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Notes to Accounts of Surana Telecom and Power Ltd.

Mar 31, 2015

1. There were no Bonus shares, forefieted shares and buy back of shares in last five years.

2. During the year, the Equity shares of Rs. 5/- each were sub-divided into Equity shares of Rs. 1/- each, due to which, there is an increase in no. of shares

3. (a) Term Loan from Indian Overseas Bank is secured by way of first charge on the Solar Power Project assets, Wind Power Turbine and second charge on fixed assets of the company presently charged to Corporation Bank and State Bank of India. Further, it has been guaranted by the some of the directors of the company. The loan is repayable in 25 quarterly installments begining from March 2013. Accordingly due with in a Year is Rs. 4,00,00,000/- which is classified under "Other Current Liabilities"

4.(i) There is no sepecific schedule for repayment of Unsecured Loan taken from Body Corporate.

(ii) Represents the interest free sales tax deferment (loan) availed from Government of Andhra Pradesh and the repayment is based on regulations specified in the eligibilty certificates issued by Department of Industries. Accordingly due with in a year is Rs. 94,54,398/- which is classified under Other Current Liablities.

5.(a) The Board of Directors have recommended a dividend of Rs. 0.12/- per share for the year ended 31st March, 2015 (Previous Year Rs. 0.12/- per share. There is a sub-division of shares of Rs. 5/- each in to 5 equity shares of Rs. 1/- each during the year. Hence, dividend per share for the previous year is restated to make it comparable.

6. (a) Loan against pledge of securities are partly secured and repayable on demand without any end-use specification

As at As at

Particulars 31.03.2015 31.03.2014

7.Commitments and Contingent Liabilities

i Commitments/ Contingent Liabilities

a Unexpired Letters of Credit - 51,513,158

b Counter Guarantees given to the Bankers 10,000,000 1,344,600

Sub Total (A) 10,000,000 52,857,758

ii Claims against the company not acknowledged as debts in respect of

a Excise Matters, under Dispute 51,541,068 51,541,068

b Sales Tax Matters, under Dispute 1,080,332 1,080,332

Sub Total (A) (see note below) 52,621,400 52,621,400

Grand Total (A B) 62,621,400 105,479,158

Note: Out of the Total demand of Rs. 5,26,21,400/-, a sum of Rs. 3,29,40,558/- has been paid and the same is shown in note 2.10 of the Balance Sheet under the Head " Taxes paid under Protest".

8. Related Party Disclosure

a Related parties where significant influence exists and with whom transactions have taken place during the year

1 Bhagyanagar India Limited 4 Bhagyanagar Energy and Telecom and Private Ltd

2 Surana Solar Systems Private 5 Bhagyanagar Green Energy Ltd Limited

3 Surana Solar Limited 6 Globecom Infotech Private Ltd (formerly Surana Ventures Ltd)

7 Celestial Solar Solutions Private Limited

d Key Managerial Personnel

b Subsiary Company Narender Surana

Globecom Infotech Private Limited Devendra Surana

Celestial Solar Solutions Private Limited D.Srinivas-CS (From December, 2014)

Surana Solar Systems Private Limited R.Laxman Raju-CFO- (Till September, 2014)

c Joint Venture Company e Relatives of Key Managerial Personnel

Radiant Alliance Limited GM Surana

ChandKanwar

Manish Surana

Vinita Surana

Sresha Surana

Note : The Company has exited from the Joint Venture Company M/s Radiant Alliance Limited by transfering its 49% shareholding during the financial year 2014-15

9. Retirement and Other Employees Benefits

The Company's employee benefits primarly cover provident fund, gratuity and leave encashment

10. 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.

11. Gratuity liabilty 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/ lossess are immediately charged to the Profit & Loss account and are not deferred.

12. The following table summarises the components of Net Benefit expenses recognised in the Profit & Loss account and amount recognised in the Balance Sheet for the respective plans.

13. As per Accounting Standard (AS)17 on " Segment Reporting" segment information has been provided under the notes to Consolidated Financial Statements.


Mar 31, 2014

Notes: 1 (a)

1. Loan from Indian Overseas Bank is secured by way of first charge on the Solar Power Project assets, Wind Power Turbine and second charge on fixed assets of the company presently charged to Corporation Bank and State Bank of India. Further, it has been guaranted by the some of the directors of the company.

2. The Principal is repayable in 25 Quarterly installments beginning from March 2013. The company has repaid 5 quarterly installments, 4 installments being repaid during the current financial year amounting to Rs 40,000,000/- The amount repayable towards principle during the financial year 2014-15 is Rs 40,000,000/- and the same has been clasified under the "Other Current Liabilities".

(b)

Represents the interest free sales tax deferment (loan) availed from Government of Andhra Pradesh and the repayment is based on regulations specified in the eligibilty certificates issued by Department of Industries. Accordingly due with in a year is Rs.18,043,000/- which is classified under Other Current Liabilities.

