Mar 31, 2018
1. Corporate Information
Surana Telecom and Power Limited (âthe Companyâ) is a Public Limited Company registered under the Companies Act, 1956. It is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). It was incorporated on 14.08.1989 having its registered office at 5th Floor, Surya Towers, Sardar Patel Road, Secunderabad, Telangana- 500 003. The Company is into the business of manufacturing/Trading of Solar related Products, Generation of Solar Power and Wind Power
2. Basis of preparation
The financial statements are separate financial statements prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time). For all periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). These standalone financial statements for the year ended March 31, 2018 are the first the Company has prepared in accordance with Ind AS. Refer to Note 42 for information on how the Company adopted Ind AS.
These financial statements have been prepared and presented under the historical cost convention, on the accrual basis of accounting except for certain financial assets and financial liabilities that are measured at fair values at the end of each reporting period, as stated in the accounting policies set out below. The accounting policies have been applied consistently over all the periods presented in these financial statements.
a) Term/rights attached to Equity Shares
The company has only one class of issued equity shares having a par value of Rs. 1/- 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 prefential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
The Description, Nature and Purpose of the each reserve with in equity are as follows.
General Reserve: This reserve is retained earning of the company, which are kept aside out of the Companyâs profit to meet future (known or unknown) obligations.
Retained Earnings: Retained earnings comprise of net accumulated profit/(loss) of the Company, after declaration of dividend.
Capital Redemption Reserve: Capital Redemption Reserve was created on account of buy back of shares of the Company.
16 (a) (i) Term Loan shown as at 1st April, 2016 was availed from M/s Indian Overseas Bank. The loan was taken during the financial year 2011-12 and was prepaid during the year 2016-17.
16 (a) (ii) Term Loan disclosed as at 31st March, 2017 includes the Loan taken from M/s State Bank of India, which was transferred from M/s Bhagyanagar India Limited as part of Scheme of demerger. The loan was taken during the financial year 2013-14 and was prepaid during the Current year .
16 (b) (i) Term Loan from Hero FinCorp Ltd is secured by way of exclusive charge on the receivables from Solar Power Project at Gujarat, additionally secured by way of first and exclusive charge on the assets of Solar Power unit at Gujarat and P&M of Wind Power unit at Karnataka and equitable mortgage on one plot situtated at Cherlapally, Hyderabad. Further, it has been guaranted by the some of the directors of the company. The loan is repayable in 84 monthly installments begining from November 2016. Accordingly, amount due with in a Year is Rs. 3,56,34,389/-(Principal only) which is classified under âOther Current Financial Liabilitiesâ .
16 (b) (ii) Lease Rental Discounted facility from Aditya Birla Finance Limited is secured by First and exclusive charge on Plot at Maheshwaram Mandal, Ranga Reddy District w.r.t Current and Future lease Rentals from the property. The loan is repayable in 108 monthly installments beginning from June 2016. Accordingly, amount due within a year is Rs. 17,15,964/- (Principal only) which is classified Under âOther Current Liabilitiesâ.
16 (c) (i) Vehicle loan from HDFC Bank Limited is secured against hyphotication of vehicle. The loan was taken during the financial year 2016-17 and is repayable in monthly installment of Rs. 43,885/- each. Accordingly due with in a year is Rs. 4,80,755/- (Principal only) which is classified under âOther Current Financial Liabilitiesâ.
16 (c) (ii) Vehicle loan from AXIS Bank Limited is secured against hyphotication of vehicle. The loan was taken during the year and is repayable in monthly installment of Rs. 1,72,067/- each. Accordingly due with in a year is Rs. 17,55,412/-(Principal only) which is classified under âOther Current Financial Liabilitiesâ.
18 (a) Cash Credit from M/s HDFC Bank Limited is secured against certain Fixed Assets and Current Assets of the Company. Further, it has been guaranteed by some of the Directors of the Company.
18 (b) Cash credit shown in the previous years was availed from M/s State Bank of India, and Corporation Bank.
20 (a) (i) Term Loan shown as at 1st April, 2016 was availed from M/s Indian Overseas Bank. The loan was taken during the financial year 2011-12 and was prepaid during the year 2016-17.
20 (a) (ii) Term Loan disclosed as at 31st March, 2017 includes the Loan taken from M/s State Bank of India, which was transferred from M/s Bhagyanagar India Limited as part of Scheme of demerger. The loan was taken during the financial year 2013-14 and was prepaid during the Current year .
20 (b) (i) Term Loan from Hero FinCorp Ltd is secured by way of exclusive charge on the receivables from Solar Power Project at Gujarat, additionally secured by way of first and exclusive charge on the assets of Solar Power unit at Gujarat and P&M of Wind Power unit at Karnataka and equitable mortgage on one plot situtated at Cherlapally, Hyderabad. Further, it has been guaranted by the some of the directors of the company. The loan is repayable in 84 monthly installments begining from November 2016. Accordingly, amount due with in a Year is Rs. 3,56,34,389/-(Principal only) which is classified under âOther Current Financial Liabilitiesâ .
20 (b) (ii) Lease Rental Discounted facility from Aditya Birla Finance Limited is secured by First and exclusive charge on Plot at Maheshwaram Mandal, Ranga Reddy District w.r.t Current and Future lease Rentals from the property. The loan is repayable in 108 monthly installments beginning from June 2016. Accordingly, amount due within a year is Rs. 17,15,964/- (Principal only) which is classified Under âOther Current Liabilitiesâ.
20 (c) (i) vehicle loan from HDFC Bank Limited is secured against hyphotication of vehicle. The loan was taken during the financial year 2016-17 and is repayable in monthly installment of Rs. 43,885/- each. Accordingly due with in a year is Rs. 4,80,755/- (Principal only) which is classified under âOther Current Financial Liabilitiesâ.
20 (c) (ii) vehicle loan from AXIS Bank Limited is secured against hyphotication of vehicle. The loan was taken during the financial year 2017-18 and is repayable in monthly installment of Rs. 1,72,067/- each. Accordingly due with in a year is Rs. 17,55,412/- (Principle only)which is classified under âOther Current Financial Liabilitiesâ.
3. Disclosure required under Section 186(4) of the Companies Act 2013
For details of Loans, advances and guarantee given and securities provided to any of the related party. Please refer note no: 32
4. In the opinion of Board of Directors and to the best of their knowledge and belief, the value on realization of current assets, loans and advances in the ordinary course of business, would not be less than the amount at which the same are stated in the Balance Sheet.
5. 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.
The following table summarizes the components of Net Benefit expenses recognized in the Profit & Loss account and amount recognized in the Balance Sheet for the respective plans.
6. financial risk management objectives and policies
The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance and support Company''s operations. The Company''s principal financial assets include inventory, trade and other receivables, cash and cash equivalents and land advances and refundable deposits that derive directly from its operations. The Company is exposed to market risk, credit risk and liquidity risk.
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 two types of risk: interest rate risk and other price risk, such as equity price risk and commodity/ realestate risk. Financial instruments affected by market risk include loans and borrowings and refundable deposits
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with floating interest rates. The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. The Company does not enter into any interest rate swaps.
B. Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including refundable joint development deposits, security deposits, loans to employees and other financial instruments.
Trade receivables
i. Receivables resulting from sale of properties: Customer credit risk is managed by requiring customers to pay advances before transfer of ownership, therefore, substantially eliminating the Company''s credit risk in this respect.
ii. Receivables resulting from other than sale of properties: The firm has established credit limits for customers and monitors their balances on ongoing basis. Credit Appraisal is performed before leasing agreements are entered into with customers. The risk is also marginal due to customers placing significant amount of security deposits for lease and fit out rentals.
Financial Instrument and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Company''s Finance department in accordance with the Company''s policy. Investments of surplus funds are reviewed and approved by the Company''s Board of Directors on an annual basis The Company''s maximum exposure to credit risk for the components of the statement of financial position at 31 March 2018 and 2017 is the carrying amounts.
C. Liquidity risk
The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank deposits and loans.
The table below summarizes the maturity profile of the Company''s financial liabilities based on contractual undiscounted payments:
7. 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.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents.
8. First-time adoption of Ind AS
These financial statements, for the year ended March 31, 2018, are the first the Company has prepared in accordance with Ind AS. For periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).
Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on March 31, 2018, together with the comparative period data as at and for the year ended March 31, 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company''s opening balance sheet was prepared as at April 1, 2016, the Company''s date of transition to Ind AS.
Exemptions applied
Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:
(a) Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for investment property covered by Ind AS 40 Investment Properties. Accordingly, the Company has elected to measure all of its property, plant and equipment and investment property at their previous GAAP carrying value.
(b) Ind AS 27 requires investments in subsidiaries to be recorded at cost or in accordance with Ind AS 109 in its separate financial statements. However Ind AS 101 provides an option in case the Company decides to measure such investment at cost (determined in accordance with Ind AS 27) or deemed cost (fair value or previous GAAP carrying amount) at that date. The Company can avail the above exemption and recognize the investment in firms at the previous GAAP carrying amount at the date of transition to Ind AS.
The Company has also prepared a reconciliation of equity as at March 31, 2017 and April 1, 2016 under the Previous GAAP with the equity as reported in these financial statements under Ind AS, that reflect the impact of Ind AS on the components of statement of balance sheet which is presented below:
Notes to reconciliations between previous GAAP and Ind AS
Other comprehensive income:
Under Indian GAAP, the Company has not presented other comprehensive income (OCI) separately. Hence, it has reconciled Indian GAAP profit/loss to profit/loss as per Ind AS. Further, Indian GAAP profit/loss is reconciled to total comprehensive income as per Ind AS.
