Note 1: Corporate information

The Yamuna Syndicate Limited (the “Company”) is a Listed Public Limited Company. The registered office of the company is located at Radaur Road, Yamunanagar -135001(Haryana).The company is engaged in trading activities.

Note 2 : Accounting estimates ,assumptions and judgments:

The preparation of financial statements requires the use of accounting estimates, which by definition, will seldom equal the actual results, also needs to exercise judgment in applying the Company’s accounting policies, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities, if any. Uncertainty about these assumptions and estimates could result in outcomes of assets and liabilities affected in future periods.

The area involving critical estimate or judgment is

-Recognition of deferred tax assets for carried forward losses - Note 6 -Impairment of trade receivables - Note 5(b)

- Estimation of tax expense - Note 22

Estimates and judgments are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the company and that are believed to be reasonable under the circumstances.

There are no sources of estimation uncertainty that may have a significant risk of causing material adjustments to the carrying amounts of assets and liabilities in future periods, and also there are no significant judgments that may require disclosures.

The Company has recognised deferred tax assets on carried forward losses. The Company is expected to generate taxable income in future years.The losses can be carried forward for a period of eight years and the company expects to recover the losses.

Terms and rights attached to equity shares

The company has only one class of equity shares having a par value of Rs 100 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the compnay, the equity share holders are eligible to receive the remaining assets ofthe Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by each of the equity share holders.

Capital Reserve :

This represents the balance in reserve available for capitalisation.

Capital Redemption Reserve :

Refer 9 (b) (ii) above.

General Reserve :

This represents appropriation of profits by the Company. Retained Earnings

This comprise Company’s undistributed profits after taxes.

(i) Leave obligation

The leave obligation cover the company’s sick and earned leave.

The amount of provision of 31.03.2018 in INR Lakhs 0.09 (31.03.2017 in INR Lakhs 0.60) is presented as current,since the company does not have an unconditional right to defer for settlement of these obligations. However,based on past experience the company does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months.

(ii) Gratuity

The company provides for gratuity for employees as per the payment of Gratuity Act, 1972. Employeeswho are in continuous service for a period of 5 years are eligible for gratuity.The level of benefits provided depends on the member’s length of service and salary at retirement age.The defined benefit obligation is calculated annually by actuary using the projected unit credit method, is funded with Life Insurance Corporation of India.

(iii) Defined contributions plans

The company has certain defined contribution plans. Contributions are made to provident fund for employees at the rate of 12% of basic salary as per regulations.Thecontribution are made to registered providentfund administered by the Govt.Theobligationof the company is limited to the amount contributed and it has no further contractual or constructive obligation. The expense recognised during the year towards defined contribution plan is in INR Lakhs 0.70 (31st. March, 2017 in INR Lakhs 0.83).

(ii) Significant estimates : Actual assumptions and sensitivity.

(a) Sensitivities due to morality and withdrawls are not material and hence impact of change is not calculated.

(b) Sensitivity of the defined benefit obligation is determined based on the expected movement in liability if the assumptions were not proved to be true on different count.

While calculating the sensitivity of the defined benefit obligation to significant acturial assumption the same method (Present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

The methods and types of assumption used in preparing the sensitivity analysis did not change compared to the prior period.

Note 3 a: Segment information

The Chief Executive Officer monitors the operating results of its business segment separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss, and has identified the following reportable segments.:

The Chief Executive Officer primarily uses a measure of adjusted earnings before interest .dividend, depreciation and tax to assess the performance of the operating segment. However, he also receives the information about the segment revenue and assets on a monthly basis.

(b) Segment Revenue

The segment revenue is measured in the same way as in the statement of profit and loss.

(e) Segment Liabilities

Segment liabilities are measured in the same way as in the Financial Statements. These liabilities are allocated based on the operation of the segments. Borrowings and derivative liabilities are not considered to be segment liabilities.

(F) Terms and conditions of transactions with related parties:

The sales and purchases from related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. For the year ended 31st March,2018, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (31st.March,2018 : NIL , 31st March, 2017 : NIL).

Deposit from directors are unsecured and the effective interest rate is 11.5% for 3 years. These deposits are repayable to directors on due date from the deposit date.

Note 4 : Capital Management (a) Risk Management

The company’s objectives when managing Capital are to:

* Safeguard their ability to continue as a going concern, so that they can continue to provide returns and other benefits for the share holders, and

* Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to share holders, return capital to shareholders.

Consistent with others in the business, the Company monitors capital on the basis of the following gearing ratio :Net debt (total Borrowings net of cash and cash equivalents) divided by Total Equity plus net debt (as shown in the balance sheet).

In order to achieve this overall objective, the company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank immediately can recover loans and borrowings. There have been no breaches in the financial covenants of any borrowings in the current period. No changes were made in the objectives, policies or processes for managing capital during the years 31st March 2018 and 31st March 2017.

(i) Fair value hierarchy

This section explains the judgment and estimates made in determining the fair values of the Financial Instruments that are (a) recognised and measured at fair value, and measured at amortised cost and for which fair values are disclosed in the Financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Compaby has classified its financial instruments into three levels prescribed under the accounting standard. An explanation of each levels follows underneath the table:

Level 1Level 1 hierarchy includes financial instruments measured using quoted prices.This includes listed equity instruments, traded bonds,and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in stock exchanges is valued using the closing price at the reporting period.

