Our endeavour is to enhance Stakeholders' Value - Uflex Ltd.
Our endeavour is to enhance Stakeholders' Value - Uflex Ltd.
Our endeavour is to enhance Stakeholders' Value - Uflex Ltd.
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DIRECTOR’S FLEX AMERICAS REPORT S.A. DE C.V.<br />
Notes <strong>to</strong> the Financial Statements for the year ended 31 March 2009<br />
UFLEX LIMITED<br />
18 Financial instruments: Credit, interest rate and exchange rate r<strong>is</strong>k exposures<br />
Credit r<strong>is</strong>k<br />
The establ<strong>is</strong>hment seeks <strong>to</strong> limit its credit r<strong>is</strong>k with respect <strong>to</strong> cus<strong>to</strong>mers by setting credit limits for individual cus<strong>to</strong>mers and<br />
moni<strong>to</strong>ring outstanding receivables.<br />
Interest rate r<strong>is</strong>k<br />
The Company has taken a loan from banks designated in Euro / USD. The Facilities in Euro are linked with the Ebour and in USD<br />
are linked with the Lbour. The Company <strong>is</strong> at r<strong>is</strong>k <strong>to</strong> the extent of the fl ucatuation in the Libour/ Euribor<br />
Exchange rate r<strong>is</strong>k<br />
The Company <strong>is</strong> at the Exchange r<strong>is</strong>k <strong>to</strong> the extent of the outstanding exposure in the Foreign Currency. The details of the<br />
outstanding foreign currency exposure as on the balance sheet date <strong>is</strong> as under:<br />
Equivalent<br />
MXP<br />
2009 2008<br />
Equivalent<br />
Rs. In Lacs<br />
Equivalent<br />
MXP<br />
Equivalent<br />
Rs. In Lacs<br />
Foreign currency fi nancial assets:<br />
USD<br />
Foreign Currency Financial Liabilities:<br />
2,926,932.83 103.32 -<br />
-<br />
USD 19,492,058.45 688.07 5,366,483.75 189.44<br />
Euro 295,683,225.77 10,437.62 - -<br />
19 Financial instruments: Fair values<br />
The fair values of the establ<strong>is</strong>hment’s fi nancial assets, compr<strong>is</strong>ing of trade & other receivables and cash & bank balances and<br />
fi nancial liabilities, compr<strong>is</strong>ing of trade & other payables and accounts payable for capital expenditure approximate <strong>to</strong> their<br />
carrying values<br />
20 Related party transactions<br />
The Company in the normal course of business enters in<strong>to</strong> transactions with other business enterpr<strong>is</strong>es that fall within the<br />
defi nition of related party contained in the International Accounting Standard - 24. Related parties are the entities under<br />
common ownership and/or common management control and associates.<br />
The related parties and their outstanding balances at the balance sheet date are as under:<br />
2009 2008<br />
MXP Rs. in Lacs MXP Rs. in Lacs<br />
Name of related parties Dr/(Cr) Dr/(Cr) Dr/(Cr) Dr/(Cr)<br />
Flex America Inc. 2,926,932.83 103.32 - -<br />
UFLEX Limited. (19,350,162.75) (683.06) 495,000.00 17.47<br />
Flex Middle East FZE (141,895.70) (5.01) (5,861,483.75) (206.91)<br />
The nature of signifi cant related party transactions during the year and the amounts involved are as under:<br />
2009 2008<br />
MXP Rs. in Lacs MXP Rs. in Lacs<br />
Flex America- Sales at Normal price 2,926,932.83 103.32 8,825,588.00 311.54<br />
UFLEX Limited - Purchases at normal price 12,956,270.62 457.36 5,704,742.00 201.38<br />
UFLEX Limited - Sales at normal price -<br />
- 2,950,250.00 104.14<br />
UFLEX Limited - Technical superv<strong>is</strong>ion services fees -<br />
- 750,000.00 26.48<br />
Upet (Singapore) Pte. <strong>Ltd</strong>. 322,959,000.00 11,400.45 -<br />
-<br />
UFLEX Limited - Expenses Reimbursement 6,462,436.48 228.12 -<br />
-<br />
UFLEX Limited - Capital introduced -<br />
- 500,000.00 17.65<br />
Flex Middle East-Security Deposit -<br />
- 5,861,483.75 206.91<br />
TWENTIETH ANNUAL REPORT 2008 - 2009 | 127 |<br />
S U B S I D I A R I E S
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