We have audited the accompanying financial statements of SUNCARE TRADERS LIMITED, which
comprise the Balance Sheet as at 31st March, 2025, and the Statement of Profit and Loss
(Including Other Comprehensive Income) and Cash Flow Statement and the statement of Changes
in Equity for the period ended, and a summary of significant accounting policies and other
explanatory information. (Hereinafter referred to as the “financial statements”).
In our opinion and to the best of our information and according to the explanations given to us,
except for the effects of the matters described in the ‘Basis for Qualified opinion” section of our
report, the aforesaid 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 inconformity
with the Indian Accounting Standards prescribed under section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015, as amended, (“Ind AS”) and other
accounting principles generally accepted in India, of the state of affairs of the Company as at March
31, 2025, the profit and total comprehensive income, changes in equity and its cash flows for the
year ended on that date.
Basis for Qualified Opinion
The Company had made an investment in debentures amounting to ?200 lakhs in September 2021.
However, the original debenture certificate was not produced for our verification. The Company was
unable to provide sufficient appropriate audit evidence to confirm the existence, terms, and valuation of
the said investment. Consequently, we were unable to determine whether any adjustments were
necessary in respect of this item.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under
section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are
further described in the Auditor's 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 Companies
Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of Ethics. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion
on the 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 financial statements of the current period. These matters were addressed in
the context of our audit of the financial statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters.
The Key Audit Matters Reportable as per SA 701 issued by ICAI.
We draw attention to the matter described in the Basis for Qualified Opinion section of our report. The
inability to obtain sufficient appropriate audit evidence regarding the Company’s investment in
debentures was one of the most significant matters in our audit .
Information Other than the Financial Statements and Auditor's Report Thereon
The Company's 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, Board's Report including Annexures to Board's Report, but does not include the financial
statements and our auditor's report thereon. These reports are expected to be made available to
us after the date of our auditor's report.
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 identified above when it becomes available and, in doing so, consider whether the
other information is materially inconsistent with the financial statements or our knowledge
obtained in the audit, or otherwise appears to be materially misstated.
When we read the other information included in the above reports, if we conclude that there is
material misstatement therein, we are required to communicate the matter to those charged with
governance and determine the actions under the applicable laws and regulations.
Management's Responsibility for the 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 financial statements that give a true and fair view of
the financial position, financial performance, total comprehensive income, changes in equity and
cash flows of the Company in accordance with the Ind AS 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 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.
In preparing the 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.
Those Board of Directors are also responsible for overseeing the Company's financial reporting
process.
Auditor's Responsibility
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
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 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 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 financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that, individually
or in aggregate, makes it probable that the economic decisions of a reasonably
knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit work
and in evaluating the results of our work; and (ii) to evaluate the effect of any identified
misstatements in the financial statements.
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 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 section 143(11) of the Act, we give in “Annexure
A”, a statement on the matter specified in the paragraph 3 and 4 of the Order.
2. As required under provisions of section 143(3) of the Companies Act, 2013, we report that:
a. We have sought and except for the matters described in the Basis for Qualified
opinion paragraph, obtained all the information and explanations which to the best
of our knowledge and belief where necessary for the purposes of our audit;
b. Except for the matters described in the Basis for Qualified opinion paragraph, in our
opinion, proper books of account as required by law have been kept by the
Company so far as appears from our examination of those books;
c. The Balance Sheet and Statement of Profit and Loss including Other Comprehensive
Income Statement of Cash Flow and Statement of Changes of Equity dealt with this
report are in agreement with the books of account;
d. Except for the matters described in the Basis for Qualified opinion paragraph ,in our
opinion, the aforesaid Financial Statement comply with the Accounting Standards
specified under Section 133 of Act, read with relevant rule issued thereunder.
e. On the basis of written representations received from the directors as on March 31,
2025, taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2025, 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 operating effectiveness of such controls, referred to
our separate report in “Annexure B".
g. With respect to the other matters to be included in the Auditor's 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 us, the remuneration paid by the Company to its directors
during the year is in accordance with the provisions of section 197 of the Act.
h. With respect to other matters to be included in the Auditor's Report in accordance
with Rule 11 of the Companies (Audit and Auditor) Rules, 2014, in our opinion and
to the best of our knowledge and belief and according to the information and
explanations given to us:
(a) The Company has disclosed the impact of pending litigations as at 31 March
2025 on its financial position in its financial statements - Refer Note (vii) of
Annexure - A to the financial statements
(b) The Company did not have any long-term and derivative contracts as at March
31, 2025.
(c) There has been no delay in transferring amounts, required to be transferred, the
Investor Education and Protection Fund by the Company during the year ended
March 31, 2025.
(d) The management has;
(i) represented that, to the best of its knowledge and belief as disclosed in the
Note No. 36 to the financial statements, 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 persons
or entities, including foreign entities (“Intermediaries”), with the
understanding, whether recorded in writing or otherwise, that the
Intermediary shall:
• directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever (“Ultimate Beneficiaries”) by or
on behalf of the Company or
• Provide any guarantee, security or the like to or on behalf of the
Ultimate Beneficiaries.
(ii) represented, that, to the best of its knowledge and belief as disclosed in the
Note No. 37 to the financial statements, no funds have been received by the
Company from any persons or entities, including foreign entities (“Funding
Parties”), with the understanding, whether recorded in writing or otherwise,
that the Company shall:
• directly or indirectly, lend or invest in other persons or entities
identified in any manner whatsoever (“Ultimate Beneficiaries”) by or
on behalf of the Funding Party or
• provide any guarantee, security or the like from or on behalf of the
Ultimate Beneficiaries; and
(iii) Based on such audit procedures as 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 (d) (i) and (d) (ii) contain any material
mis-statement.
(e) The company has not neither declared nor paid any dividend during the year
under Section 123 of the Act.
(f) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining
books of account using accounting software which has a feature of recording
audit trail (edit log) facility is applicable with effect from April 1, 2023 to the
Company and its subsidiaries, which are companies incorporated in India, and
accordingly, The Company has used accounting software ‘Tally Prime System'
for maintaining its books of account which has a feature of recording audit trail
facility and the same has not been operated throughout the period for all
transactions recorded in the software and the hence we are unable to comment
on audit trail feature of the said software.
FOR D G M S & CO.
Chartered Accountants
Jyoti J. Kataria
Partner
Membership No. 116861
UDIN: 25116861BMHVYT1148
Date: 30/05/2025
Place: Jamnagar
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