act,
1956 (1 of 1956) and Rules made thereunder has been transferred to such
fund within time.
(viii) The Company does not have accumulated losses as at the end of
the financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
(ix) According to the records of the Company examined by us and the
information and explanations given to us, in our opinion, the Company
has not defaulted in repayment of its dues to banks and financial
institutions. The Company does not have any outstanding debentures.
(x) According to the information and explanations given to us and on
the basis of our examination of the records, the Company has not given
any guarantee for loans taken by others from bank or financial
institutions.
(xi) According to the information and explanations given to us and on
the basis of our examination of the records, term loans were applied
for the purpose for which the loans were obtained, where such end use
has been stipulated by the lender(s).
(xii) During the course of our examination of the books and records of
the Company, carried out in accordance with generally accepted auditing
practices in India and according to the information and explanations
given to us, 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
Chartered Accountants
FRN - 000756N
SUNIL WAHAL
Partner
Membership No. 087294
Date: May 18,2015
Place: New Delhi
Mar 31, 2014
We have audited the accompanying Financial Statements of Shivam
Autotech Limited ("the Company") which comprises the Balance Sheet as
at 31st March, 2014, 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
The Company''s 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 notified under the Companies
Act, 1956 ("the Act") (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs)
and in accordance with the Accounting principles generally accepted in
India. This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
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 material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal controls 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 but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. 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 financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In case of balance sheet, of the state of affairs of the Company as
at March 31, 2014;
b) In case of statement of profit and loss, of the profit of the
Company for the year ended on that date; and
c) In case of cash flow statement, of the cash flows of the Company for
the year ended on that date.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditors'' Report) Order, 2003 (''the
Order'') issued by the Central Government in terms of Section 227(4A) of
the Act, we give in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the said 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
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, statement of profit and loss and cash flow
statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the balance sheet, statement of profit and loss and
cash flow statement comply with the Accounting Standards notified under
the Act ( which continue to be applicable in respect of Section 133 of
the Companies Act, 2013 in terms of General Circular 15/2013 dated 13
September 2013 of the Ministry of Corporate Affairs).
e) On the basis of written representations received from the Directors,
taken on record by the Board of Directors, none of the directors is
disqualified as on March 31, 2014, from being appointed as a director
in terms of Section 274(1)(g) of the Act.
ANNEXURE REFERRED TO IN THE INDEPENDENT AUDITORS'' REPORT TO THE MEMBERS
OF SHIVAM AUTOTECH LTD ON THE ACCOUNTS FOR THE YEAR ENDED MARCH 31,2014
(i) In respect of fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets on the
basis of available information.
(b) All fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. According to the
information and explanation given to us, no material discrepancies were
noticed on such verification.
(c) There were no substantial disposals of fixed assets during the
year.
(ii) In respect of the Company''s inventories:
(a) As explained to us the Management has conducted physical
verification of inventory at reasonable intervals during the year,
except stocks lying with third parties which have been verified with
reference to correspondence received from third parties.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventorie
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 and according to the information and explanations
given to us , the Company has maintained proper records of its
inventories. The discrepancies noticed on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of accounts.
(iii) The company has neither granted nor taken any loan, secured or
unsecured, to/ from 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) and (f) & (g) of the Order are
not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weakness or continuing failure to correct any major weakness in
the internal control system..
(v) (a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Act that need to be
entered into the register maintained under section 301 have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding value of Rupees five lakh in respect of each
party have been entered into during the financial year at prices which
are reasonable having regard to the prevailing market prices at the
relevant time where such market prices are available.
(vi) According to the information and explanations given to us, the
Company has not accepted any deposits from the public, within the
meaning of Sections 58A and 58AA or any other relevant provisions of
the Act including the Companies (Acceptance of Deposits) Rules, 1975.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the cost accounting records maintained
by the Company pursuant to the Rules made by the Central Government
under section 209(1)(d) of the Act, and are of the opinion that, prima
facie, the prescribed accounts and records have been made and
maintained. We have, however, not made detailed examination of cost
records with a view to determine whether they are accurate or not.
