Avantel Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்
Mar 31, 2023
COMPANY OVERVIEW AND SIGNIFICANT ACCOUNTING POLICIES:
A. Company Overview
Avantel Limited is a company engaged in manufacturing of wireless front-end, Satellite Communication, Embedded systems, Signal Processing, Network management and Software development and rendering related customer support services, and having an in-house R&D facility at Vishakhapatnam, Andhra Pradesh. The Company is incorporated and domiciled in India and has its registered office at Plot No.47/P, APIIC Industrial Park, Gambheeram(V), Anandapuram (M), Vishakhapatnam Andhra Pradesh, India.The Company has been in Bombay Stock Exchange (BSE).
The Standalone Financial Statements are approved by the Board of Directors on 13th April, 2023.
B. Basis of Preparation of Financial Statements:
These Standalone financial statements are prepared in accordance with Indian Accounting Standards (Ind AS), the provisions of the Companies Act, 2013 (âthe Companies Actâ), as applicable and guidelines issued by the Securities and Exchange Board of India (âSEBIâ). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.
The accounting policies have been applied consistently to all periods presented in these financial statements.
C. Basis of Measurement
These Standalone financial statements have been prepared on a historical cost convention and on an accrual basis, except for certain assets and liabilities which have been measured at fair value as per Ind AS.All assets and liabilities are classified into current and non-current generally based on the nature of product/activities of the company and the normal time between acquisition of assets/liabilities and their realization/settlement in cash or cash equivalent. The company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.
The Standalone financial statements are presented in Indian Rupees (INR) being the functional currency of the Company.
D. Use of Estimates
The preparation of Standalone financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions (including revisions, if any). These estimates, judgments and assumptions affect the application of accounting policies and reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenue and expenses during the period.
Appropriate changes in the estimates are made as management becomes aware of changes in circumstances. Changes in the estimates are reflected in the financial statements in the period in which changes are made.
E. Revenue of Recognition:
The Company earns revenue primarily from manufacturing of wireless front-end, Satellite Communication, Embedded systems, Signal Processing, Network management and Software development and rendering related customer support services.
Revenue is recognized by the company when the company satisfies a performance obligation by transferring a promised good or service to its customers.Asset/goods/services are considered to be transferred when the customer obtains control of those asset/goods/services.
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of the Company''s activities. Revenue is shown net of GST, returns, rebates and discounts.
Sale of products-(own manufactured). Revenue is recognised when the significant risks and rewards of ownership of the products have passed to the buyer, which is considered to be upon delivery under the contractual terms, and when the amount of revenue can be measured reliably.
Revenue from time and material and job contracts is recognised on output basis measured by units delivered, efforts expended, number of transactions processed, etc.
Revenue related to fixed price maintenance and support services contracts where the Group is standing ready to provide services is recognised based on time elapsed mode and revenue is straight lined over the period of performance.
Interest income is recognized using the effective interest rate method.
F. Property Plant and Equipment:
Property, Plant and Equipment are stated at cost net of GST, if any and subsequently at cost less depreciation and impairment losses if any.
Depreciation on all assets is provided on the âStraight Line Methodâ over the useful lives of the assets estimated by the Management. Depreciation for assets purchased/sold during the period is proportionately charged. Individual low-cost assets (acquired for Rs. 5,000/- or less) are depreciated at 100 % in the year of acquisition/ purchase.
The Management estimates the useful lives for fixed assets as follows:
(i) Buildings -- 20Years
(ii) Computers -- 3Years
(iii) Furniture & Fixtures -- 5Years
(iv) Plant & Machinery -- 4Years
(v) Vehicles -- 4Years
(vi) Leasehold improvements - amortised over the period of lease
G. Inventories
Inventories are valued at lower of cost or net realizable value.
Basis of determination of cost remain as follows:
(i) Raw Materials, Packing materials, Stores & Spares: - On FIFO basis.
(ii) Work-in-process:At cost of inputs plus overheads up to the stage of completion.
(iii) Finished goods are valued at lower of cost or net realizable value.
H. Impairment:
As at the end of each Balance Sheet date, the carrying amount of assets is assessed as to whether there is any indication of impairment. If the estimated recoverable amount is found less than its carrying amount, the impairment loss is recognized and assets are written down to their recoverable amount.
I. Foreign ExchangeTransactions/Translation
Transactions in foreign currencies are accounted at functional currency, at the exchange rate prevailing on the date of transactions. Gains/losses arising out of the fluctuations in the exchange rate between functional currency and foreign currency are recognized in the Statement of Profit &Loss in the period in which they arise.The fluctuations between foreign currency and functional currency relating to monetary items at the year ending are accounted as gains / losses in the Statement of Profit & Loss.
J. Research and Development
All expenses incurred for Research & Development are charged to revenue as incurred. Capital Expenditure incurred during the year on Research & Development is shown as additions to Fixed Assets.
K. Provisions, Contingent Assets/ Contingent Liabilities
Provisions are recognized when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
Show cause notices issued by Government Authorities where the probability of outflow of economic resources is remote are not considered as obligations. When the demands are raised against show-cause notices and are disputed by the company, these are treated as disputed obligations along with other contingent liabilities. Such contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.
Warranty Provisions: Provisions for Warranty related costs are recognized when the product is sold or service is provided. Provision is based on historical experience.The estimate of such warranty related costs is revised annually
L. Leases
The Company recognizes right of use assets under lease arrangements in which it is the lessee. Rights to use assets owned by third parties under lease agreements are capitalized at the inception of the lease and recognised on the consolidated balance sheet.The corresponding liability to the lessor is recognised as a lease obligation within short and long-term borrowings.The carrying amount is subsequently increased to reflect interest on the lease liability and reduced by lease payments made. For calculating the discounted lease liability on leases, the incremental borrowing rate is used.The incremental borrowing rate is calculated at the rate of interest at which the company would have been able to borrow for a similar term and with a similar security the funds necessary to obtain a similar asset in a similar market. Finance costs are charged to the income statement so as to produce a constant periodic rate of charge on the remaining balance of the obligations for each accounting period.
If modifications or reassessments occur, the lease liability and right of use asset are re-measured. Right of use assets are depreciated over the shorter of the useful life of the asset or the lease term.
M. IncomeTax:
Income tax expense represents the sum of current tax payable and deferred tax.
Current Tax: The tax currently payable is based on the current year taxable profit for the year.The current tax is calculated using the tax rates that have been enacted or substantively enacted at the end of the reporting period.
Deferred tax: Deferred tax is provided using the Balance Sheet method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that the taxable profits will be available against which those deductible temporary differences can be utilized. Deferred tax is calculated using the tax rates that have been enacted or substantively enacted at the end of the reporting period. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized.
N. Earnings per Share
The Company presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per share is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the year, adjusted for own shares held. Diluted earnings per share is determined by adjusting the profit or loss attribute to ordinary shareholders and the weighted average number of ordinary shares outstanding, adjusted for own shares held, for the effects of all dilutive potential ordinary shares.
O. Employee benefits:
Defined Contribution Plans: Payments made to a defined contribution plan such as provident Fund are charged as an expense in the Profit and Loss Account as they fall due.
Defined Benefit Plans: Company''s liability towards gratuity to past employees is determined using the projected unit credit method which considers each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation. Past services are recognized on a straight-line basis over the average period until the amended benefits become vested. Actuarial gain and losses are recognized immediately in the statement of profit and loss Account as income or expense. Obligation is measured at the present value of estimated future cash flows using a discounted rate that is determined by reference to market yields at the Balance Sheet date on Government Securities where the currency and terms of the Government Securities are consistent with the currency and estimate terms of the defined benefit obligations.
P. Financial Instruments:
Non-derivative financial instruments Non-derivative financial instruments consist of:
i) financial assets, which include cash and cash equivalents, trade receivables, other advances and eligible current and non
current assets;
ii) Financial liabilities, which include long and short-term loans and borrowings, trade payables, eligible current and noncurrent liabilities.
