a) Provisions
i) Provisions are recognized when the
Company has a present obligation
(legal or constructive) as a result
of a past event, it is probable that
an outflow of resources embodying
economic benefits will be required
to settle the obligation and a reliable
estimate can be made of the amount
of the obligation.
Provisions is measured using the cash
flows estimated to settle the present
obligation and when the effect of time
value of money is material, Provisions
are determined by discounting
the expected future cash flows
(representing the best estimate of
the expenditure required to settle the
present obligation at the balance sheet
date) at a pre-tax rate that reflects
current market assessments of the time
value of money and the risks specific
to the liability. The unwinding of the
discount is recognized as finance cost.
Reimbursement expected in respect
of expenditure required to settle a
provision is recognized only when it is
virtually certain that the reimbursement
will be received.
ii) Decommissioning Liability
Restoration/ Rehabilitation/
Decommissioning cost are provided
for in the accounting period when
the obligation arises based on the
NPV of the estimated future cost of
restoration to be incurred. It includes
the dismantling and demolition of
infrastructure and removal of residual
material. This provision is based on all
regulatory requirements and related
estimated cost based on best available
information.
iii) Onerous Contracts
Present obligations arising under
onerous contracts are recognized and
measured as provisions. An onerous
contract is considered to exist when a
contract under which the unavoidable
costs of meeting the obligations exceed
the economic benefits expected to be
received from it.
b) Contingent Liabilities
A contingent liability is a possible obligation
that arises from past events whose existence
will be confirmed by the occurrence or non¬
occurrence of one or more uncertain future
events beyond the control of the Company
or a present obligation that is not recognized
because it is not probable that an outflow
of resources will be required to settle the
obligation. A contingent liability also arises
in extremely rare cases where there is a
liability that cannot be recognized because it
cannot be measured reliably. The Company
does not recognize a contingent liability
but discloses its existence in the financial
statements.
Contingent assets usually arise from
unplanned or other unexpected events that
give rise to the possibility of an inflow of
economic benefits. Contingent Assets are
not recognized though are disclosed, where
an inflow of economic benefits is probable.
22. Operating Segment
The identification of operating segment is
consistent with performance assessment and
resource allocation by the chief operating decision
maker. An operating segment is a component of the
Company that engages in business activities from
which it may earn revenues and incur expenses
including revenues and expenses that relate to
transactions with any of the other components
of the Company and for which discrete financial
information is available.
All operating segment's operating results are
reviewed regularly by the chief operating decision
maker to make decisions about resources to
be allocated to the segments and assess their
performance.
23. Employee Share based payment
Equity- settled share-based payments to
employees are measured at the fair value of the
employee stock options at the grant date. The
fair value of option at the grant date is expensed
over the vesting period with a corresponding
increase in equity as “Employee Stock Options
Account”. In case of forfeiture of unvested option,
portion of amount already expensed is reversed.
In a situation where the vested option forfeited or
expires unexercised, the related balance standing
to the credit of the “Employee Stock Options
Account” are transferred to the “General Reserve”.
When the options are exercised, the Company
issues new equity shares of the Company of '1/-
each fully paid-up. The proceeds received and the
related balance standing to credit of the Employee
Stock Options Account, are credited to share
capital (nominal value) and Securities Premium
Account.
24. Measurement of Fair Values
A number of the Company's accounting policies
and disclosures require the measurement of fair
values, for both financial and non-financial assets
and liabilities.
Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date. The fair value measurement
is based on the presumption that the transaction
to sell the asset or transfer the liability takes place
either:
a) In the principal market for the asset or
liability, or
b) In the absence of a principal market, in the
most advantageous market for the asset or
liability.
The principal or the most advantageous
market must be accessible by the Company.
The fair value of an asset or a liability is
measured using the assumptions that
market participants would use when pricing
the asset or liability, assuming that market
participants act in their economic best
interest. A fair value measurement of a non¬
financial asset takes into account a market
participant's ability to generate economic
benefits by using the asset in its highest and
best use or by selling it to another market
participant that would use the asset in its
highest and best use.
The Company uses valuation techniques
that are appropriate in the circumstances
and for which sufficient data are available
to measure fair value, maximizing the use of
relevant observable inputs and minimizing
the use of unobservable inputs.
25. Non-Current Assets held for sale
The Company classifies non-current assets as
held for sale if their carrying amounts will be
recovered principally through as sale rather than
through continuing use of the assets and actions
required to complete such sale Indicate that it is
unlikely that significant changes to the plan to
sell will be made or that the decision to sell will
be withdrawn. Also, such assets are classified as
held for sale only if the management expects to
complete the sale within one year from the date of
classification. On-current assets classified as held
for sale are measured at the lower of their carrying
amount and the fair value less cost to sell. Non¬
current assets are not depreciated or amortized.
