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.
2. Certain bank accounts as mentioned below in table have become non- operative due to non- KYC
compliance and hence, bank statement could not be obtained for the year 2023-24. Therefore, the
balances as on 31-03-24 are taken as per book of accounts:
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
analyses in the following sections relate to the position as at 31st March 2024 and 31st March 2023.
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 .
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.
These plans typically expose the COMPANY to actuarial risks such as: investment risk, inherent interest
rate risk , longevity risk and salary risk
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
(i) The Company is engaged in the business of "Manufacturing and Selling of Bicycles" and therefore,
has only one reportable 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.
50 Additional notes to the Standalone financial Statement as required under Schedule 3 of Companies
Act, 2013
XII Compliance with approved Scheme(s) of Arrangements
Where any Scheme of Arrangements has been approved by the Competent
Authority in terms of sections 230 to 237 of the Companies Act, 2013, the
Company shall disclose that the effect of such Scheme of Arrangements have
been accounted for in the books of account of the Company 'in accordance with
the Scheme' and 'in accordance with accounting standards' and deviation in this
regard shall be explained NA
XIII Utilisation of Borrowed funds and share premium:
Borrowed funds and Share Premium utilised for business purpose
The Accompanying notes are integral part of these standalone financial statements
As per our Report of even date
For Dinesh Nangru & Co Chander Mohan Dhall Ishwar Das Chugh Kartik Roop Rai
Chartered Accountants CFO & Whole Time Director Director Director
Firm Registration No. 015003N DIN 01398734 DIN 00073257 DIN 6789287
Dinesh Nangru Prakhar Rastogi
Partner Company Secretary
Membership No. 094779 M NO A69459
UDIN:24094779BKEQSL4783
Place: Sahibabad
Date: 29-05-2024
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