Level 2:- The fair value of financial instruments that are not traded in an active market (for example, traded bonds,over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3:- If one or more ofthe significant inputs is not based on observable market data, the instrument is included in Ievel3. This is the case of unlisted equity securities,contingent consideration and idemntification asset included in level 3.

The carrying amount of trade receivables, trade payables , and cash and cash equivalents are considered to be the same as their fair value, due to their short term nature. The fair values for loans, security deposits were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs, including counterparty credit risk.

The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

For financial assets and liabilities that are measured at fair value, the carrying amount are equal to the fair values.

Note 5 : Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006

The Micro, Small and Medium Enterprises Development (MSMED) Act,2006 requires specific disclosures to be made in financial statements of the buyer whereversuch financial statements are required to be audited under any Act. IND-AS Compliant Schedule III is silent on MSMED disclosures. However,These financial statements do not contain statutory disclosures such as disclosures required under MSMED as the company has not received any intimation from suppliers regarding their status under MSMED Act.

Note 6 : Financial Risk Management:

The Company’s Financial Liabilities, comprise trade and other payables, and Financial Assets include trade and other receivables, cash and cash equivalents and other financial assets measured at amortised cost. The Company is exposed to Market risk,Credit risk and Liquidity risk.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk.

The senior management oversees the management of these risks. The senior management is supported by the Board that advises on financial risks and the appropriate financial risk governance framework for the company . The Board provides for overall risk management as well as policies covering specific areas, such as credit risk, use of non-derivative financial instruments, and investment of excess liquidity. The company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the company’s policies and risk objectives. The Board reviews and agrees policies for managing each of these risks, which are summarised below.

(a) Credit Risk

Credit risk is the risk that a counter party will not meet the obligation under a financial instrument or customer contract, leading to a financial loss. The Company is exposed from its operating activities (primarily trade receivables) and from its financing activities, including deposits from banks and other financial instruments.

The company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an going bases through out the reporting period. To assess whether there is a significant increase in credit risk, the company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forward looking information. Especially the following indicators are incorporated.

* actual or expected significant adverse changes in business, financial or economics conditions that are expected to cause a significant change to the borrower’s ability to meet its obligations.

‘actual or expected significant changes in the operating results of the borrower.

‘significant increase in credit risk on other financial instruments of the same borrower.

‘significant changes in the value of the collateral supporting the obligation or in the quality of third party guarantees or credit enhancements.

‘significant changes in the expected performance and behavior of the borrower, including changes in the payment status of borrowers in the company and changes in the operating results of the borrower.

Trade Receivables

The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in note 5(b). The company does not hold collateral as security. Customer credit risk is managed by the company’s established policy,procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored and an impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous group and assessed for impairment collectively .

The calculation is based on exchange losses historical data. The company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets Doubtful assets are written off when there is no resonable expectation of recovery, such as debtor declaring bankruptcy or failing to engage in a repayment plan with the company. The company categorises a loan or receivables for write off when a debtor fails to make contractual payments and credit risk has increased significantly and considered as low quality assets. Where loans or receivables have been written off, the company continues to engage in enforcement activity to attempt to recoverthe receivable due. Where recoveries are made, these are recognised in the profit and loss.

Significant estimates and judgments Impairment of Financial Assets

The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and expected loss rates The company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the company’s past history, existing market conditions as well as looking estimates at the end of each reporting period.

(b) Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Management monitors rolling forecasts of the company’s liquidity position (comprising the undrawn facilities below) and cash and cash equivalents on the basis of expected cash flows.

(i) Financing arrangements

The Company had access to the following undrawn borrowing facilities at the end of the reporting period:

The bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice.

(ii) Maturities of financial liabilities

The tables below analyse the company’s financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities .

(c) Market Risk

Market Risk is the risk that the fair value of future cash flow of a financial instrument will fluctuate because of change in market prices. Market risk comprises three type of risk :

Interest Rate Risk, Currency Risk and other price Risk,such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, FVTOCI investments and derivative financial instruments.

The sensitivity analyses in the following sections relate to the position as at 31st March 2018 and 31st March 2017.

The Sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives are all constant.

The analyses exclude the impact of movements in market variables on the carrying values of gratuity and other post retirement obligations; provisions; and the non-financial assets.

The following assumptions have been made in calculating the sensitivity analyses:

The sensitivity of the relevant proft or loss item is the effect of the assumed changes in respective market risk. This is based on the financial assets and financial liabilities held at 31st March 2018 and 31st March,2017.

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash fows of a financial instrument will fluctuate becauseof changes in market interest rates. The company exposure to the risk of changes in market interest rates relates primarily to the company long - term debt obligations with floating interest rates. Companypolicy is to maintain most of its borrowings at fixed rate using interest rate swaps to achieve this when necessary. The company fixed rate borrowings are carried at amortised cost. Theyare therefore not subject to interest rate risk as defined in Ind AS107, since neither the carrying amount nor the future cash flows will fluctuate becauseof a change in market interest rates. Thecompany manages its cash flow interest rate risk by using floating - to - fixed interest rate swaps. Generally, the company raises long term borrowings at floating rates and swaps them into fixed rates that are lower than those available if the company borrowed at fixed rates directly.

Note 7 Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with the current year’s classification / disclosure.