To The Members of HINDUSTAN HARDY LIMITED
Report on the Audit of Financial Statements Opinion
We have audited the accompanyingfinancial statements of Hindustan Hardy Limited
("the Company"), which comprise of the Balance Sheet as at 31st March, 2023, and
the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow
Statement and the Statement of Changes in Equity for the year then ended, anda summary of
the significant accounting policies and other explanatory information (hereinafter
referred to as "the financial statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the
Companies Act, 2013 ("the Act") in the manner so required and give a true and
fair view in conformity with accounting principles generally accepted in India, of the
state of affairs of the Company as at March 31,2023, and its profit, total comprehensive
income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of thefinancial statements in accordance with the
StandardsonAuditing(SAs) specified under section 143(10) of the Act. Our responsibilities
under those Standards are further described in the Auditors Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Company
in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of
India (ICAI) together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Act and the Rules made thereunder. We
have fulfilled our other ethical responsibilities in accordance with these requirements
and the ICAIs Code of Ethics. We believe that the audit evidenceobtained by usis
sufficient and appropriate to provide a basis for our audit opinion on the financial
statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. We have
determined that there are no key audit matters to communicate in our report.
Information Other than the Financial Statements and Auditors Report Thereon
The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the Management
Discussion and Analysis, Boards Report and Shareholders information but does not include
the financial statements and our auditors report thereon.
Our opinion on the financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained during the
course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information; we are required to report that fact. We have
nothing to report in this regard.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these financial statements that give
a true and fair view of the financial position, financial performance, total comprehensive
income, changes in equity and cash flows of the Company in accordance with Ind AS and
other accounting principles generally accepted in India. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act
for safeguarding the assets of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
The Board of Directors are responsible for overseeing the Companys financial reporting
process. Auditors Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial
statements, whether obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal financial controls relevant to the audit in
order to design audit procedures that are appropriate in the circumstances. Under section
143(3)(i) of the Act, weare also responsible for expressing our opinion on whether the
Company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our audit report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our audit report.
However, future events or conditions may cause the Company to cease to continue as a going
concern.
• Evaluate the overall presentation, structureand content ofthe financial
statements, including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit
work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing ofthe audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We describe these matters in our
auditors report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit we report that:
a. We have sought and obtained all the information and explanations which to the best
of our knowledge and belief which were necessary for the purposes of our audit.
b. In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books.
c. The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive
Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this
Report are in agreement with the relevant books of account.
d. In our opinion, the aforesaid financial statements comply with the Indian Accounting
Standards specified under Section 133 of the Act.
e. On the basis of the written representations received from the directors as on March
31, 2023 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2023 from being appointed as a director in terms of Section 164(2) of the
Act.
f. With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate report. Our report expresses an unmodified opinion on the adequacy and operating
effectiveness of the Companys internal financial controls over financial reporting.
g. With respect to the other matters to be included in the Auditors Report in
accordance with the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations
given to me, the remuneration paid by the company to its directors during the year is in
accordance with the provisions of section 197 of the Act.
h. With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in
our opinion and to the best of our information and according to the explanations given to
me :
i. The Company has disclosed the impact of pending litigations on its financial
position in its financial statements.
ii. The Company did not have any long-term contracts including derivative contracts; as
such the question of commenting on any material foreseeable losses thereon does not arise.
iii. There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection fund by the company.
iv.(a) The Management has represented that, to the best of its knowledge and belief,
no funds have been advanced or loaned or invested (either from borrowed funds or share
premium or any other sources or kind of funds) by the Company to or in any other person or
entity, including foreign entities ("Intermediaries"), with the understanding,
whether recorded in writing or otherwise, that the Intermediary shall, whether directly or
indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Company ("Ultimate Beneficiaries") or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief no
funds have been received by the Company from any person or entity, including foreign
entities ("Funding Parties"), with the understanding, whether recorded in
writing or otherwise, that the Company shall, whether, directly or indirectly, lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security
or the like on behalf of the Ultimate Beneficiaries.
(c) Based on such audit procedures as considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the
representations under sub-clause (i) (ii) of Rule 11(e), provided under (a) and
(b) above, contain any material mis-statement.
v. As stated in the financial statements;
(a) The Final Dividend proposed in the previous year, declared and paid by the company
during the year is in accordance with section 123 of the Act, as applicable.
