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A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Notes to Accounts of Surana Telecom and Power Ltd.

Mar 31, 2025

21. Provisions, Contingent Liabilities and Contingent

Assets

a) Provisions

i) Provisions are recognised when the
Company has a present obligation (legal
or constructive) as a result of a past event,
it is probable that an outflow of resources
embodying economic benefits will be
required to settle the obligation and a reliable
estimate can be made of the amount of the
obligation.

Provisions are measured using the cash
flows estimated to settle the present
obligation and when the effect of time
value of money is material, Provisions are
determined by discounting the expected
future cash flows (representing the best
estimate of the expenditure required to settle
the present obligation at the balance sheet
date) at a pre-tax rate that reflects current
market assessments of the time value of
money and the risks specific to the liability.
The unwinding of the discount is recognized
as finance cost. Reimbursement expected
in respect of expenditure required to settle
a provision is recognised only when it is
virtually certain that the reimbursement will
be received.

ii) Decommissioning Liability

Restoration/ Rehabilitation/

Decommissioning cost are provided for in
the accounting period when the obligation
arises based on the NPV of the estimated
future cost of restoration to be incurred. It
includes the dismantling and demolition
of infrastructure and removal of residual
material. This provision is based on all
regulatory requirements and related
estimated cost based on best available
information.

iii) Onerous Contracts

Present obligations arising under onerous
contracts are recognized and measured
as provisions. An onerous contract is
considered to exist when a contract under
which the unavoidable costs of meeting the
obligations exceed the economic benefits
expected to be received from it.

b) Contingent Liabilities

A contingent liability is a possible obligation
that arises from past events whose existence
will be confirmed by the occurrence or nonÂ¬
occurrence of one or more uncertain future
events beyond the control of the Company
or a present obligation that is not recognized
because it is not probable that an outflow
of resources will be required to settle the
obligation. A contingent liability also arises
in extremely rare cases where there is a
liability that cannot be recognized because it
cannot be measured reliably. The Company
does not recognize a contingent liability but
discloses its existence in the standalone
financial statements.

c) Contingent Assets

Contingent assets usually arise from
unplanned or other unexpected events that
give rise to the possibility of an inflow of
economic benefits. Contingent Assets are
not recognized though are disclosed, where
an inflow of economic benefits is probable.

22. Operating Segment

The identification of operating segment is consistent with
performance assessment and resource allocation by the
chief operating decision maker. An operating segment is
a component of the Company that engages in business
activities from which it may earn revenues and incur
expenses including revenues and expenses that relate
to transactions with any of the other components of the
Company and for which discrete financial information is
available. All operating segment''s operating results are
reviewed regularly by the chief operating decision maker
to make decisions about resources to be allocated to
the segments and assess their performance.

23. Employee Share based payment

Equity- settled share-based payments to employees
are measured at the fair value of the employee stock
options at the grant date. The fair value of option at the
grant date is expensed over the vesting period with a
corresponding increase in equity as âEmployee Stock
Options Accountâ. In case of forfeiture of unvested
option, portion of amount already expensed is reversed.
In a situation where the vested option forfeited or
expires unexercised, the related balance standing to
the credit of the âEmployee Stock Options Accountâ are
transferred to the âGeneral Reserveâ. When the options
are exercised, the Company issues new equity shares
of the Company of ''1/- each fully paid-up. The proceeds
received and the related balance standing to credit of
the Employee Stock Options Account, are credited to
share capital (nominal value) and Securities Premium
Account.

24. Measurement of Fair Values

A number of the Company''s accounting policies and
disclosures require the measurement of fair values, for
both financial and non-financial assets and liabilities.
Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date. The fair value measurement is
based on the presumption that the transaction to sell
the asset or transfer the liability takes place either:

a) In the principal market for the asset or liability, or

b) In the absence of a principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market must be
accessible by the Company. The fair value of an asset
or a liability is measured using the assumptions that
market participants would use when pricing the asset
or liability, assuming that market participants act in
their economic best interest. A fair value measurement
of a non-financial asset takes into account a market
participant''s ability to generate economic benefits by
using the asset in its highest and best use or by selling
it to another market participant that would use the asset
in its highest and best use.

25. Non-Current Assets held for sale

The Company classifies non-current assets as held for
sale if their carrying amounts will be recovered principally
through as sale rather than through continuing use of
the assets and actions required to complete such sale
Indicate that it is unlikely that significant changes to the
plan to sell will be made or that the decision to sell will
be withdrawn. Also, such assets are classified as held
for sale only if the management expects to complete the
sale within one year from the date of classification. On-
current assets classified as held for sale are measured
at the lower of their carrying amount and the fair value
less cost to sell. Non-current assets are not depreciated
or amortized.

26. Events after Reporting date

Where events occurring after the Balance Sheet date
provide evidence of conditions that existed at the end
of the reporting period, the impact of such events is
adjusted within the financial statements. Otherwise,
events after the Balance Sheet date of material size or
nature are only disclosed.

27. Research and Development

Expenditure on research is recognized as an expense
when it is incurred. Expenditure on development which
does not meet the criteria for recognition as an intangible
asset is recognized as an expense when it is incurred.
Items of property, plant and equipment and acquired
Intangible Assets utilized for Research and Development
are capitalized and depreciated in accordance with the
policies stated for Property, Plant and Equipment and
Intangible Assets.

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

Provident fund is a defined contribution scheme and the company has no further obligation beyond the contribution made
to the fund. Contributions are charged to the Profit & Loss account in the year in which they accrue. Gratuity liability is a
defined benefit obligation and is based on the actuarial valuation done. The gratuity liability and the net periodic gratuity
cost is actually determined after considering discounting rates, expected long term return on plan assets and increase in
compensation level. All actuarial gain/ losses are immediately charged to the Profit & Loss account and are not deferred.

Factors used to identify the reportable segments.

The Company has following business segments, which are its reportable segments. These segments offer different
products and services and are managed separately because they require different technology and production process.
Operating segment disclosures are consistent with the Information.

The carrying amount of financial assets and financial liabilities measured at amortized cost in the financial statements are
a reasonable approximation of their fair values since the company does not anticipate that the carrying amount would be
significantly different from the values that would eventually be received or settled.

48. financial risk management objectives and policies

The Company''s principal financial liabilities other than derivatives comprise long-term and short-term borrowings, capital
creditors and trade and other payables. The main purpose of these financial liabilities is to finance the Company''s
operations. The Company''s principal financial assets other than derivatives include trade and other receivables, cash and
cash equivalents and deposits that derive directly from its operation.

