We have audited the accompanying Standalone Financial Statements of SURANA SOLAR LIMITED (“the Company”), which
comprise the Balance Sheet as at 31st March, 2025, the Statement of Profit and Loss (including the statement of Other
Comprehensive Income), the Cash Flow Statement and the statement of change in Equity for the year then ended and notes
to the Standalone Financial Statements, including a summary of the significant accounting policies and other explanatory
information (“The Standalone Financial Statements”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone
Financial Statements give the information required by the Companies Act, 2013 as amended (‘the Act”) in the manner so
required and give a true and fair view in conformity with the Indian Accounting principles generally accepted in India, of the
state of affairs of the company as at March 31 , 2025 , and its Profit, total comprehensive income (comprising of Profit and other
comprehensive income), changes in equity and its cash flows for the year ended.
Basis for Opinion
We conducted our audit of the Standalone Financial Statements in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Act. Our responsibilities under those standards are further described in the Auditor's Responsibilities
for the Audit of the Standalone Financial Statements' section of our report. We are independent of the Company in accordance
with the ‘Code of Ethics' issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements
that are relevant to our Audit of the Standalone Financial Statements under the provision of the Act and the Rules made
thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's Code
of Ethics. We believe that the audit evidence obtained is sufficient and appropriate to provide a basis for our audit opinion on
the Standalone Financial Statements
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone
Financial Statements of the current period. These matters were addressed in the context of our audit of the Standalone
Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters. For each matter below, our description of how our audit addressed the matter is provided in that context:
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Descriptions of Key Audit Matter
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How we addressed the matter in our audit
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1. Accuracy and completeness of revenue
recognized.
The Company reported revenue of
Rs.3880.03 .Lakhs from Sale of Power
and renewable energy. The application of
revenue recognition accounting standards
is complex and involves a number of key
judgments and estimates. Due to the
estimates and judgment and complexity
involved in the application of the revenue
recognition accounting standards, we have
considered this matter as a key audit matter.
The Company's accounting policies relating
to revenue recognition are presented in
note 4.12 to the Standalone Financial
Statements.
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We addressed the Key Audit Matter as follows :-
1. As part of our audit, we understood the Company's policies and
processes, control mechanisms and methods in relation to the
revenue recognition and evaluated the design and operating
effectiveness of the financial controls from the above through our
test of control procedures.
2. Assessed the Company's revenue recognition accounting policies
in line with Ind AS 115 (“Revenue from Contracts with Customers”)
and tested thereof.
3. Review the company's judgment in determining whether the
performance obligation is satisfied at a point in time or over a
period of time.
4. Tested a sample of sales transactions for compliance with the
Company's accounting principles to assess the completeness and
accuracy of revenue recorded.
5. We evaluated the management's process to recognize revenue
over a period of time, total cost estimates, status of the projects
and re-calculated the arithmetic accuracy of the same.
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Descriptions of Key Audit Matter
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How we addressed the matter in our audit
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6.
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Evaluated management assessment of the impact on revenue
recognition.
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7.
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We examined contracts with exceptions including contracts with
low or negative margins, loss making contracts, etc... to determine
the level of provisioning.
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8.
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Our tests of detail focused on transactions occurring within
proximity of the year end and obtaining evidence to support the
appropriate timing of revenue recognition, based on terms and
conditions set out in sales contracts and delivery documents.
We considered the appropriateness and accuracy of any cut-off
adjustments.
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9.
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Performed analytical procedures over revenue and receivables.
Compared revenue with historical trends and where appropriate,
conducted further enquiries and testing.
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1 0.
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Traced disclosure information to accounting records and other
supporting documentation.
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11.
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Assessed disclosures in Standalone Financial Statements in
respect of revenue, as specified in Ind AS 115.
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12.
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Our Observation:
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Based on the audit procedures performed we did not identify any
material exceptions in the revenue recognition.
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2. Valuation of Inventories.
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We addressed the Key Audit Matter as follows :-
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Refer to note 8 to The Standalone Financial
Statements, the Company is having the
Inventories of Rs.1573.97 Lakhs as on 31st
March 2025. As described in the accounting
policies in note 4.1 to the Standalone
Financial Statements, inventories are
carried at the lower of cost and net realizable
value. As a result, the management applies
judgment in determining the appropriate
provisions for obsolete stock based upon
a detailed analysis of old inventory, net
realizable value below cost based upon
future plans for sale of inventory.
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We obtained assurance over the appropriateness of the management's
assumptions applied in calculating the value of the inventories and
related provisions and management assertion regarding existence and
ownership by:-
1. Completed a walkthrough of the inventory valuation process and
assessed the design and implementation of the key controls
addressing the risk.
2. Verifying the effectiveness of key inventory controls operating over
inventories;
3. Reviewing the physical verification documents related to
inventories conducted during the year.
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4.
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Verifying for a sample of individual products that costs have been
correctly recorded.
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3.
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Comparing the net realizable value to the cost price of inventories
to check for completeness of the associated provision.
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4.
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Reviewing the historical accuracy of inventory provisioning and
the level of inventory write-offs during the year.
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5.
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Re-computing provisions recorded to verify that they are in line
with the Company policy.
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6.
