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Sindhu Trade Links Ltd.

BSE: 532029 Sector: Others
NSE: N.A. ISIN Code: INE325D01017
BSE 00:00 | 24 Sep 279.90 13.30
(4.99%)
OPEN

279.90

HIGH

279.90

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279.90

NSE 05:30 | 01 Jan Sindhu Trade Links Ltd
OPEN 279.90
PREVIOUS CLOSE 266.60
VOLUME 33
52-Week high 279.90
52-Week low 44.15
P/E 28.56
Mkt Cap.(Rs cr) 1,439
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 279.90
CLOSE 266.60
VOLUME 33
52-Week high 279.90
52-Week low 44.15
P/E 28.56
Mkt Cap.(Rs cr) 1,439
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sindhu Trade Links Ltd. (SINDHUTRADE) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

SINDHU TRADE LINKS LIMITED

Opinion

We have audited the accompanying Standalone Financial Statements of Skidhu Trade LinksLimited ("the Company") which includes joint operations which comprise theBalance sheet as at March 31 2020 the Statement of Profit and Loss including thestatement of Other Comprehensive Income the Cash Flow Statement and the Statement ofChanges in Equity for the year then ended and notes to the Standalone FinancialStatements including a summary of significant accounting policies and other explanatoryinformation. (herein after referred to as Standalone Financial Statement).

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Financial Statements give the information requiredby the Companies Act 2013 as amended ("the Act") in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedm India of the state of affairs of the Company as at March 31 2020 its profit includingother comprehensive income its cash flows and the changes in equity for the year ended onthat date

BASIS FOR OPINION

We conducted our audit of the Standalone Financial Statements in accordance with theStandards on Auditing (SAs) as specified under Section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the ‘Auditors'Responsibilities for the Audit of the Standalone Financial Statements' section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the financial statements under the provisions of the Actand the Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the Standalone Financial Statements

KEY AUDIT MATTERS

Key audit matters ('KAM') are those matters that in our professional judgment were ofmost significance in our audit of the standalone financial statements of the currentperiod. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters

1. Key Audit Matter

1. Key Audit Matter Investments

The Company has invested in equity and preference shares and government bonds as wellthe carrying amount of which is calculated by the management in accordance with Ind AS 32107 and 109 provided in Note 5 and Note 15 of the financial statements.

Considering the materiality of the amounts involved the significant managementjudgment s required in estimating the quantum of diminution in the value of investmentsand such estimates and judgments being inherently subjective this matter has beenidentified as a key audit matter which is described in Note 2{j) to the standalonefinancial statements As at 31st March 2020 the company has made total foreign investmentsin subsidiary of Rs 43416 Lakhs.

Auditor's Response

Our audit procedures assessed the appropriateness of methodology and valuation modelused by management to estimate the value of investments

Based on our procedures we considered the adequacy of disclosures in respect ofinvestments in the notes to the standalone financial statements.

2. Key Audit Matter

Evaluation of Uncertain Tax Positions & Other Contingent Liabilities

The Company has material uncertain tax positions including matters under dispute whichinvolves significant judgment to determine the possible outcome of these disputes.

The Company also has material contingent liabilities including outstanding guaranteescounter guarantees and omnibus counter guarantees to various banks and claims against thecompany under dispute which involves significant judgment to determine the possibleoutcome of these disputes as mentioned in Note 40 to the standalone financial statements.

Auditor'5 Response

Obtained details of completed tax assessments and demands till the year ended March 312020 from the management. We involved our internal experts to challenge the management'sunderlying assumptions in estimating the tax provision and the possible outcome of thedisputes Our internal experts also considered legal precedence and other rulings inevaluating management's position on these uncertain tax positions.

Our audit procedure on contingent liabilities Included -

• Obtaining an understanding of the systems and controls implemented by managementfor recognizing the guarantees.

• Evaluation of purposes for which the various bank guarantees are provided.

• Our internal experts read and analysed external legal opinions/ consultations bymanagement for the disputes pending in various forums

• Discussed with appropriate senior management regarding the claims against thecompany and assessment orders

• Assessed management's estimate of the possible outcome of the disputed cases.

3. Key Audit Matter Related Party Transactions

During the year the Company has generated major portion of revenue and has incurredsignificant amount of expense with the related parties.

Ind AS 24 "Related Party Disclosures" requires substantive disclosures forthe related party transactions which are disclosed in Note 46 to the standalone financialstatements.

Determination of substance of the transactions and transaction price for such relatedparty transactions is a key audit matter considering the significance of the transactionvalue and the significant judgments involved in determining the transaction value

Auditor's Response

• Our audit procedures included considering the compliance with the variousrequirements for entering in to such related party transactions.

• We performed test of controls over related party transactions through inspectionof evidence of performance of these controls

• We performed the following tests of details:

We have evaluated the relevant work orders and market price o We have read theapprovals obtained from Audit Committee Board of Directors and Shareholders for thetransactions.

