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Notes to Accounts of Sejal Glass Ltd.

Mar 31, 2015

1 Corporate information

The Company is engaged in the business of manufacturing value added Glass in various forms viz. Tempering, Designing, Insulating and Laminated Glass and also engaged in Retail & wholesale trading in a wide range of home interior products and Electronic goods.

2.1 Investment in Un Quoted Securities

The company has invested in 4000 Equity Shares of Rs. 10 each fully paid for Rs. 50,00,000/- in Shakti Banquet Pvt. Ltd. The company has not received the audited financial statements for the year ended 31st March, 2015 and hence the fair value of shares cannot be estimated.

2.2 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

The Company is in the process of confirming with its suppliers regarding their status as Micro and Small Enterprises as defined under "Micro, Small and Medium Enterprises Development Act, 2006". Since the relevant information is presently not available, necessary disclosures relating to principal amount and interest paid /payable to Micro and Small Enterprises have not been made in these accounts.

2.3 Sundry Debtors, Loans and Advances and Sundry Creditors:

The balances of Sundry Debtors, Sundry Creditors, Inter-corporate Deposits and Loans and Advances have not been confirmed by some of the parties.

2.4 In the absence of convincing evidence assuring future taxable income, the company has not made provision for deferred tax asset.

3.5 Previous years figures are regrouped & rearranged wherever necessary.

3.2 Employee benefit plans

3.2.a Defined contribution plans

The Company makes Provident Fund contributions in respect of all the qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 1046180/- (Year ended 31 March, 2014 Rs. 1254864/-) for Provident Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

3.2.b Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

i. Gratuity

ii. Compensated Absences

The following table sets out the funded status of the defined benefit schemes and the amount recognised in the financial statements:

The discount rate is based on the prevailing market yields of Government of India securities as at the Balance Sheet date for the estimated term of the obligations.

The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, increments and other relevant factors.

The Expected Rate of Return on Plan Assets is based on expectations of the average long term rate of return expected on the investments of the fund during the estimated term of obligations.

3.3 Segment information

The Company has identified business segments as its primary segment and geographic segments as its secondary segment. Business segments are primarily Glass Processing Division and Retail Trading Division. Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable.The Company does not have geographical segments.


Mar 31, 2014

CORPORATE INFORMATION

The Company is engaged in the business of processing of value added Glass in various forms viz. Tempering, Designing, Insulating and Laminated Glass. The Company also has Trading and Retail division offering a wide range of home interior products and Electronic goods.

The Company has during the year changed the name of the company from Sezal Glass Limited to Sejal Glass Limited vide Certificate of Incorporation dated 20th march, 2014

1 Investment in Un Quoted Securities

The company has invested in 4000 Equity Shares of Rs.10 each fully paid amounting to Rs.50,00,000/- in Shakti Banquet Pvt.Ltd. The company has not received the audited financial statements from the year ended 31st March, 2014 and hence the fair value of shares cannot be estimated.

(Amount in Rs.) As at As at 31st March, 2014 31st March, 2013

2 Contingent liabilities and commitments (to the extent not provided for)

(i) (i) Contingent liabilities

(a) Claims by Larsen & Toubro 10,039,726 10,039,726 Limited against the Company not acknowledged as debt

(b) Guarantees executed in favour of

- Dakshin Gujrat Vij Company Ltd - -

- Administration of Dadra and - 3,625,000 Nagar Haveli Electricity Department

- Chalet Hotels Private Limited - 2,125,130

- The Indian Hotels Company - 7,337,339 Limited

- Saint Gobain Glass India Limited - 30,000,000

- Against advance received from 1,724,818 - a party

- Juniper Hotels Pvt Ltd

(ii) Customs duty payable for default 12,318,351 10,999,915 in completing export obligation against advance license

