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Sunedison Infrastructure Ltd.

BSE: 531260 Sector: Infrastructure
NSE: N.A. ISIN Code: INE332F01018
BSE 00:00 | 26 May Sunedison Infrastructure Ltd
NSE 05:30 | 01 Jan Sunedison Infrastructure Ltd
OPEN 8.98
PREVIOUS CLOSE 8.98
VOLUME 1
52-Week high 8.98
52-Week low 6.11
P/E
Mkt Cap.(Rs cr) 4
Buy Price 8.98
Buy Qty 299.00
Sell Price 0.00
Sell Qty 0.00
OPEN 8.98
CLOSE 8.98
VOLUME 1
52-Week high 8.98
52-Week low 6.11
P/E
Mkt Cap.(Rs cr) 4
Buy Price 8.98
Buy Qty 299.00
Sell Price 0.00
Sell Qty 0.00

Sunedison Infrastructure Ltd. (SUNEDISONINFRA) - Auditors Report

Company auditors report

To the members of SunEdison Infrastructure Limited (formerly known as YKM IndustriesLimited)

Report on the standalone Ind AS Financial Statements Opinion

We have audited the accompanying standalone Ind AS financial statements of SunEdisonInfrastructure Limited formerly known as YKM Industries Limited (hereinafter referredto as "the Company") which comprises the Balance Sheet as at March312019 the Statement of Profit and Loss (including Other Comprehensive income)theStatement of Changes in Equity and the Statement of Cash Flows for the year then endedand Notes to the financial statements including a summary of significant accountingpolicies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Companies Act 2013 ("the Act") in the manner so required andgive a true and fair view in conformity with the Indian Accounting Standards prescribedunder section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended ("Ind AS") and other accounting principles generally acceptedin India of the state of affairs of the Company as at March 31 2019 and profit changesin equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities underthoseStandards are further described in the Auditor's Responsibilities for the Audit ofthestandalone Ind AS Financial Statements section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the standalone Ind AS financial statements underthe provisions of the Companies Act2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our opinionon the standalone Ind AS financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone Ind AS financial statements of the currentperiod. These matters were addressed in the context of our audit of the standalone Ind ASFinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. In addition to the matter described in the Basis forQualified Opinion section and Material Uncertainty Related to Going Concern section of ourreport we have determined the matters described below to be the key audit matters to becommunicated in our report.

Sr. No Key Audit Matter Auditor's Response
1 Accuracy of recognition measurement presentation and disclosure of revenues and other related balances in view of adoption of Ind AS 115 "Revenue from Contracts with Customers"
The application of the new revenue accounting standard involves certain key judgements relating to identification of distinct performance obligations determination of transaction price of the appropriateness of the basis used to measure revenue recognized over a period. Our procedures included among others obtaining an understanding of contract execution processes and relevant controls relating to the accounting for customer contracts. We tested the relevant internal controls used to ensure the completeness accuracy and timing of revenue recognized including controls over the degree of completion of service contracts at year-end.
Further it comprises the point in time when transfer of control has occurred regarding sale of solar components. Recognition of the Company's revenue is complex due to several types of customer contracts utilized. Refer Note 3(c) of the standalone Ind AS financial statements. We read a sample of sales contracts to assess whether the method for recognition of revenue was relevant and consistent with Ind AS 115 and has been applied consistently. We focused on contract classification allocation of income and cost to individual performance obligations and timing of transfer of control. Where a contract contained multiple elements we considered Management's judgements as to whether they comprised performance obligations that should be accounted for separately and in such cases challenged the judgements made in the allocation of consideration to each performance obligation.
We evaluated and challenged the significant judgements and estimates made by Management in applying the Company's accounting policy to a sample of specific contracts and separable performance obligations of contracts and we obtained evidence to support them including details of contractual agreements delivery records and cash receipts. For the contracts selected we inspected original signed contracts and reconciled the revenue recognized to the underlying accounting records.

Information Other than the standalone Ind AS Financial Statements and Auditor's ReportThereon

The Company's Board of Directors is responsible for the other information. The otherinformation obtained at the date of this auditor's report is information included in theDirector's report but does not include the standalone Ind AS financial statements andourauditor's report thereon.

Our opinion on the standalone Ind AS financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone Ind AS financialstatements or our knowledge obtained during the course of our audit or otherwise appearsto be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance changes in equity and cash flows of the Companyin accordance with the Indian Accounting Standards (Ind AS) and accounting principlesgenerally accepted in India. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the Ind AS financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.

In preparing the standalone Ind AS financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the company's financialreporting process

Auditor's Responsibility for the Audit of the standalone Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these standalone Ind AS financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone Ind ASfinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone Ind AS financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the standalone IndAS financial statements including the disclosures and whether the standalone Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the standalone Ind AS financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Ind AS financial statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary forthe purposes of ouraudit.

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 including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreementwith the relevant books of account.

d) In our opinion the aforesaid standalone Ind AS financial statements comply with theAccounting Standards specified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on March31 2019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 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 ourseparate Report in "Annexure A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended in our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act.