Non derivative financial instruments are recognized initially at fair value including any directly attributable transaction costs. Financial assets are derecognized when substantial risks and rewards of ownership of the financial asset have been transferred. In cases where substantial risks and rewards of ownership of the financial assets are neither transferred nor retained, financial assets are derecognized only when the Company has not retained control over the financial asset.
Subsequent to initial recognition, non-derivative financial instruments are measured as described below:
a) Cash and cash equivalents
For the purposes of the cash flow statement, cash and cash equivalents include cash in hand, at banks and demand deposits with banks, net of outstanding bank overdrafts, if any, that are repayable on demand and are considered part of the Company''s cash management system.
b) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.They are presented as current assets, except for those maturing later than 12 months after the reporting date which are presented as non-current assets. Loans and receivables are initially recognized at fair value plus directly attributable transaction costs and subsequently measured at amortized cost, less any impairment losses. Loans and receivables comprise trade receivables and other assets.
The company estimates the un-collectability of accounts receivable by analyzing historical payment patterns, customer concentrations, customer credit-worthiness and current economic trends. If the financial condition of a customer deteriorates, additional allowances may be required.
c) Trade and payable
Liabilities are recognized for amounts to be paid in future for goods or services received, whether billed by the supplier or not.
Q. Cash Flow Statement:
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non -cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows.The cash flows from operating, investing and financing activities of the Company are segregated.
R. Segment Information:
The company is considered to be a single segment company engaged in the manufacture of telecom products and providing related customer support services. Consequently, the company has in its primary segment only one reportable business segment.
S. Events after the reporting period :
Adjusting events are events that provide further evidence of condition that existed at the end of the reporting period. The financial statements are adjusted for such events before authorization for issue.
T. Prior Period Errors
Errors of material amount relating to prior period(s) are disclosed by a note with nature of prior period errors, amount of correction of each such prior period presented retrospectively, to the extent practicable along with change in basic and diluted earnings per share. However, where retrospective restatement is not practicable for a particular period then the circumstances that lead to the existence of that condition and the description of how and from where the error is corrected are disclosed in Notes to Accounts.
Mar 31, 2019
A. Company Overview:
Avantel Limited is a company engaged in manufacturing of wireless front-end, Satellite Communication, Embedded systems, Signal Processing, Network management and Software development and rendering related customer support services, and having R&D facility at Vishakhapatnam, Andhra Pradesh. The Company is incorporated and domiciled in India and has its registered office at l4l,Plot No.47/P APIIC Industrial Park, Gambheeram(V), Anandapuram (M), Vishakhapatnam Andhra Pradesh, India. The Company has been in Bombay Stock Exchange (BSE).
The Financial Statements are approved by the Board of Directors on 25th May, 2018.
B. Basis of Preparation of Financial Statements:
These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS), the provisions of the Companies Act, 2013 (âthe Companies Actâ), as applicable and guidelines issued by the Securities and Exchange Board of India (âSEBIâ). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 20l6.
For the year ended March 3l, 20l7 and in the years prior to 20l7, the Company prepared its financial statements in accordance with the requirements of the Indian GAAP (âPrevious GAAPâ), which included Standards notified under the Companies (Accounting Standards) Rules, 2006. The date of transition to Ind AS is April l, 20l6.
The accounting policies have been applied consistently to all periods presented in these financial statements.
C. Basis of Measurement:
These financial statements have been prepared on a historical cost convention and on an accrual basis, except for certain assets and liabilities which have been measured at fair value as per Ind AS.
The financial statements are presented in Indian Rupees (INR) being the functional currency of the Company.
D. Use of Estimates:
The preparation of financial statements in conformity with Ind AS requires management to make estimates, judgments'' and assumptions (including revisions, if any). These estimates, judgments and assumptions affect the application of accounting policies and reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenue and expenses during the period.
Appropriate changes in the estimates are made as management becomes aware of changes in circumstances. Changes in the estimates are reflected in the financial statements in the period in which changes are made.
E. Revenue of Recognition:
The Company earns revenue primarily from manufacturing of wireless front-end, Satellite Communication, Embedded systems, Signal Processing, Network management and Software development and rendering related customer support services.
Effective April l, 2018, the Company has applied Ind AS l 15 which establishes a comprehensive framework for determining whether, how much and when revenue is to be recognised. Ind AS l15 replaces Ind AS 18 Revenue and Ind AS ll Construction Contracts. The Company has adopted Ind AS l15 using the cumulative effect method. The effect of initially applying this standard is recognised at the date of initial application (i.e .April l, 2018).
The standard is applied retrospectively only to contracts that are not completed as at the date of initial application and the comparative information in the statement of profit and loss is not restated - i.e. the comparative information continues to be reported under Ind AS 18 and Ind AS ll. Refer note l E on- Significant accounting policies - Revenue recognition in the Annual report of the Company for the year ended March 3l, 2018, for revenue recognition policy as per Ind AS 18 and Ind AS ll.The impact of adoption of the standard on the financial statements of the Company is insignificant.
Revenue is recognized by the company when the company satisfies a performance obligation by transferring a promised good or service to its customers. Asset/goods/services are considered to be transferred when the customer obtains control of those asset/goods/services.
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of the Company''s activities. Revenue is shown net of GST, returns, rebates and discounts.
Sale of products-(own manufactured). Revenue is recognised when the significant risks and rewards of ownership of the products have passed to the buyer, which is considered to be upon delivery under the contractual terms, and when the amount of revenue can be measured reliably.
Revenue from time and material and job contracts is recognised on output basis measured by units delivered, efforts expended, number of transactions processed, etc.
Revenue related to fixed price maintenance and support services contracts where the Group is standing ready to provide services is recognised based on time elapsed mode and revenue is straight lined over the period of performance.
Interest income is recognized using the effective interest rate method.
F. Property Plant and Equipment:
Property, Plant and Equipment are stated at cost net of GST, if any and subsequently at cost less depreciation and impairment losses if any.
Depreciation on all assets is provided on the âStraight Line Methodâ over the useful lives of the assets estimated by the Management. Depreciation for assets purchased/sold during the period is proportionately charged. Individual low cost assets (acquired for Rs. 5,000/- or less) are depreciated at l00 % in the year of acquisition/ purchase.
G. Inventories:
Inventories are valued at lower of cost or net realizable value.
Basis of determination of cost remain as follows:
(i) Raw Materials, Packing materials, Stores & Spares: - On FIFO basis.
(ii) Work-in-process: At cost of inputs plus overheads up to the stage of completion.
(iii) Finished goods are valued at lower of cost or net realizable value.
H. Impairment:
As at the end of each Balance Sheet date, the carrying amount of assets is assessed as to whether there is any indication of impairment. If the estimated recoverable amount is found less than its carrying amount, the impairment loss is recognized and assets are written down to their recoverable amount.
I. Foreign Exchange Transactions/Translation
Transactions in foreign currencies are accounted at functional currency, at the exchange rate prevailing on the date of transactions. Gains/losses arising out of the fluctuations in the exchange rate between functional currency and foreign currency are recognized in the Statement of Profit &Loss in the period in which they arise. The fluctuations between foreign currency and functional currency relating to monetary items at the year ending are accounted as gains / losses in the Statement of Profit & Loss.
J. Research and Development:
All expenses incurred for Research & Development are charged to revenue as incurred. Capital Expenditure incurred during the year on Research & Development is shown as additions to Fixed Assets.
K. Provisions, Contingent Assets/ Contingent Liabilities
Provisions are recognized when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
Show cause notices issued by Government Authorities where the probability of outflow of economic resources is remote are not considered as obligations. When the demands are raised against show-cause notices and are disputed by the company, these are treated as disputed obligations along with other contingent liabilities. Such contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.
Warranty Provisions: Provisions for Warranty related costs are recognized when the product is sold or service is provided. Provision is based on historical experience. The estimate of such warranty related costs is revised annually
L. Leases
Where the company is a lessee Operating lease payments are recognized as expense on a straight line basis over the lease term.
