RST INTERNATIONAL TRADING (FZE)
DUBAI, UAE
AUDITORS' REPORT & FINANCIAL STATEMENTS
MARCH 31,2017
..:tJL,.,.,=.ll,-}$.il,j+:-,^JS O,^*;Jl.pAbdul Rahman Karmustaji Auditing
MIRROR OF FINANCIAL HEALTH. GLOBALLY
(+of
RST INTERNATIONAL TRA.DING (FZE)
DUBAI, UAE
INDEX TO THE FINANCIAL STATEMENTS
Report of the Directors
Report of the Independenl Auditors
Statement of Financial Position
Statement of Profit or Loss & Other Comprehensive Income
Statement of Changes in Equity
Statement of Changes in Cash Flows
Schedules attached to the Financial Statements
t-2
3-4
9-17
RefARKA/I6l/2017
6
t{s'l' I N1't.ttNATtoNAL TRADING (FZE)l'. (). llox l86tl4.le he I Ali li'rec Zone , Dubai, UAE
rt of the Director
Ihc Managetnent has pleasure in presenting this report together rvith the audited financial statentents,'l lhe cstahlislrnent lor the l ear ended March 31. 20lr.
Lcgal Status
"lls't INTERNATIONAL TRADING (FZE)" here-in-after called'the Establishment'is a Limitedl-aability Establishment and operating under Trade License No. I47086 issued by Jebel Ali Free Zo[eAuthority, Dubai, UAE. The registered address of the establishment is p.O. Box 18684, Jebel Alil'ree Zone, Dubai, UAE
Principal Actiyities
The Principal Activities of the Establishment are Building & Construction Materials Trading, Readynrix Concrete Trading, Special Fabrics & Fibers for Construction Trading, Construction ChemicalsTrading lnsulation & Protection Materials Trading, Marble & Natural Stones Trading, paint &Varn ish Trading.
Results of Operation
Net Profit for the year ofthe establishment was AED 783,9031-
(Amount in AED)31-03-2017 3l-03-201614,071,207 14,685,',762
971,505 942,887
Revenue
Gross ProfitGross Profit (%)Net ProfitNet Profit (%)
6.90v"783,903
5.51%
6.42%
514,783
3 .51Yo
Director's Responsibility
The Director is responsible for Ihe preparation and fair presentation of these financial statements inaccordance with lnternational Financial Reporting Standards and for such internal control as
nlanagement determines'is necessary to enable the preparation of financial statements that are freefrom material misstatement, whether due to fraud or error.
The responsibility of the directors is responsible for keeping proper financial records in line withlaws, rules and regulations of Dubai Multi Commodities Centre Authority, for taking reasonablesteps to safeguard the assets ofthe entity and to prevent and detect fraud and other irregularities.
Events after the reporting year
There were no transactions or event of a material nature after the reporting period, which is likely toaffect, substantially the result ofthe operations or the financial position ofthe establishrnent.
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Irs t lN'fl,IRNATIONAL TRADING (FZE).lcbtl Ali l'rec Zone, Dubai, UAE
rt of (he Director
RST INTERNATIONAL TRADING (FZE)
A urlilors
lhc indcpcndent auditors, Abdul Rahman Karmustaji Auditing. Dubai. UAE have expressed theirwillingncss to continue in office and a resolution to re-appoint ihern rvill be proposed at the Annual( icrrcral Mecting.
On hahul/ of the Board of Directors
,r,raf,K"":
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i:l-rL..- \l cjCsr:l ,.4.5*.,..a;.S a,a-:jl.l;c'Abdul Rahman Karmustaji Auditing
ro rHE SHAREHoLDEns op nsirNrrffiiioriTffirNc (FZE), JAFzA,DUBAI, UAE
Ptnrt ^- .t,- t;..^.-^:-, ^- -
0Report on thertnanciol statements
we lrave audited the accompanying financiar statements of RST INTERNATIONAL TRADING(FZE). JAFZA" Dubai, UAE, which comprise the statement or' financiar posirion as at March 3 r.201 7' lhe slalemenl of profir or ross and other comprerrerrsir e income. slaremenr of changes in equity.statement of cash flows for the year^then ended, a summary of significant u."orntrrg'foti;i., unaother explanatory notes related to the financial stalements, ,., or, on pages 5 to 17.
