Jindal Packaging Trading DMCC Dubai, UAE. Reports and Financial Statements For the year ending

Transcription

1 Reports and Financial Statements For the year ending

2 JINDAL PACKAGING TRADING DMCC TEL: FAX: DIRECTOR'S REPORT THE DIRECTOR has pleasure in presenting the report and the audited financial statements of Jindal packaging Trading DMCC ("the Company") for the period ended March 31, PRINCIPAL ACTIVITIES: Jindal packaging Trading DMCC ("the Company") is a company domiciled in the United Arab Emirates (UAE). The Company was incorporated on August 23, 2016, under the commercial license no. DMCC , issued by Dubai Multi Commodities Authority. The principal activities of the Company consist of trading in Plastic & Nylon Raw Materials. OPERATIONS OF THE COMPANY: The Company has achieved revenue of AED. 3,644,124 and incurred a net loss of AED 397,522 for the period ended 31 st March The Directors are optimistic about the prospects for the coming years and expect to further improve the performance of the Company. FINANCIAL RESULTS: The Director takes pleasure in summarizing below the financial result of the Establishment as follows: Particulars (Figures in AED) Revenue 3,644,124 Cost of Sales (3,541,473) Gross Profit 102,651 Indirect Incomes - Administrative Expenses (498,063) Depreciation (2,110 ) Results from operating activities (397,522) Total Comprehensive income/(loss) for the year (397,522) UNIT NO. AU-28-L Gold Tower (AU) Plot No. JLT-PH1-13A, JLT, P.O.BOX , DUBAI (UAE) Company is registered and licensed as a FREEZONE Company under the Rules & Regulations ofdmcca

3 JINDAL PACKAGING TRADING DMCC TEL: FAX: DIRECTOR'S REPORT ( continued) AUDITORS: The auditors of the Company are M/s. MCA Auditing, Chartered Accountants, Dubai, United Arab Emirates, and the Company proposes their re-appointment for the year ended March 31, DIRECTOR'S RESPONSIBILITIES: The Director is required to prepare the financial statements for each financial year, which gives a true and fair view of the state of affairs of the Establishment and of the net profit or loss for that year. The Director is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time, the financial position of the Establishment and to enable him to ensure that the financial statements comply with the regulations of the Dubai Multi Commodities Centre. Siby Joseph Director fr Rosalie Insigne Araula Director Date: clb, 0, () lt UNIT NO. AU-28-L Gold Tower (AU) Plot No. JLT-PH1-13A, JLT, P.O.BOX , DUBAI (UAE) Company is registered and licensed as a FREEZONE Company under the Rules & Regulations of DMCCA

4 Reports and Financial Statements For the year ending TABLE OF CONTENTS Pages Directors' Report Independent Auditors' Report Statement of Financial Position Statement of Comprehensive Income Statement of Changes in Equity Statement of Cash Flows Notes to Financial Statements

5 : 1 mca 9l! ",,,. MCA Auditing MZ-01,AI RostamaniTower 'A' Sheikh Zayed Road P.O. Box 3168, Dubai - U.A.E. T: ,F: E: sv@mca.co.in, W: Independent auditors' report To, The Shareholders Dubai - United Arab Emirates Report on the audit of financial statements Opinion a We have audited the accompanying financial statements of (the "Company") which comprise the statement of financial position as at March 31, 2018 and the statement of profit or loss and other comprehensive income, statement of changes in members' equity, statement of cash flows for the year then ended and a summary or'significant accounting policies and other explanatory information. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at March 31, 2018 and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs). Basis for opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the requirements of Code of Ethics for Professional Accountants, issued by International Ethics Standards Board for Accountants (IESBA) together with ethical requirements that are relevant to our audit of the financial statements and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of management Management is responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards, in compliance with the provisions of the applicable law and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Affiliated to PrimeGlobal 3 furthering aspirations e -

6 Auditor's responsibilities for the audit!)f the financial statements [ Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 1v. enkate Registration Number: 676 Date: d.b, oj..i, Jol8 4

