To The Members of
Surana Telecom and Power Limited Report on the Financial Statements
We have audited the accompanying fi nancial statements of Surana Telecom andPowerLimited ("the Company") which comprise the Balance Sheet as at 31 March2017 the Statement of Profi t and Loss the Cash Flow Statement for the year then endedand a summary of signifi cant 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) ofthe Companies Act 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the fi nancial position fi nancialperformance and cash fl ows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specifi ed 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 fi nancial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the fi nancial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these fi nancial statements based on ouraudit.
We have taken into account the provisions of the Act the accounting and auditingstandards andmatters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specifi ed 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 fi nancial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the fi nancial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the fi nancialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal fi nancial control relevant to the Company's preparationof the financial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the management as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is suffi cient and appropriate toprovide a basis for our audit opinion on the fi nancial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid fi nancial 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 2017 and its profi t and its cash fl ows for the year ended on that date.
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")as amended issued by the Central Government of India in terms of subsection (11) ofsection 143 of the Act we give in "Annexure A" a statement on mattersspecifi ed 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 andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit; b. In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books; c. The Balance Sheet the Statement of Profi t and Loss andCash Flow Statement dealt with by this Report are in agreement with the books of account;d. In our opinion the aforesaid fi nancial statements comply with the AccountingStandards specifi ed 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 thedirectors as on 31 March 2017 taken on record by the Board of Directors none of thedirectors is disqualifi ed as on 31 March 2017 from being appointed as a director interms of Section 164(2) of the Act; f. With respect to the adequacy of the InternalFinancial Controls over fi nancial reporting of the Company and the operatingeffectiveness of such controls refer to our separate Report in "Annexure B"; g.With respect to the other matters included in the Auditor's Report and in accordance withRule 11 of Companies (Audit and Auditors) Rules 2014 and in our opinion and to the bestof our information and explanations given to us: i. The Company has disclosed the impactof pending litigations on its fi nancial position in its fi nancial statements ReferNote 2.24 to the
fi nancial statements 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 betransferred to the Investor Education and Protection Fund by the Company. iv. The Companyhas provided requisite disclosures in Note 2.34 of its fi nancial statements as toholdings as well as dealings in Specifi ed Bank Notes during the period 8thNovember 2016 to 30th December 2016 and the disclosures are in accordance withthe books of accounts maintained by the company.
For Sekhar & Co. Chartered Accountants FRN: 003695-S
G. Ganesh Place: Secunderabad
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 fi nancial controls fi nancial reporting of SuranaTelecomand Power Limited ("the Company") as of 31 March 2017 in conjunction withouraudit of the standalone fi nancial 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 internal financial controls base on the internal control over fi nancial 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 internalfi nancial controls that were operating effectively for ensuring the orderly and efficient conduct 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 fi nancial information as required under the Companies Act 2013("theAct").
Our responsibility is to express an opinion on the Company's internal fi nancialcontrols over fi nancial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the Guidance Note') and the Standards on Auditing issued by ICAI anddeemed to be prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal fi nancial 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 fi nancial controls over fi nancial 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 fi nancial controls system over fi nancial reporting and their operatingeffectiveness. Our audit of the internal fi nancial controls over the fi nancial reportingincluded obtaining an understanding of the internal fi nancial controls over fi nancialreporting 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 fi nancial statements whether due to fraud orerror.
We believe that the audit evidence we have obtained is suffi cient and appropriate toprovide a basis for our audit opinion on the Company's internal fi nancial controlssystems over fi nancial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal fi nancial control over fi nancial reporting is a process designedto provide reasonable assurance regarding the reliability of the fi nancial reporting andthe preparation of fi nancial statements for external purposes in accordance it generallyaccepted accounting principles. A company's internal fi nancial control over fi nancialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly refl ect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of fi nancial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations of theManagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the fi nancial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal fi nancial controls over fi nancialreporting 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 fi nancial controls over fi nancialreporting to future periods are subject to the risk that the internal fi nancial controlover fi nancial reporting may become inadequate because of changes in conditions orthatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internal financial controls system over fi nancial reporting and such internal fi nancial controlsover fi nancial reporting were operating effectively as at 31 March 2017 based on theinternal control over fi nancial 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
Place: Secunderabad Partner Date: 18-May-2017 M.No.:211704