| We have audited the Accompanying financial statements of Surana
Corporation Limited which comprise of Balance sheet as at 31st March,
2015, the Profit and loss statement and the Cash flow for the year then
ended and summary of significant accounting policies and explanatory
information.
Management's responsibility for the standalone financial statements
The Management is responsible for the matters stated in sec(134)(5) of
Companies Act 2013 with respect to the preparation of these standalone
financial statements that give a true and fair view of financial
position, financial performance of the company in accordance with the
accounting principles generally accepted in including the Accounting
Standards specified under sec(133) of the Act read with rule 7 of
companies (accounts) Rules, 2014. The respective Board of Directors of
the companies are responsible for maintenance of adequate accounting
records in accordance with the provisions of the Act for safe guarding
the assets of the company and for preventing and detecting frauds and
other irregularities; the selection and application of appropriate
accounting policies, Making Judgments and Estimates that are reasonable
and prudent; and design; implementation and maintenance of adequate
internal financial controls that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatements, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken in to account the provisions of the Act, the Accounting
and Auditing Standards and matters which are required to be included in
the Audit Report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Sec 143(10) of the Act. Those Standards require that we
comply with ethical requirement and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditors' judgments, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true & fair view in
order to design audit procedures that are appropriate in the
circumstance, but not for the purpose of expressing an opinion on
whether the Company has an adequate internal financial control systems
over financial reporting in place and the operating effectiveness of
such controls. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in manner so required and give a true and fair view
in conformity with the according principles generally accepted in India
of the state of affairs of the Company as at March 31, 2015, its Profit
/Loss and its Cash Flow for the year ended on that date.
Emphasis of Matter
The accumulated losses at the end of the financial year are more than
fifty percent of its net worth. The entire net worth of the Company has
eroded due to the Loss. The Company has incurred both Non cash Loss and
Cash Loss during the financial year covered by our audit. The cash Loss
is due to the Financial expenditure on the Loans taken. As per AS - 1,
the going concern concept of the company is doubtful. However as per
the Management statement all the financial loss of the company has been
converted into long term loans as per the CDR package approved by the
banks. Hence the company is confident of reviving its business.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS:
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order"), issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
2. As required by section 143(3) of the Act, we report, to the extent
applicable, that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit of the aforesaid financial statement.
(b) In our opinion, proper books of account as required by law relating
to preparation of the aforesaid financial statements have been kept so
far as it appears from our examination of those books and the reports
of the other auditors.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
relevant books of account maintained for the purpose of preparation of
the financial statements
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors of the Company, none of the directors of the Group Companies,
is disqualified as on 31st March 2015 from being appointed as a
director in terms of section 164 (2) of the Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and
Auditor's) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us:
(i) Adequate provisions have been made on pending litigations which
would impact the financial position of the company.
(ii) The Company did not have any material foreseeable losses on
long-term contracts including derivative contracts.
(iii) There were no amounts which were required to be transferred to
the investor Education and Protection Fund by the Company
The Annexure referred to in paragraph 1 of the our report of even date
to the members of M/s Surana Corporation limited on the accounts of the
Company for the year ended 31st March, 2015.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no materials discrepancies were
noticed on such verification.
(c) During the year the company had sold 5 of its windmill assets for
Rs. 5.0 Crores
2. (a) As explained to us, Inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of
inventories by the management as compared to records.
3. According to the information and explanations given to us and on
the basis of our examination of the books of account, the company has
not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 189 of
the Companies Act, 2013. Consequently the provisions of clauses iii (a)
and iii (b) of the order are not applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories and fixed assets and for the
sale of goods and services. During the course of our audit, no major
instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. The company has not accepted and deposits hence the directives
issued by Reserve Bank of India and provisions of sections 73 to 76 or
any other relevant provisions of the Companies Act, 2013 are not
applicable to the Company.
6. The central government has not specified maintenance of cost
records for the company under sub - section (1) of section 148 of the
Companies Act 2013.
7. (a) The Company is regular in depositing undisputed statutory dues
including
Provident Fund, Investor Education and Protection Fund, Employees'
State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty, Cess to the extent applicable and any other
statutory dues with the appropriate authorities except on few occasions
where minor irregularities were noticed. According to the information
and explanations given to us there were no outstanding statutory dues
as on 31st March, 2015 for a period of more than six months from the
date they became payable.
(b) The company has no dues of Income Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty; Value added Tax or cess which has not been
deposited on account of any disputes.
(i) The Company has disputed the dues of Customs duty amounting to
Rs.13,539,725/- (F.Y.2005-06) and the case is pending before CESTAT Goa
(c) The Company has no amount which is required to be transferred to
investor education and protection fund in accordance with the relevant
provisions of the Companies Act 2013.
8. The Company has defaulted in repayments of dues to a financial
institution bank or debenture holders.
9. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
10. The term loan raised by Company was applied for the purpose for
which it has been raised.
11. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For C.S.P Jain & Co
Chartered Accountants
FRN No: 001227S
-Sd/-
C.S. PRITHVIRAJ JAIN
Proprietor
Membership No.: 115219
Chennai
30th May, 2015
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