(iii) Export obligation under EPCG 52,768,656 21,004,730 licence availed

(iv) Claims by parties towards damages 5,893,917 5,893,917

(v) Penalty Demand by Income tax 19,142,004 12,684,631 Department

(vi) Penalty paid to GIDC under 13,972,689 13,972,689 protest

(vii) Penalty Demand by Sales 31,555,798 - tax Department

(viii) Interest and penalty 7,958,736 2,485,434 claimed by GIDC for Plot at Jagadia Industrial Area

Total 155,374,695 120,168,511

3.1 Employee benefit plans

3.1.a Defined contribution plans

The Company makes Provident Fund contributions in respect of all the qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 1229127/-(Year ended 31 March, 2013 Rs. 1712848/-) for Provident Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

4 Segment information

The Company has identified business segments as its primary segment and geographic segments as its secondary segment. Business segments are primarily Glass Processing Division and Retail Trading Division. Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable. The Company does not have geographical segments.


Mar 31, 2013

1 CORPORATE INFORMATION

The Company is engaged in the business of processing of value added Glass in various forms viz. Tempering, Designing, Insulating and Laminated Glass. The Company also has Trading and Retail division offering a wide range of home interior products and Electronic goods.

2.1 Temperory Diminution of Investment

The company has invested in Shares of Inventure Growth and Securities Limted as its Long Term Investment for Rs.3,77,06,280. The Market value of these Shares as on the reporting date is Rs.36,98,520. The reduction in the Share value is a Temperory diminution, which has resulted on account of the Market forces. The turnover and the profitability of the said company does not show any adverse impact which has resulted in the fall in the market price.

2.2 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

In the absence of data on suppliers falling under the category of Micro, Small and Medium Enterprises, the information regarding the transactions is not provided.

3.1 Employee benefit plans

3.1.a Defined contribution plans

The Company makes Provident Fund contributions in respect of all the qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 1712848/-(Previous Year Rs. 1841907) for Provident Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

3.1.b Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

i. Gratuity

ii. Compensated Absences

The following table sets out the funded status of the defined benefit schemes and the amount recognised in the financial statements:

3.2 Discontinuing operations

The Company did not have any discontinued operations during the year. However, during the year 2011-2012, pursuant to the approval of the Shareholders and other authorities as required, the Company has transferred the Float Glass Division at Bharuch to Saint Gobain Glass India Limited on a slump sale basis with effect from the close of business on 31st May, 2011. The Float Glass Division business was reported as part of Float Glass Division segment of the Company during the Previous Year 2011-12. The results of the discontinued business during the year 2011-2012 until discontinuation were as under:


Mar 31, 2012

1 Corporate information

The Company is engaged in the business of processing of value added Glass in various forms viz. Tempering, Designing, Insulating and Laminated Glass. The Company started manufacturing of Float Glass during the previous year. This activity was discontinued w.e.f 1st June, 2011. The Company also has Trading and Retail division offering a wide range of home interior products.

2.1 Monies received against share warrants

The Company at their Annual General Meeting held on 15th September, 2009 have resolved to create, offer, issue and allot up to 50,00,000 warrants, convertible into 50,00,000 equity shares of Rs.10/- each at a premium of Rs.30/- on a preferential allotment basis, in accordance with the SEBI Guidelines on preferential issue. Sub- sequent to the subdivision of face value of the Equity shares from Rs.10/- to Rs.1/- each, 50,00,000 warrants became 5,00,00,000 warrants of the face value of Rs.1/- each. The Promoters had opted to convert 3,55,00,000 warrants into Equity shares on various dates. As the Promoters did not exercise the option to convert the balance 145,00,000 warrants, the right to apply for Equity shares had lapsed on June 2, 2011 as per the terms of the issue. Accordingly, 145,00,000 warrants stand cancelled and consequently the entire amount received thereon from the warrant holders has been forfeited by the Company and transferred to General Reserve

