Report on the Financial Statements:
We have audited the attached Balance Sheet of SUN SOURCE (INDIA) LIMITED as at31st March 2017 the Profit & Loss Statement and Cash Flow Statement for the yearended on that date annexed thereto. These Financial Statements are the responsibility ofthe
Company's management. Our responsibility is to express an opinion on these Financial
Statements based on our audit.
Management's Responsibility for the Standalone Financial Statements and for InternalFinancial Controls over Financial Reporting
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 preparation ofthese financial statements that give a true and fair view of the financial position andfinancial performance of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section 133of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding 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 ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
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 company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit and to express an opinion on the Company's internal financial controlsover financial reporting based on our audit. We conducted our audit in accordance with theStandards on Auditing issued by the Institute of Chartered Accountants of India.
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 and the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the financial statements are freefrom material misstatement and whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects. An audit involves performing procedures to obtain audit evidence aboutthe amounts the disclosures in the financial statements and adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness.
Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exits and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial controls relevant to theCompany's preparation of the financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the Company's internal financial controls system over financial reporting andthe standalone financial statements.
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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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.
In our opinion and to the best of our information and according to the explanationsgiven to us the standalone financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
(a) in the case of the Balance Sheet of the state of affairs of the Company as on 31stMarch 2017; (b) in the case of the Statement of the Profit & Loss of the Loss of theCompany for the year ended on that date. (c) in the case of the Cash Flow Statement of thecashflows of the Company for the year ended on that date.
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 2017 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. It is Recommended to the Management that some of the policies needsto be adequately documented to strength the internal controls.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order 2015 ("the Order")issued by the
Central Government of India in terms of sub-section (11) of section 143 of the Act wereport that.
(a) we have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit; (b) in our opinionproper books of account as required by law have been kept by the Company so far as appearsfrom our examination of those books; (c) the Balance Sheet and Statement of Profit andLoss dealt with by this Report are in agreement with the books of account; (d) in ouropinion the Balance Sheet and Statement of Profit and Loss comply with the AccountingStandards referred to in section 133 of the Companies Act 2013 read with Rule 7 ofCompanies Rule 2014; (e) on the basis of written representations received from thedirectors as on March 31 2017 and taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2017 from being appointed as a director interms of sub-section (2) of section 164 of the Companies Act 2013 (f) There is nothing todisclose which is having adverse effect on the functioning of the Company (g) With respectto the other matters included in the Auditor's Report and to our best of our informationand according to the explanations given to us: a. the Company does not have any pendinglitigations which would impact its financial position b. the Company did not have anylong-term contracts including derivatives contracts for which there were any materialforeseeable losses c. there were no amounts which required to be transferred to theInvestor d. Education and Protection Fund by the Company e. The Company has providedrequisite disclosures in its financial statements as to holdings as well as dealings inSpecified Bank Notes during the period from 8 November 2016 to 30 December 2016 and are inaccordance with the books of accounts maintained by the Company Refer Note No.31.
ANNEXURE TO AUDITORS' REPORT
As required by the Companies (Auditor's Report) Order 2015 issued by the Central
Government in terms of Section 143(11) of the Companies Act 2013 we give below astatement on the matters specified in the said Order.
(i) (a) The Company has maintained proper records showing the descriptionclassification location original cost and quantity of the Fixed Assets;
(b) As informed to us the Fixed Assets have been physically verified by the managementduring the year. We are informed that no material discrepancies were noticed by themanagement on such verification.
(c) Based on our audit procedures and the information and explanations given by themanagement the title deeds of immovable properties are held in the name of the company.
(ii) The Company does not have inventory during the year.
(iii) The Company has not granted any loans secured or unsecured to Companies
Firms or other parties covered in the register maintained under section 189 of theCompanies Act 2013. Hence the provisions of Sub-Clause (a) (b) and
(c) are not applicable to the company.
(iv) The company has not granted any loan made investment or provided any guaranteeand security falling under the provisions of Section 185 and 186 of the Companies Act2013.
(v) In our opinion and according to the information and explanations given to us thecompany has not taken any deposits from directives issued by the Reserve Bank Of Indiaand as per the provisions of the Section 73 and 76 of the Companies Act2013
(vi) As per the information and explanation given to us in respect of the class of theindustry the company falls under the maintenance of cost records have not been prescribedby the Central Government under section 148(1)(d) of the Companies Act 2013.
(vii) (a) The Company is generally regular in depositing where applicable undisputedstatutory dues including Provident Fund Employees State Insurance Income Tax Welathtax Customs Duty Excie Duty Cess Service Tax value Added Tax and other statutory dueswith the appropriate authorities. There are no undisputed statutory dues as at 31stMarch 2017 which are outstanding for a period exceeding six months from the date itbecomes payable.
(b) According to the information and explanations given to us there are no pendingdues related to sales tax/ income tax/ customs duty/ wealth tax/ excise duty and Cesswhich have not been deposited on account of any dispute.
(viii) Based on our audit procedures and on the information and explanations given bythe management we are of the opinion that the Company has not defaulted in repayment ofdues to any financial institutions bank and debenture holders as at the Balance Sheetdate.
(ix) ` The company has not availed any term loan from Bank and Financial Institutionsduring the year. (x) During the course of our examination of the Books and records of thecompany carried out in accordance with the generally accepted accounting practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of material fraud on or by the company noticed or reported during theyear nor have we been informed of such case by the management.
(xi) According to the information and explanation given to us no remuneration is paidduring the year.
(xii) The Company is not a Nidhi Company as per the Nidhi Rules 2014.
(xiii) During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted accounting principles in India andaccording to the information and explanations given to us all transactions with therelated parties are in compliance with the sections 177 and 188 of the Companies Act2013.if applicable and the details have been disclosed in the Financial Statements etc.as required by the applicable accounting standards. (xiv) The Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year under the review.
(xv) The Company has not entered into any non-cash transactions with directors orpersons connected with him and no provisions of Section 192 of Companies Act 2013 havebeen violated.
(xvi) The Company is not a NBFC hence no registration under the section 45-IA underthe perview of the Reserve Bank of India Act 1934 is applicable.
For Joshi Jain and Co Chartered Accountants ICAI Registration No 128820W
Sachin Joshi Proprietor
Membership No 119560 Place : Vadodara Date : 15th May 2017