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Our Observation:
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Based on the audit procedures performed we did not identify any
material exceptions in the Inventory valuation and existence.
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Information Other than the Standalone Financial Statements and Auditor’s Report Thereon
The Company's Board of Directors is responsible for the other information. The other information comprise the information
included in the annual report, but does not include the Standalone Financial Statements and our auditor's report thereon. The
annual report is expected to be made available to us after the date of this auditor's report.
Our opinion on the Standalone Financial Statements does not cover the other information and we will not express any form of
assurance conclusion thereon.
In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information identified
above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with
the Standalone Financial Statements or our knowledge obtained during the course of our audit or otherwise appears to be
materially misstated.
When we read the annual report, if we conclude that there is a material misstatement therein, we are required to communicate
the matter to those charged with governance and take appropriate action as applicable under the relevant laws and regulations.
Management Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the
Act”) with respect to the preparation of these Standalone Financial Statements that give a true and fair view of the financial
position, financial performance including other comprehensive income, cash flows and changes in equity of the Company
in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind
AS) specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the companies
(Indian Accounting Standards) Rule, 2015, as amended. This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and
detecting frauds and other irregularities; 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 Standalone Financial Statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the Standalone Financial Statements, management is responsible for assessing the Company's ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless management either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the company's financial reporting process.
Auditor’s Responsibilities for the Audit of Standalone Financial Statements.
Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect
a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of
these Standalone Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout
the audit. We also:
• Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud any involve collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control.
• Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion
on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such
controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor's report to the related disclosures in the Standalone Financial Statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a
going concern.
• Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the disclosures,
and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that
achieves fair presentation. Materiality is the magnitude of misstatements in the Standalone Financial Statements that,
individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of
the Standalone Financial Statements may be influenced. We consider quantitative materiality and qualitative factors in
(i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the Standalone Financial Statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance
in the audit of the Standalone Financial Statements of the current period and are therefore the key audit matters. We describe
these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely
rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditor's Report) Order, 2020 (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 B” statement on the matters Specified in
paragraphs 3 and 4 of the Order.
2) 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 best of our knowledge and belief
were necessary for the purposes of our audit.
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from
our examination of those books.
c. The Balance Sheet, the statement of Profit and Loss including the statement of Other Comprehensive Income, the
Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books
of account.
d. In our opinion, the aforesaid Standalone Financial Statements comply with the Ind AS specified under section 133
of the Act.
e. On the basis of written representations received from the directors as on March 31,2025 taken on record by the
Board of Directors, none of the directors is disqualified as on March 31,2025 from being appointed as a director in
terms of Section 164(2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the
operating effectiveness of such controls, refer to our separate report in “Annexure A”. Our report expresses an
unmodified opinion on the adequacy and operating effectiveness of the Company's internal financial controls over
financial reporting.
g. With respect to the other matters to be included in the Auditor's Report in accordance with the requirements of
section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration
has been paid by the Company to its directors during the year is in accordance with the provisions of section 197
of the Act.
h. With respect to other matters to be 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 the explanations
given to us:
(i) The Company has disclosed the impact of pending litigations on its financial position in its Notes to the
Standalone Financial Statements, if any.
(ii) The Company did not have any long-term contracts including derivative contracts for which there were any
material foreseeable losses as on March 31,2025. Subject to disclosed in noted to accounts.
(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund.
(iv) a) The Management has have represented to us, to the best of their knowledge and belief, no funds
have been advanced or loaned or invested (either from the borrowed funds or share premium or any
other sources or kind of funds) by the Company to or in any other person or entity including foreign
entity (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the
Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Company (“Ultimate beneficiaries”) or provide any guarantee, security
or the like on behalf of the Ultimate beneficiaries;
b) The Management of the Company have represented to us, to the best of the knowledge and belief, no
funds have been received by the company from any person or entity, including foreign entity (“Funding
parties”) with the understanding, whether recorded in writing or otherwise, that the Company shall directly
or indirectly, lend or invest in other persons or entities identified in any manner what's the whatsoever by
or on behalf of the funding party (“Ultimate beneficiaries') or provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries; and
c) Based on audit procedures that have been considered reasonable and appropriate in the circumstances
performed by us on the Company, nothing has come to our notice that has caused us to believe that
the representations are under sub clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above,
contain any material misstatement
3) The company has not declared any dividend in the previous financial year which has been paid in current year. Further,
no dividend has been declared/ proposed for the current year accordingly the section 123 of the Act is not applicable to
the company.
4) Based on our examination, which included test checks, the Company has used accounting software for maintaining its
books of account for the financial year ended 31 March, 2025 which has a feature of recording audit trail (edit log) facility
and the same has operated throughout the year for all relevant transactions recorded in the software's. Further, during
the course of our audit we did not come across any instance of the audit trail feature being tampered with and the audit
trail has been preserved by the company as per the statutory requirements for record retention under Rule 11(g) of the
Companies (Audit and Auditors) Rules, 2014 for the financial year ended 31 March 2025.
For Luharuka & Associates
Chartered Accountants
Firm Reg No: - 01882S
Arun Luharuka
(Partner)
Membership No.021869
UDIN: 25021869BMODYH1812
Place: Secunderabad
Date: 3rd May 2025
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