M. Income Tax:
Income tax expense represents the sum of current tax payable and deferred tax. Current Tax: The tax currently payable is based on the current year taxable profit for the year. The current tax is calculated using the tax rates that have been enacted or substantively enacted at the end of the reporting period.
Deferred tax: Deferred tax is provided using the Balance Sheet method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax assets are generally recognized for all deductable temporary differences to the extent that it is probable that the taxable profits will be available against which those deductable temporary differences can be utilized. Deferred tax is calculated using the tax rates that have been enacted or substantively enacted at the end of the reporting period. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized.
N. Earnings per Share:
The Company presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per share is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the year, adjusted for own shares held. Diluted earnings per share is determined by adjusting the profit or loss attribute to ordinary shareholders and the weighted average number of ordinary shares outstanding, adjusted for own shares held, for the effects of all dilutive potential ordinary shares.
O. Employee benefits:
Defined Contribution Plans: Payments made to a defined contribution plan such as provident Fund are charged as an expense in the Profit and Loss Account as they fall due.
Defined Benefit Plans: Company''s liability towards gratuity to past employees is determined using the projected unit credit method which considers each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation. Past services are recognized on a straight-line basis over the average period until the amended benefits become vested. Actuarial gain and losses are recognized immediately in the statement of profit and loss Account as income or expense. Obligation is measured at the present value of estimated future cash flows using a discounted rate that is determined by reference to market yields at the Balance Sheet date on Government Securities where the currency and terms of the Government Securities are consistent with the currency and estimate terms of the defined benefit obligations.
P. Financial Instruments:
Non-derivative financial instruments Non-derivative financial instruments consist of:
i) financial assets, which include cash and cash equivalents, trade receivables, other advances and eligible current and non-current assets;
ii) Financial liabilities, which include long and short-term loans and borrowings, , trade payables, eligible current and non-current liabilities.
Non derivative financial instruments are recognized initially at fair value including any directly attributable transaction costs. Financial assets are derecognized when substantial risks and rewards of ownership of the financial asset have been transferred. In cases where substantial risks and rewards of ownership of the financial assets are neither transferred nor retained, financial assets are derecognized only when the Company has not retained control over the financial asset.
Subsequent to initial recognition, non-derivative financial instruments are measured as described below:
a) Cash and cash equivalents
For the purposes of the cash flow statement, cash and cash equivalents include cash in hand, at banks and demand deposits with banks, net of outstanding bank overdrafts, if any, that are repayable on demand and are considered part of the Company''s cash management system.
b) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are presented as current assets, except for those maturing later than 12 months after the reporting date which are presented as non-current assets. Loans and receivables are initially recognized at fair value plus directly attributable transaction costs and subsequently measured at amortized cost, less any impairment losses. Loans and receivables comprise trade receivables and other assets.
The company estimates the un-collectability of accounts receivable by analyzing historical payment patterns, customer concentrations, customer credit-worthiness and current economic trends. If the financial condition of a customer deteriorates, additional allowances may be required.
c) Trade and payable
Liabilities are recognized for amounts to be paid in future for goods or services received, whether billed by the supplier or not.
Q. Cash Flow Statement:
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non -cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.
R. Segment Information:
The company is considered to be a single segment company engaged in the manufacture of telecom products and providing related customer support services. Consequently, the company has in its primary segment only one reportable business segment.
S. Events after the reporting period :
Adjusting events are events that provide further evidence of condition that existed at the end of the reporting period. The financial statements are adjusted for such events before authorization for issue.
T. Prior Period Errors
Errors of material amount relating to prior period(s) are disclosed by a note with nature of prior period errors, amount of correction of each such prior period presented retrospectively, to the extent practicable along with change in basic and diluted earnings per share. However, where retrospective restatement is not practicable for a particular period then the circumstances that lead to the existence of that condition and the description of how and from where the error is corrected are disclosed in Notes to Accounts.
U. Recent Accounting Pronouncements
- Ind AS 116 Leases : Ministry of Corporate affairs notified this amendment on 30th March 20l9, Measurement will be effective from the year beginning on or after l st April 2019. Ind AS l 16 would replace the existing leases standard Ind AS l7. The standard sets out the principles for the recognition, measurement, presentation and disclosures for both parties to a contract, i.e. the lessee and the lessor. Ind AS ll6 introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. Currently, operating lease expenses are charged to the statement of profit and loss. The Company is currently evaluating the effect of this standard on the financial statements.
- Amendment to Ind AS 12 âIncome Taxesâ: Ministry of Corporate affairs notified this amendment on 30th March 20l9 relating to income tax consequences on dividend and distribution tax. The amendments require an entity to recognise the income tax consequences of dividends as defined in Ind AS l09 when it recognises a liability to pay a dividend. The income tax consequences of dividends are linked more directly to past transactions or events that generated distributable profits than to distributions to owners. Therefore, an entity shall recognize the income tax consequences of dividends in profit or loss, other comprehensive income or equity according to where the entity originally recognised those past transactions or events. The amendment is effective for annual periods beginning on or after April l, 20l9. The Company is currently evaluating the effect of this standard on the financial statements.
- Appendix C to Ind AS 12, Uncertainty over Income Tax Treatments: On March 30, 2019, Ministry of Corporate Affairs has notified this ammendment containing Appendix C to Ind AS 12, Uncertainty over Income Tax Treatments which clarifies the application and measurement requirements in Ind AS 12 when there is uncertainty over income tax treatments. The current and deferred tax asset or liability shall be recognized and measured by applying the requirements in Ind AS 12 based on the taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates determined by applying this appendix. The amendment is effective for annual periods beginning on or after April l, 20l9. The Company is currently evaluating the effect of this standard on the financial statements.
- Amendment to Ind AS 19 âEmployee Benefitsâ: On March 30, 20l9, the Ministry of Corporate Affairs has notified limited amendments to Ind AS l9 âEmployee Benefits'' in connection with accounting for plan amendments, curtailments and settlements. The amendments require an entity to use updated assumptions to determine current service cost and net interest for the remainder of the period after a plan amendment, curtailment or settlement and to recognise in profit or loss as part of past service cost, or a gain or loss on settlement, any reduction in a surplus, even if that surplus was not previously recognised because of the impact of the asset ceiling. The amendment will come into force for accounting periods beginning on or after April l, 20l9. The Company is currently evaluating the effect of this standard on the financial statements.
Mar 31, 2018
A. Company Overview:
Avantel Limited is a company engaged in manufacturing of wireless front-end, Satellite Communication, Embedded systems, Signal Processing, Network management and Software development and rendering related customer support services, and having an in-house R&D facility at Vishakhapatnam, Andhra Pradesh. The Company is incorporated and domiciled in India and has its registered office at 141, Plot No.47/P APIIC Industrial Park, Gambheeram(V), Anandapuram (M), Vishakhapatnam Andhra Pradesh, India. The Company has been in Bombay Stock Exchange (BSE).
The Financial Statements are approved by the Board of Directors on 28th May 2018.
B. Basis of Preparation of Financial Statements:
These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS), the provisions of the Companies Act, 2013 (âthe Companies Actâ), as applicable and guidelines issued by the Securities and Exchange Board of India (âSEBIâ). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.
For the year ended March 31, 2017 and in the years prior to 2017, the Company prepared its financial statements in accordance with the requirements of the Indian GAAP (âPrevious GAAPâ), which included Standards notified under the Companies (Accounting Standards) Rules, 2006. The date of transition to Ind AS is April 1, 2016.
The accounting policies have been applied consistently to all periods presented in these financial statements.
C. Basis of Measurement:
These financial statements have been prepared on a historical cost convention and on an accrual basis, except for certain assets and liabilities which have been measured at fair value as per Ind AS.
The financial statements are presented in Indian Rupees (INR) being the functional currency of the Company.
D. Use of Estimates:
The preparation of financial statements in conformity with Ind AS requires management to make estimates, judgmentsâ and assumptions (including revisions, if any). These estimates, judgments and assumptions affect the application of accounting policies and reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenue and expenses during the period.
