you are here:

Sejal Glass Ltd.

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

BSE Live

May 06, 16:00
3.87 0.00 (0.00%)
Volume
No Data Available
0
  • Prev. Close

    3.87

  • Open Price

    3.87

  • Bid Price (Qty.)

    3.60 (80)

  • Offer Price (Qty.)

    3.87 (20)

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

NSE Live

Apr 22, 15:31
5.00 0.00 (0.00%)
Volume
No Data Available
0
  • Prev. Close

    5.00

  • Open Price

    5.00

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

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

Report on the Financial Statements We have audited the accompanying financial statements of SEJAL GLASS LIMITED, (the company), which comprises the Balance Sheet as at 31st March 2015, the Statement of Profit and Loss and the 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 The Company''s Board of Directors is responsible for the matters in section 134(5) of the Companies Act, 2013 (the Act) with respect to 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 principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, 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 have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. 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 financial control relevant to the Company''s preparation of the financial statements that give true and fair view 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 Company''s Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our qualified audit opinion on the financial statements. Basis for Qualified Opinion - The Company has not obtained in many cases balance confirmations in respect of Trade Receivables, Trade Payables, Loans and Advances given and taken and Inter Corporate Deposits given and taken (excluding Group companies); Qualified Opinion In our opinion and to the best of our information and according to the explanations given to us, and subject to note no. 26(8) to the financial statements, referred in Basis of Qualified Opinion, the aforesaid 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, a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2015; b) In the case of the Statement of Profit and Loss, of the Loss for the year ended on that date; and c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date. Emphasis of Matters We draw attention to the following matters in the Notes to the financial statements: a) In the absence of convincing evidence assuring future taxable income, the company has not made provision for Deferred Tax Asset; Our opinion is not qualified in respect of the above matter. Report on other Legal and Regulatory Requirements As required by the Companies (Auditor''s Report) Order, 2015 (the Order) issued by the Central Government of India in terms of sub- section (11) of section 143 of the Act, we give in the Annexure a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable. As required by section 143(3) of the Act, we report that: a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit. b) Except for the effects of matter described in the Basis for Qualified opinion paragraph, 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, the 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 aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. e) On the basis of written representations received from the directors as on 31 March, 2015, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2015, from being appointed as a director in terms of Section 164(2) of the Act. f) The Company has made provision for foreseeable losses, if any that may arise due to matters referred in qualified opinion. g) With respect to the other matters to be included in the Auditors'' Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us, i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements Refer to 26(2) to the financial statements ii) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any on long term contracts including derivative contracts. iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company. Annexure to the Independent Auditors'' Report The Annexure referred to in our Independent Auditors'' Report to the members of the Company on the financial statements for the year ended 31 March 2015, 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 two floors 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 however should be in place to assess the non-moving and obsolete items in the inventory. The Inventory includes old and non moving items; a contingency provision for the same has been made in the books of account of the company. 3. a) The company has granted unsecured loans to companies, firms and other parties covered in the register maintained under section 189 of the Companies Act, 2013. Interest charged on these loans is capitalised to the principal loan amount. b) In the absence of specific stipulation as to the terms of repayment, the loans are repayable on demand. Accordingly, paragraph (iii)(b) of the Order is not applicable to the Company in respect of repayment of the principal amount. 4. In our opinion and according to the information and explanations given to us, the internal control procedures with regard to the purchase of inventory and sale of goods, collection from customers, inventory management, cash management, credit notes monitoring need to be strengthened, to be commensurate with the size of the Company and the nature of its business. In our opinion, measures should be taken to improve upon these weaknesses. 