Mar 31, 2016
INDEPENDENT AUDITORS REPORT
To The Members of
Suryachakra Power Corporation Limited
Report on Standalone Financial Statements
We have audited the accompanying Standalone financial statements of Suryachakra Power Corporation Limited (âthe Companyâ), which comprises the Standalone Balance Sheet as at March 31, 2016, the Statement of Standalone Profit and Loss and Standalone Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134 (5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting the fraud and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and the matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and other operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates, made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion on the financial statements.
Basis for Qualified Opinion
Attention is invited to:
(a) Note - 33 to the financial statements regarding recognition of rejections /withheld amount by Andaman and Nicobar Administration (A&NA) - We are unable to comment on the extent of ultimate recoverability of Rs.6,00,93,376 (Previous year: Rs.4,93,44,300) withheld by A & NA during the year ended March 31, 2016 and total receivables as at March 31, 2016 - Rs. 14,26,01,061 (as at March 31, 2015 - Rs. 23,05,07,685) which are subject to confirmation by the A&NA. Further, the company, in earlier years, has also recognized interest aggregating to Rs. 12,75,74,329 on such rejections /withheld amount which is also subject to confirmation by the A&NA.
b) Note - 34(b) to the financial statements regarding its investment in Suryachakra Energy (Chhattisgarh) Private Limited, a wholly owned subsidiary of the Company - Rs. 36,51,00,725 (Previous year: Rs.36,48,00,725). Completion and implementation of the power project of Suryachakra Energy (Chhattisgarh) Private Limited depends on the ability of the management to infuse the requisite funds. Hence, we are unable to comment on the recoverability of the carrying amounts of the said investment.
c) Note - 34(c) to the financial statements regarding advances to Suryachakra Global Ventures Limited (SGVL), a wholly owned subsidiary of the Company incorporated in Hong Kong Rs. 70,59,96,278 (Previous Year - Rs. 70,59,96,278) which in turn has advanced the said amount to M/s Symphony Trading and Investment Limited(STIL), Hong Kong for acquiring coal mines for the company/SGVL during the quarter ended June 2011. In the absence of information regarding financial worthiness of STIL/securitiesn in favor of the company, we are unable to comment on the extent of recoverability of the advance.
d) Note - 35 to the financial statements regarding advances to Suryachakra Thermal Energy (Andhra) Private Limited Rs. 2,88,79,652 (Previous Year - Rs.3,06,61,484) and Suryachakra Thermal Energy (Madhya Pradesh) Private Limited Rs.3,81,01,314 (Previous Year - Rs.3,81,01,314) which are considered good and fully recoverable for the reasons stated therein. We are unable to comment on the extent of the ultimate recoverability.
e) Note - 36 to the financial statements regarding capital advances Rs. 8,84,28,238 (Previous year: Rs. 10,36,59,272/-) considered good and fully recoverable for the reasons stated therein. We are unable to comment on the extent of ultimate recoverability.
f) Note - 37 (a) to the financial statements regarding non-provision of interest on loans from certain lenders on account of legal cases filed by them for recovery of their dues. We are unable to comment on the extent of interest expense and loss for the year ended March 31, 2016 and the cumulative liability and cumulative reserves and surplus up to March 31, 2016.
g) Note - 38 to the financial statements regarding the non-availability of confirmation of balances for secured and unsecured loans / borrowings availed by the Company, trade payables, creditors for capital goods and loans and advances granted by the Company. In the absence of confirmation of balances, we are unable to comment on the impact of adverse variances, if any, as at March 31, 2016.
The consequential impact of the above matters on the loss for the year and the retained earnings as at March 31, 2016 is indeterminable. Qualified Opinion
In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matters described in the Basis for Qualified Opinion paragraph above, the aforesaid Standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2016 and its loss and its cash flows for the year ended on that date.
Emphasis of Matter
Without qualifying our opinion, we draw attention to:
i) Note 34 (a) of the financial statements regarding disinvestment of stake in subsidiary Suryachakra Global Enviro Power Limited.
ii) Note 37 (b) of the financial statements regarding writing back of the unpaid interest aggregating to Rs. 13,59,51,879 recognized prior to financial year 2012-13.
iii) Note 39 of the financial statements regarding winding up petition u/s 433 (1) (e) of the Companies Act, 1956 before the Honorable High Court of Andhra Pradesh.
Our opinion is not modified in the regard.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b. Except for the effects of the matters described in the Basis for Qualified Opinion paragraph above, in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c. The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt by this Report are in agreement with the books of account;
d. Except for the possible effects of the matters described in the Basis for Qualified Opinion paragraph above, in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e. The matters described in the Basis for Qualified Opinion paragraph above, and matters described in the Emphasis of Matters paragraph above in our opinion, may have an adverse effect on the functioning of the Company.
f. On the basis of written representations received from the directors as on March 31, 2016, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016, from being appointed as a director in terms of Section 164 (2) of the Act.
g. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
h. With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditorâs) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 33, 37 & 39 to the financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
(i) In respect of its Fixed Assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of its fixed assets.
(b) According to the information and explanations given to us, the fixed assets have been physically verified during the year by the Management in accordance with a programme of verification, which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals having regard to the size of the Company and the nature of their assets, the discrepancies noticed on such verification were not material and have been properly dealt with in the books of account.
(ii) In respect of its inventories:
a) The inventories consisting of raw materials, stores, spares and consumables have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.
b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.
c) In our opinion and according to the information and explanation given to us, and on the basis of our examinations of the inventory records, the Company is maintaining proper records. The discrepancies noticed on physical verification of inventory as compared to book records were not material to the operations of the Company and the same have been properly dealt with in the books of account
(iii) According to the information and explanations given to us, the Company has granted secured and unsecured loans and advances to companies covered in the register maintained under section 189 of the Act.
a) According to the information and explanations given to us, the terms of the arrangement do not stipulate any repayment schedule for principal and interest.
b) Hence, there is no overdue amount in respect of the above loans.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
(v) According to the information and explanations given to us, the Company has not accepted any deposits from the public. Accordingly paragraph 3(v) of the Order is not applicable to the Company.
(vi) We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records prescribed under Section 148(1) of the Act and we are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we are not required to and have not carried out a detailed audit of the same.
(vii) According to the information and explanations given to us and according to the books and records as produced and examined by us in accordance with the generally accepted auditing practices in India, in respect of statutory dues:
(a) The Company is not regular in depositing undisputed statutory dues including Provident Fund, Income Tax, Sales Tax, Service tax and material statutory dues applicable to it with the appropriate authorities. According to the information and explanations given to us, the provisions of employeeâs state insurance, wealth tax custom duty, excise duty and cess are not applicable to the Company at present. The following undisputed amounts were in arrears as at March 31, 2016 for a period of more than six months from the date they became payable.