Appropriate changes in the estimates are made as management becomes aware of changes in circumstances. Changes in the estimates are reflected in the financial statements in the period in which changes are made.
E. Revenue of Recognition:
Revenue is net of GST wherever applicable, recognized on accrual basis, to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.
Sale of Goods: Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyer on delivery of the goods.
Income from Services: Revenues from maintenance contracts are recognized pro-rata over the period of the contract as and when services are rendered.
Interest income is recognized using the effective interest rate method.
F. Property Plant and Equipment:
Property, Plant and Equipment are stated at cost net of GST if any and subsequently at cost less depreciation and impairment losses if any.
Depreciation on all assets is provided on the âStraight Line Methodâ over the useful lives of the assets estimated by the Management. Depreciation for assets purchased/sold during the period is proportionately charged. Individual low cost assets (acquired for Rs. 5,000/- or less) are depreciated at 100 % in the year of acquisition/ purchase.
The Management estimates the useful lives for fixed assets as follows:
(i) Buildings -- 20 Years
(ii) Computers -- 3 Years
(iii) Furniture & Fixtures -- 5 Years
(iv) Plant & Machinery -- 4 Years
(v) Vehicles -- 4 Years
(vi) Leasehold improvements -- amortized over the period of lease
G. Inventories:
Inventories are valued at lower of cost or net realizable value.
Basis of determination of cost remain as follows:
(i) Raw Materials, Packing materials, Stores & Spares: - On FIFO basis.
(ii) Work-in-process: At cost of inputs plus overheads up to the stage of completion.
(iii) Finished goods are valued at lower of cost or net realizable value.
H. Impairment:
As at the end of each Balance Sheet date, the carrying amount of assets is assessed as to whether there is any indication of impairment. If the estimated recoverable amount is found less than its carrying amount, the impairment loss is recognized and assets are written down to their recoverable amount.
I. Foreign Exchange Transactions/Translation:
Transactions in foreign currencies are accounted at functional currency, at the exchange rate prevailing on the date of transactions. Gains/losses arising out of the fluctuations in the exchange rate between functional currency and foreign currency are recognized in the Statement of Profit &Loss in the period in which they arise. The fluctuations between foreign currency and functional currency relating to monetary items at the year ending are accounted as gains / losses in the Statement of Profit & Loss.
J. Research and Development:
All expenses incurred for Research & Development are charged to revenue as incurred. Capital Expenditure incurred during the year on Research & Development is shown as additions to Fixed Assets.
K. Provisions, Contingent Assets/ Contingent Liabilities:
Provisions are recognized when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
Show cause notices issued by Government Authorities where the probability of outflow of economic resources is remote are not considered as obligations. When the demands are raised against show-cause notices and are disputed by the company, these are treated as disputed obligations along with other contingent liabilities. Such contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.
Warranty Provisions: Provisions for Warranty related costs are recognized when the product is sold or service is provided. Provision is based on historical experience. The estimate of such warranty related costs is revised annually
L. Leases
Where the company is a lessee Operating lease payments are recognized as expense on a straight line basis over the lease term.
M. Income Tax:
Income tax expense represents the sum of current tax payable and deferred tax. Current Tax: The tax currently payable is based on the current year taxable profit for the year. The current tax is calculated using the tax rates that have been enacted or substantively enacted at the end of the reporting period.
Deferred tax: Deferred tax is provided using the Balance Sheet method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that the taxable profits will be available against which those deductible temporary differences can be utilized. Deferred tax is calculated using the tax rates that have been enacted or substantively enacted at the end of the reporting period. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized.
N. Earnings per Share:
The Company presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per share is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the year, adjusted for own shares held. Diluted earnings per share is determined by adjusting the profit or loss attribute to ordinary shareholders and the weighted average number of ordinary shares outstanding, adjusted for own shares held, for the effects of all dilutive potential ordinary shares.
O. Employee benefits:
Defined Contribution Plans: Payments made to a defined contribution plan such as provident Fund are charged as an expense in the Profit and Loss Account as they fall due.
Defined Benefit Plans: Companyâs liability towards gratuity to past employees is determined using the projected unit credit method which considers each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation. Past services are recognized on a straight-line basis over the average period until the amended benefits become vested. Actuarial gain and losses are recognized immediately in the statement of profit and loss Account as income or expense. Obligation is measured at the present value of estimated future cash flows using a discounted rate that is determined by reference to market yields at the Balance Sheet date on Government Securities where the currency and terms of the Government Securities are consistent with the currency and estimate terms of the defined benefit obligations.
P Financial Instruments:
Non-derivative financial instruments Non-derivative financial instruments consist of:
i) financial assets, which include cash and cash equivalents, trade receivables, other advances and eligible current and non-current assets;
ii) Financial liabilities, which include long and short-term loans and borrowings, , trade payables, eligible current and non-current liabilities.
Non derivative financial instruments are recognized initially at fair value including any directly attributable transaction costs. Financial assets are derecognized when substantial risks and rewards of ownership of the financial asset have been transferred. In cases where substantial risks and rewards of ownership of the financial assets are neither transferred nor retained, financial assets are derecognized only when the Company has not retained control over the financial asset.
Subsequent to initial recognition, non-derivative financial instruments are measured as described below:
a) Cash and cash equivalents
For the purposes of the cash flow statement, cash and cash equivalents include cash in hand, at banks and demand deposits with banks, net of outstanding bank overdrafts, if any, that are repayable on demand and are considered part of the Companyâs cash management system.
b) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are presented as current assets, except for those maturing later than 12 months after the reporting date which are presented as non-current assets. Loans and receivables are initially recognized at fair value plus directly attributable transaction costs and subsequently measured at amortized cost, less any impairment losses. Loans and receivables comprise trade receivables and other assets.
The company estimates the un-collectability of accounts receivable by analyzing historical payment patterns, customer concentrations, customer credit-worthiness and current economic trends. If the financial condition of a customer deteriorates, additional allowances may be required.
c) Trade and payable
Liabilities are recognized for amounts to be paid in future for goods or services received, whether billed by the supplier or not.
Q. Cash Flow Statement:
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non -cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.
R. Segment Information:
The company is considered to be a single segment company engaged in the manufacture of telecom products and providing related customer support services. Consequently, the company has in its primary segment only one reportable business segment.
S. Events after the reporting period :
Adjusting events are events that provide further evidence of condition that existed at the end of the reporting period. The financial statements are adjusted for such events before authorization for issue.
T. Prior Period Errors
Errors of material amount relating to prior period(s) are disclosed by a note with nature of prior period errors, amount of correction of each such prior period presented retrospectively, to the extent practicable along with change in basic and diluted earnings per share. However, where retrospective restatement is not practicable for a particular period then the circumstances that lead to the existence of that condition and the description of how and from where the error is corrected are disclosed in Notes to Accounts.
Mar 31, 2014
A) Basis of Accounting:
The Financial Statements of the Company have been prepared in
accordance with the Generally Accepted Ac- counting Principles in India
(Indian GAAP). The Company has prepared these fi nancial statements to
comply in all material respects with the Accounting Standards notifi ed
under the Companies (Accounting Standards) Rules, 2006 and the relevant
Provisions of the Companies Act, 1956. The fi nancial statements have
been prepared on an accrual basis and under historical conversion.
b) Use of Estimates:
The preparation of Financial Statements is in conformity with Indian
GAAP requires the management to make judg- ments, estimates and
assumptions that affect the reported amounts of revenues, expenses,
assets and liabilities and the disclosure of contingent liabilities at
the end of the reporting period. Although these estimates are based on
the management''s best knowledge of current events and actions,
uncertainty about these assumptions and estimates could result in the
outcomes requiring a material adjustment to the carrying amounts of
assets or liabilities in future periods.
c) Fixed Assets:
Fixed Assets are stated at cost, less accumulated depreciation and
impairment if any. Direct costs are capitalized until fixed assets are
ready for use.
d) Depreciation:
Depreciation on all assets is provided on the "Straight Line Method"
over the useful lives of the assets estimated by the Management.
