iifl-logo-icon 1

Surana Corporation Ltd Auditor Reports

0.75
(0.00%)
Sep 17, 2018|11:10:01 AM

Surana Corporation Ltd Share Price Auditors Report

TO THE MEMBERS OF SURANA CORPORATION LIMITED REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of Surana Corporation Limited (‘the Company), which comprise the Balance Sheet as at March 31, 2017, and the Statement of Profit and Loss and the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.

Managements responsibility for the Financial Statements

The Companys Board of Directors is responsible for the matters stated in section 134 (5) of the Companies Act, 2013 ( "the Act") with respect to 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 generally accepted Accounting principles accepted in India, including the Indian accounting standards (Ind AS) specified under section 133 of the act, read with rule 7 of the companies (Accounts) Rules, 2014.

This responsibility also includes the 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 frauds and other irregularities; selection and application of appropriate accounting policies; making judgment and estimates that are reasonable and prudent; and design, implementation and maintenance of internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of financial statements that give a true and fair view and are free from material misstatement, 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 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 there under.

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 disclosures in the financial statements. The procedures selected depend on the auditors 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 control relevant to the Companys preparation of the financial statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by companys 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 audit opinion on the financial statements.

Basis for Qualified Opinion:

a. The Consortium of Lenders has exited from the CDR package during the year and as a result, repayment of loan should be as per the original agreements entered with such lender banks. However, in the absence of the relevant details and information with respect to calculation of interest including penal interest, we are unable to comment upon the impact of such exit on the carrying amount of interest expense and loan liability for the financial year ended March 31,2017 and the consequential impact on the financial results. The Company has not provided for the interest and the penal interest on certain borrowings for the year ended March 31,2017 which is estimated at Rs. 4,697.57 lakhs.

b. The Company has considered trade receivables outstanding for more than 6 months of Rs. 24,936.11 lakhs and long term trade receivables of Rs. 35,892.94lakhs, as good and recoverable. However, we were unable to confirm or verify, by alternative means, balances of such trade receivables and we are unable to comment on the adjustments that may be required as at March 31, 2017.

c. Had provision been made with respect to the above interest and receivables in the books of accounts, the net loss would have been increased by 65,525.64 lakhsand consequently net- worth would have been reduced by Rs. 65,525.64lakhs.

d. The Company has not complied with the requirements of Ind AS-109 "Financial Instruments" in terms of measurement of carrying values of the financial instruments as at March 31, 2017 and the corresponding figures as at March 31, 2016 and the disclosure requirements of its financial instruments as specified by Ind AS-107 "Financial Instruments: Disclosures". In the absence of these information, we are unable to comment on the adjustments that may be required to the carrying values of the financial instruments.

Opinion:

In our opinion and to the best of our information and according to the explanation given to us, except for the effects of matters as described in the Basis for Qualified Opinion paragraph as above, the aforesaid Financial Statements give the information required by the Actin 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, 2017, their loss, cash flows and statement of changes in equity for the year ended on that date.

Emphasis of Matter

We draw attention to Note no 39, the Company has incurred net loss of Rs. 31,926.64 lakhs during year ended March 31, 2017 and as on that date, the Companys current liabilities exceeded its current assets by Rs. 1,19,317.03 lakhs. These conditions along with other matters as set forth in the aforesaid note indicate the existence of a material uncertainty that may cast significant doubt about the Companys ability to continue as a going concern. However, the financial statements have been prepared under the assumption of going concern, considering the outcome of the consortium meeting dated December 14, 2016 and May 08, 2017, whereby the company has offered One Time Settlement of its liabilities with the consortium members, which has been considered by them for further approval. The ability of the company to continue as a going concern is significantly dependent on the further approval by consortium of lenders on the one time settlement offered by the company.

Our opinion is not qualified in respect of the above matter.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditors report) Order, 2016 ("The Order") issued by the Central

govemment of India in terms of subsection 11 of section 143 of the Act, We give in the "Annexure

A" a statement on the matter specified in paragraphs 3 & 4 of the order.

2. As required by section 143(3) of the Act, we report that:

a. We have sought and except for the effects / possible effects of the matter described in the Basis for Qualified Opinion paragraph aboveobtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit of the aforesaid Ind AS financial statements;

b. Except for the effects / possible effects of the matter described in the Basis for Qualified Opinion paragraph above in our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

c. The Balance Sheet, the Statement of Profit and Loss, the Statement of Cash Flows and Statement of Changes in Equity dealt with by this report are in agreement with the relevant books of account maintained for the purpose of preparation of the Ind AS financial statements.

d. Except for the effects / possible effects of the matter described in the Basis for Qualified Opinionparagraph above, in our opinion, the aforesaid Ind AS financial statements comply with the accountingstandards specified under Section 133 of the Act, read with relevant rules issued thereunder.

e. The matters described in the Basis for Qualified Opinion paragraph above, in our opinion, may havean adverse effect on the functioning of the Company.

f. On the basis of the written representations received from the directors of theCompany as on 31 March 2017 taken on record by the Board of Directors of the Company, none of the Directors of the Company incorporated in India are disqualified as on 31 March 2017 from being appointed as a Director of that company in terms of Section 164(2) of the Act.

g. with respect to the adequacy of the internal financial controls over financial reporting and the operating effectiveness of such controls, refer to our separate report in "Annexure A",

h. With respect to the other matters included in the auditors report and to best of our information and according to the explanation given to us.

1) Except for the effects / possible effects of the matter described in the Basis for Adverse Opinion paragraph above, the Ind AS financial statements disclose the impact of pending litigations on the financial position of the Company.

2) Except for the effects / possible effects of the matter described in the Basis for Adverse Opinion paragraph above provision has been made in the financial statement, as required under the applicable law or accounting Standards, for material foreseeable losses, if any, on long term contracts including derivative contracts.

3) There has been no delay in transferring amounts, required to be transferred, to the investors education and protection fund by the Company.

4) The Company has provided requisite disclosures in the financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016. However, we are unable to obtain sufficient and appropriate audit evidence to report on whether the disclosures are in accordance with books of account maintained by the Company and as produced to us by the Management - Refer Note 11.

For V D S R & Co,

Chartered Accountants F.R. No 001626S

Venkatesh Kamath .S.V PartnerMembership No : 202626

Place : Chennai.

Date : May 18, 2017

Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2024, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Securities Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

plus
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.

NCD Alert | IIFL Home Finance Limited NCDs 2024 (Tranche I)

Opening Date: Friday, 6th December, 2024 (Time 10.00 am). Effective Yield* of Upto 9.25% p.a

00

Days

:

20

Hours

:

56

Minutes

:

35

Seconds
Pre Apply Now

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp