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Hindusthan National Glass & Industries Ltd.

BSE: 515145 Sector: Industrials
NSE: HINDNATGLS ISIN Code: INE952A01022
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VOLUME 659
52-Week high 49.00
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P/E
Mkt Cap.(Rs cr) 223
Buy Price 24.05
Buy Qty 500.00
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Sell Qty 80.00

Hindusthan National Glass & Industries Ltd. (HINDNATGLS) - Auditors Report

Company auditors report

To the Members of HINDUSTHAN NATIONAL GLASS & INDUSTRIES LIMITED

Report on the Audit of the Financial Statements

Qualified Opinion

We have audited the accompanying financial statements of Hindusthan National Glass& Industries Limited ("the Company') which comprise the Balance Sheet as atMarch 31 2020 the Statement of Profit & Loss (including the Statement of OtherComprehensive Income) the Statement of Cash Flow and the Statement of Changes in Equityfor the year then ended and notes to the financial statements including a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas "the financial statements").

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 section of our report the aforesaid financial statements give the informationrequired by the Companies Act 2013 ("the Act") in the manner so required andgive a true and fair view in conformity with the Indian Accounting Standards prescribedunder section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended ("Ind AS") and other accounting principles generally acceptedin India of the state of affairs of the Company as at March 31 2020 and loss (includingcomprehensive income) changes in equity and its cash flows for the year ended on thatdate.

Basis for Qualified Opinion

1. As stated in note no. 2.13.8 (D) of the financial statements regarding adjustmentof Rs 38276.64 lakhs against outstanding loan balances by the management relying on itsinternal calculation in absence of any proper documentation from the individual lenders.

2. We draw attention to the financial statements which indicate that the company hasaccumulated losses and its net worth has completely eroded the company has incurredoperating losses during the current year and in the earlier year(s) the company's currentliabilities exceeds its current assets and the company is having a high debt-equity ratio(Debt being Rs. 244501.66 lakhs and Equity being Rs. (12471.77) lakhs) as at March 312020 realizable value of assets is lower than amount payable to secured creditorsEarnings per Share is negative. In our opinion based on the above the company does notappear to be a going concern.

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 (ICAI) together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules there under and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI's Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our qualified opinion on the financialstatements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements for the financial year ended March31 2020. These matters were addressed in the context of our audit of the financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. In addition to the matter described in the Basis forQualified Opinion section we have determined the matters described below to be the keyaudit matters to be communicated through our report.

We have fulfilled the responsibilities described in the Auditor's responsibilities forthe audit of the financial statements section of our report including in relation tothese matters. Accordingly our audit included the performance of procedures designed torespond to our assessment of the risks of material misstatement of the financialstatements. The results of our audit procedures including the procedures performed toaddress the matters below provide the basis for our qualified opinion on the accompanyingfinancial statements.

