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Hemo Organic Ltd.

BSE: 524590 Sector: Industrials
NSE: N.A. ISIN Code: INE422G01015
BSE 00:00 | 09 Dec 14.45 0
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NSE 05:30 | 01 Jan Hemo Organic Ltd
OPEN 14.45
PREVIOUS CLOSE 14.45
VOLUME 3
52-Week high 20.95
52-Week low 14.45
P/E
Mkt Cap.(Rs cr) 5
Buy Price 16.25
Buy Qty 3.00
Sell Price 14.45
Sell Qty 152.00
OPEN 14.45
CLOSE 14.45
VOLUME 3
52-Week high 20.95
52-Week low 14.45
P/E
Mkt Cap.(Rs cr) 5
Buy Price 16.25
Buy Qty 3.00
Sell Price 14.45
Sell Qty 152.00

Hemo Organic Ltd. (HEMOORGANIC) - Auditors Report

Company auditors report

TO THE MEMBERS OF HEMO ORGANICS LIMITED

Report on the Audit of the Standalone FinancialStatements

Opinion

We have audited the accompanying standalone Ind AS financial statements of HEMOORGANICS LIMITED (“the Company”) which comprise the Balance Sheet as at 31stMarch 2019 the Statement of Profit and Loss the Statement of Changes in Equity and theStatement of Cash Flows for the year then ended and summary of the significant accountingpolicies and other explanatory information (herein after referred to as “standaloneInd AS financial statements”).

Except as specified in the disclaimer of opinion para in our opinion and to the bestof our information and according to the explanations given to us standalone Ind ASfinancial statements give the information required by the Act in the manner so requiredand give a true and fair view in conformity with the accounting standards prescribed undersection 133 of the Act read with companies Rules 2015 as amended (IND AS) and otheraccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2019 its profit (including other comprehensive income)changes in equity and its cash flows for the year ended on that date.

Basis of Disclaimer

We have conducted our audit of the standalone Ind AS financial statements in accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Ourresponsibility under those Standards are further described in Auditor's Responsibility forthe Audit of the standalone financial statements section of our report. We are independentof the company in accordance of with code of ethics issued by ICAI together with theindependence requirement that are relevant to our audit of standalone financial statementunder the provisions of the Act and the rules made there under and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the ICAI's Codeof Ethics.

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:

1. The Company has not charged depreciation on the fixed assets during the year andaccordingly provision of Indian Accounting Standards relating to depreciation and DeferredTax Asset / Liabilities have not been followed. The management represented that the amountof depreciation being negligible the same has been not been incorporated.

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

3. 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.

4. We have not been able to verify the transactional documents relating bank statementsof four out of five account are shown to us for verification according to the managementthe other accounts are dormant and therefore the same have not been collectedfrom 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.

Key Audit Matters

Sr No Key Audit Matters How Our Audit addressed the Key Audit Matter
1 Revenue Recognition: Company is engaged in the trading activities and there is no major transaction during the current financial year. We have reviewed the transaction of purchase and sale and policy of recognition and accounting of the same.

Other Information

The company's management and board of directors are responsible for the otherinformation. The other information comprises Board's Report on corporate governance andBusiness Responsibility report but does not include the consolidated financial statementsstandalone financial statement and our auditor's report thereon.

Our opinion on the financial statement does not cover the other information and we donot express any form of assurance conclusion thereon. In connection with our audit ofstandalone financial statements our responsibility is to read the other information andin doing so consider whether the other information is materially inconsistent with thestandalone financial statements or our knowledge obtained during the course of our auditprocedures or otherwise appear to be materially misstated.

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

Management's Responsibility for the Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(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 the stateof affairs Profit (including other comprehensive income) changes in equity and cashflowsof the Company in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) prescribed under section 133 of theAct.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safe guarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the standalone Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud 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.

Board of directors is also responsible for overseeing the company's financial reportingprocess.

Auditor's Responsibility

Our objectives are to obtain reasonable assurance about whether standalone 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 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 aggregate they couldreasonably be expected to influence the economic decision of users taken on the basis ofthese standalone financial statements.

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

• Identify and assess the risk of material misstatement of the standalonefinancial statements weather due to fraud or error design and perform audit procedureresponsive to those risk and obtain evidence that us sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud for one resulting from error as fraud may involve collusionforgery intentional omission misrepresentation or the override of internal control.

• Obtain an understanding of internal financial control relevant to the audit inorder to design audit procedure that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether thecompany has adequate internal financial control system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by the 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 standalone 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 standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone 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

1. 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“Annexure A” a statement on the matters specified in paragraphs 3 and 4 of theOrder.

2. 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 Statement of Changes in Equityand the Cash Flow Statement dealt with by this Report are in agreement with the books ofaccount.

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting Standards prescribed under section 133 of the Act.

