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RST TNTERNATTONAL TRADTNG (FZE)
JEBET ALt FREE ZONE, DUBAt, UAE
AUDITORS' REPORT & FINANCIAL STATEMENTS
MARCH 31,2019
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LeodByExcerence Muxims Auditors
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RST TNTERNATTONAL TRADTNG (FZE)
P. O. Box 18684
Jebel Ali Free Zone, Dubai, UAE
Report of the Director
The Director has pleasure in presenting his report together with the audited financial statements ofthe establishment for the year ended March 31, 2018.
Legal Status
"RST INTERNATIONAL TRADING (FZE)" here-in-after called 'the Establishment' is a Limited LiabilityEstablishment and operating under Trade License No.147086 issued by Jebel Ali Free Zone
Authority, Dubai, UAE. The registered address of the establishment is P.O. Box t8684, Jebel Ali Free
Zone, Dubai, UAE
Principal Activities
The Principal Activities of the Establishment are Building & Construction Materials Trading, Ready
mix Concrete Trading, Special Fabrics & Fibers for Construction Trading, Construction ChemicalsTrading lnsulation & Protection Materials Trading, Marble & Natural Stones Trading, Paint & VarnishTrading.
Results of Operation
Net Profit for the year of the establishment was AED 1,,477 ,87 4/-
(Amount in AED)
31-03-2018 3L-03-2017
L9,466,78L t4,07t,207Revenue
Gross ProfitGross Profit (%)
Net ProfitNet Profit (%)
L,344,6986.9t%
L,477,8747.59%
971,505
6.90%
783,903
5.57%
Director's Responsibility
The Director is responsible for the preparation and fair presentation of these financial statements inaccordance with lnternational Financial Reporting Standards and for such internal control as
management 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 director is responsible for keeping proper financial records in line with laws,
rules and regulations of Jebel Ali Free Zone Authority, UAE for taking reasonable steps to safeguardthe assets of the 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 likelyto affect, substantiallythe result of the operations orthe financial position of the establishment.
:L:
RST TNTERNATTONAL TRADTNG (FZE)
Jebel Ali Free Zone, Dubai, UAE
Report of the DirectorAuditors
The independent auditors, Maximswillingness to continue in office and a
General Meeting.
Auditors & Consultants, Dubai,
resolution to re-appoint them willUAE have expressed theirbe proposed at the Annual
On behalf of the Board of Director
:2:
,DGivel Hond lo Succers
,-F..iiiLsiJS & j;S:irgl g.....a{SL.
Muxims Auditors
IN DEPENDENT AUDITORS' REPORT
TO THE SHAREHOLDER OF RST TNTERNATTONAL TRADTNG (FZEI, IAFZA,, DUBAI, UAEReport on the finoncial statements
We have audited the accompanying financial statements of RST INTERNATIONAI TRADING lFZEl,)AFZA, Dubai, UAE, which comprise the statement of financial position as at March 31., 2018, thestatement of profit or loss and other comprehensive income, statement of changes in equity,statement of cash flows for the year then ended, a summary of significant accounting policies andother explanatory notes related to the financial statements.
Monogement's responsibility for the financiol stotements
Management is responsible for the preparation and fair presentation of these financial statementsin accordance with lnternational Financial Reporting Standards (lFRSs) and with the applicableprovisions of implementing regulations issued by the Jebel Ali Free Zone Authority Pursuant of lawNo.9 of L992 of H.H. Shaikh Maktoum Bin Rashid Al Maktoum Ruler of Dubai, UAE. Thisresponsibility includes: designing, implementing and maintaining internal control relevant to thepreparation and fair presentation of financial statements that are free from material misstatement,whether due to fraud or error; selecting and applying appropriate accounting policies; and makingaccounting estimates that are reasonable in the circumstances.
Au d ito r's resp onsi bil ity
Our responsibility is to express an opinion on these financial statements based on our audit. Weconducted our audit in accordance with lnternational Standards on Auditing. Those standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor's judgment,including the assessment of the risks of material misstatement of the financial statements, whetherdue to fraud or error. ln making those risk assessments, the auditor considers internal controlrelevant to the entity's preparation and fair presentation of the financial statements in order todesign audit procedures that are appropriate in the circumstances, but not for the purpose ofexpressing an opinion on the effectiveness of the entity's internal control. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of accountingestimates made by management, as well as evaluating the overall presentation of the financialstatements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion.
