Sunrise Efficient Marketing Ltd Auditor Reports

TO

THE MEMBERS OF

SUNRISE EFFICIENT MARKETING LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of SUNRISE EFFICIENT MARKETING LIMITED("the Company"), which comprise the Balance Sheet as at 31^st March, 2023, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information enclosed herewith being submitted by the company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("Listing Regulations").

Management s Responsibility for the Standalone Financial Statements

The Companys Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. 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 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor s Responsibility

Our responsibility is to express an opinion on these standalone financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companys preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companys Directors, as well as evaluating the overall presentation of the financial statements.

As required under clause 33 of SEBl (Listing Obligation and Disclosure Requirements) Regulation, 2015, the statutory Auditors have conducted a limited review of that above financial results for the half year ended and year ended March 31,2023.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by 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 31^st March, 2023, and its profit/loss and its cash flows for the year ended on that date.

Key Audit Matter

We draw attention to the following matters in the Notes to the financial statements:

a. The company had completed initial public issue (IPO) by raising 13,80,000 shares having price @ 121/- per share (Face Value @ 10/- and share premium @ 111/- per share). Thus aggregating to 1669.80 Lakhs, the company had proposed to deploy these net proceeds towards meeting incremental working capital requirements. The equity share of the company is listed on BSE-SME Platform on 12.04.2022.

b. The utilization of the IPO Proceeds was as following:

( in Lakhs)

Particulars	Objects of the Issue as per Prospectus	Utilization Upto 31.03.2023	Unutilized as on 31.03.2023
Issue related expenses	133.58	52.90	80.68
Funding Working Capital Requirements	1118.77	578.47	540.30
General Corporate Purpose	417.45	0.00	417.45
Loans and Advances given	0.00	1038.43	0.00
Total	1669.80	1669.80	1038.43

c. Bank Balance as per Balance Sheet which includes, cheques amounting to Rs.16.44 Lakhs were issued but not debited by the bank as on 31.03.2023 which stands in the Bank Reconciliation statement of Axis Bank CC A/c 920030051353191 maintained by the management of the company. Also there are certain transactions where cheques amounting to Rs. 395 Lakhs were received but not deposited/cleared by Bank as on 31.03.2023, which stands in the Bank Reconciliation statement of Axis Bank CC A/c 920030051353191 maintained by the management of the company. Further also, there are certain cheques deposited but not cleared by Bank up till the date of audit report.

d. As per regulation of SA-610 i.e. "Using the work of Internal Auditor" as provided by ICAI, we have relied on the report of internal auditor M/s Rachna Patel & Associates appointed by the company for conducting day-to-day audit of the company. The companys standalone financial figures for the year ended March 31, 2023, and the half-year ended September 30, 2022, have been examined by internal auditor M/s Rachna Patel & Associates and we have relied on their report for any discrepancies.

e. The company had provided short term loans and advances to various other entities as reflected in the audit report, also necessary resolutions have been passed in the board meeting with respect of these loans. These loans are not interest free and necessary interest has been charges on the same.

f. The Company has considered the possible effects that may result from the pandemic relating to COVID-19 in the preparation of the financial results including the recoverability of carrying amount of financial and non-financial assets. In developing the assumptions relating to the possible future uncertainties the global economic conditions because of pandemic, the company has used its available internal and external sources of information and economic forecasts and expects that the carrying amount of these assets will be recovered. The impact of Covid-19 on the financial results may differ from the estimate as at the date of approval of the financial results. Our opinion is not modified in respect of these matters.

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 enclose in the annexure a statement on matters specified in paragraph 3 & 4 of the said order. (Annexure- A)

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. Further reliance has also been placed on Management Representation Letter duly certified by the management of the company providing various explanations and clarifications with respect to audit queries and certifying various data where no documentary evidences were available.

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

d. The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of accounts.

e. In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

f. The going concern matter described in sub-paragraph (b) under the Emphasis of Matters paragraph above, in our opinion, may not have an adverse effect on the functioning of the Company.

g. On the basis of the written representations received from the directors as on 31^st March, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on 31^st March, 2023 from being appointed as a director in terms of Section 164 (2)of the Act.

h. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in

"Annexure B".

i. With respect to the other matters to be included in the Auditors Report in accordance with

Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

ii. the Company does not have any pending litigations which would impact its financial position.

iii.the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable

iv there were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company

SUMIT BIHANI, Partner M. No. 121551

UDIN: 23121551BGWRKP9665

Place Surat

Date: 21/05/2023

ANNEXURE A Report under the Companies (Auditor s Report) Order, 2020

Referred to in of our report of even date

In terms of the information and explanations sought by us and given by the company and the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that:

1 (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) As explained to us, all the assets have been physically verified by the management during the year also there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

(c)The company does not have any immoveable properties held in its name.

