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Accounting Policies of Surana Corporation Ltd. Company

Mar 31, 2015

1. Basis of preparation of Financial Statements

The Financial Statements have been drawn on historical cost convention in accordance with the Generally Accepted accounting Principles and applicable accounting standards.

Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenue and expenses during the reporting period. The estimates used in the preparation of the financial statements are prudent and reasonable. Difference between the actual and the estimate are recognized in the period in which the results are known/ materialize.

2. Fixed Assets

Fixed Assets are stated at historical cost. The cost of the fixed asset includes freight, installation charges, taxes and duties, applicable borrowing cost and other incidental expenses incurred in bringing the asset to its present location and condition. Modifications that enhance the operating performance or extend the useful life of the asset are capitalized when there is certainty of deriving future economic benefits from use of such assets.

Till the period ended March 31, 2014, depreciation was provided on the basis of Schedule XIV to the Companies Act, 1956. During the current year, Schedule XIV has been replaced by Schedule II to the Companies Act, 2013. The applicability of Schedule II has resulted in charges related to depreciation of certain Fixed Assets.

3. Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds it recoverable value. An impairment loss is charged off when the asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

4. Depreciation

Depreciation on fixed assets is provided under straight line method at the rates specified in Schedule II of the companies' act 2013. Depreciation on additions and deletions are provided on pro rata basis. Assets costing less than Rs.5,000 are written off in the year of purchase.

5. Inventory

a) Inventories are stated at lower of cost or net realizable value and as per Accounting Standard -2 on "Valuation of Inventories"

b) The cost formula used for the purpose of valuation is Weighted Average Rate method and includes direct cost incurred in bringing the items of inventory to their present location and condition.

c) Inventories are taken, verified, certified and valued by the Management.

d) Obsolete and non moving items of inventory have been adequately provided for.

6. Revenue Recognition

a) Revenue is recognized only when it can be reliably measured and when it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods, income generated by own windmills and 40% of income generated by windmills are sold to subsidiary company by overriding title.

b) Sales are recorded net of trade discounts, rebates and Value Added Tax if any and are recorded at the realized foreign currency rates. Making charges are recognized at point of sale.

c) Interest received on fixed deposits made for margin purposes towards supply of raw materials by suppliers is netted off against the cost of purchases. Interest on bank deposits and other interest bearing loans is accounted on accrual basis.

7. Employee Benefits

Provident fund, Superannuation fund and Employee's State Insurance Corporation (ESIC) are the defined contribution schemes offered by the Company. The Contributions to these schemes are charged to the statement of profit and loss of the year in which contribution to such schemes becomes due.

8. Foreign Currency Transactions

a) Transactions denominated in foreign currencies are normally recorded at the exchange rates prevailing at the time of the transaction if any. All monetary assets and monetary liabilities in foreign currencies are translated at the relevant rates of exchange prevailing at the year end. Exchange difference arising on actual payments/realizations and year end restatement are dealt in the profit and loss account. Non monetary foreign currency items are carried at cost if any.

b) In respect of forward contracts, the forward premium or discount is recognized as income or expenses over the life of contract in the statement of profit and loss and the exchange different between the exchange rate prevailing at the year end and the date of the inception of the forward exchange contract is recognized as income or expenses in the statement of profit and loss.

9. Borrowing Cost

a) Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

b) All the fixed assets of the Company excluding the fixed and current assets of Wind Mills Division are charged to Banks who are providing working capital of the company.

c) The Company has filed a writ through the Association of SEZ Owners and Units, Chennai challenging the applicability of retrospective amendment to the Income Tax Act levying Minimum Alternate Tax on Profits earned by SEZ units. The writ has been admitted by the High court of Madras and decision is awaited. Hence, the company has not provided for Minimum Alternate Tax on SEZ profits

10. Investments

Investments are classified as long as long-term Investments and current Investments. Investments that are readily realizable and intended to be held for not more than one year, from the date of acquisition, are classified as current investments. All other investments are classified as long term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. Long term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments. On disposal of an investment, the different between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

11. Taxes on income

Provision for income tax is made on the basis of estimated taxable income for the year at the current rates. Tax expense comprises both current tax and deferred tax at the applicable rates. Current tax represents the amount of Income tax payable/ recoverable in respect of the taxable income/loss for the reporting period.