(ix) According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees'' State Insurance, Income-tax, Sales-tax,
Wealth-tax, Service tax, Customs Duty, Excise Duty, Cess and other
material statutory dues with the appropriate authority.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Income-tax, Wealth-tax, Service-tax, Sales-tax, Customs
Duty, Excise Duty, Cess and other undisputed statutory dues in arrears
as at March 31, 2-014 for a period of more than six months from the
date they became payable.
(c) According to the records of the Company, details of dues of
Income-tax, Sales-tax, Wealth-tax, Service-tax, Customs Duty, Excise
Duty and Cess which have not been deposited on account of any disputes
and the forum where the dispute is pending, are as follows:
(b) According to the information & explanations given to us and as per
the books and records examined by us, there
S. Name of the Nature of Dues Amount Period Forum
No. Statute (Rs.Lacs) to Where
which the
the dispute
amount is
relates pending
1. Income Tax Demand raised 6.45 A.Y 2008-09 Commissi-
Act, 1961 on assessment oner of
Income
Tax
(Appeals),
New Delhi
2. Central Excise Cenvat Credit 18.11 A.Y 2002-12 Commissi-
Act, 1944 disallowance on oner of
input services Central
Excise
(Appeals),
Gurgaon
(x) The Company has no accumulated losses as at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given by the management, we are of the opinion that the Company has not
defaulted in repayment of dues to financial institutions, banks or
debenture holders.
(xii) According to the information and explanations given to us , the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of the Order are not applicable to the Company.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments and hence related reporting requirement of the Order
are not applicable.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
(xvi) In our opinion and according to the information and explanations
given to us , term loans were applied for the purpose for which the
loans were obtained, where such end use has been stipulated by the
lender(s).
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet, cash flow statement and
other records examined by us, we report that the funds raised on short
- term basis have, prima facie, not been used during the year for
long-term investment.
(xviii) The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
section 301 of the Act.
(xix) According to the information and explanations given to us, during
the period covered by our audit report, the Company has created
securities in respect of debentures.
(xx) During the period covered by our audit report, the Company has not
raised any money by way of public issue.
(xxi) To the best of our knowledge and according to the information and
explanations given to us we report that no fraud on or by the Company
has been noticed or reported during the year.
For S. S. KOTHARI MEHTA & CO.
Chartered Accountants
Firm Registration No. 000756N
Sunil Wahal
Partner
Membership No. 087294
Place: New Delhi
Date: May 30, 2014
Mar 31, 2013
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.
Auditor''s Responsibility
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
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
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
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, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
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
assets.
(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
records.
(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
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 along with the forum where the dispute is pending :
Period to
S. Amount Forum where
Name of the Statute Nature of Dues which the
No (Rs.
Lacs) the dispute
is pending
amount
relates
1. Income Tax Demand raised
on 6.45 A.Y 2008-
09 Commissioner
of Income
Act, 1961 assessment Tax
(Appeals),
New Delhi
2. Central Excise Excise Duty 83.94 A.Y 2002-
12 Commissioner
of
Central
Act, 1944 Excise
(Appeals),
Gurgaon
Central Excise Commissioner
of Central
3. Service tax 15.20 A.Y 2005-
12
Act, 1944 Excise
(Appeals),
Gurgaon
(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
year.
(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.
Chartered Accountants
Firm Registration No. 000756N
Kamal Kishore
Place: New Delhi Partner
Date: May 28, 2013
Membership No. 078017
Mar 31, 2012
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,
annexed thereto.
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
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, Statement of 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, 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
even date)
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(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
reasonable.
(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
not applicable.
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
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 Income Tax along with the forum where the dispute is
pending :
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),
New Delhi
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.
Chartered Accountants
Firm Registration No. 000756N
Place: New Delhi KAMAL KISHORE
Date : 25th May, 2012 Partner
Membership Number - 078017
Mar 31, 2011
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
thereto.
