You are here » Home » Companies » Company Overview » Excel Glasses Ltd

Excel Glasses Ltd.

BSE: 502223 Sector: Industrials
NSE: N.A. ISIN Code: INE664C01029
BSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN
PREVIOUS CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty
OPEN
CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty

Excel Glasses Ltd. (EXCELGLASSES) - Auditors Report

Company auditors report

To

The Members of

EXCEL GLASSES LTD

Report on the Standalone Financial Statements

1. We have audited the accompanying financial statements of EXCEL GLASSES LTD ("theCompany") which comprise the Balance Sheet as at 31st March 2015 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 Section134(5) of the Companies Act 2013 with respect to the preparation of these financialstatements that give a true and fair view of the financial position financial^performance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.Thisresponsibility also includes maintenance of - adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatementvyhether due to fraud or error.

3. Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

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.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances.

An audit also includes evaluating the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Company’s Directorsas well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

4. Basis for Disclaimer of Opinion:

The following are the Basis for Disclaimer of Opinion

(i) Management was unable to provide appropriate supporting documentation for themajority of the transactions selected for audit. We were unable to satisfyourselves by alternative means concerning the transactions in respect of expendituresincome assets & liabilities reported for the period under audit. As a result of thesematters we were unable to determine whether any adjustments might have been foundnecessary in respect of the State of affairs as well as the loss reported by the Company;

(ii) We were not able to verify all 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 the existence of debtors since the management is not able toproduce the confirmations in respect of Trade Receivables;

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 far exceeded its entire net worthand became a Sick Industrial Company within the meaning of the Sick Industrial Companies[Special Provisions] Act 1985. The accounts have however been prepared by themanagement on a ‘Going Concern' basis. This being a technical matter and in view ofuncertainties and other facts and circumstances of the case as discussed elsewhere in thereport we are unable to express an opinion as to whether the Company can now operate as aGoing Concern. However should the Company be unable to continue as a Going Concern theextent of the effect of the resultant adjustment on the net worth of the Company as at theyear end and loss of the year as explained by the management is presently notascertainable; [Refer Note No.25]

(ii) In accordance with the consistent practice being followed by the Companyprevision has been made in respect of estimated total liability for future payment ofGratuity on accrual basis as against on actuarial basis which is not in compliance withthe Accounting Standard 15 - "Employee Benefits" (Refer Note No. 1.6 (ii) ofAnnexurel).

(iii) One of the Creditor having registration underThe Micro Small and MediumEnterprises Development Act 2006 has directly informed us about their bill outstandingamounted to Rs. 2.78 Lacs as on 31st March 2014 the same were not disclosed separately asrequired under Revised Schedule VI of the Companies Act 1956. [Refer Note No. 7]

(iv) The Company has not provided Depreciation as perThe Companies Act 2013

We are unable to determine the financial impact of the above qualifications in points(i) to (iii) in the absence of appropriate details

7. Qualified Opinion:

In our opinion and to the best of our information and according to theexplanations given to us except for the effects of the matter described in the Basis forQualified Opinion paragraph the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity 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 March312015;

b) in the case of the Statement of Profit and Loss of the Loss of the Company for theyear ended on that date; and

c) in the case of the Cash Flow Statement of the cash flows of the Company for theyear ended on that date.

8. Emphasis of Matter

(i) Attention is invited to Notes No. 32 regarding pending reconciliation and / orconfirmations of accounts of sundry debtors sundry creditors secured loans unsecuredloans banks and loans and advances given;

(iii) Attention is invited to Note No. 26(a) regarding the matter that the compilationof accounting details/ information on the basis of records available on foe best effortbasis due to closure of its operations w.e.f 27th December 2012.

(iv) Attention is invited to Note No. 26(b) regarding non provisioning of wages salaryetc.

(v) Attention is invited to clause (d) of Note No. 1.3 to Notes to Financial Statementregarding Non Provision of Depreciation in the accounts of the Company since it has closedoperations w. e. f27th December2012.

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 2015 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act we give in the Annexure-5 a statement on the matters specified inparagraphs 3 and 4 of the said Order to the extent applicable.