We have assessed the disclosures to be made in accordance with Ind AS 24 "RelatedParty Disclosures"

INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITORS' REPORT THEREON

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe Standalone Financial Statements and our auditors' report thereon

Our opinion on the Standalone Financial Statements does not cover the other informationand we do not express any form of assurance conclusion thereon

In connection with our audit of the Standalone Financial Statements our responsibilityis to read the other information and in doing so consider whether such other informationis materially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated If. based on the work we haveperformed we conclude that there is a matenal misstatement of this other information weare required to report that fact We have nothing to report in this regard

RESPONSIBILITIES OF MANAGEMENT FOR THE STANDALONE FINANCIAL STATEMENTS TheCompany's Board of Directors is responsible for the matters stated in Section 134(5) ofthe Act with respect to the preparation of these Standalone Financial Statements that givea true and fair view of the financial position financial performance including othercomprehensive income cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under Section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgements and estimates that are reasonable and prudent; and the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Standalone Financial Statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

In prepanng the Standalone Financial Statements management and Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company'sfinancial reporting process

AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from matenal misstatement whether due to fraudor error and to issue an auditors' report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists Misstatements can arisefrom fraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these Standalone Financial statements.

As part of an audit in accordance with SAs we exercise professional judgement andmaintain professional scepticism throughout the audit. We also

• Identify and assess the risks of matenal misstatement of the StandaloneFinancial Statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern If we conclude that a material uncertainty existswe are required to draw attention in our auditors' report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion Ourconclusions are based on the audit evidence obtained up to the date of our auditors'report However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the StandaloneFinancial Statements including the disclosures and whether the Standalone FinancialStatements represent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1 As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act we give in the "Annexure 1" a statement on the matters specified inparagraphs 3 and 4 of the Order

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

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

(c) The Balance Sheet the Statement of Profit and Loss including the Statement of OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid Standalone Financial Statements comply with theAccounting Standards specified under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended;

(e) On the basis of the written representations received from the directors as on March31 2020 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2020 from being appointed as a director in terms of Section 164 (2) of theAct;

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company with reference to these Standalone Financial Statements and theoperating effectiveness of such controls refer to our separate Report in "Annexure 2"to this report;

(g) In our opinion provisions of Section 197 of the Companies Act 2013 With respect tomanagerial remuneration is not applicable on the company

(h) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous

i The Company has disclosed the impact of pending litigations on its financial positionin its Standalone Financial Statements - Refer Note 40 to the Standalone FinancialStatements;

ii The Company do not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. The Company do not have any dues on account of Investor Education and ProtectionFund.

For Divyank Khullar & Associates

Chartered Accountants

FRN:- 025755N

Proprietor

M.No:- 528399

UDIN:- 20528399AAAA6743

Place: New Delhi

Date - 02/09/2020

ANNEXURE1

TO THE INDEPENDENT AUDITORS' REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTSOF SINDHU TRADE LINKS LIMITED

The Annexure referred to in the Independent Auditor's Report to the members of theCompany on the Financial Statements for the year ended 31* March 2020 We report that:

1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets

(b) According to the Information & Explanation given to us The Company has aregular programme for physical verification in a phased periodic manner which in ouropinion is reasonable having regards to the size of the Company and the nature of itsassets. No material discrepancies were noticed on such venfication.

(c) According to information and explanations given by the management the titledeeds/lease deeds of immovable properties included in property plant and equipment areheld in the name of the Company

2. The management has conducted physical verification of inventory at reasonableintervals during the year and no material discrepancies were noticed on such physicalverification

3. In our opinion and according to the information and explanations given to us theCompany has granted loans to parties listed in the register maintained under Section 189of the Companies Act 2013

(a) The terms and conditions of the grant of such loans are in our opinion primafacie not prejudicial to the Company's interest

(b) The schedule of repayment of principal and payment of interest has been stipulatedand repayments or receipts of principal amounts and interest have been regular as perstipulations

(c) The principal and interest are not overdue in respect of loans granted tocompanies firms or other parties listed in the register maintained under section 189 ofthe Companies Act 2013

4. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has complied with the provisions ofSection 185 and 186 of the Act with respect to loans and investments made.

5. The Company has not accepted any deposits within the meaning of Sections 73 to 76 ofthe Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended) Accordinglythe provisions of clause 3(v) of the Order are not applicable to the Company

6. According to the information and explanations given to us the Company is notrequired to maintain the cost records under sub section (1) of Section 148 of theCompanies Act 2013 Accordingly paragraph 3(vi) of the Order is not applicable to theCompany.

7. (a) The Company is generally regular in depositing with appropnate authoritiesundisputed statutory dues including Provident fund Employees' State InsuranceIncome-tax Sales-tax Goods and Services tax Duty of Custom Duty of Excise Value AddedTax Cess and Other Statutory Dues applicable to it.