(b) The Board of Directors of the company have proposed final dividend for the year
which is subject to the approval of the members at the ensuing Annual General Meeting. The
amount of dividend proposed is in accordance with Section 123 of the Act, as applicable.
2. As required by the Companies (Auditors Report) Order, 2020 ("the Order")
issued by the Central Government in terms of Section 143(11) of the Act, we give in an
annexure, a statement on the matters specified in paragraphs 3 and 4 of the Order.
ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT
Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory
Requirements section of our report of even date to the members of HINDUSTAN HARDY
LIMITED.
i.(a) (A) The Company has maintained proper records showing full particulars including
quantitative details and situation of Property, Plant and Equipment and relevant details
of Right-of use assets.
(B) The Company has maintained proper records showing full particulars of Intangible
assets.
(b) According to the information and explanations given to us and on the basis of our
examination of records of the Company, the Company has regular program of physical
verification of its property, plant and equipment by which all property, plant and
equipment are verified in phased manner over a period of three years. In accordance with
this program, certain properties, plant and equipment were verified during the year. In
our opinion, this periodicity of physical verification is reasonable having regards to the
size of the company and nature of its assets. No material discrepancies were noticed on
such verification.
(c) In respect of immovable property of land that has been taken on lease, the lease
agreement is in the name of the company where the Company is the lessee in the agreement.
(d) According to the information and explanations given to us and on the basis of our
examination of the records of the, the Company has not revalued its property, plant and
equipment (including Right-of-use assets) or Intangible assets or both during the year.
(e) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, there are no proceedings initiated or pending
against the Company for holding any benami property under the Prohibition of Benami
Property Transactions Act, 1988 and rules made thereunder.
ii. a) The inventory, along with stock lying with third parties, has been physically
verified by the management during the year. Physical verification of inventory has been
conducted at reasonable intervals by the management. No discrepancies were noticed on
verification between the physical stocks and the book records that were more than 10% in
aggregate of each class of inventory and the same have been properly dealt with in the
books of accounts. For stocks lying with third parties at the year-end, written
confirmations have also been obtained.
b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has been sanctioned working capital
limits in excess of five crore rupees, in aggregate, from bank on the basis of security of
current assets.
c) According to information given to us and sample check of returns / statements
produced before us - the returns or statements filed by the Company with such bank are in
agreement with the books of account of the Company.
iii. According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not made any investments,
provided guarantee or security or granted any advances in the nature of loans, secured or
unsecured, to companies, firms, limited liability partnerships or any other parties during
the year. Accordingly, reporting under clause 3(iii) (a) to 3(iii) (f) of the Order are
not applicable to the Company.
iv. According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not given any loans or provided
any guarantee or security as specified u/s 185 and 186 of the Companies Act 2013.
v. The Company has not accepted any deposits or amounts which are deemed to be deposits
from public. Accordingly, clause 3(v) of the Order is not applicable.
vi. We have broadly reviewed the books of accounts maintained by the Company pursuant
to the rules prescribed by the Central Government for maintenance of cost records under
Section 148(1) of the Act in respect of its manufactured goods and are of the opinion that
prima facie, the prescribed accounts and records have been made and maintained. However,
we have not carried out a detailed examination of the records with a view to determine
whether these are accurate or complete
vii.(a) The Company does not have liability in respect of Service tax, Duty of excise,
Sales tax and Value added tax during the year. Since effective 1 July 2017, these
statutory dues has been subsumed into GST.
According to the information and explanations given to us and on the basis of our
examination of the records of the Company, in our opinion amounts deducted / accrued in
the books of account in respect of undisputed statutory dues including Goods and Service
Tax, Provident Fund, Employees State Insurance, Income-Tax, Duty of Customs or Cess or
other statutory dues have generally been regularly deposited by the Company with the
appropriate authorities.
According to the information and explanations given to us and on the basis of our
examination of the records of the Company, no undisputed amounts payable in respect of
Goods and Service Tax, Provident Fund, Employees State Insurance, Income-Tax, Duty of
Customs or Cess or other statutory dues were in arrears as at 31 March 2023 for a period
of more than six months from the date they became payable.
