Primary
Packing Credit:- Hypothecation of stock meant for export and charge on the current assets of the company.
Letter of Guarantee:- Counter guarantee of the company and extension of charge on current assets of the compnay.
Forward contract:- Letter of undertaking from the company to indemnify the bank for loss, if any on account of exchange rate fluctuation.
* Term loan taken from punjab national bank against hypothecation of machinery purchased out of bank loan repayable in 60 equal installmentss after a moratorium perriod of 6 months carrying interest rate @ MCLR(5Yrs) 1.65% i.e. 11.25%.
Collateral
The above facility is collaterally secured against property at Plot no.21, Sector -6, Industrial Area, Faridabad owned by SPL Industries Limited. Loan is secured by the personal guarantee of : (1) Mr.Mukesh Kumar Aggarwal (2) Mrs. Shashi Aggarwal (3) Mr. Vijay Jindal (4) Mr. Narender Aggarwal.
Defined Benefit Plan
The employee’s gratuity fund scheme managed by a trust (LIC of India and SBI ) is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Project Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
1 SEGMENT REPORTING
The Segment reporting of the Company has been prepared in accordance with IND AS-108, “Opearting Segment” (Specified Under section 133 of the companies Act 2013, read with Rule 7 of Companies (Accounts) Rules 2015). For management purposes, the company is organized into business units based on its products and services and has two reportable segments as follows:-
(a) Manufacturing cotton knitted garments and made ups and Processing Charges
(b) Trading of garments segments have been identified as reportable segments by the Company chief operating decision maker (“CODM”). Segment profit amounts are evaluated by the board, which has been identified as the CODM, in deciding how to allocate resources and in assessing performance.
Segments Revenue,Results, Assets and Liabilities include the respective amounts identifiable to each of the segments and amount allocated on a reasonable basis. Unalloacted expenditure consits of common expenditure incurred for all the segments and expenses incurred at corporate level.The assets and liabilities that cannot be allocated between the segments are shown as unallocated corporate assets and liabilities respectively.
The accounting policies of the reportable segments are the same as the Company’s accounting policies described in Note 3. Segment profit (Earnings before interest, depreciation and amortization, and tax) amounts are evaluated regularly by the Board that has been identified as its CODM in deciding how to allocate resouces and in assesing performance. The Company financing (Including finance costs and finance income) and income taxes are reviewed on an overall basis and are not allocated to operating segments.
2 Current Assets, loans & advances
Sundry debtors, loans & advances are subject to confirmation and adjustment theron (if any)
3 MSME DISCLOSURE
MSME Disclosure as required under Notification No. G.S.R. 679 (E) dated 04th September, 2015 issued by the Ministry of Corporate Affairs (as certified by the Management)
4 As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, need to spent at least 2% of average net profit for the immediately preceeding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are as per CSR Policy of the Company. A CSR committee has been formed by the company as per the Act. During the year the funds were donated/spent as per detailed above which are specified in Schedule VII of the Companies Act, 2013:
5. The previous year figures have been regrouped/ reclassified, wherever necessary to conform to the current year presentation.
6 Financial Instruments
i) Financial assets measured at fair value through profit/loss
This section gives an overview of the significance of financial instruments for the Company and provides additional information on the balance sheet. Details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial assets and financial liabilities are disclosed in Note 3.
The carrying value of trade receivables, trade payables, cash and cash equivalents and other current financial liabilities approximate their fair values largely due to the short-term maturities.
Fair Value Hierarchy
The table shown below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined below: Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices)
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)
The fair value of the financial assets and liabilities are included at the amount that would be received to sell an asset and paid to transfer a liability in an orderly transaction between market participants. The following methods and assumptions were used to estimate the fair values:
- Non-current borrowings including current maturity of long term borrowings: Fair value has been determined by the Company based on parameters such as interest rates.
Other non-current financial assets and liabilities: Fair value the carrying value as considered to approximate to fair value.
Derivative financial assets/liabilities: The Company enters into derivative contracts with various counterparties, principally financial institutions. Forward foreign currency contracts are valued using valuation techniques with market observable inputs. The most frequently applied valuation techniques for such derivatives include forward pricing using present value calculations, foreign exchange spot and forward premium rates. There has been no transfer between level 1 and level 2 duirng the above periods.
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