TITANIUM SANDS LIMITED — Annual Report 2018

Dec 13, 2018

Srinel Holdings Limited

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2016

Srinel Holdings Limited
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016

Contents	Pages
CORPORATE INFORMATION	$\overline{2}$
DIRECTORS' REPORT	$3 - 4$
REPORT FROM THE REGISTERED AGENT	5
INDEPENDENT AUDITORS' REPORT	$6 - 7$
STATEMENT OF FINANCIAL POSITION	8
STATEMENT OF COMPREHENSIVE INCOME	9
STATEMENT OF CHANGES IN EQUITY	10
STATEMENT OF CASH FLOW	11
NOTES TO THE FINANCIAL STATEMENTS	$12 - 23$

$\tilde{\mathcal{L}}$

MANAGEMENT AND ADMINISTRATION

		Date of Appointment	Date of Resignation
Directors	: Amanda D Ramburuth : Robert L Nelson Joëlle Armansin	11-Mar-14 24-Nov-15 30-Dec-16	30-Dec-16 $\overline{\phantom{0}}$ ۰
Administrator & Registered Agent	: Vuna Capital Trustees (Mauritius) Ltd Level 10, Tower 1 Nexteracom Building Cybercity, Ebene Republic of Mauritius
Registered office	: C/o Vuna Capital Trustees (Mauritius) Ltd Level 10, Tower 1 Nexteracom Building Cybercity, Ebene Republic of Mauritius
Bankers	: AfrAsia Bank Limited Bowen Square 10, Dr Ferriere Street Port Louis Republic of Mauritius
Auditor	: Mr Yin Shoong Ten Siong 33, Labourdonnais Street Port Louis Republic of Mauritius

INCORPORATION

The Company was incorporated in the Republic of Mauritius on 21 June 2012 under the Companies Act 2001 as a private company with limited liability holding a Category 2 Global Business Licence issued by the Mauritius Financial Services Commission.

PRINCIPAL ACTIVITY

The main activity of the Company is that of Investment Holdings and it holds minining interests through its subsdiaries and step-subsidiaries in Sri Lanka.

RESULTS AND DIVIDENDS

The results for the period are shown in the statement of profit or loss and other comprehensive income.

The directors do not recommend the payment of a dividend for the period under review.

DIRECTORS' RESPONSIBILITIES IN RESPECT OF THE FINANCIAL STATEMENTS

Under prevailing laws in Mauritius and as holder of a GBC2 licence, the Company is not required to prepare audited financial statements. These financial statements have been prepared at the request of shareholders and present fairly the financial position, financial performance and the cash flows of the Company. The directors are also responsible for keeping accounting records which :

• · Select suitable accounting policies and then apply them consistently;
• Make judgements and estimates that are reasonable and prudent;
• State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
• Prepare the financial statements on the going concern basis unless it is inappropriate to presume the Company will continue in business.

The directors confirm that they have complied with the above requirements in preparing the financial statements.

The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Company and to ensure that the financial statements comply with the Mauritius Companies Act 2001. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

CONSOLIDATION WORKINGS

The Directors have relied on the figures provided by its subsidiaries and the figures contained in their audited financial statements at 31 March 2016 for consolidation purposes. It is to be noted that the subsidiaries accounts are presented in Sri Lankan Rupees and certain assumptions have been made to prepare the consolidated figures as further described at Note $3$ (c) (i) of these financial statements.

DIRECTOR'S SERVICE CONTRACTS

The company has no service contract with any of its directors.

DIRECTORS' REMUNERATION

For the period under review, no fess have been paid to any directors.

AUDITOR

The fee charged by the auditor is disclosed in note 5 to the financial statements.

The auditor, Mr Yin Shoong Ten Siong, has been appointed only for this special purpose audit.

BY ORDER OF THE BOARD

Director

Date: 27 January 2017

We certify that, to the best of our knowledge and belief, Srinel Holdings Limited has filed with the Registrar of Companies for the financial year ended 31 March 2016, all such returns as are required of the Company under the Mauritian Companies Act 2001.

