(S) Provisions, contingent liabilities and contingent assets
(i) Provisions:
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to a
provision is presented in the statement of profit and loss.
(ii) Contingent liabilities:
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or noni occurrence of one or more uncertain
future events beyond the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to
settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The
Company does not recognise a contingent liability but discloses its existence in the financial statements.
(ii) Contingent Assets:
Contingent Assets are disclosed, where an inflow of economic benefits is probable.
(T) Investments
On transition to Ind AS, equity investments are measured at fair value, with value changes recognised in Other Comprehensive Income, except for those mutual fund for
which the Company has elected to present the fair value changes in the Statement of Profit and Loss.
(U) Trade receivables
Trade receivables are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method, less provision for expected
credit loss.
(V) Trade and other payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. Trade and other payables are
recognised, initially at fair value, and subsequently measured at amortised cost using effective interest rate method.
(W) Operating Cycle
Based on the nature of products/activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company
has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non current.
(X) Rounding of amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest Rupees Lacs (upto two decimals), unless otherwise stated as per the
requirement of Schedule III (Division II).
17.1 Secured Working Capital Loans, Term Loans & Property Loan taken from Standard Chartered Bank are secured against
hypothecation of all current assets of the company, both present and future. Further,primary pari passu Equitable mottgage charge
over on Certain Immovable and all Movable Property, Plant & Equipment situated at Shed No Plot 8, MIDC Phase II, Dombivili -
East, Thane - 421203 together with property at Flat No. 33, 5th Floor, Building Sunbeam May Flower Co Op Hsg Soc Limited, 3A
Peddar Road, Mumbai-400026. Further Secured by Personal guarantee of the directors and Corporate guarantee of Sunil Exim
Private Limited as mentioned in the loan documents executed by the Company.
17.2 Vehicle Loans from ICICI Bank & Union Bank are secured against the respective vehicles against which the term loan financed by
the banks.
Terms of Repayment:-
17.3 Working Capital Term Loan From Standard Charterd Bank of Rs. 200 lakhsby way of Emergency Credit Line Gurantee Scheme.
The loan is repayable in the form of 36 Monthly Installments commencing after completion of initial Moratoriumn of 12 Months.
The loan is repayable upto 30-09-2025. The Interest on loan will be paid on monthly basis charge by the bank.
17.4 Working Capital Term Loan From Standard Charterd Bank of Rs. 140 lakhs by way of Emergency Credit Line Gurantee Scheme.
The loan is repayable in the form of 36 Monthly Installments commencing after completion of initial Moratoriumn of 12 Months.
The loan is repayable upto 10-07-2027. The Interest on loan will be paid on monthly basis charge by the bank.
17.5 Term Loans & Property Loan From Standard Charterd Bank are repayable in the form of Equated Monthly Installments. The Term
Loans are repayable upto 31-07-2024.
17.6 Vehicle Loans From Banks are repayable in the form of Equated Monthly Installments bifurcated into 36 Months.
36 Fair Value Measurement
Financial Instrument by category and hierarchy
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or
The following methods and assumptions were used to estimate the fair values :
i. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate
their carrying amounts largely due to short term maturities of these instruments.
ii. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counter party. Based on
this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.
iii. For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.
* The above Investments does not include equity investments in subsidiaries, associates and joint ventures which are carried at costs and hence are not required to be disclosed as per Ind AS 107
“Financial Instrument Disclosures.
The fair values of current debtors, cash & bank balances, loan to related party, security deposit to goverment deparment, current creditors and current borrowings and other financial liability are
assumed to approximate their carrying amounts due to the short-term maturities of these assets and liabilities.
Fair value measurements using significant unobservable inputs (level 3)
37 FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES
In the course of business, the company is exposed to certain financial risk that could have considerable influence on the Company’s business and its performance. These include market risk (
including currency risk, interest risk and other price risk), credit risk and liquidity risk. The Board of Directors review and approves risk management structure and policies for managing risks and
monitors suitable mitigating actions taken by the management to minimise potential adverse effects and achieve greater predictability to earnings.
In line with the overall risk management framework and policies, the treasury function provides service to the business, monitors and manages through an analysis of the exposures by degree and
magnitude of risks. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken. The company uses derivative financial instruments to hedge risk exposures
in accordance with the Company’s policies as approved by the board of directors.
i. Market Risk - Interest rate risk :
Interest rate risk is risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The company is exposed to interest rate risk
pertaining to funds borrowed at both fixed and floating interest rates. In order to optimize the Company’s position with regards to interest income and interest expenses and to manage the interest
rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.
The Sensitivity analysis below has been determined based on the exposures to interest rates at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming that the
amount of the liability as at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key
management personnel and represents Management’s assessment of the reasonably possible changes in interest rates.
ii. Equity Price Risk
Equity price risk is related to the change in market reference price of the investments in quoted equity securities. The fair value of some of the Company’s investments exposes the company to equity
price risks. At the reporting date, the company do not held any quoted equity securities.
Note:
The related party relationships and transactions have been determined by management of the Company on the basis of the requirements of the Ind AS 24 “ Related Party
Disclosures” and the same have been relied upon by the auditors.
