sun retail ltd share price Auditors report


To the Members of SUN RETAIL LIMITED.

Opinion

We have audited the accompanying financial statements of Sun Retail Limited (“the Company”), which comprise the balance sheet as at March 31, 2023, and the Statement of Profit and Loss and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013 (‘Act) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, its Loss and cash flows for the year ended on that date.

Basis for opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013, as amended ("the Act). Our responsibilities under those Standards are further described in the "Auditors Responsibilities for the Audit of the Standalone Financial Results" 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 together with the ethical requirements that are relevant to our audit of the 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 obtained by us is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matter

Further Information and details were provided by the client after finalization of original general purpose financial statements and based on the further information and explanations financial statements needed certain modifications. Our opinion remains intact on such revised general purpose financial statements too.

Managements Responsibilities for the Standalone Financial Results

The Statement has been prepared on the basis of the annual financial statements for the year ended March 31, 2023. The Board of Directors of the Company are responsible for the preparation and presentation of the Statement that give a true and fair view of the loss and other comprehensive income and other financial information in accordance with the applicable accounting standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. 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 for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the 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 Statement that give a true and fair view and are free from material misstatement, whether due to fraud or error. In preparing Statement, the Board of Directors are responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors 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 Companys financial reporting process.

Auditors Responsibilities for the Audit of the Standalone Financial Results

Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditors 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 this Statement.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the Statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143

(3)

(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to these financial results, 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 the Board of Directors. Conclude on the appropriateness of the Board of Directors 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 ability of the Company to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the Statement 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 auditors report. However, future events or conditions may cause the Group and of its Joint Venture to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the Statement, including the disclosures, and whether the financial results represent the underlying transactions and events in a manner that achieves fair presentation.

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.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order, 2020 (“the Order”) issued by the Central Government in terms of Section 143 (11) of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by section 143

(3) of the Act, we report that: a) We have sought and obtained all the information and an explanation which is to the best of our knowledge and beliefs 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 appears from our examination of those books. c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account. d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with the Companies (Indian Accounting Standard) Rules, 2015, as amended. e) On the basis of written representations received from the directors as on 31 March, 2023, taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2023, from being appointed as a director in terms of Section 164

(2) of the Act. f) With respect to the other matters included in the Auditors Report and to our 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. i

i. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses. ii

i. There is no amount required to be transferred, to the investors education & Protection Fund by the Company.

For, G M C A & Co
Chartered Accountants
(FRN No.109850W)
Sd/-
Mitt S. Patel

Date: 22/05/2023

Partner

Place: Ahmedabad

Membership No.: 163940
UDIN: 23163940BGPZMR5785

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of M/S. Sun Retail Limited (“the Company”) as of March 31, 2023 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys management is responsible for establishing and maintaining internal financial controls. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companys internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companys assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2023.

For, G M C A & Co.
Chartered Accountants
FRN: 109850W
Sd/-
CA. Mitt S. Patel

Place: Ahmedabad

(Partner)

Date: 22/05/2023

Membership No. 163940
UDIN:23163940BGPZMR5785

Annexure: A

Reports under The Companies (Auditors Report) Order, 2020 (CARO 2020) for the year ended on 31st March, 2023

To,

The Members of Sun Retail Limited

(Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirements section of our report of even date)

(I) (a) (A) The Company has maintained proper records showing full particulars, including ___________ quantitative details and situation of Property, Plant and Equipment. (B) The Company has maintained proper records showing full particulars of Intangible __ __ assets. (b) Property, Plant and Equipment were physically verified by the management in

_________accordance with a planned programme of verifying them at reasonable intervals _________having regard to the size of the Company and the nature of its assets. (c) The title deeds of all the immovable properties (other than properties where the ________ Company is the lessee, and the lease agreements are duly executed in favor of the ________ lessee) are held in the name of the Company. (d) The Company has not revalued its Property, Plant and Equipment (including Right of _________ use asset) or intangible assets during the year ended March 31, 2023.

(e) There are no proceedings initiated or are pending against the Company for holding any ____ benami property under the Prohibition of Benami Property Transactions Act, 1988 and ____ rules made thereunder.

(ii) (a) The management has conducted physical verification of inventory at reasonable _________intervals during the year. In our opinion the coverage and the procedure of such _________verification by the management is appropriate. Discrepancies of 10% or more in _________aggregate for each class of inventory were not noticed on such physical verification. (b) The Company has not been sanctioned working capital limits in excess of five crore _rupees, in aggregate, from banks or financial institutions on the basis of security of _current assets. Therefore, the requirement to report on clause 3(ii)(b) of the Order is _not applicable to the Company.

(iii) (a) During the year the Company has provided loans, advances in the nature of loans, ________ guarantee and security.

Particulars

Loans ( In Lakhs)

Aggregate amount granted/ provided during the year,

- Subsidiaries

-

- Related Parties

-

- Others

1,221.19/-

Balance outstanding as at balance sheet date in respect of above case,

- Subsidiaries

-

- Related Parties

-

- Others

1,652.92/-

(b) During the year the investments made and the terms and conditions of the grant of all ___ loans and advances in the nature of loan during the year are, prima facie, not ____prejudicial to the Companys interest. (c) The company has granted interest free loan which is violation of the Act. (d) There are no amounts of loan granted to companies which are overdue for more than ___ ninety days. (e) There were no loans which had fallen due during the year, that have been renewed or ___ extended or fresh loans granted to settle the overdue of existing loans given to the ____same parties. (f) The Company has granted loans or advances in the nature of loans, without specifying any terms or period of repayment to companies, firms, Limited Liability Partnerships or any other parties.

