1. We have audited the attached balance sheet of M/s. OM METALS INFRA
PROJECTS LIMITED, JAIPUR, as at 31.03.2009 and also the profit and loss
account and the cash flow statement of the company for the year ended
on that date annexed thereto, in which are incorporated financial
statements of Engineering, Real Estate & Hotel Divisions of the Company
audited by other auditors. 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.
2. We 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 principal used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
3. As required by the Companies ( Auditors Report ) order , 2003 (as
amended) issued by the Central Government of India in terms of
subsection (4A) of section 227 of the Companies Act, 1956, we enclose
in the annexure a statement on the matters specified in paragraphs 4
and 5 of the said order.
4 Further to our comments in the annexure referred to above, we report
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
b) In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of
those books and proper returns adequate for the purposes of our audit
have been received from the Engineering, real Estate and Hotel
divisions not visited by us. The branches/divisions Auditors reports
have been forwarded to us and have been appropriately dealt with.
c) The balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account
and with the final statement of accounts, audited by other auditors of
the Engineering, Real Estate and Hotel divisions of the company.
d) In our opinion, the balance sheet , profit and loss account and cash
flow statement dealt with by this report comply with the applicable
accounting standards referred to in sub- section (3C) of section 211 of
the Companies Act 1956, the company has not complied with the
requirements of AS - 15 relating retirement benefit so far as it
relates to provision of the liability as per actuarial valuation and
its disclosers in the statement of accounts. The impact of this non
compliance in the figures of current liability (Provisions) and profits
could not be given due to non availability of actuarial valuation of
the above liability.
e) On the basis of written representations received from the directors,
as on 31.03.2009 and taken on record by the Board of Directors, we
report that none of the directors of the company is disqualified as on
31.03.2009 from being appointed as a director in terms of clause (g) of
Sub- section (1) of section 274 of the Companies Act, 1956.
f) In our opinion and to the best 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 except where otherwise stated.
i. in the case of the balance sheet , of the State of affairs of the
Company as at 31.03.2009 and.
ii. in the case of the profit and Loss account, of the profit for the
year ended on that date and
iii. in the case of the cash flow statement , of the cash flows of the
company for the year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF M/S OM METALS INFRAPROJECTS LIMITED, JAIPUR (RAJ.) ON THE
ACCOUNTS AS AT AND FOR THE YEAR ENDED ON 31ST MARCH, 2009
On the basis of the information and explanations given to us and on the
basis of such checks as we considered appropriate, our statement on the
matters specified in para 3 and 4 of the said order is given below. In
preparing the report, we have considered the report made under the
aforesaid order by other auditors, who have audited the accounts of the
Divisions of Engg., Real estate and Hotel of the Company.
1. IN RESPECT OF ITS FIXED ASSETS.
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation on fixed assets.
b) The management has carried out a physical verification of most of
its fixed assets during the year and has a program to verify fixed
assets physically in a phased manner. In our opinion, the frequency of
verification is reasonable having regard to the size of the company and
the nature of its fixed assets. No material discrepancies were noticed
on such physical verification.
c) The assets disposed off during the year are not substantial and
therefore do not affect the going concern status of the company.
2. a) The inventory other than goods in transit of the company has
been physically verified during the year by the management at the year
end. In our opinion, the frequency of such verification is reasonable
according to the nature of the business.
b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the company and the nature of its business.
c) On the basis of our examination of records of inventory, we are of
the opinion that the company has maintained proper records of
inventory. The discrepancies noticed on physical verification of
inventories as compared to book records were not material, having
regard to the size or the operations of the Company and have been
properly dealt within the books of account.
3. In respect of the loans , secured or unsecured , granted by the
company to companies , firm or other parties covered in the register
maintained under section 301 of the Companies act, 1956.
a) The company has granted loans and advances to 3 Parties (Subsidiary
and joint ventures) aggregating to Rs. 1399.92Lacs (previous year Rs.
6215.36 Lacs). In respect of the said loan, the maximum amount
outstanding at any time during the year is Rs. 7615.28 lacs (previous
year Rs6215.36 Lacs) and year end balance of Rs. 7615.28 Lacs (previous
year Rs 6215.36 Lacs) .
b) In our opinion and according to the information and explanations
given to us, the aforesaid loan is interest free and other terms &
conditions are not prima-facia prejudicial to the interest of the
c) The said interest free loan given to subsidiary and joint ventures
of the company is repayable on demand and there is no repayment
d) In respect of loans and advances granted by the company, the same is
repayable on demand and therefore the question of overdue amount does
not arise .
e) The company has not taken any loans, secured or unsecured from
companies, firm or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.Therefore, provisions of
clauses 4(iii)(f) and (g) of the Companies (Auditor`s Report) Order,
2003(as amended) are not applicable to the company.
