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Surana Solar Ltd.

BSE: 533298 Sector: Engineering
NSE: SURANASOL ISIN Code: INE272L01022
BSE 00:00 | 22 Feb 8.00 0.63
(8.55%)
OPEN

8.00

HIGH

8.00

LOW

8.00

NSE 00:00 | 22 Feb 8.00 0.50
(6.67%)
OPEN

7.25

HIGH

8.30

LOW

7.25

OPEN 8.00
PREVIOUS CLOSE 7.37
VOLUME 75
52-Week high 15.85
52-Week low 6.70
P/E 38.10
Mkt Cap.(Rs cr) 39
Buy Price 7.45
Buy Qty 2000.00
Sell Price 8.18
Sell Qty 49.00
OPEN 8.00
CLOSE 7.37
VOLUME 75
52-Week high 15.85
52-Week low 6.70
P/E 38.10
Mkt Cap.(Rs cr) 39
Buy Price 7.45
Buy Qty 2000.00
Sell Price 8.18
Sell Qty 49.00

Surana Solar Ltd. (SURANASOL) - Auditors Report

Company auditors report

To The Members of

M/s Surana Solar Limited

(formerlySurana Ventures Limited)

Report on the Standalone Ind AS Financial Statements

1. We have audited the accompanying Standalone Ind AS financial statements of M/s.Surana Solar Limited ("the Company") which comprise the Balance Sheet asat 31st

March 2018 the Statement of Profit and Loss including the statement of OtherComprehensive Income the Cash Flow Statement and the statement of change in Equity forthe year then ended and a summary of the significant accounting policies and otherexplanatory information

Management's Responsibility for the Financial

Statements

2. 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 financialstatements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowschanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) specified underSection 133 of the Act read with Rule

7 of the Companies (Accounts) Rules 2014 and the companies (Indian AccountingStandards) Rule 2015 as amended. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Standalone Ind

AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder. We conductedour audit of the standalone Ind AS financial statements in accordance with the Standardson

Auditing issued by the Institute of Chartered Accountants of India as specified underSection 143(10) of the Act.

Those Standards require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the financial statements are freefrom material misstatement.

4. An audit involves performing procedures to obtain audit

evidence about the amounts and disclosures in the financial statements. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the standalone Ind

AS financial statements whether due to fraud or error.

In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the standalone Ind ASfinancial statements.

Opinion

5. In our opinion and to the best of our information and and according to theexplanations given to us the standalone

Ind AS financial statements give the information required by the Act in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the

Company as at March 31 2018 its profit including other comprehensive income its cashflows and the changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

6. 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 Act we give in the "Annexure A" statement on the matters

Specified in paragraphs 3 and 4 of the Order.

7. As required by section 143(3) of the Act we further report that: a. we have soughtand obtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit. b. in our opinion proper books ofaccount as required by law have been kept by the Company so far as appears from ourexamination of those books; c. The Balance Sheet Statement of Profit and Loss includingthe Statement of Other Comprehensive Income the Cash Flow Statement and Statement ofChanges in Equity dealt with by this Report are in agreement with the 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 read with Rule 7 of theCompanies (Accounts) Rules 2014 Companies (Indian Accounting Standards) Rules 2015 asamended; e. on the basis of written representations received from the directors as onMarch 31 2018 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2018 from being appointed as a director in terms of Section164(2) of the Act; f. with respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate report in "Annexure B"; and g. With respect to other matters tobe included in the

Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us: (i) The Company does not have any pending litigations whichwould impact its financial position

(ii) The Company did not have any long-term contracts including derivative contracts;as such the question of commenting on any material foreseeable losses thereon does notarise (iii) There has not been an occasion in case of the Company during the year underreport to transfer any sums to the Investor Education and Protection Fund. The question ofdelay in transferring such sums does not arise

Emphasis of matter

8. Without qualifying our report we draw our attention that the company was awardedLOI Paradip Port Trust to set up 10MW solar power plant but due to technical disputes incourse of implementation of project they have invoked bank guarantees amounting to `66663020/-(Net of mobilization advance). Further the company has also spent `4985000/- towards the project. No provision has been made as the company's writ petitionchallenging PPT action has been disposed off by the Honorable High Court of Odisha with adirection to settle the disputes before the adjudicator or arbitrator.

Other Matter

9. The comparative financial information of the Company for the year ended 31stMarch 2017 and the transition date opening balance sheet as at 1st April 2016are based on previously issued statutory financial statements prepared in accordance withthe companies (Accounting Standards ) Rules 2006 audited by the predecessor auditor whosereports for the year ended 31st March 2017 and 31st March 2016dated 18th May 2017 and 24th

May 2016 respectively expressed an unmodified opinion on those statements as adjustedfor the differences in the accounting principles adopted by the Company on transition tothe Ind AS which have been audited by us.

Our opinion is not qualified in respect of these matters.

For Luharuka & Associates
Chartered Accountants
Firm Reg No:- 01882S
Place: Secunderabad Rameshchand Jain
Date: 26th May 2018 (Partner)
Membership No.023019

Annexure A referred to in Independent Auditors' Report to the members of the Company onthe standalone financial statements for the year ended 31st March 2018 wereport that i. (a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets ; (b) As explained to usfixed assets have been physically verified by the management at reasonable intervals.

According to the information and explanation given us no material discrepancies werenoticed on such verification;

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company. ii. (a) The inventories have been physically verified atreasonable intervals by the management.

(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness. (iii) The company did not grant any loan to corporate covered in the registermaintained under section 189 of the Companies Act 2013 (‘the Act').

(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 Act with respectto the loans and investments made. (v) The Company has not accepted any deposits from thepublic. (vi) We have broadly reviewed the cost records maintained by the companyprescribed by the Central Government of india under secton 148(1) of the Act and are ofthe opinion that prima facie the prescribed accounts and records have been maintained. Wehave however not made a detailed examination of the records with a view to determinewhether they are accurate or complete. (vii) (a) According to the information andexplanations given to us and based on the records of the company examined by us thecompany is generally regular in depositing the undisputed statutory dues includingProvident Fund Employees' State Insurance Income-tax Sales-tax Wealth Tax ServiceTax Custom Duty Excise Duty and other statutory dues as applicable with theappropriate authorities in India; (b) According to the information and explanations givento us and based on the records of the company examined by us there are no dues of IncomeTax Wealth Tax Service Tax Sales Tax Customs Duty and Excise Duty which have not beendeposited on account of any disputes;

(viii) According to the records of the company examined by us and as per theinformation and explanations given to us the company has not defaulted in repayment ofloans from any financial institution or banks and has not issued debentures. (ix) TheCompany did not raise any money by way of initial public offer or further public offer(including debt instruments) and term loans during the year. Accordingly paragraph 3 (ix)of the Order is not applicable. (x) According to the information and explanations given tous no material fraud by the Company or on the Company by its officers or employees hasbeen noticed or reported during the course of our audit.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not paid/provided formanagerial remuneration in accordance with the provisions of section 197 read withSchedule V to the Act. 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 transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

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

For Luharuka & Associates
Chartered Accountants
Firm Reg No:- 01882S
Place: Secunderabad Rameshchand Jain
Date: 26th May 2018 (Partner)
Membership No.023019

Annexure - B to the Auditors' Report

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

We have audited the internal financial controls over financial reporting of M/s.Surana Solar Limited ("the Company") as of 31 March 2018 in conjunction withour audit 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 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'). 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 company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

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 2018 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 Luharuka & Associates
Chartered Accountants
Firm Reg No:- 01882S
Place: Secunderabad Rameshchand Jain
Date: 26th May 2018 (Partner)
Membership No.023019