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Shree Hari Chemicals Export Ltd.

BSE: 524336 Sector: Industrials
NSE: N.A. ISIN Code: INE065E01017
BSE 00:00 | 27 Jan 49.50 0.70
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NSE 05:30 | 01 Jan Shree Hari Chemicals Export Ltd
OPEN 49.50
PREVIOUS CLOSE 48.80
VOLUME 402
52-Week high 83.60
52-Week low 48.05
P/E
Mkt Cap.(Rs cr) 22
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
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OPEN 49.50
CLOSE 48.80
VOLUME 402
52-Week high 83.60
52-Week low 48.05
P/E
Mkt Cap.(Rs cr) 22
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 2022 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 2022 the profit 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 financial statements in accordance with the Standards onAuditing (“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 Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India (“ICAI”) together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the 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 realisable value except raw materialswork-in progress & stores.

Auditor's Response

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 the actualpurchase cost. Testing the net realizable value by comparing actual cost with most recentselling price.

Information Other than the 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

If based on the work we have performed we conclude that there is materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Responsibility of Management for the 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 Ind AS Financial Statements that give a true and fair view of the financialposition profit/loss (including other comprehensive income) changes in equity and cashflows of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards (Ind AS) specified under Section 133 ofthe Act read with Rule 4 of the Companies (Ind AS) Rules 2015. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation 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 mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

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 scepticism 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 to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 we are also responsible for expressing our opinion on whether thecompany has internal financial controls with reference to Financial Statements in placeand the operating effectiveness of such controls.

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

Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen 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 the mattersspecified 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 2022 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 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. 33.15 ii. The Company did not haveany long-term contracts including derivatives contracts for which there were any materialforeseeable losses.

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

iv. a) The Company has represented that no funds have been advanced or loaned orinvested (either from borrowed funds or share premium or any other sources or kind offunds) by the company to or in any other persons or entities including foreign entities(“Intermediaries”) with the understanding whether recorded in writing orotherwise that the Intermediary shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theCompany (“Ultimate Beneficiaries”) or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries other than those disclosed in the notes toaccounts.

b) The Company has represented that no funds have been received by the company from anypersons or entities including foreign entities (“Funding Parties”) with theunderstanding whether recorded in writing or otherwise that the Company shall whetherdirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Funding Party (“UltimateBeneficiaries”) or provide any guarantee security or the like on behalf of theUltimate Beneficiaries other than those disclosed in the notes to accounts.

c) Based on audit procedures considered reasonable and appropriate in thecircumstances nothing has come to our notice that has caused us to believe that therepresentations under sub clause (a) and (b) above contain any material misstatement.

vi. The company has not declared and paid any dividend during the financial yearaccordingly the provisions of section 123 is not applicable.

For M/s. G. D. Singhvi & Company
Chartered Accountants
FRN: 110287W
S. G. Singhvi
Partner
M. No. 041170
UDIN: 22041170AJSTAO5817
Date: May 27 2022
Place: Mumbai

ANNEXURE -A

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 2022 we reportthat:

I. (a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of its Property Plant & Equipment andIntangible Assets;

(b) The Company has regular programme of physical verification of its PPE. As perinformation 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 company.

(d) The Company has not revalued its Property Plant & Equipment and IntangibleAssets during the year.

(e) According to information provided by the management no proceedings have beeninitiated or are pending against the company for holding any Benami property under theBenami Transactions (Prohibition) Act 1988.

ii. (a) According to information and explanation provided by the managementphysical verification of inventory has been conducted at reasonable intervals by themanagement and no material discrepancies were noticed on such verification which in ouropinion is reasonable having regards to size of the Company and nature of its assets.

