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Om Metals Infraprojects Ltd.

BSE: 531092 Sector: Engineering
NSE: OMMETALS ISIN Code: INE239D01028
BSE 00:00 | 15 Oct 20.05 -1.40
(-6.53%)
OPEN

20.45

HIGH

20.45

LOW

20.00

NSE 00:00 | 15 Oct 19.95 -1.15
(-5.45%)
OPEN

21.45

HIGH

21.65

LOW

19.55

OPEN 20.45
PREVIOUS CLOSE 21.45
VOLUME 1326
52-Week high 42.20
52-Week low 13.31
P/E 12.53
Mkt Cap.(Rs cr) 193
Buy Price 17.55
Buy Qty 300.00
Sell Price 20.20
Sell Qty 200.00
OPEN 20.45
CLOSE 21.45
VOLUME 1326
52-Week high 42.20
52-Week low 13.31
P/E 12.53
Mkt Cap.(Rs cr) 193
Buy Price 17.55
Buy Qty 300.00
Sell Price 20.20
Sell Qty 200.00

Om Metals Infraprojects Ltd. (OMMETALS) - Auditors Report

Company auditors report

To the Members of

OM METAL INFRAPROJECTS LIMITED Report on the Financial Statement

We have audited the accompanying standalone Ind AS financial statements of OM METALINFRAPROJECTS LI MITED ("the Company") which comprise the Balance Sheet as atMarch 312018 the Statement of Profit and Loss including the Statement of OtherComprehensive Income the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and a summary of significant accounting policies and otherexplanatory information in which are incorporated financial statements of EngineeringHotel Divisions of the Company audited by other auditors and whose reports have beenfurnished to us. Our opinion in so far as it relates to the affairs of such division isbased solely on the report of other auditors.

Management's Responsibility for the Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) specified underSection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015as amended. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Ind AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made there under. We conductedour audit of the standalone Ind AS financial statements in accordance with the Standardson Auditing issued by the Institute of Chartered Accountants of India as specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance aboutwhetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the standaloneInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the standalone Ind AS financial statements that give a true and fair viewin order to design audit procedures that are appropriate in the circumstances. An auditalso includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone Ind AS financial statements. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the standalone Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of

a. the statement of Financial Position of the Company as at March 312018

b. Statement of comprehensive income

c. Statement of cashflows

d. Statement of changes in equity for the year ended on that date.

Other matter(s)

(i) We did not audit the financial statements of Four unincorporated integrated jointventures/PF included

in the standalone financial statements whose financial statements reflect Company'snet share in profit of Rs 1354.83 Lacs for the year ended 31 March 2018. These financialstatements have been audited by other auditors whose audit reports have been furnished tous by the management and our opinion on the standalone financial statements of theCompany for the year then ended to the extent they relate to the financial statements notaudited by us as stated in this paragraph is based on solely on the audit reports of theother auditors. Our opinion is not qualified in respect of this matter.

(ii) We did not the audit the financial statements of company's overseas branch ofEngineering Division located at Nepal reflecting Loss before tax of Rs. 22.26 Lacs for theyear ended 31 March 2018 which are incorporated in Engineering Division. These financialstatements are audited by branch auditor and certified by the Company's management asreported by the Branch Auditor of the Engineering Division. In our opinion on thestandalone financial statements of the Company for the year then ended to the extent theyrelate to the financial statements as stated in this paragraph is based solely on on suchmanagement certified financial statements. Our opinion is not qualified in respect of thismatter.

(iii) The Financial statements in connection with the trade receivables amounting toRs. 57.57 Lacs which are subject matters of arbitration proceedings/ negotiations with theproject authorities due to some disputes. The management of the company keeping in viewthe status and the outcome of arbitration proceedings and the basis of which steps torecover these amounts are currently in process is confident of recovering the aforesaiddues.Our report is not qualified in respect of these matters.

(iv) Standalone financial statements includes unaudited financial statement of jointoperation Om-SPML J V Rawanda for which we qualify the report.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act we give in the Annexure 1 a statement on the matters specified in paragraphs 3and 4 of the Order.

2. 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 bestof our knowledge and belief were necessary for the purpose of our audit;

(b) I n our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books and proper returnsadequate for the purposes of our audit have been received from the branches i.e.Engineering and Hotel Divisions of the Company not visited by us;

c) The report(s) on the accounts of the branch office(s) i.e. Engineering & HotelDivisions of the Company audited under section 143 (8) of the Act by the branch auditorshave been sent to us and have been properly dealt with byusin preparing this report.

d) The Balance Sheet Statement of Profit and Loss including the Statement of OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account;

(e) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Accounting Standards specified under Section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended;

(f) On the basis of written representations received from the directors as on March312018 and taken on record by the Board of Directors none of the directors aredisqualified as on March 31 2018 from being appointed as a director in terms of Section164 (2) of the Act;

(g) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer toourseparate Report in "Annexure 2" to this report;

(h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 positionin its Financial Statement as referred in Note no44tothe Financial Statement.

ii. The Company has made provisions as required under the applicable law or accountingstandards for material foreseeable losses if any on Long Term Contracts includingderivative contracts.

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

Place: Delhi For Mahipal Jain & Co.
Dated: 30.05.2018 Chartered Accountants
Firm Registration No 007284C
{CA Priyank Vijay}
Partner
M.No.403547

ANNEXURE A TO THE AUDITOR'S REPORT

Annexure referred to in paragraph 1 under the heading of "Report on other legaland Regulatory requirements" of the independent Auditor's Report on the FinancialStatements of Om Metals Infra-projects Limited ("The Company") for theyear endedon 31st March 2018.

