To
The Members of SUNSHINE CAPITAL LIMITED
Report on the audit of the financial statements
Opinion
We have audited the financial statements of Sunshine Capital Limited
("the Company"), which comprise the balance sheet as at March 31, 2023, and the
statement of profit and loss (including other comprehensive income), the statement of
changes in equity and the 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 profit Amount of Rs.
1,78,98,200/- and cash out flows for the year ended on that date.
Basis for opinion
We conducted our audit in accordance with the standards on auditing
specified under section 143 (10) of the Companies Act, 2013. Our responsibilities under
those Standards are further described in the auditors responsibilities for the audit
of the 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 opinion.
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 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 31st March 2023, its profit/loss statement and its cash flows statement for the year
ended on that date.
Key audit matters
In addition to the matter described in the Material Uncertainty Related
to Going Concern section, we have determined the matters described below to be the key
audit matters to be communicated in our report.
(A) Adoption of new revenue recognition standard Ind AS 115 (This is
added only for illustrative purposes and the auditor has to decide the most significant
matter and modify this section accordingly).
Details of the Key Audit Matter
The Company adopted Ind AS 115 "Revenue from Contracts with
Customers" with effect from
April 1, 2019. The application of the new revenue accounting standard
involves certain key judgments relating to identification of distinct performance
obligations, determination of transaction price of the identified performance obligations
and point of recognition of revenue. Ind AS 115 also requires extensive disclosures.
Auditors Response to the Key Audit Matter
We assessed the Companys process to identify the impact of
adoption of the new revenue accounting standard (Ind AS 115).
Our audit approach consisted testing of the design and operating
effectiveness of the internal controls and substantive testing as follows: -
a) Evaluated the design of internal controls relating to implementation
of the new revenue accounting standard.
b) Selected a sample of continuing and new contracts, and tested the
operating effectiveness of the internal control, relating to identification of the
distinct performance obligations and determination of transaction price.
c) Selected a sample of continuing and new contracts and performed the
following procedures:
? Read, analyzed and identified the distinct performance obligations in
these contracts.
? Compared these performance obligations with that identified and
recorded by the Company.
? Considered the terms of the contracts to determine the transaction
price including any variable consideration to verify the transaction price used to compute
revenue and to test the basis of estimation of the variable consideration.
? Performed analytical procedures for reasonableness of revenue
recognition as per Ind AS 115.
Information other than the financial statements and auditors
report thereon
The Companys board of directors is responsible for the
preparation of the other information. The other information comprises the information
included in the Management Discussion and
Analysis, Boards Report including Annexures to Boards
Report, Business Responsibility Report, Corporate Governance and Shareholders
Information, but does not include the financial statements and our auditors report
thereon.
Our opinion on the 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 financial statements, our
responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the standalone financial statements or
our knowledge obtained during the course of our 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.
Managements responsibility for the financial statements
The Companys board of directors is responsible for the matters
stated in section 134 (5) of the
Act with respect to the preparation of these 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 Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with
the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting
Standards) Rules, 2016, as amended from time to time, and other accounting principles
generally accepted in India.
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 statement that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, management is 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 management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
The boards of directors are also responsible for overseeing the
Companys financial reporting process.
Auditors responsibilities for the audit of the financial
statements
Our objectives are to obtain reasonable assurance about whether the
financial statements as a whole are 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 these financial statements.
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
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 Companies Act, 2013, we are also responsible for expressing our opinion
on whether the company has adequate internal financial controls system in pLakhse 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 managements 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
Companys ability 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 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 auditors 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
financial statements, including the disclosures, and whether the 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 financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditors 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
As required by the Companies (Auditors Report) Order, 2016
("the Order"), issued by the Central
Government of India in terms of sub-section (11) of section 143 of the
Companies Act, 2013, we give in Annexure "A" a statement on the matters
specified in paragraphs 3 and 4 of the Order.
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 my examination of those books;
(c) 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 account;
(d) In our opinion, the aforesaid financial statements comply with the
accounting standards specified under section 133 of the Act, read with rule 7 of the
Companies (Accounts) Rules, 2014;
(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, 2023 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 and the operating effectiveness of such controls,
refer to our separate report in
"Annexure B". Our report expresses an unmodified opinion on
the adequacy and operating effectiveness of the Companys internal financial controls
over financial reporting;
(g) With respect to the other matters to be included in the
Auditors Report in accordance with the requirements of section 197 (16) of the Act,
as amended, in our opinion and to the best of our information and according to the
explanations given to our, the remuneration paid by the Company to its directors during
the year is in accordance with the provisions of section 197 of the Act; and
(h) 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 our;
a. The Company does not have any pending litigations which would impact
its financial position;
b. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable losses; and
c. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the Company
00% cellpadding=2>
FOR TIWARI & MISHRA |
(CHARTERED ACCOUNTANTS) |
FIRM REGN NO: 018393N |
CA. MANINDRA KUMAR TIWARI |
(PARTNER) |
M.NO: 501419 |
PLAKHSE: NEW DELHI |
DATE: 29.05.2023 |
UDIN: 23501419BGWNBI9900 |
Annexure "A" to the Independent Auditors Report
(Referred to in paragraph 1 under ‘Report on other legal and
regulatory requirements section of our report to the members of SUNSHINE CAPITAL
LIMITED of even date)
1. In respect of the Companys fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets of the Company were physically verified in full by
the management during the year. According to the information and explanations given to us
and as examined by us, no material discrepancies were noticed on such verification.
(c) The Company has a program of verification to cover all the items of
fixed assets in a phased manner over a period of three years, which, in our opinion, is
reasonable having regard to the size of the Company and the nature of its assets. However,
no physical verification has been carried on by the management during the year.
