TO THE BOARD OF DIRECTORS OF SUNGOLD MEDIA AND ENTERTAINMENT LIMITED
Report on the Audit of the Ind AS Financial Statements Opinion
We have audited the accompanying Ind AS financial statements of SUNGOLD MEDIA AND
ENTERTAINMENT LIMITED ("the Company"), which comprise the Balance sheet as
at March 31, 2023, the Statement of Profit and Loss including Other Comprehensive Income,
the Cash Flow Statement and the Statement of Changes in Equity for the year then ended,
and notes to the Ind AS 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 Ind AS financial statements give the information required by
the Companies Act, 2013, as amended ("the 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 profit
including other comprehensive income, its cash flows and the changes in equity for the
year ended on that date.
Basis for Opinion
We conducted our audit of the Ind AS financial statements in accordance with the
Standards on Auditing (SAs), as specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described in the Auditor’s
Responsibilities for the Audit of the Ind AS Financial Statements’ 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 there under, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the Code of Ethics. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion on the Ind AS financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the Ind AS financial statements for the financial year ended
March 31, 2023. These matters were addressed in the context of our audit of the Ind AS
financial statements as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
We have determined that there are no key audit matters to be communicated in our
report.
Other Information
The Company’s Board of Directors is responsible for the other information. The
other information comprises the information included in the Annual report but does not
include the IND AS financial statements and our auditor’s report thereon.
Our opinion on the IND AS financial statements does not cover the other information and
we do not express any form of assurance conclusion thereon.
In connection with our audit of the IND AS financial statements, our responsibility is
to read the other information and, in doing so, consider whether such other information is
materially inconsistent with the financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information; we
are required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management for the Ind AS Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these Ind AS financial statements
that give a true and fair view of the financial position, financial performance including
other comprehensive income, cash flows and changes in equity of the Company in accordance
with the accounting principles generally accepted in India, including the Indian
Accounting Standards (Ind AS) specified under section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015, as amended. 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 Ind AS financial statements
that give a true and fair view and are free from material misstatement, whether due to
fraud or error.
In preparing the Ind AS financial statements, management is responsible for assessing
the Company’s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
management 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 Company’s financial
reporting process.
Auditors Responsibilities for the Audit of the Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the Ind AS financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditor’s 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 these Ind AS financial 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 Ind AS financial
statements, 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 financial statements 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 management.
• Conclude on the appropriateness of management’s 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
Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the
related disclosures in the financial statements 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 auditor’s report. However, future events or conditions may cause the
Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Ind AS financial
statements, including the disclosures, and whether the Ind AS financial statements
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.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the Ind AS financial statements for
the financial year ended March 31, 2023 and are therefore the key audit matters. We
describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2020 ("the
Order"), issued by the Central Government of India in terms of sub-section (11) of
section 143 of the Act, we give in the "Annexure 1"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 explanations which to the best
of our knowledge and belief 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 it appears from our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of
Other Comprehensive Loss, the Cash Flow Statement and Statement of Changes in Equity dealt
with by this Report are in agreement with the books of account
(d) In our opinion, the aforesaid Ind AS financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with Companies (Indian
Accounting Standards) Rules, 2015, as amended by the Companies (Indian Accounting
Standards) Amendment Rules, 2018;
(e) On the basis of the written representations received from the directors as on March
31, 2023 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2022 from being appointed as a director in terms of Section 164 (2) of the
Act;
(f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company with reference to these Ind AS financial statements and the
operating effectiveness of such controls, refer to our separate Report in "Annexure
2" to this report;
(g) In our opinion, the managerial remuneration for the year ended March 31, 2023 has
been paid / provided by the Company to its directors in accordance with the provisions of
section 197 read with Schedule V to the Act;
(h) With respect to the other matters to be included in the Auditor’s Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in
our opinion and to the best of our information and according to the explanations given to
us:
• The Company does not have pending litigations on its financial position in its
Ind AS financial statements
• The Company did not have any long-term contracts including derivative contracts
for which there were any material foreseeable losses;
• There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company
(i) (a) The management has represented that, to the best of its knowledge and belief,
no funds have been advanced or loaned or invested (either from borrowed funds or share
premium or any other sources or kind of funds) by the company to or in any other person(s)
or entity(ies), including foreign entities ("Intermediaries"), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall,
whether, directly or indirectly lend or invest in other persons or entities identified in
any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries")
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
b) The management has represented that, to the best of its knowledge and belief, no
funds have been received by the company from any person(s) or entity(ies), including
foreign entities ("Funding Parties"), with the understanding, whether recorded
in writing or otherwise, that the company shall, whether, directly or indirectly, lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security
or the like on behalf of the Ultimate Beneficiaries; and
c) Based on such audit procedures that were considered reasonable and appropriate in
the circumstances, nothing has come to our notice that has caused us to believe that the
representations under sub-clause (a) and
(b) contain any material misstatement.
