ANNUAL REPORT 1998-99
Om Sindhoori Capital Investments Limited
TO THE SHAREHOLDERS OF OM SINDHOORI CAPITAL INVESTMENTS LIMITED
We have audited the attached Balance Sheet of M/s. OM SINDHOORI CAPITAL
INVESTMENTS LIMITED, Chennai as at 30th September 1999 and the Profit and
Loss Account for the year ended 30th September 1999 and report that:
1. 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.
2. 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 these
3. The Balance Sheet and the Profit and Loss Account dealt with by this
report are in agreement with the books of account produced for the audit.
4 Attention is invited to the following:
i. Note No. 9 with regard to change in accounting policy in respect of
accounting penal charges due to which the loss for the year is higher by
Rs. 21.31 Lakhs
ii Note No. 10 with regard to non provision of diminution in respect of
certain long term investments amounting to Rs. 14.27 lakhs due to which the
loss for the year is lower by Rs. 14.27 lakhs.
Subject to the foregoing, in our opinion and to the best of our information
and according to the explanations given us, the annexed accounts read
together with the notes thereon give the information required by the
Companies Act, 1956, in the manner so required and give a true and fair
a) In the case of Balance Sheet, of the State of affairs of the Company as
at 30th September 1999.
b) In the case of Profit and Loss Account, the Loss for the year ended on
5. In our opinion the Balance Sheet and Profit and Loss Account dealt with
by this report comply with the Accounting Standards referred to in Section
211(3c) of the Companies Act, 1956 subject to non-compliance of Accounting
Standard 13 with regard to diminution in the value of long term investments
as indicated in Para 4(ii) above.
6. As required by the Manufacturing and other Companies (Auditor's Report)
Order, 1988 issued by the Central Government under Section 227(4A) of the
Companies Act, 1956, we give below our comments on the matters specified in
the said order to the extent applicable to this company.
i) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. All the
assets have been physically verified by the Management during the year. No
material discrepancies were noticed on such verification. In respect of
leased Assets no physical verification has been carried out by the company.
ii) None of the fixed assets have been revalued during the year.
iii) The Company has taken loans from parties listed in the register
maintained under section 301 of the Companies Act 1956. The terms of such
loans are not prima-facie prejudicial to the interest of the Company. We
are informed that there are no companies under the same management as
defined under Section 370(1-B) of the Companies Act 1956.
iv) The Company has given loans to companies/parties listed in the register
maintained U/S 301 of the Companies Act, 1956. In our opinion the terms of
such loans are not prima-facie prejudicial to the interest of the Company.
v) Interest free advances have been given to employees which are being
repaid as per stipulations. In respect of other loans wherever the loans
are not serviced as per stipulations,the company has taken adequate steps
vi) In our opinion and according to the information and explanations given
to us, there are adequate internal control procedure, commensurate with the
size of the Company and the nature of its business, for the purchase of
vii) According to the information and explanations given to us and the
records examined by us, there were no transactions of purchase of goods and
materials with companies, firms or parties listed in the register
maintained under section 301 of the Companies Act, 1956. In respect of
transactions of Sale of goods, materials and services with such parties and
aggregating to Rs. 50000/- or more during the year, the terms of such
transactions are not prima facie prejudicial to the interest of the
viii) In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of Section 58A of
the Companies Act 1956 and the provisions of Non-Banking financial
Companies (Reserve Bank) Directions 1998 and the rules framed thereunder in
regard to fixed deposits accepted by the Company.
ix) In our opinion, the Company has an adequate internal audit system
commensurate with the size and nature of its business.
x) The Central Government has not prescribed maintenance of cost records
under Section 209(1) (d) of the Companies Act 1956.
xi) The company is regular in depositing Provident Fund dues with the
xii) According to the information and explanations given to us, there are
no undisputed amount payable in respect of Income Tax, Sales Tax, Wealth
Tax, Customs Duty and Excise Duty outstanding as at 30th September 1999 for
a period of more than six months from the date they become payable.
xiii) According to information and explanations given to us no personal
expenses of employees or directors have been charged to revenue account,
other than those expenses, payable in accordance with the contractual
obligations or in accordance with generally accepted business practice.
xiv) The provisions of the Sick Industrial Companies (Special Provisions)
Act, 1985 are not applicable to this Company.
xv) The company has granted loans and advances on the basis of security by
way of pledge of shares, debentures and other similar securities and
adequate documents and records are maintained.
xvi) Provision of any special statute applicable to Chit Fund, Nidhi or
Mutual Benefit Society are not applicable to this company.
xvii) The Company is dealing/ trading in shares, securities, debentures and
other investments. Proper records are maintained for the transactions and
contracts and timely entries have been made therein. Investments are held
in the name of the company, other than shares and securities which are kept
open for delivery in the normal course of trading activity, barring certain
securities (yet to be received) lodged for registration after the book
xviii) The other clauses of the said order are not applicable to this
For R.SUBRAMANIAN & CO.,
Place: Chennai R.PRAKASH
Date : 28/02/2000 PARTNER.-