Depreciation for assets purchased/sold during the period is
proportionately charged. Individual low cost assets (acquired for Rs.
5,000/- or less) are depreciated at 100 % in the year of acquisition/
purchase. The Management estimates the useful lives for fixed assets
as follows:
(i) Buildings - 20 Years
(ii) Computers - 3 Years
(iii) Furniture & Fixtures - 5 Years
(iv) Plant & Machinery - 4 Years
(v) Vehicles - 4 Years
e) Inventories:
Inventories are valued at lower of cost or net realizable value. Basis
of determination of cost remain as follows:
(i) Raw Materials, Packing materials, Stores & Spares: - On FIFO basis.
(ii) Work-in-process: At cost of inputs plus overheads up to the stage
of completion.
(iii) Finished goods are valued at lower of cost or net realizable
value.
f) Revenue recognition:
Revenue is recognized to the extent that is possible that the economic
benefits will fl ow to the Company and the revenue can be reliably
measured. The following specifi c recognition criteria must also be met
before revenue is recognized:
(i) Sale of Goods:
Revenue from sale of goods is recognized when all the signifi cant
risks and rewards of ownership of the goods have been passed to the
buyer on delivery of the goods. The Company collects sales tax and
value added tax (VAT) on behalf of the Government and therefore, these
are not economic benefits fl owing to the Company. Hence, they are
excluded from revenue. Excise duty deducted from revenue (gross) is the
amount that is included in the revenue (gross) and not the entire
amount of liability arising during the year.
(ii) Income from Services:
Revenues from maintenance contracts are recognized pro-rata over the
period of the contract as and when services are rendered.
(iii) Interest:
Revenue is recognized on a time proportion basis taking into account
the amount outstanding and the rate applicable.
g) Foreign Currency transactions:
Initial recognition:
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount, the exchange rate between
the reporting currency and the foreign currency at the date of the
transaction.
Conversion:
Foreign currency monetary items are reported at the rate prevailing on
the balance sheet date.
Exchange Differences:
Exchange differences arising on the settlement of monetary items or on
reporting Company''s monetary items at rates different from those at
which they were initially recorded during the period, or reported in
previous fi nancial statements, are recognized as income or as expense
in the period in which they arise.
h) Research & Development:
All expenses incurred for Research & Development are charged to revenue
as incurred. Capital Expenditure in- curred during the year on Research
& Development is shown as additions to Fixed Assets.
i) Retirement Benefits:
Short Term Employee Benefits:
All employee benefits payable wholly within twelve months of rendering
the service are classifi ed as short- term employee benefits. Benefi
ts such as salaries, performance incentives, etc., are recognized as an
expense at the undiscounted amount in the Profit and Loss Account of
the year in which the employee renders the related service.
Post Employment benefits:
(i) Defi ned Contribution Plans:
Payments made to a defi ned contribution plan such as provident Fund
are charged as an expense in the Profit and Loss Account as they fall
due.
(ii) Defi ned Benefit Plans:
Company''s liability towards gratuity to past employees is determined
using the projected unit credit method which considers each period of
service as giving rise to an additional unit of benefit entitlement
and measures each unit separately to build up the fi nal obligation.
Past services are recognized on a straight-line basis over the average
period until the amended benefits become vested. Actuarial gain and
losses are recognized imme- diately in the statement of Profit and
loss Account as income or expense. Obligation is measured at the pre-
sent value of estimated future cash fl ows using a discounted rate that
is determined by reference to market yields at the Balance Sheet date
on Government Securities where the currency and terms of the Government
Securities are consistent with the currency and estimate terms of the
defi ned benefit obligations.
j) Impairment of Assets:
The Management assesses using external and internal sources whether
there is any indication that an asset may be impaired. Impairment of an
asset occurs where the carrying value exceeds the present value of cash
fl ow expected to arise from the continuing use of the asset and its
eventual disposal. The provision for impartment loss is made when
recoverable amount of the asset is lower than the carrying amount.
k) Taxes on Income:
Tax on Income for the Current period is determined on the basis of
taxable income and tax credits computed in accordance with the
Provisions of the Income Tax Act, 1961 and based on expected outcome of
assessments/ap- peals.
Deferred tax is recognized on timing differences between the accounting
income and taxable income for the year and quantifi ed using the tax
rates and laws enacted or substantially enacted as on the Balance Sheet
date.
Deferred Tax assets are recognized and carried forward to the extent
that there is reasonable certainty that suf- fi cient future taxable
income will be available against which such deferred tax assets can be
realized.
l) Segment Accounting:
The company is considered to be a single segment company engaged in the
manufacture of telecom products and providing related customer support
services. Consequently, the company has in its primary segment only one
re- portable business segment as prescribed in Accounting Standard 17
(AS-17) "Segment Reporting" issued by ICAI.
m) Provisions :
A provision is recognized if, as a result of past event, the company
has a present legal obligation that can be esti- mated reliably, and it
is possible that an outfl ow of economic benefits will be required to
settle the obligation. Provi- sions are determined by the best estimate
of the outfl ow of the economic benefits required to settle the
obligation at the reporting date.
Warranty Provisions:
Provisions for Warranty related costs are recognized when the product
is sold or service is provided. Provision is based on historical
experience. The estimate of such warranty related costs is revised
annually.
n) Contingent Liabilities & Contingent Assets:
Where no reliable estimate can be made, a disclosure is made as
contingent liability. A disclosure for a contingent liability is also
made when there is a possible obligation or a present obligation that
may, but probably will not, require outfl ow of resources. Where there
is a possible obligation or a present obligation in respect of which
the likelyhood of outfl ow of resources is remote, no provision or
disclosure is made. A contingent asset is neither recognized nor
disclosed in the fi nancial statements.
o) Cash and Cash equivalents:
Cash and Cash equivalents for the purpose of Cash fl ow statement
comprise of Cash in Hand, Cash at Bank and Shot Term Margin Money/
deposits with original maturity of less than one year.
p) Cash Flow Statement:
Cash fl ows are reported using the indirect method, whereby Profit
before tax is adjusted for the effects of transac- tions of a non cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with
investing or fi nancing cash fl ows. The cash fl ows from operating,
investing and fi nancing activities of the Company are segregated.
q) Earning per Share:
Basic earning per share is computed by dividing the net Profit after
tax by weighted average number of equity shares outstanding during the
period. Diluted earnings per share is computed by dividing the Profit
after tax by the weighted average number of equity shares considered
for deriving basic earnings per share and also the weighted average
number of equity shares that could have been issued upon conversion of
all dilutive potential equity shares. The diluted potential equity
shares are adjusted for the proceeds receivable had the shares been
actually issued at fair value which is the average market value of the
outstanding shares. Dilutive potential equity shares are deemed
converted as of the beginning of the period, unless issued at a later
date. Dilutive potential equity shares are deter- mined independently
for each period presented.
2.28 CURRENT TAX
Current Tax for the previous year represents the Minimum Alternative
Tax (MAT) payable by the company on the book Profits of for the year.
However, the company is not recognising the MAT credit entitlement
determined under section 115JAA(2A) of the Income Tax Act, 1961 during
the current year and earlier years as possiblility of paying the Income
Tax under the normal provisions of the Income Tax Act, 1961 in future
is uncertain because the company claims weighted deduction under
section 35(2AB) of the Income Tax Act, 1961.
Mar 31, 2013
A) Basis of Accounting:
The Financial Statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP). The Company has prepared these financial statements to
comply in all material respects with the Accounting Standards notified
under the Companies (Accounting Standards) Rules, 2006 and the relevant
Provisions of the Companies Act, 1956. The financial statements have
been prepared on an accrual basis and under historical conversion.
b) Use of Estimates:
The preparation of Financial Statements is in conformity with Indian
GAAP requires the management to make judgments, estimates and
assumptions that affect the reported amounts of revenues, expenses,
assets and liabilities and the disclosure of contingent liabilities at
the end of the reporting period. Although these estimates are based on
the management''s best knowledge of current events and actions,
uncertainty about these assumptions and estimates could result in the
outcomes requiring a material adjustment to the carrying amounts of
assets or liabilities in future periods.
c) Fixed Assets:
Fixed Assets are stated at cost, less accumulated depreciation and
impairment if any. Direct costs are capitalized until fixed assets are
ready for use. Capital Work in Progress comprises of cost of fixed
assets that are not yet ready for their intended use at the reporting
date.
d) Depreciation:
Depreciation on all assets is provided on the "Straight Line Method"
over the useful lives of the assets estimated by the Management.