Man

For Vuna Capital Trustees (Mauritius) Limited Registered Agent

Registered address Vuna Capital Trustees (Mauritius) Ltd

Level 10, Tower 1 Nexteracom Building Cybercity, Ebene Republic of Mauritius

Date: 27 January 2017

Srinel Holdings Limited INDEPENDENT AUDITORS' REPORT TO THE MEMBERS FOR THE YEAR ENDED 31 MARCH 2016

This report is made solely to the members of the Company, as a body, in accordance with section 205 of the Mauritius Companies Act 2001. My audit work has been undertaken so that I might state to the purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Company and the Company's member as a body, for my audit work, for this report, or for the opinions I have formed.

Report on the Financial Statements

I have carried out a special purpose audit of the Consolidated Financial Statements of Srinel Holdings Limited, (the "Company") and its subsidiaries (together referred to as the "Group") on pages 8 to 23 which comprise the consolidated statement of financial position at 31 March 2016 and the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the period then ended and a summary of significant accounting policies and other explanatory notes.

Director's Responsibilities for the Financial Statements

The directors are responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards and in compliance with the requirements of the Mauritius Companies Act 2001. The Responsibilities include: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor's responsibility

My responsibility is to express an opinion on these consolidated financial statements based on my audit. I conducted my audit in accordance with International Standards on Auditing and for consolidation purposes,I relied on the figures provided by the Sri Lankan auditor. Those Standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the consolidated financial statements are free from material misstatements.

Srinel Holdings Limited INDEPENDENT AUDITORS' REPORT TO THE MEMBERS (CONT'D) FOR THE YEAR ENDED 31 MARCH 2016

An audit involves performing procedures to obtain audit evidence about the amount and disclosures in the financial statements. The procedures selected depend on the auditors' judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting made by the directors, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Opinion

In my opinion, the financial statements on pages 8 to 23 give a true and fair view of the financial position of the Company at 31 March 2016 and of its financial performance and its cash flow for the period then ended in accordance with International Financial Reporting Standards and comply with the Mauritius Companies Act 2001.

Report on other legal and regulatory requirements

In accordance with the requirements of the Mauritius Companies Act 2001, I report as follows:

. I have no relationship with, or interests in, the Company other than in my capacity as auditor;

• I have obtained all information and explanations that I have required; and
• . In my opinion, proper accounting records have been kept by the Company as far as appears from my examination of those records.

Yin Shoong Ten Siong Licenced by FRC

Date:

Srinel Holdings Limited CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2016

		The Group		The Company
	Notes	2016	2015	2016	2015
ASSETS		USD	USD	USD	USD
Non current assets
Property, plant and equipment	7		92,099
Investment in subsidiary	8			2,908	2,900
Intangible assets		56,078	31,245
		56,078	123,344	2,908	2,900
Current assets
Trade and other receivables		33		32
Cash and cash equivalents	9	14	16
		47	16	32
Total assets		56,125	123,360	2,940	2,900
EQUITY AND LIABILITIES Capital and reserves
Stated capital	10	100	100	100	100
Accumulated loss		(16, 426)	(45, 971)	(45, 193)	(13, 325)
Retranslation reserve		992	(725)
Shareholders' deficit		(15, 334)	(46, 596)	(45,093)	(13, 225)
Non - current liabilities
Loan from shareholder	12	37,193	22,675	18,033	16,125
Current liabilities
Trade and other payables	11	34,266	147,281	30,000
Taxation	6
		34,266	147,281	30,000	$\overline{\phantom{a}}$
Total equity and liabilities		56,125	123,360	2,940	2,900

Approved by the Board of Directors on :

$0_i$ if

Director

$\label{eq:2.1} \langle \mathbf{z} \rangle \langle \mathbf{z} \rangle \langle \mathbf{z} \rangle \langle \mathbf{z} \rangle \langle \mathbf{z} \rangle \langle \mathbf{z} \rangle \langle \mathbf{z} \rangle \langle \mathbf{z} \rangle \langle \mathbf{z} \rangle \langle \mathbf{z} \rangle \langle \mathbf{z} \rangle \langle \mathbf{z} \rangle \langle \mathbf{z} \rangle \langle \mathbf{z} \rangle \langle \mathbf{z} \rangle \langle \mathbf{z} \rangle \langle \mathbf{z} \rangle \langle \mathbf{z} \rangle \langle \mathbf{z} \rangle \langle \mathbf{z} \rangle \langle \mathbf{z} \rangle \$

