Mar 31, 2015
We have audited the Accompanying financial statements of Surana
Corporation Limited which comprise of Balance sheet as at 31st March,
2015, the Profit and loss statement and the Cash flow for the year then
ended and summary of significant accounting policies and explanatory
information.
Management's responsibility for the standalone financial statements
The Management is responsible for the matters stated in sec(134)(5) of
Companies Act 2013 with respect to the preparation of these standalone
financial statements that give a true and fair view of financial
position, financial performance of the company in accordance with the
accounting principles generally accepted in including the Accounting
Standards specified under sec(133) of the Act read with rule 7 of
companies (accounts) Rules, 2014. The respective Board of Directors of
the companies are responsible for maintenance of adequate accounting
records in accordance with the provisions of the Act for safe guarding
the assets of the company and for preventing and detecting frauds and
other irregularities; the 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
misstatements, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken in to 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
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Sec 143(10) of the Act. Those Standards require that we
comply with ethical requirement 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 auditors' judgments, 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 & fair view in
order to design audit procedures that are appropriate in the
circumstance, but not for the purpose of expressing an opinion on
whether the Company has an adequate internal financial control systems
over financial reporting in place and the operating effectiveness of
such controls. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, 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 audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in manner so required and give a true and fair view
in conformity with the according principles generally accepted in India
of the state of affairs of the Company as at March 31, 2015, its Profit
/Loss and its Cash Flow for the year ended on that date.
Emphasis of Matter
The accumulated losses at the end of the financial year are more than
fifty percent of its net worth. The entire net worth of the Company has
eroded due to the Loss. The Company has incurred both Non cash Loss and
Cash Loss during the financial year covered by our audit. The cash Loss
is due to the Financial expenditure on the Loans taken. As per AS - 1,
the going concern concept of the company is doubtful. However as per
the Management statement all the financial loss of the company has been
converted into long term loans as per the CDR package approved by the
banks. Hence the company is confident of reviving its business.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS:
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order"), issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
2. As required by section 143(3) of the Act, we report, to the extent
applicable, 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 of the aforesaid financial statement.
(b) In our opinion, proper books of account as required by law relating
to preparation of the aforesaid financial statements have been kept so
far as it appears from our examination of those books and the reports
of the other auditors.
(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
relevant books of account maintained for the purpose of preparation of
the financial statements
(d) In our opinion, the aforesaid 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) On the basis of the written representations received from the
directors of the Company, none of the directors of the Group Companies,
is disqualified as on 31st March 2015 from being appointed as a
director in terms of section 164 (2) of the Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and
Auditor's) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us:
(i) Adequate provisions have been made on pending litigations which
would impact the financial position of the company.
(ii) The Company did not have any material foreseeable losses on
long-term contracts including derivative contracts.
(iii) There were no amounts which were required to be transferred to
the investor Education and Protection Fund by the Company
The Annexure referred to in paragraph 1 of the our report of even date
to the members of M/s Surana Corporation limited on the accounts of the
Company for the year ended 31st March, 2015.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no materials discrepancies were
noticed on such verification.
(c) During the year the company had sold 5 of its windmill assets for
Rs. 5.0 Crores
2. (a) As explained to us, Inventories have been physically verified
during the year by the management at reasonable intervals.
(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 on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of
inventories by the management as compared to records.
3. According to the information and explanations given to us and on
the basis of our examination of the books of account, the company has
not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 189 of
the Companies Act, 2013. Consequently the provisions of clauses iii (a)
and iii (b) of the order are not applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories and fixed assets and for the
sale of goods and services. During the course of our audit, no major
instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. The company has not accepted and deposits hence the directives
issued by Reserve Bank of India and provisions of sections 73 to 76 or
any other relevant provisions of the Companies Act, 2013 are not
applicable to the Company.
6. The central government has not specified maintenance of cost
records for the company under sub  section (1) of section 148 of the
Companies Act 2013.
7. (a) The Company is 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 to the extent applicable and any other
statutory dues with the appropriate authorities except on few occasions
where minor irregularities were noticed. According to the information
and explanations given to us there were no outstanding statutory dues
as on 31st March, 2015 for a period of more than six months from the
date they became payable.
