Atlas Cycles (Haryana) Limited — Results, 08-07-2025: Reply to Clarification- Financial results

Atlas Cycles (Haryana) Ltd has announced a board meeting on 24th May 2025 to consider the financial results for the quarter and half-year.

Key financial highlights (figures in Lakhs, as stated):

- Total Income: ₹2,879.80

- Total Expenditure: ₹1,928.54 (audited), ₹2,050.37 (adjusted)

- Net Profit: ₹951.26 (as reported), ₹829.43 (adjusted)

- Earnings Per Share: ₹14.63 (as reported), ₹12.75 (adjusted)

- Total Assets: ₹47,882.41

- Total Liabilities: ₹9,127.51 (audited), ₹9,249.34 (adjusted)

- Net Worth: ₹38,754.90 (audited), ₹38,633.07 (adjusted)

The audit report carries a qualified opinion for the fifth consecutive year due to several issues:

1. Non-provision of interest on overdue payments to creditors, including MSMEs, with contingent liability disclosed but the exact amount unascertainable.

2. Non-provision of deferred tax liability/asset owing to uncertainty of future profits.

3. Default on repayment of inter-corporate loans and non-recognition of interest expense; accumulated unpaid interest totals ₹4.95 Cr, causing understatement of losses by ₹0.99 Cr for FY 2024-25.

4. Understatement of losses by ₹22.83 lakh due to non-provision of statutory audit fees (total accumulated unpaid audit fees ₹1.39 Cr).

5. Non-disclosure of advances against export sales of ₹25.91 lakh (Sahibabad) and ₹17.21 lakh (Sonepat), attributed to old un-reconciled balances.

Management is confident of settling dues without interest payments and books audit fees on a cash basis. The adjustments have lowered reported net profit and EPS, reflecting the financial impact of these qualifications.

Retail investors should note the recurring audit issues and provisions withheld, which could affect future cash flows and profitability.