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Surana Solar Ltd.

BSE: 533298 Sector: Engineering
NSE: SURANASOL ISIN Code: INE272L01022
BSE 00:00 | 29 May 5.45 -0.03
(-0.55%)
OPEN

5.45

HIGH

5.45

LOW

5.45

NSE 00:00 | 29 May 5.35 -0.05
(-0.93%)
OPEN

5.70

HIGH

5.70

LOW

5.15

OPEN 5.45
PREVIOUS CLOSE 5.48
VOLUME 2000
52-Week high 12.25
52-Week low 5.07
P/E 41.92
Mkt Cap.(Rs cr) 27
Buy Price 5.45
Buy Qty 10.00
Sell Price 5.70
Sell Qty 500.00
OPEN 5.45
CLOSE 5.48
VOLUME 2000
52-Week high 12.25
52-Week low 5.07
P/E 41.92
Mkt Cap.(Rs cr) 27
Buy Price 5.45
Buy Qty 10.00
Sell Price 5.70
Sell Qty 500.00

Surana Solar Ltd. (SURANASOL) - Auditors Report

Company auditors report

To The Members of

M/s Surana Solar Limited

Report on the Audit of Standalone Ind AS Financial Statements Opinion

1. We have audited the accompanying Ind AS Standalone financial statements of SURANASOLAR LIMITED ("the Company") which comprise the Balance and Loss Sheet includingthe as at 31st March 2019 the Statement of Profit statement of Other ComprehensiveIncome the Cash Flow Statement and the statement of change in Equity for the year thenended and notes to the standalone financial statements including the summary of thesignificant accounting policies and other explanatory information.

2. 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 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

2019 and total comprehensive income (comprising of profit and other comprehensiveincome) its cash flows and changes in equity for the year ended on that date.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act.

Our responsibility under those standards are further described in the ‘Auditor'sResponsibility for the Audit of the Financial Statements' section of our report. We areindependent of the company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India together with the ethical requirements that are relevantto our Audit of The

Financial Statements under the provision of the Act and the Rules thererunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion.

Emphasis of matter

4. Without qualifying our report we draw our attention that a. the company has enteredinto a contract with Paradip Port Trust for setting up 10MW power plant but due totechnical and financial dispute for completion of project they have invoked bankguarantee amounting to Rs.66663020/-

Further the company has also spent Rs. 4985000/- towards the project. No provisionhas been made as the company has filed suit against the same and the matter is stillpending with the high court. b. Refer to Note-5 (Propertyplantandequipment)oftheenclosedfinancialstatements Rs. 114358692/- is shown under CWIPin respect of its plants at hyderabad for manufacture of solar cell. Due to adverse marketconditions operation have not been commenced. No adjustment is required as the managementis of the view to resume its operation on the basis of future business plans and itsviability.

Our opinion is not modified in respect of these matters.

Key Audit Matters

5. Key audit matters are those matters that in our professional judgment were of mostsignificance in our Audit of Financial

Statements of the current period these matters were addressed in the context of ourAudit of the Standalone Financial Statements as a whole and in forming our opinionthereon and we do not provide a separate opinion on these matters. For each matter belowour description of how our audit addressed the matter is provided in that context.

Sl No. Key Audit Matter How our audit addressed the key audit matter
1. Net Realizable Value of Finished Goods
Finished goods inventory are valued at lower of cost and net realizable value (estimated selling price less estimated cost to sell). Considering that there is always a volatility in the selling price of solar products which is dependent upon various market conditions determination of the net realizable value involves significant management judgement and therefore has been considered as a key audit matter. Obtained an understanding of the determination of the net realizable values of the commodities and assessed and tested the reasonableness of the significant judgements applied by the management.
Evaluated the design of internal controls relating to the valuation of finished goods (including commodities) and also tested the operating effectiveness of the aforesaid controls. Compared the actual realization after the year end / latest realization to assess the reasonableness of the net realisable value that was estimated and considered by the management.
Compared the actual costs incurred to sell after the year end / based on the latest sale transaction to assess the reasonableness of the cost to sell that was estimated and considered by the management.
The total value of finished goods (commodities) as at 31 March 2019 is Rs. 1186.27 lakhs. Also refer to Note 4(i) for the accounting policy on No 9 to the Financial Statement. Compared the cost of the finishedgoods with the estimated net realisable value and checked if the finished goods were recorded at net realisable value where the cost was higher than the net realisable value.
Assessed the appropriateness of the disclosure in the standalone financial statements in accordance with the applicable financial reporting valuation of finished goods and Noteframework.

We have determined that there are no other key audit matters to communicate in ourreport.

Other Information

6. The company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the annual report but does include theStandalone financial statements and our auditor's report thereon.

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

8. In connection with our audit of the standalone financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtain in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of theother information we are required to report that fact. We have nothing to report in thisregard.

Responsibilities of management and those charged with the governance for the financialstatements.

