1 Company Information:
Athena Global Technologies Limited ('the Company') is a public limited company incorporated in India having its registered office at
Hyderabad, Telangana. The Company is engaged in Software Development & Consulting and Real Estate Activities. The
accompanying Financial Statements includes the accounts of Head Office in India and overseas branches in USA and UK. The
Company has its primary listings on the Bombay Stock Exchange.
2 Summary of Material:
This note provides a Summary of Material accounting policies adopted in the preparation of the financial statements. These policies
have been consistently applied to all the years presented, unless otherwise stated.
a) Statement of Compliance:
The financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies
(Indian Accounting Standards) Rules, 2015 as amended by the Companies (Indian Accounting Standards) Amendment Rules, 2016
and Companies (Indian Accounting Standards) Amendment Rules, 2017, the relevant provisions of the Companies Act, 2013 ('the
Act') and guidelines issued by the Securities and Exchange Board of India (SEBI), as applicable.The presentation of financial
statements is based upon Ind AS Schedule III of Companies Act, 2013.
b) Basis of preparation:
The financial statements have been prepared under the historical cost convention with the exception of certain assets and liabilities
that are required to be carried at fair values by Ind AS. Fair value is the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date.
c) Use of estimates and critical accounting judgements:
In preparation of the financial statements, the Company makes judgements, estimates and assumptions about the carrying values of
assets and liabilities that are not readily apparent from other sources. The estimates and the associated assumptions are based on
historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and the underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised and future periods affected.
Significant judgements and estimates relating to the carrying values of assets and liabilities include useful lives of property, plant
and equipment and intangible assets, impairment of property, plant and equipment, intangible assets and investments, provision
for employee benefits and other provisions, recoverability of deferred tax assets, commitments and contingencies.
d) Revenue Recognition:
i) The Business Income
The Company earns revenue from Sale of Software services, IT enabled & Business Support Services and the Sale of Flats.
Revenue is recognized, when the company satisfies a performance obligation by transferring a promised good or service to its
customers. The company considers the terms of the contract and its customary business practices to determine the transaction
price. Performance obligations are satisfied at the point of time when the customer obtains controls of the asset.
Revenue is measured based on transaction price, which is the fair value of the consideration received or receivable, stated net of
discounts, returns and value added tax. Transaction price is recognised based on the price specified in the contract, net of the
estimated sales incentives/ discounts. Accumulated experience is used to estimate and provide for the discounts/ right of return,
using the expected value method.
ii) Other income
Interest Income is recognised on time proportion basis taking in to account the amount outstanding and the rate applicable.
e) Borrowing Costs:
Borrowings costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that
necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such
time as the assets are substantially ready for the intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is
deducted from the borrowing cost eligible for capitalization.
Other borrowings costs are expensed in the period in which they are incurred.
f) Employee Benefits:
(i) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the
end of the period in which the employees render the related service are recognized in respect of employees' services up to the end of
the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented
as current employee benefit obligations in the balance sheet.
(ii) Other long-term employee benefit obligations
The liabilities for earned leave is not expected to be settled wholly within 12 months after the end of the period in which the employees
render the related service. They are therefore measured at the present value of expected future payments to be made in respect of
services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are
discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related
obligations. Remeasurements as a result of the experience adjustments and changes in actuarial assumptions are recognized in
profit or loss.
The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer
settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.
(iii) Gratuity obligations
The liability or assets recognized in the balance sheet in respect of gratuity plans is the present value of the defined benefit obligation
at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries
using the projected unit credit method.
The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to
market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related
obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of
plan assets. This cost is included in employee benefit expense in the statement of profit and loss.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the
period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of
changes in equity and in the balance sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized
immediately in profit or loss.
(iv) Defined contribution plans
The Company pays provident fund contributions to publicly administered funds as per local regulations. The Company has no further
payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the
contributions are recognized as employee benefit expense when they are due.
g) Income Taxes:
Tax expense for the year comprises current and deferred tax.
Current Tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates
and the provisions of the Income-tax Act, 1961 and other applicable tax laws that have been enacted or substantively enacted by the
end of the reporting period.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements
and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all
taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that
it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred
tax assets and liabilities are not recognised if the temporary differences arise from the initial recognition (other than in a business
combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax assets and
liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised,
based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they are
related to income taxes levied by the same tax authority, but they intend to settle current tax liabilities and assets on a net basis or their
tax assets and liabilities will be realized simultaneously.
h) Property, plant and equipment(PPE):
Property, plant and equipment are carried at cost less accumulated depreciation and impairment losses, if any. The cost of property,
plant and equipment comprises of purchase price, applicable duties and taxes, any directly attributable expenditure on making the
asset ready for its intended use, other incidental expenses and interest on borrowings attributable to acquisition of qualifying fixed
assets, upto the date the asset is ready for its intended use.
All other repair and maintenance costs, including regular servicing, are recognised in the statement of profit and loss as incurred.
When a replacement occurs, the carrying value of the replaced part is de-recognised. Where an item of property, plant and equipment
comprises major components having different useful lives, these components are accounted for as separate items.
Property, Plant and equipment retired from active use and held for sale are stated at the lower of their net book value and net realizable
value and are disclosed separately.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise
from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment
is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.
i) Expenditure during Product Development period:
Expenditure during Developement period (including finance cost related to borrowed funds for construction or acquisition of
qualifying PPE) is included under Capital Work-in-Progress and the same is allocated to the respective PPE on the completion of their
development.
j) Depreciation:
Depreciation is the systematic allocation of the depreciable amount of PPE over its useful life and is provided on the straight line
method over the useful lives as prescribed in Schedule II to the Act.
k) Impairment of Assets:
Intangible assets and property, plant and equipment: Intangible assets and property, plant and equipment are evaluated for
recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the
purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is
determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from
other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.
If such assets are considered to be impaired, the impairment to be recognized in the statement of profit and loss is measured by the
amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is
reversed in the statement of profit and loss if there has been a change in the estimates used to determine the recoverable amount. The
carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying
amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been
recognized for the asset in prior years.
I) Inventories:
(i) Computer Software and Course Material
inventoies are valued at Lower of Cost and Net Realisable Value, Including necessary provision for Absolescence.
(ii) Land given for Development and the Flats recieved there from
The Land is initially recognised as Investment Property now converted as Stock in trade after entering in to the JDA for development.
Investment property measured initially at cost, including transaction costs. Subsequent to initial recognition, now the Flats Received
from the Developer are our inventoies and are valued at Lower of Cost and Net Realisable Value, Including necessary provision for
Absolescence.
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