Key Audit Matter Auditor's Response
1. Adoption of Ind AS 116 - Leases Our audit procedures included considering the Company's accounting policies with respect to adoption of Ind AS 116
As described in the note no. 2.1.B.1 to the financial statements the company has adopted Ind AS 116 "Leases" in the current year. The application and transition to this accounting standard is complex and is an area of focus in our audit since the company has a number of contracts with different lease terms.
- Leases includes:
• Assessed and tested new processes and controls in respect of the lease accounting standard (Ind AS 116);
• Assessed the Company's evaluation on the identification of leases based on the contractual agreements and out knowledge of the business;
Ind AS 116 introduces a new lease accounting model wherein lessees are required to recognize a right-of-use (ROU) asset and a lease liability arising from a lease on the balance sheet. The lease liabilities are initially measured by discounting future lease payments during the lease term as per the contract/ arrangement. Adoption of the standard involves significant judgements and estimates including determination of the discount rates and the lease term.
• Upon transition as at 1st April 2019 evaluated the method of transition and related adjustments;
• On a sample basis we performed the following procedures:
• Assessed the key terms and conditions of the lease agreements entered by the company;
Additionally the standard mandates detailed disclosures in respect of transition. • Evaluating the calculation of the lease liability;
• Assessed and tested the presentation and disclosure relating to Ind AS 116 including disclosure relating to transition.
2. Valuation of inventories We have checked and analyzed the ageing of the inventories reviewed the historical trend on whether there were significant inventories written off or reversal of the allowances for inventories obsolescence. We conducted a detailed discussion with the Company's key management and considered their views on the adequacy of allowances for inventories obsolescence considering the current economic environment. We have also reviewed the subsequent selling prices in the ordinary course of business and compared against the carrying amounts of the inventories on a sampling basis at the reporting date. We found management's assessment of the allowance for inventory obsolescence to be reasonable based on available evidence.
We refer to Note 1.3 and 2.5 to the financial statements.
As at March 31 2020 the total carrying amount of inventories was Rs. 45540.34 lakhs. The assessment of impairment of inventories involves significant estimation uncertainty subjective assumptions and the application of significant judgment.
Reviews are made periodically by management on inventories for obsolescence and decline in net realizable value below cost. Allowances are recorded against the inventories for any such declines based on historical obsolescence and slow-moving history. Key factors considered include the nature of the stock its ageing shelf life and turnover rate.

Information other than the Financial Statements and Auditors' Report thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholders' Information but does notinclude financial statements and our auditors' report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance including othercomprehensive income cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Those charged with governance are also responsible for overseeing the Company'sfinancial reporting process.

Auditors' Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements.

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

a. Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

b. Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

c. Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

d. Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

e. Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

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.

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 Act we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order.

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

i. We have sought and obtained all the information and explanations which to the bestof our knowledge and belief are necessary for the purpose of our audit.

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 & Loss (including other comprehensiveincome) Statement of Cash Flows and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

iv. In our opinion except for the matter referred to in "Basis for QualifiedOpinion" section of our report the aforesaid financial statements comply with theaccounting standards specified under section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended from time to time.

v. The matter described in the Basis for Qualified Opinion paragraph above in ouropinion may have an adverse effect on the functioning of the Company.

vi. On the basis of written representations received from the Directors as on March 312020 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2020 from being appointed as a director in terms of section 164(2) of theAct.

vii. The qualification relating to the maintenance of accounts and other mattersconnected therewith is as stated in the Basis for Qualified Opinion paragraph above.

viii. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

ix. 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 sitting fees paid by the Company to its independent directors during theyear is in accordance with the provisions of section 197(5) read with Rule 4 of Companies(Appointment & Remuneration of the Managerial Personnel) Rule 2014 (as amended) ofthe Act.

x. 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 (as amended) inour opinion and to the best of our information and according to the explanations given tous:

i) Pending litigations (other than those already recognized in the accounts) havingmaterial impact on the financial position of the Company have been disclosed in thefinancial statements as required in terms of accounting standards and provisions of theCompanies Act 2013 - refer note no. 2.32.A of the financial statements.

ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year.

For Doshi Chatterjee Bagri & Co LLP For J K V S & CO
Chartered Accountants (Formerly Jitendra K Agarwal & Associates)
Firm Registration No. 325197E/E300020 Chartered Accountants
Firm Registration No.318086E
Chandi Prosad Bagchi

Abhishek Mohta

Partner

Partner

Membership No. 052626

Membership No.066653

UDIN: 20052626AAAAAG7072

UDIN: 20066653AAAABV9292

4th Floor Systron Building

5A Nandlal Jew Road

Plot J5 Block EP & GP

Kolkata - 26

Sector V Salt Lake Kolkata - 91

Date: 28th May 2020

Date: 28th May 2020

Annexure 'A' to the Independent Auditors' Report

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of our report to the Members of Hindusthan National Glass & Industries Limitedof even date)

i. In respect of the Company's fixed assets:

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant & equipments.

b) All property plant & equipment have not been physically verified by themanagement during the year but there is a regular program of verification which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. As informed to us no material discrepancies were noticed on such verifications.

