Excel Glasses Ltd.
|BSE: 502223||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE664C01029|
|BSE 05:30 | 01 Jan||Excel Glasses Ltd|
|NSE 05:30 | 01 Jan||Excel Glasses Ltd|
|BSE: 502223||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE664C01029|
|BSE 05:30 | 01 Jan||Excel Glasses Ltd|
|NSE 05:30 | 01 Jan||Excel Glasses Ltd|
The Members of
EXCEL GLASSES LTD
1. Report on the Financial Statements
We have audited the accompanying financial statements of EXCEL GLASSES LTD ("theCompany") which comprise the Balance Sheet as at 31st March 2017 thestatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
2. Management's Responsibilities for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 ["the Act"] with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
3. Auditor's Responsibility
1. Our responsibility is to express an opinion on these financial statements based onour audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made there under.
2. We conducted our audit in accordance with the Standards on Auditing specified underSection 143 (10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
3. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances.
4. An audit also includes evaluating the appropriateness of the accounting policiesused and the reasonableness of the accounting estimates made by the Company's Directorsas well as evaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
4. Basis for Disclaimer of Opinion:
The following are the Basis for Disclaimer of Opinion
(i) Attention is invited to Note No 41 regarding compilation of accountingdetails/information on the basis of records available at the company on best efforts basisdue to suspended activities in the Company .As a result of these matters we were unableto determine whether any adjustments might have been found necessary in respect of thestate of affairs as well as the loss reported by the Company
(ii) We were not able to verify physical inventories as well as the valuation ofinventories declared in the statement due to the limitation placed on scope of our audit;
(iii) We were not able to form an opinion on the realizable value of Trade Receivablesas well as to confirm its existence since the management is not able to produce theconfirmations in respect of Trade Receivables;
(iv) We were not able to form an opinion on the realizable value of Short Term Loans& Advances as well as to confirm its existence since the management is not able toproduce the confirmations in respect of Short Term Loan & Advances;
5. Disclaimer of Opinion:
Because of the significance of the matters described in the Basis for Disclaimer ofOpinion paragraph we have not been able to obtain sufficient appropriate audit evidenceto provide a basis for an audit opinion. Accordingly we do not express an opinion inrespect of the above mentioned points.
6. Basis for Qualified Opinion;
The following are the Basis for Qualified Opinion
(i) The accumulated losses of the Company have exceeded its entire net worth and becamea Sick Industrial Company within the meaning of the Sick Industrial Companies [SpecialProvisions] Act 1985. The accounts have however been prepared by the management on aGoing Concern' basis. This being a technical matter and in view of uncertainties andother facts and circumstances of the case as discussed elsewhere in the report we areunable to express an opinion as to whether the Company can now operate as a Going Concern.However should the Company be unable to continue as a Going Concern the extent of theeffect of the resultant adjustment on the net worth of the Company as at the year end andloss of the year as explained by the management is presently not ascertainable; [ReferNote No.25]
(ii) No provision for Gratuity has been made during the period under Audit.
(iii) One of the Creditor having registration under The Micro Small and MediumEnterprises Development Act 2006 has directly informed us about their bill outstandingamounted to ' 2.87 Lacs as on 31st March 2016 the same were not disclosedseparately as required under Schedule III of the Act. [Refer Note No. 7]
(iv) The Company has not provided Depreciation as per Act. [Refer Clause d of Note No.1.3 to Notes to Financial Statement]
We are unable to determine the financial impact of the above qualifications in points(i) to (iv) in the absence of appropriate details
7. Qualified Opinion:
In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion paragraph the aforesaid financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the AS of the financialposition of the Company as at 31 March 2017 and its financial performance includingother comprehensive income its cash flows and the changes in equity for the year ended onthat date.
8. Emphasis of Matter
(i) Attention is invited to Notes No. 32 regarding pending reconciliation and/orconfirmations of accounts of Trade Receivables Trade Payables secured loans unsecuredloans banks and loans and advances given;
(ii) Attention is invited to Note No. 26 (a) regarding the matter that the compilationof accounting details/ information on the basis of records available on the best effortbasis due to closure of its operations w.e.f 27th December 2012.
(iii) Attention is invited to Note No. 26 (b) regarding non provisioning of wagessalary etc.
Our opinion is not qualified in respect of this matter.
