Gudami International 2005 Annual Report.pdf

17826a8c1547d6acfb6cecc5b80682d8862872e62480814f31eec84821a623d6

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GUDAMI INTERNATIONAL PTE. LTD.
(Incorporated in the Republic of Singapore)
CORPORATE DATA
Board Of Directors : Chang, Chung-Ling
Chew Bee Choo
Secretary : Kaliyaperumal S/O K Jayaram
Registered Office : 63 Robinson Road #05-20
Afro Asia Building
Singapore 068894
Auditors : HAJAMAIDEEN & CO.
100 Jalan Sultan #09-06
Sultan Plaza
Singapore 199001

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REPORT OF THE DIRECTORS
The directors present this annual report to the members together with the audited financial
statements of the company for the year ended 31st March 2005.
DIRECTORS
The directors holding office at the date of this report are :
CHANG, CHUNG-LING
CHEW BEE CHOO - Appointed on 7th September 2005
ARRANGEMENTS TO ENABLE DIRECTORS TO ACQUIRE SHARES OR
DEBENTURES
Neither at the end of nor at any time during the financial year was the company a party to
any arrangement whose object is to enable the directors of the company to acquire benefits
by means of the acquisition of shares in or debentures of the company or any other body
corporate.
DIRECTORS’ INTERESTS IN SHARES OR DEBENTURES
The directors holding office at the end of the financial year and their interests in the share
capital of the company as recorded in the register of directors’ shareholdings kept by the
company under Section 164 of the Companies Act, Cap. 50 are as follows :
No. of shares of S$1 each
Name of directors At beginning of the year At end of the year
---------------------------------------------- -------------------------------- ------------------------
JOSEPH SELVAMALAR 1 1
CHANG, CHUNG-LING 1,999,999 1,999,999
DIRECTORS’ CONTRACTUAL BENEFITS
Except as disclosed in the financial statements, since the end of the previous financial year,
no director has received or become entitled to receive a benefit by reason of a contract
made by the company or by a related corporation with the director or with a firm in which he
is a member or with a company in which he has a substantial financial interest.

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BALANCE SHEET AS AT 31ST MARCH 2005
2005 2004
Note
ASSETS S$ S$
Non-current assets
Plant and equipment 2c & 3 3 3
Investments 9 11,155,068 -
Current assets
Trade advances 10 5,644,484 9,239
Trade receivables 246,927,810 3,756,813
Stock 2 (d) 1,058,400 -
Due by a director related company 4 1,093,460 1,269,991
Cash and cash equivalents 5 393,094 102,121
255,117,248 5,138,164
Current liabilities
Loan from an overseas bank 11 38,340,000 -
Trade payables 214,879,240 2,595,935
Other payables 10,942,638 461,738
Accrued expenses 5,900 3,650
Due to a director 6 500 26,982
Provision for income tax 7 6,350 1,643
264,174,628 3,089,948
Net current (liabilities) / assets (9,057,380) 2,048,216
Net assets 2,097,691 2,048,219
EQUITY
Capital and reserves
Share capital 8 2,000,000 2,000,000
Retained profit 97,691 48,219
2,097,691 2,048,219
(The annexed notes form an integral part of and should be read in conjunction with these
financial statements)

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PROFIT AND LOSS ACCOUNT FOR THE
YEAR ENDED 31ST MARCH 2005
NOTE 2005 2004
S$ S$
Revenue 9 499,232,276 1,055,543
Cost of sales 499,167,283 1,053,021
Gross profit 64,993 2,522
Other operating income 873,106 361,414
938,099 363,936
Depreciation 2c & 3 (2,600) (2,204)
Other operating expenses (879,831) (344,551)
Profit before tax 55,668 17,181
Income tax expense (5,100) (1,250)
Profit after tax 50,568 15,931
Prior year adjustment - 48
- Overprovision of tax
- Underprovision of tax previous year (1,096) -
Profit after adjustment 49,472 15,979

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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31ST MARCH 2005
Share
Capital
Retained
Profit Total
Balance at 1 April 2003 2,000,000 32,240 2,032,240
Net profit for the year - 15,979 15,979
Balance at 31 March 2004 2,000,000 48,219 2,048,219
Balance at 1 April 2004 2,000,000 48,219 2,048,219
Net profit for the year - 49,472 49,472
Balance at 31 March 2005 2,000,000 97,691 2,097,691