Director

Srinel Holdings Limited STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2016

			The Group		The Company
	Notes	2016	2015	2016	2015
		USD	USD	USD	USD
Revenue
Cost of sales
Gross profit
Other income			11,735
Administrative expenses		(18, 818)	(41,661)	(1,600)	(1,800)
Licences fee		(268)	(300)	(268)	(300)
Consultancy fee		(30,000)		(30,000)
Subsidiary fees			(6,500)		(6,500)
Financial & other expenses		(32, 502)
Accounting fee
Amortisation of goodwill			(3, 465)
Audit and professional fee
Exchange gain	$\overline{7}$	(1)	533
Loss before taxation	5	(81,589)	(39, 659)	(31, 868)	(8,600)
Taxation	6
Loss for the period		(81, 589)	(39, 659)	(31, 868)	(8,600)
Other comprehensive income, net of income tax Items that may be reclassified subsequently to profit or loss
Items that will not be reclassified subsequently to profit or loss
Other comprehensive income / (loss) for the period, net of income tax
Total comprehensive loss for the period		(81, 589)	(39, 659)	(31, 868)	(8,600)
Loss for the period attributable to:
• Owner of the Company		(81, 589)	(39, 659)	(31, 868)	(8,600)
• Non-controlling interests
		(81, 589)	(39, 659)	(31, 868)	(8,600)
Total comprehensive loss for the period attributable to:
• Owner of the Company		(81, 589)	(39, 659)	(31, 868)	(8,600)
• Non-controlling interests					÷
		(81, 589)	(39, 659)	(31, 868)	(8,600)

Srinel Holdings Limited CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2016

The Group
	Stated	Retranslation	Accumulated
	Capital	Reserve	Loss	Total
	USD	USD	USD	USD
At 01 April 2013	100		(2,825)	(2,725)
Retranslation Reserve		(65)		(65)
Total comprehensive loss for the period			(3, 487)	(3, 487)
At 31 March 2014	100	(65)	(6, 312)	(6,277)
Retranslation Reserve		(660)		(660)
Total comprehensive loss for the period			(39, 659)	(39, 659)
At 31 March 2015	100	(725)	(45, 971)	(46, 595)
Retranslation Reserve		1,717		1,717
Relinquishment of liabilities			111,133
Total comprehensive loss for the period			(81, 589)	(81, 589)
At 31 March 2016	100	992	(16, 426)	(126, 467)

The Company

	Stated Capital USD	Retranslation Reserve USD	Accumulated Loss USD	Total USD
At 01 April 2013	100		(2,825)	(2,725)
Total comprehensive loss for the period			(1,900)	(1,900)
At 31 March 2014	100		(4, 725)	(4,625)
Total comprehensive loss for the period			(8,600)	(8,600)
At 31 March 2015	100		(13, 325)	(13, 225)
Total comprehensive loss for the period			(31, 868)	(31, 868)
At 31 March 2016	100		(45, 193)	(45,093)

Srinel Holdings Limited CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2016

	The Group		The Company
	2015 2016		2015 2016
	USD	USD	USD	USD
Operating activities
Loss before taxation	(81, 589)	(39, 659)	(31, 868)	(8,600)
Adjustment for:
Depreciation	25,636	25,636
Amortisation of goodwill	5,270	3,465
Foreign Exchange Gain	(557)	(572)
Unrealised gain on exchange
Net Cash absorbed by operating activites	(51, 240)	(11, 130)	(31, 868)	(8,600)
Changes in working capital
Change in trade and other receivables	(33)		(33)
Change in Goodwill
Increase in Borrowings		15,149
Change in related party transactions	14,518		1,908
Change in trade and other payables	(113, 015)	(4,058)	30,000	8,600
Cash absorbed by operating activities	(149, 770)	(38)	8
Investing activities
Investments
Intangible assets	(24, 833)
Disposal of property, plant and equipment	174,601
Acquisition of subsidary			(8)
Net cash used in investing activities	149,768		(8)
Cash Flows from financing activities
Issue of ordinary shares
Net cash used in financing activities
Net decrease in cash and cash equivalents	(1)	(38)
Movement in cash and cash equivalents
Cash and cash equivalents at beginning of the period.	16	54
Cash and cash equivalents at end of the period	14	16
Net decrease in cash and cash equivalents	(2)	(38)

