Hindusthan National Glass & Industries Ltd Directors 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 at March 31 2020, the Statement of Profit & Loss (including the Statement of Other Comprehensive Income), the Statement of Cash Flow and the Statement of Changes in Equity for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as "the financial statements").

In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Qualified Opinion section of our report, the aforesaid financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2020 and loss (including comprehensive income), changes in equity and its cash flows for the year ended on that date.

Basis for Qualified Opinion

1. As stated in note no. 2.13.8 (D) of the financial statements, regarding adjustment of Rs 38,276.64 lakhs against outstanding loan balances, by the management relying on its internal calculation in absence of any proper documentation from the individual lenders.

2. We draw attention to the financial statements which indicate that the company has accumulated losses and its net worth has completely eroded, the company has incurred operating losses during the current year and in the earlier year(s), the companys current liabilities exceeds its current assets and the company is having a high debt-equity ratio (Debt being Rs. 244,501.66 lakhs and Equity being Rs. (12,471.77) lakhs) as at March 31, 2020, realizable value of assets is lower than amount payable to secured creditors, Earnings per Share is negative. In our opinion, based on the above, the company does not appear to be a going concern.

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for the financial year ended March 31, 2020. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Basis for Qualified Opinion section we have determined the matters described below to be the key audit matters to be communicated through our report.

We have fulfilled the responsibilities described in the Auditors responsibilities for the audit of the financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our qualified opinion on the accompanying financial statements.

Key Audit Matter Auditors Response
1. Adoption of Ind AS 116 - Leases Our audit procedures included considering the Companys 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 Companys 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 Companys 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 managements 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. 45,540.34 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 Companys Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Boards Report including Annexures to Boards Report, Business Responsibility Report, Corporate Governance and Shareholders Information, but does not include financial statements and our auditors report thereon.

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

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

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

Managements Responsibility for the Financial Statements

The Companys Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are also responsible for overseeing the Companys financial reporting process.

Auditors Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

a. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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

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

d. Conclude on the appropriateness of managements use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the 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 auditors report. However, future events or conditions may cause the Company to cease to continue as a going concern.

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

Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.

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

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Report on Other Legal and Regulatory Requirements

1) As required by the Companies (Auditors report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the "Annexure A" a statement on the matters specified in paragraphs 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 best of 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 the Company so far as it appears from our examination of those books.

iii. The Balance Sheet, Statement of Profit & Loss (including other comprehensive income), Statement of Cash Flows and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.

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

v. The matter described in the Basis for Qualified Opinion paragraph above, in our opinion, 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 31, 2020 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2020 from being appointed as a director in terms of section 164(2) of the Act.

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

viii. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".

ix. With respect to the other matters to be included in the Auditors Report in accordance 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 explanations given to us, the sitting fees paid by the Company to its independent directors during the year 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) of the Act.

x. With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), in our opinion and to the best of our information and according to the explanations given to us:

i) Pending litigations (other than those already recognized in the accounts) having material impact on the financial position of the Company have been disclosed in the financial statements as required in terms of accounting standards and provisions of the Companies 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 for which there were any material foreseeable losses.

iii) There were no amounts which were required to be transferred to the Investor Education 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 Limited of even date)

i. In respect of the Companys fixed assets:

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

b) All property, plant & equipment have not been physically verified by the management during the year but there is a regular program of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. 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 our examination of the records of the Company, the title deeds of immovable properties of land and 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 units and in transit have been physically verified by the management at regular intervals during the year. In our opinion and according to the information and explanations given to us, the frequency of the verification is reasonable. The discrepancies noted on physical verification between the physical stock and the book records were not material to the extent verified.

iii. According to the information and explanations given to us, the Company has not granted any loans secured or unsecured to companies, firms, limited liability partnerships or parties covered in the register maintained under section 189 of the Act. Accordingly, paragraph 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, the Company has complied with the provisions of section 185 and 186 of the Act with respect to the investments, guarantees and security made.

