SUMAN MOTELS LIMITED
ANNUAL REPORT 2001-2002
The Members of
SUMAN MOTELS LIMITED
We have audited the attached Balance sheet of SUMAN MOTELS LIMITED, as at
March 31, 2002 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 in 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
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.
e) Mr Vijay Kumar and Mr Javed Akhtar has resigned from directorship as of
March 11, 2002, whose representation has not been considered by the Board
and as far as other Directors are concerned, on the basis of written
representation from Directors and the information and explanation as made
available and taken on record by the Board of Directors, we report that
none of those Directors are disqualified as on 31st March, 2002 from being
appointed as a Director in terms of Clause (g) of sub-section (1) of
Section 274 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 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, the state of affairs of the Company as at
March 31st 2002; and
ii) In the case of Profit & Loss Account of the loss for the year ended on
Dedhia Talak Devji
Place : Mumbai
Dated : 5th June, 2002
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 2002 OF SUMAN
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
materials discrepancies were noticed on such verification as compared to
2. None of the fixed assets have been revalued during the year under
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 it's business.
5. The discrepancies noticed on verification between the physical stocks
and book records were not material in relation to the operations of the
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 interest 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 part, the prices charged have been reasonable having regard
to prevailing market prices for such goods, materials or services of 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 of
the provisions of Section 58A 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 it's business.
16. The Central Government has not prescribed the maintenance of cost
records under Section 209(1)(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 are 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 at 31st March, 2002 for a period of more than six months from
the date of 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 sick Industrial Company with the meaning of Clause (o)
of subsection (1) of section 3 of the Sick Industrial Companies (Special
Provisions) Act, 1985.
21. In respect of the Company's 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 allocation
material concerned 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 relative of
22. As explained to us, the Company has not done any trading activities
during the year and the activities of the Company has not discontinued from
those to intervention of SEBI in the investment schemes of the Company.
Dedhia Talak Devji
Place : Mumbai
Dated : 5th June, 2002