You are here » Home » Companies » Company Overview » Haryana Leather Chemicals Ltd

Haryana Leather Chemicals Ltd.

BSE: 524080 Sector: Industrials
NSE: N.A. ISIN Code: INE681F01018
BSE 14:17 | 22 Jan 23.30 -0.20
(-0.85%)
OPEN

23.30

HIGH

23.30

LOW

23.30

NSE 05:30 | 01 Jan Haryana Leather Chemicals Ltd
OPEN 23.30
PREVIOUS CLOSE 23.50
VOLUME 400
52-Week high 29.65
52-Week low 18.05
P/E 3.95
Mkt Cap.(Rs cr) 11
Buy Price 24.65
Buy Qty 200.00
Sell Price 23.50
Sell Qty 500.00
OPEN 23.30
CLOSE 23.50
VOLUME 400
52-Week high 29.65
52-Week low 18.05
P/E 3.95
Mkt Cap.(Rs cr) 11
Buy Price 24.65
Buy Qty 200.00
Sell Price 23.50
Sell Qty 500.00

Haryana Leather Chemicals Ltd. (HARYANALEATHER) - Auditors Report

Company auditors report

To the Members of Haryana Leather Chemicals Limited

Report on the Audit of Financial Statements

1. We have audited the accompanying Standalone Ind AS Financial Statements of HARYANALEATHER CHEMICALS LIMITED ("the Company") which comprise the Balance Sheetas at 31st March 2019 the Statement of Profit and Loss (including OtherComprehensive Income) the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and a summary of the significant accounting policies and otherexplanatory information.

Management's Responsibility for the Financial Statements

2. The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Standalone Ind AS Financial Statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder Section 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act; safeguarding the assetsof the Company; preventing and detecting frauds and other irregularities selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Standalone Ind AS Financial Statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these Standalone Ind AS FinancialStatements based on our audit.

4. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

5. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe Standalone Ind AS Financial Statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the Financial Statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theFinancial Statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial controls relevant to the Company's preparation of theFinancial Statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the Standalone Ind AS Financial Statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Standalone Ind AS Financial Statements.

Opinion

8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind AS Financial Statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31st March 2019 its profit total comprehensive profit its cash flows andthe changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

9. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein the Annexure A a statement on the matters specified in paragraphs 3 and 4 of theOrder.

10. As required by Section 143(3) of the Act we report that:

a. we have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit;

b. in our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

c. the Standalone Ind AS Financial Statements dealt with by this report are inagreement with the books of account;

d. in our opinion the aforesaid Standalone Ind AS Financial Statements comply with theIndian Accounting Standards specified under Section 133 of the Act.;

e. on the basis of the written representations received from the directors as on 31stMarch 2019 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms ofSection164(2) of the Act;

f. with respect to the adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such controls refer to ourseparate Report in Annexure B.

g. with respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. the Company does not have any pending litigations which would impact its financialposition;

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

iii. there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the company.

Place : Gurugram For AKR & Associates
Date : 18th May 2019 Chartered Accountants
ICAI FRN: 021179N
CA Kailash Kumar
(Partner)
Mem. No.: 505972

Annexure A to the Independent Auditor's Report of even date to the members of HARYANALEATHER CHEMICALS LIMITED on the Standalone Ind AS financial statements for the yearended 31st March 2019

Based on the audit procedures performed for the purpose of reporting a true and fairview on the Standalone Ind AS financial statements of the Company and taking intoconsideration the information and explanations given to us and the books of account andother records examined by us in the normal course of audit we report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets have been physically verified by the management during the yearand no material discrepancies were noticed on such verification. In our opinion thefrequency of verification of the fixed assets is reasonable having regard to the size ofthe Company and the nature of its assets.

(c) Based on our audit procedures performed for the purpose of reporting the true andfair view of the Standalone Ind AS financial statements and according to information andexplanations given by the management the title deeds of immovable properties included inproperty plant and equipment/ fixed assets are held in the name of the company.

(ii) The management has conducted physical verification of inventory at reasonableintervals during the year and no material discrepancies were noticed on such physicalverification.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013. Accordingly the provisions of clause 3(iii) (a) (b) and (c) of theOrder are not applicable to the Company and hence not commented upon.

(iv) In our opinion and according to the information and explanations given to usthere are no loans investments guarantees and securities granted in respect of whichprovisions of section 185 and 186 of the Companies Act 2013 are applicable and hence notcommented upon.

(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76of the Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended).Accordingly the provisions of clause 3(v) of the said Order are not applicable to thecompany.

(vi) To the best of our knowledge and as explained the Central Government has notspecified the maintenance of cost records under Section 148(1) of the Companies Act 2013for the products of the Company.

(vii) (a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund employees' state insurance income-taxsales-tax service tax customs duty excise duty value added tax cess and othermaterial statutory dues applicable to it.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income-tax service taxsales-tax duty of custom duty of excise value added tax cess and other materialstatutory dues were outstanding at the year end for a period of more than six monthsfrom the date they became payable.

(c) According to the information and explanations given to us there are no dues ofincome tax sales-tax service tax customs duty excise duty value added tax and cesswhich have not been deposited on account of any dispute.

(viii) Based on our audit procedures performed for the purpose of reporting the trueand fair view of the Standalone Ind AS financial statements and according to informationand explanations given by the management we are of the opinion that the Company has notdefaulted in repayment of dues to a financial institution bank or debenture holders orgovernment or debenture holders.