(j) No dividend has been declared or paid during the year by the Company.
ANNEXURE I TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS
OF SUNGOLD MEDIA AND ENTERTAINMENT LIMITED
i) (a)(A)The Company is maintaining proper records showing full particulars, including
quantitative details and situation of all fixed assets.
(a) (B) The Company has not capitalized any intangible assets in the books of the
Company and accordingly, the requirement to report on clause 3(i)(a)(B) of the Order is
not applicable to the Company.
(b) The Management has conducted physical verification of fixed assets during the year.
We have been informed that no major discrepancies were noticed on such verification.
(c) There is no immovable property (other than properties where the Company is the
lessee and the lease agreements are duly executed in favour of the lessee), held by the
Company and accordingly, the requirement to report on clause 3(i)(c) of the Order is not
applicable to the Company.
(d) The Company has not revalued its Property, Plant and Equipment (including Right of
use assets) 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 company has conducted physical verification of inventory as at balance
sheet date.
(b) The Company has not been sanctioned working capital limits in excess of Rs. five
crores in aggregate from banks or financial institutions during any point of time of the
year on the basis of security of current assets. Accordingly, 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
as follows. However the company has not stood guarantee or provided security to other
entity as per clause 3(iii)(a) of the Order
|
Guarantees |
Security |
Loans |
Advances in nature of loans |
| Aggregate amount granted/ provided during the year |
NA |
NA |
NA |
INR 4,49,52,883 |
| - Subsidiaries - Joint Ventures
- Associates
- Others |
NA |
NA |
NA |
To Others INR 4,49,52,883 |
| Balance outstanding as at balance sheet date in respect of above cases -
Subsidiaries
- Joint Ventures
- Associates
- Others |
NA |
NA |
NA |
To Others INR 6,70,46,674 |
(b) As per the management representation, the investments made and the terms and
conditions of the grant of loans, during the year are, prima facie, not prejudicial to the
Company’s interest. Accordingly, the requirement to report on clause 3 (iii) (b) of
the Order is not applicable to the Company.
(c) As per the management representation, the Company has granted loans and advances in
during the year to entities where the schedule of repayment of principal and payment of
interest has been stipulated and the repayment or receipts are regular as per clause 3
(iii) (c) of the Order.
(d) The following amounts are overdue for more than ninety days to whom loan has been
granted during the year as per clause 3(iii)(e) of the Order.
| Number of Cases |
Principal Amount
Overdue |
Interest Overdue |
Total Overdue |
| 23 |
5,92,02,354 |
35,39,424 |
6,27,41,778 |
(e)No loan granted by the Company which has fallen due during the year, has been
renewed or extended or fresh loans granted to settle the overdue of existing loans given
to the same parties as per clause 3(iii)(e) of the Order.
(f) The Company has not granted any loans or advances in the nature of loans either
repayable on demand or without specifying any terms or period of repayment during the
year. Hence, reporting under clause 3(iii) (f) is not applicable.
iv) According to the information and explanations given to us, the Company has not
given any loan, guarantee, made investment, nor provided any security under the provisions
of Section 185 and 186 of the Act.
v) According to the information and explanations given to us, the Company has not
accepted deposits from the public in terms of provisions of sections 73 to 76 of the
Companies Act, 2013.
vi) We have been informed that the maintenance of cost records has not been prescribed
by the Central government under section 148(1) of the Companies Act 2013.
vii) (a) According to the information and explanations given to us and the records of
the Company examined by us, in our opinion, the Company is generally regular in depositing
undisputed statutory dues including provident fund, income tax, sales tax, service tax,
value added tax, cess and other material statutory dues, as applicable, with the
appropriate authorities.
(b) As at the year-end, according to the records of the Company and information and
explanations given to us, there was no disputed statutory dues payable in respect of
provident fund, income tax, sales tax, service tax, value added tax.
viii) There were no transactions relating to previously unrecorded income that have
been surrendered or disclosed as income during the year in the tax assessments under the
Income Tax Act, 1961 (43 of 1961).
ix) (a) The Company has not taken any loans or other borrowings from any lender. Hence
reporting under
clause 3(ix)(a) of the Order is not applicable.