(b) The company has no dues of Income Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty; Value added Tax or cess which has not been
deposited on account of any disputes.
(i) The Company has disputed the dues of Customs duty amounting to
Rs.13,539,725/- (F.Y.2005-06) and the case is pending before CESTAT Goa
(c) The Company has no amount which is required to be transferred to
investor education and protection fund in accordance with the relevant
provisions of the Companies Act 2013.
8. The Company has defaulted in repayments of dues to a financial
institution bank or debenture holders.
9. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
10. The term loan raised by Company was applied for the purpose for
which it has been raised.
11. Based on the audit procedures performed and the information and
explanations given to us, we report that no 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 C.S.P Jain & Co
Chartered Accountants
FRN No: 001227S
-Sd/-
C.S. PRITHVIRAJ JAIN
Proprietor
Membership No.: 115219
Chennai
30th May, 2015
Mar 31, 2014
We have audited the attached Balance Sheet of M/S SURANA CORPORATION
LIMITED (the company''), Chennai as at 31st March 2014, the Profit and
Loss Account and Cash Flow Statement for the year ended on that date
annexed thereto, which we have signed under reference to this report.
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.
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.
As required by the Companies (Auditor''s Report) Order, 2003(''the
order''), as amended by the companies (Auditor''s Report) (Amendment)
Order, 2004, issued by the Central Government of India in terms of sub
section (4A) of section 227 of ''The Companies Act, 1956'' (''the
Act'') and on the basis of such checks of the books and records of the
company as we considered appropriate and according to the information
and explanations given to us, we give in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred in above paragraphs,
we report that:-
a) 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;
b) 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;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) 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 Act;
e) On the basis of written representations received from the Directors,
as at 31st March 2014 and taken on record by the Board of Directors, we
report that none of the directors are disqualified as on 31st March
2014 from being appointed as a Director in terms of clause (g) of
sub-section (1) of Section 274 of the Act and ;
f) In our opinion, and to the best of our information and according to
the explanations given to us, they said financial statements together
with the notes thereon and attached thereto give in the prescribed
manner the information required by the Act 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 Profit and Loss Account, of the profit 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.
The Annexure referred to in our report to the members of Surana
Corporation Limited, Chennai - 14 for the year ended 31 March 2014, we
report that:
1. a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b. These fixed assets have been physically verified by the management
at reasonable intervals and no material discrepancies were noticed on
such verification.
2.
a. According to the information & explanations given to us the company
has conducted physical verification of inventory at reasonable
intervals.
b. The procedures of physical verification of inventory followed by the
management is 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 and no
material discrepancies were noticed on physical verification.
3. According to the information & explanations given to us the company
has not taken / granted any interest free unsecured loans from
companies covered in the register maintained under Section 301 of the
Act hence the provisions of Para 4(iii) of the Companies (Auditors
Report) Order 2003 is not applicable.
4. According to information and explanations given to us and in our
opinion there is an adequate internal control procedure commensurate
with the size of the company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods.
5.
a. In our opinion and according to the explanations and information
given to us, the company is maintaining the register in pursuance of
Section 301 of the Act for the transactions that need to be entered.
b. Each of these transactions has been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. The company has not accepted deposits from the public.
7. In our opinion and according to explanations and information given
to us, the company has an internal audit system commensurate with its
size and nature of its business.
8. In our opinion, the Company is not required to maintain the cost
accounts and records prescribed by the Central Government under clause
(d) of sub section (1) of section 209 of the Companies Act 1956,
9.
a. The Company is regular in depositing undisputed statutory dues
including Provident Fund, Investor education and protection fund, ESI,
Income Tax, Sales Tax, Wealth Tax, Customs Duty, Excise Duty, and Cess
and any other statutory dues with the appropriate authorities.
b. The company has disputed the dues of Customs duty amounting to Rs
13,539,725/- and the case is pending before CESTAT.