Management,s tesponsibilit! for the /inahciul slatementsManagement is responsible for the preparation and fair presentation of these financial statements iraccordance with Intemationar Financial Reporting Standards (,FRSs) and *i,n arr"-"ipri*ar"provisions of implementing regulations issued by *,J reb"r ,qli rr". zor. ar,no.i,y rrr.ruli or ru*No 9 0f 1992 0f H.H. Shaiki Maktoum Bin Rashid Al Maktoum Ruler of Dubai. UAE. Thisresponsibirity includes: designing, imprementing ana maintaining l;,;;;;l ."rrr""i?nriii.o ,r.preparation and fair presentation of financial ,tut"r"nt. that are free from material misstatement,whether due to fraud or error; serecting and apprying app.ofriut. accounting poricies: and makingaccounting estimates that are reasonable in the.i."urriun".r.'
A adito t I s respo n sib it itJ)
our. responsibility is to express an opinion on these financial statements based on our audit. weconducted our audit in accordance with International Standards on Auditing. Those standards requirethat we comply with ethical requirements and plan una p".to.* the audit to obtain reasonableassurance whether the financial statements are free from material misstatement.
An.audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements. The.procedures serected depend on the auditor,s judgment, incruding theassessment of the risks of material misstatement of the financial statements, whether due to fraud orerror' ln making those rlsk assessments, the auditor considers internal control relevant to the entity,spreparation and fair presentation of the financial statements in order to design audit procedures thatare appropriate in the circumstances, but not for the purpose of "*pr"rJng
un opinlo, on tl,"effectiveness ofthe entity's internar control. An audit atro inctraes evaruating the appropriateness ofaccounting policies used and the reasonabreness of accounting estimates made by management, aswell as evaluating the overalr presentation ofthe financiar statements.
we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion.
Opinion
In our opinion, the accompanyingfinanciar statements give a fair view, in a materiar respects, of thefiNANCiAI POSitiON Of RST INTERNATIONAL TRAIiNC rrir), JAFZA, DUbAi. UAE, AS At MArCh31.'.2917 and of its financiar performance and its cash flows for the year then ended in accordancewith lnternational Financial Reporting Standards (lFRSs)
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rai Office: P.O. Box. 124671, Dubai _ U.A.E, Tel/Fax: 04 2263505rrjah Office: P.0. Box: 79312, Sharjah _ U.A.E, Tel: 06 55j2115
.l rY:ro.o 6rG/-n"l t2.a.t _ !+,\yi.\vr :._ -}- :,rir JjS..1oolr\\c:Jj!&,i.L.l -,GJLJI (vlrrr. a.!F : i-6JL!t .r:s.
MIRROR OF FINANCIAL HEALTH - GLOBALLY
Email : [email protected]
\:liL .- 1l d#r:l s+l".,.aJS a-6-:j1r+cAbdul Rahman Karmustaji Auditing
I r t,lt 1 r, rult n I A ud i t ors' Report (c,ont inuecl... I
Rtporl on other legal and regul tort- reqairemefits
As rcqLtircd by the provisions of the implernenting regulations issued by the Jebel Ali Free Zonen uthority l)ursuant to law No.9 of 1992 of H.H. Shaikh Maktoum Bin Rashid Al-Maktoum Ruler ofI)rrbai, IJAE, we confirm thall
r) 'l he establishment has maintained proper books ofaccounts;
ii) We have obtained all the information and explanations necessary for our audit;
iii)According to the information available to us, there were no contraventions during the year oftheabove mentioned law or the establishment Articles of Association 'which might have materialell'cct on the financial position ofthe establishment or the results of its operations for the year.
llc:;yr:c t.fitlly
Authorized SignatoryDubai, UAEDute: April 30, 2017
ubai Ollice: P.O Box. 12467'1, Dubai - U.A.E. Tet/Fax: 04 2263505
rarlah Oflice P.O. Box: 793'12, Sharjah - U.A.E, Tel: 06 55121'15
.i r I 1 r o . c .rsi / ._ijln .a.L.I - .ii, I y ! i \/ \ j.:_6 :er.risi.1 oc\\1\r ;.,,r,$,p.3.1 _ i.iflill ,Vlr \ \ ;-,;- .iji;JJt ,.:S.