The Company is exposed to market, credit, liquidity and regulatory risks. The Company''s senior management oversees
the management of these risks. The Board of Directors reviews and agrees policies for managing each of these risks,
which are summarised below :

A. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risk: commodity risk, interest rate risk and foreign
currency risk.

(i) Commodity Price Risk

Company is affected by the price volatility of certain commodities, primarily, Solar Module. Its operating
activities require the on-going purchase of these materials. The company has arrangement to pass-through
the increase/decrease in this material price through price variance clause in majority of the contract.

(ii) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rate
relates primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign
currency). Further, the Company has foreign currency risk on import of input materials, capital commitment
and also borrows funds in foreign currency for its business. The Company evaluates the impact of foreign
exchange rate fluctuations by assessing its exposure to exchange rate risks. Certain transactions of the
Company act as a natural hedge as a portion of both assets and liabilities are denominated in similar foreign
currencies, for the remaining exposers to foreign exchange risks, the Company adopts a policy of selective
hedging based on risk perception of management using derivative, whenever required, to mitigate or eliminate
the risks.

(iii) Interest Rate risk

The Company is exposed to interest rate risk on financial liabilities such as borrowings, both short-term and
long-term. It maintains a balance of fixed and floating interest rate borrowings and the proportion is determined
by current market interest rates, projected debt servicing capability and view on future interest rates.

B. Credit Risk

Financial Asset of the Company include trade receivables, employee advances and bank deposits which represents
Company''s maximum exposure to the credit risk.

in payment and other relevant factors. The Company''s exposure to credit risk is influence mainly by the individual
characteristics of each customer. However, management also considers the factors that may influence the credit
risk of its customer base, including default risk associated with the industry and country in which customers operate.
Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits
are defined in accordance with this assessment. With respect to other financial risk via loan and advances, deposit
with government, the credit risk is insignificant since the loans and advances are given to its employees only and
deposits are held with reputable banks. The credit quality of the financial assets is satisfactory, taking into account
the allowance for credit losses.

C. Regulatory Risks

he Company performance may be impacted due to change in Regulatory Environment. The Company is closely
monitoring the regulatory developments and risks thereof and proactively implementing course correction for proper
compliance commensurate with new regulatory requirements.

49. Capital Management

For the purpose of the Company''s capital management, capital includes issued equity capital, and all other equity
reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management
is to maximize the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders. The Company monitors capital using a gearing ratio, which is net debt divided by total capital
plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables,
less cash and cash equivalents.

51. Other Statutory Information

A. RELATIONSHIP WITH STRUCK OFF COMPANIES

The company do not have any transactions with company''s struck off under Section 248 of the Companies Act,
2013 or Section 560 of the Companies Act, 1956 during the year ended 31st March, 2025 (Previous year: Nil).

B. DISCLOSURE IN RELATION TO UNDISCLOSED INCOME

The company do not have any such transactions which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year ended 31st March, 2025 and also for the year ended 31st
March, 2024 in the tax assessments under Income Tax Act, 1961 (such as, search or survey or any other relevant
provisions of the Income Tax Act, 1961).

C. DETAILS OF BENAMI PROPERTY HELD

The Company do not hold any property under Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules
made thereunder, hence there are no proceedings against the company for the year ended 31st March, 2025 and
also for the year ended 31st March, 2024.

D. REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES (ROC)

The Company does not have any charges or satisfaction, which are yet to be registered with ROC beyond the
statutory period, during the year ended 31st March, 2025 and also during the year ended 31st March, 2024.

E. DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY

The company have not traded or invested in crypto currency or virtual currency during the year ended 31st March,
2025 and also during the year ended 31st March, 2024.

F. UTILISATION OF BORROWED FUND AND SHARE PREMIUM

The company have not advanced or loaned or invested funds to any other person(s) or entity (ies), including
foreign entities (intermediaries) with the understanding that the intermediary shall: (a) directly or indirectly lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (ultimate
beneficiaries) or (b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

The company have not received any fund from any person(s) or entity (ies), including foreign entities (funding party)
with the understanding (whether recorded in writing or otherwise) that the company shall: (a) directly or indirectly
lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party
(ultimate beneficiaries) or (b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

G. The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.

52. In respect of financial year commencing on or after 01^st April 2023, the Company has used accounting software for
maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated
throughout the year for all relevant transactions recorded in the software and the audit trail feature has not been tampered
with. Further, the audit trail has been and will be preserved by the company as per the statutory requirements for record
retention under Rule 11(g) of the Companies (Audit and Auditors) Rule, 2014 for the financial year ended 31^st March
2025.

53. Previous year''s figures have been regrouped and rearranged, wherever found necessary

Following changes has been done in the comparative period (as at March 31,2023) which is not material qualitatively and
quantitatively to the Company''s prior period financial statements.

(A) Re- classification in âBalance Sheetâ:

Borrowings (Current - "109.24 lacs) it was earlier shown under Current Liabilities are now shown under Non -
Current Liabilities being long term in nature for better presentation

As per our report of even date attached For and on behalf of the BOD of Surana Telecom and Power Ltd

For Luharuka & Associates
Chartered Accountants
Firm Reg No - 01882S

Arun Luharuka Narender Surana Advait Surana

Partner Managing Director Director

M. No. 021869 DIN:00075086 DIN:08971109

T.R. Venkataramanan Arcot Ganeshan Monisha

Place: Secunderabad CFO & WTD Company Secretary

Date: 20th May, 2025 DIN: 08749253 M. No. A75073

Mar 31, 2024

a) Term/rights attached to Equity Shares

The company has only one class of issued equity shares having a par value of Rs 1/- per share. Each shareholder is entitled to one vote per share. In the event of liquidation of the company. The holders of equity shares will be entitled to receive remaining assets of the company after distribution of all prefential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. Retained Earnings: Retained earnings comprise of net accumulated profit/(loss) of the Company, after declaration of dividend.

3. Capital Redemption Reserve: Capital Redemption Reserve was created on account of buy back of shares of the Company.

4. Revaluation Reserve: Revaluation reserve which are kept aside out of company''s profit to meet the future obligation

5. Central Subsidy: Central Subsidy which are kept aside out of company''s profit to meet the specific obligation

6. FVTOCI Equity Instruments : FVTOCI reserve created to set asisde the amount on account of fair value of equity instrument.

18(a) Term Loan from HDFC Bank Limitd has been prepaid during the year.