1. LEGAL FORM AND ACTIVITY

Srinel Holdings Limited, the "Company", was incorporated on 21 June 2012 in the Republic of Mauritius on under the Companies Act 2001 as a private company with liability limited by shares and holds a Category 2 Global Business Licence issued by the Financial Services Commission. The Company's registered office is at C/o Vuna Capital Trustees (Mauritius) Limited, Level 10, Tower 1, Nexteracom Building, Cybercity, Ebene, Republic of Mauritius.

The principal activity of the Company is that of investment holdings.

2. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)

(a) New and revised IFRSs applied affecting disclosures in the financial statements

Amendments to IAS 1 Presentation of Items of Other Comprehensive Income

• The Company has applied the amendments to IAS 1 Presentation of Items of Other Comprehensive Income in the current year. The amendments introduce income and income statement. Under the amendments to IAS 1 the "Statement of comprehensive income" is renamed the "Statement of profit or loss and other comprehensive income" and the amendments to IAS 1 retain the option to present profit or loss and other comprehensive income in either a single statement or in two separate but consecutive statements. However, the amendments to IAS 1 require items of other comprehensive income to be grouped into two categories in the other comprehensive income section: (a) items that will not be reclassified subsequently to profit or loss and (b) items that may be reclassified subsequently to profit or loss when specific conditions are met. Income tax on items of other comprehensive income is required to be allocated on the same basis - the amendments do not change the option to present items of other comprehensive income either before tax or net of tax. The amendments have been applied retrospectively, and hence the presentation of items of other comprehensive income has been modified to reflect the changes. Other than the above mentioned presentation changes, the application of the amendments to IAS 1 does not result in any impact on profit or loss, other comprehensive income and total comprehensive income.

(b) Standards and Interpretations adopted with no effect on financial statements

The following new and revised Standards and Interpretations have been adopted in these financial statements. Their adoption has not had any significant impact on the amounts reported in these financial statements but may impact the accounting for future transactions or arrangements.

IFRS 1 First-time Adoption of International Financial Reporting Standards

• Amendments add an exception to the retrospective application of IFRS's to require that first-time adopters apply the requirements in IFRS 9 - Financial for Government Grants and Disclosure of Government Assistance prospectively to government loans existing at the date of transaction to IFRS's. Instruments and IAS 20 - Accounting for Government Grants and Disclosure of Government Assistance prospectively to government loans existing at the date of transaction to IFRS's.
• Amendments clarify the options available to users when repeated application of IFRS 1 is required and to add relevant disclosure requirements.
• Amendments to borrowing costs.

IFRS 7 Financial Instruments: Disclosures

• Amendments require entities to disclose gross amounts subject to rights of set-off, amounts set off in accordance with the accounting standard followed, and the related net credit exposure.

2. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS ("IFRSs") (CONTINUED)

(b) Standards and Interpretations adopted with no effect on financial statements (Continued)

IFRS 10 Consolidated Financial Statements

• New standard that replaces the consolidation requirements in SIC-12 Consolidation Special Purpose Entities and IAS 27 - Consolidated and separate Financial Statements. Standard builds on existing principles by identifying the concept of control as the determining factor in whether an entity should be included within the consolidated financial statements of the parent Company and provides additional guidance to assist in the determination of control where this is difficult to assess.
• Amendments to the transition guidance of IFRS 10 Consolidated Financial Statements, IFRS 11 - Joint Arrangements and IFRS 12 - Disclosure of Interests in Other Entities, thus limiting the requirements to provide adjusted comparative information.

IFRS 11 Joint Arrangements

• . New standard that deals with the accounting for joint arrangements and focuses on the rights and obligations of the arrangement, rather than its legal' form. Standard requires a single method for accounting for interests in jointly controlled entities.
• Amendments to the transition guidance of IFRS 10 Consolidated Financial Statements, IFRS -Joint Arrangements and IFRS 12 - Disclosure of Interests in Other Entities, thus limiting the requirements to provide adjusted comparative information.