26. Events after Reporting date
Where events occurring after the Balance Sheet
date provide evidence of conditions that existed at
the end of the reporting period, the impact of such
events is adjusted within the financial statements.
Otherwise, events after the Balance Sheet date of
material size or nature are only disclosed.
27. Research and Development
Expenditure on research is recognized as an
expense when it is incurred. Expenditure on
development which does not meet the criteria for
recognition as an intangible asset is recognized as
an expense when it is incurred.
Items of property, plant and equipment and
acquired Intangible Assets utilized for Research
and Development are capitalized and depreciated
in accordance with the policies stated for Property,
Plant and Equipment and Intangible Assets.
15 (a) Advance paid under protest includes Bank Guarantee Invocation of Rs 666.63 Lakhs by Paradip Port Trust (PPT)
Odissa. The said forfeiture was contested by the company, before Arbitral Tribunal constituted by the Honourable
High Court of Odissa and the Arbitral Tribunal was pleased to pass award in favour of the company. Pradip Port
Trust (PPT) has contested the award before Civil Judge (Senior Division) Commercial Court at Bhubaneshwar and
the company has filed excution petition before the said court. Both the petitions are pending before the said court.
15 (b) No Advances are due by Directors or other officers of the company or any of them either severally or jointly with any
other person or debts due by firms or private companies respectively in which any director is a partner or a director
or a member except as mention below:
a) Terms / rights attached to Equity Shares
The company has only one class of issued equity shares having a par value of Rs.10/- per share. Each shareholder is
entitled to one vote per share.
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the
company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares
held by the shareholders.
45 Retirement and Other Employees Benefits
The Company's employee benefits primarily cover provident fund, gratuity and leave encashment.
Provident fund is a defined contribution scheme and the company has no further obligation beyond the contribution made
to the fund. Contributions are charged to the Profit & Loss account in the year in which they accrue. Gratuity liability is a
defined benefit obligation and is based on the actuarial valuation done. The gratuity liability and the net periodic gratuity
cost is actually determined after considering discounting rates, expected long term return on plan assets and increase in
compensation level. All actuarial gain/ losses are immediately charged to the Profit & Loss account and are not deferred.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the
fair value hierarchy, described as follows, based on the input that is significant to the fair value measurement as a whole:
a) Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities
b) Level 2 — Inputs other than quoted prices included within Level 1, that are observable for the asset or liability, either
directly or indirectly; and
c) Level 3 — Inputs which are unobservable inputs for the asset or liability.
External valuers are involved for valuation of significant assets & liabilities. Involvement of external valuers is decided by
the management of the company considering the requirements of Ind As and selection criteria include market knowledge,
reputation, independence and whether professional standards are maintained.
The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are
a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would
be significantly different from the values that would eventually be received or settled.
48. financial risk management objectives and policies
The Company's principal financial liabilities other than derivatives comprise long-term and short-term borrowings, capital
creditors and trade and other payables. The main purpose of these financial liabilities is to finance the Company's
operations. The Company's principal financial assets other than derivatives include trade and other receivables, cash and
cash equivalents and deposits that derive directly from its operation.
The Company is exposed to market, credit, liquidity and regulatory risks. The Company's senior management oversees
the management of these risks. The Board of Directors reviews and agrees policies for managing each of these risks,
which are summarized below .
A. Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risk: commodity risk, interest rate risk and foreign
currency risk.
(i) Commodity Price Risk
Company is affected by the price volatility of certain commodities, primarily, Solar Module. Its operating
activities require the on-going purchase of these materials. The company has arrangement to pass-through
the increase/decrease in these material price through price variance clause in majority of the contract.
(ii) Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rate
relates primarily to the Company's operating activities (when revenue or expense is denominated in a foreign
currency). Further, the Company has foreign currency risk on import of input materials, capital commitment
and also borrow funds in foreign currency for its business. The Company evaluates the impact of foreign
exchange rate fluctuations by assessing its exposure to exchange rate risks. Certain transactions of the
Company act as a natural hedge as a portion of both assets and liabilities are denominated in similar foreign
currencies, for the remaining exposers to foreign exchange risks, the Company adopts a policy of selective
hedging based on risk perception of management using derivative, whenever required, to mitigate or eliminate
the risks.