(iv) According to the information and explanations given to us and on the basis of our ______examination of the records, the Company has not given any loans, or provided any ______guarantee or security as specified under Section 185 of the Companies Act, 2013 and the ______Company has not provided any guarantee or security as specified under Section 186 of ______the Companies Act, 2013. Further, the Company has complied with the provisions of ______Section 186 of the Companies Act, 2013 in relation to loans given and investments made. (v) The Company has not accepted any deposits or amounts which are deemed to be ______deposits from the public. Accordingly, clause 3(v) of the Order is not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuant ______to the rules made by the Central Government for the maintenance of cost records ______under section 148(1) of the Companies Act, 2013, related to the manufacturing ______activities and are of the opinion that prima facie, the specified accounts and records ______have been made and maintained. We have not, however, made a detailed examination ______of the same.

(vii) (a) The Company does not have liability in respect of Service tax, Duty of excise, Sales tax and ________Value added tax during the year since effective 1 July 2017, these statutory dues has been ________subsumed into GST. According to the information and explanations given to us and based ________on audit procedures performed by us, no undisputed amounts payable in respect of these ________statutory dues were outstanding, at the year end, for a period of more than six months ________from the date they became payable. (b) The Company is regularly depositing with appropriate authorities undisputed statutory ________ dues. Therefore, the requirement to report on clause 3(v) of the Order is not applicable to ________ the Company. (viii) According to the information and explanations given to us and on the basis of our ________examination of the records of the Company, the Company has not surrendered or ________disclosed any transactions, previously unrecorded as income in the books of account, in ________the tax assessments under the Income Tax Act, 1961 as income during the year.

(ix) (a) The Company has not defaulted in repayment of loans or other borrowings or in the _________ payment of interest thereon to any lender. (b) The Company has not been declared willful defaulter by any bank or financial ________________institution or government or any government authority. (c) According to the information and explanations given to us by the management, the __________Company has not obtained any term loans during the year. Accordingly, clause __________3(ix)(c) of the Order is not applicable. (d) On an overall examination of the standalone financial statements of the Company, ____no funds raised on short-term basis have been used for long-term purposes by the ____Company. (e) On an overall examination of the standalone financial statements of the Company, _________ the Company has not taken any funds from any entity or person on account of or to _________ meet the obligations of its subsidiaries, associates or joint ventures.

(f) The Company has not raised loans during the year on the pledge of securities held in _________,its subsidiaries, joint ventures or associate companies. Hence, the requirement to _________ report on clause (ix)(f) of the Order is not applicable to the Company.

(x) (a) The Company has not raised any money during the year by way of initial public offer __________/further public offer (including debt instruments) hence, the requirement to report __________on clause 3(x)(a) of the Order is not applicable to the Company.

(b) The Company has not made any preferential allotment or private placement of __________shares/fully or partially or optionally convertible debentures during the year under audit and hence, the requirement to report on clause 3(x)(b) of the Order is not __________applicable to the Company.

(xi) (a) Based on examination of the books and records of the Company and according to the __________information and explanations given to us, considering the principles of materiality __________outlined in Standards on Auditing, we report that no fraud by the Company or on the __________Company has been noticed or reported during the course of the audit. (b) During the year, no report under sub-section (12) of section 143 of the Companies __________ Act, 2013 has been filed by cost auditor and secretarial auditor or by us in Form ADT __________ 4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with __________ the Central Government.

(c) We have taken into consideration the whistle blower complaints received by the __________Company during the year while determining the nature, timing and extent of our __________ audit procedures.

(xii) The Company is not a Nidhi Company as per the provisions of the Companies Act, 2013. _____Therefore, the requirement to report on clause 3(xii)(a),(b) and (c) of the Order is not _____applicable to the Company.

(xiii) Transactions with the related parties are in compliance with sections 177 and 188 of _______Companies Act, 2013 where applicable and the details have been disclosed in the notes ____ to the standalone financial statements, as required by the applicable accounting _________ _______ ___standards. (xiv) (a) Based on information and explanations provided to us and our audit procedures, in ________ _our opinion, the Company has an internal audit system commensurate with the __________size and nature of its business. (b) Internal audit under section 138 of Companies Act, 2013 is applicable. ________ (xv) The Company has not entered into any non-cash transactions with its directors or ______persons connected with its directors and hence requirement to report on clause 3(xv) _______of the Order is not applicable to the Company.

(xvi) The provisions of section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934) are ______not applicable to the Company. Accordingly, the requirement to report on clause ______(xvi)(a), (b), (c) & (d) of the Order is not applicable to the Company. (xvii) The Company has not incurred cash losses in the current year and in the immediately ______preceding financial year.

(xviii) There has been no resignation of the statutory auditors during the year and accordingly _____ the requirement to report on Clause 3(xviii) of the Order is not applicable to the ________ ______Company. (xix) On the basis of the ageing report, financial ratios and expected dates of realization of ______financial assets and payment of financial liabilities, any other information ______accompanying the financial statements, management plans and based on our ______examination of the evidence supporting the assumptions, nothing has come to our ______attention, which causes us to believe that any material uncertainty exists as on the date ______of the audit report that Company. (xx) Corporate social responsibility under section 135(5) of Companies Act, 2013 is not ________ ______applicable to the Company. Therefore, the requirement to report on clause 3(xx)(a) and ______3(xx)(b) of the Order is not applicable to the Company.

For, G M C A & Co.
Chartered Accountants
FRN: 109850W
Sd/-
CA. Mitt S. Patel
Partner
Membership No. 163940
UDIN: 23163940BGPZMR5785

Place: Ahmedabad

Date: 22/05/2023