4 2253534, Mob: +971 52 4858702, Flat: 605 - 6th Floor, Damas Building, Al Maktoum Road, Deira, Dubai - U.A.E.
E-mail: [email protected], Web: www.maximsauditors.ae
tDGivel Hond lo Sutcess
,#J;AJ.,*,39S & j13idry I o'l,.sr..S t
Moxims Audilors
I n d e pe nd e nt Au dito rs' Re port (conti nue d...)
Opinion
ln our opinion, the accompanying financial statements give a fair view, in all material respects, ofthe financial position of RST INTERNATIONAL TRADING (FZE), JAFZA, Dubai, UAE, as at March 31,
2018 and of its financial performance and its cash flows for the year then ended in accordance withI nternational Financial Reporting Standards (lFRSs).
Report on other legol and regulotory requirements
As required by the provisions of the implementing regulations issued by the Jebel Ali Free Zone
Authority Pursuant to law No.9 of 1992 of H.H. Shaikh Maktoum Bin Rashid Al-Maktoum Ruler ofDubai, UAE, we confirm that;
i) The establishment has maintained proper books of accounts;
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 of theabove mentioned law or the establishment Articles of Association which might have materialeffect on the financial position of the establishment or the results of its operations for the year.
Respectf ully
-e -971 4 2253534, Mob: +97,l 52 48587A2, Flat: 605 - 6th Floor, Damas Building, Al Maktoum Road, Deira, Dubai - U.A.E.
E-mail: [email protected], Web: www.maximsauditors'ae
Maxims Auditors &Registratio)Ao:f5
Dote: May 74,201.8
RST TNTERNATTONAL TRADTNG (FZE)
P. O. Box 18684Jebel Ali Free Zone, Dubai, UAE
Statement of Financial Position as at March 31, 2018
ASSETS
NON - CURRENT ASSETS
Property, Plant & Equipment
CURRENT ASSETS
Accounts and Other Receivables
Cash and Bank
TOTAL ASSETS
EQUlTY & LIAB!LITIES
OWNERS'EQUIW
CapitalAccountRetained Earnings
CURRENT LIABILITIES
Due to Related PartyAccounts and Other Payables
TOTAL EQUIW & LIABILITIES
Note
7
10
L7
500,0002,776,560
500,000L,298,686
31-03-2018 3L-03-2017
AED AED
32,7!6 3,886
3,88632,7L6
L,730,9931,998,2L83,629,211.
3,66L,927
1,866,005
687,345
2,553,350
2,557,236
3,276,560 1,799,696
2L8,397766,976
209,707549,449
385,367 758,550
?,661.,927 2,557,236
The occomponying notes 1to L9 form on integral part of these financiol statements.
The Report of the Auditors is set out on pages 3 & 4.
These financiol statements on pages 5 to L7 were approved by the Managing Director on May L4,2018 and signed by:
:5:
RST TNTERNATTONAL TRADTNG (FZE)
P. O. Box 18684Jebel Ali Free Zone, Dubai, UAEstatement of Profit or,Loss and other comprehensive !ncome
ended March 31,2019
Revenue
Cost of Sales
Gross Profit
Other lncome
General & Administration Expenses
Depreciation
Net Profit/(loss) for the yearOther Comprehensive lncomeTotal Comprehensive income/(loss) for the year
Note
L2
13
i1-03-2018AED
19,466,79L
(19,L22,093)
L,344,699
4t!,607
(272,768',)
(5,647)
L,477,974
31-03-2017
AED
L4,07L,207
(13,099,7021
971,505
tgg,52t
(385,986)
(L,t37l793,903
t4
15
7
L,477,974 783,903
The accomponying notes L to 79 form on integral part of these finoncial stotements.
The Report of the Auditors is set out on poges 3 & 4.
