MANOR FLOATEL LIMITED
ANNUAL REPORT 2007-2008
1. We have audited the attached Balance Sheet of Manor Floatel Limited as
at 31st March 2008 and also the Profit and Loss Account of the company for
the year ended on that date annexed thereto, both of which we have signed
under reference to this report. This financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining on a test
basis, evidence supporting the amounts and disclosure in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by management,as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
3. In our opinion and to the best of our information and according to the
explanations given to us,the Balance Sheet and Profit and Loss Account,
together with the notes attached thereto give in the prescribed manner the
information required by the Companies Act, 1956 and also give respectively,
a true and fair view of the state of the company's affairs as at 31st March
2008 and its loss for the year ended on that date.
4. Further to our comments in the Annexure referred to above, we report
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
(ii) 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 those books.
(iii) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account.
(iv) In our opinion these accounts have been prepared in compliance with
the Accounting Standards issued by the Institute of Chartered Accountants
of India referred to in sec. 211(3C) of the Companies Act to the extent
(iv) On the basis of written representations received from the directors,
as on 31st March 2008 and taken on record by the Board of Directors, we
report that none of the director is disqualified as on 31st March 2008 from
being appointed as a director terms of clause (g) of sub-section(1) of
section 274 of the Companies Act 1956.
(v) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts subject to the notes annexed
there with give the information required by the Companies Act, 1956 in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India.
a) in the case of the Balance Sheet,of the state of affairs of the company
as at 31st March 2008.
b) in the case of the Profit and Loss Account of the loss of the company
for the year ended on that date.
As required by the Companies (Auditors Report) Order and as amended in 2004
we report that:
i. a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b) Fixed Assets have been physically verified by the management during the
year and no material discrepancies were identified on such verification.
c) There was no disposal of fixed assets during the year.
ii. a) The inventory has been physically verified by the management during
b) In our opinion the procedures of physical verification of inventories
followed by the manage ment are reasonable and adequate in relation to the
size of the company and nature of its business.
c) The Company has maintained proper records of inventory. The
discrepancies noticed on verification between the physical stocks and book
records were not material.
iii) As informed the Company neither granted nor taken any loans,secured or
unsecured to/from Companies,firms or other parties covered under sec.301 of
the Companies Act, 1956.
iv) In our opinion and according to the information and explanations given
to us, there are adequate internal control systems commensurate with the
size of the company and the nature of its business with regard to purchase
of inventory, fixed assets and with. regard to the sale of goods and
services. Further there is no continuing failure to correct major
weaknesses in internal control system.
v) According to the information and explanations provided by the management
there were no transaction needed to be entered in the Register maintained
under section 301.
vi) The Company has not accepted any deposits from the public during the
vii) In our opinion the Company has an internal audit system commensurate
with the size and nature of its business.
viii) The Central Government has not prescribed maintenance of cost records
under section 209(1)(d) of The Act for the Company.
ix) a) As explained to us by the management Provident Fund Act and
Employees State Insurance Act are not applicable to the company. The
Company is generally regular in depositing with appropriate authorities
other undisputed statutory dues.
b) Rs.1,14,711/- is refundable to the company for A.Y. 2003-04 vide Income
Tax Departments intimation order under sec. 143(1) of the Income Tax Act,
1961. Subsequently Income Tax Department after an assessment made under
Sec. 144 of the Income Tax Act has raised a claim of Rs.1093521/- against
the Company. The claim has been disputed by the Company and an appeal is
pending before CIT (Appeals) - VIII against the claim. Against the order of
CIT (Appeals) - VIII, The Income Tax Department has preferred an Appeal
before the Hon'ble ITAT-A Bench Kolkata which is still pending.
x) The Company has been registered for a period exceeding 5 years and the
company has started its operation and capitalised assets accordingly. Pre-
operative and preliminary expenses including losses will be dealt with
according to the laws.
xi) Based on our Audit procedure and according to the information and
explanations given to us we are of the opinion that the Company has not
defaulted in repayment of dues to a financial institution or bank.
xii) Based on our examination of documents and records and as per
information and explanations given to us, the company has not granted any
loans and advances on the basis of security by way of pledge of shares,
debentures and other securities.
xiii) In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society Therefore the provisions of clause 4(xiii) of the
companies (Auditor's Report) Order 2003 are not applicable to the company.
xiv) According to the information and explanations given to us,the company
is not dealing in or trading in shares, securities and other investments.
Accordingly, the provisions of clause 4(xiv) of the Companies (Auditors
Report) order 2003 are not applicable to the company.
xv) According to the information and explanation is given to us the company
has not given any guarantee for loans taken by others from bank or
xvi) Based on information and explanations given to us by the management
term loans raised by the company have been applied for the purpose for
which they were raised.
xvii) We have been informed by the management that the funds raised on
short term basis have not been used for long term investment and vis-a-
xviii) The company has not made any preferential allotment of shares to
parties or companies covered under sec. 301 of the Companies Act, 1956.
xix) The company has not issued any debentures.
xx) We have verified that the end use of money raised by public issue is as
disclosed in the notes to the financial statements.
xxi) Based upon the Audit procedures performed for the purpose of reporting
the true and fair view of the financial statements and as per the
information and explanations given by the management, we report that no
fraud or by the company has been noticed or reported during the course of
In terms of our attached report of even date
For N.K. ROYCHOWDHURY & ASSOCIATES
Date : 12th August, 2008 N.K. Roychowdhury