Deferred tax represents the effect of timing difference between taxable income and accounting income for the reporting year that originate in one year and are capable of reversal in one or more subsequent year.

12. Contingent liabilities

A contingent liability is 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 in the financial statements, but are disclosed in the notes.

A contingent liability is 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 in the financial statements, but are disclosed in the notes.

13. Provisions

A provision is recognized when the Company has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimate. Provision / Write off of doubtful and unrecoverable book debts and advances have been made, wherever found necessary by the management.

14. Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable by the weighted average of number of equity shares outstanding during the year.

15. Cash Flow Statement

The Cash flow statement is prepared by the indirect method set out in the accounting standard 3 on cash flow statement. Cash and Cash Equivalent for the purpose of cash flow statement comprise cash at bank & cash in hand.


Mar 31, 2014

A) BASIS OF ACCOUNTING

1. The financial statements are prepared under the historical cost convention and on accrual basis except otherwise stated herein and in conformity with the accounting principles generally accepted in India. The financial statements are prepared to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956.

2. USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Estimates and underlying assumptions are reviewed on an ongoing basis. Although these estimates are based on the management''s best knowledge of currents events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets and liabilities in future periods.

3. TAXES ON INCOME

Income Tax payable in respect of taxable income for the period is charged to the Profit and Loss account as ''Current tax''. Tax effects arising out of timing difference in accounting income and taxable income are identified as "Deferred Tax asset/ liability" by applying tax rates that have been enacted or substantially enacted as on the balance sheet date. The carrying amount of deferred tax asset/ liability is reviewed at the balance sheet date subject to assessment based on the principle of prudence.

4. BORROWING COST

All borrowing costs have been charged to revenue accounts.

B) FIXED ASSETS AND DEPRECIATION

1. Fixed Assets are stated at historical cost plus installation and incidental expenses and less accumulated depreciation.

2. Depreciation on fixed assets has been provided under Straight Line Method except for Windmills, on which, Written Down Value method is provided and in accordance with Schedule XIV to the Companies Act 1956.

3. Lease charges written off on 1/5th basis in respect of Land allotted to us in MEPZ, Chennai.

C) EMPLOYEES RETIREMENT BENEFITS

Company''s contribution to Provident Fund and Provision for Gratuity has been charged to the Profit & Loss Account.

D) INVENTORIES

1. Inventories are stated at lower of cost or net realizable value and as per Accounting Standard -2 on "Valuation of Inventories"

2. The cost formula used for the purpose of valuation is Weighted Average Rate method and includes direct cost incurred in bringing the items of inventory to their present location and condition.

3. Inventories are taken, verified, certified and valued by the Management.

4. Obsolete and non moving items of inventory have been adequately provided for.

E) REVENUE RECOGNITION

1. Revenue is recognized only when it can be reliably measured and when it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods, income generated by own windmills and 40% of income generated by windmills sold to subsidiary company by overriding title.

2. Sales are recorded net of trade discounts, rebates and value added tax if any and are recorded at the realized foreign currency rates. Making charges are recognized at point of sale.

3. Interest received on fixed deposits made for margin purposes towards supply of raw materials by suppliers is netted off against the cost of purchases. Interest on bank deposits and other interest bearing loans is accounted on accrual basis.

II. BALANCE SHEET

1. SECURED LOAN

a. All the fixed assets of the Company excluding the fixed and current assets of Wind Mills Division are charged to Banks who are providing working capital of the company.

2. The Company has filed a writ through the Association of SEZ Owners and Units, Chennai challenging the applicability of retrospective amendment to the Income Tax Act levying Minimum Alternate Tax on Profits earned by SEZ units. The writ has been admitted by the High court of Madras and decision is awaited. Hence, the company has not provided for Minimum Alternate Tax on SEZ profits.

3. FOREIGN CURRENCY TRANSACTIONS

a. For its import and export transactions the company is exposed to foreign exchange transactions, the company hedges its foreign exchange transactions against its own imports and exports and also by way of forward contracts with banks.

b. Completed foreign exchange transactions are recorded at the actual exchange rate paid. Pending foreign exchange transactions as on 31st March, 2014 are recorded at notional rates. The notional rates have been converted into prevailing rates on 31st March 2014 and the difference is recorded as purchase rate differences. Premium paid on forward contracts is recognized over the life of the contracts.

c. Premium in respect of forward foreign exchange contract is charged to the Profit and Loss account. Premium in respect of foreign exchange option contracts is charged to the profit and loss account as and when the contracts are entered in to but the gain on such option contracts, is recognized only on maturity / cancellation of such option contracts.