These finoncial statements on pages 5 to 17 were opproved by the Monaging Director on Moy 74,2078 ond signed by:
a
a
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RST TNTERNATTONAL TRADTNG (FZE)
P. O. Box 18684
Jebel Ali Free Zone, Dubai, UAE
Statement of Changes in, EquityFor the year ended March 31, 2018
raEIEr66Fr&iEGriEiIEi
Ett=rtl=llLrIbHEE
EE
E
Capital
AccountRetained
Earnings
5L4,783
783,903
Total
Balance as at March 3L, 20tG
Total comprehensive income for the yearBalance as at March 3L, 2O!7
Total comprehensive income for the yearBalance as at March 31, 2018
500,000 L,0r4,793
783,903500,000 L,2gg,6g6
L,477,874
t,799,696
L,477,874
_Eqgpoo_ _2J76,s6o_ _L,276&_
The occomponying notes 1 to 79 form an integral part of these financial stotements.
The Report of the Auditors is set out on pages 3 & 4.
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RST TNTERNATTONAL TRADTNG (FZE)
P. O. Box 18684
Jebel Ali Free Zone, Dubai, UAE
Statement of Cash Flows
F#.F6EEFCrGtAr+tGItr&r&iEi6frEiEtETdEifiGTdddcid
aSItrisisi
For the year ended March 31. ZO18
Operating ActivitiesTota! Comprehensive income / (loss) for the yearAdjustments for:Depreciation
Operating Profit/(Loss) before Working Capital changes(lncrease)/Decrease in Accounts and Other Receivableslncrease/(Decrease) in Due to Related partylncrease/(Decrease) in Accounts and Other payables
Net Cash generated/(used) from Operating activitieslnvesting Activities(Purchase) of Property, Plant & EquipmentNet Cash generated/(used) from lnvesting ActivitiesNet increase/(decrease) in cash and cash equivalentsCash and cash equivalents at the beginning of the yearCash and cash equivalents at the end of the year
Cash ond cosh equivolents represented hv:Cash on HandCash ot Bonk
31-0i-2018 31-03-2017AED AED
t,477,974
5,647
1.,483,521
!35,Ot29,290
(382,473)
1,245,35O
(34,477)
1t4,47717,210,973
687,345
793,903
L,L37
785,04O
690,82L(336,652)
(848,329)
290,990
(2,52L1
(2,52L1
2gg,35g
398,977
__1,8e8,219_ ___egzl3!g_
20,309L,877,910
5,77368L,632
-!,898219_ -987,34sThe accompanying notes 1. to 19 form an integrol part of these finonciol statements.
The Report of the Auditors is set out on pages g & 4.
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RST r NTERNATTONAL TRADT NG (FZEI
Jebel AIi Free Zone, Dubai, UAE
Notes to the Financial StatementsFor the year ended March 31, 20181. Establishment and Operations
"RST INTERNATTONAL TRADTNG (FZEI" here-in-after called 'the Establishment' is a LimitedLiability Establishment and operating under Trade License No.147086 issued by Jebel Ali Free
Zone Authority, Dubai, UAE. The registered address of the establishment is P.O. Box 18684, Jebel
Ali Free Zone, Dubai, UAE
2. Management
The Management and control of the establishment is vested with Mr. Keshav Sharan registeredin Jebel Ali Free Zone - UAE, (lndia National), the Manager of the Establishment.
3. Share Capital
The authorized, issued and paid up capital of the Establishment is AED 5OO,O00 divided into 5shares of AED 100,000 each. The details of shareholding as on the date of statement of financialposition are as follows:
Value ofName of the Shareholder
a) M/s. Rama Steel Tubes Ltd - lndiaShareholding
100% 500,000
4.
5.
6.
Establishment Activities
The PrincipalActivities of the Establishment are Building & Construction Materials Trading, Ready
mix Concrete Trading, Special Fabrics & Fibers for Construction Trading, Construction ChemicalsTrading lnsulation & Protection Materials Trading, Marble & Natural Stones Trading, Paint &Varnish Trading.
Reporting period
These financial statements cover the year from April Ot,2Ot7 to March 31, 2018. The previousfinancial statement cover the period from April OL, 2016 to March 31,20L7.
Summary of Significant Accounting Policies and Disclosureso. Bosis of Preparation
The financial statements have been prepared in accordance with standards issued oradopted by the lnternational Accounting Standards Board, lnterpretations issued by thelnternational Financial Reporting lnterpretations Committee and applicable requirements ofthe UAE law under which the firm has been registered.
b. Accounting Convention
The financial statements have been prepared under historical cost convention basis. The
accounting policies are consistent with those used in the previous year.
The financial statements have been presented in and rounded off to the nearestDirhams.