(b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, there are no disputed amounts in respect of
Goods and Service Tax, Provident Fund, Employees State Insurance, Income-Tax, Duty of
Customs or Cess or other statutory dues.
viii. According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not surrendered or disclosed
any transactions,previously unrecorded as income in the books of account, in the tax
assessments under the Income-tax Act, 1961 as income during the year.
ix. (a) According to the information and explanations given to us and on the basis of
our examination of the records of the Company, the Company has not defaulted in repayment
of loans and borrowing or in the payment of interest thereon to any lender during the
year.
(b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not been declared as a willful
defaulter by any bank or financial institution or government or government authority.
(c) During the year the Company has obtained term loan. In our opinion and according to
the information and explanations given to us, the term loan has been applied for the
purpose for which the same was obtained.
(d) According to the information and explanations given to us and on an overall
examination of the balance sheet of the Company, we report that no funds raised on
short-term basis have been used for long-term purposes by the Company.
(e) According to the information and explanations given to us and on an overall
examination of the financial statements of the Company, we report that the Company has not
taken any funds from any entity or person on account of or to meet the obligations of its
associates.The company does not have any subsidiary or joint venture. Accordingly, clause
3(ix)(e) of the Order is not applicable.
(f) The company does not hold any securities in its associate companies. The company
does not have any subsidiary or joint venture. Accordingly, clause 3(ix)(f) of the Order
is not applicable.
x.
(a) The Company has not raised any moneys by way of initial public offer or further
public offer (including debt instruments). Accordingly, clause 3(x)(a) of the Order is not
applicable.
(b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible debentures during
the year . Accordingly, clause 3(x)(b) of the Order is not applicable.
xi. (a) Based on examination of the books and records of the Company and according to
the information and explanations given to us, no fraud by the Company or on the Company
has been noticed or reported during the course of the audit.
(b) No report under sub-section (12) of section 143 of the Companies Act has been filed
by the auditors in Form ADT-4 as prescribed under rule 13 of Companies (Audit and
Auditors) Rules, 2014 with the Central Government, during the year and upto the date of
this report
(c) As represented to us by the management, there are no whistle blower complaints
received by the Company during the year.
xii. According to the information and explanations given to us, the Company is not a
Nidhi Company. Accordingly, clause 3(xii)of the Order is not applicable.
xiii. In our opinion and according to the information and explanations given to us, the
transactions with related parties are in compliance with Sections 177 and 188 of the
Companies Act, 2013, where applicable, and the details of the related party transactions
have been disclosed in the financial statements of Company as required by the applicable
Indian Accounting Standards.
xiv. (a) In our opinion the Company has an adequate internal audit system commensurate
with the size and the nature of its business.
(b) We have considered, the internal audit reports for the year under audit, issued to
the Company during the year and till date for the period under audit.
xv. In our opinion and according to the information and explanations given to us, the
Company has not entered into any non-cash transactions as specified in Section 192 of the
Companies Act, 2013 with its directors or persons connected to its directors and hence,
accordingly the said clause 3(xv) of the Order is not applicable.
xvi. (a) The Company is not required to be registered under Section 45-IA of the
Reserve Bank of India Act, 1934. Accordingly, the reporting clause 3(xvi)(a) of the Order
is not applicable.
(b) The Company has not conducted non-banking financial / housing finance activities
during the year. Accordingly, the reporting under clause 3(xvi)(b) of the Order is not
applicable to the company.
(c) The Company is not a Core investment Company (CIC) as defined in the regulations
made by the Reserve Bank of India. Accordingly, the reporting under Clause 3(xvi)(c) of
the Order is not applicable to the Company
(d) Based on the information and explanations provided by the management of the
Company, the Group does not have any CICs, which are part of the Group. We have not,
however, separately evaluated whether the information provided by the management is
accurate and complete. Accordingly the reporting under Clause 3(xvi)(d) of the order is
not applicable to the Company.
xvii. The Company has not incurred cash losses during the financial year covered by our
audit and the immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors during the year.
Accordingly, clause 3 (xviii) of the Order is not applicable.
xix. On the basis of the financial ratios, ageing and expected dates of realisation of
financial assets and payment of financial liabilities, other information accompanying the
financial statements and our knowledge of the Board of Directors and Management plans and
based on our examination of the evidence supporting the assumptions, nothing has come to
our attention, which causes us to believe that any material uncertainty exists as on the
date of the audit report indicating that Company is not capable of meeting its liabilities
existing at the date of balance sheet as and when they fall due within a period of one
year from the balance sheet date. We, however, state that this is not an assurance as to
the future viability of the Company. We further state that our reporting is based on the
facts up to the date of the audit report and we neither give any guarantee nor any
assurance that all liabilities falling due within a period of one year from the balance
sheet date, will get discharged by the Company as and when they fall due.
xx. In our opinion and according to the information and explanations given to us
corporate social responsibility (CSR) is not applicable to the company during the year.
