A provision is recognized when the Company has a present obligation (legal or constructive) as a result of past event
and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, in
respect of which a reliable estimate can be made.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but
probably will not require an outflow of resources.
16.1 Car Loans from Bank & Financial Institutions are secured by hypothecation of Motor Cars for
which loan has been taken.
16.2 Term Loans from Banks are secured by hypothecation of all the fixed assets of the company.
16.3 Term Loan from Banks are also secured by entire Land & Building of the Company located at
Kudsad-Kim, Olpad, Taluka, Surat.
16.4 The Term Loans are also secured against Flat at Soffitel Tower, Surat and Office at
International Trade Center, Surat of the company. Term Loan is also secured against peronal
properties of directors and sister concern M/s Mohit Yarns Ltd. All the term loans are guaranteed
by directors of the Company.
16.5 Terms of Repayment of Term Loans:-
(a) Term Loans of Axis Bank are repayment in Monthly installmnets of Rs. 914750/-; Rs.
1300000/- and Rs. 11,58,000/- each and shall be repaid by November, 2024; March, 2025 and
November 2026. The rate of interest is 9.00% p.a.
(b) Car Loan taken from ICICI bank is repayable in installments of Rs. 11,841/- each.
(c) Car Loan taken from BMW Financial Services is repayable in installments of Rs. 99,059/- each.
42 Financial Risk Management
Mohit Industries Limited (MIL) continues to deploy a well-articulated risk management framework. This is based upon a
three-tiered approach encompassing (i) enterprise risks, (ii) process risks, and (iii) compliance risks.
(i) Enterprise risk: The company continue to evaluate the risk and also ensures that the mitigation processes are in place.
(ii) Process risk management involves assurances by the Company's internal audit department regarding the effectiveness of
business and financial controls and processes in all key activities across the various business processes.
(iii) Compliance risk management comprises a detailed mechanism of assurances with respect to adherence of all laws and
regulations, with a comprehensive reporting process that cascades upwards from the accountable business line executives to
MIL's Audit Committed and then on to the Board of Directors.
The outcomes of business review meetings conducted by management and internal audit regarding processes and their
compliance, as well as observations of the Audit Committee and the Board of Directors are continuously incorporated to
capture new risks and update the existing ones. All three dimensions of MIL's Risk Management framework are reviewed
annually for their relevance and modifications, as required. The businesses and internal audit make regular presentations to
the Audit Committee for detailed review. The risk management process, including its tracking and adherence, is substantially
enabled for greater consistency and better reporting capabilities.
Note on Explanation for difference in amount as per Books of accounts and amount reported in quarterly statement /
return filed with bank: -
1 The difference between amounts as per books of accounts and amounts reported in quarterly statement filed with bank is
because stock statements are filed with bank before updation / finalization of accounts for quarterly limited review /
audit of the accounts. Hence, debtors, creditors and stock are reported on adhoc basis with bank without complete
updation of books of accounts. Further stock reported in bank is inclusive of GST amount in value of stock.
For RAJENDRA SHARMA & ASSOCIATES For & On Behalf of Board of Directors
Chartered Accountants
Firm Registration No.: 108390W
Narayan Saboo Naresh Saboo
(Managing Director) (Director)
DIN: 00223324 DIN: 00223350
(Rajendra Ratanlal Sharma)
Partner
M. No. 044393
Surat, 29th May, 2024 Manish Saboo Shrikanth Masarm
(Director & CFO) (Company Secretary)
DIN:01576187
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