IFRS 12 Disclosure of Interests in Other Entities

• New and comprehensive standard on disclosure requirements for all forms of interests in other entities, including joint arrangements, associates, special purpose vehicles and other off balance sheet vehicles.
• Amendments to the transition guidance of IFRS 10 Consolidated Financial Statements, IFRS 11 -Joint Arrangements and IFRS 12 - Disclosure of Interests in Other Entities, thus limiting the requirements to provide adjusted comparative information.

IFRS 13 Fair Value Measurement

• New guidance on fair value measurement and disclosure requirements.

IAS 1 Presentation of Financial Statements

• New requirements to group together items within OCI that may be reclassified to the profit or loss section of the income statement in order to facilitate the assessment of the impact on the overall performance of an entity.
• Amendments clarifying the requirements for comparative information including minimum and additional comparative information required.

IAS 12 Income Taxes

Rebuttable presumption introduced that an investment property will be recovered in its entirely through sale.

IAS 16 Property, Plant and Equipment

• Amendments to the recognition and classification of servicing equipment.

IAS 19 Employee Benefits

• Amendments to the accounting for current and future obligations resulting from the provision of defined benefit plans.

2. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS ("IFRSs")(CONTINUED)

(b) Standards and Interpretations adopted with no effect on financial statements (Continued)

Consolidated and Separate Financial Statements IAS 27

Consequential amendments resulting from the issue of IFRS 10, 11 and 12.

IAS 28 Investments in Associates

Consequential amendments resulting from the issue of IFRS 10, 11 and 12. $\bullet$

Financial Instruments: Presentation IAS 32

• Amendments require entities to disclose gross amount subject to rights of set-off, amounts set-off in accordance with the accounting standards followed, and the related net credit exposure.
• Amendments to clarify the tax effect of distribution to holders of equity instruments. $\bullet$

IAS 34 Interim Financial Reporting

• Amendments to improve the disclosures for interim financial reporting and segment information for total assets and liabilities.
• IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine.

(c) Standards and Interpretations in issue but not yet adopted

First-time Adoption of International Financial Reporting Standards IFRS₁

$\bullet$ Amendments to the Basis of Conclusion clarify the meaning of "effective IFRSs' (effective 1 July $2014$ ).

IFRS₂ Share-based Payment

Amendments added the definitions of performance conditions and service conditions and amended $\bullet$ the definitions of vesting conditions and market conditions (effective 1 July 2014).

IFRS 3 Business Combinations

• Amendments to the measurement requirements for all contingent consideration assets and liabilities $\bullet$ including those accounted for under IFRS 9 (effective 1 July 2014).
• Amendments to the scope paragraph for the formation of a joint arrangement (effective 1 July 2014).

2. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS ("IFRSs") (CONTINUED)

(b) Standards and Interpretations adopted with no effect on financial statements (Continued)

IFRS 8 Operating Segments

Amendments to some disclosure requirements regarding the judgements made by management in applying the aggregation criteria, as well as those to certain reconciliations (effective 1 July 2014).

IFRS 9 Financial Instruments

• New standard arising from a three-part project to replace IAS 39 Financial Instruments: Recognition and Measurement
• o Phase 1: Classification and measurement (completed)
• o Phase 2: Impairment methodology (outstanding)
• o Phase 3: Hedge accounting (completed)
• Most of the requirements for financial liabilities were carried forward unchanged from IAS 39. However, some changes were made to the fair value option for financial liabilities to address the issue of own credit risk. Entities may voluntarily continue to measure their financial instruments in accordance with IAS 39 but benefit from the improved accounting for own credit risk in IFRS 9 by early adopting only that aspect of IFRS 9 separately.
• Amendments to the measurement requirements for all contingent consideration assets and liabilities included under IFRS 9 (effective 1 July 2014).

IFRS 10 Consolidated Financial Statements

IFRS 10 exception to the principle that all subsidiaries must be consolidated. Entities meeting the definition of "Investment Entities" must account for investments in subsidiaries at fair value under IFRS 9 - Financial Instruments, or IAS 39 - Financial Instruments: Recognition and Measurement (effective 1 January 2014).