5. In our opinion, and according to the information and explanations given to us, the Company has not complied with the provisions of section 73 to 76 of the Companies Act, 2013 with regard to the Deposits accepted from public. 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. The Company has continuously defaulted in payment of interest. - The Balance in Fixed Deposit account is not reconciled. - The Company has also failed to repay matured fixed deposits amounting to Rs. 9.52 crores as at 31st March, 2015. - The requirement of keeping not less than 15% of the amount of deposits maturing during the financial year as well as in the following year in a scheduled bank in a separate bank account titled Deposit Repayment Reserve Account has not been complied with. - The Company has not filed the return of Deposits for the past three years including the year under audit. 6. 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 148(1) of the Act for the products of the Company. 7. According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has generally defaulted in timely payment of undisputed statutory dues including Provident Fund, Employees'' State insurance income tax, sales tax, value added tax and Excise Duty, Cess, service tax, wealth tax and other material statutory dues as applicable to it. There have been delays in payment of following statutory liabilities. The outstanding balance in these accounts as at 31st March, 2015 is as follows:- - Provident Fund - Rs.36.44 Lacs. - Income Tax i.e. Tax Deducted at source (TDS) Rs. 221.40Lacs. - Central Sales Tax Rs.189.96 Lacs. - Maharashtra VAT Rs. 217.69 Lacs. - Service Tax Rs.28.86 Lacs - ESIC Rs. 1.31 Lacs - Profession Tax Rs. 1.04 Lacs - Excise Duty - Rs.65.05 Lacs 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, Value Added Tax, Service Tax, Customs Duty, Excise Duty, and Cess were in arrears as at 31st March 2015 for the period of more than six months from the date they became payable, except Income Tax Deducted at Source (TDS) - Rs. 145 Lacs, Central Sales tax Rs. 175.97 Lacs and Maharashtra VAT 70.08 Lacs; Service Tax Rs.27.08 Lacs, ESIC Rs 0.36 Lacs, Provident Fund Rs.21.79 Lacs, Excise duty Rs 74.13 and Profession Tax Rs .26 Lacs. b) According to the information and the explanations given to us, there are no dues outstanding of Sales Tax, Customs 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, Sales Tax, Excise Duty have not been deposited by the Company on account of dispute:- Name of the Statute Nature of dues Amount (Rs.) Period to which it relates Income Tax Act Penalty 3696564/- A.Y.2006-07 Income Tax Act Penalty 4900913/- A.Y.2007-08 Income Tax Act Income Tax 3686271/- A.Y.2007-08 Income Tax Act Penalty 4087154/- A.Y.2008-09 Income Tax Act Income Tax 5936154/- A.Y.2008-09 Central Board of Excise Excise Duty 4500000/- and Customs Central Board of Excise Service Tax 2882970 F.Y.2007-08 and Customs Central Board of Excise Service Tax 9982702 F.Y.2008-09 and Customs Central Sales Tax Act Central Sales Tax 112789 F.Y.2009-10 Central Sales Tax Act Penalty 657768 F.Y.2006-07 Maharashtra Value Penalty 53212 F.Y.2009-10 Added Tax Act Maharashtra Value MVAT 4102858 F.Y.2008-09 Added Tax Act Maharashtra Value Penalty 2519127 F.Y.2008-09 Added Tax Act Maharashtra Value MVAT 15428608 F.Y.2007-08 Added Tax Act Maharashtra Value Penalty 8339788 F.Y.2007-08 Added Tax Act Maharashtra Value Penalty 744317 F.Y.2006-07 Added Tax Act Name of the Statute Forum where dispute is pending Income Tax Act ITAT Income Tax Act ITAT Income Tax Act CIT (A) Income Tax Act CIT (A) Income Tax Act ITAT Central Board of Excise and Customs CESTAT Central Board of Excise and Customs CESTAT Central Board of Excise and Customs CESTAT Central Sales Tax Act Maharashtra State Sales Tax Tribunal Central Sales Tax Act Maharashtra State Sales Tax Tribunal Maharashtra Value Added Tax Act Maharashtra State Sales Tax Tribunal Maharashtra Value Added Tax Act Maharashtra State Sales Tax Tribunal Maharashtra Value Added Tax Act Maharashtra State Sales Tax Tribunal Maharashtra Value Added Tax Act Maharashtra State Sales Tax Tribunal Maharashtra Value Added Tax Act Maharashtra State Sales Tax Tribunal Maharashtra Value Added Tax Act Maharashtra State Sales Tax Tribunal 8. The Company has accumulated losses at the end of the financial year and it has also incurred cash losses in the financial year under report as well as during the immediately preceding financial year. The accumulated losses at the end of the financial year under audit are not less than 50% of its net worth. 9. The Company has defaulted in payment of loans taken from banks. Also, the company''s loan accounts have been classified as Non- performing Assets by the lending bankers. The banks have issued Securitization Notice to the Company for recovery of its advances. The amount of default has been Rs.14.93 Crores for over a year. As regards borrowing from financial institutions, the definite terms of repayment of interest and principal have not been defined by the financial institutions. 10. As per information and the explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions. 11. The company has not availed any Term Loans as at the balance sheet date. 12. 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 done, during the year. For S S PURANIK & ASSOCIATES Chartered Accountants FRN 127731W Shripad S Puranik Mumbai Partner 30th May, 2015 M.Ship no. 030670