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Sejal Glass Ltd.

BSE: 532993 Sector: Industrials
NSE: SEJALLTD ISIN Code: INE955I01044
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OPEN 269.75
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VOLUME 1484
52-Week high 517.45
52-Week low 63.95
P/E
Mkt Cap.(Rs cr) 269
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sejal Glass Ltd. (SEJALLTD) - Auditors Report

Company auditors report

To the Members

SEJAL GLASS LIMITED

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of SEJAL GLASSLIMITED (the "Company") which comprise the Balance Sheet as at 31 March 2022the Statement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year ended on that date and asummary of significant accounting policies and other explanatory information (hereinafterreferred to as the "financial statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Companies Act 2013 (the "Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31 March 2022 and its profit (afterexceptional items) total comprehensive income changes in equity and its cash flows forthe year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance withthe Standards on Auditing ("SA"s) specified under section 143(10) of the Act.Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India ("ICAI") together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Emphasis of Matter

a) Post approval of resolution plan submitted by the Dilesh RoadlinesPrivate Limited & others (successful resolution applicants) by Committee of Creditorsin their meeting held on 6 November 2019 Hon'ble National Company Law Tribunal MumbaiBench (herein after referred as "NCLT") Mumbai Bench approved resolution planvide its order dated March 26 2021 (amended vide order dated June 7 2021). Theimplementation of above resolution plan is under progress.

b) The Management has given effect of resolution plan approved by NCLTwhereby certain liabilities were derecognised and assets were impaired / provided forbased on management assessment of its recoverability. Pursuant to this net exceptionalgain of Rs. 15018.41 Lakhs were recognised for the year ended 31st March 2022 (Refer noteno 29.11 to the financial statements).

Our opinion is not modified in respect of the above matters.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined the matters described below to be the key audit mattersto be communicated in our report.

 

NO. Key Audit Matter Auditor's Response
1 Implementation of Resolution and Accounting Impacts. Principal Audit Procedures Performed
Refer Note 18 29.1 29.5 29.11 29.12 to the financial statements for the details regarding commencement of implementation of the resolution plan and for it's impact of the resolution plan in the company pursuant to the corporate insolvency resolution process ("CIRP") under Insolvency and Bankruptcy Code 2016. We have performed the following procedures to determine whether the effect of Resolution Plan has been appropriately recognised in the financial statements:
The determination of carrying amount of liabilities to give effect of resolution plan comprehending the provisions of the Resolution Plan and determining the appropriateness of the accounting treatment thereof more particularly the accounting treatment of derecognition of liabilities and outstanding trading dues & its related provisions and impairment of various assets required significant judgment and estimates. Accounting for the effects of the resolution plan is considered by us to be a matter of most significance due to its importance to intended users' understanding of the financial statements as a whole and materiality thereof. Reviewed management's process for review and commencement of implementation of the Resolution Plan.
The Company was a party to certain litigations. Pursuant to the approval of the Resolution Plan it was determined that no amounts are payable in respect of those litigations as they stand extinguished. The estimates related to expected outcome of litigations and recoverability of payments made in respect thereof have high degree of inherent uncertainty due to insufficient judicial precedents in India in respect of disposal of litigations involving companies admitted to Corporate Insolvency Resolution Process. Reviewed the provisions of the Resolution Plan to understand the requirements of the said Plan and evaluated the possible impact of the same on the financial statements.
Verified the balances of liabilities as on the date of commencement of the corporate insolvency resolution process ("CIRP") from supporting documents and computations on a test check basis.
Verified the underlying documents supporting the receipt and payment of funds as per the Resolution Plan.
We have relied upon audited financial statements for the year ended 31.3.2021 audited by erstwhile statutory auditors for account balances.
Tested the related disclosures made in notes to the financial statements in respect of the implementation of the resolution plan.
Assessed management's estimate of recoverability.

Other Matter

The comparative audited annual financial statements for the year ended31 March 2021 have been audited by erstwhile statutory auditors KSPM & AssociatesChartered Accountants whose annual auditors report dated 30 June 2021 had expressedunmodified opinion on financial statements.

Information Other than the Financial Statements and Auditor's ReportThereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report CorporateGovernance and Shareholder's Information but does not include the financial statementsand our auditor's report thereon.

Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Responsibilities of Management for the Financial Statements

The Company's Board of Directors is responsible

for the matters stated in section 134(5) of the Act with respect to thepreparation of these financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income changes in equityand cash flows of the Company in accordance with the Ind AS and other accountingprinciples generally accepted in India. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements thatgive a true and fair view andare free from material misstatement whether due to fraud or error.

In preparing the 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 is 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 thefinancial 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 financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis 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.

• Obtain an understanding of internal financial control relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by the management.

• Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany'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 financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020 (the"Order") issued by the Central Government in terms of Section 143(11) of theAct we give in "Annexure A" a statement on the matters specified in paragraphs3 and 4 of the Order.

2. As required by Section 143(3) of the Act based on our audit wereport that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss including OtherComprehensive Income Statement of Changes in Equity and the Statement of Cash Flows dealtwith by this Report are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with theInd AS specified under Section 133 of the Act.

e) On the basis of the written representations received from thedirectors as on 31 March 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on 31 March 2022 from being appointed as a director in termsof Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.

g) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended inour opinion and to the best of our information and according to the explanations given tous the Company has not paid any remuneration to its directors during the year.

h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company does not have pending litigations which would haveimpact on its financial position as at the year end (refer Note No 29.1 to the financialstatements)

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

iii. The Company has failed to transfer the amount of unpaid dividendof Rs 0.97 lakhs to the Investor Education and Protection Fund due to attachment of unpaiddividend bank account by sales tax authorities.

iv. (a) The Management has represented that to the best of itsknowledge and belief no funds (which are material either individually or in theaggregate) have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the Company to or in any other person orentity including foreign entity ("Intermediaries") with the understandingwhether recorded in writing or otherwise that the Intermediary shall whether directlyor indirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provideany guarantee security or the like on behalf of the Ultimate Beneficiaries;

(b) The Management has represented that to the best of its knowledgeand belief no funds (which are material either individually or in the aggregate) havebeen received by the Company from any person or entity including foreign entity("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries;

(c) Based on the audit procedures that have been considered reasonableand appropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (i) and (ii) of Rule 11(e) as providedunder (a) and (b) above contain any material misstatement.

v. During the year Company has neither paid nor proposed any interimdividend or final dividend in accordance with section 123 of Companies Act 2013 hencethis clause is not applicable.

ANNEXURE 'A' TO THE INDEPENDENT AUDITOR'S REPORT (Referred to inparagraph 1 under 'Report on Other Legal and Regulatory Requirements' section of ourreport to the Members of Sejal Glass Limited of even date)

To the best of our information and according to the explanationsprovided to us by the Company and the books of account and records examined by us in thenormal course of audit we state that:

i. In respect of the Company's Property Plant and Equipment andIntangible Assets:

a) A. The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant andEquipment Capital Work-In-Progress and Investment Properties.

B. The Company does not have any intangible assets as at the year end.

b) The Company has a program of verification of property plant andequipment capital work in progress investment properties so to cover all the items onceevery 3 years which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. Pursuant to the program certain Property Plant andEquipment were due for verification during the year and were physically verified by theManagement during the year. No material discrepancies were noticed on such verificationwhich were not properly dealt with in the books of accounts in the current year.

c) Based on our examination of the copies of the Sale Deed / ConveyanceDeed / Transfer Deed land revenue records and communications with competent authoritiesprovided to us we report that the title in respect of self-constructed buildings andtitle deeds of all other immovable properties (other than properties where the company isthe lessee and the lease agreements are duly executed in favour of the lessee) disclosedin the financial statements included under Property Plant and Equipment and

Investment Property are held in the name of the Company as at thebalance sheet date.

d) The Company has not revalued any of its Property Plant andEquipment (including right of use assets) during the year.

e) On the basis of information provided by management no proceedingshave been initiated during the year or are pending against the Company as at 31 March 2022for holding any benami property under the Benami Transactions (Prohibition) Act 1988 (asamended in 2016) and rules made thereunder.

ii. a) The inventories have been physically verified by the managementduring the year. In our opinion the coverage and procedure of such verification bymanagement is appropriate. In our opinion and as explained to us there were no materialdiscrepancies of 10% or more in the aggregate for each class of inventory were noticed.

b) The Company does not have sanctioned working capital limits inexcess of Rs.5 crores in aggregate at any point of time during the year from banks orfinancial institutions on the basis of security of current assets and hence reportingunder clause 3(ii)(b) of the Order is not applicable.

