HANSAFLON PLASTO CHEM LIMITED
ANNUAL REPORT 2006-2007
The Members of
HANSAFLON PLASTOCHEM LTD.
We have audited the attached Balance Sheet of HANSAFLON PLASTOCHEM LTD as
at 31st March 2007 and the Profit and Loss Account and also the cash
statement for the year ended on that date annexed thereto. The 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.
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.
As required by the Companies (Auditors Report) Order, 2003 issued by the
Central Government in terms of Sec. 227(4A) of The Companies Act, 1956, we
enclose in the Annexure a statement on the matters specified in the
paragraph 4 and 5 of the said order.
Further to our comments in the annexure referred to in above paragraph, we
a) We have obtained all the information and explanations, which to the best
of our knowledge and belief were necessary for the purpose of the audit.
b) In our opinion, proper books of accounts as required by law have been
kept by the Company so far as it appears from examination of the books;
c) The Balance Sheet and Profit & Loss Account dealt with by this report
are in agreement with the books of account;
d) In our opinion the Profit & Loss Account and the Balance Sheet comply
with the accounting standards specified by the Institute of Chartered
Accountants of India referred to in sub section (3C) of section 211 of the
Companies Act, 1956.
e) On the basis of written representation received from the directors as on
31.03.2007, none of the directors are disqualified as on 31st March 2007
from being appointed as directors in terms of clause (g) of sub-section (1)
of Section 274 of The Companies Act 1956.
i. Earlier, the company had appealed in AAIFR against the order of BIFR
dated 16.03.2004 in which BIFR had recorded that it is just & equitable to
wound up the company. The appeal was heard on 04.05.2007 and above-
mentioned order was set aside wide order dated 15.05.2007. The opinion held
by AAIFR was that the company is capable of being revived as well as is
actively interested in revival given the fact that a substantial sum of
money has been spent in settling with its secured creditors.
ii. As stated in Note 6 of the Notes forming part of the Accounts,
Debtors/Creditors/advance are subject to reconciliation/confirmation.
iii. As stated in Note 8 of the Notes forming part of the Accounts, company
has not transferred Rs. 21,956.22 from the unpaid dividend account to the
General Revenue Account of the Central Government in pursuance to sub
section (5) of section 205A of the Companies Act 1956.
iv. The company had filed an appeal-dated 28.07.2005 against a sales tax
demand of Rs.3.20 crores raised by Sales Tax Authorities in Gurgaon. This
amount has been waived off wide decision dated 01.09.2006 by Jt. Excise &
Taxation Commissioner (Appeals), Faridabad.
v. Subject to the matters referred to the items f(i), (ii), (iii) & (iv)
above, in our opinion, and to the best of our information and according to
the explanation given to us, the accounts give the information required by
the Companies Act, 1956 in the manner so required and give a true and fair
i) In the case of Balance Sheet, the state of the affairs of the Company as
at 31st March, 2007;
ii) In the case of Profit & Loss account, of the Profit of the Company for
the year ended on 31st March 2007; and
iii) in the case of the cash flow statement ,of the cash flows for the year
ended on that date.
For ALOK MITTAL & ASSOCIATES
ALOK K. MITTAL Place : New Delhi
(PARTNER) Date : 28.08.07
M. No. 71205
ANNEXURE TO AUDITORS' REPORT
Referred to in paragraph 3 of our report of even date.
(i) The Company has maintained proper records of fixed assets. All the
assets have not been physically verified by the management during the year
but there is a regular programme of verification which, in our opinion, is
reasonable having regard to the size of the company and the nature of its
(ii) The inventory has been physically verified during the year by the
management. The company is maintaining proper records of inventory. The
discrepancies noticed on physical verification between the physical stocks
and the book records were not material.
iii) The company not taken any from the parties listed in the Register
maintained under section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations given
to us, the company is yet to introduce adequate internal control procedures
commensurate with the size of the company and the nature of its business
with regard to purchases of inventory, fixed assets and with regard to the
sale of goods.
(v) According to the information and explanations given to us, we are of
the opinion that the transactions that need to be entered into the register
maintained u/s 301 of the Companies Act, 1956 have been so entered.
(vi) The company has not accepted any public deposits, so clause (vi) is
(vii) In our opinion, the company has yet to establish an internal audit
system commensurate with the size and nature of its business.
(viii) The company is not required for the maintenance of cost records
under section 209(1)(d) of the Companies Act, 1956 so clause (viii) is not
(ix) (a) According to the record of the Company and as per BIFR order, the
company has been asked to submit the Employees' share of contribution to
Provident Fund dues to the respective department. The company is deducting
and depositing employees' share with the respective department. The company
is contributing its share of contribution of PF.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the Company has not been regular in
depositing undisputed statutory dues i.e. provident fund, investor
education protection fund, income tax, were in arrears as at 31st March
,2007 for a period of more than six months from the date they became
(c) According to the information and explanation given to us, the company
has not deposited sales tax amounting to Rs. 5.55 Lacs as it has applied
for waiver/ deferment of sales tax. However, the approval is still waited.
(x) The company is not a sick industrial company from A.Y. 2007-08. It has
not incurred any cash loss during the financial year covered by our audit
and in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations given
to us, the company is able to pay principal and interest amount on term
loan from IDBI and cash credit from IDBI during the period under audit by
making One Time Settlement with Banks, which are secured against all the
assets of the company.
(xii) According to the information and explanations given to us, company
has granted no loans or advances on the basis of security by way of pledge
of shares, debentures and other securities, so clause (xii) is not
(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) Based on records examined by us and according to the information and
in our opinion, the company is not dealing in or trading in shares,
securities, debentures and other investments. According, the provisions of
clause 4(xiv) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the company.
(xv) In our opinion, the company has not given any guarantees for loans
taken by others from banks or financial institutions.
(xvi) According to the information and explanations given to us , the term
loans have been applied for the purpose for which they were raised.
(xvii) According to the information and explanations given to us and on
overall examination of 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 information and explanations given to us, the
company has made preferential allotment of 35,00,000 shares @ Rs. 10 each
to Higrow Industries, which is the party, covered in the register
maintained under section 301 of the Act.
(xix) The company has not issued any debentures.
(xx) The company has not raised any money by public issue during this year,
so clause (xx) is not applicable.
(xxi) According to the information and explanations given to us, no fraud
on or by the company has been noticed or reported during the course of our
For ALOK MITTAL & ASSOCIATES
Place : New Delhi
Date : 28.08.07