Our Directors present the Nineteenth Annual Report of the company
 along with the Audited Accounts for the year ended 31st March 2003.
 
 FINANCIAL HIGHLIGHTS
 
                                                               Rs.in Lac
 Particulars                                   2002-2003       2001-2002
 
 Sales & other income                                469            1398
 
 Profit/Loss before depreciation & interest        (101)            (74)
 
 Less : depreciation                                 696             696
 
 Interest                                           1296             996
 
 Profit/Loss before tax                           (2092)          (1766)
 
 Provision for tax                                     -               -
 
 Profit/Loss after tax                            (2092)          (1766)
 
 Profit allocated to investment Scheme                 -               -
 
 Balance                                          (2092)          (1766)
 
 Add: Balance brought forward from previous Year  (2332)           (567)
 
 Appropriations:
 
 Less: Transferred to General Reserves
 
 Net Loss for the year carried to the             (4424)          (2333)
 Balance Sheet
 
 Performance:
 
 The turnover during the year under review which is slightly lower to
 Rs. 469 Lac as against Rs.1398 Lac in previous year and Loss before tax
 was Rs. 2092 Lac against Rs.1766 Lac in the previous year.
 
 FINANCE & ACCOUNTS
 
 1. Income Tax Assessments
 
 The Companys Income tax assessments are completed upto the Assessment
 year 2000-2001. Assessment for the Assessment for the year 2001-2002
 is in progress. Various appeals before the Appellate Authorities are
 being pursued.
 
 DIVIDEND
 
 In view of the loss the directors do not recommend any dividend during
 the year.
 
 DIRECTORS RESPONSIBILITY STATEMENT:
 
 Pursuant to Section 217 (2AA) of the Companies Act, 1956 the Directors
 confirm that: -
 
 1. In the preparation of the accounts, the applicable accounting
 standards have been followed:
 
 2. Appropriate accounting policies have been selected and applied
 consistently and judgements and estimates that are reasonable and
 prudent have been made so as to give a true and fair view of the state
 of affairs of the company as at 31st March 2003 and of the loss of the
 company for the period.
 
 3. Proper and sufficient care has been taken for the maintenance of
 adequate accounting records in accordance with the provisions of the
 Companies Act 1956, for safeguarding the assets of the company and for
 preventing and detecting fraud and other irregularities.
 
 4. The accounts have been prepared on a going concern basis.
 
 CORPORATE GOVERNANCE
 
 In terms of the Corporate Governance guidelines issued by the Stock
 Exchange, a report for the year 2002-2003 is enclosed by way of
 Annexure A to this report.
 
 ENERGY CONSERVATION, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS
 AND OUTGO
 
 As the company has minimal manufacturing activity the consumption of
 energy is minimal. Hence no separate details of energy consumption is
 provided in the report. The company has taken all possible steps in
 conserving the energy. Strict monitoring of the energy consumption at
 all units and educating the staffs to the awareness of conserve the
 energy conservation is done on a continuous basis. The company and its
 management is closely monitoring the energy consumption at all units
 and all steps are being initiated to conserve the energy to the extent
 possible.
 
 The company has not adopted any foreign technology during the year.
 The company has not earned nor spent any foreign exchange during the
 year.
 
 FIXED DEPOSITS:
 
 The company has not taken any fixed deposits attracting the provisions
 of section 58A of the Companies Act 1956 and the rules made thereunder.
 
 PARTICULARS OF EMPLOYEES
 
 During the year there were no employees drawing remuneration attracting
 the provisions of section 217 of the Companies Act 1956 and the rules
 made thereunder.
 
 OUTSTANDING GDRS/ADRS/WARRANTS: -
 
 The company has not issued any GDRs/ADRs during the year. However
 there are payments due to the investors under the various schemes of
 the company which are being honored gradually.
 
 AUDITORS:
 
 Shri Dedhia Talak Devji, Chartered Accountant, Mumbai Auditors of the
 company retires at the conclusion of the ensuing Annual General meeting
 and being eligible offers themselves for re- appointment.
 
 DETAILS OF THE STOCK EXCHANGE REQUIREMENT
 
 The additional details as required by the stock exchanges is provided
 in the Annexure A forming part of their report.
 
 ACKNOWLEDGMENTS:
 
 Your Directors hereby thank the employees, bankers and shareholders of
 the company for their valued co-operation and confidence reposed with
 the board.
 
                                                   By Order Of the Board
                                               For Suman, Motels Limited
 Place : Mumbai                                    (Surendpa M Khandhar)
 Dated : 25.06.2003                                    Managing Director