Depreciation for assets purchased/sold during the period is
proportionately charged. Individual low cost assets (acquired for Rs.
5,000/- or less) are depreciated at 100 % in the year of acquisition/
purchase. The Management estimates the useful lives for fixed assets as
follows:
(i) Buildings -- 20 Years
(ii) Computers -- 3 Years
(iii) Furniture & Fixtures -- 5 Years
(iv) Plant & Machinery -- 4 Years
(v) Vehicles -- 4 Years
(vi) Capital Expenditure incurred on leasehold building will be
amortized over a period of the tenure of the lease.
e) Inventories:
Inventories are valued at lower of cost or net realizable value. Basis
of determination of cost remain as follows:
(i) Raw Materials, Packing materials, Stores & Spares: - On FIFO basis.
(ii) Work-in-process: At cost of inputs plus overheads up to the stage
of completion.
(iii) Finished goods are valued at lower of cost or net realizable
value.
f) Revenue recognition:
Revenue is recognized to the extent that is possible that the economic
benefits will flow to the Company and the revenue can be reliably
measured. The following specific recognition criteria must also be met
before revenue is recognized:
(i) Sale of Goods:
Revenue from sale of goods is recognized when all the significant risks
and rewards of ownership of the goods have been passed to the buyer on
delivery of the goods. The Company collects sales taxes and value added
taxes (VAT) on behalf of the Government and therefore, these are not
economic benefits flowing to the Company. Hence, they are excluded from
revenue. Excise duty deducted from revenue (gross) is the amount that
is included in the revenue (gross) and not the entire amount of
liability arising during the year.
(ii) Income from Services:
Revenues from maintenance contracts are recognized pro-rata over the
period of the contract as and when services are rendered.
(iii) Interest:
Revenue is recognized on a time proportion basis taking into account
the amount outstanding and the rate applicable.
g) Foreign Currency transactions:
(i) Initial recognition:
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount, the exchange rate between
the reporting currency and the foreign currency at the date of the
transaction.
(ii) Conversion:
Foreign currency monetary items are reported at the rate prevailing on
the balance sheet date.
(iii) Exchange Differences:
Exchange differences arising on the settlement of monetary items or on
reporting Company''s monetary items at rates different from those at
which they were initially recorded during the period, or reported in
previous financial statements, are recognized as income or as expense
in the period in which they arise.
h) Research & Development:
All expenses incurred for Research & Development are charged to revenue
as incurred. Capital Expenditure incurred during the year on Research &
Development is shown as additions to Fixed Assets.
i) Retirement Benefits:
Short Term Employee Benefits:
All employee benefits payable wholly within twelve months of rendering
the service are classified as short-term employee benefits. Benefits
such as salaries, performance incentives, etc., are recognized as an
expense at the undiscounted amount in the Profit and Loss Account of
the year in which the employee renders the related service.
Post Employment benefits:
(i) Defined Contribution Plans:
Payments made to a defined contribution plan such as provident Fund are
charged as an expense in the Profit and Loss Account as they fall due.
(ii) Defined Benefit Plans:
Company''s liability towards gratuity to past employees is determined
using the projected unit credit method which considers each period of
service as giving rise to an additional unit of benefit entitlement and
measures each unit separately to build up the final obligation. Past
services are recognized on a straight-line basis over the average
period until the amended benefits become vested. Actuarial gain and
losses are recognized immediately in the statement of profit and loss
Account as income or expense. Obligation is measured at the present
value of estimated future cash flows using a discounted rate that is
determined by reference to market yields at the Balance Sheet date on
Government Securities where the currency and terms of the Government
Securities are consistent with the currency and estimate terms of the
defined benefit obligations.
j) Impairment of Assets:
The Management assesses using external and internal sources whether
there is any indication that an asset may be impaired. Impairment of an
asset occurs where the carrying value exceeds the present value of cash
flow expected to arise from the continuing use of the asset and its
eventual disposal. The provision for impairment loss is made when
recoverable amount of the asset is lower than the carrying amount.
k) Taxes on Income:
Tax on Income for the Current period is determined on the basis of
taxable income and tax credits computed in accordance with the
Provisions of the Income Tax Act, 1961 and based on expected outcome of
assessments/ appeals.
Deferred tax is recognized on timing differences between the accounting
income and taxable income for the year and quantified using the tax
rates and laws enacted or substantially enacted as on the Balance Sheet
date.
Deferred Tax assets are recognized and carried forward to the extent
that there is reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be
realized.
l) Segment Accounting:
The company is considered to be a single segment company engaged in the
manufacture of telecom products and providing related customer support
services. Consequently, the company has in its primary segment only one
reportable business segment as prescribed in Accounting Standard 17
(AS-17) "Segment Reporting" issued by ICAI.
m) Provisions:
A provision is recognized if, as a result of past event, the company
has a present legal obligation that can be estimated reliably, and it
is possible that an outflow of economic benefits will be required to
settle the obligation. Provisions are determined by the best estimate
of the outflow of the economic benefits required to settle the
obligation at the reporting date.
Warranty Provisions:
Provisions for Warranty related costs are recognized when the product
is sold or service is provided. Provision is based on historical
experience. The estimate of such warranty related costs is revised
annually.
n) Contingent Liabilities & Contingent Assets:
Where no reliable estimate can be made, a disclosure is made as
contingent liability. A disclosure for a contingent liability is also
made when there is a possible obligation or a present obligation that
may, but probably will not, require outflow of resources. Where there
is a possible obligation or a present obligation in respect of which
the likelyhood of outflow of resources is remote, no provision or
disclosure is made. A contingent asset is neither recognized nor
disclosed in the financial statements.
o) Cash and Cash equivalents:
Cash and Cash equivalents for the purpose of Cash flow statement
comprise of Cash in Hand, Cash at Bank, Cheques in hand and Short Term
Margin Money/ Deposits with original maturity of less than one year.
p) Cash Flow Statement:
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of a non -cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with
investing or financing cash flows. The cash flows from operating,
investing and financing activities of the Company are segregated.
q) Earning per Share:
Basic earning per share is computed by dividing the net profit after
tax by weighted average number of equity shares outstanding during the
period. Diluted earnings per share is computed by dividing the profit
after tax by the weighted average number of equity shares considered
for deriving basic earnings per share and also the weighted average
number of equity shares that could have been issued upon conversion of
all dilutive potential equity shares. The diluted potential equity
shares are adjusted for the proceeds receivable had the shares been
actually issued at fair value which is the average market value of the
outstanding shares. Dilutive potential equity shares are deemed
converted as of the beginning of the period, unless issued at a later
date. Dilutive potential equity shares are determined independently for
each period presented.
Mar 31, 2012
A) Basis of Accounting:
The Financial Statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP). The Company has prepared these financial statements to
comply in all material respects with the Accounting Standards notified
under the Companies (Accounting Standards) Rules, 2006 and the relevant
Provisions of the Companies Act, 1956. The financial statements have
been prepared on an accrual basis and under historical conversion.
b) Use of Estimates:
The preparation of Financial Statements is in conformity with Indian
GAAP requires the management to make judgments, estimates and
assumptions that affect the reported amounts of revenues, expenses,
assets and liabilities and the disclosure of contingent liabilities at
the end of the reporting period. Although these estimates are based on
the management's best knowledge of current events and actions,
uncertainty about these assumptions and estimates could result in the
outcomes requiring a material adjustment to the carrying amounts of
assets or liabilities in future periods.
c) Fixed Assets:
Fixed Assets are stated at cost, less accumulated depreciation and
impairment if any. Direct costs are capitalized until fixed assets are
ready for use. Capital Work in Progress comprises of cost of fixed
assets that are not yet ready for their intended use at the reporting
date.
d) Depreciation:
Depreciation on all assets is provided on the "Straight Line Method"
over the useful lives of the assets estimated by the Management.