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CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2005
2005 2004
S$ S$
Cash flows from operating activities
Profit before taxation 55,668 17,181
Adjustments for:
Depreciation for plant and equipment 2,600 2,204
---------------- ----------------
Operating profit before working capital changes 58,268 19,385
Working capital changes:-
(Increase) / Decrease in investments (11,155,068) -
(Increase) / Decrease in loans and advances (5,635,245) (9,239)
(Increase) / Decrease in trade receivables (243,170,997) 167,760
(Increase) / Decrease in stock (1,058,400) -
(Increase) / Decrease in due by director related company 176,531 (44,916)
Decrease / (Increase) in loan from a foreign bank 38,340,000 -
Decrease / (Increase) in trade payables 212,283,305 (475,621)
Decrease / (Increase) in other payables 10,480,900 85,117
Decrease / (increase) in due to a director (26,482) (5,027)
Decrease / (increase) in accrued expenses 2,250 (8,080)
---------------- ----------------
Cash from / (used in) operations 295,062 (270,621)
Income tax paid (1,489) (2,120)
---------------- ----------------
Net Cash from operating activities 293,573 (272,741)
========= =========
Cash flows from investing activities
(Purchase) / Sale of plant and equipment (2,600) (2,079)
---------------- ----------------
Net Cash from investing activities (2,600) (2,079)
========= =========
Increase / (Decrease) in cash and cash equivalents 290,973 (274,820)
Cash and cash equivalents at the beginning of the year 102,121 376,941
---------------- ----------------
Cash and cash equivalents at the end of the year 393,094 102,121
========= =========

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(These notes form an integral part of and should be read in conjunction with the
accompanying accounts.)
NOTES TO THE ACCOUNTS - 31ST MARCH 2005
1. GENERAL
The financial statements of the company for the year ended 31st March 2005 were
authorised for issue in accordance with a resolution of the directors on the date of the
Statement By Directors.
The company is incorporated in Singapore and its registered office is at 63 Robinson
Road #05-20, Afro Asia Building, Singapore 068894.
The principal activities of the company are those of general importers and exporters.
The number of employees including directors in the company as at 31st March 2005
was 6 (2004 : 2)
2. SIGNIFICANT ACCOUNTING POLICIES
(a) Statement of compliance
The financial statements have been prepared in accordance with the Singapore
Financial Reporting Standards (FRS) as required by the Companies Act.
(b) Basis of accounting
The accounts expressed in Singapore Dollars have been prepared on a going
concern basis and in accordance with the historical cost convention.
(c) Plant and equipment and depreciation
All items of plant and equipment are initially recorded at cost. All assets are stated
at historical cost less accumulated depreciation.
Depreciation is calculated on the straight line method so as to write off the cost of
the plant and equipment over their estimated useful lives as follows.
Plant and equipment No of years
Computer 1
Office equipment 3
Fully depreciated fixed assets are retained in the accounts until they no longer in
use.
(d) Stock
Stock is stated at the lower of cost and net realisable value on the specific
identification basis.

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(e) Foreign currency transactions
Assets and liabilities in foreign currencies are translated into Singapore dollars at an
uniform exchange rates. Transactions in foreign currencies during the year are also
reflected at uniform rates @1.80 per US$ which is above the prevailing rates ruling
on the transaction dates. All exchange adjustments are reflected in the profit and
loss account.
(f) Income tax
The tax expense is determined on the basis of tax effect accounting using the
liability method and is applied to all significant timing differences. Deferred tax
benefits are not recognised unless there is reasonable expectation of their
realisation.
(g) Trade and other receivables
Trade and other receivables are recognised and carried at original invoice amount
less an allowance for any uncollectible amounts. All known bad debts are written off
and specific provision is made for those debts, which are considered to be doubtful.
(h) Impairment of assets
The carrying amounts of company’s non-current assets are reviewed at each
balance sheet date to determine whether there is any indication of impairment. If
any such indication exists, the asset’s recoverable amount is estimated. An
impairment loss is recognised whenever the carrying amount of an asset or its cash-
generating unit exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s net selling price and value in
use. The net selling price is the amount obtainable from the sale of an asset in an
arm’s length transaction. Value in use is the present value of estimated future cash
flows expected to arise from the continuing use of an asset and from its disposal at
the end of its useful life. Recoverable amounts are estimated for individual assets
or, if it is not possible, for the cash-generating unit to which the asset belongs.
An impairment loss is reversed if there has been a change in the estimate used to
determine the recoverable amount. An impairment loss is reversed only to the
extent that the asset’s carrying amount does not exceed the carrying amount that
would have been determined, net of depreciation or amortisation, if no impairment
loss had been recognised. A reversal of an impairment loss in respect of assets
carried at revalued amount is recognised in the same way as a revaluation increase.
All other reversals of impairment losses are recognised in the profit and loss
account.
(i) Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and bank balances.
(j) Trade payables
Trade payables are carried at cost which are the fair value of the consideration to be
paid in the future for goods and services received, whether or not billed to the
company.

