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OM Infra Ltd.

BSE: 531092 | NSE: OMINFRAL |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE239D01028 | SECTOR: Engineering

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  • Offer Price (Qty.)

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Annual Report

For Year :
2018 2016 2015 2014 2013 2012 2011 2010 2009

Auditor's Report

To the Members of

Om Metals Infraprojects Limited

Report on the Financial Statement

1. We have audited the accompanying standalone financial statements of Om Metals Infraprojects Limited (''the Company'') which comprise the Balance Sheet as at 31 March. 2016, the Statement of Profit and Loss, the cash flow statement for the year ended and a summary of significant accounting policies and other explanatory information, in which are incorporated financial statements of Engineering, Real estate & Hotel Divisions of the Company audited by other auditors and whose reports have been furnished to us. Our opinion, in so far as it relates to the affairs of such division is based solely on the report of other auditors.

Management’s Responsibility for the Standalone Financial Statements

2. 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 standalone 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 (as amended). This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act, for safeguarding of the assets of the Company, 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

3. Our responsibility is to express an opinion on these standalone financial statements based on our audit.

4. 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 there under.

5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143 (10). Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amounts and the 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 financial control relevant to the Company''s preparation of the 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 Company''s Directors, as well as evaluating the overall presentation of the financial statements.

7. 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

8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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 the case of balance sheet , of the state of affairs of the Company as at 31st March, 2016,

b) in the case of the statement of profit and loss of the profit for the year ended on that date.

c) in the case of the cash flow statement, of the case flow for the year ended on that date.

9. Other matter(s)

(i) We did not audit the financial statements of one unincorporated integrated joint ventures, included in the standalone financial statements, whose financial statements reflect Company''s net share in profit of Rs. 1616.69 Lacs for the year ended 31 March 2016. These financial statements have been audited by other auditors whose audit reports have been furnished to us, by the management, and our opinion on the standalone financial statements of the Company for the year then ended to the extent they relate to the financial statements not audited by us as stated in this paragraph is based on solely on the audit reports of the other auditors. Our opinion is not qualified in respect of this matter.

(ii) We did not the audit the financial statements of company''s overseas Branches of Engineering Division located at Rwanda, and Nepal reflecting profit (Net) of Rs. 1498.80 Lacs for the year ended 31 March 2016, which are incorporated in Engineering Division. These financial statements are audited by branch auditor and certified by the Company''s management, as reported by the Branch Auditor of the Engineering Division. In our opinion on the standalone financial statements of the Company for the year then ended to the extent they relate to the financial statements as stated in this paragraph is based solely on, on such management certified financial statements. Our opinion is not qualified in respect of this matter.

(iii) In the case of Om Ray construction JV, Om Metal Consortium PF, SPML-OMIL JV (Ujjain), the management has furnished us the audited Financial Statements reflecting profit (Net) of Rs 16.63 Lacs for the year ended 31 March 2016. These financial statements have been audited by the branch auditor and certified by the Company''s management as reported by the Branch Auditor of Engineering Division. In our opinion on the standalone financial statements of the Company for the year then ended to the extent they relate to the financial statements as stated in this paragraph is based solely on, on such management certified financial statements. Our opinion is not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirement

10. As required by the companies (Auditor''s Report ) order, 2016 (the Order) issued by the Central Govt. 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 & 4 of the Order.

11. 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 and proper returns adequate for the purposes of our audit have been received from the branches i.e. Engineering, Real estate & Hotel Divisions of the Company not visited by us .

(c) The report(s) on the accounts of the branch office(s) i.e. Engineering, Real estate & Hotel Divisions of the Company audited under section 143 (8) of the Act, by the branch auditors have been sent to us and have been properly dealt with by us in preparing this report.

(d) The standalone financial statements dealt with by this report are in agreement with the books of accounts and with the returns received from the branches not visited by us.

(e) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014(as amended).

(f) Under the other matter(s) described in paragraph 9 above, in our opinion, there is no adverse effect on the functioning of the company .

(g) On the basis of the written representations received from the directors as on 31st March, 2016 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.