(b) The company has been sanctioned working capital limits in excess of fivecrores in aggregate from banks or financial institutions on the basis of security ofcurrent assets and the quarterly/monthly returns or statements filed by the company withsuch banks or financial institutions are in agreement with the books of account of thecompany.

iii. According to the information and explanations given to us the Company has notgranted any loans and advances in the nature of loans secured or unsecured to companiesfirms Limited Liability Partnerships or any other parties accordingly this clause is notapplicable to the company.

iv. In our opinion and according to the information and explanations given to usthe company has complied with the provisions of section 185 and 186 of the Companies Act2013 in 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) Rules 2015 with regard tothe deposits accepted from the public are not applicable.

vi. We have broadly reviewed the books of account and records maintained by theCompany pursuant to the rules prescribed by the Central Government of India the companyis required to maintain cost records as specified under section 148(1) of the CompaniesAct 2013 in respect of its products. We have broadly reviewed the same and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. The contents of these accounts and records have not been examined by us.

vii. (a) According to the information and explanations given to us and the recordsof the Company examined by us in our opinion the company is generally regular indepositing the undisputed statutory dues including provident funds goods and service taxand other material statutory dues applicable with the appropriate authorities. Accordingto the information and explanation given to us no undisputed amounts payable in respectof the aforesaid dues were outstanding as at March 31 2022 for the period of more thansix months from the date becoming payable except the following.

Particulars Amount (Rs.)
Income Tax as per Portal Rs. 126525

(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 Dues Amount (Rs.) Period to which it pertains Forum in which 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. As per the information and explanations given to us the company has notdisclosed or surrendered any undisclosed income during the year therefore this clause isnot applicable to the company.

ix. (a) 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.

(b) Company has not been declared a wilful defaulter by any bank or financialinstitution or any other lender.

(c) According to the records of the company examined by us company has utilised theterm loan towards the purpose for which it was obtained.

(d) According to the records of the company examined by us the company has notutilised any short term borrowing for long term purpose.

(e) The company has not raised any money from any person or entity for the account ofor to pay the obligations of its associates subsidiaries or joint ventures thereforethis clause is not applicable to company.

(f) The company has not raised any loans during the year by pledging securities held intheir subsidiaries joint ventures or associate companies. Therefore this clause is notapplicable to company.

x. (a) The company has not raised moneys by way of initial public offer or furtherpublic offer including debt instruments. Accordingly the provisions of clause 3 (x) ofthe Order are not applicable to the Company.

(b) The company has not made any preferential allotment or private placement of sharesor convertible debentures (fully partially or optionally convertible) during the year andhence this clause is not applicable to the company.

xi. (a) According to information and explanations given to us there were no frauds onthe Company by its officers or employees noticed or reported by the management for theyear under review.

(b) No auditors of the company have filed a report in Form ADT-4 with the CentralGovernment as prescribed under the Companies (Audit and Auditors) Rules 2014. Thereforethis clause is not applicable to company.

(c) There are no whistle-blower complaints; therefore this clause is not applicable tothe company.

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. According to the explanations and information given to us company have aninternal audit system which is commensurate with its size and business activities andreport of the internal auditor has been taken into consideration.

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.xvii.According to the explanations and information given to us company has not incurredany cash losses in the financial year and in the immediately preceding financial year.

xviii. There has been no resignation of statutory auditor during the year and hencethis clause is not applicable to the company.

xix. According to the explanations information given to us and on evaluation of ageingreports financial ratios and expected dates of realisation of financial assets andpayment of financial liabilities other information accompanying the financial statementsthe auditor's knowledge of the Board of Directors and management plans we are of theopinion that no material uncertainty exists as on the date of the audit report thatcompany is capable of meeting its liabilities existing at the date of balance sheet as andwhen they fall due within a period of one year from the balance sheet date.

xx. According to the explanations information given to us there is no unspent amountof CSR to be transfer to Fund specified in Schedule VII to the Companies Act. Thereforethis clause is not applicable to the company.

xxi. According to the explanations information given to us the company does notprepare consolidated financials since it does not have any subsidiary associate or jointventure and therefore this clause is not applicable to the company.

For M/s. G. D. Singhvi & Company Chartered Accountants FRN: 110287W

S. G. Singhvi Partner M. No. 041170

UDIN: 22041170AJSTAO5817 Date: May 27 2022 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 2022 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 2022 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
Partner
M. No. 041170
UDIN: 22041170AJSTAO5817
Date: May 27 2022
Place: Mumbai

 

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