Hemo Organic Limited Reports Quarterly Loss and Receives Qualified Audit Opinion

Hemo Organic Limited , a company listed on the BSE, has reported a net loss of Rs. 8.08 lakhs for the quarter ended September 30, 2025, according to its recently released unaudited financial results. This marks a significant downturn from the profit of Rs. 16.39 lakhs recorded in the corresponding quarter of the previous year.

Financial Performance

The company's financial performance for the quarter shows a stark contrast to its previous year's results:

The company's revenue from operations for the quarter was minimal at Rs. 0.01 lakhs, while total expenses stood at Rs. 4.13 lakhs.

Auditor's Qualified Opinion

The company's auditors have issued a qualified opinion on the financial results. The qualification stems from the lack of balance confirmations for trade receivables and trade payables in the books of accounts. This raises concerns about the accuracy and completeness of the financial statements.

The auditors stated in their report, "We have not been provided with the balance confirmation or any other details for the trade receivable and trade payable shown in the books of accounts."

Management's Response

The Board of Directors has acknowledged the auditor's qualification and indicated that they have addressed the issue. However, specific details on how this matter has been resolved were not provided in the available information.

Other Key Points

• The company's cash and cash equivalents decreased from Rs. 0.87 lakhs at the beginning of the half-year to Rs. 0.05 lakhs by September 30, 2025.
• Hemo Organic Limited operates in a single segment, as per Ind AS 108 on segment reporting.
• The company's Board of Directors noted the rejection of a waiver application filed on May 19, 2025, for non-compliance with regulation 6(1) of SEBI (LODR) Regulations, 2015 for multiple quarters. The associated penalty has been paid by the company on October 30, 2025.

Looking Ahead

The Board of Directors is considering a proposal for raising funds through various instruments, including equity shares and warrants. This matter is set for further deliberation in the near future, which could potentially impact the company's financial position and operations.

Investors and stakeholders will likely be watching closely to see how Hemo Organic Limited addresses its current financial situation and the concerns raised by the auditors in the coming quarters.