18(b) Vehicle loan from Kotak Mahindra Bank Limited is secured against hyphotication of vehicle. The loan has been taken during the financial year 2022-23 and is repayable in monthly installment of INR 5.08 lacs each. Accordingly, Installments due with in a year is INR 46.70 (Principal only) has been clasified under â Other Current Financial Liabilitiesâ The loan is repayable in 60 installments ending in November 2027.

18(c) Vehicle loan from HDFC Bank Limited is secured against hyphotication of vehicle. The loan has been taken during the financial year 2021-22 and is repayable in monthly installment of INR 0.24 lacs each. Accordingly, Installments due with in a year is INR 1.65 lacs (Principal only) has been clasified under â Other Current Financial Liabilitiesâ. The loan is repayable in 36 Installments ending in October 2024.

Notes:

20(a) Cash credit facilities from Scheduled Banks are secured by hypothecation of stock, trade receivables and first pari-passu charge on specific fixed assets of the company. Further, it has been guaranted by some of the Directors.The Company has taken loans against security of current assets and quarterly returns or statements of current assets filed by the Company with bank are in agreement with the books of accounts. It is repayable on demand.

Rate of Interest on the above loans is linked with Repo rate/ MCLR which is reset for every 3 months.

a) All the Trade payable are Unsecured

b) There are no disputed trade payables in the current and previous year.

c) Terms and conditions of the above financial liabilities:

Trade payables are non-interest bearing and are normally settled on 30-120 day terms.

d) No Debts due to Directors or other officers of the company or any of them either severally or jointly with any other person or debts due by firms or private companies respectively in which any director is a partner or a director or a member.

The carrying amount of financial assets and financial liabilities measered at amortised cost in the financial statements are a reasonable approximation of their fair values since the company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

35. In the opinion of Board of Directors and to the best of their knowledge and belief, the above disclosure pursuant to Securities Exchange Board Of India (Listing Obligation and Disclosure Requirement and Regulation 2015) and Section 186 of the Companies Act 2013.

46. Retirement and Other Employees Benefits

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

Provident fund is a defined contribution scheme and the company has no further obligation beyond the contribution made to the fund. Contributions are charged to the Profit & Loss account in the year in which they accrue. Gratuity liability is a defined benefit obligation and is based on the actuarial valuation done. The gratuity liability and the net periodic gratuity cost is actually determined after considering discounting rates, expected long term return on plan assets and increase in compensation level. All actuarial gain/ losses are immediately charged to the Profit & Loss account and are not deferred.

47. Segment Reporting

Factors used to identify the reportable segments.

The Company has following business segments, which are its reportable segments. These segments offer different products and services and are managed separately because they require different technology and production process. Operating segment disclosures are consistent with the Information.

48. financial risk management objectives and policies

The Company''s principal financial liabilities other than derivatives comprise long-term and short-term borrowings, capital creditors and trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets other than derivatives include trade and other receivables, cash and cash equivalents and deposits that derive directly from its operation.

The Company is exposed to market, credit, liquidity and regulatory risks. The Company''s senior management oversees the management of these risks. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below :

A. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: commodity risk, interest rate risk and foreign currency risk.

(i) Commodity Price Risk

Company is affected by the price volatility of certain commodities, primarily, Solar Module. Its operating activities require the on-going purchase of these materials. The company has arrangement to pass-through the increase/decrease in these material price through price variance clause in majority of the contract.

(ii) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rate relates primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign currency). Further, the Company has foreign currency risk on import of input materials, capital commitment and also borrow funds in foreign currency for its business. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. Certain transactions of the Company act as a natural hedge as a portion of both assets and liabilities are denominated in similar foreign currencies, for the remaining exposers to foreign exchange risks, the Company adopts a policy of selective hedging based on risk perception of management using derivative, whenever required, to mitigate or eliminate the risks.

(iii) Interest Rate risk

The Company is exposed to interest rate risk on financial liabilities such as borrowings, both short-term and long-term. It maintains a balance of fixed and floating interest rate borrowings and the proportion is determined by current market interest rates, projected debt servicing capability and view on future interest rates.

B. Credit Risk

Financial Asset of the Company include trade receivables, employee advances and bank deposits which represents Company''s maximum exposure to the credit risk.

With respect to credit exposure from customers, the Company has a procedure in place aiming to minimise collection losses. Credit Control team assesses the credit quality of the customers, their financial position, past experience in payment and other relevant factors. The Company''s exposure to credit risk is influence mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including default risk associated with the industry and country in which customers operate. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. with respect to other financial risk Viz loan and advances , deposit with government, the credit risk is insignificant since the loans and advances are given to its employees only and deposits are held with reputable banks. The credit quality of the financial assets is satisfactory, taking into account the allowance for credit losses.

C. Regulatory Risks

The Company performance may be impacted due to change in Regulatory Environment. The Company is closely monitoring the regulatory developments and risks thereof and proactively implementing course correction for proper compliance commensurate with new regulatory requirements.

D. Liquidity Risk

The company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank deposits and loans

49. Capital Management

For the purpose of the Company''s capital management, capital includes issued equity capital, and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximize the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents.

Debt = Non current borrowings Current Borrowings.

Equity = Equity Share capital Other Equity

a) Change in the Current ratio is due to decrease in the Current Liabilities due to Prepayment of Term Loan.

b) Change in Debt Equity ratio is due to Prepayments of Long Term borrowings

c) Change in Trade receivables ratio is due to faster realization of trade receivables.

51. Other Statutory Information

A. RELATIONSHIP WITH STRUCK OFF COMPANIES

The company do not have any transactions with company''s struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956 during the year ended 31st March, 2024 (Previous year: Nil).

B. DISCLOSURE IN RELATION TO UNDISCLOSED INCOME

The company do not have any such transactions which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year ended 31st March, 2024 and also for the year ended 31st March, 2023 in the tax assessments under Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

C. DETAILS OF BENAMI PROPERTY HELD

The Company do not hold any property under Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder, hence there are no proceedings against the company for the year ended 31st March, 2024 and also for the year ended 31st March, 2023.

D. REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES (ROC)

The Company do not have any charges or satisfaction, which are yet to be registered with ROC beyond the statutory period, during the year ended 31st March, 2024 and also during the year ended 31st March, 2023.

E. DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY

The company have not traded or invested in crypto currency or virtual currency during the year ended 31st March, 2024 and also during the year ended 31st March, 2023.

F. UTILISATION OF BORROWED FUND AND SHARE PREMIUM

The company have not advanced or loaned or invested funds to any other person(s) or entity (ies), including foreign entities (intermediaries) with the understanding that the intermediary shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (ultimate beneficiaries) or (b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

The company have not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the company shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or (b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

G. The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

52. Confirmation letters of majority of balances under the heads Trade Payables, Claims Recoverable, Loans & Advances, Trade Receivables and Deposits from and with various parties/ Government Departments have been sent but in number of cases such confirmation letters from the parties are yet to be received.