9. Previous year''s figures have been regrouped and rearranged, wherever found necessary.
Mar 31, 2016
1. (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 guaranteed by the some of the directors of the company. The loan is repayable in 25 quarterly installments beginning from March 2013. Accordingly, amount due within a Year is Rs, 4,00,00,000/- which is classified under âOther Current Liabilitiesâ .
2. (c) There is no specific schedule for repayment of unsecured loan taken from Body Corporate.
3. (a) Cash Credit facilities from Scheduled Banks are secured against certain Fixed Assets and Current Assets of the Company on pari-passu basis. Further, it has been guaranteed by the Directors of the Company.
4. (b) In case of Trade Payables, Letter of confirmations of balances were sent, Hence the balances as on the date of
Balance Sheet are Subject to Confirmation and Reconciliation.
5 (c) As per the information available with the company about the Industry Status of the Creditors, There are no dues to
Micro and Small Enterprises under the Micro, Small and Medium Enterprises development Act, 2006.
6 (a) 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. Accordingly, due for the current year, has been repaid and account has become nil.
(a) Lease and other Rental Charges includes Rs, 12,30,342/- in respect of Rent on transformers taken for Gujarat Unit.
(b) R & M to Machinery includes Rs, 22,18,540/- incurred for rectification of transformer at Gujarat Unit.
(c) The subsidiary company (M/s Globecom Infotech Pvt. Ltd) has surrendered the Land allotted by MIDC in the IT/ITES Park at Pune. MIDC has repaid substantial part of amount after deducting Rs, 75,91,308/-. Due to low possibility of recovery of above said amount, The Company has written off the amount of Rs, 82,02,057/- given to subsidiary Company .
Merger of Solar Power Unit of M/s Bhagyanagar India Limited with the Company.
Persuant to Scheme of Arrangement under section 391 to 394 of the Companies Act, 1956, According to the scheme, the Solar power unit of M/s Bhagyanagar India Limited would merge and vest in to the Company, ongoing concern basis. The scheme has been approved by The Board of Directors at their meeting held on 12th October 2015, and subject to necessary consents and other approvals as may be required including that of shareholders of the Company.
Company has filed an application with Bomabay Stock Exchange Limited and National Stock Exchange of India Limited seeking approval in terms of the provisions of Clause 24(f) of the Listing Agreement and with Securities Exchange Board of India. The application has been accorded by them.
The Proposed Scheme of Arrangement is between M/s Bhagynagar India Limited(BIL)and M/s Surana Telecom and Power Limited (STPL). The scheme is subject to approval of the Hon''ble High Court of Judicature of Telanagana and Andhra Pradesh at Hyderabad and regulators, the share holders, and creditors, if any, of BIL and STPL and any others, as may be directed by the Hon''ble High Court of Judicature of Telanagana and Andhra Pradesh at Hyderabad. The aprroval is awaited.
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 â Taxes paid under Protestâ. iii Balance in Trade Receivables, Trade Payables, loans against shares and dues from statutory authorities are subject to reconciliation and confirmations. Changes if any will be recognised in the financial statements of respective years as and when they arise.
Related Party Disclosure
a Related parties where significant influence exists and with whom transactions have taken place during the year
1 Surana Infocom Private Limited 6 Bhagyanagar Green Energy Systems Pvt Ltd
2 Innova Technologies Ltd 7 Bhagyanagar Securities Private Ltd
3 Surana Solar Ltd 8 Globecom Infotech Private Ltd
4 Surana Solar Systems Private Ltd 9 Celestial Solar Solutions Private Limited
5 Aryavaan Renewable Energy Pvt Ltd 10 Tejas India Solar Energy Private Ltd b Sudsier Company c Key Managerial Personnel
Globecom Infotech Private Limited Narender Surana
Celestial Solar Solutions Private Limited Devendra Surana
Surana Solar Systems Private Limited Vinita Surana
Aryavaan Renewable Energy Pvt Ltd D.Srinivas-CS
Tejas India Solar Energy Private Ltd Archit Agarwal-CFO
d Joint Venture Company e Relatives of Key Managerial Personnel
Radiant Alliance Limited GM Surana
ChandKanwar Manish Surana Sresha Surana
Note : Others include items which do not individually exceed 10 % of total Consumption
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.
The following table summarizes the components of Net Benefit expenses recognized in the Profit & Loss account and amount recognized in the Balance Sheet for the respective plans.
As per Accounting Standard (AS)17 on â Segment Reportingâ segment information has been provided under the notes to Consolidated Financial Statements.
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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