(h) We have also audited the internal financial controls over financial reporting (IFCoFR) of the Company as of 31

March 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date and our report dated 30.05.2016 as per annexure B expressed unmodified audit report in which reports of Branch auditors have been sent to us and have been properly dealt with by us in preparation of this report.

(i) 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, 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 litigation on its financial position in its Financial Statement as referred in Note no 2.28(b) to the Financial Statement.

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 derivative contracts.

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the company.

ANNEXURE A TO THE INDEPENDENT AUDITOR’S REPORT

Annexure referred to in paragraph 1 under the heading of Report on other legal and Regulatory requirements of the independent Auditor’s Report on the Financial Statements of Om Metals Infraprojects Limited (The Company’’) for the year ended on 31” March 2016.

Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of the Company and taking into consideration the information and explanations given to us and the books of accounts and other records examined by us in the normal course of audit. In preparing the report, we have considered the report made under the aforesaid order by other auditors, who have audited the Financial Statements of the Divisions of Engg. , Real estate and Hotel etc. of the Company we report that:

(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 were physically verified during the year by the management in accordance with a program of verification, the frequency of verification is reasonable having regard to the size of the company and the nature of its fixed assets. According to the information and explanations given to us, no material discrepancies were noticed on such verification as compared to books records.

c. The title deeds of all the immovable properties are held in the name of the company except for the below:

Name of Property

Located at

Carrying Value

Title Deed in the name of

Industrial Land & Buildin g

Plot No A-37-38, A-21-22, B-26, Industrial Estate , Kota

3.37

Om Metals & Mineral P Ltd1

Industrial Land & Buildin g

Plot No B-131, IPIA, Kota

Land - 483.49 Building -38.37

Om Structural India P Ltd2

Multi Plex Property

Plot No 11, Indra Vihar, Kota

Land - 77.65 Building -88.55

Om Metals & Mineral Ltd*

Industrial Land & Buildin g

Special -1, IPIA, Kota

Land - 2443.82

Om Rajasthan Carbide Ltd**

Industrial Land & Buildin g

Special - 1A, IPIA, Kota

Land - 1876.18 Building -53.04

Jupiter

Manufacturing P Ltd**

Commercial

Building

Cheera Bazar, Mumbai

16.50

Om Metals & Minerals Ltd*

Joint Ventures and with respect to the same:

a) in our opinion the terms and conditions of grant of such loans are not, prima facie, prejudicial to the company''s interest.

b) The schedule of repayment of the principal and the payment of the interest has not been stipulated and hence we are unable to comment as to whether repayments/receipts of the principal amount and the interest are regular;

c) in the absence of stipulated schedule of repayment of principal and payment of interest, we are unable to comment as to whether there is any amount which is overdue for more than 90 days and whether reasonable steps have been taken by the Company for recovery of the principal amount and interest.

(iv) In our opinion the, company has complied with the provisions of sections 185 and 186 of the Act in respect of loans, investments, guarantees, and security.

(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.

(vi) We have broadly reviewed the books of accounts maintained by the company, pursuant to the Rules made by the Central Govt., for the maintenance of cost records under sub section (1) of section 148 of the Companies Act, in respect of Engineering Division which includes Road and Dam Construction of the company and are of the opinion that, prima-facia, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the cost records with a view to determining whether they are accurate or complete.

(vii) (a) Undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax service tax, duty of customs, duty of excise duty, value added tax, cess have not been regularly deposited to the appropriate authorities there have been significant delay in large number of cases. Further, no undisputed amounts payable in respect thereof were outstanding at the year-end for a period of more than six months from the date they become payable.

(b) According to the information and explanations given to us and the records of the company examined by us, The dues outstanding in respect of income-tax, sales-tax, service tax, duty of excise and Wealth Tax on account of any dispute, are as follows:

Nature of the Statute

Nature of Dues

Forum where dispute is pending

Demand

Amount

(Rs. in Lacs.)

Amount paid under protest (Rs. in lacs.)