Particulars |
Amount in Rs. |
Tax Deduction at Source |
35,23,124 |
Service Tax |
8,87,703 |
Provident Fund |
1,42,825 |
VAT |
546,250 |
(b) According to the information and explanation given to us, there are no dues of Income Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty or Value Added Tax which have not been deposited on account of any dispute.
(viii) In our opinion and according to the information and explanations given to us, the Company has defaulted in repayment of dues to banks. The period and the amount of default have been set out in the Appendix to this report.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3 (ix) of the Order is not applicable.
(x) During the course of our examination of the books and other records of the Company carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year, nor have we been informed of such case by the management.
(xi) According to the information and explanations give to us and based on our examination of the records of the Company, managerial remuneration has been paid / provided during the year in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act 2013.
(xii) According to the information and explanations given to us and based on our examination of the records, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraphs 3(xiv) of the Order are not applicable
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him during the year.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
We have audited the internal financial controls over financial reporting of Suryachakra Power Corporation Limited (âthe Companyâ) as of March 31, 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
Because of the matter described in Disclaimer of Opinion paragraph below, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on internal financial controls system over financial reporting of the Company.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Disclaimer of Opinion
According to the information and explanations given to us, the company has not documented its system of internal financial control over financial reporting on the criteria based on the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the ICAI. Therefore we are unable to obtain sufficient appropriate audit evidence to express an opinion on the adequacy and operating effectiveness of internal financial controls over financial reporting.
We have considered the disclaimer stated above in determining the nature, timing, and extent of audit tests applied in our audit of the financial statements of the Company, and the disclaimer does not affect our opinion on the financial statements of the Company
for M. Bhaskara Rao & Co.,
Chartered Accountants
Firm Registration No. 000459S
V K Muralidhar
Partner
Hyderabad, May 28, 2016 Membership No.201570
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Suryachakra Power Corporation Limited ("the Company"), which
comprise the standalone Balance Sheet as at March 31,2015, standalone
the Statement of Profit and Loss,standalone the Cash Flow Statement and
a summary of significant accounting policies and other explanatory
information for the year then ended.
Management's Responsibility for the Standalone Financial Statements:
The Company's Board of Directors is responsible for the matters
stated in Section 134(5) of the CompaniesAct, 2013 ("the Act") with
respect to the preparation of these standalone financial statements
that give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility:
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well
as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our qualified audit opinion on the
financial statements.
Basis for Qualified Opinion
Attention is invited to:
(a) Note - 33 to the financial statements regarding revenue from
Andaman & Nicobar Administration (A&N Administration) -pendingfinal
agreement with A&NAdministration, we are unable to comment on the
extent of ultimate recoverability ofRs.49,344,300/- withheld by A&N
Administration during the year ended March 31, 2015(year ended
31.03.2014: Rs.5,32,99,282)and the total receivables including interest
accrued thereon as at March 31, 2015of Rs.35,80,82,014/ - (31.03.2014:
Rs.30,87,37,714) on account of amounts withheld which are subject to
confirmation by the A&N Administration.
(b) Note 34(a) to the financial statements regarding the company s
assessment that no provisioning is required against the carrying
amounts of its investments in subsidiary Suryachakra Global Enviro
Power Limited Rs. 22,27,79,241, despite the complete erosion of its net
worth and continued suspension of operations for the reasons stated in
the said note. We are unable to comment on the recoverability of the
carrying amounts of the said investment or advances.
(c) Note 34(b) to the financial statements regarding its investment in
Suryachakra Energy (Chhattisgarh) Private Limited, a wholly owned
subsidiary of the company - Rs. 36,48,00,725. Completion and
implementation of the power project of Suryachakra Energy
(Chhattisgarh) Private Limited depends on the ability of the management
to infuse the requisite funds. Hence, we are unable to comment on the
recoverability of the carrying amounts of the said investment.
(d) Note 34(c) to the financial statements regarding advances to
Suryachakra Global Ventures Limited(SGVL), a wholly owned subsidiary of
the company incorporated in Hong Kong Rs. 70,59,96,278 which in turn
has advanced the said amount to M/s Symphony Trading and Investment
Limited(STIL), Hong Kong for acquiring coal mines for the company/SGVL
during the quarter ended June 2011. In the absence of information
regarding financial worthiness of STIL/securities in favour of the
company, we are unable to comment on the extent of recoverability of
the advance.
(e) Note 35 to the financial statements regarding advances to
Suryachakra Thermal Energy (Andhra) Private Limited Rs.3,06,61,484 and
Suryachakra Thermal Energy (Madhya Pradesh) Private Limited
Rs.3,81,01,314 which are considered good and fully recoverable for the
reasons stated therein. We are unable to comment on the extent of the
ultimate recoverability.
(f) Note 36 to the financial statements regarding capital advances
considered good and fully recoverable for the reasons stated therein.
We are unable to comment on the extent of ultimate recoverability.
(g) Note 37to the financial statements regarding non-provision of
interest on loans from certain lenders on account of legal cases filed
by them for recovery of their dues. We are unable to comment on the
extent of interest expense and loss for the year ended March 31, 2015
and the cumulative liability and cumulative reserves and surplus up to
March 31, 2015.
(h) Note 39to the financial statements regarding the non-availability
of confirmation of balances for secured loans, trade payables,
creditors for capital goods and loans and advances. In the absence of
confirmation of balances, we are unable to comment on the impact of
adverse variances, if any, as at March 31, 2015.
The consequential impact of the above matters on the loss for the year
and the retained earnings as at March 31,2015 is indeterminable.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the possible effects of the
matters described in the Basis for Qualified Opinion paragraph above,
the aforesaid standalone financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India, of the state of affairs of the Company as atMarch 31, 2015 and
its loss and its cash flows for the year ended on that date.
Emphasis of Matter
We draw attention toNote - 38 to the financial statements regarding the
winding up petition filed by one of the unsecured creditors of the
Company, which is pending for hearing before the Honourable High Court
of Andhra Pradesh.
Our opinion is not modified in respect of this matter.
