Background M/S Sindhu Trade Links Limited was incorporated on 22nd July 1992. Primary business of the Company is Transportation, Trading of Oil & Diesel, Finance, Civil construction & Mining of coal and having its place of business in Delhi, Chhattisgarh, Haryana and Orissa. Significant accounting policies and notes a. Basis of brparation of financial statements These financial statements have been brpared and brsented on the accrual basis of accounting and comply with the Accounting Standards referred to in Section 133 of the Companies Act,2013 read with Rule 7 of the Companies (Accounts Rule, 2014, the relevant provisions of the Companies Act,2073, pronouncements of the Institute of Chartered Accountants of India and other accounting principles generally accepted in India, to the extent applicable. The financial statements are brsented in Indian rupees rounded off to the nearest rupees b, Use of estimates The brparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialized. c. Current-non-current classification All assets and liabilities are classified into current and non-current as per instruction given in schedule III of the Companies Act,2013 brparation of balance sheet and statement of profit and loss of a company i) Assets: An asset is classifieds current asset when it satisfies any of the following criteria: (11 lt is expected to be realized in, or is intended for sale or consumption nil the Company's normal operating cycle; (2J It is held primarily for the purpose of being traded; [3J It is expected to be realized within 12 months after the reporting date; or (4) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle liability for at least 12 months after the reporting date Current assets include the current portion of non' current financial assets. AII other assets are classified as non-current. ii) Liabilities: A liability is classified as current libraries when it satisfies any of the following criteria: (1) It is expected to be settled in the Company's normal operating cycle; (2J It is held primarily for the purpose of being traded; [3) It is due to be settled within 12 months after the reporting date; or (4J The company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. current liabilities include current portion of non-current financial liabilities. All other Inabilities are classified as non current Operating cycle operating cycle is the time between the acquisition of assets for processing and their realization in. cash or cash equivalents. The Company has ascertained its operating within cycle being a period 12 months for the purpose of classification of assets and liability currentnon current . Inventories (valued at lower of cost and net realizable value) Inventories are valued at lower of cost and net realizable value. Diesel & rubricate, components of store and spare parts are computed on first in first out basis FIFO. Revenue recognition Revenue recognition only when risks and rewards incidental to ownership are transferred to the customers it can be reliably measured and it is reasonable to expect ultimate collection revenue from operations includes sale of goods services service tax excise duty and sales during trial run period period adjusted for discounts and gain loss on corresponding hedge contracts Interest income: interest income is recognized on a time proportion basis considering the contracted rate of return. Dividend income: Dividend income is recognized when the shareholders, right to receive payment is established. Fixed assets and debrciation_ Fixed assets are stated at cost less accumulated debrciation and impairment losses if any the cost acquisition and installation incurred up to the date of commissioning of the assets fixed assets under construction and assets not ready to use befor the reporing date are disclosed as capital work in progress assets held for disposal are stated at their estimated residual values as at the balance sheet date. Assets individually coasting up to Rs.5,000 are fully debrciated in the year of purchase Expenditure incurred during the period of construction including all directors and indirections expenses incidental and related to construction is carried forward and on completion such costs are allocated to respective fixed assets Debrciation on fixed assets is provided on written down value me those over period of useful life of the assets as brscribed in schedule ii to the companies act 2013. For the assets purchase as second hand or acquired in merger acquisition cost and date is taken as cost incurrent in acquiring them and date as of acquiring them and remaining useful life of the asset has been taken as per estimates of management Foreign currency transactions a. Transactions denominated in foreign currencies are recorded at the exchange rate brvailing on the date of the transaction or that approximates the actual rate at the date of the transaction. b Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the year end rate on the date of the contract is recognized as exchange difference and the brmium paid on forward contracts is recognized over the life of the contract. c. NOn-monetary foreign currency items are carried at cost. d' In respect of integral foreign operations, all transactions are translated at rates brvailing on the date of transaction or that approximates the actual rate at the date of transition Monetary assets and liabilities are restated at tie year end rates. e.any income or expense on account of exchange difference either on settlement or on translation is recognized in the profit and loss statement excep incase of long term liabilities where they related to acquisition of fixed assets in which case they are adjusted to the carrying of such assets h. investment current investment are carried at lower of cot and quoted