Note: There are no defaults in repayment of principal or interest thereon
b) Commitments
i) Warranty on sals of products . -
30. SEGMENT REPORTING:
The Company is engaged in only manufacturing of mattresses, pillows and cushions which is considered as a single importable business segment and accordingly, primary reporting disclosures for business segments; as envisaged in Indian Accounting Standard (IND AS) 108 on 'Operating Segment is not applicable.
1. OPERATING LEASE (Ind AS II):
The Company has various operating leases for office facilities which is renewable on a periodic basis, and cancellable at its option. Rental expenses for operating leases included in the financial statements for the year are Rs, 75,04,524/- (Previous Year Rs, 67,01,402/-).
2.FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES:
The entity’s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the entity’s operations to support its operations. The entity’s principal financial assets include trade and other receivables, rental and bank deposits and cash and cash equivalents that are derived directly from its operations.
The entity is exposed to market risk/credit and liquidity risks. The entity’s senior management oversee the management of these risks. The board reviews their activities. No significant derivative activities have been undertaken so far.
Market Risk :
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risks: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include deposits, FVTOCI investments and derivative financial instruments.
The sensitivity analyses in the following sections relate to the positions as at March 31, 2018, March 31, 2017 and April 1, 2016.
The analyses exclude the impact of movements in market variables on: the carrying values of gratuity and other post-retirement obligations; provisions; and the non-financial assets and liabilities of foreign operations. The following assumption has been made in calculating sensitivity analyses.
NOTES TO FINANCIAL STATEMENTS
The sensitivity of the relevant profit or loss item, is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2018, March 31, 2017 and April 1, 2016 including the effect of hedge accounting.
3.FAIR VALUE MEASUREMENT (IND AS 113):
The Financial Instruments of the Company are initially recorded at fair value and subsequently measured at amortized cost based on the nature and timing of the cash flows.
The below table summarizes particulars of Financial Instruments used:
The Company has not classified any Financial Asset or Liabilities as measured at Fair value through Profit and Loss (FVTPL) or measured at Fair Value through Other Comprehensive Income (FVTOCI),
The Fair Value of the above financial assets and liabilities are measured at amortized cost which is considered to be approximate to their fair values.
4.Closing stock of inventory pertaining to finished products comprising of different individual products is valued on the basis of net billing price of such product. Hence, it is not possible to ascertain the financial impact due to the fact that the company has not been able to arrive at the cost price of each such product.
5. In respect of gratuity accrued, the company has not ascertained the same on actuarial basis nor provided for it in the accounts. Further the company has not ascertained accrued leave cash benefit payable to its employees. Accordingly, the company accounts both gratuity and leave encashment as and when paid.
6. Company is in the process of ascertaining of the impairment, if any, on any of the fixed assets and subject to such ascertainment, no recognition during the year is made in the accounts for impairment of fixed assets.
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