Report Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor's Report) Order, 20015
("the Order") issued by the Central Government of India in terms of
Section 143 (11) of the Companies Act, 2013, we give in the Annexure a
statement on the matters specified in paragraph3 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) Except for the effects of the matters described in the Basis for
Qualified Opinion paragraph above, in our opinion, proper books of
account as required by law have been kept by the Company so far as it
appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) Except for the possible effects of the matters described in the
Basis for Qualified Opinion paragraph above, in our opinion, the
aforesaid standalone financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of
the Companies (Accounts) Rules, 2014.
e) The matters described in the Basis for Qualified Opinion paragraph
above, and matters described in the Emphasis of Matters paragraph above
in our opinion, may have an adverse effect on the functioning of the
Company.
f) On the basis of the written representations received from the
directors as on 31 March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
g) The qualification relating to the maintenance of accounts and other
matters connected therewith are as stated in the Basis for Qualified
Opinion paragraph above.
h) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 37 & 38 to
the financial statements
ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii) The following are the instances of delay in transferring amounts,
required to be transferred, to the Investor Education and Protection
Fund by the Company
(i) In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b) The management has conducted physical verification of major assets
during the year, which in our opinion is reasonable having regard to
the size of the Company and the nature of the assets. According to the
information and explanations given to us, no material discrepancies
were noticed on such verification
(ii) In respect of its inventories:
a) The inventories consisting of raw materials, stores, spares and
consumables have been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business
c) In our opinion and according to the information and explanation
given to us, and on the basis of our examinations of the inventory
records, the Company is maintaining proper records. The discrepancies
noticed on physical verification of inventory as compared to book
records were not material to the operations of the Company and the same
have been properly dealt with in the books of account.
(iii) According to the information and explanations given to us, the
Company has granted secured and unsecured loans and advances to
companies covered in the register maintained under Section 189 of the
Act.
a) According to the information and explanations given to us, the terms
of the arrangement do not stipulate any repayment schedule for
principal and interest.
b) Hence, there is no overdue amount in respect of the above loans.
(iv) In our opinion and, according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories and fixed assets and for sale of goods and
services. In our opinion and according to the information and
explanations given to us, there is no continuing failure to correct
major weakness in internal control system.
(v) According to the information and explanations given to us, the
Company has not accepted any deposits from public. Accordingly, the
provisions of clause 3(v) of the Order are not applicable to the
company.
(vi) We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the Company
pursuant to the rules made by the Central Government for the
maintenance of cost records prescribed under Section 148(1) of the Act
and we are of the opinion that, prima facie, the prescribed accounts
and records have been made and maintained. However, we are not required
to and have not carried out a detailed audit of the same.
fvu) a) The company is not regular in depositing undisputed statutory
dues including Provident Fund, Income tax, Sales tax , Service Tax and
material statutory dues applicable to it with the appropriate
authorities. According to the information and explanations given to us,
the provisions of employees state insurance, wealth tax custom duty,
excise duty and cess are not applicable to the company at present. The
following undisputed amounts were in arrears as at March 31, 2015 for a
period of more than six months from the date they became payable:
Rupees
Tax Deduction at Source 47,32,154
Service Tax 5,90,280
Provident Fund 53,966
VAT 5,46,250
b) According to the information and explanations given to us, there
were no dues of Income Tax / Sales Tax / Wealth Tax / Service Tax /
Custom Duty / Excise Duty / Cess which have not been deposited on
account of any dispute.
c) In our opinion and according to the information and explanations
given to us, the amounts required to be transferred to investors
education and protection fund, in accordance with the relevant
provisions of the companies Act-1956 ( 1 to 1956) and rules made there
under has been transferred to such fund within time.
(viii) Subject to the effects of the matters described in the Basis for
Qualified Opinion paragraph of our report of even date, the accumulated
losses of the Company at the end of the financial year are not less
than 50% of its net worth and it has incurred cash losses in the
financial year under report and in the immediately preceding financial
year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has defaulted in repayment of dues to banks.
The period and the amount of default have been set out in the Appendix
to this report.
(x) In our opinion and according to the information and explanations
given to us, the Company has given guarantees for loans taken by its
subsidiary from banks or financial institutions. The terms and
conditions of the guarantees given by the company for loans taken by
one of its subsidiaries from Bunge Emissions Fund Limited are prima
facie not prejudicial to the interests of the Company.
(xi) In our opinion and according to the information and explanations
given to us, the term loans availed by the Company during the earlier
years have been applied for the purpose for which the loans were
obtained.
(xii) During the course of our examinations of the books and records of
the Company carried out in accordance with the generally accepted
practices in India and according to the information and explanations
given to us,no instance of fraud on or by the Company has been noticed
or reported during the year, nor have we been informed of such case by
the management.
for M BHASKARA RAO & CO.
Chartered Accountants
Firm Registration No. 000459 S
V.K. MURALIDHAR
PARTNER
Hyderabad, May 27, 2015 Membership No.201570
Mar 31, 2014
We have audited the accompanying financial statements of Surychakra
Power Corporation Limited ("the Company"), which comprise the
Balance Sheet as at March comprise the Balance Sheet as at March31,
2014, the Statement of Profit and Loss Cash Flow Statement for the year
then ended, and a summary of significant accounting policies and other
explanartory information.
Management''s Responsibility for the Consolidated Financial
Statements:
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor '' Responsibility:
Our responsiblility is to express opinion on these financial statements
based on our audit. We conducted our audit in accordance with the
Standards on Auditing issued by the Institute of Chartered Accountants
of India. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s Judgement, including the assessment
of the risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the Company''s
preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the approprateness of accounting
policies used and the reasonableness of the accounting estimates made
by mangement, as well as evaluating the overall presenation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Basis for Qualified Opinion
Attention is invited to:
(a) Note - 32 to the financial statements regarding revenue from
Andaman & Nicobar Administration (A&N Administration) - pending final
agreement with A&N Administration, we are unable to comment on the
extent of ultimate recoverability of Rs. 5,32,99,282/- withheld by A&N
Adminstration during the year ended March 31, March 2014 (year ended
31.03.2013 : Rs. 5,25,87,325) and the total receivables including
interest accrued thereon as at March 31,2014 of Rs. 30,87,37,714/-
(31.03.2013 : Rs. 25,40,07,355) on account of amounts withheld which
are subject to confirmation by the A& N Administration.
(b) Note 33(a) to the financial statements regarding the company''s
assessment that no provisioning is required against the carrying
amounts of its long term investments and loans extended to its
subsidiary Suryachakra Global Enviro Power Limited - Rs.113,18,60,401,
for the reasons stated in the said note. We are unable to comment on
the recoverability of the carrying amounts of the said investment or
advances.
(c) Note 33(b) to the financial statements regarding its investment in
Suryachakra Energy (Chattisgarh) Private Limited, a wholly owned
subsidiary of the company -Rs.36,48,00,725. Completion and
implementation of the power project of Suryachakra Energy
(Chhattishgarh) Priavate Limited depends on the ability of the
management to infuse the requisite funds. Hence, we are unable to
comment on the recoverability of the carrying amounts of the said
investment.