fair value computed category wise non current investment are stated at cost provision for diminution in the value of non current investment is made only if such a decline is other than temporary. i. Employee benefits Short Term Employee Benefits All employee benefits payable/available within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, and bonus etc. are recognized in the statement of profit and Loss in the period in which the; employee renders the related service. Post-Employment Benefits Defined contribution plans: A defined contribution plan i.e. provident fund is a post-employment benefit plan under which an entity pays fixed contributions into a separate endive and will have no legation constructive obligation to pay further amounts. Obligations for contributions to defined contribution olansare recognized as an employee trenefit expense in the statement of profit and Loss when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in future payments is available Defined benefit plans; A defined benefit plan i.e. gratuity, is a post-employment benefit plan. Actuarial gains and losses in respect of post-employment and other long term benefits are charged to the Profit and Loss Statement. Employee Separation Costs compensation to employees who have opted for retirement under the voluntary retirement scheme of the Company is charged to the Profit and Loss Statement in the year of exercise of option by the employee i. Cash and cash equivalents Cash and cash equivalents comprise cash at bank and on hand and fixed deposits with bank with original maturity of three months or less. k. Borrowing costs Borrowing costs (net of income on the temporary investment of those borrowings) that are attributable to the acquisition of qualifying assets are capitalized as parr of the coit of such assets. A qualifying asset is one that necessarily takes a period of one year or more to get ready for its intended use. All other borrowing costs are charged to revenue. L Leases Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased asset are classified as operating leases, Operating lease charges are recognized as an expense in the Statement of Profit and Loss on a straight line basis over the lease term. m, Earnings per share Basic earnings per share are calculated by dividing the net profit/(loss) for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per share are computed using the weighted average number of equity and dilutive equivalent shares outstanding during the year, except where results would be anti ditutive. Taxes on income Income-tax expenses comprise current tax (i.e, the amount of tax for the period determined in accordance with the Income-tax Act, 1961) and deferred tax charge or credit (reflecting the tax effects of the timing differences between the accounting income and taxable income for the period). The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future. However, where there is unabsorbed debrciation or carry forward loss under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Deferred tax assets are reviewed at each Balance Sheet date and written down or written up to reflect the amount that is reasonably/virtually certain (as the case may be] to be realized. Deferred tax implications of timing differences, tJlat originate during the tax holiday period and reverse after the tax holiday period are recognized in the year in which timing differences originate. The credits arising from Minimum Alternative Tax paid are recognized as recoverable only if there is reasonable certainty that the respective Company of the Group will have sufficient taxable income in future years to utilize such credits. impairment of assets Accounting Standard 28 'Impairment of Assets An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Statement in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount p.provision and contingencies the group recognizes a provision when there is a brsent obligation as a result of a past event and it is more likely than not that will be an outflow of resources embodying economic benefits to settle such obligation and the amount such obligation can be reliabliy estimated provision are not discounted to its brsent value and are determined based on the management best estimate of the amount of obligation required at the yar end these are reviewed each balance sheet date and adjusted to reflect current management estimates contingent liabilities are disclosed in respect of possible obligation that have arisen from past events and the existence of which will be confirmed only by the occurrence or non occurrence of future events not wholly wirhin the control of the Aryan gruoup contingent liabilities are also disclosed for brsent obligation in respect of which it is not probable that there will be an ourflow of resources or a reliable estimate of theamount of obligation cannot be made when there is a possible or a brsent obligation where the likeliheed of an ourflow of resources is remote no disclosure or provision is made Deferred Taxes In accordance with the accounting standard relating to accounting for taxes on income provision for deferred tax assets has been created for and the amount has been credited to profit loass appropriation account 2.corporate social responsibility As per section 135 of the companies act 2013 the company is required to spend at least two per cent of the average net profit of the company made during the three immediately brceding financial years As per our separate report of even date For NACAR GOEL & CHAWLA CIIAR'TERED ACCOUNTANTS FRN:009933N FOR SINDHU TMDE LINKS LIMITED (DEEPAKNAGAR] PARTNER MEMBDRSIIIP NO.OB7456 (SATYAPALSINDHU) MANAGINGDIRECTOR (VIKAS SINGH HOODA] CHIEF FINANCIAL OFFICER {MAHTMA JAIN ) COMPANY SECRETARY Place: New Delhi Dated: 30rrrMay 2015 |