We have audited the attachd Balance
Sheet of The Motor & General Finance
Limited as at March 31,2008, the Profit
& Loss Account and also the Cash
Flow Statement for the year ended
on that date, annexed thereto. These
financial statements are the responsibility
of the Company's management. Our responsibility
is to express an option on there financial
statements bases on our audit.
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 disclosures 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.
1. As required by the Companies (Auditor's
Report) Order, 2003 (as amended) issued
by the Central Goverment of India
in terms of sub section (4A) of Section
227 of the Companies Act, 1956 we
enclose in the Annexure, a statement
on the matters specified in paragraphs
4 and 5, of the said Order.
2.Attention is drawn to Note No.2
of Schedule-15 "Notes on Accounts",
regarding the accumulated losses of
the Company as at March 31,2008 having
exceeded its networth. However, the
Company is generating profits during
the last four years, which has led
to reduction of accumulated losses.
The company has also discounted fresh
hire purchase/ leasing business. The
management is of the view that the
Company has assets of substantial
market value to generate enough funds
to pay off its entire liablities.
In view of the above the accounts
have been preapred on the assumption
that the Company will continue as
a Going Concern.
3. Further to our comments in the
Annexure referred to in paragraph
1 above, we report that :
i) Provision has not been made for
depreciation on leasehold land and
arrears of depreciation has not been
quantified {Refer to accounting policy
no.6(d).
ii) Provision of Rs.234.84 lacs has
not been made for diminution in the
value of long term permanent investments
(Refer Note No.6)
iii) Provision has not been made
for interest of Rs.6.97 lacs for the
year on Inter Corporate Deposit (Refer
Note No.19).
iv) There is non-compliance of the
provisions of Non Banking Financial
Companies Prudential Norms (Reserve
Bank) Directions,1998 with regard to
maintenance of Capital Adequacy and
Credit / Investment exposure in excess
of the prescribed limits (Refer Note
No.3(a).
4. We further report that :
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 examinations of those books.
c) The Balance Sheet, Profit &
Loss Account and Cash Flow Statement
dealt with by this report are in agreement
with the books of account;
d) In our opinion, the Balance Sheet,
Profit & Loss Account and Cash Flow
Statement dealt with by this report
comply with the accounting standards
referred to in sub-section (3C) of section
211 of the Companies Act, 1956 subject
to our comments in our paragraphs 3(i)
& 3(ii) above.
e) On the basis of written representation
received from the Directors, as on March
31, 2008 and taken on record by the
Board of Directors, we report that none
of the Directors is disqualified as
on March 31, 2008 from being appointed
as a Director under clause(g) of sub-section(1)
of section 274 of the Companies Act,
1956.
We further report that, subject to
our comments in paragraphs 3(ii) 3(iii)
above and without considering the observation
made in paragraphs 3(i) and 3(iv) above
the effect of which could not be determined,
the profit for the year would have been
Rs.1743.31 lacs (against the reported
figure of Rs.1988.12 lacs) and the carry
forward loss would have been Rs.6051.62
lacs (against the reported figure of
Rs.5809.81 lacs)
In our opinion and to the best of our
information and according to the explanations
given to us, the said accounts read
together with the Significant Accounting
Policies and Notes on Accounts 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:
i) In the case of the Balance Sheet,
of the state of affairs of the Company
as at March 31,2008;
ii) In the case of the Profit &
Loss Account, of the profit of the Company
for the year ended on that date; and
in the case of the Cash Flow Statement,
of the cash flows of the Company for
the year ended on that date.
