SAMPRADHA POWER TRADING PYT. LTD. VAT NO-611044053 FINANCIAL STATEMENT FISCAL YEAR 2079/080 (2022/023)aot ads powecors Bee THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NEPAL (Established under the Nepal Chartered Accountants Act, 1997) UDIN Document Fiscal Year: 2079/80 Date / Time: 2023-12-04 13:32:49 UDIN Number: 231204RAD0864gyzd9 ‘Member Name: PRIYANTANU CHALISE Date of Signing Document: 2023-11-26 Document Type: Audit Audit Type: Statutory Audit Office Type: Pvt. Lid. Company Office Name: Sampradha Power Trading Pvt.Ltd. ‘Type of Audit Opinion: Unqualified Opinion Period (AD): 2022-09-18 to 2023-07-16 PAN No: 611044053 Financial figures Total Assot/Liabilt NRs. 3 2 Gross Revonue/Turnover Rs, 29463602 3 Gross Expenses NRs, 28584469, 4 Not Profit Or Loss NR. 879133, Status: Active Document Document Description: ‘The UDIN System has been developed by the Institute of Chartered Accountants of Nepal (ICAN) to facilitate its members for Verification and certification of the documents and for securing documents and authenticity thereof by Authorities, Regulators land Stakeholders. However, ICAN assumes no responsibilty of verification and certification of document(s) carried out by the ‘Members and the concemed member(s) shall alone be responsible therefore.P.CHALISE & ASSOCIATES Pan No. 301874308 Regd.No. "Kha" 0319, Registered Auditor House No. 131, Kumarigal, Ka, Ma, Na. Pa., Ward No, 7, Kathmandu, Nepal Independent Auditor's Report to Shareholders of ‘SAMPRADHA POWER TRADING PVT. LTD. Report on the Audit of the Financial Statement Opinion We have audited the financial statements of SAMPRADHA POWER TRADING PVT. LTD. which comprises of the statement of financial position from 2079 Ashoj 2 to Ashad-31, 2080 and the statement of income, the statement of cash flows and statement of change in equity for the year then ended and the notes to the financial statements, including a summary of significant accounting policies. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the organization as at 2079 Ashoj 2 to Ashadh-31, 2080, and its financial performance and its cash flow statement for the year then ended in accordance with Nepal Accounting Standards and other prevailing laws. Basis of Opinion We have conducted our audit in accordance with Nepal Auditing Standards (NSAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statement section of our report. We are independent of the organization in accordance with ICAN’s Handbook of Code of Ethics for Professional Accountants together with the ethical requirements that are relevant to our audit of the financial statements, and we have fulfilled our ethical responsibilities in accordance with these requirements and ICAN’s Handbook of Code of Ethics for Professional ‘Accountants. We believe that the audit evidence we have obtained is sufficient and appropriate to provide ‘basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Financial Statements ‘Management is responsible for the preparation and fair presentation of these financial statements in accordance with the applicable financial reporting standards, and for such intemal control as management determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the organization's ability to continue as a going concer, disclosing, as applicable, matters related to going concem and using the going concem basis of accounting, unless management either intends to liquidate the organization or to cease operations, or has no realistic alternative but to do so, ‘Those charged with governance are responsible for overseeing the organization's financial reporting process. Auditor's Responsibilities for the Audit of Financial Statement Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's 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 NSAs will always detect a material misstatement when it exits. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. - Pp Le ae ;P.CHALISE & ASSOCIATES in No. 301874308 Regd.No. "Kha" 0319, Registered Auditor House No, 131, Kumarigal, Ka. Ma, Na. Pa., Ward No. 7, Kathmandu, Nepal ‘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 the intemal ‘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. Report on Other Legal and Regulatory Requirement + We have obtained information and explanation asked for, which, to the best of knowledge and belief, were necessary for the purpose of our audit «In our opinion, statement of financial position, statement of income and statement of changes in equity and statement of cash flows are in agreement with the books of accounts maintained by the organization including relevant records relating 10 the preparation of the aforesaid financial statements have been kept so far as it appears from our examination of those books and records. + To the best of our information and according to explanation given to us and so far appeared from our examination of the books of account ofthe organization, we have not come across cases where board member or any employees of the organization have acted contrary to the provisions of the laws = to accounts, oF committed any misappropriation or caused loss or damage tothe organization. Get, Priyatanu Chalise Proprietor P. Chalise & Associates. Registered Auditor pat:,20801.08,| LO Place: Kathmandu tonne 1'3 L104 RA DVBEM ay7dSAMPRADHA POWER TRADING PVT. LTD. Statement of Financial Position ‘Ast End Ashad, 2080 (Amount in Rs.) ‘As at End Particulars Noes] Asad 2000 | ceroraer [ASSETS INon-current Assets Property, plant and equipment MM 340,600 2 Total Non-current Assets 0 : |Current Assets Cash and cash equivalents a 12,652,998 a0 Trade and other receivable a 13,100922 16,055,652 Inventories uu 1.788480 sass Total Current Assets sassosee| 2068800 ‘Total Assets oon3.96| 21,368.90 JEOUITY AND LIABILITIES. Share Holder's Fund ‘Share Capital as 1000000 2,000,000 Reserve & Surplus a6 aoni9%0 38200 Total Share Holder's Funds 13911930 5252.00 |Current Liabilities Trade and Other Payable a8 asi a8 16,116310 Income Tax Provision a 219.783 Total Current Liabilities 23071266 1616310 Total Equity and Liabilities 36988196 | 21,368.90 DIRECTOR 1t029 As per our report of even date 2080.08.10, P. CHALISE & ASSOCIATES. REGISTERED AUDITORSAMPRADHA POWER TRADING PVT. LTD. Statement of Income Asat End Ashad, 2080 (Amount in Rs.) Asat End i Asat End Particulars Notes | Ashad 20800 | 1 2079 Current Year |Income Sales 3.10 29,463,602 : ‘Total Income! 29,463,602 - Expenses Cost of Sales 32 26,054,987 : ‘Administrative Expenses 3.3 2,283,508 892,930 Depreciation 3a 245,974 6 Total Expenses| 28,584,469 892,930 Net Profit / (Loss) Before Tax and Bonus 879,133 (692,930) Balance of Net Profit (Loss) Previous Year - : Net Profit / (Loss) This Year 879,133, (692,930) Income Tax Provision 219,783 S Net Profit /(Loss) Carried over to Balance Sheet| 659,350 892,930) Significant accountng policies and notes to accounts 1029 =— P. CHALISE & ASSOCL /— REGISTERED AUDISAMPRADHA POWER TRADING PVT. LTD. Statement of Cash Flow As at End Ashad, 2080 (Amount in Rs.) As at End Particulars Ashad 2080 Current Year Asat End Ashoj-01 2079 (A) |CASH FLOW FROM OPERATING ACTIVITIES Net Profit / (Loss) during the Year 879,133 (992,930) Depreciation and amortisation 245,974 : Write off Expenses 2 : Loss on salke of Assets - - Loss on going Income Tax Paid - e |Operating Profit/(Loss) before working capital changes 41,125,107 (692.930) Decrease/(increase) in current assets, 454,607 1,823,820 Increase/(decrease) in trade payables and provisions 6,735,173 44,196) [Net cash flow from/(used in) operating activities (A) 8,314,887 886,094 |(B)|CASH FLOW FROM INVESTING ACTIVITIES Purchase of fixed assets 6,689,600) : Increase on Share Capital 8,000,000 - [Net cash flow from/(used in) investing activities (B) 4310396 a |(C)|CASH FLOW FROM FINANCIAL ACTIVITIES Director Loan 8 3 Short Term Borroeings - : Tax Paid : (0340012) Net cash flow from/(used in) financing activities (C) zi 934,012) INet increase/(decrease) in cash and cash equivalents 12,625,283 47918) |Cash and cash equivalents at the beginning of the year 27.710 75,628 [Cash and cash equivalents at the end of the year 12,652,994 27,710 Significant accounting policies and notes to accounts 11029 oan > P.CHALISE & associaTs| « ( ae, DIRECTOR REGISTERED AUDITORSAMPRADHA POWER TRADING PVT. LTD. Statement of Changes in Equity As at End Ashad, 2080 Particulars Share Capital | ,orare ree Pea roe Total Reserve | reserve lOpening Balance 2,000,000] - : : 3,252,580 | 5,252,580 JChanges in accounting policy : : : . - - Restated balance 2,000,000 : : : 3,252,580 | 5,252,580 [Surplus on revaluation proporties 8,000,000 : ; : - | 8,000,000 Deficit on revaluation of investment = S _ 2 (currency translation differences p : : : INet Profit or (Loss) after Tax - - : e 659,350] 659,350 Issue of share capital : 5 o 5 : 6 ‘This Year Balance 10,000,000] - : : 3,911,930 | 13,911,930 ha Po e ey Sh DIRECTOR P. CHALISE & ASSOCIATES REGISTERED AUDITOR 5SAMPRADHA POWER TRADING PVT. LTD. ‘Note forming part of financial statement Note 3.1: Property, Plant and Equipment Plant & Particulars Land | Building} Vechile Machinary| Total Assets Cost |Balance as at Shrawan 1, 2079 . - - - - |Addition - - 3,689,604 - 3,689,604 [Disposals e E Balance as at Ashadh 31, 2080) - - 3,689,604 - 3,689,604 [Depreciation |Balance as at Shrawan 1, 2079 - - : - : Depreciation charged forthe yeq - - 245,974 - 245,974 Disposals - : = : - Balance as at Ashadh 31, 2080) - - 245,974 - 245,974 Carrying Amount |At Shrawan 1, 2079 - = E : 3 |At Ashadh 31, 2080 » a 3,443,630 > 3,443,630 DIRECTOR P. CHALISE & ASSOCIATES REGISTERED AUDITORSAMPRADHA POWER TRADING PVT. LTD. Notes forming part of statement of financial position (Amount in Rs.) Note 3.2: Cash and Cash Equivalents As at End As at End Ashad 2080 | 4 shoj-01 2079 Particulars: Current Year Cash in hand 25,000 25,000 Cash at Bank 12,627,994 2,710 Total 12,652,994 27,710 Note 3.3: Trade and other receivable As at End As at End Ashad 2080 | 4 shoj-01 2079 Particulars: Current Year Sundry Debtors 12,676,129 15,165,573 Advance Income Tax 424,793 697,676 [Advance & Deposit : 192,403 Total 13,100,922 16,055,652 Note 3.4: Inventories As at End imam | 2h, Particulars Current Year | “S"*! [Under Constructions (WIP) a 5 |Closing Stock 7,785,650 5,285,527 Total 7,785,650 5,285,527 Note 3.5: Share Capital ‘As at End Ashad 2080 | 4. Saar Particulars Current Year | Authorised 200000 ordinary Shares of Rs.100 each 20,000,000 | _ 10,000,000 Paid-up 100000 ordinary Shares of Rs.100 each 10,000,000 2,000,000, Total 10,000,000 | 2,000,000Note 3.7: Reserve and Surplus Asat End As at End Ashad 2080 Particulars Current Year | Ashol-01 2079 Profit & Loss Profit(Loss) up P.Y. 3,252,580] 4,145,510 Profit / (Loss) for the year 659,350 (892,930) Total 3,911,930 | __ 3,252,580 Note 3.8: Trade and other payable ‘As at End As at End Ashad 2080 | shoj-01 2079 Perticarers| Current Year [Sundry Creditors 22,323,107 | 15,724,640 Audit Fee 34475 14,75 Vat & Other Payable 488,450 368,540 HTDS Payable 5,451 8,355 Total 22,851,483 | _ 16,116,310 Note 3.9: Income Tax Provision ‘As at End Asat End Ashad 2080 | shoj-01 2079 Particulars Current Year income Tax Provision 219,783 2 Total 219,783SAMPRADHA POWER TRADING PVT. LTD. Notes forming part of statement of income (Amount in Rs.) Note 3.10: Revenue from operation ‘As at End pe Particulars ena Se eee Goods Sales 29,463,602 Total 29,463,602 - Note 3.12: Material consumed expenses eee As at End eres Carrot Year | ‘200401209 Opening stock 5,285,527 5,285,527 ‘Opening stock(Under Construction) - Purchase 28,555,110 [Closing Stock (7,785,650) (5,285,527) Total 