| We have audited the accompanying financial statements of SUNGOLD
CAPITAL LIMITED, which comprise the Balance Sheet as at March 31, 2014,
and the Statement of Profit and Loss and Cash Flow Statement for the
year then ended, and a summary of significant accounting policies and
other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these 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 Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956. This responsibility includes the design,
implementation and maintenance of internal control 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 financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 disclosures in the financial statements. 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. In making those risk assessments, the auditor
considers internal control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose 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 and proper returns adequate for the purposes of our audit have
been received from branches not visited by us;
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account and with the returns received from branches not visited by us;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e. on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
Annexure to Independent Auditor's Report Referred to in Paragraph 3 of
our report even date.
In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars,
including quantitative detail and situation of its fixed assets.
b) The fixed assets have been physically verified during the year by
the management in accordance with a program of verification, the
frequency of which is reasonable. According to the information given to
us, no material discrepancies were noticed on such verification.
c) In our opinion, the Company has not disposed off any substantial
part of its fixed assets and the going concern status of the company is
not affected.
In respect of the inventories:
As explained to us, inventories were physically verified during the
year by the management at reasonable intervals.
In our opinion and according to the information and explanations given
to us, the procedure of physical verification of inventories followed
by the management was reasonable and adequate in relation to the size
of the Company and the nature of its business.
In our opinion and according to the information and explanations given
to us, the Company has maintained proper records of its inventories and
no material discrepancies were noticed on physical verification.
According to the information and explanations given to us, the Company
has neither granted nor taken unsecured loans to/from Companies, firms
and other parties covered in the register maintained under Section 301
of the Companies Act, 1956.
In our opinion and according to the information and explanations given
to us, there are adequate internal control procedures commensurate with
the size of the company and the nature of its business. During the
course of our audit, no major weakness has been noticed in the internal
controls and there is no continuing failure for the same.
5. (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, we are of
the opinion that the transactions that need be entered into the
register maintained under Section 301 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 and
exceeding the value of five lakhs rupees in respect of any party during
the year are reasonable having regard to the prevailing market price at
the relevant time.
6. The Company has not accepted any deposits from the public during
the year.
7. The Company has an internal audit system commensurate with the size
and nature of the Company's business.
The maintenance of the cost records has not been prescribed by the
Central Government under Section 209 (1) (d) of the Companies Act,
1956, for the year under review.
Statutory and other dues:
a) According to information and explanations given to us Provident Fund
and Employee's State Insurance Scheme are not applicable to the
Company.
b) According to the information and explanations given to us and the
records examined by us, the company is regular in depositing undisputed
statutory dues including Income-Tax, Sales-Tax, Custom Duty and Excise
Duty and there were no undisputed statutory dues outstanding as on 31st
March, 2014 for a period of more than six months from the date they
became payable.
The company does not have accumulated losses at the end of the year.
The company has not incurred any cash loss during the financial year
covered by the audit and in the immediately preceding financial year.
Based on the information and explanations given to us, the Company has
not defaulted in repayment of any dues to financial institutions and
banks.
Based on our examination of the records and the information and
explanations given to us, the Company has not granted any loans and/or
advances on the basis of security by way of pledge of shares,
debentures and other similar securities.
To the best of our knowledge and belief and according to the
information and explanations given to us, the company has maintained
proper records of the transactions for dealing in shares, securities
and other investments and timely entries have been made therein. The
shares, securities and other investments have been held by the company
in its own name.
The company is not a chit fund, nidhi, mutual benefit fund or a
society.
According to the information and explanations given to us, the Company
has not given any guarantee for loans taken by others from bank or
financial institutions.
According to the information and explanations given to us, the company
has not raised any working capital loan. Therefore, the question of its
use does not arise.
According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we report that
no funds raised on short term basis have been used for long term
investment by the company or vice-versa.
The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under Section
301 of the Companies Act, 1956 during the year.
During the year covered under the audit report the company has not
issued any secured debentures.
The company has raised money by Conversion of Convertible Warrants into
Equity during the year covered by our report.
As per the information given to us, no fraud on or by the company has
been noticed or reported during the course of our audit.
For R.K Somani & Associates
FRN:-118666W
Chartered Accountants,
Place: MUMBAI (R.K Somani)
Date: 28/05/2014 Proprietor
Membership No:-104927 |