OM SINDOORI HOTELS LIMITED
The Shareholders of
OM SINDOORI HOTELS LIMITED
We have audited the attached Balance Sheet of OM SINDOORI HOTELS LIMITED as
at 31st March 1999 and also the Profit and Loss Account for the year ended
on that date annexed thereto and report that:
1. As required by the Manufacturing and other Companies (Auditors' Report)
Order 1988 issued by the Company Law Board in terms of section 227 (4A) of
the Companies Act 1956, we enclose in the Annexure 'A' a statement on the
matters specified therein.
2.Further to our comments in the Annexure referred to in paragraph 1 above.
a. We report that, in our opinion and to the best of our information and
according to the explanations given to us, the said accounts read with the
notes thereon and subject to note No. 8 regarding non-provision of Gratuity
liability estimated at Rs.13.36 lakhs, give the information required by the
Companies Act, 1956, in the manner so required, and give a true and fair
i. In the case of Balance Sheet of the state of the company's affairs as at
ii. In the case of Profit and Loss Account, of the Profit of the Company
for the year ended on that date.
b. We further report that:
In our opinion the Profit and Loss Account and the Balance Sheet dealt with
by this report comply with the Accounting standards referred to in sub-
section (3C) of Section 211 of the Companies Act, 1956, to the extent such
standards have been made applicable by the Institute of Chartered
Accountants of India, subject to non-compliance of Accounting standard-15
[Accounting for retirement benefits], as per details furnished in para [a]
ii. 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.
iii.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 such books.
iv.The Balance Sheet and Profit and Loss Account referred to in this report
are in agreement with the books of Account.
For R. SUBRAMANIAN & CO.,
Place : Chennai A. GANESAN
Date : 15.07.99 Partner
ANNEXURE 'A' REFERRED TO IN PARAGRAPH 1 IN OUR REPORT
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets. We are
informed that the Company has carried out physical verification of assets
during the year and no major discrepancies were noticed. In our opinion the
frequency of physical verification is reasonable having regard to the size
of the operations of the Company.
2. None of the fixed assets have been revalued during the year.
3. According to the information and explanations given to us the Company
has physically verified the stores and other inventories at periodical
intervals. In our opinion the frequency of physical verification is
4. In our opinion, the procedure for physical verification of stores and
inventories are adequate with regard to the size of the Company and nature
of its business.
5. According to the information and explanations given to us, the
discrepancies noticed between the book records and on physical verification
of stores and inventories are not significant and have been properly dealt
with in the books of the Company.
6. The valuation of the stocks is fair and proper in accordance with
normally accepted accounting principle and is on the same basis as in the
7. The Company has taken unsecured loans from the parties listed in the
register maintained under section 301 of the Companies Act 1956 and the
terms and conditions of such loans are not primafacie 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
8. The Company has not given any loans to Companies listed in the register
maintained under section 301 of the Companies Act 1956.
9. Advances were given to staff and are being recovered as per stipulation
10. In our opinion and according to the information and explanations given
to us the internal control procedures are commensurate with the size of the
Company and nature of its business for the purchase of stores, materials,
components and capital assets and in respect of sale of food and beverages,
accommodation and other services.
11. As explained to us, the company has not purchased any goods or
materials aggregating to Rs. 50,000/- in value during the year from the
parties listed in the register maintained under section 301 of the
Companies Act 1956. In respect of sale of Food and Beverages, accommodation
and other services made to such companies/parties, on the basis of
information and explanations furnished to us, the prices charged are
reasonable having regard to prevailing market prices for such items.
12. As explained to us, the company has a regular procedure for
determination of unserviceable stores and components. Adequate provision
has been made in the accounts for the loss arising
out of such item.
13. The Company has complied with the provisions of section 58 A of the
Companies Act,1956 and the directions of Reserve Bank of India in respect
of Deposits accepted during the year.
14. The Company has no realisable by-products, and reasonable records are
maintained for sale and disposal of realisable scraps.
15. In our opinion and according to the information and explanations given
to us, the Company has an Internal Audit system, the scope and coverage of
which needs to be enlarged commensurate with the size of the company.
16. To the best of our knowledge, maintenance of cost records has not been
prescribed by the Central Government under Section 209 (1) (d) of the
Companies Act, 1956.
17. According to the records of the Company, the Company has been regular
in depositing the Employees State Insurance Contribution and Provident Fund
dues with the appropriate authorities.
18. On the basis of selective checks carried out by us, no personal
expenses have been charged to revenue other than those expenses which are
payable under contractual obligations or in accordance with generally
accepted business practice.
19. According to the information and explanations given to us, no
undisputed income tax, wealth tax, sales tax, customs duty and/ or excise
duty were remaining outstanding as at the last date of the financial year
for a period of more than six months from the date they became payable.
20. The Company is not a Sick Industrial Company within the meaning of
clause 'O' of sub section 1 of section 3 of the Sick Industrial Companies
(Special provisions) Act 1985.
21. In our opinion there is a reasonable system of recording receipts,
issues and consumption of materials and stores.
22. There is a reasonable system of authorisation at proper levels with
necessary control on the issue of stores and the allocation of the same to
the operating departments.
For R. SUBRAMANIAN & CO.
Place : Chennai A. GANESAN
Date : 15.07.99 Partner.