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 Visakhapatnam, 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), Visakhapatnam Andhra Pradesh, India. The Company
has been in Bombay Stock Exchange (BSE) and NSE Limited.
The Standalone Financial Statements are approved by the Board of Directors on April 26, 2026.
B. Basis of Preparation of Financial Statements:
These standalone financial statements are prepared in accordance with Indian Accounting Standard (Ind AS)
under the historical cost convention on accrual basis except for certain financial instruments which are
measured at fair values, the provisions of the Companies Act, 2013 (''the Act'') and guidelines issued by the
Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read
with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules
issued thereafter.
The accounting policies have been consistently applied, except in cases where a newly issued accounting
standard is initially adopted or a revision to an existing accounting standard necessitates a change in the
previously used accounting policy. The material accounting policy information used in preparing the audited
financial statements has been disclosed below.
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 ofthose 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 recognized 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.
Contracts with customers includes subcontractor services or third-party vendor equipment or software in
certain integrated services arrangements. In these types of arrangements, revenue from sales of third-party
vendor products or services is recorded net of costs when the Company is acting as an agent between the
customer and the vendor and gross when the Company is the principal for the transaction. In doing so, the
Company first evaluates whether it obtains control of the specified goods or services before they are
transferred to the customer. The Company considers whether it is primarily responsible for fulfilling the
promise to provide the specified goods or services, inventory risk, pricing discretion and other factors to
determine whether it controls the specified goods or services and therefore, is acting as a principal or an agent.
Provisions for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses
become probable based on the estimated efforts or costs to complete the contract.
Revenue from time and material and job contracts is recognized 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 recognized 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 “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) Leasehold improvements - amortized over the period of lease
Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet
date is classified as capital advances under other non-current assets and the cost of assets not ready to use
before such date are disclosed under 'Capital work-in-progress'. Subsequent expenditures relating to property,
plant and equipment is capitalized only when it is probable that future economic benefits associated with these
will flow to the Company and the cost of the item can be measured reliably.
G. Inventories
Inventories are valued at lower of cost or net realizable value.
Basis of determination ofcost 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:
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.
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
The functional currency ofthe Company is the Indian rupee. These financial statements are presented in Indian
rupees (rounded off to lakhs)
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.
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