(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 obligationthat arises from past events whose existence willbe confirmedby the occurrence or non 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.
(iii) 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 incash 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 Lakhs (upto two decimals), unless otherwise stated as per
the requirement of Schedule III (Division II).
* The above Investments does not include equity investments in subsidiaries, associates and joint ventures which are carried at costs and hence are notrequired 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 ofbusiness, the companyis exposed to certainfnancialrisk that could have considerable influence onthe 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 ofrisks. It is the Company’s policy thatno trading in derivatives for speculative purposes maybe undertaken. The companyuses 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 :
Interestrate risk is risk thatthe fairvalue or future cash flows ofa fnancialinstrument will fluctuate because of changes in marketinterest rates. The companyis exposed to interestrate 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 anafysis below has been determined based on the exposures to interest rates at the end ofthe 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 internal^ to key
management personnel and represents Management’s assessment of the reasonably possible changes in interest rates.
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 2023-24 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, 2024.
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 Curre ncy / Virtual Curre ncy
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.
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 Se gme ntal Re po rting
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 financialyear ended March 31, 2024 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.Be swal & Associates For and on behalf of Board of Directors
Chartered Accountants Sunil Industries Limited
Firm Reg No.:101083W Sd/-
Vinod Lath
(Chairman & Managing Director)
Sd/- (DIN:64774)
CA Kunal V Beswal Sd/-
Partner Pradeep Roongta
Membership Number- 131054 (CFO & WTD)
(DIN:130283)
Sd/-
Place : Mumbai Sourabh Sahu
Date : 27-05-2024 Company Secretary
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