MIPROR NF FINANCIAI HFAiTH - NI NRAt IV
IiS't INl'ERNATIONAL TRADING (FZE)l'. (). Ilox 18684,lcbcl AIi Free Zone, Dubai, UAEStatomcnt of Financial Position as at March 31 2017
ASSE'tSNoN - CURRENT ASSETS
Propefty, Plant & Equiprnent
CI.]RRENT ASSETS
Accounts and Other ReceivablesCash and Bank
TOTAL ASSETS
EQUITY & LIABILITIESOWNERS'EQUITY
Capital AccountRetained Earnings
CURRENT LIABILITIES
Due to Related PartyAccounts and Other Payables
TOTAL EQUITY & LIABILITIES
Note
3t-03-2017 3t-03-2016AED AED
3,886 2,51t3,886 2,511
1,866,005 2,556,826687,345 398,911
2,553J50 2,955,803
2,557,236 2,,958,314
500,000 500,0001,298,686 514,783
r,798,686 1,014,783
209,10 t 545,753549,449 1,39'1,178
758,550 1,943,531
2,557,236 2,958,314
t011
The uccompanying notes I to lgform an integral part of these finoncial statements.
The Report of the Auditols is set out on pages 3 & l.
These financial sratements on pages 5 to l7 were approved by the Managing Director on April 30,2017 and signed by;
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RST INTERNATIONAL TRADING (FZE)
8
9
RS'I' I N'I'ERNATIONAL TRADING (FZE)l'. (). lkrx 18684.fu'br:l Ali Free Zone, Dubai, UAES(atenlent of Profit or Loss and Other Comprehensive Income
ended March 31.2017
Itcvcnue
Cost ol Sales
Gross Profit
Other lncome
Oeneral & Administration Expenses
Depreciation
Nct Profit/(loss) for the year
Other Comprehensive Income
'[otal Comprehensive income/(loss) for the year
3t-03-20t7AED
14,07 I ,207
(t3,099,702)
31 -03 -20 t 6
AED
1 4,685,162
(13.142,87 5)
942,887
2,448
(430,324)
(228)
514,783
Nit
783,903 514,783
Note
t2
t3
l5
l5
7
971,50s
t99.521
(3 8s,986)
(1,137)
783,903
Nit
Thc utcontpanying notes I to l9 form an integrat part of these financial statements.
1'hc Raport of the Auditors is set out on pages 3 & 4.
These Jinancial sratements on pages 5 ro 17 were approved by the Managing Director on April 30,20I 7 and signed by:
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Managin\ DirectorRST INTERNATIONAL TRADING (FZE)
RS't' I N1'|.]ttNA'n()NAL TRADING (FZE)l'. O. lirr I tl68.l.lchcl Ali ['rce Zone, Dubai, UAESlntrlnenl of Changes in Equity
ended March 31. 2017
Sharc Capital introduced
'lolll corrrprehensive income for the period
[]alarrce as at March 3l, 2016
'lirtal oomprehensive income for the year
llalonce as at March 31, 2017
CapitalAccount
RetainedEarnings
Nil
5t4,783
514.783
J'otal
5 00,000
5 r4,783
I ,014,783
500.000
Nil
500,000
Nit 783,903 783.903
s00,000 1,298,686 1,798,686
'l hc atconrytunying notes I to l9 form an integral part of these financial statements.
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r{s't' rN't'ttRNATIONAL TRADING (FZE)l'. O. lhx l86tt.l.lchcl Ali l'rec Zone, Dubai, UAESlllernrlrt of Cash Flows
( )prrtt irrg Activities'l otal ('omprehensive income / (loss) for the year,,fu I j u ; I tttt, rr t,t fi tr.l)cprcc iat ion
Opcrating Profit/(Loss) before Working Capital changes( lncrcasc)/Decrease in Accounts and Other ReceivablesIttc rcrsc/( Dccrease) in Due Io Related Partylncrcasc/( Decrease) in Accounts and Other payables
Ncl Cash generated/(used) from Operating activities
lnvr:sting Activities(l\rrchase) of Property, Plant & Equipment
Ne( Cnsh generated/(used) from Investing Activitiesl'lnrncing ActivitiesSharc Capital introduced
Nel Cash generated/(used) from Financing activitiesNcl increase/(decrease) in cash and cash equivalents
Cash ald cash equivalents at the beginning ofthe year
Cnsh and cash equivalents at the end of the year
Ctsh and cash equivalenls reoresented by:('ush on L[emd('a.rh ot Bunk
3I-03-2017 31-03-20t6AED AED
783,903 514,781
1,137
785,040
690.82 |
(336.6s2)(848,32e)
290,880
515,011
(2,ss6.826)545.753
I ,397,718(98,284'l
(2,s12) (2,139)
(2,s12) (2,739)
NilNiI
288,368
398,977
687,,345
500,000
500,000
398,97'7
NiI
398,977
5 7tl681,632
687,345
2,596396,381
398,977
Thc uc'companying notes I to l9 form on integral port of these financial statements.