7 Statement of financial position As of 31st March 2018 (In United Arab Emirates Dirhams) Notes to Assets Property, plant and equipment 5 5,531 Total non-current assets 5,531. Other Current Assets 6 29,757 Cash and cash equivalents 7 934,351 Total current assets 964,1.08 Total assets 969,639 4,491 4, , , , ,887 Equity & Liabilities Equity Share capital 100,000 Retained Earnings {571,804} Total equity (471, ,000 {174,282} (74,282) Liabilities Non-Current Liabilities End of service gratuity 8 8,939 Loans & Advances 9 1,383,138 Total non-current liability 1,392,077 Current Liabilities Other payables 10 49,366 Total current liabilities 49,366 1, , ,340 98,829 98,829 Total liabilities 1.,441., ,169 Total equity and liabilities 969, ,887 The Report of the Auditors is set out on Pages 3 and 4. The financial statements were approved on behalf of the directors. Siby Joseph Director I osaiidinsigne Araula Director The accompanying notes form an intergral part of these financial statements. 5

8 Statement of comprehensive income For the year ended 31st March 2018 (In United Arab Emirates Dirhams) to Revenue Cost of sales Gross profit 3,644,124 (3,541,473) 102,651 Administrative expenses Depreciation Profit/(loss) for the year 11 5 (498,063) (2,110) (397,522) (174,018) (264) (174,282) Management fee Total comprehensive income/(/oss) for the year (397,522) (174,282) The Report of the Auditors is set out on Pages 3 and 4. The financial statements were approved on behalf of the directors. Siby Joseph Director osalksigne Araula Director Date: t. 0 '-t, Lt The accompanying notes form an intergral part of these financial statements. 6

9 Statement of changes in equity For the year ended 31st March 2018 (In United Arab Emirates Dirhams) Share capital Retained Earnings Total Opening as on April 1, ,000 (174,282) (74,282) Changes in Shareholders' Equity: Total Comprehensive Income (397,522) (397,522) Net movements in current account Management fees Balance at March 31, /_ ooo (571,804) (471,804) Opening as on 23rd August, 2016 Changes in Shareholders' Equity: Opening Balance Capital introduced during the year 100, ,000 Net profit/ (loss) for the period Net movements during the period Balance at March 31, /_ ooo (174,282) (174,282) (174,282) (74,282) The accompanying notes form an integral part of these financial statements. 7

10 Statement of cash flows For the year ended 31st March 2018 (In United Arab Emirates Dirhams) to Cash flows from operating activities Profit/(loss) for the year Adjustments for: Depreciation End of service gratuity Operating profit / (loss) before changes in operating assets and liabilties (397,522) 2,110 7,387 (388,024) (174,282) 264 1,552 (172,466) (Increase)/Decrease in other current assets Increase/(Decrease) in trade and other payables Net cash (used in)/ generated from operating activities (A) 3,058 (49,463) (434,429) (32,815) 165,088 (40,193) Cash flows from investing activities Acquistion of property,plant and equipment (3,150) (4,755) Net cash used in investing activity (B) (3 _, 150) (4,755) Cash flows from financing activities Changes in shareholders Capital Changes in Loans and Advances account Net cash (used in) / generated from financing activities ( C) 1,224,350 1,224, ,000 92, ,529 Net increase/(decrease) in cash and cash equivalents (A+B+C) Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 786, , , , ,581 Note: Cash & Cash equivalents includes: Cash in hand Bank balance Total , , , ,581 The accompanying notes form an intergral part of these financial statements. 8

11 Notes to the financial statements For the year ended 31st March Reporting Entity ("the Company") is a company domiciled in Dubai, United Arab Emirates (UAE). The Company was incorporated on August 23,2016 under the Commercial License No. DMCC issued by DMCC.The registered office of the Company is Unit No: AU- 28-L, Gold Tower (AU), Plot No: JLT-PH1-I3A, Jumeirah Lakes Towers, PO Box , Dubai, UAE. The Company's activity as per Trade License is Plastic & Nylon Raw Materials Trading. The authorized, issued and paid up share capital of the Company is AED 100,000 divided into 100 shares of AED 1000 each. The break-up of shareholding at March 31, 2018 is as follows: Name of Shareholder Nationality % Holding Amount {AED) Jindal Poly Films Limited Indian 100% 100,000 Total 100% 100,000 2 Summary of significant accounting policies 2.1 Statement of Compliance The financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (IFRS). 2.2 Basis of Preparation The financial statements have been prepared on historical cost basis. The financial statements are presented in United Arab Emirates Dirhams (AED), which is the functional currency of the Company. 2.3 Adoption of new and revised International Financial Reporting Standards The Company has not applied the following new and revised IFRSs that have been issued but are not yet effective: New and revised IFRS Effective for Annual Periods beginning on or after IFRS 9 "Financial Instruments": Issued on 24 July 2014 is the IASB's replacement of IAS 39 Financial Instruments: Recognition and Measurement. The Standard includes requirements for recognition and measurement, impairment, derecognition and general hedge accounting. The IASB completed its project to replace IAS 39 in phases, adding to the standard as it completed each phase. The version of IFRS 9 issued in 2014 supersedes all previous versions and is mandatorily effective for periods beginning on or after 1 January 2018 with early adoption permitted (subject to local endorsement requirements). 1 January

