Atlas Cycle Industries

2008          2007
                                                    Rs.           Rs.
 
 1.  CONTINGENT LIABILITIES IN RESPECT OF
 
 a) Surety bonds executed in favour of 
 President of India through
 Customs & Excise authorities for
 payment of Central Excise/Custom duty      1,64,99,412   1,64,99,412
 
 b)  Two surety bonds in favor of government of
 
 Haryana for payment of 
 Central & Local Sales Tax                    30,40,000     30,40,000
 
 c)  Guarantees given by bank              13,51,15,101  13,11,79,841
 
 d)  Contingent liability arising 
 due to minimum wage rate
 
 Change                                     1,51,05,000   1,31,97,000
 
 e)  In respect of Entry Tax matters           9,92,000     12,80,000
 
 f)  In respect of Excise matters             56,01,000     56,01,000
 
 g)  In respect of Sales Tax matters        2,44,77,810   2,14,63,000
 
 2.  SEGMENT REPORTING
 
 Based on the guiding principles given in Accounting Standard -17
 Segment Reporting issued by the Institute of Chartered Accountants of
 India, the Companies business segment includes bicycle manufacturing
 and Steel tube manufacturing.
 
 SEGMENT ACCOUNTING POLICIES
 
 The accounting policies adopted for the segment reporting are in line
 with the accounting policies of the company with the following
 additional policies for the segment reporting.
 
 (i) Inter segment revenue have been accounted on cost to the receiving
 segmental unit.
 
 (ii) Expenses have been included to the segment on the basis of their
 relationship to the accounting activities of the segment. Expenses
 which relate to the enterprise as a whole and are not allocable to the
 segments on a reasonable basis, have been included under unallocated
 corporate expenses.
 
 (iii) Segments assets include all operating assets used by a segment
 and consist principally of operating cash, debtors, inventories and
 fixed assets and provisions, which are reported as direct offsets in
 the balance sheet. Segment liabilities include all operating
 liabilities and consist principally of creditors and accrued
 liabilities.
 
 3.  List of Small Scale Suppliers where the outstanding are over 30
 days:
 
 Alag Cycle Inds, Aarti Steel Ltd, Amber Inds, Bharat Intl, Bharat
 Udyog, Charu Auto Inds, Gobind Cycles (Pvt) Ltd, Goel Interprises,
 Govind Steel, Hindustan Tyres,, Active Cycle Industries, B.J.Sales
 Corp, Hargobind Mach Works, Meera Inds, New Modern Steel, Sabarwal
 Interprises, Brosis Intl, Vishal Udyog Pvt Ltd, Vishal Cycles Pvt Ltd,
 Auto Fan (India) Appu Intl, Sukhmani Steel, D.K.Inds, Kamal Cycles,
 Metro Tyres, Pinki Plastics, Prestige Polyfolds, Ravi Inds, Rana
 Enterprises, Rolex, Rahul Interprises. Atam Ballabh, Vishwakarma Inds,
 Ailed Strips, Bajrang Inds, D.K.Enterprises, Sony Inds, Harnek Singh &
 Co, Om Shivam Cycles, Amar Chand & Sons, Batla Corp, H.K.Engg, Randhir
 Paints, Kashmir Min & Paint Ltd, Simple Paints, Ason Bikes, Field
 Marshal Products, Great Gearts Pvt Ltd, Gupta Bikes, Jeet Enterprises,
 Margo Expots, Nagpal Enterprises, Parko Sunrise Enterprises, Syndicate
 Tyres, Kular Cycles, Lions inds, Nitya Enterprises, Pratab Cycle Inds,
 Rider Bike Pvt Ltd, Sewak Screw, Enn Gee Industrial Corp, Ess Pee Inds,
 Fit Right Organics, Rana Enterprises, Salana Cycle Inds, Ess Ess
 Products of india, Atul Metal Inds, Cargo International Packing, Crown
 Products, Durga Industries, Industrial Sales Promoters, Punjab Poly
 Pack, Rishi Udyog, Raj Impex, Saurashtra Indl Products, Saif Product,
 Sharda Packing, Chandan Inds, S.J.Cycle Inds, Speedo Expots, Active
 Cycle Inds, Amardeep Steel Inds, Balbinder Mech Works, Joginder Singh
 Tejinder Singh, Kid Ride Inds, Vee Pee Inds, Navin Enterprises, Jain
 Inds, Bansal Inds, J.B.Inds, Mankoo Steels, Randhir Indl Corp, Rajeen
 Inds, Watson Engg, Singh Packers, Advance Plastic, Ark Engg Works, Ravi
 Industries, Globe Inds.
 
 4.  RELATED PARTY DISCLOSURES UNDER ACCOUNTING STANDARD 18
 
 A.  Name ol Associated parties and nature of related party relationship
 
 i) i)Associated companies: Milton Cycles Inds Ltd, Janki Das & Sons (P)
 Ltd, Janki Das & Co., Roamer Engineering Works (P) Ltd., Exotic Flora
 (P) Ltd..  ii)Subsidiary Companies are: Atlas Cycles (Sonepat) Ltd,
 Atlas Cycles (Sahibabad) Ltd, Atlas Cycles (Malanpur) Ltd.
 
 ii) Directors & Employees (As at 31.03.2008) : Sh. I.D.Chugh, Sh.
 H.K.Ahuja, Sh. H.L. Bhatia, Sh. J.N.Sawhney, Sh. P.R. Chawla, Sh. Jai
 Dev Kapur, Sh. Vikram Kapur, Sh. Salil Kapur, Sh. Gautam Kapur, Sh.
 Girish Kapur, Sh. Sanjay Kapur, Sh. Rajiv Kapur,
 
 Sh. Angad Kapur, Sh. Rishav Kapur, Sh. Prashant Kapur, Sh. Rahul Kapur,
 Sh. Sidhant Kapur, Sh. Ashwin Kapur.
 
 5. EXTRAORDINARY ITEMS - LEGAL & PROFESSIONAL
 
 In order to recover the damage and loss which has been perpetrated by
 the ex. Malanpur Head, the legal actions initiated by the company in
 the recovery and its fight for its patent rights has caused the company
 legal expenses amounting to Rs.45.61 lacs (Previous Year Rs.  44.42
 lacs)
 
 10.  Figure of the Previous Year have been re-arranged, wherever
 necessary.