Hence, clauses 3(xx) (a) and 3(xx)(b) of the Order are not applicable.
xxi. The reporting under Clause (xxi) of the Order is not applicable in respect of the
audit of Standalone Financial Statements. Accordingly, no comment in respect of the said
clause has been included in this report.
|
For Daga & Chaturmutha |
|
Chartered Accountants |
|
Firm Registration No. 101987W |
| Place: Nashik |
CA Anand Daga |
| Date : 26th May 2023 |
Partner |
| UDIN : 23048684BGTEHY5687 |
Membership No. 048684 |
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT
Referred to in paragraph 1 (f)under ‘Report on Other Legal and Regulatory
Requirements section of our report of even date on the Financial Statements of HINDUSTAN
HARDY LIMITED as at and for the year ended 31 st March, 2023
Report on the Internal Financial Controls with reference to financial statements under
Clause (i) of Sub-section 3 ofSection 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls with reference to financial
statementsof HINDUSTAN HARDY LIMITED ("the Company") as of 31st March, 2023 in
conjunction with our audit of the financial statements of the Company for the year endedon
that date.
Managements Responsibility for Internal Financial Controls
TheCompanysManagementisresponsibleforestablishingandmaintaininginternalfinancialcontrols
based on the internal controlswith reference to financial statementscriteriaestablished by
the Company considering the essential components of internal control stated inthe Guidance
Note on Audit of Internal Financial Controls issued bythe Institute of Chartered
Accountants of India. These responsibilities include the design,implementation and
maintenance of adequate internal financial controls that were operatingeffectively for
ensuring the orderly and efficient conduct of its business, including adherence
torespectivecompanys policies, the safeguarding of its assets, the prevention and
detection of frauds anderrors, the accuracy and completeness of the accounting records,
and the timely preparation ofreliable financial information, as required under the
Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the internal financial controlswith
reference to financial statements based on our audit. We conducted our audit in accordance
withthe Guidance Note on Audit of Internal Financial Controls with reference to financial
statements (the "Guidance Note") issued by the Institute of Chartered
Accountants of India and the Standards on Auditing prescribedunder Section 143(10) of the
Companies Act, 2013, to the extent applicable to an audit ofintemal financial controls.
Those Standards and the Guidance Note require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls with reference to financial statements were established and maintained
and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system with reference to financial statements and their
operating effectiveness. Our audit of internal financial controls with reference to
financial statements included obtaining an understanding of internal financial controls
with reference to financial statements, assessing the risk that a material weakness
exists, and testing and evaluating the design and operating effectiveness of internal
control based on the assessed risk. The procedures selected depend on the auditors
judgement, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error.
We believe that the audit evidence we have obtainedis sufficient and appropriate to
providea basis for our audit opinion on the Companys internal financial controls with
reference to financial statements.
Meaning of Internal Financial Controls Over Financial Reporting
A companys internal financial controlswith reference to financial statements is a
process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles. A companys internal financial controls
with reference to financial statements include those policies and procedures that (1)
pertain to the maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles, and that
receipts and expenditures of the company are being made only in accordance with
authorisations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorised acquisition, use, or
disposition of the companys 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 with reference to
financial statements, including the possibility of collusion or improper management
override of controls, material misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the internal financial controls with
reference to financial statements to future periods are subject to the risk that the
internal financial control over financial reporting may become inadequate because of
changes in conditions, or that the degree of compliance with the policies or procedures
may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given
to us, the Company has, in all material respects, ad equate internal financial controls
reference to financial statements and such internal financial controls were operating
effectively as at 31st March, 2023, based on the criteria for internal financial
controlswith reference to financial statementsestablished by the companyconsidering the
essential components of internal control stated in the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India.
|
For Daga & Chaturmutha |
|
Chartered Accountants |
|
Firm Registration No. 101987W |
| Place: Nashik |
CA Anand Daga |
| Date : 26th May 2023 |
Partner |
| UDIN : 23048684BGTEHY5687 |
Membership No. 048684 |
+91-9892691696
