The Members of
Shree Hari Chemicals Export Ltd.
Report on the Financial Statements
We have audited the accompanying financial statements of Shree Hari Chemicals ExportsLtd. (the Company ) which comprise of the Balance Sheet as at March 31 2018 theStatement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Management s Responsibility for the Financial Statements
The Company s Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ( the Act ) with respect to the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) specified underSection 133 of the Act read with relevant rule issued there under. This responsibilityalso includes the maintenance of adequate accounting records in accordance with theprovision of the Act for safeguarding of the assets of the Company and for preventing anddetecting the frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of internal financial control that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.
Auditor s Responsibility
Our responsibility is to express an opinion on these financial statements based on ouraudit. 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.
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 financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company s preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company s Directors as well as evaluating the overall presentation ofthe financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India including the Ind AS of the financial position ofthe Company as at 31st March 2018 and its financial performance including OtherComprehensive Income and the Changes in Equity for the year ended on that date.
Report on other Legal and Regulatory Requirements
As required by the Companies (Auditor s Report) Order 2016 ( the order ) issued bythe Central Government of India in terms of sub-section (11) of Section 143 of CompaniesAct 2013 we give in the Annexure A a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.
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 purposes of our audit;
b) In our opinion proper books of account as required by law have been kept by thecompany so far as appears from our examination of those books;
c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome the Statement of Cash Flow and the Statement of Changes in Equity dealt with bythis Report are in agreement with the books of account;
d) In our opinion the aforesaid financial statements comply with the Indian AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;
e) On the Basis of written representations received from the Directors as on 31stMarch 2018 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a Directors 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 and to ourbest of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements in Note No. 29.20.
ii. The Company did not have any long-term contracts including derivatives contractsfor which 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.
| ||For M/s. G. D. Singhvi & Company |
| ||Chartered Accountants |
| ||FRN: 110287W |
| ||S. G. Singhvi |
| ||Partner |
| ||M. No. 041170 |
|Date: 19th May 2018 || |
|Place: Mumbai. || |
Annexure-A to the Independent Auditors Report
Annexure A to the Independent Auditors Report to the members of the company on thefinancial statements for the year ended March 31 2018 we report that:
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets;
(b) The Company has regular programme of physical verification of its fixed assets. Asper information and explanation given to us no material discrepancies were noticed on suchverification.
(c) The title deeds of Immovable properties are held in the name of the Shree HariChemicals Export Limited.
(ii) According to information and explanation provided by the management physicalverification of inventory has been conducted at reasonable intervals by the management andno material discrepancies were noticed on such verification which in our opinion isreasonable having regards to size of the Company and nature of its assets.
(iii) In our opinion and according to the information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms LimitedLiability Partnership or other parties covered in the register maintained under section189 of the Act. Therefore this clause is not applicable to the company
(iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and I86 of the Companies Act 2013in respect of loans investments guarantees and security.
(v) The Company has not accepted any deposits hence the directives issued by theReserve Bank of India and the provisions of sections 73 to 76 or any other relevantprovisions of the Act and the Companies (Acceptance of Deposit) Rules2015 with regard tothe deposits accepted from the public are not applicable.
(vi) According to the information and explanations given to us maintenance of costrecords has not been specified by the Central Government under sub-section (1) of section148 of the Companies Act 2013 to the company hence same is not applicable to the Company.
(vii) (a) According to the information and explanation given to us and records asproduced and examined by us in our opinion the Company is regular in depositingundisputed applicable statutory dues including provident fund employees state insuranceincome-tax sales-tax wealth tax service tax duty of customs duty of excise valueadded tax cess and any other statutory dues applicable to it with the appropriateauthorities.
According to the information and explanations given to us no disputed amounts payablein respect of provident fund income tax sales tax wealth tax service tax duty ofcustoms value added tax cess and other material statutory dues as applicable were inarrears as at 31st March 2018 for the period of more than six months from date theybecame payable.
(b) According to the information and explanations given to us the details of statutorydues of income tax sales tax service tax or custom duty excise duty or value added taxwhich have not been deposited on account of appeal are given as under.
|Name of the Statue ||Nature of Dues ||Amount (Rs.) ||Period to which it pertains ||Forum in which Dispute is Pending |
|The Central Sales Tax Act 1956 ||Sales Tax ||17557419/- ||2009-10 ||Dy. Commissioner of Sales Tax |
|Income Tax Act1961 ||Income Tax ||76268 ||2001-02 ||Assessing Officer |
|Income Tax Act1961 ||Income Tax ||141949 ||2003-04 ||Assessing Officer |
|Income Tax Act1961 ||Income Tax ||412584 ||2008-09 ||Assessing Officer |
|Income Tax Act1961 ||Income Tax ||120576 ||2009-10 ||Assessing Officer |
|Central Excise Act1944 ||Excise ||218539 ||2005-06 ||Assistant Commissioner of Central Excise |
|Customs Act1962 ||Excise ||740817 ||2004-05 ||Assistant Commissioner of Customs |
|Central Excise Act1944 ||Excise ||308147 ||2010-11 ||Assistant Commissioner of Central Excise. |
(viii) According to the records of the company examined by us and information andexplanations given to us the company has not defaulted in repayment of dues to anyFinancial Institution as at the balance sheet date.
(ix) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not raised moneys by way of initial public offeror further public offer including debt instruments and term Loans. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the Company and hence notcommented upon.
(x) According to information and explanations given to us there were no frauds on theCompany by its officers or employees noticed or reported by the management for the yearunder review.
(xi) The Company has paid or provided any managerial remuneration in accordance withthe requisite approvals mandated by the provisions of Section 197 read with Schedule V ofthe Companies Act. (xii) According to the information and explanations given to us theCompany is not a Nidhi Company hence clause 3(xii) of the order is not applicable.
(xiii) According to the explanations and information given to us all the transactionsof the related parties at the Company for the year under review are in compliance withSection 177 and 188 of the Companies Act 2013 and the details of the same have beendisclosed in the financial statements as required by the applicable accounting standards.
(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly paid convertible debentures during the year under review henceclause 3(xiv) of the order is not applicable.
(xv) According to the information and explanation given to us the Company has notentered into any non cash transaction with directors or persons connected with him as perprovisions of Section 192 of the Companies Act 2013.
(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934 and hence clause 3(xvi) of the order is not applicable.
|For M/s. G. D. Singhvi & Company |
|Chartered Accountants |
|FRN: 110287W |
|S. G. Singhvi |
|M. No. 041170 |
|Date: 19th May 2018 |
|Place: Mumbai. |
ANNEXURE TO THE INDEPENDENT AUDITOR S REPORT OF EVEN DATE ON
FINANCIAL STATEMENTS OF SHREE HARI CHEMICALS EXPORT LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ( the Act )
We have audited the internal financial controls over financial reporting of SHREE HARICHEMICALS EXPORT LIMITED ( the Company ) as of March 31 2018 in conjunction with ouraudit of the financial statements of the Company for the year ended on that 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 include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
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 issued by ICAI to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 judgement including the assessment of the risks ofmaterial misstatement 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 Company s internal financial controls systemover financial 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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.
In our opinion the Company has in all other material respects has an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2018 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.
|For M/s. G. D. Singhvi & Company |
|Chartered Accountants |
|FRN: 110287W |
|S. G. Singhvi |
|M. No. 041170 |
|Date: 19th May 2018 |
|Place: Mumbai. |