26,054,987 - Note 3.13 : Administrative expenses ‘As at Eni si | Sate Particulars Current Year Salaries & Allowances 2,010,000 813,000 Electricity & Water Charges 15,325 1,000 Travelling Expensess 16,205 - Printing & Stationary 2,560 2,060 |Guest Entertainment 1,214 850 Telephone & Postage, Courier 2,654 1,020 [Business Tax- Nagarpalika 5,500 - Loading & Unloading Expensess 12,000 : Parking Expenses 3,050 eS Audit Fee 35,000 15,000 House Rent 180,000 60,000 Total 2,283,508 892,9302a 24.2 24.3 21.5 21.6 22 22a 224 2.2.5 226 227 SAMPRADHA POWER TRADING PVT. LTD. ‘As at End Asar 2080 ‘Significant Accounting Policies & Notes to Financial Statements. General Information ‘Sampradha Power Trading Pvt.Ltd, is a . Company established under Company Act, 2077.It has registered with Inland Revenue Department vide PAN no.611044053. Basis of Preparation ‘Statement of compliance “The financial statements have been prepared in accordance with Nepal Accounting Standards. Basic of measurement “The financial statements are prepared under the Historical Cost Convention on accrual concept and are In accordance with the nepal accounting standards. Critical Accounting Estimates “The Preparation of financial Statements in confirmity with Nepal Accounting Standards requires use of certain crtical accounting estimates and judgements, The campany make certain estimates and ‘assumptions regarding the future events. In the future, actual result may differ from these estimates ‘and assumptions.The estimates and assumptions that have a signficabnt risk of causing a material ‘adjustment to the carrying amount of assets and liabilities within the next financial year are to be disdosed. Period of Financial Statement “The company's account close on end of Ashadh every year as per prevelent laws of Nepal. Functional and presentation currency “The financial Statements are prepared in Nepalese rupees and all financial figures presented in rupees has been rounded to. the nerest rupees. Previous year figure have been regrouped/rearranged wherever necessary. Significant accounting policies “The Principal accounting policies adopt in the preparation of the financial statements are set out below. “The policies have been consistency applied to all the years presented, unless otherwise stated. Share Capital Financial Instruments issued by the company are classified as equity only to the content that they do rot meet the definition of a financial labiltiy or financial asset. The company's equity shares are classified as equity instruments. ‘Trade and Other Receivables Trade and other receivables are stated at their cost less provision for impairment. The amount of provision for impairment is recognized in statement of income. ‘Cash & Cash Equivalent ‘Cash balance at the year-end is certified by management.Bank balance are the balances shown by books of accounts reconciled with bank statements. Statement of Cashflows Statement of cashflows 1s reported using the indirect method, whereby profv(ess) before tax is acute for the eects of tarsactong gf orcas nature and any ese ges of pastor ature cash receipts or payments“ Free Taxation / | \228 2.2.9 ‘SAMPRADHA POWER TRADING PVT. LTD. ‘As at End Asar 2080 ‘Significant Accounting Policies & Notes to Financial Statements. Income tax is expected tax payable on the taxable income for the year using tax rates at the balance ‘sheet date and any adjustment to tax payable in respect of previous years. ‘Trade and Other Payable ‘Trade and other payable are stated at their cost. Revenue Revenue from the sales of goods is recognized when the company has transferred the significant risk and rewards of ownership to the buyer and itis probable that the company will receive the previously ‘agreed upon payment. ‘The Notes 3.1 to 3.13 attached tothe financial statements from an integral part ofthe Financial Position & Income Statement.