:9:
RST TNTERNATTONAL TRADTNG (FZE)
JebelAli Free Zone, Dubai, UAENotes to the Financial Statements (continued ...)For the year ended March 31, 2O1g
c. Stotement of Compliance
These financial statements have been prepared in accordance with lnternational FinancialReporting Standards (IFRS) issued by lnternational Accounting Standards Board (tAsB).
The following new ond revised IFRS are effective for onnual periods beginning on or after 7stJonuary 20L7:
Amendments to IFRS 12, 'Discrosure of tnterests in other Entities,:
This standard requires a wide range of disclosures about an entity's interests in subsidiaries,joint arrangements, associates and unconsolidated 'structured entities,. Disclosures arepresented as a series of objectives, with details guidance on satisfying those objectives.Annual improvements to IFRS standards 20L4 - 201,6 cycle clarified that the disclosuresrequired in IFRS 12 (with the exception of B1o - 816) also apply to interests held for sale anddiscontinued operations in accordance with IFRS 5.
Amendments to tAS 7, 'Statement of Cash Flows':
The amendments are intended to clarify IAS 7 to improve information provided to users offinancial statements about an entity's financing activities.
To achieve this objective, the IASB requires that the following changes in liabilities arisingfrom financing activities are disclosed (to the extent necessary):
a. Changes from financing cash flows;b' Changing arising from obtaining or losing control of subsidiaries or other business;c. The effect of changes in foreign exchange rates;d. Changes in fair values' ande. Other changes.
Amendments to IAS 12, ,tncome Taxes,:
The amendments are intended to clarify when a deferred tax asset should be recognized forunrealized losses.
The amendments in Recognition of Deferred Tax Assets for Unrealized Losses clarify thefollowing aspects:
i Unrealized losses on debt instruments measured at fair value and measured at cost fortax purposes give rise to a deductible temporary difference regardless of whether thedebt instruments' holder expects to recover the carrying amount of the debt instrumentby sale or by use.
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RST !NTERNATTONAL TRADTNG (FZE)
JebelAli Free Zone, Dubai, UAE
Notes to the Financia! Statements (continued ...)
For the year ended March 3t,20tBii The carrying amount of an asset does not limit
profits.the estimation of probable future taxable
iii Estimates for future taxable profits exclude tax deductions resulting from the reversal ofdeductible temporary differences.
iv An entity assesses a deferred tax asset in combination with other deferred tax assets,where tax law restricts the utilization of tax losses, an entity would assess a deferred taxasset in combination with other deferred tax assets of the same type.
Revenue Recognition
lncome is recognized when it is earned, not necessarily when received. The income hasbeen recognized when invoices are raised and acknowledged by the customer. Expensesand charges have been recognized when it was incurred, not necessarily when paid.
Property, Plont & Equipment
Property, Plant & Equipment is stated at cost less accumulated depreciation and identifiedimpairment losses, if any. Cost includes expenditure that is directly attributable to theacquisition of the items including installation costs. Subsequent costs are included in theasset's carrying amount or recognized as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the entity andthe cost of the item can be measured reliably. All other repairs and maintenance expensesare charged to the profit or loss during the reporting period in which they are incurred.
The depreciation is calculated on a straight-line basis over the estimated useful lives of theassets, as follows:
d.
o
Office Equipment
Furniture and Fixtures
Years
5
5
The assets' residual values and useful lives are reviewed at the end of the reporting period,with the effect of any changes in estimates adjusted on a prospective basis. An asset'scarrying amount is written down immediately to its recoverable amount if the asset'scarrying amount is greater than its estimated recoverable amount.
The gains or losses arising on the disposal or retirement of an item of property, plant andequipment is determined by comparing the disposal proceeds with the carrying amount ofthe asset and is recognized in the profit or loss.
:11 :
RST TNTERNATTONAL TRADTNG (FZE)
JebelAli Free Zone, Dubai, UAE
Notes to the Financial Statements (continued ...)
