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Hemo Organic Ltd.

BSE: 524590 Sector: Industrials
NSE: N.A. ISIN Code: INE422G01015
BSE 09:07 | 15 Feb 15.20 -0.20
(-1.30%)
OPEN

15.20

HIGH

15.20

LOW

15.20

NSE 05:30 | 01 Jan Hemo Organic Ltd
OPEN 15.20
PREVIOUS CLOSE 15.40
VOLUME 4296
52-Week high 23.55
52-Week low 13.00
P/E 11.60
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 15.20
CLOSE 15.40
VOLUME 4296
52-Week high 23.55
52-Week low 13.00
P/E 11.60
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Hemo Organic Ltd. (HEMOORGANIC) - Auditors Report

Company auditors report

TO THE MEMBERS OF HEMO ORGANIC LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of HEMO ORGANIC LIMITED ("theCompany") which comprise the Balance Sheet as at 31/03/2017 the Statement ofProfit and Loss and the Cash Flow Statementfor the year ended and a summary of thesignificant accounting policies and other explanatory information.

Management's Responsibility for the 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 preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and Cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities selection andapplication of appropriate accounting policies making judgments and estimates that arereasonable and prudent and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement 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 thereunder. We conducted our audit in accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the 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.

Opinion

Except as provided in the para Basis of Disclaimer. In our opinion and to the best ofour information and according to the explanations given to us the aforesaid financialstatements give the information required by the Act in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia of the state of affairs of the Company as at 31/03/2017..

Basis for Disclaimer of Opinion

In the course of carrying out our audit we have attempted to obtain sufficient andappropriate audit evidence to satisfy ourselves that the items reflected in the financialstatements are fairly stated but failed:

In case of receipts for the calls in arrears which are received in cash during the yearwe have not been provided with the details of the allottee to whom the same were allotted.The management has represented that the same was an accounting mistake in the previousyears which has been rectified this year

The Company has not charges depreciation on the fixed assets during the year andaccordingly provision of Accounting Standards relating to depreciation and Deferred TaxAsset / Liabilities have not been followed. The management represented that the amount ofdepreciation being negligible the same has been not been incorporated.

The closing stock has been calculated and certified by management only and we have notbeen provided with the basis of calculation.

We have not been provided with the balance confirmation or any other details for thetrade receivable and trade payable shown in the books of accounts We have not been ableto verify the transactional documents relating the sale and purchase of goods further thebank statements of only 2 out of 6 account are shown to us for verification according tothe management the other accounts are dormant and therefore the same have not beencollected from bank.

As a result of these matters we were unable to determine whether any adjustments mighthave been found necessary in respect of recorded or unrecorded transactions and accountsreceivable/payable in the Balance Sheet and the corresponding elements making up theStatement of Profit and Loss and Cash Flow statement.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016("the Order")issued by the central government in terms of section 143(11) of the Act we give in a "AnnexureA" a statement on the matter specified in paragraph 3 and 4 of the order to theextent 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 it appears from our examination of those books;

(c) The Balance Sheet the Statement of Profit and Loss and the Cash FlowStatement dealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

(e) On the basis of the written representations received from the directors as on 31/03/2017and taken on record by the Board of Directors none of the directors is disqualified as on31/03/2017 from being appointed as a director in terms of Section 164 (2) of theAct;

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B".

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

i. The Company has no pending litigations therefore the same is not disclosed

ii. In our opinion and as per the information and explanation provided to us theCompany did not have any long-term contracts including derivative contracts for whichthere 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.

iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on the managementrepresentation the disclosures are in accordance with books of account maintained by theCompany and as produced to us by the Management.