4. In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the items
purchased/job work are of special nature and suitable alternative
sources do not exist for obtaining comparable quotations, there are
adequate internal control system commensurate with the size of the
company and the nature of its business with regard to the purchase of
inventories and fixed assets and with regard to the sale of goods and
services . Further, on the basis of our examination and according to
the information and explanations give to us, we have not observed any
continuing failure/ major weaknesses in such internal control system.
5. 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
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangement exceeding value of Rupees five lacs have been entered into
during the financial year at prices which reasonable having regard to
the prevailing market prices at the relevant time.
6. According to the information and explanations given to us, the
Company has not accepted any deposits from the Public. Therefore the
provisions of clause (vi) of the Companies (Auditors report) order,
2003 are not applicable to the company.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. According to the information and explanation given to us,
maintenance of cost records have not been prescribed by the central
Govt. under section 209 (1) (d) of the Companies Act, 1956 to any
product of the company.
9. a) According to the information and explanations given to us and the
books & records of the company examined by us, the company has been
regular in depositing with appropriate authorities undisputed statutory
dues including provident fund, investor education and protection fund ,
employees state insurance, income tax, sales tax/VAT, wealth tax,
service tax, customs duty, excise duty, cess and other material
statutory dues applicable to it. However in some cases TDS, PF and ESI
dues have been deposited beyond the stipulated time limit.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund , employees
state insurance , income tax, sales tax/ VAT, wealth tax, service tax,
customs duty, excise duty, cess were in arrear, as at 31st March, 2009
for a period of more than 6 months from the date they became payable.
c) According to the information and explanations given to us, the
following are the details of the disputed statutory dues that were not
deposited with the appropriate authorities .
Nature of the
Statute Nature of Dues Forum where dispute is
Tax Act, 1956. Sales Tax Commissioner(Appeals)
and Sales Tax/
VAT Act of /TribunalHigh court
Act, 1944 Excise Duty Tribunal/Commissioner
Income Tax Act,
1961 Income Tax ITAT
Service tax Rules Service Tax Commissioner(Appeals)
Wealth Tax Act. Wealth Tax ITAT
Nature of the Statue Demand Amount Period to which the
(Rs. in Lacs.) amount relates
Central Sales Ta x Act, 1956.
and Sales Tax/VAT Act of
various states 85.45*7.19 1984-85,1985-86
1990-91 to 1991-92,
1993-94, 1994-95 &
Central Excise Act, 1944 120.45 1997-98, 2000 to 2008
Income Tax Act, 1961 244.09** 1991-92,,96-97, 2004-
2005 & 2005-2006
Service tax Rules 287.46 2003-2004 to 2005-
Wealth Tax Act. 1.13** 1991-1992
Note : 1) * Against it , the company paid Rs. 6.80* lacs and ** Rs.
2) Amount as per demand orders including interest and penalty wherever
mentioned in the order.
10. The Company does not have accumulated losses at the end of the
financial year March 31, 2009. Further, the company has not incurred
any cash losses during the financial year ended March 31, 2009 and in
the immediately preceding financial year ended March 31, 2008.
11. According to the records of the company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to financial institutions and banks during the
12. In our opinion and 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, Paragraph 4 ( xii) of the order is not applicable.
13. 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 Companies (Auditors report) order. 2003 are not applicable to the
14. The company is not dealing or trading in shares, securities,
debentures and other investments other than in mutual fund investment.
15. According to the information and explanations given to us, the
Company has given guarantee for loan taken by its Joint Ventures from
bank, the terms and conditions whereof in our opinion are not
prima-facie pre judicial to the interest of the company.
16. To the best our knowledge and belief and according to the
informations and explanations given to us, in our opinion, the term
loans taken by the company during the year have been applied by the
company for the purposes for which the loans were obtained.
17. According to the information and explanations given to us, and on
an over all examinations of the Balance sheet of the company,
we are of the opinion that there are no funds raised on short term
basis that have been used for long term investment.
18. The company has not made any preferential allotment of shares
during the year to parties and companies covered in the register
maintained under section 301 of the Companies Act, 1956.
19. In our opinion and according to the information and explanations
given to us, the company has not issued any secured debentures,
paragraph 4 ( x ix) of the order is not applicable.
20. During the year the company has not raised any money by public
21. Based upon the audit procedures performed and information and
explanations given to us by the management, we report that no material
fraud on or by the company has been noticed or reported during the
course of our audit for the year ended March 31, 2009.
For M.C. BHANDARI & Co.
Dated: 30.06.2009 PARTNER