SEJAL GLASS LIMITED (A BSE & NSE LISTED COMPNAY)
SCAM OF RS. 133 CRORES
BY THE MANAGEMENT OF THE COMPANY

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The auditors of the company have also actively involved in the said fraudulent acts and they have erred and abetted the crime committed by the company, Sejal Glass Limited. The following auditors are involved in the fraud.


Internal Auditors upto 2014-15 Statutory Auditor upto 2014-15

M/s. SPP Associates
21, Akhurath, Plot No.11,
Sector 14, Sanpada,
Opp. Palm Beach Road,
Navi Mumbai – 400 705
Tel:+ 91-22-27812000

Mr. Shripad Sitaram Puranik
M/s. S S Puranik & Associates

R/10, Sicka Nagar,
V. P. Road, Girgaon,
Mumbai 400 004

Email: accounts@sspassociates.co.in
 
Internal Auditors upto 2015-16

Statutory Auditor upto 2015-16

Mr. Rakesh Parmar
M/s. Rakesh Parmar & Co.
35/300, Unnat Nagar 2, S. V. Road,
Opp. Ashoka Shopping Centre,
Goregaon (West), Mumbai 400 062
Tel: +91-22-28899338
Email: rakeshparmar.ca@gmail.com

Contact person: Mr. Rakesh Parmar

Mr. Deven Mehta
M/s. D. D. Mehta & Co.

108, Sujata Nitetan,
Rani Sati Road, Malad (East),
Mumbai – 400 097
Tel: +91-22-28814240
Email: caddmehta@gmail.com

Contact person : Mr. Deven Mehta
 

Internal Auditors upto 2016-17

Statutory Auditor upto 2016-17

Mr. Ushik Gala
M/s. Ushik Gala & Associates.

B/202, Hetal Arch,
Opp. Natraj Market,
S. V. Road, Malad (West),
Mumbai – 400 064.
Email: ushik.gala@gmail.com

Contact person: Mr. Ushik Gala

Mr. Motilal Jain
M/s. Motilal & Associates

304, Orchid Plaza,
Behind Gokul Shopping Centre,
Next to Platform No.8,
Off. S. V. Road,
Borivali (West), Mumbai – 400 092
Tel: +91-22-28642358
Email: motilalassociatess@gmail.com

 

M/s. S S Puranik & Associates - Statutory Auditor upto 2014-15 The Statutory Auditor, M/s. S S Puranik & Associates found GUILTY of professional misconduct falling within the meaning of Clauses (5) & (7) of Part I of Second Schedule to the Chartered Accountants Act, 1949 by the Disciplinary Committee of Institute of Chartered Accountant of India (ICAI) vide their letter dated 13.03.2020. The complaint was initiated by me in 2014.

The net action by the Disciplinary Committee of Institute of Chartered Accountant of India (ICAI) is nothing but the Three Years of suspension of the degree of M/s. S S Puranik & Associates.

The complaints against M/s. SPP Associates & M/s. Motilal and Associates are pending in the Institute of Chartered Accountants of India for the Prime Facia Opinion for the same fraudulent crime since 2016.

All these are nothing but unconditional support to the promoters/management of Sejal Glass Limited i.e. Amrut Gada, Mitesh Gada, Dhiraj Gada, Shantilal Gada, Mitesh Gada & Harsh Gada which resulted into a financial crime of Rs. 133 Crores. The Final opinion of ICAI itself confirms the same.

M/s. SSP & Associates – Internal Auditor upto 2014-15
Based on PRIMA FACIA OPINION, I initiated complaint against Internal Auditor M/s. SSP & Associates which is also pending in the Institute of Chartered Accountant of India (ICAI) since 2018.

I received answer from M/s. SSP & Associates was very unprofessional. In para – 2, M/s. SSP & Associates stated that “Our internal audit of the company was being covered the limited scope / limited areas as provided by the Audit committee and we submitted our report to them based on our coverage on quarterly basis”.

According to the statement passed by the Internal Auditor M/s. SSP & Associates that they are doing internal audit of Sejal Glass Limited in every quarter.

In the same, in para – 4, M/s. SSP & Associates stated that they wrote a letter dated 29/02/2016 mentioning “We regret to inform you of our inability to continue as Internal auditor of SEJAL GLASS LTD for the financial year 2015-16 i.e. financial year ended 31r March, 2016 mainly due to our preoccupation in other assignments”.