(ix) Based on our audit procedures performed for the purpose of reporting the true andfair view of the Standalone Ind AS financial statements and according to the informationand explanations given by the management the Company has not raised any money by way ofinitial public offer / further public offer /debt instruments and term loans. Hencereporting under clause (ix) is not applicable to the Company and hence not commented upon.

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the Standalone Ind AS financial statements and according to the informationand explanations given by the management we report that no fraud / material fraud by thecompany or on the company by the officers and employees of the Company has been noticed orreported during the year.

(xi) Based on our audit procedures performed for the purpose of reporting the true andfair view of the Standalone Ind AS financial statements and according to the informationand explanations given by the management we report that the managerial remuneration hasbeen paid / provided in accordance with the requisite approvals mandated by the provisionsof section 197 read with Schedule V to the Companies Act 2013.

(xii) In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii)of the order are not applicable to the Company and hence not commented upon.

(xiii) Based on our audit procedures performed for the purpose of reporting the trueand fair view of the Standalone Ind AS financial statements and according to theinformation and explanations given by the management transactions with the relatedparties are in compliance with section 177 and 188 of Companies Act 2013 where applicableand the details have been disclosed in the notes to the Standalone Ind AS financialstatements as required by the applicable Indian accounting standards.

(xiv) According to the information and explanations given to us and on an overallexamination of the balance sheet the company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence reporting requirements under clause 3(xiv) are not applicable tothe company and not commented upon.

(xv) Based on our audit procedures performed for the purpose of reporting the true andfair view of the Standalone Ind AS financial statements and according to the informationand explanations given by the management the Company has not entered into any non-cashtransactions with directors or persons connected with him.

(xvi) According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

Place : Gurugram For AKR & Associates
Date : 18th May 2019 Chartered Accountants
ICAI FRN: 021179N
CA Kailash Kumar
(Partner)
Mem. No.: 505972

Annexure B to the Independent Auditor's Report of even date on the Standalone Indfinancial statements of HARYANA LEATHER CHEMICALS LIMITED for the year ended 31st March2019

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

To the Members of HARYANA LEATHER CHEMICALS LIMITED

We have audited the internal financial controls over financial reporting of HARYANALEATHER CHEMICALS LIMITED ("the Company") as of March 31st 2019 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of

Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial mis-statement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls system overfinancial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion 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 March 31st 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

Explanatory Paragraph

We also have audited in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India as specified under Section 143(10) of theAct the financial statements of HARYANA LEATHER CHEMICALS LIMITED which comprise theBalance Sheet as at March 31st 2019 and the related Statement of Profit and Loss andCash Flow Statement for the year then ended and a summary of significant accountingpolicies and other explanatory information and our report dated 18th May 2019 expressedan unqualified opinion.

Place : Gurugram For AKR & Associates
Date : 18th May 2019 Chartered Accountants
ICAI FRN: 021179N
CA Kailash Kumar
(Partner)
Mem. No.: 505972

Auditor's Report on Standalone Quarterly Financial Results and Year to Date FinancialResults of HARYANA LEATHER CHEMICALS LIMITED pursuant to the regulation 33 of the SEBI(Listing Obligations and disclosure requirements) regulations 2015.

To

Board of Directors of HARYANA LEATHER CHEMICALS LIMITED

We have audited the accompanying statement of Standalone Quarterly Financial Results ofHARYANA LEATHER CHEMICALS LIMITED ("the Company") for the quarter ended 31stMarch 2019 and the year to date financial results for the period from 1st April 2018 to31st March 2019 attached herewith being submitted by the company pursuant to therequirement of regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements)regulations 2015 as modified by Circular No. CIR/CFD/FAC/62/2016 dated July 5 2016.

These Standalone Quarterly Financial Results as well as the year to date financialresults have been prepared on the basis of the interim financial statements which are theresponsibility of the company's management. Our responsibility is to express an opinion onthese financial results based on our audit of such interim financial statements whichhave been prepared in accordance with the recognition and measurement principles laid downin Indian Accounting Standard for Interim Financial Reporting (Ind AS 34) prescribedunder section 133 of the Companies Act 2013 read with relevant rule issued there underand other accounting principles generally accepted in India.

We conducted our audit in accordance with the auditing standards generally accepted inIndia. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial results are free of material misstatement(s). Anaudit includes examining on a test basis evidence supporting the amounts disclosed asfinancial results. An audit also includes assessing the accounting principles used andsignificant estimates made by management. We believe that our audit provides a reasonablebasis for our opinion.

In our opinion and to the best of our information and according to the explanationsgiven to us these Standalone Quarterly Financial Results as well as the year to datefinancial results:

(i) have been presented in accordance with the requirements of Regulation 33 of theSEBI (Listing Obligations and Disclosure Requirements) regulations 2015 in this regard;and

(ii) give a true and fair view of the total comprehensive income (comprising of netprofit and other comprehensive income) and other financial information for the quarterended 31st March 2019 as well as the year to date financial results for the period from1st April 2018 to 31st March 2019.

The Statement includes the results for the quarter ended 31st March 2019 being thebalancing figures between audited figures in respect of the full financial year and thepublished year to date figures upto the third quarter of the current financial year whichwere subject to limited review by us.

Place : Gurugram For AKR & Associates
Date : 18th May 2019 Chartered Accountants
ICAI FRN: 021179N
CA Kailash Kumar
(Partner)
Mem. No.: 505972