12 Notes to the financial statements For the year ended 31st March 2018 IFRS 15 "Revenue from Contracts with Customers": IFRS 15 was issued which established a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. IFRS 15 will supersede the current revenue recognition guidance including IAS 18 Revenue, IAS 11 Construction Contracts, and the related interpretations when it becomes effective. IFRS 16 "Leases": The new standard brings most leases onbalance sheet for lessees under a single model, eliminating the distinction between operating and finance leases. Lessor accounting however remains largely unchanged and the distinction between operating and finance leases is retained. IFRS 16 supersedes IAS 17 'Leases' and related interpretations. Earlier adoption permitted if IFRS 15 'Revenue from Contracts with Customers' has also been applied. 1 January January 2019 Management anticipates that these new standards, interpretations and amendments will be adopted in the financial statements as and when they are applicable and adoption of these new standards, interpretations and amendments, may have no material impact on the financial statements in the period of initial application. There are no other standards that are not yet effective and that would be expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions. 2.4 Foreign currency transactions Transactions in foreign currencies are translated to the functional currency of the Company at exchange rates prevailing at the dates of the transactions. Asset and liabilities denominated in foreign currencies at reporting date are retranslated to the functional currency at the exchange rate prevailing at that date. Foreign exchange differences arising on retranslation are recognised in the period in which the estimates are revised and in any future period affected. 2.5 Property, plant and equipment Property, plant and equipment is stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the assets to the location and condition necessary for it to be capable of operating in the manner intended by the management. The Company adds to the carrying amount of an item of property, plant and equipment the cost of replacing parts of such an item when the cost is incurred if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to profit and loss during the period in which they are incurred. 10

13 Notes to the financial statements For the year ended 31st March Summary of Significant Accounting Policies (continued) 2.5 Property, plant and equipment Depreciation on assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line method. The residual values, useful lives and depreciation methods of the assets are reviewed and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognised net within other income in profit or loss. When revalued assets are sold, the amounts included in the revaluation reserve are transferred to retained earnings. 2.6 Financial instruments Financial instruments comprise financial assets and financial liabilities. Financial assets and financial liabilities are recognized in the Company's financial statements when the Company has become a party to the contractual provisions of the instrument. A financial asset is any asset that is cash, a contractual right to receive cash or other financial asset, a contractual right to exchange financial instruments under conditions that are potentially favorable or an equity instrument. A financial liability is any liability that is a contractual obligation to deliver cash or another financial asset, or to exchange financial instruments under conditions that are potentially unfavorable. 2.7 Cash and cash equivalents Cash and cash equivalents include cash in hand and deposits held at call with banks with original maturities of three months or less. 2.8 Trade and other receivables Trade and other receivables are measured initially at the transaction cost. They are subsequently stated at net of provisions for impairment, which is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of receivables. During the year no provision for impairment is required. 2.9 Trade and other payables Payables will be recognized initially at the transaction price for the services received, whether billed by customers or not. 11

14 Notes to the financial statements For the year ended 31st March Summary of Significant Accounting Policies (continued) 2.10 Provisions A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of future economic benefits will be required to settle the obligation Employees' end of service benefits The Company provides end of service benefits to its expatriate employees. The entitlement to these benefits is usually based upon the employees' final salary and length of service in accordance with the United Arab Emirates Federal Labour Law. The expected costs of these benefits are accrued over the period of employment Revenue recognition The Company earns revenue from trading. Revenue is recognised when the promised goods are trasferred to the customers and the control over the goods has moved fully to the customer. The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Company and when specific critera have been met with the Company's activities. The amount of revenue is not considered to be reliably measured until all the contingencies relating to the sale have been resolved. 3 Critical accounting judgements, estimates and assumptions The preparation of financial statements in accordance with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. 4 Financial risk management The Company management observes domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Company through analyzing risks exposure by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk), credit risk, and liquidity risk. The Company seeks to minimize the effects of risks related to financial instruments. The Company's policies in this regard are set and approved by the management on foreign exchange risk, interest rate risk, credit risk and the investment of excess liquidity. 12