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
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, 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
assets.
(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
reasonable.
(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
Act, 1956.
(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
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 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
Central
Excise,
Delhi-III
Income Demand raised A.Y. 2007-08 Commissioner 6.45
Tax Act, on assessment of Income Tax
1961 (Appeals),
New Delhi
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.
Chartered Accountants
Firm Registration No. 000756N
Place : New Delhi KAMAL KISHORE
Date : 28.05.2011 Partner
Membership Number - 078017
Mar 31, 2010
We have audited the attached Balance Sheet of Shivam Autotech Limited
as at 31st March, 2010 and also the Profit & Loss Account andthe Cash
FlowStatementoftheCompanyforthe yearendedonthatdate, annexedthereto.
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 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 enclosein theAnnexurea
statementon the matters specified inparagraphs 4 and5 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 purposesof 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 examinationof those
books;
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 theAccounting
Standards referred to in sub-section (3C) ofSection 211 ofthe
CompaniesAct, 1956.
e) On the basis of written representations received from the directors
as on 31st March, 2010 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2010 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 inIndia:
i) In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2010;
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
assets.
(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 inthe booksof 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
2010 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 ofsuch verificationisreasonable.
(b) The procedures for the physical verification of inventory followed
by the management are, in our opinion, reasonable and adequate
inrelation tothe size of the Company and nature ofits 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) The Company has not granted any loan, secured or unsecured, to
Companies, firms and other parties covered in the register maintained
under section 301ofthe CompaniesAct, 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 301ofthe CompaniesAct, 1956. The maximum amount
outstanding during the year was Rs 1900.00 lacs and year end balance
was Rs 1700 lacs. Apart from this, the company has not taken any other
loans, secured orunsecured, from companies, firms or other parties
listed in the register maintained under section 301 of theCompaniesAct,
1956.
(c) In our opinion, other terms&conditionsof such loan are prima facie,
not prejudicial tothe interestof 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
termsof 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 undersection301oftheCompaniesAct,
1956have beensoentered.
(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
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 58Aand 58AAor any other relevant provisions
ofthe CompaniesAct, 1956 including the Companies (Acceptance of
Deposits) Rules, 1975.
7. In our opinion, the Company has an internal audit system
commensurate with the size & natureof its business.
8. Wehave broadly reviewed the CostAccounting records, maintained by
the Company pursuanttothe Rules prescribed by the Central Government
for the maintenance of cost records under clause (d) ofsub-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.Weare,however,not requiredtomakeadetailed
examinationofsuchbooks andrecords.
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 foraperiod exceeding
six monthsfrom the datethey became payableasonthe dateofthe 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 along with the forum where the dispute is
pending :
Name of the
Statute Nature of Dues Year to
which Forum Amount
(in Rs.)
amount
pertains
Finance
Act,1994 Service Tax 2005-06 to Additional 1437794.00
2007-08 Commissioner
CentralExcise,
Delhi- III
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 inthe 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
defaultedin repaymentof duesto any financial institution or bank.
12. Accordingtothe information and explanations giventous, the Company
has not granted any loans and advances on the basis ofsecurityby way
ofpledge ofshares, 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
requirementsof the Order are not applicable.
14. The Company is not dealing in or trading in shares, securities,
debentures, and other investments. Accordingly, the provisions ofclause
4(xiv) ofthe Order are not applicable to the company.
15. The company has not given any guarantees for loans taken byothers
from bankor financial institution.
16. In our opinion, and according tothe information and explanations
givento 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 bythe 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.2956.97Lacs. 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 hasnot issued anydebentures during theyear nor hasany
outstanding debentures.
20.The Company hasnot raised any money by way of public issues during
theyear.
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 andreportedduring theyear, nor
have we been informed of such case by the management.
ForS.S.KOTHARIMEHTA&CO.
Chartered Accountants
Firm Regn No. 000756N
(ARUN K. TULSIAN)
Partner M.No.89907
Place: New Delhi
Dated: 31st, July 2010