The above statement itself indicates that the Internal Auditor M/s. SSP & Associates never had a regular & proper audit of Sejal Glass Limited on quarterly basis as they claimed in para -2, because if the internal audit was conducted every quarter;

  • Why the letter was issued on 29/02/2016 for FY-2015-16. (in the last days of financial year)?
  • What about first three quarters internal audit?
  • M/s. SSP & Associates resigned for FY 2015-16 vide dated 29/02/2016, this simple means that according to the system & as you stated in your answer that internal audit is covered on quarterly basis, which absolutely false.
  • Should I consider that actually no proper internal audit was taken place in any of the financial quarters/years?

All these are nothing but unconditional support to the promoters/management of Sejal Glass Limited i.e. Amrut Gada, Mitesh Gada, Dhiraj Gada, Shantilal Gada, Mitesh Gada & Harsh Gada which resulted into a financial crime of Rs. 133 Crores.

M/s. Motilal & Associates – Statutory Auditor from 2016-17
Based on PRIMA FACIA OPINION, I initiated one more complaint against current Statutory Auditor M/s. Motilal & Associates which is also pending in the Institute of Chartered Accountant of India (ICAI) since 2018.

M/s. Motilal & Associates is one of the biggest culprit of this financial scam of Rs. 133 Crores because they are statutory auditor of M/s Sejal Financial Limited (100% owned group company of Mr. Amrut Gada, Mr. Mitesh Gada & their family) as well. (PDF-A-5)

 

 

The funflow of M/s. Sejal Finance Limited are as follows:

SEJAL FINANCE LIMITED - A defaulter group Company of Sejal Glass Limited

 

Detail of fund distribution which received from Sejal Glass Limited

 

 

Particulars

2015-16

 

Share Capital

    21,500,000

Reserve & Surplus

 

-27,284,618

Long Term Borrowings

 

104,541,171

 

Sejal Glass Limited – ICD

68,387,394

 
 

Prima Vista Lifestyle (P) Ltd

1,205,000

 
 

Sejal Shakti Realtors Ltd

28,650,600

 
 

Sejal International Ltd

2,654,400

 
 

Aegis Wealth & Insurance Advisors Ltd

186,000

 
 

Sejal Infra Projects (P) Ltd

200,000

 
 

Non current Investments

 

40,604,026

Long term Loans & Advances

 

7,597,856

Short term Loans & Advances given to :

 

53,822,746

 

Sejal Realty & Infrastructure Ltd

14,635,750

 
 

Sejal Glass Craft Pvt Ltd

146,000

 
 

Brizeal Realtors & Developers Pvt Ltd

1,800,000

 
 

Amrut Gada

6,232,500

 
 

Dhiraj Gada

1,374,000

 
 

Mitesh Gada

2,257,500

 
 

Shantilal S Gada

270,500

 

 

Shavjibjai Gada

4,085,000

 

 

Sejal Glass House

200,000

 

 

Investments

 

 

 

 

Sejal Glass Limited – Shares

 

15,904,046

 

Sejal Firebaan Glass Pvt Ltd – Shares

 

250,000

 

Sejal Realty & Infrastructure Ltd - Shares

 

17,825,000

 

Brizeal Realtors & Developers (P) Ltd

 

4,000,000

 

 

 

 

Revenue from operationsg  

 

0

Interest Income  

 

0

Finance costs  

 

0

Net Loss 

 

166,573

 

One can easily make out from he above data that Monies came from M/s. Sejal Glass Limited ( A NSE/BSE listed company) to M/s. Sejal Finance Limited (100% owned and controlled by Mr. Amrut Gada, Mr. Mitesh Gada & their family only) and from their monies transferred to Mr. Amrut Gada, Mr. Mitesh Gada, Mr, Dhiraj Gada, Mr. Shantilal Gada, Mr. Shavjibhai Gada & some other group companies 100% owned and controlled by Mr. Amrut Gada, Mr. Mitesh Gada & their family only.

Even investments were also made in Sejal Glass Limited & other 100% group companies only.

After my complaint to ICAI against M/s. Motilal & Associates only the fund were returned by the M/s Sejal Financial Limited to Sejal Glass Limited because I have clearly mentioned that M/s. Motilal & Associates was the Statutory Auditor of M/s. Sejal Glass Limited & M/s. Sejal Finance Limited as well.

 

The fund transferred from M/s. Sejal Glass Limited ( A NSE/BSE listed company) to Sejal Finance Limited (100% owned and controlled by Mr. Amrut Gada, Mr. Mitesh Gada & their family only) and from their monies transferred to Mr. Amrut Gada, Mr. Mitesh Gada, Mr, Dhiraj Gada, Mr. Shantilal Gada, Mr. Shavjibhai Gada & some other group companies 100% owned and controlled by Mr. Amrut Gada, Mr. Mitesh Gada & their family only. Even investments were also made in Sejal Glass Limited & other 100% group companies only.