(d) Note 33(c) to the financial statements regarding advances to
Suryachakra Global Ventures Limited (SGVL), a wholly owned subsidiary
of the company incorporated in Hong Kong - Rs. 70,59,96,278 which in
turn has davanced the said amount to M/s Symphony Trading and
Investement Limited (STIL), Hong Kong for acquiring coal mines for the
company / SGVL during the quarter ended June 2011. In the absence of
information regarding financial worthiness of STIL/securities in favour
of the company, we are unable to comment on the extent of
recoverability of the advance.
(e) Note 35 to the financial statements regarding non-provision of
interest on loans from certain lenders on account of legal cases filed
by them for recovery of their dues. We are unable to comment on the
extent of interest expense for the year ended March31,2014 and the
cumulative liability up to March 31, 2014.
(f) Note 36 to the financial statement regarding the non-availability
of confirmation of balances for secured loans, trade payables,
creditors for capital goods and loans and advances. In the absence of
confirmation of balances, we are unable to comment on the impact of
adverse variances, if any, as at March 31,2014.
The consequential impact of the above matters on the loss for the year
and the retained earnings as at March 31, 2014 is indeterminable.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matters
described in the Basis for Qualified Opinion paragraph, the financial
statement give the information required by the Act, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
ii) in the case of the statement of Profit and Loss, of the loss for
the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cas flows for the
year ended on that date.
Emphasis of Matter
We draw attention to Note - 34 to the financial statement regarding the
winding up petition filed by one of the unsecured creditors of the
Company, which is pending for hearing before the Honourable High Court
of Andhra Pradesh.
Our opinion is not qualified in respect of the above matter.
Report Other Legal and Regulatory Requirements:
1. As required by the companies (Auditor''s Report) order, 2003
("the Order") issued by the Cental Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
i) We have obtained all the inforamtion and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
iv) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211 of
the Act.
v) On the basis of written representations received from the directors,
as on March 31, 2014 and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014 from being
appointed as a director in terms of clause(g) of sub-section (1) of
Section 274 of the Act.
SURYACHAKRA POWER CORPORATION LIMITED ANNEXURE TO THE AUDITORS''
REPORT (STATEMENT REFERRED TO IN OUR REPORT OF EVEN DATE)
(i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b) According to the information and explanations given to us, the
management has conducted physical verification of major fixed assets
during the year, which in our opinion is reasonable having regard to
the size of the Company and the nature of the assets. No material
discrepancies were noticed on such verification.
c) According to the information and explanations given to us, the
Company, during the year, has not disposed off substantial part of
fixed assets. Hence, the provisions of clause 4 (i) (c) of the Order is
not applicable to the company.
(ii) a) The inventories consisting of raw materials, stores, spares and
consumables have been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c) In our opinion and according to the information and explanation
given to us, and on the basis of our examinations of the inventory
records, the Company is maintaining proper records. The discrepancies
noticed on physical verification of inventory as compared to book
records were not material to the operations of the Company and the same
have been properly dealt with in the books of account.
(iii) a) According to the information and explanations given to us, the
company has granted secured / unsecured loans and advances to six
parties covered in the register maintained under Section 301 of the
Act. The maximum amount involved during the year was Rs.134,75,54,880
and the year-end balance of the loan granted to such parties was Rs.
102,46,35,363.
b) In our opinion and according to the information and explanations
given to us, the terms and conditions on which the loans and advances
have been granted are not prima facie prejudicial to the interests of
the Company.
c) According to the information and explanations given to us, the terms
of the arrangement do not stipulate any repayment schedule for
principal and interest.
d) There is no overdue amount in respect of the above loans.
e) According to the information and explanations given to us, the
Company has not taken any loans secured or unsecured from companies,
firms or other parties covered in the register maintained under Section
301 of the Act. Accordingly, the provisions of clause 3 (e), (f) and
(g) of the Order are not applicable to the company.
(iv) In our opinion and, according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories and fixed assets and for sale of goods and
services. In our opinion and according to the information and
explanations given to us, there is no continuing failure to correct
major weakness in internal control system.
(v) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements (except
secured/unsecured loans and advances granted to the parties stated in
para (iii) above), referred to under section 301 of the Act, that need
to be entered into the register maintained under section 301 of the Act
have been so entered.
(vi) According to the information and explanations given to us, the
Company has not accepted any deposits from public. Accordingly, the
provisions of clause 4(vi) of the Order is not applicable to the
company.
(vii) In our opinion and according to the information and explanations
given to us, the scope and coverage of the internal audit system needs
to be strengthened to make it commensurate with the size and the nature
of its business.
(viii) We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the Company
pursuant to the rules made by the Central Government for the
maintenance of cost records prescribed under Section 209(1)(d) of the
Act and we are of the opinion that, prima facie, the prescribed
accounts and records have been made and maintained. However, we are not
required to and have not carried out a detailed audit of the same.
(ix) a) The company is not regular in depositing undisputed statutory
dues including Provident Fund, Investor Education
and Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service tax, Custom Duty, Excise Duty, Cess and other
material statutory dues applicable to it with the appropriate
authorities. According to the information and explanations given to us,
the following undisputed amounts were in arrears as at March 31, 2014
for a period of more than six months from the date they became payable:
Rupees
Tax Deduction at Source 56,42,391
Service Tax 4,28,397
Provident Fund 1,68,936
VAT 5,46,250
b) According to the information and explanations given to us, there
were no dues of Income Tax / Sales Tax / Wealth Tax / Service Tax /
Custom Duty / Excise Duty / Cess which have not been deposited on
account of any dispute.
(x) Subject to the effects of the matters described in the Basis for
Qualified Opinion paragraph of our report of even date, the accumulated
losses at the end of the year does not exceed 50% of its net worth at
the end of the year. The company has incurred cash losses in the
financial year under report; however, the company has incurred cash
losses in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has defaulted in repayment of dues to banks.
Details of the same are stated in the Appendix to this report.
(xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the Company is not a Chit Fund / Nidhi / Mutual
Benefit Fund / Society. Accordingly, the provisions of clause 4(xiii)
of the Order are not applicable to the company.
(xiv) In our opinion and according to information and explanations
given to us, the Company does not deal or trade in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the Order are not applicable to the company.
(xv) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
company for loans taken by one of its subsidiaries from banks or
financial institutions are prima facie not prejudicial to the interests
of the Company.
(xvi) To the best of our knowledge and belief and according to
information and explanations given to us, in our opinion, the term
loans availed during the earlier years by the Company were, prima
facie, applied by the Company for the purposes for which the loans were
obtained.
(xvii) According to information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we report that
no funds raised on short term basis have been used for long term
purposes.
(xviii) During the year under report, the company has not made any
preferential allotment of shares to parties and companies covered in
the register maintained under section 301 of the Act.
(xix) According to the information and explanations given to us, no
debentures have been issued by the Company. Hence, the provisions of
clause 4(xix) of the Order are not applicable to the Company.
(xx) In our opinion and according to the information and explanations
given to us, the Company has not raised any money by public issue
during the year. Hence, the provisions of clause 4(xx) of the Order are
not applicable to the Company.
(xxi) During the course of our examinations of the books and records of
the Company carried out in accordance with the generally accepted
practices in India and according to the information and explanations
given to us, no instance of fraud on or by the Company was reported
during the year, nor have we been informed of such case by the
management.
for M BHASKARA RAO & CO.
Chartered Accountants
Firm Registration No. 000459 S
V.K. MURALIDHAR
Partner
Hyderabad, May 30, 2014 Membership No.201570
Jun 30, 2012
1. We have audited the attached Balance Sheet of Suryachakra Power
Corporation Limited as at June 30, 2012, the Statement of Profit and
Loss and the Cash Flow Statement for the year ended on that date,
annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, as
amended, issued by the Central Government in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Attention is invited to:
(a) Note 34 to the financial statements regarding revenue from Andaman
& Nicobar Administration (A&N Administration) - pending final agreement
with A&N Administration, we are unable to comment on the extent of
ultimate recoverability of Rs.10,13,89,890/- withheld by A&N
Administration for the year ended June 30, 2012 (31.03.2011: Rs.
5,94,94,972)and the total receivables as at June 30, 2012 of
Rs.17,76,78,168 (31.03.2011: Rs. 8,59,04,780) which are subject to
confirmation by the A&N Administration. The total interest accrued on
such disagreements which are subject to confirmation by the A&N
Administration is Rs.12,75,74,329 (31.03.2011: Rs.12,75,74,329).
(b) Note 35 to the financial statements, relating to coal trading
receivables (discontinued operation) regarding which we are unable to
comment on the extent of realisability of the dues.
(c) Note 36 relating to the Company's assessment that no provision
against the carrying amounts of its long term investment and loans
extended to its subsidiaries "Suryachakra Global Enviro Power
Limited"Rs.116,93,13,308; "Suryachakra Energy (Chhattisgarh)Private
Limited" Rs.35,66,32,225and "Suryachakra Global Ventures Limited"
Rs.85,01,25,548 is presently necessary, for the reasons stated in the
said note. We are unable to comment on the extent of the impairment of
the said investment / advances.
The consequential impact of the above matters on the loss for the year
ended June 30, 2012 and the retained earnings as at June 30, 2012 is
indeterminable.
5. Without qualifying our opinion, we draw attention to:
Note 37 to the financial statements regarding winding up petition filed
by one of the unsecured creditors which is pending for hearing before
the Honourable High Court of Andhra Pradesh.
6. Further to our comments in the Annexure referred to in paragraph
(3) above, we report that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
iv) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
v) On the basis of written representations received from the directors,
as on June 30, 2012 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on June 30, 2012
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956;
vi) Subject to our comments at para 4 above, in our opinion and to the
best of our information and according to the explanations given to us,
the said financial statements read together with "Significant
Accounting Policies" and notes thereon give the information required
by the Companies Act, 1956, in the manner so required and give a true
and fair view in conformity with the accounting principles generally
accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at June 30, 2012;
ii) in the case of the Statement of Profit and Loss, of the loss of the
Company for the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
SURYACHAKRA POWER CORPORATION LIMITED ANNEXURE TO THE AUDITORS'
REPORT
(STATEMENT REFERRED TO IN PARAGRAPH (3) OF OUR REPORT OF EVEN DATE)
(i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b) According to the information and explanations given to us, the
management has conducted physical verification of major fixed assets
during the year, which in our opinion is reasonable having regard to
the size of the Company and the nature of the assets. No material
discrepancies were noticed on such verification.
c) According to the information and explanations given to us, the
Company, during the year, has not disposed off substantial part of
fixed assets.
(ii) a) The inventories consisting of raw materials, stores, spares and
consumables have been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c) In our opinion and according to the information and explanation
given to us, and on the basis of our examinations of the inventory
records, the Company is maintaining proper records. The discrepancies
noticed on physical verification of inventory as compared to book
records were not material to the operations of the Company and the same
have been properly dealt with in the books of account.
(iii) a) According to the information and explanations given to us, the
Company has granted unsecured loan to seven parties covered in the
register maintained under Section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs.121,17,92,935 and the
year-end balance of the loan granted to such parties was
Rs.105,26,72,443.
b) In our opinion and according to the information and explanations
given to us, the terms and conditions on which the loans have been
granted are not prima facie prejudicial to the interests of the
Company.
c) According to the information and explanations given to us, the terms
of the arrangement do not stipulate any repayment schedule for
principal and interest.
d) There is no overdue amount in respect of the above loans.
e) According to the information and explanations given to us, the
Company has not taken any loans secured or unsecured from companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956. Accordingly, the provisions of clause 3
(e), (f) and (g) of the Companies (Auditors' Report) Order, 2003 are
not applicable to the company.
(iv) In our opinion and, according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories and fixed assets and for sale of goods and
services. In our opinion and according to the information and
explanations given to us, there is no continuing failure to correct
major weakness in internal control system.
(v) In our opinion and according to the information and explanations
given to us, we are of the opinion that there are no particulars of
contracts or arrangements (except unsecured loans taken from the
parties stated in para (iii) above), referred to under section 301 of
the Companies Act, 1956, that need to be entered into the register
maintained under section 301 of the Companies Act, 1956.
(vi) According to the information and explanations given to us, the
Company has not accepted any deposits from public. Accordingly, the
provisions of clause 4(vi) of the Companies (Auditors' Report) Order,
2003 are not applicable to the company.
(vii) In our opinion and according to the information and explanations
given to us, the scope and coverage of the internal audit system needs
to be strengthened to make it commensurate with the size and the nature
of its business.
(viii) We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the Company
pursuant to the rules made by the Central Government for the
maintenance of cost records prescribed under Section 209(1)(d) of the
Companies Act, 1956, and we are of the opinion that, prima facie, the
prescribed accounts and records have been made and maintained. However,
we are not required to and have not carried out a detailed audit of the
same.
(ix) a) The company is not regular in depositing undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
tax, Custom Duty, Excise Duty, Cess and other material statutory dues
applicable to it with the appropriate authorities. According to the
information and explanations given to us, the following undisputed
amounts were in arrears as at June 30, 2012for a period of more than
six months from the date they became payable:
Rupees
Tax Deduction at Source 32,68,784
Provident Fund 1,316
VAT 5,46,250
Professional Tax 100
b) According to the information and explanations given to us, there
were no dues of Income Tax / Sales Tax / Wealth Tax / Service Tax /
Custom Duty / Excise Duty / Cess which have not been deposited on
account of any dispute.