As at 31st March, As at 31st March, 2012 2011

2.2 Contingent liabilities and commitments (to the extent not provided for)

(i) Contingent liabilities

(a) Claims by Larsen & Toubro Limited against the Company 10,039,726 42,500,000 not acknowledged as debt

(b) Guarantees executed in favor of

- Dakshin Gujrat Vij Company Ltd 20,171,000 -

- Gujarat Gas Company Limited - 117,613,684

- Quippo Energy Private Limited - 30,000,000

- Administration of Dadra and Nagar Haveli Electricity Department 3,625,000 3,625,000

- Parties against advance 15,000,000 10,625,938

(c) Other money for which the Company is contingently liable (give details)

(i)Claims by Gujarat Gas Company for Minimum Guaranteed - 1,023,088,698 Off take

(ii) Customs duty payable for default in completing export 12,382,672 15,986,329 obligation against advance license

(iii) Export obligation under EPCG license availed - US $ 29,119,996 4,228,138 3,94,202.06 @ Rs.50.875 = US $ including interest Rs.90,64,966 (Pre- vinous year US $ 93958.62 @ Rs. 45 = US $

(iv) Claims by parties towards damages 5,893,917 5,893,917

(v)Penalty Demand by Income tax Department 8,597,477 -

(vi) Penalty paid to GIDC under protest 13,972,689 -

(vi) Bank Charges debited to Unpaid dividend account - 51,555

Total 118,802,477 1,253,561,704



(ii) Commitments

(a) Estimated amount of contracts remaining to be executed - - on capital account and not provided for

Tangible assets 22,254,467 114,800,000





2.3 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 In the absence of data on suppliers falling under the category of Micro, Small and Medium Enterprises, the information regarding the transactions is not provided.

3.1 Employee benefit plans

3.1.a Defined contribution plans

The Company makes Provident Fund contributions in respect of all the qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs. 1841907/-(Year ended 31 March, 2011Rs. 3676268) for Provident Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

3.1.b Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

i. Gratuity

ii. Compensated Absences

The following table sets out the funded status of the defined benefit schemes and the amount recognized in the financial statements:

3.2 Segment information

The Company has identified business segments as its primary segment and geographic segments as its secondary segment. Business segments are primarily Processing Division, Float Glass Manufacturing Plant and Retail Division. Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallowable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallowable. The Company does not have geographical segments.

3.3 Discontinuing operations

During the year, pursuant to the approval of the Shareholders and other authorities as required, the Company has transferred the Float Glass Division at Barouche to Saint Gobain Glass India Limited on a slump sale basis with effect from the close of business on 31st May, 2011 for a consideration of Rs.686 crores less a Net Current Asset of Rs.23 crores. The Float Glass Division business has been reported as part of Float Glass Division segment of the Company. The results of the discontinued business during the year until discontinuation were as under:


Mar 31, 2011

1. a) The name of the company was changed from 'Sejal Architectural Glass Limited' to "SEZAL GLASS LIMITED" in terms of the special resolution passed at the Extra Ordinary General Meeting of the Shareholders of the Company held on May 15, 2010 and on

2. Contingent Liabilities :

Contingent liabilities not provided for in respect of receiving approval from the Company Law Board.

b) The shareholders of the company have, in an Extra Ordinary General Meeting held by the company, approved the subdivision of equity shares of the company of the face value of Rs.10/- per share to 10 shares of Re.1/- per share.

c) The Float Glass Manufacturing Plant at Jhagadia, Bharuch, has been capitalised effective June 01, 2010 after the Float Glass Production was stabilised.

d) The Company has revalued its Land and Buildings to project the actual value of its immoveable property as at 31st March, 2011. The resultant increase in its value as per the valuation report given by Mr. Shyam Agrawal, approved Government Valuer has been correspondingly credited to revaluation reserve which amounted to Rs. 72,47,97,837/- for Land and Rs. 90,21,03,161/- for Building aggregating to Rs. 162,69,00,998/-. Depreciation on the incremental value of Buildings has not been provided for as the same was accounted as of 31st March, 2011.

e) The Authorised Capital of the company has been increased from Rs.45 Crores to Rs.60 Crores during the year. However, the increase in Authorised Capital is yet to be communicated to the Registrar of Companies.