(b) The Company has not been declared wilful defaulter by any bank or financial
institution or government or any government authority.
(c) The Company has not taken any term loan during the year and there are no
outstanding term loans at the beginning of the year and hence, reporting under clause
3(ix)(c) of the Order is not applicable.
(d) On an overall examination of the financial statements of the Company, funds raised
on short-term basis have, prima facie, not been used during the year for long-term
purposes by the Company.
(e) On an overall examination of the 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.
(f) The Company has not raised any loans during the year and hence reporting on clause
3(ix)(f) of the Order is not applicable.
x) (a) The Company did not raise any money by way of initial public offer or further
public offer (including debts
instruments) and term loans during the year. Accordingly, paragraph 3(ix) of the order
is not applicable.
(b) The Company has made preferential allotment during the year and the requirements of
Section 42 & 62 of the companies act, 2013 have been complied.
xi) According to the information and explanations given to us and on the basis of
representation of the management
which we have relied upon, no fraud by the Company or on the company by its officers or
employees has been noticed or reported during the year.
xii) In our opinion and according to information and explanation given to us, the
company is not the Nidhi company, accordingly para 3(xii) of the order is not applicable
to the company.
xiii) According to the information and explanations given to us, all transactions with
the related parties are in compliance section 177 and 188 of Companies Act, 2013 as
applicable and the details have been disclosed in the Financial Statements as required by
the applicable accounting standards.
xiv) In our opinion the Company has an adequate internal audit system commensurate with
the size and the nature
of its business.
(xv) According to information and explanation given to us and based on our examination
of the records of the company, the company has not entered into any non cash transactions
with directors or persons connected with him.
(xvi) According to the information and explanations given to us and documents produced
before us the company is not required to be registered under section 45-IA of the Reserve
Bank of lndiaAct, 1934.
(xvii) The Company has not incurred cash losses during the financial year covered by
our audit and the immediately preceding financial year.
xviii) M/s Bhatter & co terms of 5 years over and appointed Bharat Gupta & Co
of the statutory auditors of the company during the year.
xix) On the basis of the financial ratios, ageing and expected dates of realization of
financial assets and payment of
financial liabilities, other information accompanying the financial statements and our
knowledge of the Board of Directors and 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
indicating that Company is not capable of meeting its liabilities existing at the date of
balance sheet as and when they fall due within a period of one year from the balance sheet
date. We, however, state that this is not an assurance as to the future viability of the
Company. We further state that our reporting is based on the facts up to the date of the
audit report and we neither give any guarantee nor any assurance that all liabilities
falling due within a period of one year from the balance sheet date, will get discharged
by the Company as and when they fall due.
ANNEXURE II TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE IND AS FINANCIAL
STATEMENTS OF SUNGOLD MEDIA AND ENTERTAINMENT LIMITED
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 SUNGOLD
MEDIA AND ENTERTAINMENT LIMITED ("the Company") as of March 31, 2023 in
conjunction with our audit of theInd AS financial statements of the Company for the year
ended on that date.
Managements Responsibility for Internal Financial Controls
The Company’s Management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
issued by the Institute of Chartered Accountants of India. 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 the Company’s 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 with reference to these Ind AS financial statements
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 as specified under section 143(10) of the Companies Act,
2013, to the extent 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 with reference to these Ind AS financial statements 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 over financial reporting with reference to these Ind AS
financial statements and their operating effectiveness. Our audit of internal financial
controls overfinancial reporting included obtaining an understanding of internal financial
controls over financial reporting with reference to these Ind AS financial statements,
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 auditor’s judgment, 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 internal financial controls over financial
reporting with reference to these Ind AS financial statements.
Meaning of Internal Financial Controls Over Financial Reporting with Reference to these
Financial Statements
A companys internal financial control over financial reporting with reference to these
IND AS financial statements 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 with reference
to these Ind AS financial statements 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
authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of
unauthorized 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 with
Reference to these Ind AS financial statements
Because of the inherent limitations of internal financial controls over financial
reporting with reference to these financial statements, 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 with reference to these Ind AS
financial statements to future periods are subject to the risk that the internal financial
control over financial reporting with reference to these Ind AS financial statements 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, adequate internal financial
controls over financial reporting with reference to these financial statements and such
internal financial controls over financial reporting with reference to these Ind AS
financial statements were operating effectively as at March 31, 2023, based on the
internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India.
+91-9892691696