(x) Subject to the matters specified in paragraph 4 of our report of
even date, the accumulated losses at the end of the year does not
exceed 50% of its net worth at the end of the year. The company has not
incurred cash losses in the financial year under report and in the
immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has defaulted in repayment of dues to banks.
Details of the same are stated in the Appendix.
(xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the Company is not a Chit Fund / Nidhi / Mutual
Benefit Fund / Society. Accordingly, the provisions of clause 4(xiii)
of the Companies (Auditors' Report) Order, 2003 are not applicable to
the company.
(xiv) In our opinion and according to information and explanations
given to us, the Company does not deal or trade in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the Companies (Auditors' Report) Order, 2003 are not
applicable to the company.
(xv) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
company for loans taken by one of its subsidiaries from banks or
financial institutions are not prima facie prejudicial to the interests
of the Company.
(xvi) To the best of our knowledge and belief and according to
information and explanations given to us, in our opinion, the term
loans availed during the earlier years by the Company were, prima
facie, applied by the Company for the purposes for which the loans were
obtained.
(xvii) According to information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we report that
no funds were raised on short term basis which have been used for long
term purposes.
(xviii) During the year under report, the company has not made any
preferential allotment of shares to parties and companies covered in
the register maintained under section 301 of the companies Act, 1956.
(xix) According to the information and explanations given to us, no
debentures have been issued by the Company. Accordingly, the
provisions of clause 4
(xix) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the Company.
(xx) In our opinion and according to the information and explanations
given to us, the Company has not raised any money by public issue
during the year except by issue of Global Depository Receipts. The
proceeds of the same were applied for the purposes for which the issue
was made.
(xxi) During the course of our examinations of the books and records of
the Company carried out in accordance with the generally accepted
practices in India and according to the information and explanations
given to us, no instance of fraud on or by the Company was reported
during the year, nor have we been informed of such case by the
management.
For M.BHASKARA RAO & CO;
Chartered Accountants
Firm Registration No. 000459 S
V.K MURALIDHAR
Partner
Membership No. 201570
Hyderabad, July 16, 2012
Mar 31, 2011
1 We have audited the attached balance sheet of Suryachakra Power
Corporation Limited ("the Company") as at 31 March 2011, the profit and
loss account and the cash flow statement of the Company for the year
ended on that date, annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2 We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3 As required by the Companies (Auditor's Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Companies Act, 1956, we
enclose in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
4 Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(i) we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) in our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(iii) the balance sheet, profit and loss account and cash flow
statement dealt with by this report are in agreement with the books of
account;
(iv) in our opinion, the balance sheet, profit and loss account and
cash flow statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
(v) on the basis of written representations received from the
directors, as on 31 March 2011, and taken on record by the Board of
Directors, none of the Directors is disqualified as on 31 March 2011
from being appointed as a Director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
(vi) In relation to the matter set out in note 3 of the Schedule 20 of
the financial statements, pending the final agreement with the Andaman
& Nicobar Administration (A & N Administration), we are unable to
comment on the extent of ultimate recoverability of Rs.59,494,972 for
the year ended 31 March 2011 (previous year: Rs.47,835,455) and the
total receivables as at 31 March 2011 of Rs. 85,904,780 (previous year:
Rs.118,640,315) which are subject to confirmation by the A&N
Administration. Furthermore, the Company has accrued interest on the
above cumulative billings of Rs. 43,721,965 for the year ended 31 March
2011 (previous year: Rs.28,503,384) which are subject to confirmations
by the A&N Administration. The total interest accrued on such
disagreements which are subject to confirmations by the A&N
Administration is Rs. 127,574,329 (previous year: Rs.83,852,364). The
Consequential impact of the above matter on the profit for the year
ended 31 March 2011 and the retained earnings as at 31 March 2011 is
indeterminable; and
(vii) in our opinion and to the best of our information and according
to the explanations given to us, subject to the matter set out at
paragraph (vi) above, the said accounts give the information required
by the Companies Act, 1956, in the manner so required and give a true
and fair view in conformity with the accounting principles generally
accepted in India:
a. in the case of the balance sheet, of the state of affairs of the
Company as at 31 March 2011;
b. in the case of the profit and loss account, of the profit for the
year ended on that date; and
c. in the case of the cash flow statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
The Annexure referred to in the auditors' report to the members of
Suryachakra Power Corporation Limited ("the Company") for the year
ended 31 March 2011. We report that:
i. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which all the fixed assets are verified every year. In
our opinion, the periodicity of physical verification is reasonable
having regard to the size of the Company and the nature of its assets.
In accordance with the programme all the fixed assets were verified
during the year and no material discrepancies were noted on such
verification.
(c) Fixed assets disposed off during the year were not substantial and
therefore do not affect the going concern assumption.
ii. (a) The inventory consisting of raw materials, stores, spares and
consumables have been physically verified by the management during the
year. In our opinion, the frequency of such verification is reasonable.
(b) In our opinion, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
iii. (a) The Company has granted an unsecured loan to one company
covered in the register maintained under Section 301 of the Companies
Act, 1956. The maximum amount outstanding during the year was Rs.
65,004 and the year-end balance of such loans was Rs. 65,004.
(b) In our opinion, terms and conditions on which the above mentioned
unsecured loan have been granted is not, prima facie, prejudicial to
the interest of the Company.
(c) In case of the above mentioned loan granted to companies listed in
the register maintained under Section 301, the terms of arrangement do
not stipulate any repayment schedule for principal and interest, which
are repayable on demand.
(d) There are no overdue amounts of more than Rupees one lakh in
respect of companies, firms or other parties listed in the register
maintained under Section 301 of the Companies Act, 1956.
(e) The Company has taken interest free unsecured loan from a party
covered in the register maintained under Section 301 of the Companies
Act, 1956. The maximum amount outstanding during the year was Rs.
159,400 and the year-end balance of such loan was Rs. Nil.
(f) In our opinion, the terms and conditions on which such loan have
been taken by the Company are not, prima facie, prejudicial to the
interest of the Company.
(g) The above mentioned loan was repayable on demand and was repaid
before the year-end and accordingly the Company has been regular in
repaying the principal.
iv. In our opinion and according to the information and explanations
given to us, and having regard to the explanation that purchases of
certain items of inventories are for the Company's specialised
requirements and suitable alternative sources are not available to
obtain comparable quotations, there is an adequate internal control
system commensurate with the size of the Company and the nature of its
business with regard to purchase of inventories and fixed assets and
with regard to the sale of goods. In our opinion and according to the
information and explanation given to us, there is no continuing failure
to correct major weaknesses in internal control system.
v. (a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that Section.