M/s. Motilal & Associates knows these very well & the same facts were hidden with the mala fide intent by M/s. Motilal &Associates. M/s. Motilal & Associates failed to qualify the same facts in their audit report of Annual finance report of the companies, M/s. Sjeal Glass Limited & Ms/ Sejal Finance Limited. This activity is called Siphoning of Funds" of Minor Shareholders of M/s. Sejal Glass Limited.

 

M/s. Sejal Finance Limited also not having NBFC License from the Reserve Bank of India for such activities.

Though, the aforesaid fraudulent activities ought to have been notice and reflected in the balance sheet of the company. However, auditor knowingly and willing failed to perform their statutory duty and function as provided under section 148 of the Companies activities and other manner and thus, they facilitated commission of the crime by the company, Sejal Glass Limited. It would not out of place to mention herein that without collusion and connivance of the auditor of the company, it would not been possible for the company, Sejal Glass Limited to commit the offence. While committing the offence the company, Sejal Glass Limited seems to have manipulate the records of the company and forged and fabricated various documents and therefore, by their aforesaid activities  of omission and commission have caused wrongful loss to the company/shareholders and wrongful gains to themselves.

 

Collusion and connivance of the aforesaid company, Sejal Glass Limited can be clearly seen that none of the auditors have objected for aforesaid illegal transaction and instead, Mr. Amrut Gada & Mr. Mitesh Gada have got the money transferred to other entities and siphoned the funds and therefore, they kept mum and  in the process, edited and abetted with each other to commit the offence.

 

Here, one should also take a note that one of the reasons of “GUILTY” ordered by ICAI to M/s. S S Puranik & Associates is, a company cannot give any loan to a proprietorship firm/individual in any manner. The simple law is not followed by the M/s. S S Puranik & Associates in the case of M/s. Sejal Glass Limited. In M/s. Sejal Finance Limited the short-term loans given to Amrut Gada, Dhiraj Gada, Mitesh Gada, Shantilal Gada, Shavji Gada & Sejal Glass House (proprietorship firm of Mr. Amrut Gada).

 

Based on the above facts, I am saying that all the six Auditors are equally, rather more responsible of this financial crime of Rs. 133 Crores because they failed to perform their duty even after availing degree of Chartered Accountant from ICAI & professionally misconducted as per ICAI Acts.

 

M/s. Rakesh Parmar & Co., the Internal Auditor of FY 2015-16 must have appointed as internal auditor only after the resignation of M/s. SPP and Associates i.e. after 29/02/2016 for FY 2015-16 and very strange to know that M/s. Rakesh Parmar & Co resigned in the next year only. One can also understand that what level of audit must have taken place of all four quarters all together by M/s. Rakesh Parmar & Co.

According to my knowledge internal auditor must have the part of auditor committee M/s. SPP and Associates resigned for FY-2015-16 on 27/02/2016 and M/s. Rakesh Parmar & Co. must have appointed after 27/02/2016 then who represented as internal auditor of FY 2015-16 & what kind of observation had done in audit committee meeting without internal auditor.

M/s. D D Mehta & company, the Statutory Auditor of FY 2015-16, must qualify the above mentioned issue in the auditor report of FY 2015-16 along with the issue not raised by previous auditor M/s. S S Puranik & Associates. Why the issue was not cleared by the management for eleven months as this is public listed company & must comply with statutory requirements.

M/s. Ushik Gala & Associates also act like a joker of Gada family & keep mum on all the issues which affected to minor shareholder of Sejal Glass Limited for their personal benefits.

Above all facts can also be verified with the Annual Finance Reports submitted by the company in ROC. Which is available in the financial data section of this website also.

How the disqualified directors can appoint(s)/reappoint(s) themselves or the other in any manner? The appointments of all the internal/statutory auditors are illegal are punishable under IPC act & as per companies act 2013.

This is the biggest shameful incidence of ICAI as their six chartered accountant firms are involved in one scam, where thousand/lakhs of shareholders has lost their crores of rupees. Even after knowing the same fact ICAI is not performing their duty by not forwarding this scam to National Financial Reporting Authority (N F R A).

According to me ICAI should suspension of degree of all six chartered accountants firm for lifetime & High court should give him imprisonment of minimum of 10 years so in future the persons like these chartered accountant firms should not dare to occur such financial crime with the help of CHOR management like Mr. Amrut Gada & Mr. Mitesh Gada of Sejal Glass Limited.