The Report of the Auditors is set out on pages j & l.
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I{S'I' IN'I-ERNATIONAL TRADING (FZE),lcDe I Ali Hrce Zone, Dubai, UAENolrs lo thc Financial Statementslirr thr cndcd March 31,2017
l)slablishnreni and Operations
"lts'l' INTERNATIONAL TRADING (FZE)" here-in-after called ,rhe Establishment, is aLirrrilcd t,iabilily Establishment and operating under Trade License No. 1470g6 issued by Jebel Alil;rcc zorrc Authority, Dubai, UAE. The registered address ofthe estabrishment is p.o. Box rg6g4..lchcl Ali Iiree Zone, Dubai. UAE
Mlrn1lgcment.l
he Managenrent and control of the establishment is vested with Mr. Keshav Sharan Sharmaregistcred in Jebel AIi Free Zone - UAE, (rndia Nationar), the Manager ofthe Estabrishment.
Share Crpital'lhc autlrorized, issued and paid up capital of the Establishment is AED 500,000 divided into 5sltares ol-AED 100,000 each. The details of shareholding as on the date of statement of financialposil ion are as follows:
l.
Nanre of the Shareholder
a) M/s. Rama Steel Tubes Ltd - India
4. Establishment Activities
6.
5.
Shareholding
100%
100%
Value ofShares(AED)
500,000
500,000
'l'hc Principal Activities of the Establishment are Building & Construction Materials Trading,lleady nrix concrete Trading, Special Fabrics & Fibers for construction Trading, constructionChemicals Trading Insulation & protection Materials Trading, Marble & Natural itones Trading,Paint & Varn ish Trading.
Rcporting period
These financial statements cover the year from April 01,2016 to March 3r,2017. The previousfinancial statement.cover the period from February lg,20l5 to March 31,2016.
Summary of Significant Accounting policies and Disclosurestt. Basis of Preparation
The financial statements have been prepared under historicar cost basis. The financialstatements are presented in Arab Emirate Dirhams (AED) and alr varues are rounded to thenearesr Arab Emirate Dirham. The principar accounting poricies adopted are set our berow.These policies have been consistently appried to alr the years presented, unress otherwisestated.
h. Stutt,ttrnt ofConplianct'fhe financial statements have been prepared in accordance with International FinancialI{cporting Standards (IFRS).
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Its t t N't'llltNA't't()NAL .IRADING (FZE)
Jcbel Ali l'rec Zone, Dubai, UAEN(,trs lo lhc [-inancial StatcmentsIior lhc yerr cnded March 31.2017
r ..klolttion of rtcu, ond revisecl International Financial Reporting Slcrnclorcls.'l'hc lbllowing new and revised standards including amendments thereto andwhich bccome effective for the current reporting period have been adopted.hls rrot had any signiticant inrpact on the amounts reported in these financial
interpretations
Their adoptionstatements but
tAS l2
il-'RS t0
IFRS ]2
IAS I9
IAS 27
IFRIC
IFRS I4
IAS 26
rrray allcct the financial reporting for future transactions or arrangements.
Off'setting Financial Assets and Financial Liabilities.
Consolidated Financial Statements (Amendments to Investment Entities).
Disclosure of Interest in Other entities (Amendments to Investment Entities).
Employee Benefits (Defined Benefits plans - Employee contributions).
Separate Financial Statements (Amendments to Investment Entities).
IAS 36 : Recoverable amount disclosures for Non-Financial Assets.
IAS 39 : Financial Instrumenls - Recognition and Measurement Amendments to IAS 39'Novation of derivatives,.