4. MICRO AND SMALL ENTERPRISES DUES

Based on the information / Documents available with the Company amounts due to micro and small enterprises is NIL.

5. EARNINGS PER SHARE

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable by the weighted average of number of equity shares outstanding during the year.

6. CONTINGENT LIABILITES

A contingent liability is 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 in the financial statements, but are disclosed in the notes.

7. PROVISIONS

A provision is recognized when the Company has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimate. Provision / Write off of doubtful and unrecoverable book debts and advances have been made, wherever found necessary by the management.

8. INVESTMENTS

Long term investments are stated at cost after deducting the provisions if any made for permanent diminution in values. Current investments are stated at lower of the cost and fair market value, whichever is less.

9. CASH FLOW STATEMENT

The Cash flow statement is prepared by the indirect method set out in the accounting standard 3 on cash flow statement. Cash and Cash Equivalent for the purpose of cash flow statement comprise cash at bank & cash in hand.


Mar 31, 2013

1. The financial statements are prepared under the historical cost convention and on accrual basis except otherwise stated herein and in conformity with the accounting principles generally accepted in India. The financial statements are prepared to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956.

2. USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Estimates and underlying assumptions are reviewed on an ongoing basis. Although these estimates are based on the management''s best knowledge of currents events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets and liabilities in future periods.

3. TAXES ON INCOME

Income Tax payable in respect of taxable income for the period is charged to the Profit and Loss account as ''Current tax''. Tax effects arising out of timing difference in accounting income and taxable income are identified as "Deferred Tax asset/ liability" by applying tax rates that have been enacted or substantially enacted as on the balance sheet date. The carrying amount of deferred tax asset/ liability is reviewed at the balance sheet date subject to assessment based on the principle of prudence.

4. BORROWING COST

All borrowing costs have been charged to revenue accounts.

B) FIXED ASSETS AND DEPRECIATION

1. Fixed Assets are stated at historical cost plus installation and incidental expenses and less accumulated depreciation.

2. Depreciation on fixed assets has been provided under Straight Line Method except for Windmills, on which, Written Down Value method is provided and in accordance with Schedule XIV to the Companies Act 1956.

3. Lease charges written off on 1/5th basis in respect of Land allotted to us in MEPZ, Chennai.

4. During the year Windmills of Rs.30,62,46,301/- (cost) having Written Down Value of Rs.12,65,25,277/-were transferred to Subsidiary Companies for converting them under group captive scheme to augment revenues. This transfer has resulted in a Book Loss on sale of assets of Rs.7,70,25,277/-

C) EMPLOYEES RETIREMENT BENEFITS

Company''s contribution to Provident Fund and Provision for Gratuity has been charged to the Profit & Loss Account.

D)INVENTORIES

1. Inventories are stated at lower of cost or net realizable value and as per Accounting Standard -2 on "Valuation of Inventories"

2. The cost formula used for the purpose of valuation is Weighted Average Rate method and includes direct cost incurred in bringing the items of inventory to their present location and condition.

3. Inventories are taken, verified, certified and valued by the Management.

4. Obsolete and non moving items of inventory have been adequately provided for.

E) REVENUE RECOGNITION

1. Revenue is recognized only when it can be reliably measured and when it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods, income generated by own windmills and 40% of income generated by windmills sold to subsidiary company by overriding title.

2. Sales are recorded net of trade discounts, rebates and value added tax if any and are recorded at the realized foreign currency rates. Making charges are recognized at point of sale.

3. Interest received on fixed deposits made for margin purposes towards supply of raw materials by suppliers is netted off against the cost of purchases. Interest on bank deposits and other interest bearing loans is accounted on accrual basis.

II. BALANCE SHEET

1. SECURED LOAN

a. All the fixed assets of the Company excluding the fixed and current assets of Wind Mills Division are charged to Banks who are providing working capital of the company.

2. The Company has filed a writ through the Association of SEZ Owners and Units, Chennai challenging the applicability of retrospective amendment to the Income Tax Act levying Minimum Alternate Tax on Profits earned by SEZ units. The writ has been admitted by the High court of Madras and decision is awaited. Hence, the company has not provided for Minimum Alternate Tax on SEZ profits.

