We have audited the attached Balance Sheet of HARISIDDHA TRADING &
FINANCE LTD. as at 31st March 2005 and the Profit and Loss Account of
the Company for the year ended on that date annexed thereto. These
financial statements are the responsibility of the companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards required 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
1. The Companys (Auditors Report) order,2003 issued by the Government
in terms of Section 227(4A) of the Companies Act, 1956, we enclose in
the annexure a statement on the matters specified in the paragraph 4 &
5 of the said order.
2. Further to our comments in the Annexure referred to in paragraph 1
above, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of such
c) The Balance Sheet and Profit and Loss Account referred to in this
report are in agreement with the books of account.
d) In our opinion, the Balance Sheet and Profit and Loss Account comply
with the mandatory Accounting Standards referred in Section 211 (3C) of
the Companies Act, 1956.
e) On the basis of confirmations received from the directors concerned,
none of the Directors is disqualified from being appointed as a
Director under clause (g) of Sub-Section (a) of section 274 of the
Companies Act, 1956. except Mr. Sanjay B. Shah
f) In our opinion and to the best of our information and according to
the explanations given to us, the said Balance Sheet and Profit & Loss
Account read together with the notes thereon, give information required
by the Companies Act, 1956, in the manner so required and give true and
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2005 and
ii. in the case of the Profit and Loss Account, of the loss for the
year ended on that date.
ANNEXURE TO AUDITORS REPORT FOR THE YEAR ENDED 31-03-2005 HARISIDDHA
TRADING & FINANCE LTD
l)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 in a phased periodical manner, which in our opinion is
reasonable, having regards to the size of the company and nature of its
c) There was no substantial disposal of fixed assets during the year
which would affect the going concern status of the company.
2) As company has not carried out any Manufacturing/Trading Activities
during the year henc clause 4(ii) of the order is not applicable to the
3) During the year the company has not granted / taken loan from
Companies, firms and other parties covered in the register maintained
u/s 301 of the Companies Act. 1956.
4) In our opinion and 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
for the purchase of fixed assets and also for the other income. During
the course of our audit, we have not observed any major weaknesses in
5) In the respect of transactions covered under Section 301 of the
Companies Act. 1956, in our opinion and according to the information
and explanations given to us. there are no transactions in pursuance
of contracts or arrangement entered in the register maintained under
Section 301 of the Companies Act, 1956.
6) The Company has not accepted any deposits from the public.
7) In our opinion, the internal audit system of the Company is
commensurate with its size and nature of its business.
8) We are informed that the maintenance of cost records has not been
prescribed by the Central Government under Section 209(1 )(d) of the
Companies Act, 1956.
9) In respect of statutory dues:
a) According the records of the Company, the Company is regular in
depositing undisputed statutory dues including Income Tax, Professional
Tax, and Other statutory dues with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March 2005 for a period of more than six months
from the date of becoming payable.
b) Since Company has no undisputed liability of Income Tax, Profession
Tax and other statutory dues, Clause ix (b) of the Companies (Auditors
Report) Order 2003 is not applicable to the company.
10) During the year company has incurred loss and the company has also
11) Since the company has not any liability during the year towards
repayment of dues to financial institution/bank hence clause 4 (xi) of
the order is not applicable to the company.
12) In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
13) In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, clause 4(xiii) of the Companies
(Auditors Report) Order 2003 is not applicable to the company.
14) The Company has not entered into trading of shares & other
securities. Therefore clause 4(XIV) of the order is not applicable to
15) The Company has not given any guarantee for loans taken by others
from bank or fianancial institutions.
16) According to the information and explanations given to us, the
Company has not taken any term loan during the year.
17) On the basis of information received from the management and the
based on our examination of the balance sheet of the Company as at
March 31, 2005 we find that the funds raised on the short term basis
have not been used for long term investment and vice-versa.
18) During the year, the Company has not made any preferential
allotment of shares to parties and Companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
19) The Company has not issued any debentures and hence clause 4(xix)
of the Companies (Auditors Report) Order, 2003 is not applicable to
20) The Company has not issued preference shares during the year.
21) In our opinion and according to the information and explanation
given to us, no fraud on or by the company has been noticed or reported
during the year, that cause the financial statements to be materially
For R.K.CHAPAWAT & CO.
DATED: 30 JUN 2005