You are here » Home » Companies » Company Overview » Shree Hari Chemicals Export Ltd

Shree Hari Chemicals Export Ltd.

BSE: 524336 Sector: Industrials
NSE: N.A. ISIN Code: INE065E01017
BSE 00:00 | 14 May 63.95 -0.75
(-1.16%)
OPEN

63.00

HIGH

67.00

LOW

60.60

NSE 05:30 | 01 Jan Shree Hari Chemicals Export Ltd
OPEN 63.00
PREVIOUS CLOSE 64.70
VOLUME 1973
52-Week high 74.25
52-Week low 15.00
P/E 26.54
Mkt Cap.(Rs cr) 28
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 63.00
CLOSE 64.70
VOLUME 1973
52-Week high 74.25
52-Week low 15.00
P/E 26.54
Mkt Cap.(Rs cr) 28
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Shree Hari Chemicals Export Ltd. (SHHARICHEM) - Auditors Report

Company auditors report

To

The Members of

Shree Hari Chemicals Export Ltd. Report on Ind AS Financial Statements Opinion

We have audited the accompanying Ind AS financial statements of Shree Hari ChemicalsExports Ltd. (the "Company") which comprise of the Balance Sheet as atMarch 31 2020 the Statement of Profit and Loss the Statement of Changes in Equity andStatement of Cash Flows for the year then ended and a summary of significant accountingpolicies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theIndian Accounting Standards prescribed under the Section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended ("Ind AS") andother accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2020 the loss and total comprehensive income changes in equityand its cash flows for the year ended on that date.

Basis of Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing ("SA"s) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India ("ICAI") together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules made thereunder and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the ICAI's Codeof Ethics. We believe that the audit evidence obtained by us is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements.

Key Audit Matters

1. Inventory Valuation

H-acid and chemical based inventory forms a significant part of the Company's inventoryof which prices are fluctuating in nature and also depends on prices decisions andconditions of other countries. Inventories are valued at lower of cost and net realisablevalue except raw materials work-in-progress & stores.

Auditor's Reponse

Our audit procedures over inventory valuation included the following:

• Testing the design implementation and operating effectiveness of key internalfinancial controls including controls over valuation of inventory.

• Testing on a sample basis the accuracy of cost for inventory by verifying theactual purchase cost. Testing the net realizable value by comparing actual cost with mostrecent selling price.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe financial statements and our auditor's report thereon. The Annual Report is expectedto be made available to us after the date of this auditor's report.

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

In connection with our audit of the financial statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated

(When we read the Annual Report if we conclude that there is a material misstatementtherein we are required to communicate the matter to those charged with governance)

Responsibility of Management for the Standalone Ind AS Financial Statements

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 profit/loss (including other comprehensive income) changes in equityand 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 Rule 4 of the Companies (Ind AS) Rules 2015. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Ind AS Financial Statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to

continue as a going concern disclosing as applicable matters related to goingconcern and using the going concern basis of accounting unless management either intendsto liquidate the Company or to cease operations or has no realistic alternative but to doso.

The Board of Directors are also responsible for overseeing the company's financialreporting process.

Auditor's Responsibilities for the Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Ind AS financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these Ind AS financial statements.

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

• Identify and assess the risks of material misstatement of the Ind AS financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has internal financial controls with reference to Financial Statements inplace and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Ind AS financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the Ind AS financialstatements including the disclosures and whether the Ind AS financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

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

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

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on other Legal and Regulatory Requirements

As required by ‘the Companies (Auditor's Report) Order 2016'("theorder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of Companies Act 2013 we give in the Annexure– A a statement on thematters specified in paragraphs 3 and 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 Ind AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

e) On the Basis of written representations received from the Directors as on 31stMarch 2020 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 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 Ind AS financial statements in Note No. 29.16.

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
Sd/-
S. G. Singhvi
Partner
M. No. 041170
UDIN: 20041170AAAAB19690
Date: 23rd July 2020
Place: Mumbai.

Annexure-A to the Independent Auditor's Report

"Annexure A" to the Independent Auditor's Report to the members of thecompany on the Ind AS financial statements for the year ended March 31 2020 we reportthat:

(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 186 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) The maintenance of cost records has been specified by the Central Government underSection 148(1) of the Companies Act 2013. We have broadly reviewed the cost recordsmaintained by the Company pursuant to the Companies (Cost Records and Audit) Rules 2014as amended prescribed by the Central Government under Sub-section (1) of Section 148 ofthe Companies Act 2013 and are of the opinion that prima facie the prescribed costrecords have been made and maintained. We have however not made a detailed examinationof the cost records with a view to determine whether they are accurate.

(vii) (a) According to the information and explanation given to us and records asproduced and examined by us in our opinion the Company is generally regular indepositing undisputed applicable statutory dues including provident fund employees' stateinsurance income-tax duty of customs Goods & Service Tax cess and any otherstatutory dues applicable to it with the appropriate authorities.

According to the information and explanations given to us no disputed amounts payablein respect of provident fund income tax duty of customs Goods & Service Tax cessand other material statutory dues as applicable were in arrears as at 31st March 2020 forthe period of more than six months from date they became 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 Forum in which
it pertains Dispute is Pending
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) The company has not raised moneys by way of initial public offer or further publicoffer including debt instruments and term Loans. Accordingly the provisions of clause 3(ix) of the Order are not applicable to the Company and hence not commented 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 the Company is not aNidhi 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 Ind AS financial statements as required by the applicable Indianaccounting 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
Sd/-
S. G. Singhvi
Partner
M. No. 041170
UDIN: 20041170AAAAB19690
Date: 23rd July 2020
Place: Mumbai.

Annexure – B

ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON FINANCIAL STATEMENTS OFSHREE 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 2020 in conjunctionwith our audit of the Ind AS 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 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.

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 issued by ICAI to theextent applicable to an audit of internal financial controls both applicable to an auditof 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 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.

Opinion

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 2020 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
Sd/-
S. G. Singhvi
Partner
M. No. 041170
UDIN: 20041170AAAAB19690
Date: 23rd July 2020
Place: Mumbai

.