| 1. We have audited the attached Balance Sheet of Hansaflon Plastochem
Ltd, Gurgaon (HR). As at 31st March 2011 and also the Profit and Loss
Account 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 opinion on these
financial statements based on our audit.
2. We have 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.
3. As required by the Companies (Auditors Report) Order,2003 and
amendments thereto issued by the Central Government of India in terms
of Sec 227(4A) of The Companies Act 1956, we annex hereto a statement on
the matters specified in the paragraphs 4 and 5 of the said order, to
the extent applicable to the Company.
4. We further report that :
(i) 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;
(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, the Balance Sheet and Profit and Loss account
dealt with by this report comply with the accounting standards referred
to in sub-section (3C) of section 211 of the Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on 31st March 2011, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2011 from being appointed as a director in terms of clause
(g) of sub-section(1) of section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said 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 31st March 2011; and
(ii) in the case of Profit and Loss Account, of the Profit for the year
ended on that date.
Annexure to Auditors Report
Annexure referred to in paragraph 3 of the auditors report to the
members of Hansaflon Plastochem Ltd, Gurgaon (HR) for the year ended
31st March, 2011
As required by the companies (Auditor Report) Order , 2003 and
amendments thereto and according to the information and explanations
given to us during the course of the audit and on the basis of such
checks of the books and records as were considered appropriate we
report that:
(i) a) The company has maintained proper record showing full
particulars including quantitative details and situations of fixed
assets. However as reported by the management the Fixed Assets
Register and other related files are found missing from office and the
information for the same had been recorded in respective police station
vide DD No. 30A dated 30/06/2011.
b) All the assets have not been physically verified by the management
in accordance with a phased programme of verification, The frequency of
verification is reasonable and as reported by management discrepancies
noticed on such physical verification were not material.
c) The assets disposed during the year are not significant and
therefore do not affect the going concern assumptions.
(ii)a) The inventories have been physically verified by the management
during the year at reasonable intervals.
b) The procedure of physical verification of the inventories followed
by the management is reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The Company has maintained proper records of inventories and
discrepancies noticed on physical verification of inventories as
compared to books records were duly adjusted.
(iii) a) The company has not granted unsecured loan to party covered in
the register maintained under section 301 of the Companies Act, 1956.
b) In view of our comments in Para (iii) (a) above, clauses 4 (iii) (b)
to (d) of the said order are not applicable to the company.
e) The company has not taken unsecured loan from any parties covered in
the register maintained under section 301 of the Companies Act, 1956.
f) In view of our comments in Para (iii) (e) above, clauses 4 (iii) (f)
to (g) of the said order are not applicable to the company.
(iv) In our opinion and information given by the management to us, the
company is yet to introduce adequate internal control systems
commensurate with the size of the company and the nature of its
business with regard to purchase of inventories, fixed assets and for
the sale of goods and services.
(v) The transactions made in pursuance of contract or arrangements that
need to be entered into the register maintained under section 301 of
the Companies Act, 1956 has been recorded in the register. However
register is not available for verification, as reported by the
management the Contracts Register and other related files are found
missing from office and the information for the same had been recorded
in respective police station vide DD No. 30A dated 30/06/2011.
(vi) The company has not accepted any deposits from the public within
the meaning of the sections 58A, 58AA or any other relevant provision
of the Act and the rules framed there under any directives report
issued by the Reserve Bank of India. No order in relation thereto has
been passed by the Company Law Board or National Company Law Tribunal
or Reserve Bank of India or any Court or any other Tribunal.
(vii) The Company has yet to establish formal internal audit system
commensurate with its size and nature of its business.
(viii) The Central Government has not prescribed for maintenance of
cost records under section 209 (1) (d) of the Companies Act, 1956 for
the company.
(ix) a) According to the records available and information given to us
by the company's management, the undisputed statutory dues including
Provident Fund, Employees State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty and Excise Duty, Cess have
regularly deposited with the appropriate authorities. There are no
undisputed amount payable in respect of such statutory which have
remained outstanding as at 31st March, 2011 for a period more then six
months from the date they became payable.
b) According to the records available and information given to us by
the company's management, there are no amount in respect of any
disputed income tax, sales tax, wealth tax, service tax, custom duty,
excise duty and cess.
(x) The company is a sick industrial company since financial year
2008-09 and has accumulated losses of Rs.757.31 lakhs at the end of the
financial year 2009-10 and it has incurred losses in current financial
year of Rs. 316.61 lakhs before provision of any tax, cash loss during
the year is Rs. 272.20 Lakhs, total accumulated loss as on 31st March
2011 is 1073.92 Lakhs which is more the 50% of its net worth.
(xi) According to the records available and information given to us by
the company's management the Company has not defaulted in repayment of
its dues to banks and financial institutions.
(xii) According to the records available and information given to us by
the company's management the company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures or other securities.
(xiii) The provisions of any Special Statute applicable to Chit Fund,
Nidhi Fund or Mutual Benefit Fund/Societies are not applicable to the
company.
(xiv) In our opinion and according to the information and explanations
given to us, the company is not a dealer or trader in shares,
securities, debentures and other investments.
(xv) According to the records available and information given to us by
the company's management the company has not given any guarantee for
loan taken by others from banks and financial institutions.
(xvi) According to the records available and information given to us by
the company's management, in our opinion, the term loan have not been
applied for the purpose for which they were raised.
(xvii) According to the records available and information given to us
by the company's management on an overall examination the Balance Sheet
of the company, we report that no fund raised on short term basis have
been used for long term investment.
(xviii) According to the records available and information given to us
by the company's management the company has not issued any equity
shares during the year.
(xix) According to the records available and information given to us by
the company's management the company has not issued any debentures
during the year and no charge has been created.
(xx) According to the records available and information given to us by
the company's management has disclosed end use of money raised from
public issues.
(xxi) During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, we have neither come across any instance
of material fraud on or by the Company, noticed or reported during the
year.
Place : New Delhi For Naresh J Gupta & Co.
Dated : 15th July 2011 Chartered Accountants
(CA Naresh Gupta)
Partner
M. No. 075291 | 