53. In respect of financial year commencing on or after 01^st April 2023, the Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software and the audit trail feature has not been tampered with and the audit trail has been and will be preserved by the company as per the statutory requirements for record retention

54. Previous year''s figures have been regrouped and rearranged, wherever found necessary

Following changes has been done in the comparative period (as at March 31, 2023) which is not material qualitatively and quantitatively to the Company''s prior period financial statements.

(A) Re- classification in âBalance Sheetâ:

Borrowings (Current - "109.24 lacs) it was earlier shown under Current Liabilities are now shown under Non -Current Liabilities being long term in nature for better presentation

Mar 31, 2023

22. Provisions, Contingent Liabilities and Contingent
Assets

a) Provisions

Provisions is measured using the cash flows
estimated to settle the present obligation
and when the effect of time value of money
is material, Provisions are determined by
discounting the expected future cash flows
(representing the best estimate of the
expenditure required to settle the present
obligation at the balance sheet date) at
a pre-tax rate that reflects current market

assessments of the time value of money
and the risks specific to the liability. The
unwinding of the discount is recognized
as finance cost. Reimbursement expected
in respect of expenditure required to settle
a provision is recognised only when it is
virtually certain that the reimbursement will
be received.

ii) Decommissioning Liability

Restoration/ Rehabilitation/ Decommissioning
cost are provided for in the accounting period
when the obligation arises based on the NPV
of the estimated future cost of restoration
to be incurred. It includes the dismantling
and demolition of infrastructure and removal
of residual material. This provision is based
on all regulatory requirements and related
estimated cost based on best available
information.

iii) Onerous Contracts

b) Contingent Liabilities

A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of
one or more uncertain future events beyond the
control of the Company or a present obligation
that is not recognized because it is not probable
that an outflow of resources will be required to
settle the obligation. A contingent liability also
arises in extremely rare cases where there is
a liability that cannot be recognized because it
cannot be measured reliably. The Company does
not recognize a contingent liability but discloses its
existence in the standalone financial statements.

c) Contingent Assets

Contingent assets usually arise from unplanned
or other unexpected events that give rise to the
possibility of an inflow of economic benefits.
Contingent Assets are not recognized though are
disclosed, where an inflow of economic benefits
is probable.

23. Operating Segment

Company and for which discrete financial information is
available. All operating segment''s operating results are
reviewed regularly by the chief operating decision maker
to make decisions about resources to be allocated to
the segments and assess their performance.

24. Employee Share based payment

25. Measurement of Fair Values

A number of the Company''s accounting policies and
disclosures require the measurement of fair values, for
both financial and non-financial assets and liabilities.

Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date. The fair value measurement is
based on the presumption that the transaction to sell
the asset or transfer the liability takes place either:

a) In the principal market for the asset or liability, or

b) In the absence of a principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market must
be accessible by the Company. The fair value of an
asset or a liability is measured using the assumptions
that market participants would use when pricing the
asset or liability, assuming that market participants act in
their economic best interest. A fair value measurement
of a non-financial asset takes into account a market
participant''s ability to generate economic benefits by
using the asset in its highest and best use or by selling
it to another market participant that would use the asset
in its highest and best use.

26. Non-Current Assets held for sale

The Company classifies non-current assets as held
for sale if their carrying amounts will be recovered
principally through as sale rather than through continuing
use of the assets and actions required to complete such
sale Indicate that it is unlikely that significant changes
to the plan to sell will be made or that the decision to
sell will be withdrawn. Also, such assets are classified
as held for sale only if the management expects to
complete the sale within one year from the date of

classification. On-current assets classified as held for
sale are measured at the lower of their carrying amount
and the fair value less cost to sell. Non-current assets
are not depreciated or amortized.

27. Events after Reporting date

28. Research and Development

Items of property, plant and equipment and acquired
Intangible Assets utilized for Research and Development
are capitalized and depreciated in accordance with the
policies stated for Property, Plant and Equipment and
Intangible Assets.

18(a) Term Loan from HDFC Bank Limitd is secured by way of exclusive charge on the receivables from Solar
Power Project at Gujarat, additionally secured by way of first and exclusive charge on the assets of Solar
Power unit at Gujarat and P&M of Wind Power unit at Karnataka and equitable mortgage on one plot situtated
at Cherlapally, Hyderabad. Further, it has been guaranted by the some of the directors of the company. The
loan is repayable from July 2019. Accordingly, amount due with in a Year is INR 753.87 lacs (Principal only)
which is classified under âBorrowings(Current)â . The loan is repayable in 59 Installments ending in April
2024.

18(b) Vehicle loan from Kotak Mahindra Bank Limited is secured against hyphotication of vehicle. The loan has
been taken during the financial year 2022-23 and is repayable in monthly installment of INR 5.08 lacs
each. Accordingly, Installments due with in a year is INR 42.95 (Principal only) has been clasified under
âBorrowings(Current)â The loan is repayable in 60 installments ending in November 2027.

18(c) Vehicle loan from HDFC Bank Limited is secured against hyphotication of vehicle. The loan has been taken
during the financial year 2021-22 and is repayable in monthly installment of INR 0.24 lacs each. Accordingly,
Installments due with in a year is INR 2.67 lacs (Principal only) has been clasified under âBorrowings(Current)â.
The loan is repayable in 36 Installments ending in October 2024.

48. financial risk management objectives and policies

The Company is exposed tomarket, credit, liquidity and regulatory risks. The Company''s senior management oversees
the management of these risks. The Board of Directors reviews and agrees policies for managing each of these risks,
which are summarised below :

A. Market risk

(i) Commodity Price Risk

Company is affected by the price volatility of certain commodities, primarily, Solar Module. Its operating
activities require the on-going purchase of these materials. The company has arrangement to pass-through
the increase/decrease in these material price through price variance clause in majority of the contract.

(ii) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rate
relates primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign
currency). Further, the Company has foreign currency risk on import of input materials, capital commitment
and also borrow funds in foreign currency for its business. The Company evaluates the impact of foreign
exchange rate fluctuations by assessing its exposure to exchange rate risks. Certain transactions of the
Company act as a natural hedge as a portion of both assets and liabilities are denominated in similar foreign
currencies, for the remaining exposers to foreign exchange risks, the Company adopts a policy of selective

hedging based on risk perception of management using derivative, whenever required, to mitigate or eliminate
the risks.

