Report on the Financial Statements:
We have audited the attached Balance Sheet of SUN SOURCE (INDIA) LIMITED as at31st March 2018 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 FinancialStatements based on our audit.
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 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.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management aswell as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner 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 2018;
(b) in the case of the Statement of the Profit & Loss of the Profit of the Companyfor the year ended on that date.
(c) in the case of the Cash Flow Statement of the cashflows of the Company for the yearended on that date.
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 ofthe Act we report 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 opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;
(c) the Balance Sheet and Statement of Profit and Loss dealt with by this Report are inagreement with the books of account;
(d) in our opinion the Balance Sheet and Statement of Profit and Loss comply with theAccounting Standards referred to in section 133 of the Companies Act 2013 read with Rule7 of Companies Rule 2014;
(e) on the basis of written representations received from the directors as on March 312018 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2018 from being appointed as a director in terms of sub-section (2) ofsection 164 of the Companies Act 2013
(f) There is nothing to disclose which is having adverse effect on the functioning ofthe Company
(g) With respect to the other matters included in the Auditor's Report and to our bestof our information and according to the explanations given to us:
a. the Company does not have any pending litigations which would impact its financialposition
b. the Company did not have any long-term contracts including derivatives contracts forwhich there were any material foreseeable losses
c. there were no amounts which required to be transferred to the Investor Education andProtection Fund by the Company
ANNEXURE TO AUDITORS' REPORT
As required by the Companies (Auditor's Report) Order 2015 issued by the CentralGovernment 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 Firmsor other parties covered in the register maintained under section 189 of the CompaniesAct 2013. Hence the provisions of Sub-Clause (a) (b) and (c) are not applicable to thecompany.
(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 dues with the appropriate authorities.There are no undisputed statutory dues as at 31st March 2018 which areoutstanding for a period exceeding six months from the date it becomes 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 the companycarried out in accordance with the generally accepted accounting practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud on or by the company noticed or reported during the year norhave 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 any preferential allotment or private placement ofshares or fully or partly convertible debentures 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.
(xV) The Company is not a NBFC hence no registration under the section 45-IA under theperview of the Reserve Bank of India Act 1934 is applicable.
For Joshi Jain and Co
ICAI Registration No 128820W
Membership No 119560
Place : Vadodara
Date : 30th May 2018
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT ON THE STANDALONE FINANCIAL STATEMENTS OFSUN SOURCE (INDIA) LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 ofSection143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of SUNSOURCE (INDIA) LIMITED ("the Company") as of March 31 2018 in conjunctionwith our audit of standalone financial statements of the Company for the year ended onthat 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. 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 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 controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's 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 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 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 2018 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 Joshi Jain & Co.
ICAI Registration No 128802W
Membership No 119560
Place : Vadodara
Date : 30th May 2018.