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of accounts and other recordsexamined by us in the normal course of audit. In preparing the report we have consideredthe report made under the aforesaid order by other auditors who have audited theFinancial Statements of the Divisions of Engineering and Hotel of the Company we reportthat:

(i) In respect of fixed assets:

a. The Company has maintained proper records showing full particulars includingquantitative details a nd situation of fixed assets.

b. The fixed assets were physically verified during the year by the management inaccordance with a program of verification the frequency of verification is reasonablehaving regard to the size of the company and the nature of its fixed assets. According tothe information and explanations given to us no material discrepancies were noticed onsuch verification as compared to books records.

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

Name of Property Located at Carrying Value Title Deed in the name of
Industrial Land & Building Plot No A -37-38 A-21-22 B -26 Industrial Estate Kota 3.00 Om Metals & Mineral P Ltd*
Industrial Land & Building Plot No B -131 IPIA Kota - -- Om Structural India P Ltd**
Industrial Land & Building Special - 1 IPIA Kota Land-2443.82 Building 282.83 Om Rajasthan Carbide Ltd**
Industrial Land & Building Special - 1A IPIA Kota Land-1876.18 Building - 47.89 Jupitar Manufacturing P Ltd**
Commercial Building NBCC Plaza IVth Floor Sector -11 Pushp Vihar Saket Delhi 2100.00 Pending for registration

*these are the earlier name of "the Company"

** immovable properties i.e. freehold/lease hold land and buildings are held in thename of the Company and such immovable properties has been transferred pursuant to thescheme of ama Igamation under section 391 to 394 of the Companies Act 1956 the transferis through the order of the Hon'ble High Court Rajasthan Jaipurand are pending forregistration in favor of the Company.

(ii) The management has conducted physical verification of inventory at reasonableintervals during the year. No materia I discrepancies were noticed on the physicalverification.

(iii) According to the information and explanations given to us the company has notgranted any loans secured or unsecured to companies firms LLP or other parties coveredin the register maintained under section 189 of the Companies Act 2013. Accordingly theprovisions of clause 3(iii)(a) (b) and (c) of the order are not applicable to thecompany and hence not commented upon.

(iv) According to information and explanation given to us and based on the legalopinion obtained by the company that the company being a company engaged in the businessof providing infrastructure facilities in terms of section 186 the company has compliedwith the provisions of section 185 and 186 of the Companies Act 2013 in respect of grantof loans making investments and providing guarantee and security as applicable.

(v) The Company has not accepted any deposits within the mea ning of Sections 73 to 76of 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 pursuantto the Rules made by the Central Govt. for the maintenance of cost records under subsection (1) of section 148 of the Companies Act in respect of company and are of theopinion that prima-facia the prescribed accounts and records have been made andmaintained. However we have not made a detailed examination of the cost records with aviewto determining whether they are accurate or complete.

(vii) (a) Undisputed statutory dues including provident fund employees' stateinsurance income-tax sales-

tax service tax GST duty of customs duty of excise duty value added tax cess havenot been regularly deposited to the appropriate authorities there have been significantdelay in large number of cases. Further no undisputed amounts payable in respect thereofwere outstanding at the year- end for a period of more than six months from the date theybecome payable.

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

Nature of Dues

Forum where dispute is pending

Demand Amount

Amount paid under protest {Rs. in lacs.)

Period to which the amount relates

Nature of the Statute (Rs. in Lacs.)
Central Sales Tax Act 1956. and Sales Tax/VAT Act of various states Sales Tax& Entry Tax Commissioner 241.51 0 1990-91 2009-10 to 2011-12
(Appeals)/Tribunal
High Court 2003-04
16.91 0
Central Excise Act 1944 Excise Duty Tribunal (CESTATE) 471.49 0 2009-10 to 2011-12
Commissioner(Appeal]and Showcase 2000-01 to 2014-15
605.34 21.5
Income Tax Act 1961 Income Tax ITAT 1.91 1.91 2012-13 &. 2013-14
2007-08 to 2015-16
CIT Appeal 757.77 361.47 1995-96 & 1976-77
High Court 31.81 0
Service tax law finance Act 1994 Service Tax Commissioner 190.56 0 2003-04 to 2005-06
(Appeals)/Tribuna! & 2009-10 to 2011-
12
Wealth Tax Act. Wealth Tax ITAT 0.28 0.28 1992-1993
Kameng Income Tax CIT Appeal 14.97 3 2014-15

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

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

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

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

(xi) In our opinion and according to the information and explanations given to us theCompany has paid/ provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 of the Act read with Schedule V to theCompanies Act 2013.

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

(xiii) In our opinion and according to the information and explanations given to us theCompany is in compliance with section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements etc. as required by theapplicable accounting standards.

(xiv) During the year the company has not made any preferential allotment or privateplacement of shares or fuIly or partly convertibIe debentures.

(xv)Thecompanyhasnotenteredintoanynon-cashtransactionswithdirectorsorpersonsconnectedwiththem.

(xvi) Thecompany is not required to be registered under section 45-IAofthe ReserveBankof India Act 1934.

Place : Delhi For Mahipal Jain & Co.
Dated: 30.05.2018 Chartered Accountants
Firm Registration No 007284C
{CA Priyank Vijay}
Partner
M.No.403547