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.
29.1 # This include excess provosion for gratuity amountin to Rs 110.18 (in Lacs)(Rs one crore ten lakhs seventeen thousand
six hundred sixty five only) made in Shahibabad unit of Company earlier in the financia year of 2019-2020 has now
been written back as it is no more required and this also includes Rs 657.58 (in Lacs) (Rs six crores fifty seven lakhs fifty
seven thousand nine hundred seventy five only) pertaining to the provision for salary n benefits claimed by 23 employees
of Sonepat Unit of the Company for the period from 1st January 2020 to 6th December 2022 in the Court of Shri Sunil
Nandal, Authority,under the payment of wages Act 1936 Circle-1, Sonepat. The Company disputed the claim based on the
fact NO WORK AND NO WAGES as Sonepat Unit was sealed by the Municipal Corporation, Sonepat,and the operation
of the unit remaind closed, with no attendence of theses employees. Since the claim application filled by the above said
employees have been disposed by the Adjudicating Authority without giving any relief, on account of which the company
has reversed the said provision, Some of the employees have now gone to NCLT, Delhi, where no interim relief has so far
been granted.In view of the above, the Company management has decided to consider this liability as contingent liability
only, pending Court adjudication.
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 2025 and 31st March
2024.
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:
48 Segment Information
The company is engaged in the business of "Manufacturing and Selling of Bicycles" and therefore, has only one
v' 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.
As per our Report of even date
For Dinesh Nangru & Co
Chartered Accountants
Firm Registration No. 015003N
C.M. Dhall Kartik Roop Rai
CFO & Whole Time Director Director
Dinesh Nangru DIN 01398734 DIN 6789287
Partner
Membership No. 094779 Rash Pal Singh
UDIN:25094779BMJGFX9271 Company Secretary
Place: Delhi M NO A 18279
Date: 24.05.2025
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