(d)The company has not revalued its Property, Plant and Equipment (including Right of Use assets) or intangible assets or both during the previous year

(e)As per the details and explanations provided by management and as verified by us, no proceedings have been initiated or are pending against the company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made there under.

2. (a)As explained to us, the inventory has been physically verified at reasonable intervals during the year by the management. In our opinion, the frequency of verification is reasonable. The discrepancies noticed on verification between the physical stocks and the book records were not material.

(b) The Company has been sanctioned working capital facilities of Rs.6 Crores by Axis Bank Ltd on the basis of security of current assets.

(c) The value of stock & book debts statement filed by the company in monthly stock statements with Axis Bank and the value of Stock & book debts as per books of accounts as on the date of stock statement filed with the bank has been tabulated here under (Rs. In Lakhs):

	Value of Paid Stock		Value Of Debtors *
Sr. No Month	As Per Statement	As per Books	As Per Statement	As per Books
1 April	184.71		1462.82	1564.26
2 May	244.4		1643.17	1791.50
3 June	232.42		1630.95	1618.80
4 July	633.61		1619.61	1608.39
5 August	404.19		1745.72	1732.57
6 September	414.15	#	1637.48	1719.74
7 October	447.17		1647.83	1732.57
8 November	513.86		1800.23	1897.68
9 December	379.15		1829.39	1934.26
10 January	-192.69		2881.64	2859.19
11 February	184.54		2621.7	2604.62
12 March	464.22		2026.92	1662.01
		723.45

* The material reason of difference is because of the fact that few sales /purchase bills are entered in the books of accounts with a delay of few days as compared to receipts / dispatch of goods due to the late receipt of those bills in the accounts department for making necessary entries in the books of accounts. Also, there were certain advance receipts from the suppliers, which were identified during the course of audit procedure and henceforth the variance in value of debtors was seen.

# As certified by the management and as verified by us value of stock is determined by the accounting software used by the company only after closing the books of accounts of the company for a particular period i.e. on 31st March 2023. Henceforth, it is not possible to determine value of paid stock as per books on each date of stock statement submitted by the client to the bank.

The company has a practice of physically quantifying and valuing the stock every month on the date of submission of monthly stock statements to the bank and the said value of stock derived on such monthly physical valuation of stock is incorporated in the stock statements submitted to the bank.

However, the value of stock as on the closing of books of accounts on 31.03.2023 as per books of accounts has been identified by the company and the same is stated above.

3. (a)As explained to us, the company had not granted loans to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Act.

(b) Advances for Capital goods to Mahendra Dubey amounting to Rs.5 Lakhs has been made during the F.Y. 2021-22. However, no capital goods were received till the date and further amount advanced had not been refunded.

(c) As Explained to us, the company had provided short term loans and advances to various other entities as reflected in the audit report, also necessary resolutions have been passed in the board meeting with respect to these loans. The loans advanced are not interest free and necessary interest has been charges on the same.

4. Provisions of Section 185 and 186 of the Companies Act 2013 have been complied with in respect of loans, investments, guarantees and security.

5. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits in contravention of Directives issued by Reserve Bank of India and the provisions of section 73 to 76 or any other relevant provisions of the Act and the rules framed there under, where applicable. No order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal, or

6. It has been explained to us that the maintenance of cost records has not been prescribed under section 148(1) of the Act, or

7 (a) According to the records of the company the company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education protection fund, employees state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty and other material statutory dues applicable to it except employee professional tax.

Also, there is following non-payment of TDS Interest on Late Payment Charges:

Year	Interest on Late Payment
F.Y.2021-22	5,100/-
F.Y. 2020-21	390/-

(b) According to the information and explanations given to us, there are no dues of sales tax, income tax, custom duty, wealth tax, excise duty and cess which have not been deposited on account of any dispute.