(Rs.) 2010-11 2009-10

Claims by Gujrat Gas Company for Minimum Guaranteed Off take 1,02,30,88,698 9,00,00,000

Bank Guarantees Outstanding 16,18,64,622 9,96,71,016

Customs duty payable for default in completing export obligation 1,59,86,329 80,20,538 against advance license - Processing Division

Customs duty payable for default in completing export obligation 42,28,138 Nil under EPCG - Processing Division (US $ 93,958.62 @ Rs. 45 = US $ 1)

Claims by parties towards damages 58,93,917 58,93,917

Claims by parties not acknowledged as debt 4,25,00,000 4,00,00,000

Income Tax Department demands Nil 20,35,473

Bank charges debited to unpaid Dividend A/c with bank 51,555 51,555

3. Disclosure Pursuant to Accounting Standard AS 15 (Revised):

Gratuity

The company has accounted employee benefits as per Accounting Standard 15 (Revised) on Employee Benefits (Revised) issued by the Institute of Chartered Accountants of India.

Presentation in Balance Sheet as per actuarial valuation as at March 31, 2011 Net Asset/(Liability) recognised in the balance sheet as at March 31, 2011

a) Discount Rate:

The discount rate is based on the prevailing market yields of Indian Government Securities as at the balance sheet date for the estimated term of the obligations.

b) Expected Rate of Return on Plan Assets :

This is based on our expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligations.

c) Salary Escalation Rate:

The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors.

4. Related Party Disclosures:

Disclosure as required by the Accounting Standard 18, "Related Party Disclosure" is given below:

a) Names of Related Parties and Nature of Relationship:

i) Subsidiary N.A.

ii) Key Management Personnel Wholetime Directors and relatives of the Key Management Personnel

with whom the Company had transactions

Key Management Personnel (Whole Time Directors) Relative of Key Management Personnel

Shri Amrrut S. Gada Shri Shavjjibhai V. Gada, Father

Smt. Diwaliben S. Gada, Mother Smt. Bhavna A. Gada, Wife

Shri Dhirraj S. Gada Shri Shavjjibhai V. Gada, Father

Smt. Diwaliben S. Gada, Mother Smt.Anju D. Gada, Wife

Shri Miitesh K. Gada Shri Kanji V. Gada, Father

Smt. Navalben K. Gada, Mother Smt. Preeti M. Gada, Wife

Shri Aashish D. Kariaa

iii) Entities over which Key Management Personnel [Wholetime Directors] are able to exercise significant influence:

Sezal Glass Craft Private Limited

Sezal International Limited

Sezal Insurance Broking Limited

Sezal Glass House

Sezal Realty and Infrastructure Limited

Sezal Finance Limited

Bhanu Cosmetics & Packaging Limited

Hero Paper Stores

Hero Multi Pap Private Limited

White Flag Media and Communications Limited

iv) Joint Venture - Sezal Firebaan Glass Private Limited

5. Events Occurring After the Balance Sheet Date:

The company is considering a possibility of transfer of its manufacturing units by way of sale, lease or otherwise. In order to take prior approval of shareholders for this major decision, the company opted for voting by Postal Ballot by the shareholders. The result of voting by Postal Ballot, after the Scrutinizers verify the ballot reports, shall be available on or after 28th May, 2011.

6. Balances of sundry debtors, advances and sundry creditors are subject to receipt of balance Confirmation letters.

7. The details of amounts due to Micro, Small and Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006, as per the information available with the company. Nil Nil

8. Previous year's figures have been regrouped / re-arranged wherever necessary to conform with the current year's classification.

 
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