(All amounts in Rupees except Share Data and Unless Otherwise Stated)

(Amount in Rs.) Note: 2 As at As at Commitments and Contingent Liabilities 31.03.2014 31.03.2013

i Commitments/ Contingent Liabilities

a Unexpired Letters of Credit 51,513,158 10,759,228

b Counter Guarantees given to 1,344,600 17,883,088 the Bankers

ii Claims against the company not acknowledged as debts in respect of

a Excise Matters, under Dispute 18,933,753 17,021,462

b Sales Tax Matters, under Dispute 1,080,332 1,234,042

Note: 3 Retirement and Other Employees Benefi ts

The Company''s employee benefits primarly 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 liabilty is a defined benefit obligation and is based on the actuarial valuation done by the Life Insurance Corporation of India. 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/ lossess are immediately charged to the Profit & Loss account and are not deferred.

The following table summarises the components of Net Benefit expenses recognised in the Profit & Loss account and amount recognised in the Balance Sheet for the respective plans.

Note: 4

As per Accounting Standard (AS)17 on " Segment Reporting" segment informaiton has been provided under the notes to Consolidated Financial Statements.

Note: 5

The Ministry of Corporate Affairs, Government of India, vide General Circular no. 2 and 3 dated 8th February 2011 and 21st February 2011 respectively read with General Circular No 08/2014 dated 4th April 2014 has granted a general exemption from compliance with section 212 of the Companies Act, 1956, subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.


Mar 31, 2013

Note: 1.1 Retirement and Other Employees Benefi ts

The Company''s employee benefi ts primarly cover provident fund, gratuity and leave encashment

Provident fund is a defi ned contribution scheme and the company has no further obligation beyond the contribution made to the fund. Contributions are charged to the Profi t & Loss account in the year in which they accrue.

Gratutiy liabilty is a defi ned benefi t obligation and is based on the actuarial valuation done by the Life Insurance Corporation of India. The gratutiy liability and the net periodic gratutity cost is actually determined after considering discounting rates, expected long term return on plan assets and increase in compensation level. All actuarial gain/ lossess are immediately charged to the Profi t & Loss account and are not deferred.

Note: 1.2

Segment Information

The company is in the business of manufacture and sale of solar products and Generation of wind Electricity. Considering the core activities of the company, management is of the view that there is no secondary segment


Mar 31, 2012

Notes:

Term Loan from Indian Overseas Bank is secured by way of first charge on the Solar Power Project assets, Wind Power Turbine and second charge on fixed assets of the company presently charged to Corporation Bank and State Bank of India. Further, it has been guaranted by the some of the directors of the company. The loan is repayable in 25 quarterly installments begining from April 2013.

Represents the interest free sales tax deferment (loan) availed from Government of Andhra Pradesh and the repayment is based on regulations specified in the eligibility certificates issued by Department of Industries. Due with in a year is Rs. 30,76,892/- is classfied and shown under "Other current liabilities".

Notes:

In case of Trade payables, Letters seeking confirmation of year-end balances are sent to the respective parties. Hence the Balances are subject to confirmation and reconcilation.Further, as per the informaion about the industrial status of the creditor there are no dues to any micro and small enterprises under the micro small and medium enterprises development act 2006.

Notes:

Secion 205 of the companies Act, 1956 mandates that companies transfer dividend that has been unclaimed for a period of seven years from unpaid dividend account to the Investor Education and Protecion Fund (IEPF). Accordingly, dividend pertaining to the year 2003-04 at Rs.3,02,066/- has been transferred to IEPF.

(All amounts in Rupees, except share data and unless otherwise stated)

1 Commitments and Contingent Liabilities (Amount in Rs)

As at 31.03.12 As at 31.03.11

i Commitments/ Contingent Liabilities

a Unexpired Letters of Credit 5,290,487 110,901,697

b Counter Guarantees given to the Bankers 32,676,633 68,357,203

ii Claims against the company not acknowledged as debts in respect of

a Excise matters, under dispute 17,317,656 17,317,656

b Sales tax matters, under dispute 1,195,331 1,195,331

2 Retirement and Other Employees Benefits

The Company's employee benefits primarly 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 liabilty is a defined benefit obligation and is based on the actuarial valuation done by the Life Insurance Corporation of India. The gratutiy liability and the net periodic gratutity cost is actually determined after considering discounting rates, expected long term return on plan assets and increase in compensation level. All actuarial gain/ lossess are immediately charged to the Profit & Loss account and are not deferred. The following table summarises the components of Net Benefit expenses recognised in the Profit & Loss account and amount recognised in the Balance Sheet for the respective plans.

Previous years figures have been regrouped and recast wherever necessary to make them comparable with current year's figures


Mar 31, 2010

1. De-merger of Solar Division with Surana Ventures Limited

. The Scheme of arrangement under sections 391 to 394 of the Companies Act, 1956 (the Scheme) to transfer Solar Business on going concern basis to its Associate Company Surana Ventures Limited (SVL) w.e.f 1st October,2009, the appointed date, has become effective on 28th July2010 on getting requisite approvals and completion of necessary formalities.