For M A A K & Associates
(Chartered Accountants)
F.R.N:.135024W
CA Marmik G. Shah
(Partner)
M. No. : 133926

"ANNEXURE A" TO THE INDEPENDENT AUDITOR'S REPORT

Reports under The Companies (Auditor's Report) Order 2016 (CARO 2016) for the yearended on 31st March 2017

To

The Members of HEMO ORGANIC LIMITED

(i) In Respect of Fixed Assets

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

(b) Fixed assets have been physically verified by the management at reasonableintervals; No material discrepancies were noticed on such verification.

(c) The title deeds of immovable property are held in name of the company

(ii) In Respect of Inventories

Physical verification of inventory has been conducted at reasonable intervals by themanagement.

(iii) Compliance under section 189 of The Companies Act 2013

As informed the company company has not granted any loans secured or unsecured tocompanies firms or other parties covered in the register maintained under section 189 ofthe Companies Act 2013.

(a) N.A (b) N.A (c) N.A

(iv) Compliance under section 185 and 186 of The Companies Act 2013

While doing transaction for loans investments guarantees and security provisions ofsection 185 and 186 of the Companies Act 2013 have been complied with.

(v) Compliance under section 73 to 76 of The Companies Act 2013 and Rulesframed thereunder while accepting Deposits

The company has not accepted any Deposits.

(vi) Maintenance of cost records

To the best of our knowledge and as explained the Central Government has notprescribed maintenance of cost records under sub-section (1) of section 148 of theCompanies Act 2013 for the products of the company.

(vii) Deposit of Statutory Dues

(a) According to the information and explanation given to us the company is regular indepositing with appropriate authorities undisputed statutory dues including income taxsales-tax value added tax cess and any other statutory dues applicable to it.

(b) According to the information and explanation given to us the management there is nodispute with the revenue authorities regarding any duty or tax payable.

(viii) Repayment of Loans and Borrowings

Based on our audit procedures and as per the information and explanations given by themanagement we are of the opinion that the company has not raised any amount by way ofloan from any financial institution or bank.

(ix) Utilization of Money Raised by Public Offers and Term Loan For which theyRaised

The company has not raised any money by way of initial public offer or further publicoffer {including debt instruments) and term loans. Hence this clause is not applicable.

(x) Reporting of Fraud During the Year

Based on our audit procedures and the information and explanation made available to usno such fraud noticed or reported during the year.

(xi) Managerial Remuneration

Managerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct.

(xii) Compliance by Nidhi Company Regarding Net Owned Fund to Deposits Ratio

As per information and records available with us The company is not Nidhi Company.

(xiii) Related party compliance with Section 177 and 188 of companies Act - 2013

Yes All transactions with the related parties are in compliance with section 177 and188 of Companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable accounting standards.

(xiv) Compliance under section 42 of Companies Act - 2013 regarding Privateplacement of Shares or Debentures

Based upon the audit procedures performed and the information and explanations given bythe management the company has not made any preferential allotment or private placementof shares or fully or partly convertible debentures during the year under review

(xv) Compliance under section 192 of Companies Act - 2013

The company has not entered into any non-cash transactions with directors or personsconnected with him.

(xvi) Requirement of Registration under 45-IA of Reserve Bank of India Act 1934

The company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act.

For M A A K & Associates
(Chartered Accountants)
F.R.N:.135024W
CA Marmik G. Shah
Date : May 30 2017 (Partner)
Place : Ahmedabad M. No. : 133926

"Annexure B" to the Independent Auditor's Report of even date on theStandalone Financial Statements of HEMO ORGANIC LIMITED Company 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 HEMOORGANIC LIMITED Company Limited ("The Company") as of March 31 2017 inconjunction with our audit of the standalone financial statements of the Company for theyear 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 ("ICAI"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' 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 and deemedto be prescribed under section 143(10) of the Companies Act 2013 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial control system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included assessing the riskthat a material weakness exists and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over 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 material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.

For M A A K & Associates
(Chartered Accountants)
F.R.N:.135024W
CA Marmik G. Shah
Date : May 30 2017 (Partner)
Place : Ahmedabad M. No. : 133926