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties of landand buildings are held in the name of the Company as at the balance sheet date.

ii. The inventories excluding inventories lying with third parties in few of the unitsand in transit have been physically verified by the management at regular intervals duringthe year. In our opinion and according to the information and explanations given to usthe frequency of the verification is reasonable. The discrepancies noted on physicalverification between the physical stock and the book records were not material to theextent verified.

iii. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms limited liability partnershipsor parties covered in the register maintained under section 189 of the Act. Accordinglyparagraph 3(iii) of the Order is not applicable to the Company.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respect tothe investments guarantees and security made.

v. The Company has not accepted deposits from public within the meaning of section 73to 76 of the Act and the Rules framed there under to the extent notified.

vi. According to the information and explanations given to us the maintenance of costrecords under section 148(1) of the Act has not been prescribed and as such paragraph3(vi) of the Order is not applicable to the Company.

vii. According to the information and explanations given to us and on the basis of ourexamination of the books of account:

a) The Company has generally been regular in depositing to the appropriate authoritiesundisputed statutory dues including provident fund employee's state insurance incometax duty of customs goods & service tax cess and other statutory dues. Noundisputed statutory dues as above were outstanding as at March 31 2020 for a period ofmore than six months from the date they became payable except for the following:

Name of the Statute Nature of the Dues Amount (Rs in lakhs) Period to which the amount relates Due Date Date of Payment Remarks if any
Income Tax Act 1961 Tax  Deducted at Source u/s 194A 124.90 June Quarter 2018 July 7 2018 NOT PAID The amount of TDS has not been paid by the Company on account of one time settlement entered with the lenders under which the entire interest cost shall be waived for the year
130.60 September Quarter 2018 October 10 2018
128.63 December Quarter 2018 January 7 2019
128.06 March Quarter 2019 April 7 2019
121.86 June Quarter 2019 July 7 2019
119.73 September Quarter 2019 October 7 2019

b) According to the information and explanation given to us the details of disputeddues of income tax sales tax service tax duty of customs duty of excise& valueadded tax which have not been deposited and the forum where the dispute is pending as onMarch 31 2020 are as under :-

Name of Statute Nature of Dues Amount (Rs in lakhs) Period to which the amount relates Forum where dispute is pending
256.25 2007-08 to 2009-10 Assistant Commissioner Central Excise
Finance Act 1994 Service Tax 4.81 2008-09 & 2009-10 Deputy Commissioner Central Excise
657.48 2006-07 to 2015-16 CESTAT
6.65 2010-11 Assistant Commissioner Central Excise
13.73 1993-97 Dy. Comm. Central Excise Puducherry
The Central Excise Act 1944 Excise Duty 94.05 2009-10 Commissioner of Excise Kol -IV
34.41 2008-09 to 2012-13 Commissioner Appeals -II
688.86 2002-03 to 2013-14 CESTAT
The Central Sales Tax (CST) 1956 Sales Tax 303.13 2008-09 to 2016-17 Sr. Joint Comm. of Commercial Tax Appeal
64.72 2006-07 JCST
The West Bengal Value Added Tax 2003 Sales Tax 404.62 2008-09 to 2016-17 Sr. Joint Comm. of Commercial Tax Appeal
104.38 2006-07 JCST
Maharashtra Value Added Tax 2005 VAT 114.00 2005-06 to 2006-07 Tribunal Maharashtra Sales Tax Mumbai
THE WBST ACT 1994 Sales Tax 55.14 2002-2003 Special Commissioner Commercial Taxes

viii. Based on our audit procedures and according to the information and explanationgiven to us we are of the opinion that the company has defaulted in repayment of dues tofinancial institutions banks and non-banking finance companies during the year and theperiod and amount of defaults are as hereunder. The amount payable to debenture holders isnot due in the current financial year however the company has defaulted in the payment ofinterest thereon.

a) The below table discloses the default of the company in repayment of term loansavailed by the Company:

