We have audited the accompanying Standalone Financial Statements of Sindhu Trade Links Limited (“the
Company”), which comprise the Balance sheet as at March 31, 2025, the Statement of Profit and Loss,
including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of
Changes in Equity for the year then ended, and notes to the Standalone Financial Statements, including a
summary of significant accounting policies and other explanatory information. (herein after referred to as
Standalone Financial Statement).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid
Standalone Financial Statements give the information required by the Companies Act, 2013, as amended (“the
Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting
Standards prescribed under section 133 of the Act read with Companies (Indian Accounting Standards) Rules,
2015, as amended, (Ind AS”) and other accounting principles generally accepted in India, of the state of affairs
of the Company as at March 31, 2025, its profit including other comprehensive income, its cash flows and the
changes in equity for the year ended on that date.
BASIS FOR OPINION
We conducted our audit of the Standalone Financial Statements in accordance with the Standards on Auditing
(SAs), as specified under Section 143(10) of the Act. Our responsibilities under those Standards are further
described in the ‘Auditors’ Responsibilities for the Audit of the Standalone Financial Statements’ section of
our report. We are independent of the Company in accordance with the ‘Code of Ethics’ issued by the Institute
of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the
Standalone Financial Statements.
EMPHASIS OF MATTERS
We draw your attention to note no. 25 to the standalone Ind AS financial statements with respect to closing
balance of trade payables as on 31 March 2025. The Company has closing balance of Rs. 733.80 lakhs as on
31 March 2025 related to micro enterprises and small enterprises (MSME). The management has informed
that there are issues w.r.t deliveries of material received, that includes qualitative and time aspect, from the
creditors and the same is under review with creditor(s). The Company will pay the amount, as mutually decided
with creditors, after discussions in due course. The above does not have material effect on the financial
statements of the Company. Hence, no provision for any consequential liability for interest and penalty has
been made in the financial statements for the year ended 31 March 2025.
Our Report is not qualified in respect of this matter.
KEY AUDIT MATTERS
Key audit matters (‘KAM’) are those matters that, in our professional judgment, were of most significance in
our audit of the standalone financial statements of the current period. These matters were addressed in the
context of our audit of the standalone financial statements, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
1. Key Audit Matter
Investments
The Company has invested in equity and preference shares and government bonds as well, the carrying amount
of which is calculated by the management in accordance with Ind AS 32, 107 and 109 provided in Note 5 and
Note 15 of the financial statements.
Considering the materiality of the amounts involved, the significant management judgment is required in
estimating the quantum of diminution in the value of investments and such estimates and judgments being
inherently subjective, this matter has been identified as a key audit matter which is described in Note 2(j) to
the standalone financial statements. As at 31st March 2025, the company has made total foreign investments
in subsidiary of Rs. 69,627.96 Lakhs, which were recorded at cost based on the valuation of overseas assets
held by overseas subsidiary including overseas stepdown subsidiaries.
Auditor’s Response
Our audit procedures assessed the appropriateness of methodology and valuation model used by management
to estimate the value of investments.
Based on our procedures, we considered the adequacy of disclosures in respect of investments in the notes to
the standalone financial statements.
2. Key Audit Matter
Conversion of Loan into Equity in an Overseas Subsidiary
During the year, the Company converted a portion of its outstanding loan and advances amounting to USD
24.39 million (equivalent to ?21,211.98 lakhs), granted to its overseas subsidiary, Param Mitra Resources Pte
Limited (PMR), Singapore, into equity shares of Param Mitra Resources Pte Limited (PMR). The balance
outstanding loan, including interest, as at year-end amounted to ^ 11,091.23 lakhs.
This transaction was undertaken considering the financial condition of the subsidiary and the Group's long¬
term strategic interest. The conversion involved significant management judgment in assessing the
recoverability of the loan, determination of fair value of equity instruments issued, compliance with FEMA
and other regulatory requirements, and presentation in accordance with applicable accounting standards.
Auditor’s Response
Our audit procedures included and were not limited to the following:
• Obtained an understanding of the nature and terms of the loan and the subsequent conversion to equity.
• Evaluated the Company’s assessment of the financial condition of the subsidiary and its rationale for the
conversion.
• Verified the board approvals, request letters, assessment plan and compliance with relevant regulatory
requirements including FEMA and overseas investment guidelines related to the conversion transaction.
• Evaluated the accounting treatment and disclosures made in accordance with Ind AS 109 and Ind AS 110.
• Inspected underlying documents and performed analytics to determine reasonableness of the financial
situation and action taken.
• Reviewed disclosures in the financial statements for adequacy and transparency.
3. Key Audit Matter
Evaluation of Uncertain Tax Positions & Other Contingent Liabilities
The Company has material uncertain tax positions including matters under dispute which involves significant
judgment to determine the possible outcome of these disputes.
The Company also has material contingent liabilities including outstanding guarantees, counter guarantees and
omnibus counter guarantees to various banks and claims against the company under dispute which involves
significant judgment to determine the possible outcome of these disputes as mentioned in Note 40 to the
standalone financial statements.
Auditor’s Response
Obtained details of completed tax assessments and demands till the year ended March 31, 2025 from the
management. We involved our internal experts to challenge the management’s underlying assumptions in
estimating the tax provision and the possible outcome of the disputes. Our internal experts also considered
legal precedence and other rulings in evaluating 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 management for recognizing the
guarantees.