9. 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 Ind AS financial statements that give a true and fair view of the financialposition financialperformance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting

Standards (Ind AS) specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 and the companies (Indian Accounting Standards) Rule2015 as amended. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Ind AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

10. In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelating 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. The Board of Directors are also responsible foroverseeing the company's financial reporting process.

Auditors Responsibilities for the audit of Financial Statements.

11. Our objectives are to obtain reasonable assurance about whether the Standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these financial statements.

12. 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 financial statementswhether due to fraud or error design and perform audit procedures responsive to those sufficientandrisks obtain audit evidence that is appropriate to provide a basis for our opinion.

Obtain an understanding of internal financial controls relevant to the audit in orderto 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 with reference in place and the operatingeffectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 financial disclosures are inadequate to modify our opinion. Our conclusions are basedon the audit evidence obtained up to the date of our auditor's report. However futureevents or conditions may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and statements representwhetherthe underlyingtransactions and events in a manner that achieves fair financial presentation.

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

14. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

15. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the financial statements ofthe current describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits communication.

Report on Other Legal and Regulatory Requirements

16. 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 B" statement on the matters Specified inparagraphs 3 and 4 of the Order.

17. 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 of Changes in Equity dealt with by this Report are inagreement with the books of account; d. In our opinion the aforesaid Ind AS financialstatements comply with the Accounting Standards specified under section

133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 Companies(Indian Accounting Standards) Rules 2015 as amended; e. on the basis of writtenrepresentations received from the directors as on March 31 2019 and taken on record bythe as on March 31 2019 from BoardofDirectorsnoneofthedirectorsisdisqualified beingappointed as a director in terms of Section 164(2) of the Act; f. with respect totheadequacyoftheinternalfinancialcontrolsoverfinancialreporting of the Company and theoperating effectiveness of such controls refer to our separate report in "AnnexureA"; and g. With respect to 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 have pending litigations as refer to note no.39 adverse effect ofwhich would impact its financial position. (ii) The Company did not have any long-termcontracts including derivative contracts; as such the question of commenting on anymaterial foreseeable losses thereon does not arise. (iii) There has not been an occasionin case of the Company during the year under report to transfer any sums to the InvestorEducation and Protection Fund. The question of delay in transferring such sums does notarise.

For Luharuka & Associates
Chartered Accountants
Firm Reg No:- 01882S
Place: Secunderabad Rameshchand Jain
Date: 23rd May 2019 (Partner)
Membership No.023019

Annexure A - to the Auditors' Report

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

1. We have audited the internal financial controls with reference to StandaloneFinancial Statements of SURANA SOLAR LIMITED ("the Company") as of 31March 2019 in conjunction with our audit of the Standalone financial statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

2. The Company's management is responsible for establishing and maintaining internalfinancial based on the internal control over financial criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India (‘ICAI'). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the

Company's internal financial controls over financial reporting based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls over Financial Reporting (the "Guidance Note") and the Standards onAuditing issued by ICAI and deemed to be prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial applicableto an audit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial an understanding ofinternal financial controls over financial reporting assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial whether due to fraud or error.

5. 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 systemwith reference to financial statements.

Reporting

6. A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial 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 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

7. 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. controls both

Opinion

8. In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlswith reference to Standalone financial statements were operating effectively as at 31March 2019 based on the internal control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India.

For Luharuka & Associates
Chartered Accountants
Firm Reg No:- 01882S
statements
Place: Secunderabad Rameshchand Jain
Date: 23rd May 2019 (Partner)
Membership No.023019

We report that

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets ; (b) As explained to us fixed assetshave 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 property held inthe name of company.

(ii) (a) The inventories have been physically verified at reasonable intervals by themanagement.

(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'). Thus paragraph3(iii) of the Order is not applicable to the Company. (iv) In our opinion and according tothe information and explanations given to us the Company has complied with the provisionsof section 185 and 186 of the Act with respect to the loans and investments made. (v) TheCompany has not accepted any deposits from the public. (vi) We have broadly reviewed thecost records maintained by the company prescribed by the Central Government of India undersection 148(1) of the Act and are of the opinion that prima facie the prescribed accountsand records have been maintained. We have however not made a detailed examination ofthe cost records with a view to determine whether they are accurate or complete.

(vii) (a) According to the information and explanations given to us and based on therecords of the company examined by us the company is generally regular in depositing theundisputed statutory dues including Provident Fund Employees' State InsuranceIncome-tax Sales-tax Wealth Tax Service Tax Custom Duty Excise Duty and otherstatutory dues as applicable with the appropriate authorities in India; (b) According tothe information and explanations given to us and based on the records of the companyexamined by us there are no dues of Income Tax Wealth Tax Service Tax Sales TaxCustoms Duty and Excise Duty which have not been deposited 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 debenture. (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 to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe 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 provided for managerialremuneration in accordance with the provisions of section 197 read with Schedule V to theAct. (xii) In our opinion and according to the information and explanations given to usthe Company 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: 23rd May 2019 (Partner)
Membership No.023019