Months State Bank of India HDFC Bank Syndicate Bank Axis Bank L&TFinance Edelweiss ARC Ltd. DBS Bank RABO Bank Exim Bank
Dec'17 496.00 112.50 187.50 375.00

-

173.00

-

-

-
Mar'18 1996.00 112.50 187.50 440.00

-

173.00 1587.58

-

-
Jun'18 744.00 168.70 250.00 375.00

-

259.00

-

700.81 -
Sept'18 2244.00 168.70 250.00 472.50

-

259.00 3015.44

-

-
Dec'18 744.00 168.70 250.00 375.00 81.05 259.00

-

1507.72 -
Mar'19 2244.00 168.70 250.00 472.50 156.25 259.00 3015.44

-

-
June'19 869.00 197.00 343.75 375.00 156.25 302.28 1164.54 1884.65 -
Sept'19 2369.00 197.00 343.75 488.75 156.25 302.28 3015.44

-

-
Dec'19 869.00 197.00 343.75 375.00 156.25 302.28 3015.44 1884.65 13.50
March'20 3494.00 197.00 343.75 488.75 156.25 302.28 - - 160.50

b) The below table discloses the default of the company in payment of interest on termloans availed by the Company:

Months HDFC Bank Syndicate Bank EXIM Bank Edelweiss ARC Ltd. State Bank of India Axis Bank DBS Bank L&T Finance RABO Bank
Nov'17 98.66 80.23

-

-

-

-

-

-

-

Dec'17 101.95 82.91 75.03 149.42 -

-

-

-

-

Jan'18 101.95 82.91 83.06 149.42

-

-

-

-

-

Feb'18 92.08 74.89 75.02 134.96

-

-

-

-

-

Mar'18 101.95 82.91 83.06 149.42 701.73 75.65 294.21 63.29 325.92

 

Months HDFC Bank Syndicate Bank EXIM Bank Edelweiss ARC Ltd. State Bank of India Axis Bank DBS Bank L&T Finance RABO Bank
Apr'18 98.66 80.23 80.38 130.14 679.10 73.22 114.55

-

-

May'18 101.95 82.91 83.06 134.48 701.73 75.65

-

-

-

Jun'18 98.66 80.23 80.38 130.14 679.10 73.22 349.52 62.60 194.77
Jul'18 101.95 82.91 83.06 134.48 701.73 75.66 132.97

-

-

Aug'18 101.95 82.91 83.06 134.48 701.73 75.66

-

-

-

Sept'18 98.66 80.23 80.38 130.14 679.10 73.21 344.71 62.60 193.92
Oct'18 101.95 82.91 83.06 134.48 701.73 75.66 135.22

-

-

Nov'18 98.66 80.23 80.38 130.14 679.10 73.21

-

-

-

Dec'18 101.95 82.91 83.06 134.48 701.73 75.66 348.25 63.29 202.42
Jan'19 101.95 82.91 83.06 134.48 701.73 75.65 136.98

-

-

Feb'19 92.08 74.89 75.02 121.46 633.82 68.33

-

-

-

Mar'19 101.95 82.91 76.21 134.48 701.73 75.65 373.36 51.23 202.25
Apr"19 98.67 80.24 72.40 130.14 679.09 73.22 160.55
Ma/19 101.95 82.91 74.82 134.48 701.73 75.66

-

-

-
June'19 98.67 80.24 72.40 130.14 679.09 73.22 358.36 48.02 217.66
Jul19 101.95 82.91 74.81 134.47 701.73 75.66 132.47

-

-
Aug19 101.95 82.91 74.81 134.47 701.73 75.66

-

-
Sept'19 98.67 80.24 72.34 130.14 679.09 73.22 322.51 48.53 182.32
Oct'19 91.76 82.91 72.89 134.48 701.73 75.66 125.09

-

Nov 19 88.80 80.24 70.54 130.14 679.09 73.22

-

Dec'19 91.76 82.91 72.89 134.48 701.73 75.66 302.01 47.28 171.31
Jan'20 91.76 82.91 72.89 134.48 701.73 68.09 130.10