iii. During the year the Company has not made any investments in orprovided any guarantee or security or granted any loans (including advances in the natureof loans) secured or unsecured to companies firms limited liability partnerships or anyother parties and hence reporting under clauses 3(iii)(a) 3(iii)(b) 3(iii)(c)3(iii)(d) 3(iii)(e) 3(iii)(f) are not applicable.

iv. The Company has not granted any loans or made investments orprovided any guarantees or securities during the year and hence compliance with Sections185 and 186 of the Companies Act 2013 is not applicable.

v. The Company has not accepted deposits or amounts which are deemed tobe deposits from the public during the year and hence the directives issued by the ReserveBank of India and the provision of section 73 to 76 any other relevant provisions of theAct and the Companies (Acceptance of Deposit) Rules 2015 with regards to the depositsaccepted from the public are not applicable.

vi. We have broadly reviewed the cost records maintained by the Companypursuant to the Companies (Cost Records and Audit) Rules 2014 prescribed by the CentralGovernment under Section 148(1) (d) of the Companies Act 2013 and are of the opinionthat prima facie the prescribed accounts and cost records have been maintained. We havehowever not made a detailed examination of the cost records with a view to determinewhether they are accurate or complete.

vii. a) According to the information and explanation given to us and onthe basis of our examination of the records of the Company amounts deducted / accrued inthe books of account in respect of undisputed statutory dues including provident fundemployees state insurance income tax sales tax goods and services tax duty of customsduty of excise value added tax cess and any other statutory dues have been regularlydeposited during the year with the appropriate authorities. According to the informationand explanations given to us no undisputed amounts payable in respect of the aforesaiddues were in arrears as at 31 March 2022 for a period of more than six months from thedate they became payable except those stated below:

Name of Statue Nature of dues Amount (Rs.in Lakhs) Period to which it relates Due Date Date of Payment Remarks if any
Income Tax Act 1961 Tax Deduction at Source (TDS) 1.26 FY 19-20 FY 20-21 Pre- CIRP period 7 April 2022
Employees' Provident Funds and Miscellaneous Provisions Act 1952 Provident Fund 20.12 Pre- CIRP period Pre- CIRP period Not paid The Company is in process of making payment of this amount as determined in resolution plan the earmarked amount is lying with the CIRP control account for the same.
Companies Act 2013 Unpaid Dividend 0.97 FY 06-07 FY 14-15 Not paid Attachment of unpaid dividend bank account by s a l e s t a x authorities

b) According to the information and explanation given to us there areno dues of provident fund employees state insurance income tax sales tax goods andservices tax duty of customs duty of excise value added tax cess and any otherstatutory dues that have not been deposited on account of any dispute. As mentioned innote no. 29.1 to the financial statements pursuant to the approval of resolution plan byNCLT there are no dues in respect of income tax sales tax service tax duty of customsduty of excise and value added tax that have not been deposited with the appropriateauthorities on account of any dispute.

viii. There were no transactions relating to previously unrecordedincome that have been surrendered or disclosed as income during the year in the taxassessments under the Income Tax Act 1961 (43 of 1961).

ix. a) The Company has not defaulted in repayment of dues or otherborrowings or in the payment of interest thereon to any lender during the year.

b) According to the information and explanation given to us and havingregard to the fact of implementation of resolution plan approved by NCLT is under processwe report that the during the year the Company not been declared wilful defaulter by anybank or financial institution or any other lender.

c) The Company has not availed any term loan during the year hencereporting under clause 3(ix)(c) of the Order is not applicable.

d) On an overall examination of the financial statements of theCompany no short-term funds have been utilised for long term purposes

e) The Company does not have any subsidiaries joint ventures orassociate companies as on 31 March 2022 and hence reporting under clause 3(ix)(e) is notapplicable.

f) The Company does not have any subsidiaries joint ventures orassociate companies as on 31 March 2022 and hence reporting under clause 3(ix)(f) is notapplicable.

x. a) The Company has not raised moneys by way of initial public offeror further public offer (including debt instruments) during the year and hence reportingunder clause 3(x)(a) of the Order is not applicable.

b) During the year the Company has made preferential allotment10000000 Equity Shares at face value of Rs. 10/- per Equity Share on Preferential basisto the Resolution Applicants (classified under Promoter/Promoter Group) in accordance withthe provisions of the approved Resolution Plan vide Order dated March 26 2021 passed byNCLT (Refer Note no 15 to the financial statements) and hence provisions of the CompaniesAct 2013 Companies (Prospectus and Allotment of Securities) Rules 2014 are notapplicable. On an overall examination of the balance sheet the funds raised have beenused for the purposes for which the funds were raised.