Depreciation for assets purchased/sold during the period is
proportionately charged. Individual low coast assets (acquired for
Rs5,000/- or less) are depreciated at 100 % in the year of acquisition/
purchase. The Management estimates the useful lives for fixed assets as
follows:
(i) Buildings à 20 Years
(ii) Computers à 3 Years
(iii) Furniture & Fixtures à 5 Years
(iv) Plant & Machinery à 4 Years
(v) Vehicles à 4 Years
(vi) Capital Expenditure incurred on leasehold building will be
amortized over a period of 5 years i.e., the tenure of the lease.
e) Inventories:
Inventories are valued at lower of cost or net realizable value. Basis
of determination of cost remain as follows:
(i) Raw Materials, Packing materials, Stores & Spares: - On FIFO basis.
(ii) Work-in-process: At cost of inputs plus overheads up to the stage
of completion.
(iii) Finished goods are valued at lower of cost or net realizable
value.
f) Revenue recognition:
Revenue is recognized to the extent that is possible that the economic
benefits will flow to the Company and the revenue can be reliably
measured. The following specific recognition criteria must also be met
before revenue is recognized:
(i) Sale of Goods:
Revenue from sale of goods is recognized when all the significant risks
and rewards of ownership of the goods have been passed to the buyer on
delivery of the goods. The Company collects sales taxes and value added
taxes (VAT) on behalf of the Government and therefore, these are not
economic benefits flowing to the Company. Hence, they are excluded from
revenue. Excise duty deducted from revenue (gross) is the amount that
is included in the revenue (gross) and not the entire amount of
liability arising during the year.
(ii) Income from Services:
Revenues from maintenance contracts are recognized pro-rata over the
period of the contract as and when services are rendered.
(iii) Interest:
Revenue is recognized on a time proportion basis taking into account
the amount outstanding and the rate applicable.
g) Foreign Currency transactions:
Initial recognition:
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount, the exchange rate between
the reporting currency and the foreign currency at the date of the
transaction.
Conversion:
Foreign currency monetary items are reported at the rate prevailing on
the balance sheet date.
Exchange Differences:
Exchange differences arising on the settlement of monetary items or on
reporting Company's monetary items at rates different from those at
which they were initially recorded during the period, or reported in
previous financial statements, are recognized as income or as expense
in the period in which they arise.
h) Research & Development:
All expenses incurred for Research & Development are charged to revenue
as incurred. Capital Expenditure incurred during the year on Research &
Development is shown as additions to Fixed Assets.
i) Retirement Benefits:
Short Term Employee Benefits:
All employee benefits payable wholly within twelve months of rendering
the service are classified as short-term employee benefits. Benefits
such as salaries, performance incentives, etc., are recognized as an
expense at the undiscounted amount in the Profit and Loss Account of
the year in which the employee renders the related service.
Post Employment benefits:
(i) Defined Contribution Plans:
Payments made to a defined contribution plan such as provident Fund are
charged as an expense in the Profit and Loss Account as they fall due.
(ii) Defined Benefit Plans:
Company's liability towards gratuity to past employees is determined
using the projected unit credit method which considers each period of
service as giving rise to an additional unit of benefit entitlement and
measures each unit separately to build up the final obligation. Past
services are recognized on a straight-line basis over the average
period until the amended benefits become vested. Actuarial gain and
losses are recognized immediately in the statement of profit and loss
Account as income or expense. Obligation is measured at the present
value of estimated future cash flows using a discounted rate that is
determined by reference to market yields at the Balance Sheet date on
Government Securities where the currency and terms of the Government
Securities are consistent with the currency and estimate terms of the
defined benefit obligations.
j) Impairment of Assets:
The Management assesses using external and internal sources whether
there is any indication that an asset may be impaired. Impairment of an
asset occurs where the carrying value exceeds the present value of cash
flow expected to arise from the continuing use of the asset and its
eventual disposal. The provision for impartment loss is made when
recoverable amount of the asset is lower than the carrying amount.
k) Taxes on Income:
Tax on Income for the Current period is determined on the basis of
taxable income and tax credits computed in accordance with the
Provisions of the Income Tax Act, 1961 and based on expected outcome of
assessments/appeals.
Deferred tax is recognized on timing differences between the accounting
income and taxable income for the year and quantified using the tax
rates and laws enacted or substantially enacted as on the Balance Sheet
date.
Deferred Tax assets are recognized and carried forward to the extent
that there is reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be
realized.
l) Segment Accounting:
The company is considered to be a single segment company engaged in the
manufacture of telecom products and providing related customer support
services. Consequently, the company has in its primary segment only one
reportable business segment as prescribed in Accounting Standard 17
(AS-17) "Segment Reporting" issued by ICAI.
m) Provisions :
A provision is recognized if, as a result of past event, the company
has a present legal obligation that can be estimated reliably, and it
is possible that an outflow of economic benefits will be required to
settle the obligation. Provisions are determined by the best estimate
of the outflow of the economic benefits required to settle the
obligation at the reporting date.
Warranty Provisions:
Provisions for Warranty related costs are recognized when the product
is sold or service is provided. Provision is based on historical
experience. The estimate of such warranty related costs is revised
annually.
n) Contingent Liabilities & Contingent Assets:
Where no reliable estimate can be made, a disclosure is made as
contingent liability. A disclosure for a contingent liability is also
made when there is a possible obligation or a present obligation that
may, but probably will not, require outflow of resources. Where there
is a possible obligation or a present obligation in respect of which
the likelyhood of outflow of resources is remote, no provision or
disclosure is made. A contingent asset is neither recognized nor
disclosed in the financial statements.
o) Cash and Cash equivalents :
Cash and Cash equivalents for the purpose of Cash flow statement
comprise of Cash in Hand, Cash at Bank, Cheques in hand and Shot Term
Margin Money/ deposits with original maturity of less than one year.
p) Cash Flow Statement:
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of a non -cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with
investing or financing cash flows. The cash flows from operating,
investing and financing activities of the Company are segregated.
q) Earning per Share:
Basic earning per share is computed by dividing the net profit after
tax by weighted average number of equity shares outstanding during the
period. Diluted earnings per share is computed by dividing the profit
after tax by the weighted average number of equity shares considered
for deriving basic earnings per share and also the weighted average
number of equity shares that could have been issued upon conversion of
all dilutive potential equity shares. The diluted potential equity
shares are adjusted for the proceeds receivable had the shares been
actually issued at fair value which is the average market value of the
outstanding shares. Dilutive potential equity shares are deemed
converted as of the beginning of the period, unless issued at a later
date. Dilutive potential equity shares are determined independently for
each period presented.
Mar 31, 2011
1. Basis of Accounting:
The Company maintains its accounts on accrual basis following the
historical cost convention in accordance with generally accepted
accounting principles (GAAP) and in compliance with the Accounting
Standards referred to in Section 211 (3C) and other requirements of the
Companies Act, 1956.
2. Fixed Assets:
a) Fixed Assets are stated at cost.
b) The Company capitalises all costs relating to acquisition and
installation of fixed assets.
3. Depreciation:
Depreciation on all assets is provided on the "Straight Line Method" in
accordance with the provisions of Section 205 of the Companies Act,
1956.
4. Inventories:
Inventories are valued at lower of cost or net realizable value. Basis
of determination of cost remain as follows:
- Raw Materials, Packing materials, Stores & Spares: - On FIFO basis.
- Work-in-process: At cost of inputs plus overheads up to the stage of
completion
5. Revenue Recognition:
Sales are inclusive of excise duty and exclusive of Sales Tax.