v. The Company has not accepted deposits from public within the meaning of section 73 to 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 cost records under section 148(1) of the Act has not been prescribed and as such, paragraph 3(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 our examination of the books of account:

a) The Company has generally been regular in depositing to the appropriate authorities undisputed statutory dues including provident fund, employees state insurance, income tax, duty of customs, goods & service tax, cess and other statutory dues. No undisputed statutory dues as above were outstanding as at March 31, 2020 for a period of more 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 disputed dues of income tax, sales tax, service tax, duty of customs, duty of excise& value added tax, which have not been deposited and the forum where the dispute is pending as on March 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 explanation given to us, we are of the opinion that the company has defaulted in repayment of dues to financial institutions, banks and non-banking finance companies during the year and the period and amount of defaults are as hereunder. The amount payable to debenture holders is not due in the current financial year however, the company has defaulted in the payment of interest thereon.

a) The below table discloses the default of the company in repayment of term loans availed 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
Dec17 496.00 112.50 187.50 375.00

-

173.00

-

-

-
Mar18 1,996.00 112.50 187.50 440.00

-

173.00 1,587.58

-

-
Jun18 744.00 168.70 250.00 375.00

-

259.00

-

700.81 -
Sept18 2,244.00 168.70 250.00 472.50

-

259.00 3,015.44

-

-
Dec18 744.00 168.70 250.00 375.00 81.05 259.00

-

1,507.72 -
Mar19 2,244.00 168.70 250.00 472.50 156.25 259.00 3,015.44

-

-
June19 869.00 197.00 343.75 375.00 156.25 302.28 1,164.54 1,884.65 -
Sept19 2369.00 197.00 343.75 488.75 156.25 302.28 3,015.44

-

-
Dec19 869.00 197.00 343.75 375.00 156.25 302.28 3,015.44 1,884.65 13.50
March20 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 term loans 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
Nov17 98.66 80.23

-

-

-

-

-

-

-

Dec17 101.95 82.91 75.03 149.42 -

-

-

-

-

Jan18 101.95 82.91 83.06 149.42

-

-

-

-

-

Feb18 92.08 74.89 75.02 134.96

-

-

-

-

-

Mar18 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
Apr18 98.66 80.23 80.38 130.14 679.10 73.22 114.55

-

-

May18 101.95 82.91 83.06 134.48 701.73 75.65

-

-

-

Jun18 98.66 80.23 80.38 130.14 679.10 73.22 349.52 62.60 194.77
Jul18 101.95 82.91 83.06 134.48 701.73 75.66 132.97

-

-

Aug18 101.95 82.91 83.06 134.48 701.73 75.66

-

-

-

Sept18 98.66 80.23 80.38 130.14 679.10 73.21 344.71 62.60 193.92
Oct18 101.95 82.91 83.06 134.48 701.73 75.66 135.22

-

-

Nov18 98.66 80.23 80.38 130.14 679.10 73.21

-

-

-

Dec18 101.95 82.91 83.06 134.48 701.73 75.66 348.25 63.29 202.42
Jan19 101.95 82.91 83.06 134.48 701.73 75.65 136.98

-

-

Feb19 92.08 74.89 75.02 121.46 633.82 68.33

-

-

-

Mar19 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

-

-

-
June19 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

-

-
Sept19 98.67 80.24 72.34 130.14 679.09 73.22 322.51 48.53 182.32
Oct19 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

-

Dec19 91.76 82.91 72.89 134.48 701.73 75.66 302.01 47.28 171.31
Jan20 91.76 82.91 72.89 134.48 701.73 68.09 130.10

