We have audited the standalone financial statements of Hem Holding & Trading Limited (the
Company), which comprise the standalone balance sheet as at 31st March 2024 and the
standalone statement of profit and loss (including other comprehensive income), the standalone
statement of changes in equity and the standalone statement of cash flows for the year then
ended, and notes to the standalone financial statements, including a summary of the significant
accounting policies and other explanatory information (hereinafter referred to as the 'standalone
financial statements').
In our opinion and to the best of our information and according to the explanations given to us,
the aforesaid standalone 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
the with the Indian Accounting Standards prescribed under section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015, as amended, (“Ind AS”) and other
accounting principles generally accepted in India, of the state of affairs of the Company as at
31st March 2024, profit and total comprehensive income, changes in equity and its cash flows
for the year ended on that date.
Basis for Oninimj
We conducted our audit in accordance with the Standards on Auditing ('SAs') specified under
section 143(10) of the Act. Our responsibilities under those SAs are further described in the
Auditor's Responsibilities for the Audit of the Standalone 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 (the TCAT) together with the ethical
requirements that are relevant to our audit of the standalone financial statements under the
provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the Code of Ethics. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Kev Audit
Key audit matters are those matters that, in our profess,onal judgment, were of most
significance m our audit of the Standalone Financ.al Statements of the current period These
matters were addressed m the context of our audit of the Standalone Financial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters. We have determined the mattem described below to be the key audit matteis to be
communicated in our report. - NIL
Principal Audit Procedures:
We have started our audit procedures with understanding of the internal control environment
related to impairment loss allowance. Our procedures over internal controls focused on
recognition and measurement of impairment loss allowance. We assessed the design and
tested the operating effectiveness of the selected key controls implemented by the Company.
Ind Ac°,no“ced Whe[her the impairmem meth°dology used by the company is in line with
Ind AS 109 Financial instruments" requirements. Particularly we assessed the approach of
the Company regarding definition of default, Probability of Default, Loss Given Default and
incorporation of forward-looking information for the calculation of ECL.
For loans and advances which are assessed for impairment on a portfolio basis we
performed particularly the following procedures:
• We tested the reliability of key data inputs and related management controls;
• We checked the stage classification as at the balance sheet date as per definition of
default of the company;
• We validated the ECL model and calculation by involving our Information Technology
Expert,
• We have also calculated the ECL provision manually for a selected sample; and
• We have assessed the assumptions made by the Company in making accelerated
provision considering forward looking information and based on an event in a particular
geographical range.
For loans and advances which are written off during the year under audit, we read and
understood the methodology and policy laid down and implemented by the Company in this
regard along with its compliance on sample basis.
Other InfnrnmHmj
The Company's Board of Directors is responsible for the other information The other
information comprises the information included in the Management Discussion & Analysis,
Director's Report and Corporate Governance Report but does not include the Standalone
Financial Statements and our-auditor's report thereon.
Our opinion on the Standalone Financial Statements does not cover the other informatioi^^
and we do not express any form of assurance conclusion thereon. IjMl
T . . , Y*\ ^
In conned,on with our audit of the Standalone Financial Statements, our responsibility is t<\k»o
read the other information and, in doing so, consider whether the other information is
materially inconsistent with the Standalone Financial Statements or our knowledge obtained
in the 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.
Management's Responsibility for the Standalone Financial StatemenR
I he 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 of these standalone financial
statements that give a true and fair view of the financial position, financial performance, and cash
flows of the Company in accordance with the accounting principles generally accepted in India,
including the Ind AS specified under section 133 of the Act. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act for
safeguarding of the assets of the Company and tor preventing and detecting frauds and other
irregularities, selection and application ot 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 statement 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 Company's
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 also responsible for overseeing the Company's financial reporting
process.
Auditor's Responsibilities 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
auditor's 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 ot an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
Companies Act, 2013, we are 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 management's 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 Company's
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor's 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 auditor's
report. However, future events or conditions may cause the Company to cease to continue
as a going concern.
• Evaluate the overall presentation, structure and content of the 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 standalone financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a reasonably
knowledgeable user of the standalone 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 ot our work; and (ii) to evaluate the effect of any identified misstatements
in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the 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 auditor's 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 intere^JT^s
benefits of such communication.
few
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor’s Report) Order, 2020 ("the Order"), issued by the~"^
Central Government of India in terms of sub-section (11) of section 143 of the Companies Act,
2013, we give in the Annexure “B” statement on the matters specified in paragraphs 3 and 4 of
the Order, to the extent applicable.
1. 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 best of
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 the
Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the
Accounting Standards 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 st March,
2024 taken on record by the Board of Directors, none of the directors is disqualified as on
31st March, 2024 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 in "Annexure A".
(g) With respect to the other matters to be included in the Auditor's Report in accordance
with the requirements of section 197(16) of the Act, as amended, no remuneration has
been paid/ provided 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 Auditor's Report in accordance
with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to
the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its
financial position.
u. The Company did not have any long-term contracts including derivative contracts
for which there were any material foreseeable losses during the year ended 31st
March, 2024.
ni. There were no amounts which were required to be transferred to the Invest/f^^
Education and Protection Fund by the Company.
iv. (a) The Management has represented that, to the best of its knowledge and belief,
funds (which are material either individually or in the aggregate) 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 entity (“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 (which are material either individually or in the aggregate) have been received
by the Company from any person or entity, including foreign entity (“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 the audit procedures that have been 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) and (ii) of Rule 11(e), as
provided under (a) and (b) above, contain any material misstatement.
v. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining
books of account using accounting software which has a feature of recording audit
trail (edit log) facility is applicable to the Company with effect from April 1, 2023
and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors)
Rules, 2014 is applicable for the financial year ended March 31,2024.
Based on our examination which included test checks, the company has used an
accounting software for maintaining its books of account which has a feature of
recording audit trail (edit log) facility and the same has operated throughout the year
for ail relevant transactions recorded in the software. Further, during the course of
our audit we did not come across any instance of audit trail feature being tampered
with. As per proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is
applicable from April 1, 2023, reporting under Rule 11(g) of the companies (Audit
and Auditors) Rules, 2014 on preservation of audit trail as per the statutory
requirements for record retention is not applicable for the financial year ended March
31,2024.
For M/s Harsh Jain & Associates,
(Chartered Accountants),
FRN- 007639C
V' |Or
CA Harsh Jain \. > _ Jfey
(Partner)
M. No. 076736 p|ace; Durg
UDIN- 24076736BKDQGZ6056 Date _ 30.05.2024
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