(e) On the basis of the written representation received from the directors as on as on31st March and taken on record by the board of directors none of the directorsis disqualified as on 31st March 2019 from being appointed as director in termsof Section 164(2) of the Act.

(f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate 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. There is no pending litigation on the company therefore the same is not required tobe disclosed.

ii. the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company and

Date: 29/05/2019 For M A A K & Associates
Place: Ahmedabad (Chartered Accountants)
FRN :135024W
Archit A. Shah
Partner
M. No.: 137390

Annexure A to the Independent Auditors' Report of HEMO ORGANICS LIMITED (Referred to inour report of even date)

With reference to the Annexure A referred to in the Independent Auditors' report to themembers of the Company on the standalone Ind AS financial statements for the year ended31st March 2019 we report the following:

I. In Respect of Fixed Assets

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets on the basis of available information.

(b) As per the information and explanations given to us the management at reasonableintervals during the year in accordance with a programme of physical verificationphysically verified the fixed assets and no material discrepancies were noticed on suchverification as compared to the available records.

(c) The Company does not hold the immovable property. Therefore the provisions ofClause 3(i) (c) of the said Order are not applicable to the Company.

II. In Respect of Inventories

As per the information and explanation given by management they have verified theinventory from time to time and no discrepancies were found in the same.

III. Compliance under section 189 of The Companies Act 2013

As per information and explanation given to us and subject to the observations givenin the main audit report the company has not granted loans secured or unsecured tocompanies firms or other parties covered in the register maintained under section 189 ofthe Companies Act 2013.

IV. Compliance under section 185 and 186 of The Companies Act 2013

In our opinion and according to information and explanations given to us the Companyhas complied with provisions of Section 185 and 186 of the Companies Act 2013 in respectof grant of loans making investments and providing guarantees and securities asapplicable.

V. Compliance under section 73 to 76 of The Companies Act 2013 and Rules framedthereunder while accepting Deposits

As per information and explanation given to us the Company has not accepted anydeposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptanceof Deposits) Rules 2014 (as amended). Accordingly the provisions of clause 3(v) of theOrder are not applicable.

VI Maintenance of cost records

The Company is not required to maintain cost records pursuant to the Rules made by theCentral Government for the maintenance of cost records under sub-section (1) of section148 of the Companies Act 2013.

VII. Deposit of Statutory Dues

(a) The company is regular in depositing the undisputed statutory dues includingprovident fund employees' state insurance income tax sales tax wealth tax servicetax custom duty excise duty GST Cess and other statutory dues applicable to theCompany with the appropriate authorities. No undisputed amounts payable in respect of theaforesaid statutory dues were outstanding as at the last day of the financial year for aperiod of more than six months from the date they became payable.

(b) As informed to us by the management there is no dispute with the revenueauthorities regarding any duty or tax payable.

VIII. Repayment of Loans and Borrowings

According to the information and explanation given to us the company has not defaultedin any loan from financial institution bank or debenture holders.

ix . Utilization of Money Raised by Public Offers and Term Loan For which they Raised

According to the information and explanations give to us and based on our examinationof the records of the Company the Company has not raised any moneys by way of initialpublic offer or further public offer (including debt instruments) and has not obtained anyterm loans during the year. Accordingly paragraph 3(ix) of the Order is not applicable tothe Company.

x. Reporting of Fraud During the Year

Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that no fraud by the Company or no fraud on the Companyby the officers and employees of the Company has been 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 the Company is not a Nidhi Company.Therefore the provisions of clause 3(xii) of the order are not applicable to the Companyand hence not commented upon.

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

According to the information and explanations given by the management transactionswith the related parties are in compliance with section 177 and 188 of Companies Act 2013where applicable and the details have been disclosed in the notes to the financialstatements as required by the applicable accounting standards.

xiv. Compliance under section 42 of Companies Act - 2013 regarding Private placement ofShares or Debentures

According to the information and explanations given to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence reporting requirements under clause 3(xiv) are not applicable tothe Company and not commented upon.

xv. Compliance under section 192 of Companies Act - 2013

According to the information and explanations given by the management the Company hasnot entered into any non-cash transactions with directors or persons connected with him asreferred to in section 192 of Companies Act 2013.

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

According to the information and explanations given to us the provisions of section45-IA of the Reserve Bank of India Act 1934 are not applicable to the company.

Date: 29/05/2019 For M A A K & Associates
Place: Ahmedabad (Chartered Accountants)
FRN :135024W
Archit A Shah
Partner
M. No.: 137390

Annexure B to the Auditor's Report

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 (“the Company”) as of March 31 2019 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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 includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls and both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the internal financial controls system over financialreporting.

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 2019 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.

Date: 29/05/2019 For M A A K & Associates
Place: Ahmedabad (Chartered Accountants)
FRN :135024W
Archit A. Shah
Partner