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

i. The Company does not have any pending litigations which would impact its financialposition.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the "Annexure B" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

For M. KRISHNAKUMAR & ASSOCIATES

Chartered Accountants

Firm Registration No: 0006853S

M. Krishna Kumar Bsc FCA.

Proprietor

Membership No: 203929

Place: Chennai Date : May 30 2019

Annexure A to the Independent Auditor's Report

(Referred to in paragraph 1(f) under 'Report on Other Legal and RegulatoryRequirements' section of our report to the Members of SunEdison Infrastructure Limitedformerly known as YKM Industries Limited of even date)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of SunEdisonInfrastructure Limited formerly known as YKM Industries Limited ("the Company")as of March 31 2019 in conjunction with our audit of the standalone Ind AS financialstatements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based 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'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired underthe Companies Act 2013.

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 was 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 internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

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 controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of 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 orfraud mayoccurand not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2019 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For M. KRISHNAKUMAR & ASSOCIATES

Chartered Accountants

Firm Registration No: 0006853S

M. Krishna Kumar Bsc FCA.

Proprietor

Membership No: 203929

Place: Chennai Date : May 30 2019

Annexure B to the Independent Auditor's Report

(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements'section of our report to the Members of SunEdison Infrastructure Limited formerlyknown as YKM Industries

Limited of even date)

(i) In respect of its fixed assets:

(a) The Company has maintained proper records showing full particulars includingquantitative details and location of fixed assets

(b) The Company has a regular program of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. In ouropinion this periodicity of physical verification is reasonable having regard to the sizeof the company and nature of its assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there are no immovable properties are held inthe name of the Company.

(ii) In respectof inventories

(a) Inventories have been physically verified by the management during the year. In ouropinion the frequency of such verification is reasonable.

(b) The procedures for physical verification of inventories followed by the managementare reasonable and adequate considering the nature and size of the Company and the natureof its business.

(c) The Company is maintaining proper records of inventory. The discrepancies noticedon verification between the physical stocks and the book records were not material.

(iii) According to the information and explanations given to us and on the basis of ourexamination of books of accounts the Company has not granted any loan secured orunsecured to companies firms limited liability partnerships or other parties covered inthe register required under Section 189 of the Companies Act 2013 and hence paragraph3(iii) of the order is not applicable.

(iv) The Company does not have any loan investments guarantees and security whichrequires compliance under Sections 185 and 186 of the Act.

(v) According to the information and explanations made available to us the Company hasnot accepted deposits from the public.

(vi) The Central Government has not prescribed the maintenance of cost records undersection 148(1) oftheAct.

(vii) According to the information and explanations given to us and on the basis of ourexamination of books of accounts in respectof statutory dues

a) The Company has generally been regular in depositing undisputed statutory duesincluding provident fund income tax Goods and Service tax customs duty and othermaterial statutory dues with the appropriate authorities. There are no undisputed amountspayable in respect of provident fund income tax Goods and Service tax customs duty andother material statutory dues as at 31 March 2019 fora period of more than six months fromthe date they became payable.

b) The company has no material dues of duty of Provident fund Employees' StateInsurance income tax or Goods and Service tax or duty of customs or Cess which have notbeen deposited with the appropriate authorities on account of any dispute as on 3181March 2019.

(viii) According to the information and explanations given to us and on the basis ofour examination of books of accounts the Company has not defaulted in repayment ofborrowings to a financial institution.

(ix) According to the information and explanations given to us and on the basis of ourexamination of books of accounts the Company did not raise any money by way of initialpublic offer or further public offer (including debt instruments) and term loans duringthe year.

(x) According to the information and explanations given to us no fraud by the Companyor no fraud on the Company by its officers or employees has been noticed or reportedduring the year.

(xi) The Company has not paid any remuneration during the f.y. 2018-2019 to its boardof directors the provisions of Section 197 of the Act is not applicable to the Company.Accordingly paragraph 3(xi) of the Order is not applicable.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company Transaction with the related parties are incompliance with section 188 of the Act where applicable and details of such transactionshave been disclosed in the standalone Ind AS financial statements as required by theapplicable Indian accounting standards. The provisions of section 177 are not applicableto the company and accordingly reporting under clause 3(xiii) is so far as it relates tosection 177 of the act is not applicable to the Company and hence not commented upon.

(xiv) According to the information and explanations given to us and on the basis of ourexamination of books of accounts the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the year.

(xv) According to the information and explanations given to us and on the basis of ourexamination of books of accounts the Company has not entered into non-cash transactionswith directors or persons connected with him. Accordingly paragraph 3(xv) of the Order isnot applicable.

(xvi) The Company is not required to be registered under section 45-IAof the ReserveBank of India Act 1934.

For M. KRISHNAKUMAR & ASSOCIATES

Chartered Accountants

Firm Registration No: 0006853S

M. Krishna Kumar Bsc FCA.

Proprietor

Membership No: 203929

Place: Chennai

Date : May 30 2019