(iii) Interest Rate risk

The Company is exposed to interest rate risk on financial liabilities such as borrowings, both short-term
and long-term. It maintains a balance of fixed and floating interest rate borrowings and the proportion is
determined by current market interest rates, projected debt servicing capability and view on future interest
rates.

B. Credit Risk

Financial Asset of the Company include trade receivables, employee advances and bank deposits which represents
Company''s maximum exposure to the credit risk.

With respect to credit exposure from customers, the Company has a procedure in place aiming to minimise collection
losses. Credit Control team assesses the credit quality of the customers, their financial position, past experience
in payment and other relevant factors. The Company''s exposure to credit risk is influence mainly by the individual
characteristics of each customer. However, management also considers the factors that may influence the credit
risk of its customer base, including default risk associated with the industry and country in which customers operate.
Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits
are defined in accordance with this assessment. with respect to other financial riskViz loan and advances , deposit
with government, the credit risk is insignificant since the loans and advances are given to its employees only and
deposits are held with reputable banks. The credit quality of the financial assets is satisfactory, taking into account
the allowance for credit losses.

C. Regulatory Risks

The Company performance may be impacted due to change in Regulatory Environment. The Company is closely
monitoring the regulatory developments and risks thereof and proactively implementing course correction for proper
compliance commensurate with new regulatory requirements.

D. Liquidity Risk

The company''s objective is to maintain a balance between continuity of funding and flexibility through the use of
bank deposits and loans

49. Capital Management

Compiled by: Dion Global Solutions Limited

(0) SURANA TELECOM AND POWER LIMITED

Notes forming part of the Standalone Financial Statements

(All amounts are in Indian Rupee (lakhs) except share data and where otherwise stated)

Debt = Non current borrowings Current Borrowings.
Equity = Equity Share capital Other Equity

Particulars	31 Mar 2023	31 Mar 2022
Debt (A)	1,236.96	1,886.35
Equity (B)	12,066.58	11,189.30
Debt Equity ratio (A/B)	0.10	0.17

50. Ratio analysis and its elements.

Ratio	Numerator	Denominator	March 31,2023	March 31,2022	% Change	Reason for variance
Numerator	Current Assets	Current Liabilities	1.31	0.63	108.02	Note(a)
Debt-Equity Ratio	Total Debt*	Shareholder''s Equity	0.10	0.17	(39.19)	Note(b)
	Earning for debt service
Debt Service	= Net profit before taxes	Debt service = Interest
Coverage	non-cash operating	& lease payments	1.79	1.32	34.78	Note(c)
Ratio	expenses Finance Costs	Principal repayments
Return on Equity ratio	Net profit after taxes	Shareholder''s equity	6.11	4.36	40.17	Note(d)
Inventory Turnover ratio	Inventory	Net Sales*365 days	24 days	23 days	7.78
Trade receivables turnover ratio	Debtors	Gross Sales*365 days	55 days	51 days	6.99
Trade payables turnover ratio	Creditors	Total Purchases*365 days	130 days	274 days	(52.71)	Note(e)
		Net Working Capital
Net Capital Turnover	Net sales = Total sales - sales return	= Current assets - Current liabilities excl	1.56	4.39	(64.43)	Note(f)
Ratio	Net sales = Total sales - sales return	term loan payable in 1 year
Ratio		term loan payable in 1 year
Net Profit Ratio	Net profit after taxes	Net Sales = Total sales - Sales return	43.06	27.54	56.39	Note(g)
Return on capital	Earnings before interest and taxes	Capital employed = Tangible Net Worth	11.95	11.06	8.10
employed	Earnings before interest and taxes	Total Debt

Notes

a) Change in the Current ratio is due to increase in the current Assets on account of investment in Mutual Funds.

b) Change in Debt Equity ratio is due to Prepayments of Long Term borrowings

c) Change in Debt service ratio is due to decrease in Long Term Liabilities and Net Profit.

d) Change in the Return on Equity ratio is on account of Increase in Net Profit.

e) Change in the Trade Payables ratio is due to increase in purchases.

f) Change in the Net Capital Turnover ratio is due to increase in Certain Assets.

g) Change in the Net Profit ratio is due to Increase in other income and decrease in Finance cost.

51. Other Statutory Information

A. RELATIONSHIP WITH STRUCK OFF COMPANIES

B. DISCLOSURE IN RELATION TO UNDISCLOSED INCOME

The company do not have any such transactions which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year ended 31st March, 2023 and also for the year ended 31st
March, 2022 in the tax assessments under Income Tax Act, 1961 (such as, search or survey or any other relevant
provisions of the Income Tax Act, 1961).

C. DETAILS OF BENAMI PROPERTY HELD

D. REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES (ROC)

The Company do not have any charges or satisfaction, which are yet to be registered with ROC beyond the
statutory period, during the year ended 31st March, 2023 and also during the year ended 31st March, 2022.

E. DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY

The company have not traded or invested in crypto currency or virtual currency during the year ended 31st March,
2023 and also during the year ended 31st March, 2022.

F. UTILISATION OF BORROWED FUND AND SHARE PREMIUM

The company have not received any fund from any person(s) or entity(ies), including foreign entities (funding party)
with the understanding (whether recorded in writing or otherwise) that the company shall: (a) directly or indirectly
lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party
(ultimate beneficiaries) or (b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

G. The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.

52. Confirmation letters of majority of balances under the heads Trade Payables, Claims Recoverable, Loans & Advances,
Trade Receivables and Deposits from and with various parties/ Government Departments have been sent but in number
of cases such confirmation letters from the parties are yet to be received.

53. Previous year''s figures have been regrouped and rearranged, wherever found necessary

As per our report of even date attached For and on behalf of the BOD of Surana Telecom and Power Ltd

For Luharuka & Associates
Chartered Accountants
Firm Reg No - 01882S

Naveen Lohia Narender Surana Devendra Surana

Partner Managing Director Director

M.No: 214548 DIN: 00075086 DIN: 00077296

Place: Secunderabad T.R. Venkataramanan Mansa Thakur

Date: 30^th May, 2023 Chief Financial Officer Company Secretary

M.No: A67140

Mar 31, 2018

1. Corporate Information

Surana Telecom and Power Limited (âthe Companyâ) is a Public Limited Company registered under the Companies Act, 1956. It is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). It was incorporated on 14.08.1989 having its registered office at 5^th Floor, Surya Towers, Sardar Patel Road, Secunderabad, Telangana- 500 003. The Company is into the business of manufacturing/Trading of Solar related Products, Generation of Solar Power and Wind Power

2. Basis of preparation

The financial statements are separate financial statements prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time). For all periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). These standalone financial statements for the year ended March 31, 2018 are the first the Company has prepared in accordance with Ind AS. Refer to Note 42 for information on how the Company adopted Ind AS.