Name of the Statute Nature of Dues Amount Period to which the
amount relates
Customs & Central Customs duty 13,539,725/- 2005-06
Excise Act relates to Steel
division of
erstwhile company
since amalgamated
with this company.
Name of the Statute Forum where the dispute is pending
Customs & Central Excise Act CESTAT- Goa
10. The company has neither accumulated losses at the end of the
financial year nor incurred any cash losses during the year and
immediately preceding financial year.
11. The Company has not defaulted in repayment of dues to a financial
institution or bank.
12. The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The nature of the activities of the company does not attract any
special statute applicable to the Chit Fund and Nidhi / Mutual benefit
fund / Societies.
14. The company has maintained proper records of the transaction and
contracts of the investments dealt in by the company and timely entries
have
been made therein. The investments made by the company are held in its
own name except to the extent of the exemption u/s.49 of the Act.
15. The Company has not given any guarantee for loans taken by others
from bank or financial institutions, the terms and conditions whereof
are prejudicial to the interest of the company.
16. The term loans raised by the company were applied for the purpose
for which they were raised.
17. According to the explanation and information provided, the company
has not utilized the short- term funds for long term investment and
vice versa.
18. According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301
19. The company has not issued any debentures during the year.
20. According to information and explanations given to us, no frauds on
or by the company has been noticed or reported during the year.
However, a case has been registered against the company by CBI ACB,
Chennai on the basis of the complaint received from MMTC Limited,
Regional Office, Chennai for Rs.18.00 crores of dues payable to them.
The case is under investigation. The company during previous year had
fully provided for an ascertained amount of Rs.28,38,52,800/- towards
the said claim of Rs.18.00 crores along with interest at the rate of
18% for a period of 3 years. During the year, as the final liability
has been identified @Rs.13.86 crores by CBI in their charge-sheet, the
excess provision of Rs.14.53 has been written back.
For C.S .P JAIN & CO.,
Chartered Accountants
FRN No.001227S
C.S PRITHIVRAJ JAIN
Place : Chennai Proprietor
Date : 27.05.2014 Membership No. 11529
Mar 31, 2013
We have audited the attached Balance Sheet of M/S SURANA CORPORATION
LIMITED(''the company''), Chennai as at 31st March 2013, the Profit and
Loss Account and Cash Flow Statement for the year ended on that date
annexed thereto, which we have signed under reference to this report.
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.
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.
As required by the Companies (Auditor''s Report) Order, 2003(''the
order''), as amended by the companies (Auditor''s Report) (Amendment)
Order, 2004, issued by the Central Government of India in terms of sub
section (4A) of section 227 of ''The Companies Act, 1956'' (''the Act'')
and on the basis of such checks of the books and records of the company
as we considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred in above paragraphs,
we report that:-
a) 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;
b) 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;
c) The Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report are in agreement with the
books of account;
d) 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 Act;
e) On the basis of written representations received from the Directors,
as at 31st March 2013 and taken on record by the Board of Directors, we
report that none of the directors are disqualified as on 31st March
2013 from being appointed as a Director in terms of clause (g) of
sub-section (1) of Section 274 of the Act and ;
f) In our opinion, and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon and attached thereto give in the prescribed
manner the information required by the Act 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, 2013.
(ii) In the case of the Profit and Loss Account, of the profit 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.
The Annexure referred to in our report to the members of Surana
Corporation Limited, Chennai  14 for the year ended 31 March 2013, we
report that:
1.
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b. These fixed assets have been physically verified by the management
at reasonable intervals and no material discrepancies were noticed on
such verification.
c. During the year Windmills of Rs.30,62,46,301/- (cost) having
Written Down Value of Rs.12,65,25,277/-were transferred to Subsidiary
Companies for converting them under group captive scheme to augment
revenues. This transfer has resulted in a Book Loss on sale of assets
of Rs.7,70,25,277/- 2.
a. According to the information & explanations given to us the company
has conducted physical verification of inventory at reasonable
intervals.
b. The procedures of physical verification of inventory are followed
by the management is 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 and no
material discrepancies were noticed on physical verification.