The relationships as mentioned above pertain to those related parties with whom transactions have taken place during the year.
Related parties have been identified by the Management. Actual re-imbursement of expenses/taxes paid on behalf of related parties is not considered as a related party
transactions for disclosure purpose
44 Contribution to political parties during the year 2024-25 is Rs. Nil (previous year Rs. Nil).
45 There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31,2025.
46 Disclosure pertaining to Immovable properties
i) The title deeds, of all the immovable properties (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favour
of the Company) disclosed in the financial statements included in Property, Plant and Equipment are held in the name of the Company as at the balance sheet date.
ii) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets during the current or previous year.
47 Wilful defaulter
The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority
48 Compliance related to number of layers prescribed under clause (87) of Section 2 of the Act is not applicable to the Company, keeping in view the fact that the
Company has no subsidiaries.
49 Utilisation of Borrowings availed from Banks and Financial Institutions
The borrowings obtained by the Company from banks and financial institutions have been applied for the purposes for which such loans were taken.
50 Crypto Currency / Virtual Currency
The company has not done any transaction in Crypto or Virtual currency.
51 The company has not entered into any Scheme’s of arrangements with the competent authority in terms of Sec. 230 to 237 of the Companies Act, 2013.
52 Details of pending charge creation / satisfaction registration with ROC.
The Company does not have any charges or satisfaction which are yet to be registered with ROC beyond the statutory period.
* In the case of Excise Duty Liability, the Company had filed an appeal before CEGAT. An order was passed by CEGAT dated 30.01.2018 and had remanded the
matter back to the Adjudicating Authority namely Commissioner of Central Excise, Thane-I to adjudicate the matter afresh, hence the demand of Rs. 1.41 crores stands
remitted until the final order is passed by the Commissioner of Central Excise, Thane-I. The management is of the view no provision is made as this will not impact the
financial statements.
** In the case of Custom duty, the contingent liabilities is on account of the “departmental” appeal filed by custom authorities, the company had in fact received the
order in its favor, in the first appeal. Therefore the management of the company is of the view that the departmental appeal would be dismissed in favor of the
company, hence the same is shown as a contingent liability and no provision is made as it will not impact the financial statements
*** In the case of TNVAT Liability, the company has filed appeal to the Sales Tax/VAT authorities. The management is in the view that the demands will be deleted
and no provision is to be made as this will not impact the financial statements.
**** The company has filed an appeal against the said order, Commissioner Appeal GST Act Central Excise against the said claim, where the management of the
company is sure that this claim will be nullified and the case shall be in favour of the company. In order to file the appeal the company has deposited 10% of the
disputed liability under protest on 15-04-2025 amount to Rs.23.21 lakhs by way of debiting the GST Credit Register.
57 No proceedings were initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988.
58 Disclosure on transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under
the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961, is not applicable to the Company, since no such
event occurred during the year.
59 Segmental Reporting
The Company is engaged only in Textile business and there are no separate reportable segments as per Ind AS 108.
60 Utilization of borrowed funds and share premium:
A)
The company has not granted/advance/invested funds in any entities or to any other person including foreign entities during the year with the understanding that the:
a) Intermediary shall directly or indirectly lend or invest in any manner whatsoever by or on behalf of the company (Ultimate beneficiaries).
b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
B) The company has not received any funds during the year from any person’s/entities including foreign entities with the understanding that the company shall
a) Directly or indirectly lend or invest in any manner whatsoever by or on behalf of the funding entity (Ultimate beneficiaries).
b) Provide any gurantee, security or the like to or on behalf of the ultimate beneficiaries.
61 Relationship with Struck off Companies
There are no companies which are struck off in MCA.
62 Rule 11(g) of Companies (Audit and Auditors) Rules, 2014
The Company has used accounting softwares for maintaining its books of account for the financial year ended March 31, 2025 which has a feature of recording audit
trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the softwares.
63 In the opinion of the Board :
i) The current assets, loans and advances will realise in the ordinary course of business, at least the amount at which these are stated in the Balance Sheet. The
balances of Trade Receivables, Trade Payables and Loans and Advances are subject to confirmation and consequential adjustment, if any.
ii) Provision for all known liabilities have been made.
64 The company has a spinning unit at Dindigul, Tamilnadu. The accounts of the Dindigul unit has been audited by B. Thiagarajan & Co. - Chartered Accountants.
Further, the Company has an sale Division in Surat, where separate financials has been prepared and has been audited by A.K. Adukia & Co. - Chartered Accountants.
65 Figures of previous year have been regrouped, rearranged, reclassified where ever necessary to make them comparable with that of current year.
For V.K.Beswal & Associates For and on behalf of Board of Directors
Chartered Accountants Sunil Industries Limited
Firm Reg No.:101083W
Vinod Lath
(Chairman & Managing Director)
(DIN:64774)
CA Kunal V Beswal
Partner Pradeep Roongta
Membership Number- 131054 (CFO & WTD)
(DIN:130283)
Place : Mumbai Sourabh Sahu
Date : 21 -05-2025 Company Secretary
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