8. During the previous year, there is no such instances or transactions that has not been recorded in books of accounts which have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).

9.(a) During the previous year, 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 other lender.

(c)During the previous year, the company has not utilized any funds raised on short term basis for any long term purposes.

10.The company has raised moneys by way of initial public offer. The company had completed initial public issue (IPO) by raising 13,80,000 shares having price @ 121/- per share (Face Value @ 10/- and share premium @ 111/- per share). Thus aggregating to 1669.80 Lakhs, the company had proposed to deploy these net proceeds towards meeting incremental working capital requirements. The equity share of the company is listed on BSE-SME Platform on 12.04.2022.

11(a) Based upon the audit procedures performed and according to the information and explanations given to us, no fraud by the company or any fraud on the company by its officers or employees has been noticed or reported during the course of our audit, that causes the financial statements to be materially misstated.

(b) No whistle blower complaints have been received by the auditor during the previous year.

(c) No report has been filed by the Auditors in Form ADT 4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules,2014 under section 143(12) of Companies Act 2013 with the Central Government during the previous year.

(d) Statement of summary of Investor Complaints filed with BSE-SME by the management:

Particulars	Remarks
No. of Investor complaints pending at the beginning of the Year	0
No. of Investor complaints received during the Year	1
No. of Investor complaints disposed of during the Year	1
No. of Investor complaints unresolved at the end of the Year	0

12. The company is not a Nidhi Company hence this clause is not applicable.

13. Based upon the audit procedures performed and according to the information and explanations given to us, All transactions with related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the Financial statements etc. as required by the applicable accounting standards.

14. As per regulation of SA-610 i.e. "Using the work of Internal Auditor" as provided by ICAI, we have relied on the report of internal auditor M/s Rachna Patel & Associates appointed by the company for conducting day-to-day audit of the company. The companys standalone financial figures for the year ended March 31, 2023, and the half-year ended September 30, 2022, have been examined by internal auditor M/s Rachna Patel & Associates and we have relied on their report for any discrepancies.

15. The company has not entered into any non-cash transactions with directors or persons connected with him.

16. The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

17.The Company has NOT incurred cash losses in the financial year and in the immediately preceding financial year.

18.There has been no resignation of statutory auditors of the Company during the previous year.

19. On the basis of the information available from financial statements and financial ratios derived therein, ageing and expected dates of realization of financial assets and payment of financial liabilities, and other information accompanying the financial statements, and as per our knowledge of the Board of Directors and management plans, we are of the opinion that that no material uncertainty exists as on the date of the audit report , that company is 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.

20.The company was expected to abide with the rules of Section 135 (Corporate Social Responsibility) of the Companies Act 2013 during the F.Y.22-23. The company to fulfill its CSR Compliance had donated Rs. 6,95,000.00 to the Kalawati Devi Memorial Trust, which is registered with the state of Maharashtra under the number F-0072761 and has the PAN number AADTK6137D.

21.Since there is no requirement of any Consolidated Financial Statements to be prepared by the company during the previous year, any adverse or qualified remarks of other auditors in their respective CARO Report which needs to be incorporated in CARO Report of Consolidated Financial Statements is not applicable to the company during the previous year.

For SBMG &Co

Chartered Accountants (FRN:127756W)

SUMIT BIHANI, Partner M. No. 121551

UDIN: 23121551BGWRKP9665

Place -Surat

Date:21/05/2023

ANNEXURE "B" TO THE INDEPENDENT AUDITOR S REPORT

(Referred to in paragraph 1(f) under Report on Other Legal and Regulatory Requirements of our report of even date) Report on the Internal Financial Controls Over

Financial Reporting 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 SUNRISE EFFICIENT MARKETING LIMITED 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.

Management s Responsibility for Internal Financial Controls

The Companys 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 (the "Guidance Note") 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 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 Act.

Auditor s 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 issued by the Institute of Chartered Accountants of India and the Standards on auditing prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls. 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 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 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 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

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, to the best of our information and according to the explanations given to us, 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, 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 issued by the Institute of Chartered Accountants of India.

For SBMG &Co

Chartered Accountants (FRN:127756W)

Sd/-

SUMIT BIHANI, Partner M. No. 121551

UDIN: 23121551BGWRKP9665

Place -Surat

Date:21/05/2023