3. According to the information & explanations given to us the company
has not taken / granted any interest free unsecured loans from
companies covered in the register maintained under Section 301 of the
Act hence the provisions of para 4(iii) of the Companies (Auditors
Report) Order 2003 is not applicable.
4. According to information and explanations given to us and in our
opinion there is an adequate internal control procedure commensurate
with the size of the company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods.
5.
a. In our opinion and according to the explanations and information
given to us, the company is maintaining the register in pursuance of
Section 301 of the Act for the transactions that need to be entered.
b. Each of these transactions has been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. The company has not accepted deposits from the public.
7. In our opinion and according to explanations and information given
to us, the company has an internal audit system commensurate with its
size and nature of its business.
8. In our opinion, the Company is not required to maintain the cost
accounts and records prescribed by the Central Government under clause
(d) of sub section (1) of section 209 of the Companies Act 1956,
9.
a. The Company is regular in depositing undisputed statutory dues
including Provident Fund, Investor education and protection fund, ESI,
Income Tax, Sales Tax, Wealth Tax, Customs Duty, Excise Duty, and Cess
and any other statutory dues with the appropriate authorities.
b. The company has disputed the dues of Customs duty amounting to Rs
13,539,725/- and the case is pending before CESTAT.
Period to Forum
Name of which the where the
Nature of dues Amount
the Statute amount dispute is
relates pending
Customs & Customs duty 13,539,725/- 2005-06 CESTAT -
Central relates to
Steel Goa
Excise Act division of
erstwhile
company since
amalgamated
with this
company.
10.The company has neither accumulated losses at the end of the
financial year nor incurred any cash losses during the year and
immediately preceding financial year.
11.The Company has not defaulted in repayment of dues to a financial
institution or bank.
12.The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13.The nature of the activities of the company does not attract any
special statute applicable to the Chit Fund and Nidhi / Mutual benefit
fund / Societies.
14.The company has maintained proper records of the transaction and
contracts of the investments dealt in by the company and timely entries
have been made therein. The investments made by the company are held in
its own name except to the extent of the exemption u/s.49 of the Act.
15.The Company has not given any guarantee for loans taken by others
from bank or financial institutions, the terms and conditions whereof
are prejudicial to the interest of the company.
16.The term loans raised by the company were applied for the purpose
for which they were raised.
17.According to the explanation and information provided, the company
has not utilized the short- term funds for long term investment and
vice versa.
18.According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301
19.The company has not issued any debentures during the year.
20.The company has not raised any amount by way of issue of shares
during the year. The company has allotted 25,00,000 shares during the
year for funds received through preferential allotment in financial
year 2011-2012.
21.According to information and explanations given to us, no frauds on
or by the company has been noticed or reported during the year. MMTC is
litigating and claiming old un-reconciled dues amounting to Rs.18.43
crores and interest thereon in various legal forums and departments. It
was also instrumental in foisting a complaint with CBI (ACB), Chennai,
which conducted searches and have seized accounted hypothecated stock
in trade worth Rs.125 crores on 20.06.2012. Company in terms of
significant accounting policy on Provisioning under Accounting Standard
 29 has prudently provided for an amount of Rs.28,38,52,800/- towards
this ascertained liability.
For C.S .P JAIN & CO.,
Chartered Accountants
FRN No.001227S
Place: Chennai C.S PRITHIVRAJ JAIN
Date: 30.04.2013 Proprietor
M. No 11529
Mar 31, 2012
We have audited the attached Balance Sheet of M/S SURANA CORPORATION
LIMITED('the company ), Chennai as at 31st March 2012, the Profit and
Loss Account and Cash Flow Statement for the year ended on that date
annexed thereto, which we have signed under reference to this report.
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.
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.