1. As required by section 143 (3) of the Act we report that:

a) We have obtained all the information and explanations to the extent availablewhich to the best of our knowledge and belief were necessary forthe purpose of ouraudit;

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 Balance Sheet and Statement of Profit and Loss and CashFlow Statement dealt with by this report comply with the Accounting Standards specifiedunder 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 31st March2015 and taken on record by the Board of Directors none of the directors of the Companyare disqualified as on 31st March 2015 from being appointed as a director as in terms ofSection 164 (2) of the Companies Act 2013.

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.

For Balakrishnan & Co.

Chartered Accountants FRN:011890S

CA.Balakrishnan. M F.C.A

(Partner) Membership No: 218798

Place .Kochi-20 Date :30th May 2015

Annexure-5 to the Independent Auditors’ Report

(Referred to in paragraph 13 under ‘Report on Other legal and RegulatoryRequirements’section of our report attached)

In terms of Companies (Auditor's Report) Order 2015 issued by Central Government ofIndia in terms of section 143(11) of The Companies Act 2013 we further report on thematters specified in paragraph 3 and 4 of the said Order that:

1. In respect of Fixed Assets

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.

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. As informed to usthe programme is such that all the fixed assets will get physically verified in five yearstime. In our opinion the same is reasonable having regard to the size of the Company andnature of its fixed assets. No material discrepancies were noticed on such verification.

2. In respect of Inventories

a. No inventory has been physically verified by the management at reasonable intervalsduring the year.

b. Since no inventories has been physically verified we are unable to comment on theadequacy in procedures on verification of Inventory.

c. In our opinion and accordingly to the information and explanations given to us theCompany is not able to maintain proper records of inventory. Since no inventories has beenphysically verified no discrepancies were noticed.

3. Based on the information and explanations given to us the Company has not grantedany loan secured / unsecured to Companies firms or other parties covered in the registermaintained u/s. 189 of the Companies Act 2013. In view of this sub clause (a) & (b)of clause 3 are not applicable

4. In our opinion and according to the information and explanations given to usinternal control system needs to be strengthened further to make it commensurate with thesize of the Company and nature of its business for the purchase of inventory and fixedassets and for the sale of goods and services.

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.

6. The Central Government vide Sec. 148 (1) of the Companies Act 2013 prescribedmaintenances of cost records for all listed companies engaged in manufacturing. TheCompany is not maintaining the cost records for the products of the Company as prescribedin the said rules.

7. In respect of undisputed statutory dues

a. The Company is not regular in depositing with the appropriate authorities theundisputed statutory dues viz Provident Fund Employees' State Insurance ProfessionalTax Service Tax Excise & Customs Duty Value Added Tax and other statutory dues withappropriate authorities during the year and there have been delays ranging between 1 to 3years the amounts whereof is presently not quantifiable in view of ongoingreconciliation.

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 notbeen deposited on account of various disputes of the Company are as under:

SI.No. Particulars O/SAmtin Lacs Period of Default
1 Defered SalesTax 925.80 Since Jan 2010
Total in Rs. 925.80

c. In our opinion and according to the information and explanations given to us noamount is required to transferred to Investor Education & Protection Fund by theCompany in accordance with the provisions of Companies Act 1956.

8. The Company’s accumulated losses as at 31 st March 2015 is more than 50% of itsnet worth. The Company has incurred cash losses during the financial year and in theimmediately preceding financial year. The accumulated losses of the Company have farexceeded its entire net worth and became a Sick Industrial Company within the meaning ofthe Sick Industrial Companies [Special Provisions] Act 1985.

9. 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 31 st March 2015 details whereof is given herein below:

Nature of Dues of Financial Institutions/ Banks Principal Outstanding Amount (Rs. In lacs) Period of Defaults
Term Lenders 1830.26 Since 2012

10. In our opinion and according to the information and explanations given to us theCompany has not given any guarantee for loans taken by others from any banks / financialinstitutions.

11. As informed to us the Company has not availed any term loan during the previousyear.

12. In our opinion and according to the information and explanations given to us nofraud on or by the Company has been noticed or reported during the year that causes thefinancial statements to be materially misstated.

For Balakrishnan & Co.

Chartered Accountants FRN: 011890S

CA.Balakrishnan. M F.C.A

(Partner) Membership No: 218798

Place: Kochi-20 Date :30th May 2015