1. We have audited the attached balance sheet of OM METALS INFRA
PROJECTS LIMITED, (The company), as at 31.03.2012 and also the
Statement of profit and loss 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 company's 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 ( Auditor's 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 pur
(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 branche
Auditor's reports have been forwarded to us and have been appropriately
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 and audited returns from the Engineering .Real Estate and Hotel
d) In our opinion, the balance sheet, Statement of profit and loss 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, except 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 31.03.2012 and taken on record by the Board of Directors, we
report that none of the directors of the company is disqualified as on
31.03.2012 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 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 31.03.2012 and.
(ii) in the case of the Statement of profit and Loss , 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, ON THE ACCOUNTS AS AT
AND FOR THE YEAR ENDED ON 31st MARCH, 2012
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) As explained to us, the company has a programme of physically
verifying all its fixed assets over a period of three years, which in
our opinion is reasonable having regard to the size of the company and
nature of its fixed assets. In accordance in with this programme, some
of fixed assets were physically verified by the management during the
year. The discrepancies noticed on such physical verification between
the physical balances and the fixed assets records were not material
and have been properly dealt with in the books of accounts .
(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 inventories, we are
of the opinion that the company has maintained proper records of
inventories. 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.a) According to the information and explanations given to us, the
company has, granted the loans , secured or unsecured to companies ,
firms and other parties covered in the register maintained under
section 301 of the Companies act, 1956 to two Wholly owned
subsidiaries,one Associate and one joint venture. The maximum amount
outstanding at any time during the year was Rs. 24051.92Lacs and the
year end balance is Rs. 19546.33 Lacs which is interest free Loans and
further explained to us these loans have been made for setting up new
projects and making strategic investments in other subsidiaries/joint
b) In our opinion and according to the information and explanations
given to us, after considering the purpose for which loans have been
granted as indicated in paragraph 4 (iii) (a) of the Companies
(Auditor's Report ) order , 2003 (here in after referred to as the
order) , The rate of interest and other terms and conditions of the
loans granted , are prima-facia , not prejudicial to the interest of
c) The said interest free loan given to subsidiaries and joint ventures
of the company is repayable over a period of 3 to 5 years.
d) In respect of loans and advances granted by the company, the same is
repayable over a period of 3 to 5 years and therefore the question of
overdue amount does not arise.
e) As informed , 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, 20 03 (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 is an
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 . During the course of our audit, we have not observed any
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
In our Opinion and according to the information and explanations given
to us, the transactions made in pursuance of contracts/arrangements
entered in the register maintained under section 301 of the Companies
Act 1956 and exceeding the value of Rupees five lacs in respect of each
party during the year have been made at prices which appear reasonable
as per information available with the company.
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 (Auditor's 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. We have broadly reviewed the cost records maintained by the company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Govt, under section 209 (1) (d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained . We have , however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete .
9a) According to the information and explanations given to us and the
books and Records of the company examined by us, 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/VAT, wealth tax,
service tax, customs duty, excise duty, cess and other material
statutory dues applicable to the company. 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 and the
records of the company examined by us , there are no undisputed amounts
payable in respect of provident fund , investor education and
protection fund, employee's state insurance , income tax, sales
tax/VAT, wealth tax, service tax, customs duty, excise duty, cess and
other undisputed statutory dues were outstanding at the year end for a
period of more than six 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 Nature of Forum where Demand Period to which
the Statute Dues dispute is Amount the amount
pending (Rs. in relates
Central SalesTax Commissioner 1984-85,1985-
Tribunal 41.51 86
Act, 1956. 1990-91 ,2007-
and Sales 2008,2008-09.
states High court 24.10 1986-87 &
Central Excise Duty Tribunal/Commi 785.60 1997-98, 2001
Excise ssioner(Appeal) to 2010-11
Income Income Tax ITAT/CIT 2638.33 1992-93,96-
Tax Act, Appeal 97,2007-
Service Service Tax Commissioner 190.56 2003-2004 to
tax Rules (Appeals)/
Tribunal 2005-2006 &
Wealth Wealth Tax ITAT 0.28 1992-1993
Note : 1) Against it, the company paid Rs. 1467.05 lacs.
2) Amount as per demand orders including interest and penalty wherever
mentioned in the order.
3) In the matter of income tax, the department has preferred an appeal
to the hon'ble High Court, Jaipur/ order processed u/s 263 for the A.Y.
1977-78,1996- 97 and 2002-03 to 2007-08. The total income involved in
these matters is Rs. 42.50 Crores, however the amount of tax liability
10. The Company has no accumulated losses at the end of the financial
year March 31, 2012. Further, the Company has not incurred any cash
losses during the financial year ended March 31, 2012 and in the
immediately preceding financial year ended March 31,2011.
11. Based on our audit procedures and as per 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 and banks during the year.
12. In our opinion and 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, 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 (Auditor's report) order. 2003 (as amended) are not
applicable to the company.
14 In respect of dealing/trading in shares , securities and other
investments , in our opinion and according to the information and
explanations given to us, proper records have been maintained of the
transactions and contracts and timely entries have been made there in .
The shares, securities, and other investments have been held by the
company in its own name.
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. The company has raised new term loans during the year.The term
loans outstanding at the beginning of the year and those raised during
the year have been applied for the purposes for which they were raised.
17. According to the information and explanations given to us, and on
an overall examination of the Balance sheet of the company, we report
that no funds raised on short term basis have been used for long term
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. According to the information and explanations given to us, no
securities has been created for debentures issued during the year since
they are unsecured.
20. The company has not raised any money through a public issue during
21. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given 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 M C.BHANDARI & CO.
FIRM REG. NO.303002E
Dated: 30.05.2012 S.K. MAHIPAL