-

Feb'20 85.84 77.57 68.19 125.80 656.46 63.70

-

March'20 91.76 82.91 72.89 134.48 701.73 68.09 312.92 46.77 177.69

c) The below table discloses the default of the company in payment of interest onworking capital loans availed by the Company:

Months HDFC Bank Syndicate Bank Standard Chartered Bank Edelweiss ARC Ltd. DBS Bank Bank of Baroda State Bank of India AXIS Bank
Nov'17 54.24 27.12 - - - - - -
Dec'17 56.05 28.02 42.04 30.78 - - - -
Jan' 18 56.05 28.02 42.04 30.78 - - - -
Feb'18 50.63 25.31 37.96 28.61 - - - -
Mar'18 56.05 28.02 42.04 30.78 12.37 28.02 195.96 37.83
Apr'18 54.24 27.12 40.68 29.73 24.89 27.12 198.23 36.61
May'18 56.05 28.02 42.04 30.78 26.74 28.02 209.12 37.83
Jun'18 54.24 27.12 40.68 29.73 25.88 27.12 202.27 36.61
Jul'18 56.05 28.02 42.04 30.78 19.53 28.02 208.00 37.83
Aug'18 56.05 28.02 42.04 30.78 19.53 28.02 208.00 37.83
Sept'18 54.24 27.12 40.68 29.73 18.45 27.12 201.00 36.61
Oct'18 56.05 28.02 42.04 30.78 19.53 28.02 208.00 37.83
Nov'18 54.24 27.12 40.68 29.73 18.45 27.12 202.00 36.61
Dec'18 56.05 28.02 42.04 30.78 19.53 28.02 208.00 37.83

 

Months HDFC Bank Syndicate Bank Standard Chartered Bank Edelweiss ARC Ltd. DBS Bank Bank of Baroda State Bank of India AXIS Bank
Jan' 19 56.05 28.02 42.04 30.78 19.11 28.02 207.66 37.84
Feb'19 50.63 25.31 34.96 28.61 17.27 25.32 187.56 34.17
Mar'19 41.17 17.96 38.70 16.09 2.45 24.33 107.38 26.70
Apr19 36.90 15.39 36.65 12.85 16.47 22.86 85.46 23.73
May19 38.13 15.91 37.86 13.28 17.01 23.63 88.26 24.52
June'19 36.90 15.39 36.67 12.85 16.47 22.86 85.18 23.73
July'19 61.85 28.24 37.83 13.28 16.85 36.37 87.82 26.24
Aug'19 61.85 28.24 37.83 13.28 16.85 36.37 87.51 26.24
Sept'19 59.72 27.24 36.58 12.72 16.04 35.17 83.99 25.31
Oct'19 51.89 25.41 36.87 8.28 16.36 35.58 66.34 23.45
Nov 19 50.22 24.59 35.68 8.01 16.19 34.44 64.20 22.69
Dec'19 51.89 25.41 36.87 8.28 17.28 35.58 66.34 23.45
Jan'20 51.89 25.41 36.87 8.28 19.84 35.58 66.34 21.11
Feb'20 48.54 23.77 34.49 7.74 18.56 33.19 62.06 19.74
March'20 51.89 25.41 36.87 8.28 19.84 35.00 66.34 21.11

d) The below table discloses the list of LC Bills not honored by the company as onMarch 31 2020:

Months HDFC Bank Syndicate Bank Axis Bank DBS Bank Limited Bank of Baroda
NOV'17 1263.77 267.19 - - -
DEC'17 174.24 310.12 - - -
JAN'18 337.34 161.49 - - -
FEB'18 220.56 364.11 - - -
MAR'18 296.01 64.80 11.19 - -
APRIL'18 153.72 25.19 - 289.19 -
May'18