• Evaluation of purposes for which the various bank guarantees are provided.
• Our internal experts read and analysed external legal opinions/ consultations by management for the
disputes pending in various forums.
• Discussed with appropriate senior management regarding the claims against the company and assessment
orders.
• Assessed management’s estimate of the possible outcome of the disputed cases.
4. Key Audit Matter
Related Party Transactions
During the year, the Company has generated major portion of revenue and has incurred significant amount of
expense with the related parties.
Ind AS 24 “Related Party Disclosures”, requires substantive disclosures for the related party transactions which
are disclosed in Note 47 to the standalone financial statements.
Determination of substance of the transactions and transaction price for such related party transactions is a key
audit matter considering the significance of the transaction value and the significant judgments involved in
determining the transaction value.
Auditor’s Response
• Our audit procedures included considering the compliance with the various requirements for entering in
to such related party transactions.
• We performed test of controls over related party transactions through inspection of evidence of
performance of these controls.
• We performed the following tests of details:
o We have evaluated the relevant work orders and market price.
o We have read the approvals obtained from Audit Committee, Board of Directors and
Shareholders for the transactions.
• We have assessed the disclosures to be made in accordance with Ind AS 24 “Related Party Disclosures”.
INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITORS’ REPORT
THEREON
The Company’s Board of Directors is responsible for the other information. The other information comprises
the information included in the Annual Report, but does not include the Standalone Financial Statements and
our auditors’ report thereon.
Our opinion on the Standalone Financial Statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other
information and, in doing so, consider whether such other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If,
based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
RESPONSIBILITIES OF MANAGEMENT FOR THE STANDALONE FINANCIAL STATEMENTS
The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with
respect to the preparation of these Standalone Financial Statements that give a true and fair view of the financial
position, financial performance including other comprehensive income, cash flows and changes in equity of
the Company in accordance with the accounting principles generally accepted in India, including the Indian
Accounting Standards (Ind AS) specified under Section 133 of the Act read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company
and for preventing and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgements and estimates that are reasonable and prudent; and the design,
implementation and maintenance of adequate internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation
of the Standalone Financial Statements that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
In preparing the Standalone Financial Statements, management and Board of Directors are 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.
Those Board of Directors are also responsible for overseeing the Company’s financial reporting process
AUDITORS’ RESPONSIBILITIES FOR THE AUDIT OF THE STANDALONE FINANCIAL
STATEMENTS
Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ 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 SAs 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 Standalone
Financial statements.
As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional
scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Standalone 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 financial control relevant to the audit in order to design 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 has adequate internal financial
controls with reference to financial statements in place and the operating effectiveness of such controls.
• 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 auditors’ 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 auditors’
report. However, future events or conditions may cause the Company to cease to continue as a going
concern.
• Evaluate the overall presentation, structure and content of the Standalone Financial Statements,
including the disclosures, and whether the Standalone Financial Statements represent the underlying
transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in
aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone
financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i)
planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect
of any identified misstatements in the standalone financial statements.
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.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the standalone financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not
be communicated in our report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communication.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central
Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the “Annexure 1” a
statement on the matters specified in paragraphs 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 best of 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 the Company 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 Other Comprehensive
Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in
agreement with the books of account;
(d) In our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards
specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as
amended;
(e) On the basis of the written representations received from the directors as on March 31, 2025 taken on record
by the Board of Directors, none of the directors is disqualified as on March 31, 2025 from being appointed as
a director in terms of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company with
reference to these Standalone Financial Statements and the operating effectiveness of such controls, refer to
our separate Report in “Annexure 2” to this report. Our report expresses an unmodified opinion on the
adequacy and operating effectiveness of the Company’s internal financial controls over financial reporting.
(g) In our opinion and to the best of our information and according to the explanations given to us, the Company
has not paid any remuneration to its directors during the year.
(h) With respect to the other matters to be included in the Auditors’ Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information
and according to the explanations given to us:
i. The Company has disclosed the possible impact of pending litigations on its financial position in its
Standalone Financial Statements;
ii. The Company do not have any long-term contracts including derivative contracts for which there
were any material foreseeable losses;
iii. The Company do not have any dues on account of Investor Education and Protection Fund.
iv. (a) The Management has represented that, to the best of its knowledge and belief, , during the year
no funds (which are material either individually or in the aggregate) have been advanced or loaned or
invested (either from borrowed funds or share premium or any other sources or kind of funds) by the
Company to or in any other person or entity, including foreign entity (“Intermediaries”), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly
or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which
are material either individually or in the aggregate) have been received by the Company from any
person or entity, including foreign entity (“Funding Parties”), with the understanding, whether
recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest
in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party
(“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the representations
under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material
misstatement.
v. The Company has not declared or paid any dividend during the year.
vi. As per on our examination which included test checks, the Company has used accounting software
for maintaining its books of account for the financial year ended March 31, 2025 which has a feature
of recording audit trail (edit log) facility and the same has been operated throughout the year for all
relevant transactions recorded in the respective software. Further, during the course of our audit , we
did not come across any instance of the audit trail feature being tampered with and the audit trail has
been preserved by the Company as per the statutory requirements for record retention.
For NGC & Associates LLP
Chartered Accountants
FRN:- 033401N/N500351
Parduman Biji
Partner
M. No:- 095023
UDIN:- 25095023BMKZQO4726
New Delhi
Date:- 30/05/2025
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