Accordingly, we were unable to comment on whether any material discrepancies were noticed
on such verification and whether they are properly dealt with in the financial statements.
(d) According to the information and explanations given to us, the
records examined by us, we report that the Company does not hold any freehold, are held in
the name of the Company as at the balance sheet date. In respect of immovable properties
of land and building that have been taken on lease and disclosed as fixed assets in the
financial statements, the lease agreements are in the name of the Company.
2. The inventory has been physically verified by the management during
the year. In our opinion, the frequency of such verification is reasonable. According to
the information and explanations given to us and as examined by us, no material
discrepancies were noticed on such verification.
3. According to information and explanation given to us, the company
has not granted any loan, secured or unsecured to companies, firms, limited liability
partnerships or other parties covered in the register required under section 189 of the
Companies Act, 2013. Accordingly, paragraph 3 (iii) of the order is not applicable.
4. In our opinion and according to information and explanation given to
us, the company has not granted any loans or provided any guarantees or given any security
or made any investments to which the provision of section 185 and 186 of the Companies
Act, 2013. Accordingly, paragraph 3 (iv) of the order is not applicable.
5. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits and accordingly paragraph 3 (v) of
the order is not applicable.
6. The Central Government of India has not prescribed the maintenance
of cost records under sub-section (1) of section 148 of the Act for any of the activities
of the company and accordingly paragraph 3 (vi) of the order is not applicable.
7. In respect of statutory dues:
(a) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, amounts deducted/ accrued in
the books of account in respect of undisputed statutory dues including provident fund,
employees state insurance, income-tax, sales- tax, service tax, goods and service
tax, duty of customs, duty of excise, value added tax, cess and other material statutory
dues have been generally regularly deposited during the year by the company with the
appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, employees state insurance,
income-tax, sales- tax, service tax, goods and service tax, duty of customs, duty of
excise, value added tax, cess and other material statutory dues were in arrears as at
March 31, 2023 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us and the
records of the company examined by us, there are no dues of income-tax, sales- tax,
service tax, goods and service tax, duty of customs, duty of excise and value added tax
which have not been deposited on account of any dispute.
8 In our opinion and according to the information and explanations
given to us, the company has no outstanding dues to any financial institutions or banks or
any government or any debenture holders during the year. Accordingly, paragraph 3 (viii)
of the order is not applicable.
9. The Company has not raised any money by way of initial public offer
or further public offer (including debt instruments) and has not taken any term loans
during the year. Accordingly, paragraph 3 (ix) of the order is not applicable.
10. To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company or no material fraud on the Company by
its officers or employees has been noticed or reported during the year.
11. The provision of section 197 read with schedule V of the companies
Act are not applicable. Accordingly, paragraph 3(xi) of the order is not applicable.
12. The Company is not a Nidhi Company and accordingly, paragraph 3
(xii) of the order is not applicable to the Company.
13. According to the information and explanations given to us and based
on our examination of the records of the company, transactions with the related parties
are in compliance with section 177 and 188 of the Act. Where applicable, the details of
such transactions have been disclosed in the financial statements as required by the
applicable accounting standards.
14 According to the information and explanations given to us and based
on our examination of the records of the company, the company has not made any
preferential allotment or private pLakhsement of shares or fully or partly convertible
debentures during the year. Accordingly, paragraph 3(xiv) of the order is not applicable.
15 According to the information and explanations given to us and based
on our examination of the records of the company, the company has not entered into
non-cash transactions with directors or persons connected with them. Accordingly,
paragraph 3(xv) of the order is not applicable.
16 According to the information and explanations given to us and as per
the provision of section 45-IA of the Reserve Bank of India Act 1934, the company is
registered as NBFC vide certificate No- B-14.01266 dated 25.09.1998.
FOR TIWARI & MISHRA |
(CHARTERED ACCOUNTANTS) |
FIRM REGN NO: 018393N |
CA. MANINDRA KUMAR TIWARI |
(PARTNER) |
M.NO: 501419 |
PLAKHSE: NEW DELHI |
DATE: 29.05.2023 |
UDIN: 23501419BGWNBI9900 |
Annexure "B" to the Independent Auditors Report
(Referred to in paragraph 2 (f) under ‘Report on other legal and
regulatory requirements section of our report to the Members of Sunshine Capital
Limited 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 Sunshine Capital Limited
("the Company") as at March 31, 2023, in conjunction with our
audit of the financial statements of the Company for the year ended on that date.
Managements responsibility for internal financial controls
The board of directors of the Company 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, 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 internal financial
controls over financial reporting of the Company 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") issued by the Institute of Chartered
Accountants of India and the standards on auditing prescribed under Section 143 (10) of
the Companies Act, 2013, 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 were 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 judgments, including the assessment of the risks of material
misstatement in the financial statements, whether due to fraud or error.
Our 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 control 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 (i) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (ii) 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 (iii) 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.
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 of
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 and according to the information and explanations given
to us, the Company has, in all material respects, an adequate internal financial control
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 on Audit of Internal Financial
Controls Over Financial Reporting issued by the Institute of Chartered Accountants of
India.
FOR TIWARI & MISHRA |
(CHARTERED ACCOUNTANTS) |
FIRM REGN NO: 018393N |
CA. MANINDRA KUMAR TIWARI |
(PARTNER) |
M.NO: 501419 |
PLAKHSE: NEW DELHI |
DATE: 29.05.2023 |
UDIN: 23501419BGWNBI9900 |
SUNSHINE CAPITAL LIMITED
Regd. Office:-209, Bhanot Plaza-II, 3, D.B Gupta Road, Delhi-110055
Corp. Office:- 16/121-122, Jain Bhawan, I Floor, Faiz Road, WEA, Karol
Bagh, New Delhi-110005
+91-9892691696