Period to which the amount relates

Central Sales Tax Act, 1956. and Sales Tax/VAT Act of various states

Sales Tax & Entry Tax

Commissioner

(Appeals)/Tribunal

418.51

0.00

1990-91, 2009-10 to 2011-12

Central Excise Act, 1944

Excise

Duty

Tribunal

(CEGATE)

Commissioner! Appeal)and Show Case

526.41

395.01

5.00

0.00

1997-98, 2009-10 to 2 011-12

2000-01 to 2014-15

Income Tax Act, 1961

Income

Tax

ITAT

CIT Appeal

1.91

789.84

2.08

435.50

1992-93 & 1997-98 2007-08 to 2014-15

Service tax law , finance Act, 1994

Service

Tax

Commissioner

(Appeals)/Tribunal

242.30

23.00

2003-04 to 2005-06 & 2009-10 to 2011-12

Wealth Tax Act.

Wealth

Tax

ITAT

0.28

0.28

1992-1993

Note : 1) Amount as per demand orders including interest and penalty wherever quantified in the order.

2) In the matter of the Income tax, the department has disallowed claims under section 80IB aggregating Rs. 8816.02 Lacs (previous year Rs. 10684.71 Lacs) during the Financial Years 1976-77, 1995-96, 2001-02 to 2008

09. The appeals were decided in favor of the company by the ITAT. The Income Tax Department has preferred appeals with the Hon''ble High Court. The tax liability if any arising on the a final outcome of the case is indeterminate hence could not be provided.

(viii) The Company has not defaulted in repayment of loans or borrowings to any bank or financial institution or government during the year. The Company did not have any outstanding debentures during the year.

(ix) The Company did not raise moneys by way of initial public offer or further public offer (including debt instruments). In our opinion, the term loans were applied for the purposes for which the loans were obtained.

(x) No fraud by the Company or on the company by its officers or employees has been noticed or reported during the period covered by our audit.

(xi) In our opinion, managerial remuneration has been paid (and)/ provided in accordance with the requisite approvals mandated by the provisions of section 197 of the Act read with Schedule V to the Act..

(xii) In our opinion, the Company is not a Nidhi Company. Accordingly, clause 3(xii) of the Order is not applicable.

(xiii) In our opinion all transactions with the related parties are in compliance with sections 177 and 188 of Act, where applicable, and the requisite details have been disclosed in the financial statements etc., as required by the applicable accounting standards.

(xiv) During the year, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures.

(xv) The company has not entered into any non-cash transactions with directors or persons connected with them.

(xvi) The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

Independent Auditor’s report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (the Act). In preparing the report, we have considered the report made under the aforesaid order by other auditors, who have audited the Financial Statements of the Divisions of Engg. , Real estate and Hotel etc. of the Company we report that:

1. In conjunction with our audit of the standalone financial statements of Om Metals Infraprojects Limited. (the Company) as of and for the year ended 31 March 2016, we have audited the internal financial controls over financial reporting (IFCoFR) of the company of as of that date.

Management’s Responsibility for Internal Financial Controls

2. The Company''s Board of Directors 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 Guidance Note on Audit of Internal Financial Control Over Financial Reporting (the ''Guidance Note'') issued by the Institute of Chartered Accountants of India (ICAI). 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 the company''s business, including adherence to company''s 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.

Auditors’ Responsibility

3. Our responsibility is to express an opinion on the Company''s IFCoFR based on our audit. We conducted our audit in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India (ICAI) and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of IFCoFR, and the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the Guidance Note) issued by the ICAI. 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 IFCoFR were established and maintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining an understanding of IFCoFR, 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 auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s IFCoFR.

Meaning of Internal Financial Controls over Financial Reporting

6. A company''s IFCoFR 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 company''s IFCoFR includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) 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 (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

7. Because of the inherent limitations of IFCoFR, 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 IFCoFR to future periods are subject to the risk that IFCoFR may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

8. In our opinion, the Company has, in all material respects, adequate internal financial controls over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016, based on the 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 Control Over Financial Reporting (the ''Guidance Note'') issued by the Institute of Chartered Accountants of India (ICAI).

For M.C. BHANDARI & CO.

FIRM REG. NO.303002E

Chartered Accountants

Place: Jaipur

Dated: 30.05.2016

( S.K. MAHIPAL )

PARTNER M. NO.70366