Corporate Information:
Sujala Trading and Holdings Limited is a Company limited by shares, incorporated and domiciled in India. The Company is
primarily engaged in the business of investment in Share & Securities and registered with the RBI as Non-Banking Financial
Company and offers loans and other credit facilities and private funding etc. Equity shares of the Company are listed on BSE
Limited and The Calcutta Stock Exchange Limited. The registered office of the Company is located at 1A, Grant Lane, 2nd
Floor, Room No: 202, Kolkata 700 012, West Bengal, India.
Note-2
Statement of Compliance and Recent Pronouncements:
Basis of Preparation and Compliance with Ind AS
The Company has adopted Indian Accounting Standards (referred to as “Ind AS”) notified under the Companies (Indian
Accounting Standards) Rules, 2015 (as amended) read with Section 133 of the Companies Act, 2013 (“the Act”) with effect
from April 1, 2017 and therefore Ind ASs issued, notified and made effective till the financial statements are authorized have
been considered for the purpose of preparation of these financial statements.
The Company has followed the provisions of Ind AS 101(Ind AS 101) in preparing its Ind AS Balance Sheet. In accordance
with Ind AS 101
Recent Pronouncements
In March 2017, Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules,
2017, notifying amendments to the Ind AS 7 ‘Statement of Cash flows’ and Ind AS 102, ‘Share - Based Payment’ which are
applicable w.e.f. 1st April, 2017.
The amendment to Ind AS 7 “Statement of Cash Flows” requires the entities to provide disclosures that enable users of
financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash
flows and non-cash changes. The effect of this amendment on the financial statements of the Company is being evaluated.
Note-3
Significant Accounting Policy:
1. Basis of Accounting
The Financial Statements have been prepared under the historical cost convention excepting certain financial instruments which
are measured in terms of relevant Ind AS. The accounts have been prepared on the concept of going concern. All Assets and
Liabilities have been classified as current or non-current as per the operating cycle and other criteria set out in Ind AS 1
‘Presentation of Financial Statements’ and Schedule III to the Companies Act, 2013.
Further, the Company follows prudential norms for Income Recognition, assets classification and provisioning for Non¬
performing assets as well as contingency provision for Standard Assets as prescribed by the Reserve Bank of India (RBI) for
Non-Banking Financial Companies.
2. Inventories:
Inventories of shares and other trading goods are valued at cost computed on FIFO Basis or net realisable value, whichever is
lower.
3. Recognition of Income and Expenditure:
Income and expenditure are accounted for on accrual basis. Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the rate applicable. Dividend income is recognized when the shareholder’s right to receive
payment is established by the balance sheet date.
4. Depreciation on Fixed Assets:
Depreciation on Fixed Assets has been provided based on useful life assigned to each asset prescribed in accordance with Part -
"C" of Schedule-II of the Companies Act, 2013.
5. Fixed Assets:
Fixed Assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price
and any attributable cost of bringing the asset to its working condition for its intended use.
6.Impairment of Assets:
The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on
internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is the greater of the asset's net selling price and value in use. In assessing the value in use, the
estimated future cash flows are discounted to their present value at the weighted average cost of capital.
After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life.
7.Financial Assets and Financial Liabilities:
Financial Assets and Financial Liabilities (financial instruments) are recognised when the Company becomes a party to the
contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial Liabilities (other than financial assets and financial liabilities at fair value
through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as app ropriate,
on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair
value through profit or loss are recognised immediately in the Statement of Profit and Loss.
The financial assets and financial liabilities are classified as current if they are expected to be realised or settled within operating
cycle of the company or otherwise these are classified as non-current.
The classification of financial instruments whether to be measured at Amortized Cost, at Fair Value through Profit and Loss
(FVTPL) or at Fair Value through Other Comprehensive Income (FVTOCI) depends on the objective and contractual terms to
which they relate. Classification of financial instruments are determined on initial recognition.
i. Cash and cash equivalents
All highly liquid financial instruments, which are readily convertible into determinable amounts of cash and which are
subject to an insignificant risk of change in value and are having original maturities of three months or less from the
date of purchase, are considered as cash equivalents. Cash and cash equivalents includes balances with banks which are
unrestricted for withdrawal and usage.
ii. Financial Assets and Financial Liabilities measured at amortised cost
Financial Assets held within a business whose objective is to hold these assets in order to collect contractual cash flows
and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding are measured at amortized cost.
iii. Financial Asset at Fair Value through Other Comprehensive Income (FVTOCI)
Financial assets are measured at fair value through other comprehensive income if these financial assets are held within
a business whose objective is achieved by both collecting contractual cash flows and selling financial assets and the
contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding. Subsequent to initial recognition, they are measured at fair value and
changes therein are recognised directly in other comprehensive income.
iv. Investment in Subsidiaries, Joint Ventures and Associates are being carried at deemed cost/at cost.
v. Impairment of financial assets
A financial asset is assessed for impairment at each balance sheet date. A financial asset is considered to be impaired if
objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of
that asset.
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