6. Foreign Currency transactions:
i) Export sales are initially accounted at the exchange rate prevailing
on the date of documentation/invoicing and the same is adjusted with
the difference in the rate of exchange arising on actual receipt of
proceeds in foreign exchange.
ii) Export receivables and payables in foreign currency are converted
at the rate of exchange ruling on the date of Balance Sheet.
7. Research & Development:
The Company follows Accounting Standard -26, "Accounting for
Intangibles" for Research & Development expenditure and accordingly,
all expenses incurred for Research & Development will be charged to
revenue. Capital Expenditure incurred during the year on Research &
Development was shown as addition to Fixed Assets.
8. Retirement Benefits:
Short Term Employee Benefits:
All employee benefits payable wholly within twelve months of rendering
the service are classified as short-term employee benefits. Benefits
such as salaries, performance incentives, etc., are recognized as an
expense at the undiscounted amount in the Profit and Loss Account of
the year in which the employee renders the related service.
Post Employment Benefits:
(i) Defined Contribution Plans:
Payments made to a defined contribution plan such as Provident Fund are
charged as an expense in the Profit and Loss Account as they fall due.
(ii) Defined Benefit Plans:
Company's liability towards gratuity to past employees is determined
using the projected unit credit method which considers each period of
service as giving rise to an additional unit of benefit entitlement and
measures each unit separately to build up the final obligation. Past
services are recognized on a straight-line basis ove the average period
until the amended benefits become vested. Actuarial gain and losses are
recognized immediately in the statement of profit and loss Account as
income or expense. Obligation is measured at the present value of
estimated future cash flows using a discounted rate that is determined
by reference to market yields at the Balance Sheet date on Government
Securities where the currency and terms of the Government Securities
are consistent with the currency and estimate terms of the defined
benefit obligations.
9. Impairment of Assets: The Management assesses using external and
internal sources whether there is any indication that an asset may be
impaired. Impairment of an asset occurs where the carrying value
exceeds the present value of cash flow expected to arise from the
continuing use of the asset and its eventual disposal. The provision
for impartment loss is made when recoverable amount of the asset is
lower than the carrying amount.
10. Taxes on Income:
Tax on Income for the Current period is determined on the basis of
taxable income and tax credits computed in accordance with the
Provisions of the Income Tax Act, 1961 and based on expected outcome of
assessments/ appeals.
Deferred tax is recognized on timing differences between the accounting
income and taxable income for the year and quantified using the tax
rates and laws enacted or substantially enacted as on the Balance Sheet
date.
Deferred Tax assets are recognized and carried forward to the extent
that there is reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be
realized.
11. Segment Accounting:
The company is considered to be a single segment company engaged in the
manufacture of telecom products and providing related customer support
services. Consequently, the company has in its primary segment only one
reportable business segment as prescribed in Accounting Standard 17
(AS-17) "Segment Reporting" issued by ICAI.
12. All Contingent liabilities are indicated by way of note and will
be paid/provided on crystalisation.
Mar 31, 2010
1. Basis of Accounting:
The Company maintains its accounts on accrual basis following the
historical cost convention in accordance with generally accepted
accounting principles (GAAP) and in compliance with the Accounting
Standards referred to in Section 211 (3C) and other requirements of the
Companies Act, 1956.
2. Fixed Assets:
a) Fixed Assets are stated at cost.
b) The Company capitalises all costs relating to acquisition and
installation of fixed assets.
3. Depreciation:
Depreciation on all assets is provided on the "Straight Line Method" in
accordance with the provisions of Section 205 of the Companies Act,
1956.
4. Inventories:
Inventories are valued at lower of cost or net realizable value. Basis
of determination of cost remain as follows:
- Raw Materials, Packing materials, Stores & Spares: - On FIFO basis.
- Work-in-process: At cost of inputs plus overheads up to the stage of
completion
5. Revenue Recognition:
Sales are inclusive of excise duty and exclusive of Sales Tax.
6. Foreign Currency transactions:
i) Export sales are initially accounted at the exchange rate prevailing
on the date of documentation/invoicing and the same is adjusted with
the difference in the rate of exchange arising on actual receipt of
proceeds in foreign exchange.
ii) Export receivables and payables in foreign currency are converted
at the rate of exchange ruling on the date of Balance Sheet.
7. Research & Development:
The Company follows Accounting Standard -26, "Accounting for
Intangibles" for Research & Development expenditure and accordingly,
all expenses incurred for Research & Development will be charged to
revenue. Capital Expenditure incurred during the year on Research &
Development was shown as addition to Fixed Assets.
8. Retirement Benefits:
Short Term Employee Benefits:
All employee benefits payable wholly within twelve months of rendering
the service are classified as short-term employee benefits. Benefits
such as salaries, performance incentives, etc., are recognized as an
expense at the undiscounted amount in the Profit and Loss Account of
the year in which the employee renders the related service.
Post Employment benefits:
(i) Defined Contribution Plans:
Payments made to a defined contribution plan such as Provident Fund are
charged as an expense in the Profit and Loss Account as they fall due.
(ii) Defined Benefit Plans:
Companys liability towards gratuity to past employees is determined
using the projected unit credit method which considers each period of
service as giving rise to an additional unit of benefit entitlement and
measures each unit separately to build up the final obligation. Past
services are recognized on a straight-line basis over the average
period until the amended benefits become vested. Actuarial gain and
losses are recognized immediately in the statement of profit and loss
Account as income or expense. Obligation is measured at the present
value of estimated future cash flows using a discounted rate that is
determined by reference to market yields at the Balance Sheet date on
Government Securities where the currency and terms of the Government
Securities are consistent with the currency and estimate terms of the
defined benefit obligations.
9. Taxes on Income:
Tax on Income for the Current period is determined on the basis of
taxable income and tax credits computed in accordance with the
Provisions of the Income Tax Act, 1961 and based on expected outcome of
assessments/ appeals.
Deferred tax is recognized on timing differences between the accounting
income and taxable income for the year and quantified using the tax
rates and laws enacted or substantially enacted as on the Balance Sheet
date.
Deferred Tax assets are recognized and carried forward to the extent
that there is reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be
realized.
10. Segment Accounting:
The company is considered to be a single segment company engaged in the
manufacture of telecom products and providing related customer support
services. Consequently, the company has in its primary segment only one
reportable business segment as prescribed in Accounting Standard 17
(AS-17) "Segment Reporting" issued by ICAI.
11. All Contingent liabilities are indicated by way of note and will
be paid/provided on crystalisation.
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Avantel Ltd. குறித்த கூடுதல் தகவல்களை
-
Avantel Ltd. டூல்ஸ்
- பல்க் டீல்ஸ்
-
Avantel Ltd. நிறுவன தகவல்கள்
- நிறுவன சுயவிவரம்
- நிறுவன வரலாறு
- நிர்வாக குழு
- மூலதன வடிவம்
- புராடெக்ட் மிக்ஸ்
- வங்கியாளர்/தணிக்கையாளர்/பதிவாளர்
-
நிறுவன வரலாறு
- போனஸ்
- மும்பை பங்குச் சந்தையில் விலை வரலாறு
-
Avantel Ltd. முக்கிய நிதியில் விகிதங்கள்
- விகிதங்கள்
-
Avantel Ltd. முடிவுகள்
- காலாண்டு முடிவுகள்
- அரையாண்டு முடிவுகள்
- 9 மாத முடிவுகள்
- வருடாந்திர முடிவுகள்
-
Avantel Ltd. நிதியியல் தகவல்கள்
- தணிக்கை முடிவுகள்
- பணப்பாய்வு
- இருப்பு நிலைக்குறிப்பு
-
Avantel Ltd. அறிக்கை
- கணக்கியல் கோட்பாடுகள்
- தணிக்கையாளர்கள் அறிக்கை
- இயக்குநர்கள் அறிக்கை
- கணக்கு குறிப்புகள்
-
Avantel Ltd. கார்ப்பரேட் அறிவிப்புகள்
- புத்தக முடிவு
- ஈவுத்தொகை
- நிர்வாகக் குழுக் கூட்டங்கள்