(iii) Interest Rate risk
The Company is exposed to interest rate risk on financial liabilities such as borrowings, both short-term
and long-term. It maintains a balance of fixed and floating interest rate borrowings and the proportion is
determined by current market interest rates, projected debt servicing capability and view on future interest
rates.
B. Credit Risk
Financial Asset of the Company include trade receivables, employee advances and bank deposits which represents
Company's maximum exposure to the credit risk.
With respect to credit exposure from customers, the Company has a procedure in place aiming to minimise collection
losses. Credit Control team assesses the credit quality of the customers, their financial position, past experience
in payment and other relevant factors. The Company's exposure to credit risk is influence mainly by the individual
characteristics of each customer. However, management also considers the factors that may influence the credit
risk of its customer base, including default risk associated with the industry and country in which customers operate.
Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits
are defined in accordance with this assessment. with respect to other financial risk Via loan and advances , deposit
with government, the credit risk is insignificant since the loans and advances are given to its employees only and
deposits are held with reputable banks. The credit quality of the financial assets is satisfactory, taking into account
the allowance for credit losses
C. Regulatory Risks
The Company performance may be impacted due to change in Regulatory Environment. The Company is closely
monitoring the regulatory developments and risks thereof and proactively implementing course correction for proper
compliance commensurate with new regulatory requirements.
49. During the course of implementation of a project, there has been disputes on technical grounds between the company
and Paradip Port Trust (PPT) as regard to escalation in cost and time limit for completion of the project. Taking a contrary
stand, PPT cancelled/terminated LOI and forfeited mobilization advance, guarantee and performance guarantee. The
company challenged the action of PPT before Honorable High Court of Odisha who in turn constituted an Arbitral
Tribunal for settlement of dispute through arbitration. Consequently, the Arbitral Tribunal passed an award in favour of the
company. The case is further contested before higher Judicial Authorities.
50. Capital Management
For the purpose of the Company's capital management, capital includes issued equity capital, and all other equity
reserves attributable to the equity holders of the Company. The primary objective of the Company's capital management
is to maximize the shareholder value.
TThe Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders. The Company monitors capital using a gearing ratio, which is net debt divided by total capital
plusnet debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables,
less cash and cash equivalents
52. Other Statutory Information
A. RELATIONSHIP WITH STRUCK OFF COMPANIES
The company do not have any transactions with company's struck off under Section 248 of the Companies Act,
2013 or Section 560 of the Companies Act, 1956 during the year ended 31st March, 2025 (Previous year: Nil).
B. DISCLOSURE IN RELATION TO UNDISCLOSED INCOME
The company do not have any such transactions which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year ended 31st March, 2025 and also for the year ended 31st
March, 2024 in the tax assessments under Income Tax Act, 1961 (such as, search or survey or any other relevant
provisions of the Income Tax Act, 1961).
C. DETAILS OF BENAMI PROPERTY HELD
The Company do not hold any property under Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules
made thereunder, hence there are no proceedings against the company for the year ended 31st March, 2025 and
also for the year ended 31st March, 2024.
D. REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES (ROC)
The Company do not have any charges or satisfaction, which are yet to be registered with ROC beyond the
statutory period, during the year ended 31st March, 2025 and also during the year ended 31st March, 2024
E. DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY
The company have not traded or invested in crypto currency or virtual currency during the year ended 31st March,
2025 and also during the year ended 31st March, 2024.
F. UTILISATION OF BORROWED FUND AND SHARE PREMIUM
The company have not advanced or loaned or invested funds to any other person(s) or entity (ies), including
foreign entities (intermediaries) with the understanding that the intermediary shall: (a) 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 (b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
The company have not received any fund from any person(s) or entity(ies), including foreign entities (funding party)
with the understanding (whether recorded in writing or otherwise) that the company shall: (a) directly or indirectly
lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party
(ultimate beneficiaries) or (b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
G. The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.
53. In respect of financial year commencing on or after 01st April 2023, the Company has used accounting software for
maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operate
throughout the year for all relevant transactions recorded in the software and the audit trail feature has not been tampered
with. Further, the audit trail has been and will be 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 ender 31st March
2025.
As per our report of even date attached
For Luharuka & Associates For and on behalf of the Board Of Director of
Chartered Accountants, Surana Solar Limited
FRN 01882S
Arun Luharuka Narender Surana Baunakar Shekarnath
Partner Director Whole Time Director
M. No. 021869 DIN: 00075086 DIN: 03371339
Place: Secunderabad, Anicode Ganeshan Srinath Vempati VNDR Ramya
Date: 3rd May, 2025 Chief Financial Officer Company secretary
M.No: A74287
| 