-

- 254.18 805.59 -
JUNE'18 - - 72.20 283.61 15.91
JULY'18 - - 7.80 - 584.46
AUG'18 - - - - 610.58
SEPT'18 - - - - 215.76

e) The below table discloses the default of the company in payment of interest onDebentures availed by the Company:

Particulars Feb'18 Nov 18 Feb'19 Nov19 Feb'20
Life Corporation of India 1040.00 1040.00 1040.00 1040.00 1040.00

ix. The company did not raise any money by way of initial public offer or furtherpublic offer including debt instruments and term loan during the year.

x. During the course of our examination of books of account carried out in accordancewith generally accepted auditing practices in India we have neither come across anyincidence of material fraud by the Company or on the Company by its officers or employeesnor have we been informed of any such cases by the management.

xi. According to the information and explanations given to us and based on ourexamination of the records of the Company during the year the Company has not paid anyremuneration to the Chairman & Managing Director and Vice Chairman & ManagingDirector accordingly the provisions of section 197 of the Act read with Schedule V of theAct is not applicable on the Company.

xii. In our opinion and according to the information and explanation given to us theCompany is not a Nidhi Company and hence reporting under clause 3 (xii) of the Order isnot applicable to the Company.

xiii. In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

xiv. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly paid convertible debentures and hence reportingunder clause 3 (xiv) of the Order is not applicable to the Company.

xv. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsDirectors or persons connected to its directors and hence provisions of section 192 of theCompanies Act 2013 are not applicable to the Company.

xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the company.

For Doshi Chatterjee Bagri & Co LLP For J K V S & CO
Chartered Accountants (Formerly Jitendra K Agarwal & Associates)
Firm Registration No. 325197E/E300020 Chartered Accountants
Firm Registration No.318086E
Chandi Prosad Bagchi

Abhishek Mohta

Partner

Partner

Membership No. 052626

Membership No.066653

UDIN: 20052626AAAAAG7072

UDIN:20066653AAAABV9292

4th Floor Systron Building

5A Nandlal Jew Road

Plot J5 Block EP & GP

Kolkata - 26

Sector V Salt Lake Kolkata - 91

Date: 28th May 2020

Date: 28th May 2020

(Referred to in paragraph 2 (vi) under 'Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Hindusthan National Glass &Industries Ltd. of even date)

Report on the Internal Financial Controls with reference to financial statement underClause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls with reference to financial statementof Hindusthan National Glass & Industries Ltd. ("the Company") as of March31 2020 in conjunction with our audit of the financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India (ICAI). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to respective 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.

Auditors' Responsibility

Our responsibility is to express an opinion on the internal financial controls withreference to financial statement 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") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols with reference to financial statement was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system with reference to financial statement and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statement included obtaining an understanding of internal financial controlswith reference to financial statement assessing the risk that a material weakness existsand testing and evaluating the design and operating effectiveness of internal controlbased on the assessed risk. The procedures selected depend on the auditor's judgementincluding the assessment of the risks of material misstatement of the financialstatements 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 systemwith reference to financial statement.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control with reference to financial statement is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control withreference to financial statement includes those policies and procedures that pertain tothe maintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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.

Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls with reference tofinancial statement including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol with reference to financial statement may become inadequate because of changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem with reference to financial statement and such internal financial controls withreference to financial statement were operating effectively as at March 31 2020 based onthe internal control with reference to financial statement criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India (ICAI).

For Doshi Chatterjee Bagri & Co LLP For J K V S & CO
Chartered Accountants (Formerly Jitendra K Agarwal & Associates)
Firm Registration No. 325197E/E300020 Chartered Accountants
Firm Registration No.318086E
Chandi Prosad Bagchi

Abhishek Mohta

Partner

Partner

Membership No. 052626

Membership No.066653

UDIN: 20052626AAAAAG7072

UDIN:20066653AAAABV9292

4th Floor Systron Building

5A Nandlal Jew Road

Plot J5 Block EP & GP

Kolkata - 26

Sector V Salt Lake Kolkata - 91

Date: 28th May 2020

Date: 28th May 2020

   

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