3. FOREIGN CURRENCY TRANSACTIONS

a. For its import and export transactions the company is exposed to foreign exchange transactions, the company hedges its foreign exchange transactions against its own imports and exports and also by way of forward contracts with banks.

b. Completed foreign exchange transactions are recorded at the actual exchange rate paid. Pending foreign exchange transactions as on 31st March, 2013 are recorded at notional rates. The notional rates have been converted into prevailing rates on 31st March 2013 and the difference is recorded as purchase rate differences. Premium paid on forward contracts is recognized over the life of the contracts.

c. Premium in respect of forward foreign exchange contract is charged to the Profit and Loss account. Premium in respect of foreign exchange option contracts is charged to the profit and loss account as and when the contracts are entered in to but the gain on such option contracts, is recognized only on maturity / cancellation of such option contracts.

4. MICRO AND SMALL ENTERPRISES DUES

Based on the information / Documents available with the Company amounts due to micro and small enterprises is NIL.

5. EARNINGS PER SHARE

Basic earning per share is calculated by dividing the net profit or loss for the period attributable by the weighted average of number of equity shares outstanding during the year.

6. CONTINGENT LIABILITES

A contingent liability is 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 in the financial statements, but are disclosed in the notes.

7. PROVISIONS

A provision is recognized when the Company has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimate. Provision / Write off of doubtful and unrecoverable book debts and advances have been made, wherever found necessary by the management.

8. INVESTMENTS

Long term investments are stated at cost after deducting the provisions if any made for permanent diminution in values. Current investments are stated at lower of the cost and fair market value, whichever is less.

9. CASH FLOW STATEMENT

The Cash flow statement is prepared by the indirect method set out in the accounting standard 3 on cash flow statement. Cash and Cash Equivalent for the purpose of cash flow statement comprise cash at bank & cash in hand.


Mar 31, 2012

A) BASIS OF ACCOUNTING

1. The financial statements are prepared under the historical cost convention and on accrual basis except otherwise stated herein and in conformity with the accounting principles generally accepted in India.

2. TAXES ON INCOME

Income Tax payable in respect of taxable income for the period is charged to the Profit and Loss account as 'Current tax'. Tax effects arising out of timing difference in accounting income and taxable income are identified as "Deferred Tax asset/ liability" by applying tax rates that have been enacted or substantially enacted as on the balance sheet date. The carrying amount of deferred tax asset/ liability is reviewed at the balance sheet date subject to assessment based on the principle of prudence.

3. BORROWING COST

All borrowing costs have been charged to revenue accounts.

B) FIXED ASSETS AND DEPRECIATION

1. Fixed Assets are stated at historical cost plus installation and incidental expenses and less accumulated depreciation.

2. Depreciation on fixed assets has been provided under Straight Line Method except for Windmills, on which, Written Down Value method is provided and in accordance with Schedule XIV to the Companies Act 1956.

3. Lease charges written off on 1 /5th basis in respect of Land allotted to us in MEPZ, Chennai.

4. During the year Fixed assets of Rs.11,49,06,608/- having Written Down Value of Rs.59,709,709/- were scrapped resulting in Loss on sale of assets of Rs.5,47,07,114/-

5. During the previous year Depreciation on windmills has been changed from Straight Line Method to Written Down Value method. Consequent to this change in method of depreciation, an additional amount of Rs.100,993,718/-has been provided as depreciation related to prior years.

C) EMPLOYEES RETIREMENT BENEFITS

Company's contribution to Provident Fund and Provision for Gratuity has been charged to the Profit & Loss Account.

D) INVENTORIES

1. Inventories are stated at lower of cost or net realizable value and as per Accounting Standard -2 on "Valuation of Inventories"

2. Inventories are taken, verified, certified and valued by the Management


Mar 31, 2011

A) BASIS OF ACCOUNTING

1. The financial statements are prepared under the historical cost convention and on accrual basis except otherwise stated herein and in conformity with the accounting principles generally accepted in India.

2. TAXES ON INCOME

Income Tax payable in respect of taxable income for the period is charged to the Profit and Loss account as Current tax. Tax effects arising out of timing difference in accounting income and taxable income are identified as "Deferred Tax asset/ liability" by applying tax rates that have been enacted or substantially enacted as on the balance sheet date. The carrying amount of deferred tax asset/ liability is reviewed at the balance sheet date subject to assessment based on the principle of prudence.