9. Report on Other Legal & Regulatory Requirements
As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act we give in the Annexure A' a statement on the matters specified inparagraphs 3 and 4 of the said 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 to the extentavailable which to the best of our knowledge and belief were necessary for thepurpose of our audit;
b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;
c) The Balance Sheet Statement of Profit & Loss and Cash Flow Statement dealt withby this report are in agreement with books of account;
d) Except for the effects of the matter described in Basis of Disclaimer of OpinionParagraph Basis of Qualified Opinion and Emphasis of Matter Paragraph the BalanceSheet and Statement of Profit and Loss and Cash Flow Statement dealt with by this reportcomply with the Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014;
e) On the basis of written representations received from the Directors as on 31stMarch 2017 and taken on record by the Board of Directors none of the directors of theCompany are disqualified as on 31st March 2017 from being appointed as adirector as in terms of Section 164 (2) of the Companies Act 2013.
f) With respect to the adequacy of the Internal Financials Controls over FinancialReporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B" and
g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i) The financial statements disclose the impact of pending litigations on thefinancials positions of the Company - Refer Note No. 23 to the financial statements.
ii) The company does not have any long-term contracts requiring a provision formaterial foreseeable losses.
iii) The company does not have any amounts required to be transferred to the InvestorEducation and Protection Fund.
iv) the Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8 November2016 to 30 December 2016 and these are in accordance with the books of accountsmaintained by the Company. Refer Note No 33 to the financial statements.
Annexure A' to the Independent Auditors' Report
The Annexure refers to in Independent Auditor's Report to the members of the Company onthe Financial Statements for the year ended 31st March 2017 we report that
1. a) The Company is in the process of updating its fixed assets records to show fullparticulars including quantitative details and situation of fixed assets.
b) Fixed assets have not been physically verified by the management during the yearsince the Company has closed its operations w.e.f 27th December 2012.
c) We are unable to express an opinion on whether the title deeds of the immovableproperties of the Company are held in its name since the same were not available to usfor the purposes of the audit.
2. In our opinion and according to the information & explanations provided to usno inventory has been physically verified by the management at reasonable intervals. Weare unable to express an opinion with regard to discrepancies if any which may arise onphysical verification of the inventories in respect of quantity usability/realisabilitybook value and other details of the inventories of the Company since no physicalverification has been done during the year under audit.
3. The Company has not granted any loan secured/unsecured to Companies firms LimitedLiability Partnerships or other parties covered in the register maintained u/s. 189 of theCompanies Act 2013. In view of this sub clause (a) & (b) of clause 3 are notapplicable
4. In our opinion and according to the information and explanations given to us theCompany has not granted any loan investments guarantees and securities to the partiescovered u/s. 185 and 186 of the Act.
5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit from the public during the year to which thedirectives issued by the Reserve Bank of India and the provisions of Section 73 to 76 orany other relevant provision of the Act and Rules framed there under are applicable.[Refer Note No. 24]
6. The Central Government vide Sec. 148 (1) of the Companies Act 2013 prescribedmaintenances of cost records for all listed companies engaged in manufacturing. In ouropinion the Company has not maintained the cost records for the products of the Companyas prescribed in the said rules since the Company has closed its operations w.e.f 27thDecember 2012.
7. a) In our opinion and according to the information and explanations given to ussince the Company were not operational w.e.f 27th December 2012 the Companyhas not remitted any statutory dues if applicable with the appropriate authorities vizProvident Fund Employees' State Insurance Professional Tax Service Tax Excise &Customs Duty Value Added Tax and other statutory dues during the year.
b) According to the information and records of the Company made available to us thedues outstanding in respect of Sales Tax/Custom Duty/Excise Duty/Cess which have not beendeposited on account of various disputes of the Company are as under:
8. In our opinion and according to the information and explanations given to us theCompany has defaulted in repayment of dues to financial institutions banks or debentureholders as on 31st March 2017 details whereof is given herein below:
9) The Company did not raise any money by way of Initial Public Offer or Further PublicOffer and Term Loans during the year. Accordingly Paragraph 3 (ix) of the Order is notapplicable.
10) In our opinion and according to the information and explanations given to us nomaterial fraud by the company or on the Company by its officers or employees has beennoticed or reported during the year that course of our audit.
11) In our opinion and according to the information and explanations given to us theCompany has not paid/ provided for any managerial remuneration during the year
12) In our opinion and according to the information and explanations given to us thecompany is not a Nidhi Company. Accordingly Paragraph 3 (xii) of the Order is notapplicable.
13) In our opinion and according to the information and explanations given to ustransactions with the related parties are in compliance with Section 177 and 188 of TheAct where applicable and details of such transactions have been disclosed in the FinancialStatements as required by the applicable Accounting Standards.
14) In our opinion and according to the information and explanations given to us theCompany has not raised any money by way of Private Placement/Preferential allotment ofshares/debentures.
15) In our opinion and according to the information and explanations given to us thecompany has not entered into any non-cash transactions with directors or persons connectedwith him. Accordingly Paragraph 3 (xv) of the Order is not applicable.
16) In our opinion and according to the information and explanations given to us thecompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934. Accordingly Paragraph 3 (xvi) of the Order is not applicable.
ANNEXURE B' TO THE AUDITOR'S REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Act
We have audited the internal financial controls over financial reporting of the Companyas of March 312017 in conjunction with our audit of the standalone financial statementsof the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of Internal FinancialReporting stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India [ICAI].These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion and best of our information and according to the explanations given tous since the Company is nonoperational w.e.f 27th December 2012 we are unableto form an opinion on the adequacy of internal financial controls system over financialreporting as at March 312017 based on the essential components of Internal FinancialReporting stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the ICAI.