(b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred to in point (a) above and exceeding the value of
Rs.5 lakh with any party during the year, have been made at prices
which are reasonable having regard to the prevailing market prices at
the relevant time.
vi. The Company has not accepted any deposits from the public.
vii. The scope and coverage of the internal audit system needs to be
strengthened to make it commensurate with the size and nature of its
business.
viii. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules prescribed by the Central Government for
maintenance of cost records under Section 209(1) (d) of the Companies
Act, 1956, and are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. However, we have
not made a detailed examination of the records.
ix. (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, the
Company has been generally regular in depositing amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Sales tax, Service tax, Customs duty and other
material statutory dues except that there were significant delays in
payment of Provident fund and Income tax. As informed to us the
provisions of Investor Education and Protection Fund, Employee' State
Insurance, Wealth tax and Excise duty are not applicable to the
Company.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Income tax,
Sales tax, Service tax, Customs duty and other material statutory dues
were in arrears as at 31 March 2011 for a period of more than six
months from the date they became payable. As informed to us the
provisions of Investor Education and Protection Fund, Employee' State
Insurance, Wealth tax and Excise duty are not applicable to the
Company.
(c) Further, there were no dues on account of Cess under Section 441A
of the Act, since the date from which the aforesaid Section comes into
force has not yet been notified by the Central Government.
(d) According to the information and explanations given to us, there
are no dues of Income tax, Sales tax, Service tax, Customs duty and
Cess which have not been deposited with the appropriate authorities on
account of any dispute. As informed to us the provisions of Excise duty
are not applicable to the Company.
x. Subject to the matter specified in paragraph 4(vi) of our report
even dated, the Company does not have any accumulated losses at the end
of the financial year and has not incurred cash losses during the
financial year and in the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, except for the delays stated in Appendix 1 attached, the
Company has not defaulted in repayment of dues to its bankers or to any
financial institutions.
xii. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii. In our opinion and according to the information and explanations
given to us, the Company is not a chit fund/ nidhi/ mutual fund/
society.
xiv. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, clause 4(xiv) of the Order is not
applicable.
xv. According to the information and explanation given to us, the
Company has not given any guarantee for loan taken by others from banks
and financial institutions.
xvi. In our opinion and according to the information and explanations
given to us and on the basis of our examination of the books of
account, the term loans obtained by the Company were applied for the
purpose for which such loans were obtained.
xvii. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we are of
the opinion that no funds raised on short-term basis have been used for
long term investment.
xviii. The Company has not made any preferential allotment of shares to
companies/ firms/ parties covered in the register maintained under
Section 301 of the Companies Act, 1956.
xix. The Company did not have any outstanding debentures during the
year.
xx. There are no unutilised amounts of money raised by public issues
and thus paragraph 4(xx) of the Order is not applicable.
xxi. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
for B S R and Co. for Visweswara Rao & Associates
Chartered Accountants Chartered Accountants
Firm registration No. : 128901W Firm registration No. : 005774S
Zubin Shekary A. S.Naidu
Partner Partner
Membership No: 48814 Membership No: 208582
Place : Hyderabad Place : Hyderabad
Date : 11 July 2011 Date : 11 July 2011
Details of defaults in repayment of principal on term loans to
financial institutions.
Name Amount Due date Payment date Delay Days
SREI Infrastructure
Finance Limited 4,955,060 30-Apr-10 29-Sep-10 152
SREI Infrastructure
Finance Limited 5,180,290 31-Jul-10 29-Dec-10 151
SREI Infrastructure
Finance Limited 4,966,210 31-Oct-10 30-Mar-11 150
SREI Infrastructure
Finance Limited 5,123,425 31-Jan-11 31-Mar-11 59
Details of defaults in payment of interest on term loans to financial
institutions.
Name Amount Due date Payment date Delay Days
SREI Infrastructure
Finance Limited 890,457 30-Apr-10 29-Sep-10 152
SREI Infrastructure
Finance Limited 814,809 31-Jul-10 29-Dec-10 151
SREI Infrastructure
Finance Limited 732,006 31-Oct-10 30-Mar-11 150
SREI Infrastructure
Finance Limited 569,194 31-Jan-11 31-Mar-11 59
Details of defaults in repayment of principal on term loans to banks.
Name Amount Due date Date of payment Delay Days
State Bank of India
(Kolkata) Corporate
loan 1,800,000 1-Jun-10 3-Jul-10 32
State Bank of India
(Kolkata) Corporate
loan 1,800,000 1-Jul-10 19-Jul-10 18
State Bank of India
(Kolkata) Corporate
loan 1,800,000 1-Aug-10 3-Aug-10 2
State Bank of India
(Kolkata) Rupee loan 5,000,000 1-Jul-10 3-Jul-10 2
for B S R and Co. for Visweswara Rao & Associates
Chartered Accountants Chartered Accountants
Firm registration No. : 128901W Firm registration No. : 005774S
Zubin Shekary A.S.Naidu
Partner Partner
Membership No: 48814 Membership No: 208582
Place: Hyderabad Place: Hyderabad
Date : 11 July 2011 Date: 11 July 2011
Mar 31, 2010
1 We have audited the attached balance sheet of Suryachakra Power
Corporation Limited ("the Company") as at 31 March 2010, the profit and
loss account and the cash flow statement of the Company for the year
ended on that date, annexed thereto. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2 We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3 As required by the Companies (Auditors Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Companies Act, 1956, we
enclose in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
4 Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(i) we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) in our opinion, proper books of account as required by law have
been kept by the Company so far as appears
from our examination of those books; (iii) the balance sheet, profit
and loss account and cash flow statement dealt with by this report are
in agreement
with the books of account;
(iv) in our opinion, the balance sheet, profit and loss account and
cash flow statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
(v) on the basis of written representations received from the
directors, as on 31 March 2010, and taken on record by the Board of
Directors, none of the Directors is disqualified as on 31 March 2010
from being appointed as a Director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
(vi) In relation to the matter set out in note 2 of the Schedule 21 of
the financial statements, pending the final agreement with the Andaman
& Nicobar Administration (A & N Administration), we are unable to
comment on the extent of ultimate recoverability of Rs. 47,835,455
billed during the year ended 31 March 2010 (previous year: Rs.
5,688,795) and the total receivables as on 31 March 2010 of Rs.