-

Feb20 85.84 77.57 68.19 125.80 656.46 63.70

-

March20 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 on working 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
Nov17 54.24 27.12 - - - - - -
Dec17 56.05 28.02 42.04 30.78 - - - -
Jan 18 56.05 28.02 42.04 30.78 - - - -
Feb18 50.63 25.31 37.96 28.61 - - - -
Mar18 56.05 28.02 42.04 30.78 12.37 28.02 195.96 37.83
Apr18 54.24 27.12 40.68 29.73 24.89 27.12 198.23 36.61
May18 56.05 28.02 42.04 30.78 26.74 28.02 209.12 37.83
Jun18 54.24 27.12 40.68 29.73 25.88 27.12 202.27 36.61
Jul18 56.05 28.02 42.04 30.78 19.53 28.02 208.00 37.83
Aug18 56.05 28.02 42.04 30.78 19.53 28.02 208.00 37.83
Sept18 54.24 27.12 40.68 29.73 18.45 27.12 201.00 36.61
Oct18 56.05 28.02 42.04 30.78 19.53 28.02 208.00 37.83
Nov18 54.24 27.12 40.68 29.73 18.45 27.12 202.00 36.61
Dec18 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
Feb19 50.63 25.31 34.96 28.61 17.27 25.32 187.56 34.17
Mar19 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
June19 36.90 15.39 36.67 12.85 16.47 22.86 85.18 23.73
July19 61.85 28.24 37.83 13.28 16.85 36.37 87.82 26.24
Aug19 61.85 28.24 37.83 13.28 16.85 36.37 87.51 26.24
Sept19 59.72 27.24 36.58 12.72 16.04 35.17 83.99 25.31
Oct19 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
Dec19 51.89 25.41 36.87 8.28 17.28 35.58 66.34 23.45
Jan20 51.89 25.41 36.87 8.28 19.84 35.58 66.34 21.11
Feb20 48.54 23.77 34.49 7.74 18.56 33.19 62.06 19.74
March20 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 on March 31, 2020:

Months HDFC Bank Syndicate Bank Axis Bank DBS Bank Limited Bank of Baroda
NOV17 1,263.77 267.19 - - -
DEC17 174.24 310.12 - - -
JAN18 337.34 161.49 - - -
FEB18 220.56 364.11 - - -
MAR18 296.01 64.80 11.19 - -
APRIL18 153.72 25.19 - 289.19 -
May18

-

- 254.18 805.59 -
JUNE18 - - 72.20 283.61 15.91
JULY18 - - 7.80 - 584.46
AUG18 - - - - 610.58
SEPT18 - - - - 215.76

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

Particulars Feb18 Nov 18 Feb19 Nov19 Feb20
Life Corporation of India 1,040.00 1,040.00 1,040.00 1,040.00 1,040.00

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

x. During the course of our examination of books of account carried out in accordance with generally accepted auditing practices in India, we have neither come across any incidence of material fraud by the Company or on the Company by its officers or employees nor have we been informed of any such cases by the management.

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

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

xiii. In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 177 and 188 of the Companies Act, 2013 where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements as required by the applicable accounting standards.

xiv. During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly paid convertible debentures and hence reporting under 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 us, during the year the Company has not entered into any non-cash transactions with its Directors or persons connected to its directors and hence provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.

xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable 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 Regulatory Requirements 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 under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls with reference to financial statement of Hindusthan National Glass & Industries Ltd. ("the Company") as of March 31, 2020 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Board of Directors of the company is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to respective companys policies , the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors Responsibility

Our responsibility is to express an opinion on the internal financial controls with reference to financial statement based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statement was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system with reference to financial statement and their operating effectiveness. Our audit of internal financial controls with reference to financial statement included obtaining an understanding of internal financial controls with reference to financial statement, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companys internal financial controls system with reference to financial statement.

Meaning of Internal Financial Controls Over Financial Reporting

A companys internal financial control with reference to financial statement is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial control with reference to financial statement includes those policies and procedures that pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys 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 to financial statement, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control with reference to financial statement may become inadequate because of changes in conditions, or 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 the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system with reference to financial statement and such internal financial controls with reference to financial statement were operating effectively as at March 31, 2020, based on the internal control with reference to financial statement criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute 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