xi. a) According to the information and explanations given to us nomaterial fraud by the Company and no material fraud on the Company has been noticed orreported during the year.

b) As informed by the management no report under sub-section (12) ofsection 143 of the Companies Act has been filed in Form ADT- 4 as prescribed under rule 13of Companies (Audit and Auditors) Rules 2014 with the Central Government during the yearand upto the date of this report.

c) As represented to us by the management no whistle blower complaintswere received during the year.

xii. The Company is not a Nidhi Company and hence reporting underclause 3(xii) of the Order is not applicable.

xiii. In our opinion the Company is in compliance with Section 177 and188 of the Companies Act 2013 with respect to applicable transactions with the relatedparties and the details of related party transactions have been disclosed in the financialstatements as required by the applicable Indian Accounting Standards (Ind AS).

xiv. (a) In our opinion the Company has an adequate internal auditsystem commensurate with the size and the nature of its business.

(b) We have considered the internal audit reports for the year underaudit issued to the Company during the year and till date in determining the naturetiming and extent of our audit procedures.

xv. In our opinion and on the basis of explanation / informationprovided by management during the year the Company has not entered into any non-cashtransactions with its directors or persons connected with its directors and henceprovisions of section 192 of the Companies Act 2013 are not applicable to the Company.

xvi. (a) In our opinion the Company is not required to be registeredunder section 45-IA of the Reserve Bank of India Act 1934. Hence reporting under clause3(xvi)(a) (b) and (c) of the Order is not applicable.

(b) In our opinion there is no core investment company within theGroup (as defined in the Core Investment Companies (Reserve Bank) Directions 2016) andaccordingly reporting under clause 3(xvi)(d) of the Order is not applicable.

xvii. The Company has incurred cash losses during the financial yearcovered by our audit and in the immediately preceding financial year amounting to Rs.198.08 lakhs (without considering onetime exceptional gain of Rs 15018.41 lakhs pursuantto giving effect of resolution plan approved by NCLT) & Rs. 613.31 lakhs respectively.

xviii. We have taken into consideration reasons communicated byoutgoing statutory auditors during the year under review. No issues objections orconcerns were raised by outgoing auditors while resigning from its office.

xix. On the basis of the financial ratios ageing and expected dates ofrealisation of financial assets and payment of financial liabilities other informationaccompanying the financial statements taking into consideration implementation ofresolution plan by resolution applicants till date and our knowledge of the Board ofDirectors and Management plans and based on our examination of the evidence supporting theassumptions nothing has come to our attention which causes us to believe that anymaterial uncertainty exists as on the date of the audit report indicating that Company isnot capable of meeting its liabilities existing at the date of balance sheet as and whenthey fall due within a period of one year from the balance sheet date. We however statethat this is not an assurance as to the future viability of the Company. We further statethat our reporting is based on the facts up to the date of the audit report and we neithergive any guarantee nor any assurance that all liabilities falling due within a period ofone year from the balance sheet date will get discharged by the Company as and when theyfall due.

xx. As per section 135 of Companies Act 2013 the Company is notrequired to undertake any Corporate Social Responsibility (CSR) activities for the periodunder review hence reporting under clause 3(xx)(a) & (b) of the Order is notapplicable.

xxi. The Company is not required to prepare consolidated financialstatements and hence reporting under clause 3(xxi) of the Order is not applicable.

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2(f) under 'Report on Other Legal andRegulatory Requirements' section of our report to the Members of Sejal Glass Limited ofeven date)

Report on the Internal Financial Controls Over Financial Reportingunder Clause (i) of sub-section 3 of Section 143 of the Companies Act 2013 (the"Act")

We have audited the internal financial controls over financialreporting of SEJAL GLASS LIMITED (the "Company") as of 31 March 2022 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

The Management of the Company is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India (the"ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting of the Company based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") issued by the ICAI andthe Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting 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 overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting 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 over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2022 based on thecriteria for internal financial control over financial reporting 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 the ICAI.

For Gokhale & Sathe
Chartered Accountants
FRN: - 103264W
Sd/-
Tejas Parikh
Partner
Place: Mumbai Membership No. 123215
Date: May 11 2022 UDIN: - 22123215AJCWGE8076

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