IFRS 12 Disclosure of Interests in Other Entities

New disclosures required for Investment Entities (as defined in IFRS 10) (effective 1 January 2014). $\bullet$

IFRS 13 Fair Value Measurement

• Amendments to clarify the measurement requirements for those short-term receivables and payables (effective 1 July 2014).
• Amendments to clarify that the portfolio exception applies to all contracts within the scope of, and $\bullet$ accounted for in accordance with, IAS 39 or IFRS 9 (effective 1 July 2014).

IAS 16 Property, Plant and Equipment

Amendments to the Revaluation method - proportionate restatement of accumulated depreciation (effective 1 July 2014).

IAS 19 Employee Benefits

Amendments to Defined Benefit Plans: Employee Contributions whereby the requirements in IAS 19 for contributions from employees or third parties that are linked to service have been amended (effective 1 July 2014).

Related Party Disclosures IAS 24

Amendments to the definitions and disclosure requirements for key management personnel (effective 1 July 2014).

2. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS ("IFRSs") (CONTINUED)

(b) Standards and Interpretations adopted with no effect on financial statements (Continued)

IAS 27 Consolidated and Separate Financial Statements

• Requirement to account for interests in "Investment Entities" at fair value under IFRS 9 - Financial Instruments, or IAS 39 - Financial Instruments: Recognition and Measurement, in the separate financial statements of a parent (effective 1 January 2014).

IAS 38 Intangible Assets

Amendments to the Revaluation method - proportionate restatement of accumulated depreciation (effective 1 July 2014).

IAS 40 Investment Property

• Amendments to clarify the interrelationship between IFRS 3 and IAS 40 when classifying property as investment property or owner-occupied property (effective 1 July 2014).

IFRIC 21 Levies (effective 1 January 2014).

• New disclosures required for Investment Entities (as defined in IFRS 10) (effective 1 January 2014).

The Directors anticipate that the adoption of these Standards and Interpretations at the above effective dates in future periods will have no material impact on the financial statements of the Company.

3. ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of these financial statements are set out below.

The preparation of financial statements in accordance with International Financial Reporting Standards "IFRS" requires management to make certain assumptions and estimates that affect the reported amounts of assets and liabilities, revenues and expenses and the contingent liabilities. Actual amounts could in certain cases differ from those assumptions and estimates. Changes are taken into account with statement of profit or loss and other comprehensive income effect if new information comes to light.

Critical accounting estimates and judgements in applying accounting policies

Estimates and judgements are continually evaluated and are based on past experience and other factors including expectation of future events that are believed to be reasonable under the circumstances. At the date of statement of financial position, there were no areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements.

(a) Basis of preparation

The consolidated financial statements are in accordance and comply with "IFRS" and under the historical cost convention.

(b) Foreign currency translation

(i) Functional and presentation currency

Items included in the consolidated financial statements of the Company are measured using the currency of the primary economic environment in which it operates (the "functional currency"). The financial statements are presented in "USD", which is the Company's functional and presentation currency.

3. ACCOUNTING POLICIES (CONTINUED)

(b) Foreign currency translation (Continued)

(ii) Transactions and balances

Foreign currency transactions are translated into "USD" using the exchange rates prevailing at the dates of the transactions. Exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the consolidated statements of profit or loss other comprehensive income.

(c) Group Companies

The assets and liabilities of foreign operations are translated into "USD" at the rate of exchange prevailing at the reporting date and their statement of comprehensive income is translated at exchange rates prevailing at the date of the transactions. The exchange differences arising on the translation are recognised in other comprehensive income. On disposal of a foreign operation, the component of other comprehensive income relating to that particular foreign operation is recognised in the statement of comprehensive income.

(i) Consolidation

The consolidated financial statements incorporate the financial statements of the Company and its subsidiaries. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

The results of subsidiaries acquired or dispose of during the year are included in the consolidated statement of comprehensive income. All significant inter group balances and unrealised gains on transactions are eliminated. Unrealised losses are also eliminated unless cost cannot be recovered. The consolidated financial statements have been prepared in accordance with the purchase method. Goodwill on acquisition is capitalised and reviewed annually for any impairment.

The consolidated financial statements have been prepared using the following assumptions:

1) Income statement items are converted at an average Sri Lankan Rupee to USD rate.

2) Income and expenses of the subsidiaries have been assumed to be incurred equally over the period of the financial statements.