As required by the Companies (Auditor's Report) Order, 2003('the
order'), as amended by the companies (Auditor's Report) (Amendment)
Order, 2004, issued by the Central Government of India in terms of sub
section (4A) of section 227 of The Companies Act, 1956' ('the Act')
and on the basis of such checks of the books and records of the company
as we considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred in above paragraphs,
we report that:-
a) 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;
b) 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;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) 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 Act;
e) On the basis of written representations received from the Directors,
as at 31st March 2012 and taken on record by the Board of Directors, we
report that none of the directors are disqualified as on 31st March
2012 from being appointed as a Director in ' terms of clause (g) of
sub-section (1) of Section 274 of the Act and ;
f) In our opinion, and to the best of our information and according to
the explanations given to us, they said financial statements together
with the notes thereon and attached thereto give in the prescribed
manner the information required by the Act 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, 2012.
(ii) In the case of the Profit and Loss Account, of the profit 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.
The Annexure referred to in our report to the members of Surana
Corporation Limited, Chennai - 14 for the year ended 31 March 2012, we
report that:
1. a. The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b. These fixed assets have been physically verified by the management
at reasonable intervals and no material discrepancies were noticed on
such verification.
c. During the year Fixed assets of Rs.114,906,608/ -(cost) were
scrapped resulting in Loss on sale of assets of Rs.54,707,114/-
2. a. According to the information & explanations given to us the
company has conducted physical verification of inventory at reasonable
intervals.
b. The procedures of physical verification of inventory are followed
by the management is 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 and no
material discrepancies were noticed on physical verification.
3. According to the information & explanations given to us the company
has not taken / granted any interest free unsecured loans from
companies covered in the register maintained under Section 301 of the
Act hence the provisions of Para 4(iii) of the Companies (Auditors
Report) Order 2003 is not applicable.
4. According to information and explanations given to us and in our
opinion there is an adequate internal control procedure commensurate
with the size of the company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods.
5. a. In our opinion and according to the explanations and information
given to us, the company is maintaining the register in pursuance of
Section 301 of the Act for the transactions that need to be entered.
b. Each of these transactions has been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. The company has not accepted deposits from the public.
7. In our opinion and according to explanations and information given
to us, the company has an internal audit system commensurate with its
size and nature of its business.
8. In our opinion, the Company is not required to maintain the cost
accounts and records prescribed by the Central Government under clause
(d) of sub section (1) of section 209 of the Companies Act 1956,
9. a. The Company is regular in depositing undisputed statutory dues
including Provident Fund, Investor education and protection fund, ESI,
Income Tax, Sales Tax, Wealth Tax, Customs Duty, Excise Duty, and Cess
and any other statutory dues with the appropriate authorities.
b. The company has disputed the claim of Customs duty amounting to Rs
13,539,725/- and the case is pending before CESTAT.
Name of Nature of dues Amount Period to Forum where the
Statute which the the dispute
amount is pending
relates
Customs &
Central
Excise Act Customs duty 13,539,725/- 2005-06 CESTAT-Goa
10. The company has neither accumulated losses at the end of the
financial year nor incurred any cash losses during the year and
immediately preceding financial year.
11. The Company has not defaulted in repayment of dues to a financial
institution or bank.
12. The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The nature of the activities of the company does not attract any
special statute applicable to the Chit Fund and Nidhi / Mutual benefit
fund / Societies.
14. The company has maintained proper records of the transaction and
contracts of the investments dealt in by the company and timely entries
have been made therein. The investments made by the company are held in
its own name except to the extent of the exemption u/s.49 of the Act.
15. The Company has not given any guarantee for loans taken by others
from bank or financial institutions, the terms and conditions whereof
are prejudicial to the interest of the company.
16. The term loans raised by the company were applied for the purpose
for which they were raised.
17. According to the explanation and information provided, the company
has not utilized the short- term funds for long term investment and
vice versa.
18. According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301
19. The company has not issued any debentures during the year.
20. The company has raised an amount of Rs.750,000,000/- by way of
Preferential Allotment during the year. The amount raised has been
utilized for repayment of ICD's to the tune of Rs.522,329,636/ - and
the balance has been used for "working capital purposes.
21. According to information and explanations given to us, no frauds
on or by the company has been noticed or reported during the year.
For C.S .P JAIN & CO.,
Chartered Accountants
FRN NO.001227S
C.S PRITHIVRAJ JAIN
Proprietor M. No 11529
Place: Chennai
Date: 22.05.2012
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