(b) According to the information and explanations provided to us no undisputed amountspayable in respect of Provident fund Employees' State Insurance Income-tax Sales TaxGoods and Service tax Duty of custom Duty of excise Value added tax Cess and OtherStatutory Dues were outstanding at the year end for a period of more than six monthsfrom the date they became payable

(c) According to the information and explanations given to us there are no dues ofIncome Tax Sales Tax Value Added Tax Service Tax Duty of Customs Duty of ExciseGoods and Service Tax and Cess which have not been deposited with the appropriateauthorities on account of any dispute except the following-

Name of the Statute Nature of Dues PERIOD (A.Y.) Amount involved (Rs. in Lakh) Forum where dispute Is pending
Income Tax Act 1961 Income Tax 2007- 08 1892 92 High Court Delhi
2008- 09
2009-10
2010-11
Customs Act 1962 Custom Duty 2015-16 987.32 Principal Commissioner Vishakhapatnam

8. In our opinion and according to the information and explanations provided by themanagement the Company has not defaulted in repayment of loans or borrowing to afinancial institution bank or government or dues to debenture holders

9. According to the information and explanations given to us. the Company did not raiseany money by way of initial public offer or further public offer (including debtinstruments) and the term loans taken by the Company have been applied for the purpose forwhich they were raised.

10. According to the information and explanations provided by the management we reportthat no fraud by the Company or no matenal fraud on the Company by the officers andemployees of the Company has been noticed or reported during the year.

11. To the best of our knowledge and according to the information and explanationsgiven to us managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act;

12. In our opinion the Company is not a nidhi company. Therefore the provisions ofdause 3{xii) of the Order are not applicable to the Company and hence not commented upon.

13 According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with section 188 of the Act where applicable and details of such transactionshave been disclosed in the Standalone Ind AS financial statements as required by theapplicable Indian Accounting Standards Further according to the information andexplanations given to us and based on our examination of the records of the Companyprovisions of section 177 of the Act are not applicable to the Company.

14 According to the information and explanations provided to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence reporting requirements under clause 3(xiv) of the Order are notapplicable to the Company and not commented upon

15. According to the information and explanations provided by the management theCompany has not entered into any non-cash transactions with directors or persons connectedwith him as referred to in Section 192 of the Act

16. According to the information and explanations provided to us the provisions ofSection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company

For Divyank Khullar & Associates

Chartered Accountants

FRN:- 025755N

Proprietor

M.No:- 528399

UDIN:- 20528399AAAA6743

Place: New Delhi

Date: 02/09/2020

ANNEXURE 2

TO THE INDEPENDENT AUDITORS' REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTSOF SINDHU TRADE LIN KS LIMITED

REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (i) OF SUB-SECTION 3 OF SECTION143 OF THE COMPANIES ACT 2013 ("THE ACT')

We have audited the internal financial controls over financial reporting of SindhuTrade Links Limited ('the Company ") as of March 31 2020 in conjunction with ouraudit of the Standalone Financial Statements of the Company for the year ended on thatdate

MANAGEMENT'S RESPONSIBILITY FOR INTERNALFINANCIAL CONTROLS

The Company's Management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India.These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to the Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting with reference to these Standalone Financial Statementsbased on our audit. We conducted our audit in accordance with the Guidance Note and theStandards on Auditing as specified under Section 143(10) of the Act to the extentapplicable to an audit of internal financial controls and both issued by the Institute ofChartered Accountants of India Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting withreference to these Standalone Financial Statements was established and maintained and ifsuch controls operated effectively in all material respects

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls over financial reporting with reference to theseStandalone Financial Statements and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting with reference to these StandaloneFinancial Statements assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk The procedures selected depend on the auditors' judgement including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls over financialreporting with reference to these Standalone Financial Statements

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING WITH REFERENCE TO THESESTANDALONE FINANCIAL STATEMENTS

A company's internal financial control over financial reporting with reference to theseStandalone Financial Statements is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of financialstatements for external purposes in accordance with generally accepted accountingprinciples A company's internal financial control over financial reporting with referenceto these Standalone Financial Statements includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the Company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the Company are being made only in accordance withauthorisations of management and directors of the Company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the Company's assets that could have a material effect on the financialstatements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING WITHREFERENCE TO THESE STANDALONE FINANCIAL STATEMENTS

Because of the inherent limitations of internal financial controls over financialreporting with reference to these Standalone Financial Statements including thepossibility of collusion or improper management override of controls matenalmisstatements due to error or fraud may occur and not be detected Also projections of anyevaluation of the internal financial controls over financial reporting with reference tothese Standalone Financial Statements to future periods are subject to the risk that theinternal financial control over financial reporting with reference to these StandaloneFinancial Statements may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate

OPINION

In our opinion the Company has. in all material respects adequate internal financialcontrols over financial reporting with reference to these Standalone Financial Statementsand such internal financial controls over financial reporting with reference to theseStandalone Financial Statements were operating effectively as at March 31 2020. based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For Divyank Khullar & Associates

Chartered Accountants

FRN:- 025755N

Proprietor

M.No:- 528399

UDIN:- 20528399AAAA6743

Place: New Delhi

Date - 02/09/2020.

.