(ii) Subsidiaries

Subsidiaries are entities over which the Company has the power to govern the financial and operating policies generally accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assesing whether the Company controls another entity. In the Company's statement of financial position, the investments in subsidiaries are stated at cost less provision for impairment losses.

(iii) Impairment of investment in subsidiaries

Investment in subsidiary is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. Impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount and the circumstances and events leading to the impairment cease to exist. A reversal of impairment loss is limited to the asset's carrying amount that would have been determined had no impairment loss been regognised in prior years. Reversal of impairment loss is credited to the statement of comprehensive income.

3. ACCOUNTING POLICIES (CONTINUED)

(d) Trade and other receivables

Trade receivables are carried at anticipated realizable value. An estimate is made for doubtful receivables based on a review of all outstanding amounts at the year end. Bad debts are written off during the year in which they are identified. Subsequent recoveries of amounts previously written off are credited to the statement of profit or loss and other comprehensive income.

(e) Deferred tax

Deferred tax is provided for, using the liability method, on all temporary differences arising between the tax bases if assets and liabilities and their carrying values for financial reporting purposes. Currently enacted tax rates are used to determine deferred tax. Deferred tax assets are recognised to the extent that is probable that future taxable income is available against which the temporary differences can be utilized.

Cash and cash equivalents $(f)$

For the purpose of the statements of cash flows, cash and cash equivalents comprise cash at bank and net of bank overdraft. Cash equivalents are short term, highly liquid investments that are readily convertible to known amount of cash and which are subject to an insignificant risk of change in value.

Revenue recognition $(g)$

Revenue is recognised when the right to receive payment is established and interest income is recognised in the statement of comprehensive income as interest accrues. Revenue is reduced for estimated customer returns, rebates and similar other allowances.

(h) Provisions

Provisions are recognised when the company has a present legal or constructive obligation as a result of past events. It is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount can be made.

Impairment of assets $(i)$

The carrying amount of assets is assessed at each statement of financial position date to determine whether there is any indication of impairment. When there is an indication of an impairment loss, the carrying amount of the asset is assessed and written down to it's recoverable amount.

3. ACCOUNTING POLICIES (CONTINUED)

Equity $(i)$

Share capital is determined using the nominal value of shares that have been issued.

Revenue reserves include all current and prior year results as disclosed in the statements of profit or loss and other comprehensive income.

(k) Related parties

Related parties are individuals and companies where the individual or company has the ability, directly or indirectly, to control the other party or exercise significant influence on the other party in making financial and operating policy decisions.

De-recognition of financial assets $(1)$

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity.

(m) De-recognition of financial liabilities

The company derecognizes financial liabilities when, and only when, its obligations are discharged, cancelled or they expire.

(n) Trade and other payables

Trade and other payables are stated at their nominal values.

(o) Comparatives

Where applicable, comparatives have been changed to conform with changes in presentation of the current year.

4. FINANCIAL RISK MANAGEMENT

4.1 Financial risk factors

The Company's activities expose it to a variety of financial risks, market risk (including foreign exchange risks, and interest rates risks), credit risk, and liquidity risk. The Company's overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company's financial performance.

(a) Market risk

(i) Foreign exchange risk

The Company has all its assets and liabilities denominated in "USD". Hence it is not exposed to the risk of adverse movements in exchange rate of the "USD" relative to other currencies.

(ii) Interest rate risk

The Company's income and operating cash flows are substantially independent of changes in market interest rates and hence faces limited interest rate risk.

4. FINANCIAL RISK MANAGEMENT (CONTINUED)

4.1 Financial risk factors (Continued)

(b) Credit risk

The Company has no significant concentrations of credit risk.

(c) Liquidity risk

Liquidity risk is managed by maintaining sufficient cash and by ensuring the availability of funding through committed credit facilities and the ability to close out market position.

4.2 Capital risk management and policies

The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going concern and to provide adequate returns to its shareholder.

In order to properly manage the capital structure, the Company may adjust the amount of dividends paid to its shareholder.

4.3 Fair value estimation

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction.

The Company's financial assets and liabilities concern loans, trade and other receivables, cash and cash equivalents and trade and other payables and the carrying amounts of these financial assets and liabilities approximate their fair values.

