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Excel Glasses Ltd.

BSE: 502223 Sector: Industrials
NSE: N.A. ISIN Code: INE664C01029
BSE 00:00 | 23 Feb Excel Glasses Ltd
NSE 05:30 | 01 Jan Excel Glasses Ltd
OPEN 0.96
PREVIOUS CLOSE 0.96
VOLUME 1000
52-Week high 0.96
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 0.96
CLOSE 0.96
VOLUME 1000
52-Week high 0.96
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Excel Glasses Ltd. (EXCELGLASSES) - Auditors Report

Company auditors report

To

The Resolution Professional of

EXCEL GLASSES LTD

I. Report on the Audit of the Standalone Financial

Statements

1. Qualified Opinion

A. We have audited the accompanying Standalone Financial Statements of EXCEL GLASSESLTD CIN : L26109KL1970PLC002289 (“the Company”) which.comprise theBalance Sheet as at 31st March 2019 and the Statement Of Profit And Loss the Statementof Changes in Equity and the Statement of Cash Flow for the year .ended on that dateNotes to the financial statements including a summary of significant accounting policiesand other explanatory information hereinafter referred to as “ the StandaloneFinancial Statements”)

B. In our opinion and to the best of our information and according to the explanationsgiven to usexcept for the possible effects of the matters described in the Basisfor Qualified Opinion section of our report the aforesaid financial statementsgive the information required by the Companies Act 2013 ( “the Act”) in themanner so required and give a true and fair view in conformity with the Indian AccountingStandards prescribed under Section 133 of the Act read with the Companies (IndainAccounting Standard) Rules 2015 as amended *( “Ind AS”) and other accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2019 and its profit and total Comprehensive income changes in equity and its cashflows for the year ended on that date.

2. 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 NCLT has ordered for the commencement of Corporate InsolvencyResolution Process (ClRP w.e.f March 272019. The accounts have however been preparedby the management on a ‘Going Concern' basis. This being a technical matter and inview of uncertainties and other facts and circumstances of the case as discussedelsewhere in the report we are unable to express an opinion as

to whether the Company can now operate as a Going Concern. However should the Companybe unable to continue as a Going Concern the extent of the effect of the resultantadjustment on the net worth of the Company as at the year end and loss of the year asexplained by the management is presently not ascertainable; [Refer Note No.323336]

(ii) No provision for Gratuity has been made during the period under Audit.

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

3. Emphasis of Matter

(i) Attention is invited to Notes No. 44 regarding pending reconciliation and / orconfirmations of accounts of Trade Receivables Trade Payables secured loans unsecuredloans loans and advances given;

(ii) Attention is invited to Note No. 37 (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. 37 (b) regarding non provisioning of wagessalary etc.

(iv) Attention is invited to Note No. 3 regarding the provisioning of depreciation asper The Companies Act 2013.

(v) Attention is invited to Note no :34 on Contingent Liabilities not accounted due tolitigations with tax departments and Note no:3940and 41 on litigation with variousparties the financial effect of which is not ascertained by the Management.

Our opinion is not qualified in respect of this matter

4. 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 below mentioned points.

5. Basis for Disclaimer of Opinion:

The following are the Basis for Disclaimer of Opinion

(i) Attention is invited to Note No 37 regarding compilation of accounting details /information on the basis of records available at the company on best efforts basis due tosuspended activities

in the Company .As a result of these matters we were unable to determine whether anyadjustments might have been found necessary in respect of the state of affairs as well asthe 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 ShortTerm Loans & Advances as well as to confirm its existence since the management is notable to produce the confirmations in respect of Short Term Loan & Advances;

(v) Attention is invited to Note no :30 where the profit of Rs.3.66 crs fullyrepresents write back of sundry balances and is not out of normal business of the company.

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143 (10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with' the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidences we have obtainedis sufficient and appropriate to provide a basis for our opinion.

6. Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

7. Responsibilities of Management and Those

Charged with Governance for the Standalone

Financial Statements

A. 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 and presentation 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 the IndianAccounting Standards prescribed under Section 133 of the Act read with the Companies(Indain Accounting Standard) Rules 2015 as amended ( “Ind AS”) and otheraccounting principles generally accepted in India. However pursuant to order issuedby Hon'ble National Company Law Tribunal (NCLT) Chennai Bench dated March 26 2019 thecompany is under Corporate insolvency Resolution Process (CIRP) with effect from March 272019 under Insolvency and Bankruptcy Code (IBC) 2016 and a Resolution Professional - (RP)is appointed by the Committee of Creditors under the provisions and for the purpose ofcompliance of IBC. The accompanying Standalone Financial Statements has been approved bythe RP along with Suspended Board of Directors in terms of provision of section 17 of theIBC 2016. . However the financial statements have been approved by the RP solely on thebasis of and on relying on the information and representation

given by the Suspended Board of Directors of the Company for the financialtransactions incurred before the date of CIRP commencement. The RP has approved the saidfinancials only to the limited extend of discharging the powers of the boards of Directorsof the Company which have been conferred upon him inter alia in- terms of provision ofsection 17 of the IBC 2016 and do not make any representations verification or issue anystatements in relations to the financial statements are true complete and accurate in allrespects.

B. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy

and completeness of the accounting records relevant to the preparation andpresentation of the Standalone Financial Statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.

C. In preparing the Standalone Financial Statements Management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors are responsible for overseeing

the Company's financial reporting process.

8. Auditor's Responsibilities for the Audit of the

Financial Statements

A. Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone Financial Statements.

B. As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

i. Identify and assess the risks of material misstatement of the Standalone FinancialStatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

ii. Obtain an understanding of internal control relevant to the audit in order todesign

audit procedures that are appropriate in the circumstances. Under section 143(3) (i) ofthe Act we are also responsible for expressing our opinion on whether the Company hasadequate Internal Financial Control system in place and the operating effectiveness ofsuch control.

iii. Evaluate the appropriateness of accounting

policies used and the reasonableness

of accounting estimates and related disclosures made by management.

iv. Conclude on the appropriateness of

management's use of the going concern basis of accounting and based on the auditevidence obtained whether a material

uncertainty exists related to events or conditions that may cast significant doubt onthe Company's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the Standalone Financial Statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

v. Evaluate the overall presentation structure and content of the Standalone FinancialStatements including the disclosures and whether the Standalone Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

C. Materiality is the magnitude of misstatements in the Standalone Financial Statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the Standalone Financial Statements may be influenced. Weconsider quantitative materiality and qualitative factors in

i. planning the scope of our audit work and in evaluating the results of our work; and

ii. to evaluate the effect of any identified misstatements in the Standalone FinancialStatements

D. We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including any

significant deficiencies in internal control that we identify during our audit.

E. We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

F. From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

II. Report on Other Legal and Regulatory Requirements

1. 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 Companies Act 2013 we give in “Annexure A” a statement on the matterspecified in paragraphs 3 and 4 of the said order to the extent applicable.

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

i. We have sought and obtained all the information and explanations to the extentavailable which is to the best of our knowledge and belief were necessary for the purposeof our audit of the aforesaid Standalone Financial Statements.

ii. 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.

iii. The Balance Sheet Statement of Profit and Loss and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.

iv. In our opinion the aforesaid Standalone Financial Statements comply with theAccounting Standards prescibed under

Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

v. On the basis of written representations received from the directors as on March 312019 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2019 from being appointed as a director in terms of Section 164(2) of theAct.

vi. With respect to the adequacy of the Internal Financial Controls with reference tothe Financial Statements of the Company and the operating effectiveness of such controlsrefer to our Separate Report in Annexure B”. Our report expresses an Modifiedopinion on the adequacy and operating effectiveness of the Companies Internal Financialwith reference to the Financial Statements.

vii. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

With respect to the other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended in ouropinion and to the best of our information and according to the explanations given to us:

i) the Company is under Corporate Insolvency Resolution and has various pendinglitigations which would impact its financial position and going concern status. (Refernote no:3233343940 and 41)

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 and co
Chartered Accountants
FRN:011890S
CA Balakrishnan M FCA DISA
(Partner)
Place: Ernakulam M.No:218798
Date :30.05.2019 UDIN: 19218798AAAAA06494

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