Milton Cycle Industries Limited Unlisted Shares

Annual Report Summary

Annual Report and Accounts for the Year Ended 31st March 2021 for Milton Cycle Industries Ltd. includes the following key information:

Company Information:

• The Board of Directors includes Vinod Buber (DIN: 09487600), Ashok Kumar Sharma (DIN: 09345579), and Om Parkash Sharma (DIN: 08777647).
• The registered office is located at Milton premises, industrial area, Sonepat-131001 (Haryana).
• Punjab National Bank is the company's banker.
• Mehra Khanna & Co., Chartered Accountants, Delhi, serve as auditors.

Notice for Annual General Meeting:

• The 61st Annual General Meeting (AGM) was scheduled for Friday, August 12, 2022, at 11:00 A.M. at Milton Premises, Industrial area, Sonepat-131001.
• The ordinary business included adopting the audited Balance Sheet, Profit & Loss Account, and Cash Flow Statement for the financial year ended March 31, 2021.
• Special business included the regularization of Vinod Buber and Ashok Kumar Sharma as Additional Directors. The board recommends ordinary resolution for appointment of Mr. Vinod Buber as a Director, to retire by rotation, for the approval by the shareholders of the Company, and a special resolution for Ashok Kumar Sharma as an Independent Director.

Director's Report:

• The report presents the company's financial and operational performance for the year ended March 31, 2021.
• Financial performance highlights show a decrease in net profit to Rs. (1,02,54,870) from Rs. 2,47,18,724 in the previous year.
• The company did not declare any dividend on Equity Shares for the year ended 31st March 2021 to conserve resources.
• There were changes in Directors and Key Managerial Personnel during the year. Mr. Sanjiv Khera resigned from his post. The board is seeking shareholder approval for appointing Mr. Ashok Kumar Sharma as independent director for a period of 5 years, and Mr. Vinod Buber as a director with retire by rotation basis.
• The report confirms compliance with obligations regarding sexual harassment prevention at the workplace and mentions no complaints were received during the period.
• The Directors confirm that the applicable accounting standards had been followed, and had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent to give a true and fair view of the state of affairs of the company.
• Internal Financial Controls with reference to Financial Statement are found to be adequate by the Statutory Auditors of the Company.

Auditor's Report:

• M/s Mehra Khanna & Co. were approved as Statutory Auditors of the Company for a term of five years.
• The auditor's report states that the financial statements give a true and fair view of the company's affairs as of March 31, 2021, and its loss and cash flows for the year ended on that date, in accordance with accounting principles generally accepted in India.
• Litigations are pending against the company which would impact its financial position. The company has delayed payment to suppliers including MSME resulting 27 MSME and 1 No of suppliers has filed cases against company in various MSME Council and NCLT for recovery of their outstanding dues. Total amount for recovery suits filed against company is Rs 9,56,91,263.
• The company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

Financial Statements:

• The Balance Sheet as at 31st March 2021, shows total equity and liabilities of Rs. 39,91,68,763 and total assets of Rs. 39,91,68,763.
• The Statement of Profit and Loss for the Year Ended 31st March 2021 reports a loss for the period of (1,02,54,870).
• The Cash Flow Statement for the Year Ended 31st March 2021 shows net cash generated by operating activities as 2,46,77,756.

Significant Accounting Policies:

• The accounts are prepared using historical cost convention and on a going concern basis.
• Fixed Assets are stated at cost less accumulated depreciation and amortisation. Depreciation is charged on written down value basis.
• Inventories are valued at the lower of cost or net realisable value.
• Provision for current tax is made on the basis of estimated taxable income, and deferred tax is accounted for based on timing differences.

Share Capital:

• The Authorized Capital includes redeemable cumulative preference shares and equity shares.
• The Issued, Subscribed and paid-up capital consists of equity shares issued for cash and bonus shares by capitalization of reserves.

Contingent Liabilities:

• Surety bonds for payment of central and local sale tax by the Company and related entities are listed.
• Interest on Recovery Cases before MSME Council/NCLT by supplier.