om sindoori hotels ltd Auditors report

OM SINDOORI HOTELS LIMITED AUDITORS REPORT To 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 view: i. In the case of Balance Sheet of the state of the companys affairs as at 31.03.1999: and 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] above. 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., Chartered Accountants 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 reasonable. 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 previous year. 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 1956. 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. Chartered Accountants Place : Chennai A. GANESAN Date : 15.07.99 Partner.