For the year ended March 31, 2018
f. AccountsReceivables
Accounts Receivables are amounts due from customers for merchandise sold or services
performed in the ordinary course of business. lf collection is expected in one year or less (or
in the normal operating cycle of the business if longer), they are classified as current assets.
lf not, they are presented as non-current assets. Trade receivables are initially recognized at
fair value and subsequently measured at amortized cost reduced by appropriate allowance
for estimated doubtful debts.
g. Other Receivables
Other Receivables are non-derivative financial assets with fixed or determinable payments
that are not quoted in an active market. They are included in the current assets, except formaturities greater than 12 months after the end of the reporting period. The entity's otherreceivables comprises "cash and cash equivalents, deposits, prepayments and loans and
advances.
h. Cosh and cash equivalents
Cash and cash equivalents comprise cash on hand and bank deposits free of encumbrance
with a maturity date of three months or less from the date of deposit and other short-term
highly liquid investments with a maturity date of three months or less from the date'ofinvestments.
i. Account poyables
Account payables are obligations to pay for goods or services that have been acquired in theordinary course of business from suppliers. Account payable are classified as current
liabilities if payment is due within one year of less (or in the normal operating cycle of thebusiness if no longer). lf not, they are presented as non-current liabilities. Account payables
are recognized initially at fair value and subsequently are measured at amortized cost using
effective interest method.
j Other Poyobles
Other payables represents current payables other than dividend payables and tax payables.
These payables are expected to mature within one year or an operating cycle, which ever is
no longer. Other payables includes payables to employees, accrued expenses and duties.
k. Provisions
Provisions are recognized when the entity has a present legal or constructive obligation as a
result of past events; it is probable that an out low of resources embodying economic
benefits will be required to settle the obligation; and a reliable estimate can be made of theamount of the obligation. The expense relating to any provision is recognized in the profit or
loss, net of any reimbursement.
: L2:
RST TNTERNATTONAL TRADTNG (FZE)
Jebel Ali Free Zone, Dubai, UAE
Notes to the Financial Statements (continued ...)
For the year ended March 31, 2018l. Foreign Currency Transactions
Foreign currency transactions are recorded in UAE Dirham at the approximate rate ofexchange ruling at the time of the transaction. Assets and liabilities expressed in foreigncurrencies at the Statement of Financial Position date are converted to UAE Dirham at theyear end rate of exchange. All foreign currency gains and losses are booked in the statementof income as they arise.
m. Employees' Terminol Benefits
No provision is made in accounts for end of service benefits due to employees in accordance
with UAE federal labor laws no. (8) year 1980. The management has the policy to settle thedues during the time of termination.
n. Profit and Loss account
The entity's profit or loss is arrived at after charging all expenses incurred in day to day
operations of the business and in maintaining property, plant and equipment.
o. Rounding off
The figures stated in the attached financial statements are rounded off to the nearest UAE
Dirham.
p. Fair Value of financial instruments
The value of all classes of financial assets and financial liabilities, as recorded in theStatement of Financial Position approximate the fair value of these assets and liabilities.
q. General
ln the opinion of the management all the assets as shown in the financial statements are
existing and realizable at the amount shown against and there are no liabilities against theentity contingent or otherwise not included in the above Financial Statement. The financial
statement has prepared based on the information provided by the managment.
:l-3:
RST TNTERNATTONAL TRADTNG (FZE)
Jebel Ali Free Zone, Dubai, UAE
Notes to the Financial Statements (continued ...)
EEE
E
ElEllEl
EtctEllcfIctletJciIdl-ulcildldldis
CI
For the ended March 31,2018
Cost :
As at March 3L, 2077
Additions for the year
As at March 31, 20L8
Accumulated Depreciation :
As at March 3L, 2OL7
Charge for the year
As at March 31., 2018
Net Book Value :
As at March 31, 2018
As at March 3L, 2O!7
Office
Equipment
5,257
5,25L
Furniture& Fixtures Total
34,477
34,477
5,251
34,477
39,728
1,365
1,050 4,597
1,365
5,647
2,4L5 4,597 7,0L2
3,885
29,990
-
_32JL63,996
7. Property, Plant & Equipment
:14:
Notes to the Financial Statements (continued ...)For the year ended March 31, 2019
EtrErETEtEIETEtHEtEtETEIEtEEttrtFtltititEErtrh{Hbd
HbtHts{$h{Efrs
RST tNTERNATIONAT TRADTNG (FZE)
Jebel Ali Free Zone, Dubai, UAE
8. Accounts and Other ReceivablesTrade Receivables
Advance to SupplierPrepayment
Deposits
Other Receivables
9. Cash and Bank
Cash on Hand
Cash at Bank
12. Revenue
Sales
31-03-20L8 i1-03-2017AED AED
L,349,O3L L,499,765336,L92 330,46221,212 24,950L7,476 !7,4767,092 3,452
1,730,993 1,966.005
5,713691,632697,345
20,309t,877,gLO
10. Related Party TransactionsL,ggg,zLg
The Establishment has in the ordinary course of business, entered into certain revenue andfinancial transactions with entities which fall within the definition of related parties as containedin lnternational Financial Reporting standards (IFRS). The management decides on the termsand conditions of the transactions and services received / rendered from/to related parties aswell as on other charges.
