1.10. Provisions, contingent liabilities and contingent assets
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. Provisions are reviewed at each
reporting period and are adjusted to reflect the current best estimate.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of
which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the Company or a present obligation that arises from past events where it is either
not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be
made. Information on contingent liability is disclosed in the Notes to the Financial Statements. Contingent assets
are not recognized in financial statements but are disclosed, if any.
1.11. Borrowing cost
Borrowing costs incurred for the acquisition or developing of qualifying assets are recognized as part of cost of
such assets when it is considered probable that they will result in future economic benefits to the company. While
other borrowing cost are expensed in period in which they are incurred
1.12. Foreign currency transactions
Financial statements have been presented in Indian Rupees, which is the Company's functional and presentation
currency. Transactions in foreign currencies are initially recorded by the Company at rates prevailing at the date
of the transaction. Subsequently monetary items are translated at closing exchange rates of balance sheet date and
the resulting exchange difference recognised in profit or loss. Differences arising on settlement of monetary items
are also recognised in profit or loss.
1.13. Provision for bad debts
Provision against doubtful debtors to be created based on the age and category (good, doubtful, disputed and
irrecoverable) of the debtors. Provision for Bad and Doubtful debts have been created on case to case basis after
assessing the recoverability aspect.
1.14. Government grant
Grants related to specific Fixed Assets are disclosed as a deduction from the value of concerned Assets. Grants
related to revenue are credited to the statement of Statement of Profit and Loss. Grants in the nature of promoter's
contribution are treated as Capital Reserve.
1.15. Cash flow statements
Cash Flow is reported using indirect method, whereby net profits before tax is adjusted for the effects of
transactions of a non- cash nature and any deferrals or accruals of past or future cash receipts or payments. The
cash flow from regular revenue generation, investing and financing activities of the company are segregated.
81 * This amount pertains to the years prior to the FY 2013-14 on account of unauthorised/ unapproved rent payment the
residence of then president of sonipat unit against which the company has filled suits in jurisdictional courts.
** This amount represent Rs 22.6583(22.6583) Lacs being amount fradulently withdrawn from PNB Sonepat during f.y
2016-17 against which FIR & legal case filled in Mirzapur U.P.
A) The rights, preferences and restrictions attaching to each class of shares including restrictions on the distribution
of dividends and the repayment of capital :
B) The company has only one class of equity shares having a par value of RS 5 per share. Each holder of equity
shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend
proposed, if any, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual
General Meeting and also has equal right in distribution of Profit/Surplus in proportions to the number of equity
shares held by the shareholders.
20.1 *This includes
a) Rs 590.00( Rs 590.00 ) Lacs as advance received during the financial year 2015-16 against proposed sale of non-core
assets being H.N.115-126,214 and 216 housing board colony , murthal adda , Sonipat and H.N. 58L model Sonipat.
Against which sale deed is pending .
b) Rs 3280.00(1000.00) Lacs as advance received against land of Sonipat Plant.
c) Rs 21.89 (21.89) Lacs as advance received against small piece land sitiuated in Milton premises Sonipat
37 FINANCIAL RISK MANAGEMENT
The Company's principal financial liabilities, other than derivatives, comprise borrowings, trade and other payables,
and financial guarantee contracts. The main purpose of these financial liabilities is to manage finances for the Company's
operations. The Company has loan and other receivables, trade and other receivables, and cash and short-term deposits
that arise directly from its operations.The Company's activities are expose it to market risk, credit risk and liquidity
risk.
I. Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risks, such
as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings,
deposits, investments.The sensitivity analysis in the following sections relate to the position as at 31st March 2026 and
31st March 2025.
The analyses exclude the impact of movements in market variables on the carrying values of gratuity and other
postretirement obligations; provisions; and the non-financial assets and liabilities of foreign operations. The sensitivity
of the relevant profit or loss item is the effect of the assumed changes in respective market risks.
(a) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. In order to optimize the Compnay's position with regard 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 the fixed rate andd floating rate financial instruments in its total portfolio .
(b) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes
in foreign exchange rates. The Company is exposed to the foreign exchange risk through its trading sales.
II. Credit risk
Credit risk arises from the possibility that the counterparty will default on its contractual obligations resulting in
financial loss to the company. To manage this, the Company periodically assesses the financial reliability of customers,
taking into account the financial conditions, current economic trends, and analysis of historical bad debts and ageing
of accounts recievable.
The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing
activities, including deposits with banks, mutual funds and other financial instruments.
The Company extends credit to customers in normal course of business. The Company considers factors such as credit
track record in the market and past dealings for extension of credit to customers. The Company monitors the payment
track record of the customers. Outstanding customer receivables are regularly monitored. The Company evaluates
the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions
and industries and operate in domestic markets. The Company has also taken advances and security deposits from its
customers, which mitigate the credit risk to an extent.
III. Liquidity Risk
Liquidity risk is defined as the risk that company will not be able to settle or meet its obligation on time or at a
reasonable price. The Company's objective is to at all times maintain optimum levels of liquidity to meet its cash and
collateral requirements. The Company's treasury department is responsible for liquidity, funding as well as settlement
management. In addition, processes and policies related to such risk are overseen by senior management. Management
monitors the Company's net liquidity position through rolling, forecast on the basis of expected cash flows.
The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting
date based on contractual undiscounted payments:
38 Capital Management
The primary objective of the Company's Capital Management is to maximize the shareholder value and also maintain an optimal
capital structure to reduce cost of capital. In order to manage the capital structure, the Company may adjust the amount of return
on capial to shareholders, issue new or sell assets to reduce debts. The Company monitors capital using gearing ratio, which is
net debt divided by total capital plus debt.
Notes-
(i) Debt is defined as long-term and short-term borrowings including current maturities (excluding derivatives) as described in
notes 19 and 22.
(ii) Total equity (as shown in balance sheet) includes issued capital and all other equity reserves.
39 Recognition of opening and closing balances of Defined Benefit Obligation
In accordance with the Payment of Gratuity Act, 1972, the Company provides for gratuity, as defined benefit plan. The
gratuity plan provides for a lump sum payment to the employees at the time of separation from the service on completion
of vested year of employment i.e. five years. During the year unavoidable circumstances company has not got the acturial
for the year under reporting.
The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year.The
diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity.
48 Segment Information
The company is engaged in the business of "Manufacturing and Selling of Bicycles" and therefore, has only one reportable
v' segment in accordance with IND AS 108 " Operating segments)
49 PREVIOUS YEAR FIGURES
Figures of the Previous Year have been regrouped, rearranged and reclassified to conform to the current year classification.
1. Trade Receivables Aging for 2026 and 2025
2. Trade paybles Aging for 2026 and 2025
3. Promoter shareholding pattern
4. Additional Notes
|