You are here » Home » Companies » Company Overview » Surana Telecom and Power Ltd

Surana Telecom and Power Ltd.

BSE: 517530 Sector: Others
NSE: SURANAT&P ISIN Code: INE130B01031
BSE LIVE 15:26 | 11 Dec 6.50 0.10
(1.56%)
OPEN

6.42

HIGH

6.61

LOW

6.35

NSE 15:31 | 11 Dec 6.45 0
(0.00%)
OPEN

6.25

HIGH

6.55

LOW

6.25

OPEN 6.42
PREVIOUS CLOSE 6.40
VOLUME 24795
52-Week high 9.39
52-Week low 3.79
P/E 43.33
Mkt Cap.(Rs cr) 94
Buy Price 6.41
Buy Qty 65.00
Sell Price 6.53
Sell Qty 500.00
OPEN 6.42
CLOSE 6.40
VOLUME 24795
52-Week high 9.39
52-Week low 3.79
P/E 43.33
Mkt Cap.(Rs cr) 94
Buy Price 6.41
Buy Qty 65.00
Sell Price 6.53
Sell Qty 500.00

Surana Telecom and Power Ltd. (SURANAT&P) - Auditors Report

Company auditors report

TO THE MEMBERS OF

SURANA TELECOM AND POWER LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of Surana Telecom and PowerLimited ("the Company") which comprise the Balance Sheet as at 31 March2016 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand a summary 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 in section 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor’s 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 theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the management as well as evaluating the overall presentationof the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2016 and its profit and its cash flows for the year ended on that date.

Emphasis of Matter

We draw your attention to Note 2.23(ii) of the financial statements wherein themanagement has disclosed the details of Claims against the company not acknowledged asdebts in respect of matters under dispute with statutory authorities.

Our opinion is not modified in this matter.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") as amended issued by the Central Government of India in terms of sub-section(11) of section 143 of the Act we give in "Annexure – A" a statement onmatters specified in paragraphs 3 and 4 of the Order.

2. 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 bestof 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 theCompany so far as it appears from our examination of those books;

c. The Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the books of account;

d. In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

e. On the basis of written representations received from the directors as on 31 March2016 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2016 from being appointed as a director in terms of Section 164(2) of theAct;

f. With respect to the adequacy of the Internal Financial Controls over financialreporting of the

Company and the operating effectiveness of such controls refer to our separate Reportin "Annexure B";

g. With respect to the other matters included in the Auditor’s Report and inaccordance with Rule 11 of Companies (Audit and Auditors) Rules 2014 and in our opinionand to the best of our information and explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements – Refer Note 2.23(ii) to the financialstatements and also included in the Emphasis of Matter paragraph above.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long term contracts includingderivative contracts.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For Sekhar& Co.
Chartered Accountants
FRN: 003695-S
G.Ganesh
Place : Secunderabad Partner
Date : 24-May-2016 M.No.: 211704

Annexure referred to in paragraph 1 of our report of even date

Re: Surana Telecom and Power Limited

i. a) The Company has maintained proper records showing full particular includingquantitative details and situation of fixed assets.

b) As explained to us the fixed assets have been physically verified by the managementin a phased manner designed to cover all the fixed assets over the year. In respect offixed assets verified according to this program which we consider reasonable no materialdiscrepancies were noticed on such verification.

c) The title deeds of immovable properties are held in the name of the company.

ii. The inventory except Goods-in-transit has been physically verified by themanagement at reasonable intervals during the year. In our opinion the frequency of suchverification is reasonable. In respect of inventory lying with third parties these havesubstantially been confirmed by them. No material discrepancies were noticed on physicalverification. iii. The Company has granted loans to one parties covered in the registermaintained under section 189 of the Act.

a) In respect of the aforesaid loans the terms and conditions under which such loanswere granted are not prejudicial to the company’s interest.

b) In respect of the aforesaid loans the schedule of repayment of principle andinterest has not been stipulated. Due to absence of schedule of repayment the regularityof the same could not be commented.

c) In absence of specific schedule of repayment of loans we are of the opinion of nooverdue amounts.

iv. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of Section 185 and 186 of the Companies Act 2013in respect of loans investments guarantees and security.

v. The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.

