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Sejal Glass Ltd.

BSE: 532993 | NSE: SEJAL | Series: NA | ISIN: INE955I01036 | SECTOR: Glass & Glass Products

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Sejal Glass is not traded on BSE in the last 30 days

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Apr 22, 15:31
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  • Prev. Close

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Sejal Glass is not traded on NSE in the last 30 days

Annual Report

For Year :
2015 2014 2013 2012 2011 2010 2009 2008

Auditor's Report

We have audited the accompanying financial statements of SEZAL GLASS LIMITED (''the Company), which comprise the Balance Sheet as at March 31, 2013, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Management''s Responsibility for the Financial Statements Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and Cash Flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 (''the Act). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. AUDITOR''S RESPONSIBILITY Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. OPINION In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act 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, 2013; ii. in the case of the Statement of Profit and Loss, of the Loss for the year ended on that date; and iii. in the case of the Cash Flow Statement, of the cash flows for the year ended on that date. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS 1. As required by the Companies (Auditor''s Report) Order, 2003 (''the Order) issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order. 2. As required by section 227(3) of the Act, 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 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 examination of those books c) the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account. d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in sub- section (3C) of section 211 of the Companies Act, 1956; e) on the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956. The Annexure referred to in paragraph 1 of the Our Report of even date to the members of SEZAL GLASS LIMITED on the accounts of the company for the year ended 31st March, 2013. On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that: 1. In respect of Fixed Assets: a) The Company has generally maintained proper records showing full particulars including quantitative details and situation of its fixed assets. The fixed assets register needs to be updated to reconcile with the general Ledger. b) As explained to us, the assets have been physically verified by the Management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification. c) During the year, the Company sold part of its Building which did not form substantial part of its fixed assets. This sale has not affected the going concern status of the Company. 2. In respect of Inventories: a) As informed to us, the inventory has been physically verified by the Management during the year. In our opinion, the frequency of verification is reasonable. b) In our opinion, the procedure of physical verification of 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 inventory. No material discrepancies have been noticed on verification of inventories as compared to book records. d) Proper procedure needs to be in place to assess the non-moving and obsolete items in the inventory. 3. In respect of Loans taken or granted: a) Company has granted unsecured loans amounting to Rs.1078.37 Lacs in addition to the Rs.1561.88 Lacs as at the beginning of the year, to Companies, firms or other parties listed in the Register under section 301 of the Companies Act, 1956. Out of these loans, a refund of Rs.95.69 Lacs has been received and the balance outstanding as at the end of the year was Rs.2544.56 Lacs. Maximum balance in these accounts during the year was Rs.2544.56 Lacs. b) The Company had taken loans amounting to Rs.NIL during the year in addition to the loans taken and outstanding as at the beginning of the year, from Companies, firms or other parties listed in the Register under section 301 of the Companies Act, 1956 amounting to Rs.8.00 Lacs. Out of these loans, a sum of Rs.NIL was outstanding as at the end of the year. Maximum balance in these accounts during the year was Rs.8.00 Lacs. c) In our opinion, the rates of interest wherever paid or charged, to the parties covered in the Register under section 301 of the Companies Act, 1956, were not prejudicial to the Interests of the Company. d) In our opinion, since no specific stipulations as to the terms of repayment were agreed upon, this clause does not apply. 4. In our opinion and according to the information and explanations given to us, and as reported by the Internal Auditors of the Company, the internal control procedures with regard to the purchases of inventory and with regard to sale of goods, collection from customers, inventory management, Cash management, credit notes monitoring need to be strengthened, to commensurate with the size of the Company and the nature of its business. 5. (a) According to the information and explanations given to us, we are of the opinion that the transactions need to be entered in the register maintained under Section 301 of the Companies Act, 1956 have been so entered. (b) In our opinion, and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the Register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five Lacs in respect of any party during the year, have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time. 6. In our opinion and according to the information and explanations given to us, the Company has generally complied with the provisions of section 58A & 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the Deposits accepted from public (except that there have been delays in payment of interest for the months of February 2013 and March 2013, which has since been paid. The Company has also not repaid matured fixed deposits amounting to Rs.1.88 Crores as at 31st March, 2013 (Since paid ''36.20 Lacs). Intimation of non payment of matured deposits in respect of small depositors has not been given to the Company Law Board. The requirement of maintaining Liquid Assets against deposits maturing by 31st March, 2014 has not been complied with). According to the information and explanations given to us, no order 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, on the Company. 