Srinel Holdings Limited NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016

5. PROFIT / (LOSS) BEFORE TAXATION

The profit / (loss) before taxation is arrived after charging:	2016	2015
	USD	USD
Auditors' remuneration:
- Audit fees (Vat Inclusive)
Audit fees amounting to USD 1,725 have not been accrued during the years ended

31 March 2015 and 2016 but will be settled

6. TAXATION

The Company is tax exempt in Mauritius and therefore not liable to tax in Mauritius.

(i) Recognised in the statement of profit or loss and other comprehensive income.

	The Company 2016	The Company 2015
	USD	USD
Loss for the year before taxation	(31, 868)	(8,600)
Loss BFW	(10, 500)	(1,900)
	(42, 368)	(10,500)
Add: Non allowable expenses
Unrealised loss on exchange
	(42, 368)	(10,500)
Less: Exempt income & deductible expenses
Unrealised gain on exchange
Tax loss carried F/D	(42, 368)	(10,500)

7. PLANT AND EQUIPMENT

		The Group		The Company
	2016	2015	2016	2015
	USD	USD	USD	USD
COST
At 01 April	174,601	174,601	۰
Additions				۰
Disposal	(174, 601)
At 31 March		174,601
DEPRECIATION
At 01 April	82,502	57,399
Charge for the period	25,636	25,636
Exchange difference		(533)
Disposal adjustment	(108, 139)
At 31 March	$\Omega$	82,502
NBV at 31 March	0	92,099

Srinel Holdings Limited NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016

8.	INVESTMENTS IN SUBSIDIARY	2016	2015
		USD	USD
	At the beginning of the Period	2,900	2,900
	Additions		$\overline{\phantom{a}}$
	As at 31 March	2.908	2.900

Details of the investments held are as follows :

Name of Investee Company	Country of Incorporation	Type of Shares held	$%$ Holding
Singha Lanka Investments (Private) Ltd	Sri Lanka	Equity	100
Kilsythe Investments (Pvt) Ltd	Sri Lanka	Equity	100

The Company has adopted the policy of measuring its investments at cost. The directors are of the opinion that the carrying value of investment is fairly stated at cost and that it has not suffered any impairment.

9 CASH AND CASH EQUIVALENTS		The Group	The Company
	2016	2015	2016	2015
	USD	USD	USD	USD
Cash and bank balances	14	16
	14	16
		The Group	The Company
10 STATED CAPITAL	2016	2015	2016	2015
	USD	USD	USD	USD
Issued and fully paid
100 ordinary shares of USD 1 each	100	100	100	100

Srinel Holdings Limited NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016

	The Group	The Company
11 TRADE AND OTHER PAYABLES	2016	2015	2016	2015
	USD	USD	USD	USD
Audit fee accrued		۷	۰
Professional fee	۰	۰	٠
Consultancy fee	30,000	$\frac{1}{2}$	30,000
Acccounts Payable	4,266	881	$\overline{\phantom{a}}$	۰
Amount due to related parties	$\overline{\phantom{a}}$	146,400	۰
	34,266	147,281	30,000

12 RELATED PARTY TRANSACTIONS

For the period ended 31 March 2016, the Group / Company traded with related parties. The nature, volume of transaction and the balance with the related party are as follows:

			The Group		The Company
Name of Related P.	Relationship	Type of	2016	2015	2016	2015
		Transaction
The Group/Company			USD	USD	USD	USD
Amount owed to:
Shareholder	Same Shareholder	Loan	37,193	22,675	18,033	16.125

The amount payable to shareholder is unsecured, interest free and without any fixed repayment term.

13 CAPITAL COMMITMENTS

The Company had no material capital commitments at 31 March 2016.

14 HOLDING COMPANY

The directors consider Srinel Holdings Limited ,a Company incorporated in Mauritius, as the holding company of the Srinel Group.

15 CONTINGENT LIABILITIES

At 31 March 2016, the Company had no material litigation claims outstanding, pending or threatened against, which could have a material effect on the Company's financial position or results of operations.

16 EVENTS AFTER THE REPORTING PERIOD

There were no material events after the reporting period, which would require disclosure or adjustment to the financial statements at 31 March 2016.