OMC COMPUTERS LIMITED
We have audited the attached Balance Sheet of OMC COMPUTERS LIMITED as at
30th June, 1995 and the Profit and Loss Account for the year ended on that
date annexed thereto and report that:
1. We report that :-
a) 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.
b) 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.
c) The Balance Sheet and Profit and Loss Account are in agreement with the
Books of Account.
d) The dividend declared for the year 1991-92 on 21.12.1992 has not been
paid till the date of Balance Sheet, as, in the terms of agreement with
financial institutions dividend can be paid only after paying the overdue
interest to them.
e) No provision has been made in respect of sundry debtors considered
doubtful Rs. 3,22,46,779.
f) Short fall (if any) in realisation of sundry debtors, loans and advances
and claims receivable (considered good).
In our opinion, the eventual recoverability of a part of the amounts is
doubtful. However, we are unable to express an opinion on the quantum
g) i) As stated in Note 13 reconcilation of certain bank accounts is yet to
ii) As stated in Note 15 no account has been taken in respect of penal
interest and liquidated damages aggregating to Rs. 104.00 lacs.
In respect of the matters stated in items f and g above, we are unable to,
owing to our inability to comment on the eventual outcome of the issues
involved, comment on the consequential effect on the loss for the year
ended on 30th June, 1995 and the Reserves and Surplus as at 30th June,
h) Subject to our remarks in paragraph d,e,f and g above and read with Note
16 and the other notes annexed to and forming part of the accounts, in our
opinion, and to the best of our information and according to the
explanations given to us, the accounts give the information required by the
Companies Act, 1956 in the manner so required and give a true and fair
i) Insofar as it relates to the Balance Sheet of the state of affairs of
the company as at 30th June, 1995, and
ii) Insofar as it relates to the Profit and loss Account of the Loss of the
Company for the year ended on that date.
For M. BHASKARA RAO & CO.,
Place : Hyderabad,