. In terms of the Scheme, the shareholders of the company will receive 3 (three) equity shares of SVL of the face value of Rs 10/- each, credited as fully paid up, for every 4 (four) fully paid up equity shares held by the company on the record date which is fixed for 19 th August, 2010.

. Consequent to vesting of the Solar Business of the Company in terms of the scheme, the Financial Statements of the Company for the year ended 31 st March, 2010, do not include the operations of the Solar Business for the period of six months from I st October, 2009 to 31 st March, 2010, and are therefore strictly not comparable with the figures of the previous years ended 31 st March, 2009.

2. Secured Loans

Cash Credit from Banks is secured by hypothecation of stocks, Debtors and first charge on pari-passu basis on specific fixed assets of the company respectively and personal guarantee of the Directors.

An advance of Rs 250 lakhs was given for acquiring land in TADA SEZ. As the company has Started receiving refund of the same, it has been transferred to advances and shown as " Loans & advances under schedule 10 of the Balance Sheet.

3. Contingent Liability

Estimated amount of contingent liability which is not acknowledged as debts and claims against the Company and not provided are as follows.

(Rs. in lakhs)

Particulars 2009-10 2008-09

Unexpired Letters of Credit Und 1104.48 1227.49

Counter Guarantees given to the Bankers 999.56 1851.43

Sales Tax matters under appeal 11.95 82.45

Excise/Customs matter under appeal 293.84 370.10



4. Related Party Disclosure A: Relationship

Entities in Associate Subsidiary

which directors companies Company

are interested

Bhagyanagar India Limited Surana Globecom

Ventures Infotech Pvt

Limited Ltd

Bhagyanagar Infrastructure

Limited

Bhagyanagar Properties Pvt. Limited

Green Energy Systems Pvt. Ltd.

Scientia Infocom India Pvt. Limited



Entities in Key Relatives of

which directors Management key management

are interested Personnel personnel

Bhagyanagar India Limited G.M. Surana Sunita Surana

Bhagyanagar Infrastructure Narender Vinita Surana Surana Limited

Bhagyanagar Properties Devendra Pvt. Limited Surana

Green Energy Systems Pvt. Ltd. Manish Surana

Scientia Infocom India Pvt. Limited

Entities in Associate Subsidiary Key Relatives of

which directors companies Company Management key management are interested Personnel personnel



Bhagyanagar Telecom Limited

Bhagyanagar Metals Limited

Bhagyanagar Energy & Telecom Pvt. Limited

Bhagyanagar Entertainment Limited

Bhagyanagar Ventures Pvt. Ltd

Metropolitan Ventures India Limited

GMS Realtors Private Ltd

Innova Technologies Pvt.Limited

Advantage Real Estate India Private Limited

Tranquil Avenues India Private Limited

Celestial Avenues Private Limited

Majestic Logistics Private Limited

Value Infrastructure and Properties Pvt Ltd

Every Time Foods Industries Pvt Limited

Surana Technopark Private Limited

Surana Infocom Pvt.Limited

Innova Biotech India Pvt Limited

Innova Infrastructure Pvt Limited

Epicentre Entertainment Pvt Limited

Royal Skyscrapers India Pvt Limited

Sitetonic Websolutions Pvt Limited

Surana Biochemicals Pvt Limited

Andhra Electro Galvanising works

5. Fixed Assets - Impairment.

In view of the management, there is no impairment of the assets of the company and the management is fully confident of realizing the book value of the assets in cash or in kind. Hence, no provision for the same has been made in the books of accounts

6. Sundry Debtors & Other Balances

In case of balances in Sundry Debtors, Loans and Advances, Other Current Assets and Sundry Creditors, letter- seeking confirmation of year-end balances are sent to the concerned parties. The Balances are subject to confirmation and reconciliation.

Advance to suppliers under Schedule -11 of "Loans & advances" include Rs 214.35 lakhs paid to M/s United International Shipping Agent (T) Ltd, Tanzania, towards cost of copper cathode. However, copper was stolen and replaced with worthless material on the sea-way. The Company has lodged a claim with Insurance Company which is under Process. As the Management is confident of recovering the entire amount from the Insurance Company/Shipping Agent, no provision for loss of goods has been made in the books of accounts.

Company does not owe any sum to Micro & Small enterprises as at the end of the accounting year on account of principal and interest under the Micro, Small and Medium Enterprises Development Act, 2006 as per the information and records available with the company about their industrial status which has been relied upon by the auditors.

7. Retirement and other Employees Benefits

. The Companys 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 by the Life Insurance Corporation. The gratuity liability and the net periodic gratuity cost is actually determined after considering discount 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.

. The following Table summaries the components of Net Benefit expenses recognized in the Profit & Loss Account and amount recognized in the Balance Sheet for the respective Plans.

Previous figures have been regrouped and recast wherever necessary to make them comparable with current years figures.

 
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