11.
The Establishment provides / receives fundsworking capital. The balance due from/due tounsecured and repayable on call.
Due to Related PartyRama SteelTubes Ltd (tndia)
Accounts and Other payables
Trade payables
Advance from customersSalary Payable
Other payable
to/from related parties as and when required assuch parties which have been disclosed below are
218,397 20g,t9t218,391 209.101
99,52254,95410,500
2,000
439
541,510
5,500
2,000L66,976 549.449
L9,466,791,
L9,466,79t14,07L,207
14,07L,2O7
:1"5:
RST TNTERNATTONAL TRADTNG (FZE)
Jebel Ali Free Zone, Dubai, UAENotes to the Financial Statements (continued ...)
drrilldi6GIEIEIEIEIETEIETErltrbrtitsHFrFiFrhihrtIErtrHI-dHtrHHHs,L-'
For the ended March 31,2018
13. Cost ofSalesPurchases with direct expenses
14. Other lncomeForeign Exchange Gain
1-5. General & Administration ExpensesSalaries & AllowancesRent
Business promotionCommunication expensesLegal, License & professional chargesTravelling & ConveyanceBank charges
Office expenses
Visa & lnsurance
31-03-2018 31-03-2017AED AED
79,L22,093 73,099,702L8,L22,093 13,099.702
4Lt,60L
_11!f91_
739,229
57,940
2L,670L5,ggg
15,996
74,062
5,877
3,297
Nil
Lgg,52L199.s21
t45,7575L,!4242,L2226,9701.4,090
90,633
9,6594,502
L2,L22
_272,768_ _lqEqq_15. Financial Risk Factors
(i) Credit Risk
Financial assets, which potentially subject the establishment to credit risk, comprisesmainly of bank balances & receivables. Bank balances are with regulated financialinstitutions. The management of the establishment is taking continuous follow upmeasures to recover the dues within the credit period allowed. The management believesthat receivables are fully recoverable.
(ii) lnterest Rate Risk
The establishment does not availed any bank loan from banks or any other financialinstitution as on reporting date, hence the interest rate risk is minimum.
(iii) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument willfluctuate because of changes in market prices, such as exchange rate risk, interest rate riskor other price risk, which will affect the establishment's income or the value of its holdingof financial instruments.
:76:
dF+E+r+r*!+r+rdrtsrF+r+r##dd.#diJiJ{iild#ddlddiElddgdgdg,dL-
17.
18.
RST !NTERNATTONAL TRADTNG (FZE)
Jebel Ali Free Zone, Dubai, UAENotes to the Financial Statements (continued ...)
Financial instruments affected by market risk include interest-bearing loans andborrowings, deposits, financial assets at fair value through other comprehensive income.The objective of market risk management is to manage and control market risk exposureswithin acceptable parameters, while optimizing the return.
(iv) 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 theestablishment to meet any future commitments.
(v) Exchonge Rate Risk
There were no significant exchange rate risks as most of the financial assets and liabilitiesare denominated in UAE Dirhams.
Financial instruments: Fair value
Financial instruments comprise of financial assets and financial liabilities. The fair value of theestablishment's financial assets comprising of deposits and bank balances and financial liabilitiescomprising of accruals approximate to their carrying values.
Contingent Liability
Except for 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 capitalcommitment on establishment's accounts as of date of statement of financial position.
19. significant events after the date of statement of financiat position
There were no significant events occurring after the date of statement of financial positionwhich require disclosure in the financial statements.
The occompanying notes L to 19 form on integral port of these finonciol statements.
The Report of the Auditors is set out on pages 3 & 4.
These financial stotements on pages 5 to 17 were approved by the Monoging Director on Moy 74,2078 and signed by:
Director
ended March 31,2018
RST INTERNATIONA