These financial statements have been prepared and presented under the historical cost convention, on the accrual basis of accounting except for certain financial assets and financial liabilities that are measured at fair values at the end of each reporting period, as stated in the accounting policies set out below. The accounting policies have been applied consistently over all the periods presented in these financial statements.

a) Term/rights attached to Equity Shares

The company has only one class of issued equity shares having a par value of Rs. 1/- per share. Each shareholder is entitled to one vote per share. In the event of liquidation of the company. The holders of equity shares will be entitled to receive remaining assets of the company after distribution of all prefential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Description, Nature and Purpose of the each reserve with in equity are as follows.

General Reserve: This reserve is retained earning of the company, which are kept aside out of the Companyâs profit to meet future (known or unknown) obligations.

Retained Earnings: Retained earnings comprise of net accumulated profit/(loss) of the Company, after declaration of dividend.

Capital Redemption Reserve: Capital Redemption Reserve was created on account of buy back of shares of the Company.

16 (a) (i) Term Loan shown as at 1st April, 2016 was availed from M/s Indian Overseas Bank. The loan was taken during the financial year 2011-12 and was prepaid during the year 2016-17.

16 (a) (ii) Term Loan disclosed as at 31st March, 2017 includes the Loan taken from M/s State Bank of India, which was transferred from M/s Bhagyanagar India Limited as part of Scheme of demerger. The loan was taken during the financial year 2013-14 and was prepaid during the Current year .

16 (b) (i) Term Loan from Hero FinCorp Ltd is secured by way of exclusive charge on the receivables from Solar Power Project at Gujarat, additionally secured by way of first and exclusive charge on the assets of Solar Power unit at Gujarat and P&M of Wind Power unit at Karnataka and equitable mortgage on one plot situtated at Cherlapally, Hyderabad. Further, it has been guaranted by the some of the directors of the company. The loan is repayable in 84 monthly installments begining from November 2016. Accordingly, amount due with in a Year is Rs. 3,56,34,389/-(Principal only) which is classified under âOther Current Financial Liabilitiesâ .

16 (b) (ii) Lease Rental Discounted facility from Aditya Birla Finance Limited is secured by First and exclusive charge on Plot at Maheshwaram Mandal, Ranga Reddy District w.r.t Current and Future lease Rentals from the property. The loan is repayable in 108 monthly installments beginning from June 2016. Accordingly, amount due within a year is Rs. 17,15,964/- (Principal only) which is classified Under âOther Current Liabilitiesâ.

16 (c) (i) Vehicle loan from HDFC Bank Limited is secured against hyphotication of vehicle. The loan was taken during the financial year 2016-17 and is repayable in monthly installment of Rs. 43,885/- each. Accordingly due with in a year is Rs. 4,80,755/- (Principal only) which is classified under âOther Current Financial Liabilitiesâ.

16 (c) (ii) Vehicle loan from AXIS Bank Limited is secured against hyphotication of vehicle. The loan was taken during the year and is repayable in monthly installment of Rs. 1,72,067/- each. Accordingly due with in a year is Rs. 17,55,412/-(Principal only) which is classified under âOther Current Financial Liabilitiesâ.

18 (a) Cash Credit from M/s HDFC Bank Limited is secured against certain Fixed Assets and Current Assets of the Company. Further, it has been guaranteed by some of the Directors of the Company.

18 (b) Cash credit shown in the previous years was availed from M/s State Bank of India, and Corporation Bank.

20 (a) (i) Term Loan shown as at 1st April, 2016 was availed from M/s Indian Overseas Bank. The loan was taken during the financial year 2011-12 and was prepaid during the year 2016-17.

20 (a) (ii) Term Loan disclosed as at 31st March, 2017 includes the Loan taken from M/s State Bank of India, which was transferred from M/s Bhagyanagar India Limited as part of Scheme of demerger. The loan was taken during the financial year 2013-14 and was prepaid during the Current year .

20 (b) (i) Term Loan from Hero FinCorp Ltd is secured by way of exclusive charge on the receivables from Solar Power Project at Gujarat, additionally secured by way of first and exclusive charge on the assets of Solar Power unit at Gujarat and P&M of Wind Power unit at Karnataka and equitable mortgage on one plot situtated at Cherlapally, Hyderabad. Further, it has been guaranted by the some of the directors of the company. The loan is repayable in 84 monthly installments begining from November 2016. Accordingly, amount due with in a Year is Rs. 3,56,34,389/-(Principal only) which is classified under âOther Current Financial Liabilitiesâ .

20 (b) (ii) Lease Rental Discounted facility from Aditya Birla Finance Limited is secured by First and exclusive charge on Plot at Maheshwaram Mandal, Ranga Reddy District w.r.t Current and Future lease Rentals from the property. The loan is repayable in 108 monthly installments beginning from June 2016. Accordingly, amount due within a year is Rs. 17,15,964/- (Principal only) which is classified Under âOther Current Liabilitiesâ.

20 (c) (i) vehicle loan from HDFC Bank Limited is secured against hyphotication of vehicle. The loan was taken during the financial year 2016-17 and is repayable in monthly installment of Rs. 43,885/- each. Accordingly due with in a year is Rs. 4,80,755/- (Principal only) which is classified under âOther Current Financial Liabilitiesâ.

20 (c) (ii) vehicle loan from AXIS Bank Limited is secured against hyphotication of vehicle. The loan was taken during the financial year 2017-18 and is repayable in monthly installment of Rs. 1,72,067/- each. Accordingly due with in a year is Rs. 17,55,412/- (Principle only)which is classified under âOther Current Financial Liabilitiesâ.

3. Disclosure required under Section 186(4) of the Companies Act 2013

For details of Loans, advances and guarantee given and securities provided to any of the related party. Please refer note no: 32

4. In the opinion of Board of Directors and to the best of their knowledge and belief, the value on realization of current assets, loans and advances in the ordinary course of business, would not be less than the amount at which the same are stated in the Balance Sheet.

5. Retirement and Other Employees Benefits

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

Gratuity liability is a defined benefit obligation and is based on the actuarial valuation done. The gratuity liability and the net periodic gratuity cost is actually determined after considering discounting rates, expected long term return on plan assets and increase in compensation level. All actuarial gain/ losses are immediately charged to the Profit & Loss account and are not deferred.