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(k) Provisions
Provisions are recognised when the Company has a present legal and 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 of the obligation can be made.
(k) Director - related companies
These are enterprises which have at least a director in common with the company
and whereby significant influence is exercised.
(m) Income recognition
Income recognised upon sale and export of goods.
(n) Share Capital
Ordinary share capital is recognised at the fair value of the consideration received
by the Company.
(o) Employee benefits
Defined contribution plan
Contributions to defined contribution plans are recognised as an expense in the
profit and loss account in the same financial year as the employment that give rise
to the contributions.
Employee leave entitlement
Employee entitlements to annual leave are recognised when they accrue to
employees. A provision is made for the estimated liability for annual leave as a
result of services rendered by employees up to the balance sheet date.
(p) Operating leases
Leases where the lessor effectively retains substantially all the risks and benefits of
ownership of the leased item are classified as operating leases. Operating lease
payments are recognised as an expense in the profit and loss account on a straight-
line basis over the lease term.
The aggregate benefit of incentives provided by the lessor is recognised as a
reduction of rental expense over the lease term on a straight-line basis.
(q) Financial instruments
Financial instruments carried on the balance sheet include cash and bank balances,
trade debtors and trade creditors, other debtors and creditors, amount due to
directors and borrowings. The particular recognition methods adopted are disclosed
in the individual policy statements associated with each item.

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3. PLANT AND EQUIPMENT
Furniture &
fittings Computer
Office
equipment Total
$ $ $ $
Cost
At 01/04/2004 379 6,349 1,818 8,546
Additions - 2,600 - 2,600
Disposals - - - -
At 31/03/2005 379 8,949 1,818 11,146
Accumulated depreciation
At 01/04/2004 378 6,348 1,817 8,543
Depreciation for the year - 2,600 - 2,600
Disposals - - - -
At 31/03/2005 378 8,948 1,817 11,143
NET BOOK VALUE
At 31/03/2005 1 1 1 3
At 31/03/2004 1 1 1 3
4. DUE BY A DIRECTOR RELATED COMPANY
This is amount due by a director related company, unsecured, interest free and has no fixed
term of repayment.
2005 2004
S$ S$
Non-Trade 1,093,460 1,269,991
5. CASH AND CASH EQUIVALENTS
Cash in hand 49 266
Bank balance 393,045 101,855
393,094 102,121
6. DUE TO A DIRECTOR
This is non-trade, unsecured, interest-free and without fixed term of repayment.

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7. PROVISION FOR INCOME TAX
Income tax provision is obtained by applying standard corporate tax rate @ 20% after
disallowing inadmissible expenses and taking into account the tax exemption on chargeable
income for year of assessment 2005.
8. SHARE CAPITAL
2005 2004
S$ S$
Authorised - Ordinary shares of S$1 each 2,000,000 2,000,000
Issued & fully paid-up - Ordinary share of S$1 each 2,000,000 2,000,000
9. INVESTMENTS
Represents Purchase of 2,340,000 equity shares of Indian Rupees 10 each at an
agreed price of Indian Rupees 116 per share in Adani Port Limited, a company
incorporated in India from Kowa Company Limited, a company incorporated in
Japan
10. TRADE ADVANCES
Trade advances are amount received from overseas customers against future
sales.
11. LOAN FROM AN OVERSEAS BANK
This represents loan obtained from ICICI Bank UK Limited, London as follows:
Loan amount USD 21,300,000/-. Interest @ 2.31875 for period from 29 September
2004 to 29 March 2005. The loan period has been extended for another six months.
12. REVENUE
Revenue from general imports and exports 499,232,276 1,055,543
13. OPERATING PROFIT
The above is arrived at:
After charging:-
Auditor’s remuneration 5,000 2,000
Depreciation 2.600 2,204
Directors’ remuneration 64,000 63,000
Exchange loss (unrealised) 29,933 23,898
Exchange loss (realised) - 876

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14. FINANCIAL INSTRUMENTS
The company does not have any written financial risk management policies and
guidelines. The company does not hold or issue derivative financial instruments for
trading purposes or to hedge against fluctuations, if any, in interest rates and foreign
exchange. The company’s exposure to financial risks associated with financial
instruments held in the ordinary course of business include:
(a) Foreign Currency risk
The company incurs foreign currency risk on transactions and balances that are
denominated in a currency other than Singapore dollars.
(b) Credit risk
Management has a credit policy in place and exposure to credit risk is
monitored on an on-going basis. At balance sheet date, there were no
significant concentration of credit risk. The maximum exposure to credit risk is
represented by the carrying amount of each financial asset in the balance sheet.
(c) Net fair value of financial assets and liabilities
The carrying amounts of the financial assets and financial liabilities in the
financial statements approximate their fair value.

Gudami International 2005 Annual Report.pdf

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