3. BORROWING COST

All borrowing costs have been charged to revenue accounts.

B) FIXED ASSETS AND DEPRECIATION

1. Fixed Assets are stated at historical cost plus installation and incidental expenses and less accumulated depreciation.

2. Depreciation on fixed assets has been provided under Straight Line Method except for Windmills, on which, Written Down Value method is provided and in accordance with Schedule XIV to the Companies Act 1956.

3. Lease charges written off on 1/5th basis in respect of Land allotted to us in MEPZ, Chennai.

4. During the year Fixed assets of Rs. 117,718,226.05/- were scrapped resulting in Loss on sale of assets of Rs. 12,893,408/

5. During the year Depreciation on windmills has been changed from Straight Line Method to Written Down Value method. Consequent to this change in method of depreciation, an additional amount of Rs. 100,993,718/-has been provided as depreciation related to previous years.

C) EMPLOYEES RETIREMENT BENEFITS

Companys contribution to Provident Fund and Provision for Gratuity has been charged to the Profit & Loss Account.

D) INVESTMENTS

Investments are Long term investments hence stated at cost.

E) INVENTORIES

1. Inventories are stated at lower of cost or net realizable value and as per Accounting Standard -2 on "Valuation of Inventories"

2. Inventories are taken, verified, certified and valued by the Management

II. BALANCE SHEET

1. SECURED LOAN

a. Cash Credit facilities from banks is secured by hypothecation of stocks and book debts and guaranteed by the Promoter Directors.

b. Term Loan obtained from Syndicate bank for installation of Wind Mills are secured exclusively to Syndicate Bank by hypothecation of Wind Mill Assets (Fixed and Current) and guaranteed by Promoter Directors.

c. All the fixed assets of the Company excluding the fixed and current assets of Wind Mills Division are charged to Banks who are providing working capital of the company.


Mar 31, 2010

1.The financial statements are prepared under the historical cost convention and on accrual basis except otherwise stated herein and in conformity with the accounting principles generally accepted in India.

2.TAXES ON INCOME

Income Tax payable in respect of taxable income for the period is charged to the Profit and Loss account as Current tax.Tax effects arising out of timing difference in accounting income and taxable income are identified as "Deferred Tax asset/liability"by applying tax rates that have been enacted or substantially enacted as on the balance sheet date.The carrying amount of deferred tax asset/liability is reviewed at the balance sheet date subject to assessment based on the principle of prudence.

3.BORROWING COST

All borrowing costs have been changed to revenue accounts.

B)FIXED ASSETS AND DEPRECIATION

1.Fixed Assets are stated at historical cost plus installation and incidental expenses and less accumulated depreciation.

2.Depreciation on fixed assets has been provided under Straight Line Method and in accordance with Schedule XIV to the Companies Act 1956.

3.Lease charges written off on 1/5 th basis in respect of Land allotted to us in MEPZ,Chennai.

4.During the year fixed assets of Rs.19,945,872 were scrapped resulting in loss on sale of assets of Rs.13,157,026/-

C)EMPLOYEES RETIREMENT BENEFITS

Companys contribution to Provident Fund and Provision for Gratuity has been charged to the Profit &Loss Account.

D)INVESTMENTS

Investments are Long term investments hence stated at cost.No provision has been made for appreciation or diminution in the value of investments.The aggregate amount of QUOTED INVESTEMENTS is as follows

Name No.of shares Cost Market value (31.03.10) PNB Gilts Ltd.,10,000 300.000/-239.500/-

E)INVENTORIES

1.Inventories are stated at lower of cost or net realizable value and as per Accounting Standard -2 on "Valuation of Inventories"

2.Inventories are taken,verified,certified and valued by the Management

II.BALANCE SHEET

1.SECURED LOAN

a.Cash Credit facilities from banks is secured by hypothecation of stocks and book debts and guaranteed by the Promoter Directors.

b.Term Loan obtained from Syndicate bank for installation of Wind Mills are secured exclusively to Syndicate Bank by hypothecation of Wind Mill Assets (Fixed and Current)and guaranteed by Promoter Directors.

c.All the fixed assets of the Company excluding the fixed and current assets of Wind Mills Division are charged to Banks who are providing working capital of the company.

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