vi. We have broadly reviewed the cost records maintained by the Company prescribed bythe Central Government of India under Section 148(1) of the Act and are of the opinionthat prima facie the prescribed accounts and records have been maintained. We havehowever not made a detailed examination of the cost records with a view to determinewhether they are accurate or complete.

vii. a) According to information and explanations given to us and on the basis of ourexamination of the books of accounts and records the Company has been generally regularin depositing undisputed statutory dues with appropriate authorities including providentfund employees’ state insurance income tax sales tax service tax duty ofcustoms duty of excise value added tax cess and any other statutory dues with theappropriate authorities. According to the information and explanations given to us noundisputed amounts payable in respect of the above were in arrears as at March 312016 fora period of more than six months from the date on when they become payable.

b) According to the information and explanations given to us no undisputed amountspayable in respect of income tax sales tax wealth tax service tax duty of customsduty of excise value added tax or cess were in arrears as at 31st March 2016 for a periodmore than six months from the date they became payable.

c) Details of dues of Duty of Excise Duty of Customs and Income Tax which have notbeen deposited as on 31st March 2016 on account of disputes are given below:

Sl. No. Name of Statute Nature of Dues Amount not paid/ (Amount involved in dispute) Period to which it relates Forum where dispute is pending
1 Central Excise Act 1944 Excise Duty 14032981 2004-05 CESTAT – Mumbai
(14032981)
1712827 2007-08 Supreme Court of India
(31324943)
187495 2007-09 CESTAT – Bangalore
(187495)
2 Service Tax Input Credit 1724796 2010-11 CESTAT – Bangalore
(2463994)
3 Customs Act 1964 Custom Duty 1275654 2009-10 CESTAT – Bangalore
(2275654)
4 A. P. General Sales Tax Act Income Tax 1080332 1994-95 Commercial Tax Officer
(2160663)

The above amounts are net of taxes paid under protest at Rs 32940558 in Long TermAdvances which are part amounts paid pending final decision of the matter under dispute.

viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of dues to banks. The Company has not taken anyloan either from financial institutions or from the government and has not issued anydebentures.

ix. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not raised moneys by way of initial public offeror further public offer including debt instruments and term loans. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the Company and hence notcommented upon.

x. Based upon the audit procedures performed and the information and explanations givenby the management we report that no fraud by the company or on the company by itsofficers or employees has been noticed or reported during the year.

xi. Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act.

xii. In our opinion the Company is not a Nidhi company. Therefore the provisions ofclause 4 (xii) of the Order are not applicable to the Company.

xiii. In our opinion all transactions with the related parties are in compliance withSection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.

xiv. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3 (xiv) of the Order are not applicable tothe company and hence not commented upon.

xv. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the company and hence not commented upon.

xvi. In our opinion the company is not required to be registered under Section 45 IAof the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi)of the Order are not applicable to the company and hence not commented upon.

For Sekhar& Co.
Chartered Accountants
FRN: 003695-S
G.Ganesh
Place : Secunderabad Partner
Date : 24-May-2016 M.No.: 211704

Annexure B to the Auditor’s Report:

Report on the Internal Financial Controls under the Clause (i) of sub section 3 ofSection 143 of the Companies Act 2013 (‘the Act)

We have audited the internal financial controls financial reporting of Surana Telecomand Power Limited ("the Company") as of 31 March 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management’s responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls base on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI’). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company’s policies thesafeguarding of its assets the prevention and detention of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013("theAct").

Auditors’ Responsibility:

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the ‘Guidance Note’) and the Standards on Auditing issued by ICAI and deemedto be prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting were established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of the internal financial controls over the financial reportingincluded obtaining an understanding of the internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on assessed risk. Theprocedures selected depend on the auditors’ judgment including the assessment of therisks of material misstatements of the financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystems over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of the financialreporting and the preparation of financial statements for external purposes in accordanceit generally accepted accounting principles. A company’s internal financial controlover financial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofthe Management and directors of the Company; and (3) provide reasonable assuranceregarding prevention or timely detection of unauthorized acquisition use or dispositionof the Company’s assets that could have a material effect on the financialstatements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Sekhar& Co.
Chartered Accountants
FRN: 003695-S
G.Ganesh
Place : Secunderabad Partner
Date : 24-May-2016 M.No.: 211704