15 Notes to the financial statements For the year ended 31st March Market risk Management The Company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates. The Company is not exposed to any significant interest rate risks. The Company undertakes certain transactions denominated in foreign currencies. exposures to the exchange rate fluctuations arise. Hence Currently the Company is mainly exposed to the currency exchange risk related to the transactions denominated in multi currencies. There is no currency exchange risk related to transactions denominated in the US dollars or currencies linked with it as the AED rate is fixed to the US dollar. The management undertakes suitable procedure to minimize risk associated with transactions denominated in currencies other than AED and USO Credit risk management Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company obtains information about counterparty's credit worthiness from publicly available information and its own trading records. The Company's exposure and the credit rating of its counterparties are continuously monitored and aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limit that are reviewed and approved periodically by the relevant management in the Company and, where appropriate, letter of guarantees are obtained from the customer. Credit risk is primarily related to the trade and other receivable balance which were presented in the balance sheet net of provision from doubtful debt that was estimated by management based on prior experience and prevailing economic condition Liquidity risk management The company monitors its risk to a shortage of funds using recurring liquidity forecasting tool. This tool considers the maturity of both its financials investments and financial assets (e.g. accounts receivable, other financial assets) and projected cash flow from operations. The company manages liquidity risk by maintaining adequate reserves, banking facilities and borrowing facilities by continuously monitoring forecasted and actual cash flows and matching the maturity profit of the financial asset and liabilities. 13

16 Notes to the financial statements For the year ending (In United Arab Emirates Dirhams) 5 Property plant and equipment Computers Total Cost As on 1st April 2017 Additions durinq the year As of March 31, 2018 Accumulated depreciation As on 1st April 2017 Depreciation for the year As of March 31, 2018 Net book value As of March 31, 2018 Cost As on 23rd August 2016 Additions during the year As of March 31, 2017 Accumulated depreciation As on 23rd August 2016 Depreciation for the year As of March 31, 2017 Net book value As of March 31, ,755 3, , S L S31 4, ,755 3, , ;. 374 S L S31 4,

17 Dubai - United Arab Emirates Schedules to financial statements For the year ending (In United Arab Emirates Dirhams) Other current Assets Deposits 5,075 9,705 Prepaid Expenses ,757 32,815 7 Cash and Cash Equivalents Cash in hand 192 Cash at bank , , ,581 8 End of service gratuity Openinq Balance 1,552 Provision for the year 7,387 1,552 Closing balance 8,939 1,552 9 Loans & Advances Loans- Related Party 1,291,680 92,000 Advances 66,260 Interest payable on loan ,383, , Other Payables Other payables 17,500 20,570 Other payables - Related party 68,403 Provision for expenses ,366 98, Administrative expenses Salary and related benefits 254,558 87,901 Rent 54,525 16,357 Leqal, rates and taxes 44,042 16,498 Professional fees 27,450 5,000 Incorporation leqal expenses 45,513 Travel and Transportation Expenses 3,589 Utility expenses 3,516 Office expenses 1, Finance Charqes , , ,018 15

18 Dubai - United Arab Emirates Schedules to financial statements For the year ending (In United Arab Emirates Dirhams) 12 Related parties The Company enters into transactions with companies and entities that fall within the definition of a related party as contained in IAS 24, International Accounting Standards {IAS). Such transactions are in normal course of business and at terms that correspond to those on normal arms-length transactions with third parties. Related parties comprise companies and entities under common ownership and/or common management and control; their partners and key management personnel. The Company believes that the terms of such transactions are not significantly different from those that could have been obtained from third parties. a. Due to Related Party Loans -Jindal Poly Films Limited Other payables -Jindal Poly Films Limited ,291,680 1,291, , , Contingent liabilities and capital commitment Except for the ongoing business obligations which are under normal course of business, there has been no other known contingent liability or capital commitment on Company's account as of balance sheet date. 14 Comparative figures The previous year figures have been regrouped or reclassified wherever necessary to make them comparable to those of the current year. 16