Levies
Regulatory Deferal Accounts
Fair Value discloses by Retirement Benefit plan
IFRS I I : Accounting for Acquisitions of Interest in Joint Operations
IAS l6 and LAS 38: clarification ofacceptabre method ofdepreciation and amortization.
IAS l6 and IAS 4l : Agriculture; Bearer plants.
IAS I :Disclosure lmitative
IFRS 10, IFRS l2 and IAS 28 : Investment Entities - Apprying the consoridation exception.
The following standards, amendments thereto and interpretations have been issued prior toDecember 31,2016 but have not been appried in these financiar statements as their adoptionare eft'eclive from future reporting periods. It is anticipated that their adoption in the rerevantaccounting periods will have impact only on disclosures within the financial statements.
IAS l2 :Recognitionof Def'erred rax Assets for unrealizcd losses - rstJanuarv20r7.
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t{s t tN'l'ERNA't,toNAL TRADING (FZE).lebcl Ali I'rcc Zonc, Dubai, UAEN0tcr to lhc l-lnancial Statemcntsf,irr llrc ^trtr cnrlcrl March 3l,Z\lj
lns II :Ilccognition of Deferred rax Assets for unrealized losses- ist Januarv20r7.
t
Oflice Equipmenr
llrllS 9 :Financial lnstrurnents - lstJanuary20lg
ll:RS I5 : Rcvenue from Contracts with customers _ ls1 January20lg.
lHlS l6 : Leases - lst January 2019.
llrRS I0 and IAS 28 : Sale of Contributio, of Assets between investor and its associate or.loirrt Venture - lst January 2020.
Ravcnue Recognition
lncome is recognized when it is eamed. not necessariry when received. The income has beenrccognized when invoices are .raised
and acknowredged by the customer. Expenses andcharges have been recognized when it was incurred, not-necessarity when paid.
Property, Plant & Equipment
l'ropcrty, Plant & Equipment is stated at cost less accumurated depreciation and identifiedinlp'irment rosses, if any. cost incrudes expenditure that is directly attributabre to thescquisition of the items incruding insta[ation costs. Subsequent costs are included in theasset's carrying amount or recognized as a separate asset,;s appropriate, only when it isprobable that future economic benefits associated with the iiem wi flow to the entity and thecost of the item can be measured reliably. A[ other repairs and maintenance expenses arecharged to the profit or loss during the reporting period in which they are incurred.
'l he depreciation is carculated on a straighfline basis over the estimated useful lives of theassets, as follows:
Years
5
The assets'residuar varues and usefur lives are reviewed at the end ofthe reporting period,with .the
effect of any changes in estimates adjusted on a prospective basis. An asset,scarrying amount is written down immediatery to iis recoverabre amount if the asset,s carryingarnount is greater than its estimated recoverable amount.
'lhe gains or losses arising on the disposal or retirement of an item of property, plant andcquipment is determined by comparing the disposal proceeds with the carrying amount of theassct alrd is recognized in the profit or loss.
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Its'l tN l'ltRNA't-t()NAL TRADING (FZE).lcbel Ali l'ree Zonc, Dubai, UAEN()lrs to the Financial Statementsl.or thc ycrr cndcd March 3l.Z0l7
,,1.. (, uttl,\ Rac e ivabIes
Accounts Receivables are alnounts due from customers for merchandise sold or servicespcrforrncd in the ordinary course of business. If collection is expected in one year or less (ori, the nornral operating cycle of the business if longer), they are classified as current assets.ll'not, they are presented as non-current assets. Trade receivables are initially recognized atIhir value and subsequently measured at amortised cost reduced by appropriate allowance lbrcstinrated doubtful debts.
Othcr Receivables
other Receivables are non-derivative financial assets with fixed or determinable paymentsthat are not quoted in an active market. They are included in the current assets, except formaturities greater than l2 months after the end of the reporting period. The entity,s otherreceivables comprises "cash and cash equivalents, deposits, prepayments and loans andadvances.
Cash and cash equiyalents
Cash and cash equivalents comprise cash on hand and bank deposits free of encumbrancewith a maturity date of three months or less from the date of deposit and other short-tennhighly liquid investments with a maturity date of three months or less from the date ofinvestments.
Account payables
Account payables are obligations to pay for goods or services that have been acquired in theordinary course of business from suppliers. Account payabre are classified as currentliabilities if payment is due within one year of ress (or in the normar operating cycre of thebusiness if no longer). If not, they are presented as non-current liabilities. Account payablesare recognized initially at fair value and subsequently are measured at amortised cost usingeffective interesJ method.
