We have audited the attached Balance sheet of SUMAN MOTELS LIMITED, as
at March 31, 2003 and the annexed Profit & Loss Account of the Company
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 Central Government m terms of
section 227(4A) of the Companies Act, 1956, we give in the annexure a
statement on matters specified in paragraphs 4 and 5 of the said order.
2. Further to our Comments in the Annexure referred to in paragraph 1
above :
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes 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 the
books:
(c) The Balance Sheet and Profit & Loss Account dealt with by this
report are in agreement with the books of account;
(d) In our opinion the Profit & Loss Account and the Balance Sheet
comply with the Accounting Standards referred to in section 211 (3c) of
the Companies Act, 1956.
3. In our opinion and to the best of our information and according to
the explanation given to us, the said accounts read with the notes
theron give
4. In our opinion and to the best of our information and according to
the explanation given to us, the said accounts read with the notes
thereon give the information as required by the Companies Act, 1956 in
the manner so required and give true and fair view :
(i) In the case of Balance Sheet,of the state of affairs of the Company
as at March 31st 2003.
ANNEXURE TO THE AUDITORS REPORT REFERRED TO IN PARAGRAPH 1 OF OUR
REPORT OF EVEN DATE ON THE ACCOUNTS FOR THE YEAR ENDED MARCH 31st 2003
OF SUMAN MOTELS LTD.
1. The Company has maintained proper records to show full particulars
including quantitative details and situation of Fixed Assets. As
explained to us all fixed assets have been physically verified by the
management at reasonable intervals during the year and we have been
informed that no material discrepancies were noticed on such
verification as compared to book records.
2. None of the fixed assets have been revalued during the year under
review
3. The stocks of stores, provisions, linen, etc. have been physically
verified by the management during the year. In our opinion the
frequency of verification is reasonable.
4. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of the above
referred stocks followed by the management are reasonable and adequate
in relation to the size of the company and the nature of its business.
5. The discrepancies noticed on verification between the physical
stocks and book records were not material in relation to the operations
of the company
6. On the basis of our examination of the stock records. We are of the
opinion that the valuation of stock is fair and proper in accordance
with the normally accepted accounting principles and is on the same
basis as in the preceding year.
7. In our opinion, the rate of interest and other terms and conditions
of the loans taken by the company from Companies, firms or other
parties listed in the register maintained under Section 301 of the
Companies Act, 1956 or from companies under the same management within
the meaning of Section 370(1B) of the Companies Act, 1956 are not prima
facie prejudicial to the interests of the Company.
8. The Company has not granted any loans, secured or unsecured, to
Companies firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956, or to Companies under the
same management within the meaning of Section 370 (1B) of the Companies
Act, 1956, where the rate of interest and other terms and conditions
are, in our opinion. Prima facie prejudicial to the interest of the
Company.
9. In respect of loans and advances in the nature of loans given by the
Company, where stipulations have been made, the parties are generally
repaying the principal amounts as stipulated or as rescheduled and have
also been regular in the payment of interest where applicable.
10. In our opinion and as according to the information and explanations
given to us there are adequate internal control procedures commensurate
with the size of the Company and nature of its business with regard to
the purchase of stores provisions, plant & machinery, equipments, and
other assets and with regard to the sale of goods/services.
11. In our opinion and according to information and Explanations given
to us in respect of transactions of purchase and sale of goods,
materials and services made in pursuance of contracts or arrangements
entered with parties listed in the register maintained under section
301 of the Companies Act, 1956 aggregating during the year to
Rs.50,000/- or more in respect of each party, the prices charged have
been reasonable having regard to prevailing market prices for such
goods, materials or services or the prices at which transactions of
similar goods and materials have been made with other parties.
12. As explained to us, the Company has a regular procedure for
determination of unserviceable or damaged stores and provisions etc.
Adequate provision has been made in the accounts for the loss arising
on the items so determined.
13. In our opinion and according to the explanations given to us the
Company has not accepted any deposits from public and hence compliance
with the provisions of Section 58 A of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975, does not arise.
14. As explained to us the company has no by products. There is no
generation of scrap in the normal activities of the Company.
15. In our opinion the company has an adequate internal audit system
commensurate with the size and nature of its business.
16. The Central Government has not prescribed the maintenance of cost
records under Section 209(l)(d) of the companies Act, 1956.
17. According to the records of the Company, Provident Fund and
Employees State Insurance dues have not been regularly deposited during
the year with the appropriate authorities and as informed by the
management, efforts are being made to regularise the accounts.
18. According to the information and explanations given to us, there
are certain undisputed amounts payable in respect of Income Tax, Sales
Tax, Service Tax, Luxury Tax, Customs Duty and Excise Duty which have
remained outstanding as at 31st March, 2003 for a period of more than
six months from the date when they became payable. The management
informed us that efforts are being made to regularise the account.
19. According to the information and explanations given to us, no
personal expenses of employees or directors have been charged to
revenue account, other than those payable under contractual obligations
or in accordance with generally accepted business practice.
20. The Company is a sick industrial Company with the meaning of Clause
(0) of subsection (1) of section 3 of the Sick Industrial Companies
(Special Provisions) Act, 1985.
21. In respect of the Companys service activities, we further report
that
a) There is a reasonable system of recording receipts, issues and
consumption of materials and stores. Where applicable, and allocating
material consumed to the relative jobs:
b) There is a reasonable system of allocating man-hours utilized, where
applicable to the relative jobs:
c) There is a reasonable system of authorisation at proper levels; and
an adequate internal control on issue of stores and allocation of
stores and labour to Jobs commensurate with the size of the Company and
nature of its business.
22. As explained to us, the Company has not done any trading activities
during the year and the agro activities of the Company has been
discontinued due to intervention of SEBI in the investment schemes of
the Company.
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