7. The internal audit reports covered only systems and processes for the first quarter of the financial year which pointed out deficiencies in procedures and internal control. Subsequent reports did not clarify whether corrective steps are taken by the Company to rectify the deficiencies and also did not cover the major areas of financial transactions and internal control. 8. According to the information and explanations given to us and to the best of our knowledge and belief, consequent upon notification of the Companies (Cost Accounting Records) Rules, 2011, the Central Government has prescribed audit of the cost records maintained by the Company under Section 209(1) (d) of the Companies Act, 1956 for the products of the Company from the current financial year. 9. a) The company has generally been regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor education protection fund, Employees'' State insurance and Customs Duty, Excise Duty, Cess, wealth tax and other material statutory dues as applicable to it. However, there have been delays in payment of following statutory liabilities. The outstanding balance in these accounts as at 31st March, 2013 was as follows:- - Provident Fund -X12.60 Lacs. - Income Tax i.e. Tax Deducted at source (TDS) X93.02 Lacs. - Central Sales Tax - X99.23 Lacs.(Since paid Rs.0.65 Lacs) - Maharashtra VAT - Rs.63.81 Lacs. (Since paid X11.87 Lacs) - Service Tax - X22.74 Lacs - Employees'' State Insurance - 0.50 Lacs (Since paid) - Excise Duty - ^45.15 Lacs. (Since paid Rs.5.01 Lacs) - Profession Tax - X0.29 Lacs (Since paid) In our opinion and according to information and explanations given to us, no undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Customs Duty, Excise Duty, and Cess were in arrears as at 31st March 2013 for the period of more than six months from the date they became payable, except Income Tax Deducted at Source (TDS) - Rs.40.38 Lacs, Central Sales tax - Rs.53.67 Lacs and Maharashtra VAT 60.68 Lacs; Service Tax - X7.20 Lacs. b) According to the information and the explanations given to us, there are no dues outstanding of Sales Tax, Custom Duty, Wealth Tax, Excise Duty or cess applicable to it, which have not been deposited on account of any dispute. However, according to the information and explanations given to us, the following dues of Income tax have not been deposited by the Company on account of dispute:- Amount Period to Forum where Name of the Statute_ Nature of dues (Rs.) which it relates dispute is pending Income Tax Act Penalty 3696564/- AY 2006-07 CIT (A) Income Tax Act Penalty 4900913/- AY 2007-08 CIT (A) Income Tax Act Penalty 4087154/- AY 2008-09 CIT (A) 10. The Company has accumulated losses at the end of the financial year but it has not incurred cash losses in the financial year under report. The Company suffered cash losses during the immediately preceding financial year. 11. There have been delays in repayment of quarterly Installments of Term Loans (Principle) taken from the bank for the processing division of the company as follows:- Due date Date of payment Amount Delay (Days) 30.06.2012 13.09.2012 2700000 75 30.06.2012 20.09.2012 3000000 82 30.06.2012 24.09.2012 700000 86 30.09.2012 15.12.2012 1000000 76 30.09.2012 17.12.2012 437000 78 30.09.2012 19.12.2012 1013000 80 30.09.2012 20.12.2012 1600000 81 30.09.2012 22.12.2012 75000 83 30.09.2012 26.12.2012 2275000 87 31.12.2012 28.03.2013 6400000 87 31.03.2013 Not paid 64000001 Installment oft64 Lacs for the month of March 2013 was unpaid as at the balance sheet date. There have been regular delays in monthly payment of Interest on the above said Term Loans ranging from 13 days to 87 days. There are no borrowings from Financial Institutions. Company has not issued debentures during the year. 12. In our opinion and according to the information and explanations given to us, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. 13. In our opinion, the Provisions of any special statute as specified under clause (xiii) of paragraph 4 of the Order are not applicable to the Company. 14. In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause (xiv) of paragraph 4 of the Order are not applicable to the Company. 15. In our opinion and according to the information and explanations given to us, the Company has not given any Guarantees for loans taken by another company from Banks and hence the provisions of this clause do not apply. 16. In our opinion, the term loans have been applied for the purpose for which these were raised. 17. According to the information and explanations given to us, and on an overall examination of the Balance Sheet of the Company, we report that the Company has not utilised its working capital funds for acquiring Long Term assets. No long term funds have been used to finance short term assets. 18. According to the information and explanations given to us, the Company has not made any preferential allotment of shares during the year, to the parties covered in the register maintained under section 301 of the Companies Act, 1956, being the core promoters and promoter Companies. 19. The company has not issued any debentures during the year and hence the provisions of clause (xix) of paragraph 4 of the Order are not applicable to the company. 20. During the year covered by our Audit, the Company has not raised any money by way of a public issue. 21. According to the information and the explanations given to us, no fraud on or by the Company has been noticed or reported during the year. However, we are unable to determine / verify as to whether any such reporting has been made, during the year. For S S PURANIK & ASSOCIATES Chartered Accountants FRN 127731W SHRIPAD S PURANIK Partner M.Ship No. 030670 Mumbai Date: May 30, 2013