Other Payables
other payables represents current payables other than dividend payables and tar payables.These payables are expected to mature within one year or an operating cycle, which ever is nolonger. Other payables includes payables to employees, accrued expenses and duties.
Provisions
Provisions are recognized when the entity has a present legal or constructive obligation as aresult of past events; it is probable that an out low of resources embodying economic benefitswill be required to settle the obligation; and a reliable estimate aan be made of the amount ofthe obligation. The expense relating to any provision is recognized in the profit or ross, net ofany reimbursement.
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IIS'I' IN'TItRNATIONAL TRADING (FZE),lcbcl Ali l'rec Zone, Dubai, UAENr)t(,s l() lhc !'inancial Statementslirl lhr ycrr cndcd March 3f. 2017
I i rL, i 14t r (' u rra ncy Transactions
lr,rcigrr currcncy trar'lsactions are recorded in UAE Dirham at the approximate rate oferchangc ruli,g at the time of the transaction. Assets and liabilities expressed iri foreigncurrcncies at the statement of Financial position date are converted to uAE Dirham at theycar end rate of exchange. All foreign currency gains and losses are booked in the statementol incunrc as they arise.
lin t pl oyc c s' Te r minal Benefi ts
N. provision is made in accounts for end of service benefits due to emproyees in accordancewith UAE federal labour laws no. (8) year I9g0.
I'nfit urul Loss account
'l he entity's profit or loss is arrived at after charging alr expenses incurred in day to dayopcrations ofthe business and in maintaining property, plant and equipment.
Rounding off'l'he tigures stated in the attached financial statements are rounded off to the nearest uAEDirhan.
l,'t i r Vu I ue of fi nanc ial instrumen ts
'l'he value of all classes of financial assets and financial liabilities, as recorded in thest&tement of Financial Position approximate the fair value ofthese assets and liabilities.
q. (icneral
ln the opinion of the management all the assets as shown in the financial statements arecxisting and realizable at the amount shown against and there are no liabilities againsi the0ltity contingent or otherwise not included in the above Financial Statement.
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RS t tN t'ut{NA'ilONAL TRADING (rZE).lt bcl Ali Fruc Zone, Dubai, UAENol(s lo thc ['inancial Statementsl,irl lhe cnded March 3l,2Ol77 I'rr)prrty, I,lnnt & Equipment
(irst:n s ll March I l. 201 6
Add it ions lbr the year
As at March 31. 2017
Accumulated Depreciation :
As ll March 3 I . 201 6
('hrrrgc f'or the year
As rrl March 31, 2017
:
2017
2016
OfficeEquipment
, 710
Total
2,739
2.512 2.512
5 ,251 5,251
228
l,ll7 I,t371,365 1,365
228
3,886 J,886
2.511 2.s11
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IIS'I' INTI]RNATIONAL TRADING (FZE)Jrbcl Ali lirrc Zone, Dubai, UAENol0r lo thc J-innncial Statementslirr lhc .ycrr cndetl March 3l.z0l7
ll. A(c(lunls Ind (Jther Receivables'I rnrlc l{cceivablesAtlvuncc to Supplierl)rcpirvrnerrt
I)cposilsOthcr lLccc ivables
9, Cnsh and Brnk('nsh on lland(-$sh r|t Uank
.
Due to Related PartyRama Steel Tubes Ltd (lndia)
Accounts and Other Payables'frade payables
Advance from customersSalary Payable
Other payable
RevenueSales
3I-03-20t7AED
1,489.765
330.462
24,850
t7.476I 4s'
31-03-20t6AED
2,t02,450413,1 33
32,817
8,426
Nil1,866.005 2.5s6.826
5,1t3 , sq6
681,632 396.38168734s 398.977
10. Rclatcd Party Transactions
'fhc llstablishment has in the ordinary course of business, entered into certain revenue andljnancial transactions with entities which fall within the definition of related parties as containedin lntcrnational Financial Reporting Standards (IFRS). The management decides on the termsand conditions ofthe transactions and services received / rendered from/to related parties as wellts on other charges.
'l hc listablishment provides / receives funds to/from rerated parties as and when required asworking capital. The balance due from/due to such parties which have been disclosed below arerunsccured and repayable on call.