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

6. financial risk management objectives and policies

The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance and support Company''s operations. The Company''s principal financial assets include inventory, trade and other receivables, cash and cash equivalents and land advances and refundable deposits that derive directly from its operations. The Company is exposed to market risk, credit risk and liquidity risk.

A. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and other price risk, such as equity price risk and commodity/ realestate risk. Financial instruments affected by market risk include loans and borrowings and refundable deposits

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with floating interest rates. The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. The Company does not enter into any interest rate swaps.

B. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including refundable joint development deposits, security deposits, loans to employees and other financial instruments.

Trade receivables

i. Receivables resulting from sale of properties: Customer credit risk is managed by requiring customers to pay advances before transfer of ownership, therefore, substantially eliminating the Company''s credit risk in this respect.

ii. Receivables resulting from other than sale of properties: The firm has established credit limits for customers and monitors their balances on ongoing basis. Credit Appraisal is performed before leasing agreements are entered into with customers. The risk is also marginal due to customers placing significant amount of security deposits for lease and fit out rentals.

Financial Instrument and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s Finance department in accordance with the Company''s policy. Investments of surplus funds are reviewed and approved by the Company''s Board of Directors on an annual basis The Company''s maximum exposure to credit risk for the components of the statement of financial position at 31 March 2018 and 2017 is the carrying amounts.

C. Liquidity risk

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank deposits and loans.

The table below summarizes the maturity profile of the Company''s financial liabilities based on contractual undiscounted payments:

7. Capital Management

For the purpose of the Company''s capital management, capital includes issued equity capital, and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximize the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents.

8. First-time adoption of Ind AS

These financial statements, for the year ended March 31, 2018, are the first the Company has prepared in accordance with Ind AS. For periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on March 31, 2018, together with the comparative period data as at and for the year ended March 31, 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company''s opening balance sheet was prepared as at April 1, 2016, the Company''s date of transition to Ind AS.

Exemptions applied

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:

(a) Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for investment property covered by Ind AS 40 Investment Properties. Accordingly, the Company has elected to measure all of its property, plant and equipment and investment property at their previous GAAP carrying value.

(b) Ind AS 27 requires investments in subsidiaries to be recorded at cost or in accordance with Ind AS 109 in its separate financial statements. However Ind AS 101 provides an option in case the Company decides to measure such investment at cost (determined in accordance with Ind AS 27) or deemed cost (fair value or previous GAAP carrying amount) at that date. The Company can avail the above exemption and recognize the investment in firms at the previous GAAP carrying amount at the date of transition to Ind AS.

The Company has also prepared a reconciliation of equity as at March 31, 2017 and April 1, 2016 under the Previous GAAP with the equity as reported in these financial statements under Ind AS, that reflect the impact of Ind AS on the components of statement of balance sheet which is presented below:

Notes to reconciliations between previous GAAP and Ind AS

Other comprehensive income:

Under Indian GAAP, the Company has not presented other comprehensive income (OCI) separately. Hence, it has reconciled Indian GAAP profit/loss to profit/loss as per Ind AS. Further, Indian GAAP profit/loss is reconciled to total comprehensive income as per Ind AS.

9. Previous year''s figures have been regrouped and rearranged, wherever found necessary.

Mar 31, 2016

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

2. (c) There is no specific schedule for repayment of unsecured loan taken from Body Corporate.

3. (a) Cash Credit facilities from Scheduled Banks are secured against certain Fixed Assets and Current Assets of the Company on pari-passu basis. Further, it has been guaranteed by the Directors of the Company.

4. (b) In case of Trade Payables, Letter of confirmations of balances were sent, Hence the balances as on the date of

Balance Sheet are Subject to Confirmation and Reconciliation.

5 (c) As per the information available with the company about the Industry Status of the Creditors, There are no dues to

Micro and Small Enterprises under the Micro, Small and Medium Enterprises development Act, 2006.

6 (a) Represents the interest free sales tax deferment (loan) availed from Government of Andhra Pradesh and the repayment is based on regulations specified in the eligibility certificates issued by Department of Industries. Accordingly, due for the current year, has been repaid and account has become nil.

(a) Lease and other Rental Charges includes Rs, 12,30,342/- in respect of Rent on transformers taken for Gujarat Unit.

(b) R & M to Machinery includes Rs, 22,18,540/- incurred for rectification of transformer at Gujarat Unit.

(c) The subsidiary company (M/s Globecom Infotech Pvt. Ltd) has surrendered the Land allotted by MIDC in the IT/ITES Park at Pune. MIDC has repaid substantial part of amount after deducting Rs, 75,91,308/-. Due to low possibility of recovery of above said amount, The Company has written off the amount of Rs, 82,02,057/- given to subsidiary Company .

Merger of Solar Power Unit of M/s Bhagyanagar India Limited with the Company.

Persuant to Scheme of Arrangement under section 391 to 394 of the Companies Act, 1956, According to the scheme, the Solar power unit of M/s Bhagyanagar India Limited would merge and vest in to the Company, ongoing concern basis. The scheme has been approved by The Board of Directors at their meeting held on 12th October 2015, and subject to necessary consents and other approvals as may be required including that of shareholders of the Company.

Company has filed an application with Bomabay Stock Exchange Limited and National Stock Exchange of India Limited seeking approval in terms of the provisions of Clause 24(f) of the Listing Agreement and with Securities Exchange Board of India. The application has been accorded by them.

The Proposed Scheme of Arrangement is between M/s Bhagynagar India Limited(BIL)and M/s Surana Telecom and Power Limited (STPL). The scheme is subject to approval of the Hon''ble High Court of Judicature of Telanagana and Andhra Pradesh at Hyderabad and regulators, the share holders, and creditors, if any, of BIL and STPL and any others, as may be directed by the Hon''ble High Court of Judicature of Telanagana and Andhra Pradesh at Hyderabad. The aprroval is awaited.

Note: Out of the Total demand of Rs, 5,26,21,400/-, a sum of Rs, 3,29,40,558/- has been paid and the same is shown in note 2.10 of the Balance Sheet under the Head â Taxes paid under Protestâ. iii Balance in Trade Receivables, Trade Payables, loans against shares and dues from statutory authorities are subject to reconciliation and confirmations. Changes if any will be recognised in the financial statements of respective years as and when they arise.