118,640,315 (previous year: Rs. 70,804,860) which are subject to
confirmation by the A&N administration. Furthermore, the Company has
accrued interest on the above cumulative billings of Rs.28,503,384 for
the year ended 31 March 2010 (previous year: Rs. 21,032,797) which is
subject to confirmation by the A & N Administration. The total amount
of interest accrued on such disagreements which are subject to
confirmations by the A&N Administration is Rs. 83,852,364 (previous
year: Rs. 55,348,980). The consequential impact of the above matter on
the profit for the year ended 31 March 2010 and the retained earnings
at 31 March 2010 is indeterminable; and
(vii) in our opinion and to the best of our information and according
to the explanations given to us, subject to the matter set out at
paragraph (vi) above, the said accounts give the information required
by the Companies Act, 1956, in the manner so required and give a true
and fair view in conformity with the accounting principles generally
accepted in India:
a. in the case of the balance sheet, of the state of affairs of the
Company as at 31 March 2010;
b. in the case of the profit and loss account, of the profit for the
year ended on that date; and
c. in the case of the cash flow statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
The Annexure referred to in the auditors report to the members of
Suryachakra Power Corporation Limited ("the Company") for the year
ended 31 March 2010. We report that:
i. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which all the fixed assets are verified every year. In
our opinion, the periodicity of physical verification is reasonable
having regard to the size of the Company and the nature of its assets.
No material discrepancies were noted on such verification.
(c) Fixed assets disposed off during the year were not substantial and
therefore do not affect the going concern assumption.
ii. (a) The inventory consisting of raw materials, stores, spares and
consumables have been physically verified by the management during the
year. In our opinion, the frequency of such verification is reasonable.
(b) In our opinion, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
iii. (a) The Company has granted interest free loans to three companies
covered in the register maintained under Section 301 of the Companies
Act, 1956. The maximum amount outstanding during the year was Rs.
151,380,810 and the year-end balance of such loans was Rs. Nil.
(b) In our opinion, terms and conditions on which loans have been
granted to companies, firms or other parties listed in the register
maintained under Section 301 of the Companies Act, 1956 are not, prima
facie, prejudicial to the interest of the Company.
(c) In case of loans granted to companies, firms and other parties
listed in the register maintained under Section 301, the terms of
arrangement do not stipulate any repayment schedule for principal,
which are repayable on demand.
(d) Such loans have been repaid by the year end and accordingly there
are no overdue amounts of more than Rupees one lakh in respect of
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956.
(e) The Company has taken unsecured loan from a company covered in the
register maintained under Section 301 of the Companies Act, 1956. The
maximum amount outstanding during the year was Rs.101,428,247 and the
year-end balance of such loan was Rs. Nil.
(f) In our opinion, the rate of interest and other terms and conditions
on which such loan have been taken by the Company are not, prima facie,
prejudicial to the interest of the Company.
(g) The Company has been regular in repaying the principal amounts and
interest, as stipulated.
iv. In our opinion and according to the information and explanations
given to us, and having regard to the explanation that purchases of
certain items of inventories are for the Companys specialized
requirements and suitable alternative sources are not available to
obtain comparable quotations, there is an adequate internal control
system commensurate with the size of the Company and the nature of its
business with regard to purchase of inventories and fixed assets and
with regard to the sale of goods. In our opinion and according to the
information and explanation given to us, there is no continuing failure
to correct major weaknesses in internal control system.
v. (a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that section.
(b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred to in point (a) above and exceeding the value of
Rs.5 lakh with any party during the year, have been made at prices
which are reasonable having regard to the prevailing market prices at
the relevant time.
vi. The Company has not accepted any deposits from the public.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules prescribed by the Central Government for
maintenance of cost records under Section 209(1) (d) of the Companies
Act, 1956, and are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. However, we have
not made a detailed examination of the records.
ix. (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, the
Company has been generally regular in depositing amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Service tax, Customs duty and
other material statutory dues except that there were significant delays
in payment of Income tax and Sales tax. As informed to us the
provisions of Investor Education and Protection Fund, Employee State
Insurance, Wealth tax and Excise duty are not applicable to the
Company.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Income tax,
Sales tax, Service tax, Customs duty and other material statutory dues
were in arrears as at 31 March 2010 for a period of more than six
months from the date they became payable. As informed to us the
provisions of Investor Education and Protection Fund, Employee State
Insurance, Wealth tax and Excise duty are not applicable to the
Company.
(c) Further, there were no dues on account of Cess under Section 441A
of the Act, since the date from which the aforesaid section comes into
force has not yet been notified by the Central Government.
(d) According to the information and explanations given to us, there
are no dues of Income tax, Sales tax, Service tax, Customs duty and
Cess which have not been deposited with the appropriate authorities on
account of any dispute. As informed to us the provisions of Excise duty
are not applicable to the Company.
x. Subject to the matter specified in paragraph 4(vi) of our report
even dated, the Company does not have any accumulated losses at the end
of the financial year and has not incurred cash losses during the
financial year and in the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, except for the dues stated below, the Company has not
defaulted in repayment of dues to its bankers or to any financial
institutions.
Bank/Financial
Institutions Period Amount
(In INR) Delay
(in days)
SREI Infrastructure
Finance Limited Quarter ended
31 March 2009 5,607,384 182
SREI Infrastructure
Finance Limited Quarter ended
30 June 2009 6,306,191 184
SREI Infrastructure
Finance Limited Quarter ended
30 September 2009 6,023,657 180
SREI Infrastructure
Finance Limited Quarter ended
31 December 2009 5,831,462 90
xii. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii. In our opinion and according to the information and explanations
given to us, the Company is not a chit fund/ nidhi/ mutual fund/
society.
xiv. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, clause 4(xiv) of the Order is not
applicable.
xv. According to the information and explanation given to us, the
Company has not given any guarantee for loan taken by others from banks
and financial institutions.
xvi. In our opinion and according to the information and explanations
given to us and on the basis of our examination of the books of
account, the term loans obtained by the Company were applied for the
purpose for which such loans were obtained.
xvii. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we are of
the opinion that no funds raised on short-term basis have been used for
long term investment.
xviii. The Company has not made any preferential allotment of shares to
companies/ firms/ parties covered in the register maintained under
Section 301 of the Companies Act, 1956.
xix. The Company did not have any outstanding debentures during the
year.
xx. There are no unutilized amounts of money raised by public issues
and thus paragraph 4(xx) of the Order is not applicable.
xxi. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
for B S R and Associates for Visweswara Rao & Associates
Chartered Accountants Chartered Accountants
Firm registration No. : 128901W Firm registration No. : 005774S
Zubin Shekary A.S.Naidu
Partner Partner
Membership No: 48814 Membership No: 208582
Place: Hyderabad Place: Hyderabad
Date: 28 May 2010 Date: 28 May 2010
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