209,t0t209.r0I
439
541 ,5 10
s,500
2,000
545,753
____l15l5t_
1,217,008
171 ,0707,500
2,200
12.
549.449 t-397.77&
14,071,207 14,685.76214.071.207 14.68s-762
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U
ti
;
1'
T
t(!i l tN I t, t{N1,r.l( )NAt, l.ttAI)tN G (FZE).lrhel All l lcr.7,ont, I)uhai, tJAIINol(.rr lo lh(. l.intnri11l Slitlenrrnts
I
I
l'r,r lh(. li tr. cnrlctl March Jl.20l7
I | ('ort ol srrlcsl,rlcltlscs wilh (iirect e\penses
l.l. ( )thcr l nconrelr()rcign llxchange Gain
15. (lcncral & Administration Exp€nsesSnltrics & Allowances'l rnvclling & Conveyancellenrllusiness prornotion(irnmun ication expensesLegal, License & professional chargesVisn & lnsurancellank charges( )llice expenses
13.099.702 t174) R-7<
73,099,702 t3.742.87s
199.521 ) tta
31 -03-201 7
AED
145,757
80,633
51,14242,12226,97014,080
12,122
8,658
31-0J-20t 6
AED
l0t,972142,223
53,7 67
39,049
3 1,3 I040,503
5,983
11,4364,502
38s,986 430.324
l(r. Flnancial Risk Factors(i) ('rcdit Risk
'inanciar assets, which potentially subject the estabrishment to credit risk, comprises mainlyof bank barances & receivabres. Bank tarances u.. *itt, ..grtut"o financiar institutions, .fhe
management of the establishment is taking continuous follow up measures to recover trre
lffiLlli: * credit period allowed. ThL,r"g"r"r, believes that,"""iruUt"r-u." r,,try
(ii) Interest Rate Risk
The estabrishment does not avaired any bank roan from banks or any other financiarinstitution as on reporting date, hence thelntere.t,"t"-.;rt is minimum.(iii) Market risk
Market risk is the risk that the fair varue of future casrr lrows of a financiar instrument wi,fluctuate because of changes in market prices, such u, .*.hung" rate risk. interest rate riskor orher price risk. which will affecr the esrabtishmentis irflnancial instruments.
Lrc Esrilousnment,s lncome or the value of its holding of
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r{s't lNTl,tRNAT|ONAL TRADING (rZE).lrhcl Ali l'rce Zone, Dubai, UAENotcs to the Financial Statem€nts'For thc year ended March 31,2017
t1 .
Financial instruments affected b), market risk include interest-bearing loans and borrowings,deposits, financial assets at fair value through other contprehensive income. The objectiveof market risk management is to manage and control market risk exposures withinacceptable parameters, while optimizing the return.
tivl Liquidity risk
Liquidity risk is the risk that the establishment will not be able to meet financial obligationsas they fall due. The liquidity requirements are monitored on a regular basis by the ownersand the management who ensure that sufficient funds are made available to the
establishment to meet any future commitments.
(t't LxLhunge Ratc Risk
'l'lrere were no significant exchange rate risks as most of the financial assets and liabilitiesare denominated in UAE Dirhams.
l-innncial instruments: Fair value
lrinancial instruments comprise of financial assets and financial liabilities. The fair value of the
cstah I ish rnent's financial assets comprising ofdeposits and bank balances and financial liabilitiesconrprising of accruals approximate to their carrying values.
('ontingcnt Liability
l')xccpt lor the ongoing business obligations which are under normal course of business againstwhich no loss is expected, there has been no other known contingent liability or capitaleonlrnitnrent on establishment's accounts as ofdate of statement of financial position.
Slgnllicant events after the date of statement of financial position
'l ltcrc were no significant events occurring after the date of statement of financial position whichrctlrire disclosure in the financial statements.
'I'lk ut'c'ontpunying notes I to l9 form an integral part of these rt.nancial statements.
'l hr Rcport of the Auditors is set out on pages 3 & 4.
'lhr,sr .linurrciul ,slatements on pages 5 to l7 t,ere approved by the Managing Direclor on April 30,
:t) l' nl .\iNtrcJ hy..
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Muunging\Dircctor
18.
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RSI' INTERNATIONAL TK4DING (FZE)
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