Related Party Disclosure

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

1 Surana Infocom Private Limited 6 Bhagyanagar Green Energy Systems Pvt Ltd

2 Innova Technologies Ltd 7 Bhagyanagar Securities Private Ltd

3 Surana Solar Ltd 8 Globecom Infotech Private Ltd

4 Surana Solar Systems Private Ltd 9 Celestial Solar Solutions Private Limited

5 Aryavaan Renewable Energy Pvt Ltd 10 Tejas India Solar Energy Private Ltd b Sudsier Company c Key Managerial Personnel

Globecom Infotech Private Limited Narender Surana

Celestial Solar Solutions Private Limited Devendra Surana

Surana Solar Systems Private Limited Vinita Surana

Aryavaan Renewable Energy Pvt Ltd D.Srinivas-CS

Tejas India Solar Energy Private Ltd Archit Agarwal-CFO

d Joint Venture Company e Relatives of Key Managerial Personnel

Radiant Alliance Limited GM Surana

ChandKanwar Manish Surana Sresha Surana

Note : Others include items which do not individually exceed 10 % of total Consumption

Retirement and Other Employees Benefits

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

Gratuity liability is a defined benefit obligation and is based on the actuarial valuation done .The gratuity liability and the net periodic gratuity cost is actually determined after considering discounting rates, expected long term return on plan assets and increase in compensation level. All actuarial gain/ losses are immediately charged to the Profit & Loss account and are not deferred.

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

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

Mar 31, 2015

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

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

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

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

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

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

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

As at As at

Particulars 31.03.2015 31.03.2014

7.Commitments and Contingent Liabilities

i Commitments/ Contingent Liabilities

a Unexpired Letters of Credit - 51,513,158

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

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

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

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

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

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

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

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

8. Related Party Disclosure

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

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

2 Surana Solar Systems Private 5 Bhagyanagar Green Energy Ltd Limited

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

7 Celestial Solar Solutions Private Limited

d Key Managerial Personnel

b Subsiary Company Narender Surana

Globecom Infotech Private Limited Devendra Surana

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

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

c Joint Venture Company e Relatives of Key Managerial Personnel

Radiant Alliance Limited GM Surana

ChandKanwar

Manish Surana

Vinita Surana

Sresha Surana

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

9. Retirement and Other Employees Benefits

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

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

11. Gratuity liabilty is a defined benefit obligation and is based on the actuarial valuation done .The gratuity liability and the net periodic gratuity cost is actually determined after considering discounting rates, expected long term return on plan assets and increase in compensation level. All actuarial gain/ lossess are immediately charged to the Profit & Loss account and are not deferred.

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

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

Mar 31, 2014

Notes: 1 (a)

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

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

(b)

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

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

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

i Commitments/ Contingent Liabilities

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

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

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

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

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

Note: 3 Retirement and Other Employees Benefi ts

The Company''s employee benefits primarly cover provident fund, gratuity and leave encashment Provident fund is a defined contribution scheme and the company has no further obligation beyond the contribution made to the fund. Contributions are charged to the Profit & Loss account in the year in which they accrue.

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

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

Note: 4

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

Note: 5

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

Mar 31, 2013

Note: 1.1 Retirement and Other Employees Benefi ts

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

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

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

Note: 1.2

Segment Information

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

Mar 31, 2012

Notes:

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

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

Notes:

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

Notes:

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

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

1 Commitments and Contingent Liabilities (Amount in Rs)

As at 31.03.12 As at 31.03.11

i Commitments/ Contingent Liabilities

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

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

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

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

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

2 Retirement and Other Employees Benefits

The Company's employee benefits primarly cover provident fund, gratuity and leave encashment Provident fund is a defined contribution scheme and the company has no further obligation beyond the contribution made to the fund. Contributions are charged to the Profit & Loss account in the year in which they accrue.

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

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

Mar 31, 2010

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

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

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

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

2. Secured Loans

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

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

3. Contingent Liability

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

(Rs. in lakhs)

Particulars 2009-10 2008-09

Unexpired Letters of Credit Und 1104.48 1227.49

Counter Guarantees given to the Bankers 999.56 1851.43

Sales Tax matters under appeal 11.95 82.45

Excise/Customs matter under appeal 293.84 370.10

4. Related Party Disclosure A: Relationship

Entities in Associate Subsidiary

which directors companies Company

are interested

Bhagyanagar India Limited Surana Globecom

Ventures Infotech Pvt

Limited Ltd

Bhagyanagar Infrastructure

Limited

Bhagyanagar Properties Pvt. Limited

Green Energy Systems Pvt. Ltd.

Scientia Infocom India Pvt. Limited

Entities in Key Relatives of

which directors Management key management

are interested Personnel personnel

Bhagyanagar India Limited G.M. Surana Sunita Surana

Bhagyanagar Infrastructure Narender Vinita Surana Surana Limited

Bhagyanagar Properties Devendra Pvt. Limited Surana

Green Energy Systems Pvt. Ltd. Manish Surana

Scientia Infocom India Pvt. Limited

Entities in Associate Subsidiary Key Relatives of

which directors companies Company Management key management are interested Personnel personnel

Bhagyanagar Telecom Limited

Bhagyanagar Metals Limited

Bhagyanagar Energy & Telecom Pvt. Limited

Bhagyanagar Entertainment Limited

Bhagyanagar Ventures Pvt. Ltd

Metropolitan Ventures India Limited

GMS Realtors Private Ltd

Innova Technologies Pvt.Limited

Advantage Real Estate India Private Limited

Tranquil Avenues India Private Limited

Celestial Avenues Private Limited

Majestic Logistics Private Limited

Value Infrastructure and Properties Pvt Ltd

Every Time Foods Industries Pvt Limited

Surana Technopark Private Limited

Surana Infocom Pvt.Limited

Innova Biotech India Pvt Limited

Innova Infrastructure Pvt Limited

Epicentre Entertainment Pvt Limited

Royal Skyscrapers India Pvt Limited

Sitetonic Websolutions Pvt Limited

Surana Biochemicals Pvt Limited

Andhra Electro Galvanising works

5. Fixed Assets - Impairment.

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

6. Sundry Debtors & Other Balances

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

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

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

7. Retirement and other Employees Benefits

. The Companys employee benefits primarily cover provident fund, gratuity and leave encashment.

. Provident fund is a defined contribution scheme and the company has no further obligation beyond the contribution made to the fund. Contributions are charged to the Profit & Loss Account in the year in which they accrue.

. Gratuity liability is a defined benefit obligation and is based on the actuarial valuation done by the Life Insurance Corporation. The gratuity liability and the net periodic gratuity cost is actually determined after considering discount rates, expected long-term return on plan assets and increase in compensation level. All actuarial gain/Losses are immediately charged to the Profit & Loss Account and are not deferred.

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

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

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