Sunrise Industrial Traders Ltd.
|BSE: 501110||Sector: Financials|
|NSE: N.A.||ISIN Code: INE371U01015|
|BSE 00:00 | 17 May||Sunrise Industrial Traders Ltd|
|NSE 05:30 | 01 Jan||Sunrise Industrial Traders Ltd|
Sunrise Industrial Traders Ltd. (SUNRISEINDL) - Auditors Report
Company auditors report
TO THE MEMBERS OF SUNRISE INDUSTRIAL TRADERS LIMITED
Report on the Standalone IND AS Financial Statements
We have audited the accompanying standalone financial statements ofSUNRISE INDUSTRIAL TRADERS LIMITED ("the Company") which comprise the BalanceSheet as at 31 March 2021 the Statement of Profit and Loss (including other comprehensiveIncome) the Statement of cash flows and the Statement for changes in equity for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation (herein after referred to as "Standalone IND AS Financial Statements)
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31 March 2021the Profit and total comprehensive Income changes in equity and its cash flows for theyear ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statement inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theCompanies Act 2013. Our responsibilities under those Standards are further described inthe Auditor's Responsibilities for the Audit of the Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules made there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.
Description of Key Audit Matters as follows:-
Information Other than the Standalone Financial Statements andAuditor's Report Thereon
The Company's Board of Directors is responsible for the preparation ofthe other information. The other information comprises the information included in theManagement Discussion and Analysis Board's Report including Annexure to Board's ReportBusiness Responsibility Report Corporate Governance and Shareholder's Information butdoes not include the standalone financial statements and our auditor's report thereon.
Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance inclusion thereon.
In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.
If based on the work we have performed we conclude that there is amaterial misstatement of this other information; we are required to report that fact. Wehave nothing to report in this regard.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these Ind AS standalone financial statements that give a true and fair viewof the financial position financial performance including other comprehensive incomecash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)specified under section 133 of the Act read with relevant rules issued there under.
This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Ind AS financial statement that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing thecompany's financial reporting process
Auditor's Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also
Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal financial controls relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonable ness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and event s in a manner thatachieves fair presentation.
Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Emphasis of Matter
We draw attention to Note: 4 to the standalone financial results whichdescribes that the extent to which the COVID-19 and second wave Pandemic will impact theCompany's results will depend on future developments which are highly uncertain.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143 (3) of the Act we report that:
(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
(b) In our opinion proper books of account as required by law havebeen 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 (includingother comprehensive income) change in equity and Cash Flow Statement dealt with by thisReport are in agreement with the books of account.
(d) In our opinion the aforesaid financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
(e) On the basis of the written representations received from thedirectors as on 31 March 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on 31 March 2021 from being appointed as a director in termsof Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operative effectiveness of such controlsrefer to our separate Report in "Annexure A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.
(g) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:
(i) The Company has disclosed the impact of pending litigation on itsfinancial position in its standalone Ind AS financial statements refer Note No (25) to thefinancial statements.
(ii) The Company has made provision as required under applicable law oraccounting standards for material foreseeable losses if any on long term contractsincluding derivative contracts.
(iii) There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.
(h) The company has provided for managerial remuneration in accordancewith the requisite approvals mandated by the provisions of Section 197 read with ScheduleV of the act.
2. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government in terms of section 143(11) ofthe Act we give in "Annexure B" a statement on the matter specified in theparagraph 3 and 4 of the Order.
ANNEXURE"A"TO THE INDEPENDENT AUDITOR'S REPORT
Referred in paragraph 1(f) under "Report on Legal and RegulatoryRequirement" section of our report of even date on the Standalone Ind AS FinancialStatement Of Sunrise Industrial Traders Limited
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013
1. We have audited the internal financial controls over financialreporting of Sunrise Industrial Traders Limited (the "Company") as of March 312021 in conjunction with our audit of the standalone Ind As financial statements for theyear ended on that date.
2. Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
3. Auditors' Responsibility
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit.
We have conducted our audit in accordance with the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting (the "GuidanceNote") and the Standards on Auditing issued by ICAI and deemed to be prescribed undersection 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects to the extent applicable.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.
4. Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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.
5. Inherent Limitations of Internal Financial Controls over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2021 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.
THE ANNEXURE B REFERRED TO IN INDEPENDENT AUDITORS' REPORT TO THEMEMBERS OF THE COMPANY ON THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH. 2021 WEREPORT THAT:
1. a. The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.
b. As explained to us the Company has a phased program for physicalverification of the fixed assets of the company. In our opinion the frequency ofverification is reasonable considering the size of the Company. No material discrepancieswere noticed on such verification carried on during the year as compared with theavailable records.
c. According to the information and explanation given to us and on thebasis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the company.
2. The securities held as inventory have been verified from thestatement of holding from the depository participants and by physical verification of theshare certificates in case of inventory held in physical form by the management duringthe year/at the year end. In our opinion the frequency of verification is reasonable.
In our opinion the procedures of physical verification of inventoryfollowed by the Management are reasonable and adequate in relation to the size of theCompany and the nature of its business.
3. According to the information and explanation given to us theCompany's has not granted any loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties listed in the register maintained under section189 of the Companies Act 2013 and hence sub clause (a) (b) (c) are not applicable.
4. In our opinion and according to the information and explanationgiven to us Section 185 & 186 of the Companies Act2013 is not applicable since thecompany has not provided / given any loan investments guarantees and security duringthe year.
5. The company has not accepted any deposits from the public inaccordance with the provisions of sections 73 to 76 of the Act and the Rules framed thereunder.
6. According to information and explanation given to us themaintenance of cost records has not been prescribed/ specified by the Central Governmentunder sub-section 1 of Section 148 of the Companies Act 2013 for any of the servicesrendered by the company.
7.1 The company is generally regular in depositing undisputed statutorydues including provident fund employees state insurance income tax sales tax wealthtax service tax duty of customs duty of excise value added tax cess and any otherstatutory dues with the appropriate authorities and we have been informed that there areno arrears of outstanding statutory dues as at the last day of the financial year underaudit for a period of more than six months from the date they became payable.
7.2 Details of the particulars of dues of income-tax as at 31stMarch2021 which have not been deposited on account of a disputes are as follows:
8. The Company does not have any loans or borrowings from any financialinstitutions banks government or debenture holder during the year. Accordinglyparagraph 3(viii) of the order is not applicable.
9. The company has not raised any money by way of Initial public offeror further public offer (Including debt instrument) and term loans during the year.Accordingly paragraph 3(ix) of the order is not applicable.
10. During the course of our examination of the books and records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of fraud on or by the Company its officers or employees noticed orreported during the period nor have we been informed of such case by the management.
11. According to the information and explanation given to us and basedon our examination of the books and records of the Company we are of the opinion that themanagerial 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.
12. According to the information and explanation given to us theprovisions of any Special Statute applicable to Nidhi Companies are not applicable to theCompany; the provisions of this clause are not applicable to the Company.
13. According to the information and explanation given to us and basedon our examination of the records all the transactions with related parties are incompliance with section 177 and 188 of the Companies Act 2013 and all the details havebeen disclosed in the financial statements as per Accounting Standard-18.
14. According to the information and explanation given to us and basedon our examination of the records of the Company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during the periodunder review.
15. According to the information and explanation given to us and basedon our examination of the records of the Company has not entered into any non-cashtransactions during the period with directors or persons connected with him.
16. The Company being an investment company is registered undersection 45-IA of the Reserve Bank of India Act 1934.