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Surana Corporation Ltd.

BSE: 531102 Sector: Consumer
NSE: SURANACORP ISIN Code: INE357D01010
BSE 11:53 | 19 Jan 0.85 0.04
(4.94%)
OPEN

0.85

HIGH

0.85

LOW

0.85

NSE 10:26 | 22 Jan 1.30 0
(0.00%)
OPEN

1.30

HIGH

1.30

LOW

1.30

OPEN 0.85
PREVIOUS CLOSE 0.81
VOLUME 2500
52-Week high 1.75
52-Week low 0.78
P/E
Mkt Cap.(Rs cr) 2
Buy Price 0.85
Buy Qty 13210.00
Sell Price 0.00
Sell Qty 0.00
OPEN 0.85
CLOSE 0.81
VOLUME 2500
52-Week high 1.75
52-Week low 0.78
P/E
Mkt Cap.(Rs cr) 2
Buy Price 0.85
Buy Qty 13210.00
Sell Price 0.00
Sell Qty 0.00

Surana Corporation Ltd. (SURANACORP) - Auditors Report

Company auditors report

TO THE MEMBERS OF SURANA CORPORATION LIMITED REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of Surana Corporation Limited(‘the Company') which comprise the Balance Sheet as at March 31 2017 and theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

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 Companies Act 2013 ( "the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the generallyaccepted Accounting principles accepted in India including the Indian accountingstandards (Ind AS) specified under section 133 of the act read with rule 7 of thecompanies (Accounts) Rules 2014.

This responsibility also includes the maintenance of adequate accounting records inaccordance with the provisions of the act for safeguarding the assets of the company andfor preventing and detecting the frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgment and estimates that arereasonable and prudent; and design implementation and maintenance of internal financialcontrol that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

Auditors Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the act and the rules made there under.

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

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation of the financialstatements that give true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bycompany's directors as well as evaluating the overall presentation of the financialstatements.

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

Basis for Qualified Opinion:

a. The Consortium of Lenders has exited from the CDR package during the year and as aresult repayment of loan should be as per the original agreements entered with suchlender banks. However in the absence of the relevant details and information with respectto calculation of interest including penal interest we are unable to comment upon theimpact of such exit on the carrying amount of interest expense and loan liability for thefinancial year ended March 312017 and the consequential impact on the financial results.The Company has not provided for the interest and the penal interest on certain borrowingsfor the year ended March 312017 which is estimated at Rs. 4697.57 lakhs.

b. The Company has considered trade receivables outstanding for more than 6 months ofRs. 24936.11 lakhs and long term trade receivables of Rs. 35892.94lakhs as good andrecoverable. However we were unable to confirm or verify by alternative means balancesof such trade receivables and we are unable to comment on the adjustments that may berequired as at March 31 2017.

c. Had provision been made with respect to the above interest and receivables in thebooks of accounts the net loss would have been increased by 65525.64 lakhsandconsequently net- worth would have been reduced by Rs. 65525.64lakhs.

d. The Company has not complied with the requirements of Ind AS-109 "FinancialInstruments" in terms of measurement of carrying values of the financial instrumentsas at March 31 2017 and the corresponding figures as at March 31 2016 and the disclosurerequirements of its financial instruments as specified by Ind AS-107 "FinancialInstruments: Disclosures". In the absence of these information we are unable tocomment on the adjustments that may be required to the carrying values of the financialinstruments.

Opinion:

In our opinion and to the best of our information and according to the explanationgiven to us except for the effects of matters as described in the Basis for QualifiedOpinion paragraph as above the aforesaid Financial Statements give the informationrequired by the Actin the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2017 their loss cash flows and statement of changes in equityfor the year ended on that date.

Emphasis of Matter

We draw attention to Note no 39 the Company has incurred net loss of Rs. 31926.64lakhs during year ended March 31 2017 and as on that date the Company's currentliabilities exceeded its current assets by Rs. 119317.03 lakhs. These conditions alongwith other matters as set forth in the aforesaid note indicate the existence of a materialuncertainty that may cast significant doubt about the Company's ability to continue as agoing concern. However the financial statements have been prepared under the assumptionof going concern considering the outcome of the consortium meeting dated December 142016 and May 08 2017 whereby the company has offered One Time Settlement of itsliabilities with the consortium members which has been considered by them for furtherapproval. The ability of the company to continue as a going concern is significantlydependent on the further approval by consortium of lenders on the one time settlementoffered by the company.

Our opinion is not qualified in respect of the above matter.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditors report) Order 2016 ("The Order")issued by the Central

govemment of India in terms of subsection 11 of section 143 of the Act We give in the"Annexure

A" a statement on the matter specified in paragraphs 3 & 4 of the order.

2. As required by section 143(3) of the Act we report that:

a. We have sought and except for the effects / possible effects of the matter describedin the Basis for Qualified Opinion paragraph aboveobtained all the information andexplanations which to the best of our knowledge and belief were necessary for the purposeof our audit of the aforesaid Ind AS financial statements;

b. Except for the effects / possible effects of the matter described in the Basis forQualified Opinion paragraph above in our opinion proper books of account as required bylaw have been kept by theCompany so far as it appears from our examination of those books;

c. The Balance Sheet the Statement of Profit and Loss the Statement of Cash Flows andStatement of Changes in Equity dealt with by this report are in agreement with therelevant books of account maintained for the purpose of preparation of the Ind ASfinancial statements.

d. Except for the effects / possible effects of the matter described in the Basis forQualified Opinionparagraph above in our opinion the aforesaid Ind AS financialstatements comply with the accountingstandards specified under Section 133 of the Actread with relevant rules issued thereunder.

e. The matters described in the Basis for Qualified Opinion paragraph above in ouropinion may havean adverse effect on the functioning of the Company.

f. On the basis of the written representations received from the directors oftheCompany as on 31 March 2017 taken on record by the Board of Directors of the Companynone of the Directors of the Company incorporated in India are disqualified as on 31 March2017 from being appointed as a Director of that company in terms of Section 164(2) of theAct.

g. with respect to the adequacy of the internal financial controls over financialreporting and the operating effectiveness of such controls refer to our separate reportin "Annexure A"

h. With respect to the other matters included in the auditor's report and to best ofour information and according to the explanation given to us.

1) Except for the effects / possible effects of the matter described in the Basis forAdverse Opinion paragraph above the Ind AS financial statements disclose the impact ofpending litigations on the financial position of the Company.

2) Except for the effects / possible effects of the matter described in the Basis forAdverse Opinion paragraph above provision has been made in the financial statement asrequired under the applicable law or accounting Standards for material foreseeablelosses if any on long term contracts including derivative contracts.

3) There has been no delay in transferring amounts required to be transferred to theinvestor's education and protection fund by the Company.

4) The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016. However we are unable to obtainsufficient and appropriate audit evidence to report on whether the disclosures are inaccordance with books of account maintained by the Company and as produced to us by theManagement - Refer Note 11.

For V D S R & Co

Chartered Accountants F.R. No 001626S

Venkatesh Kamath .S.V PartnerMembership No : 202626

Place : Chennai.

Date : May 18 2017