A. Company overview
Shyam Telecom limited (‘the Company’) is a Public Company domiciled and incorporated in India as a limited
liability Company with CIN No.: L32202RJ1992PLC017750. Its shares are listed on National Stock Exchange of India
Limited and Bombay Stock Exchange Limited. The registered office of the Company is situated at Jaipur, Rajasthan.
The Company is presently primarily engaged in trading of mobile accessories and home appliances and others in
India. The financial statements were authorized for issue in accordance with a resolution of the Board of Directors
on 10th May, 2024 (PY-27th May, 2023).
B. Statement of Compliance
The company hereby makes an explicit and unreserved statement that its accounts have been prepared in accordance
with Indian Accounting Standards IND AS and disclosures thereon comply with requirements of IND AS, stipulations
contained in Schedule- III, Division II (revised) as applicable under Section 133 of the Companies Act, 2013 read
with Companies (Indian Accounting Standards) Rules 2015 as amended form time to time.
C. Basis for Preparation of Financial Statements
These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the
historical cost convention method on accrual basis. Certain financial instruments are measured at fair values. The
Ind-AS are prescribed under Section 133 of the Companies Act, 2013 (“the Act”) read with Rule 3 of the Companies
(Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.
D. Use of Estimates
The preparation of the financial statements in conformity with Ind AS requires management to make estimate,
judgements and assumptions that affect the application of accounting policies and the reported amounts of assets
and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported
amounts of revenues and expenses during the period. Accounting estimates could change from period to period.
Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes
aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial
statements in the period in which changes are made and, if material, are reflected in the financial statements in the
period in which changes are made, and their effects are disclosed in the notes to financial statements.
E. Current versus non-current classification
i) An asset is considered as current when it is:
• expected to be realized or intended to be sold or consumed in normal operating cycle;
• Held primarily for the purpose of trading;
• Expected to be realized within twelve months after the reporting period, or
• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period.
All other assets are classified as noncurrent.
ii) A liability is considered as current when it is:
• Expected to be settled in normal operating cycle;
• Held primarily for the purpose of trading;
• Due to be settled within twelve months after the reporting period, or
• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period.
iii) All other liabilities are classified as non-current
iv) Deferred tax assets and liabilities are classified as non-current assets and liabilities.
F. Measurement of Fair Value
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. The fair measurement is based on the presumption that the
transaction to sell the asset or transfer the liability takes place either:
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or
the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that participants would use when pricing
the asset or liability, assuming that market participants act in their economic interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant that
would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of
unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:
• Level 1- Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
• Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement
is directly or indirectly observable.
• Level 3 - Input for the asset or liability that is not based on observable market data (unobservable inputs).
G. Property Plant and Equipment
Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, if any. Costs directly
attributable to acquisition are capitalized until the property, plant and equipment are ready for use, as intended
by management. The cost of property, plant and equipment acquired in a business combination is recorded at fair
value on the date of acquisition.
An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal
or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition
of the asset is included in the Statement of Profit or Loss when the asset is de-recognised.
The Company depreciates property, plant and equipment over their estimated useful lives using the straight-line
method. The estimated useful lives of assets are as follows:
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each
financial year end and adjusted prospectively, if appropriate.
Leasehold lands are amortised over the period of lease. Buildings constructed on leasehold land are depreciated
based on the useful life specified in Schedule II to the Companies Act, 2013, where the lease period of land is beyond
the life of the building.
In other cases, buildings constructed on leasehold lands are amortized over the primary lease period of the lands.
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 put to use before such date
are disclosed under ‘Capital work-in-progress’.
H. Intangible assets
As per Ind AS 38 Intangible assets are stated at acquisition cost and other cost incurred, which is attributable to
preparing the asset for its intended use, less accumulated amortization and accumulated impairment losses, if any.
The cost of intangible assets acquired in a business combination is recorded at fair value on the date of acquisition.
Intangible assets are amortized on straight line basis over their estimated useful economic life not exceeding ten years.
An item of intangible assets is derecognized upon disposal or when no future economic benefits are expected from
its use or disposal. Any gain or loss arising on de-recognition of the asset is included in the Statement of Profit or
Loss when the asset is de-recognized. The residual values, useful lives and methods of amortization of intangible
assets are reviewed at each financial year end and adjusted prospectively, if appropriate.
I. Share Capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares
are recognized as deduction from equity net of any tax effect.
J. Expenditure incurred during Construction period
Expenditure directly relating to construction activity including trial run production expenses (net of income, if
any) is capitalized. Indirect expenditure incurred during construction period is capitalized as part of the indirect
construction cost to the extent to which the expenditure is indirectly related to construction or is incidental thereto.
Other indirect expenditure (including borrowing costs) incurred during the construction period which is not related
to the construction activity nor is incidental thereto, is charged to the Statement of Profit & Loss.
K. Revenue Recognition
As per Ind AS 115, Revenue is recognised on a fair value 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 Products
Revenue from sale of products is recognised, when significant risks and rewards of ownership have been
transferred to the buyer and no significant uncertainty exists regarding the amount of the consideration that
will be derived from the sale of products. It also includes excise duty and excludes value added tax/ sales tax. It
is measured at fair value of consideration received or receivable, net of returns and allowances.
• Rendering of Services
Revenue from services is recognised as they are rendered based on arrangements with the customers.
• Interest Income
For all financial instruments measured at amortized cost, interest income is recorded using the effective interest
rate (EIR), which is the rate that exactly discounts the estimated future cash payments or receipts over the
expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of
the financial asset.
• Dividend Income
Dividend income is recognized when the Company’s right to receive such dividend is established.
L. Inventories
Inventories are valued at lower of cost or net realizable value. The cost is determined by using first-in-first-out (FIFO)
method. Finished goods and work-in progress include costs of conversion and other costs incurred in bringing the
inventories to their present location and condition.
M. Financial Instruments
• Initial Recognition and Measurement
The Company recognizes financial assets and liabilities when it becomes a party to the contractual provisions of
the instrument. All financial assets and liabilities are recognized at fair value on initial recognition, except for
trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and liabilities that are not at fair value through profit or loss are
added to the fair value on initial recognition. Regular way purchase and sale of financial assets are recognised
on the trade date.
• Subsequent Measurement.
a. Non-Derivative Financial Instruments
Financial Assets Carried at Amortised Cost
A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective
is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give
rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.
Financial Assets at Fair Value through Other Comprehensive Income
A financial asset is subsequently measured at fair value through other comprehensive income if it is held within
a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets
and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.
The Company has made an irrevocable election for its investments were classified as equity instruments to
present the subsequent changes in fair value in other comprehensive income based on its business model.
Further, in cases where the Company has made an irrevocable election based on its business model, for its
investments which are classified as equity instruments, the subsequent changes in fair value are recognized in
other comprehensive income.
Financial Assets at Fair Value through Profit or Loss
A financial asset which is not classified in any of the above categories is subsequently fair valued through profit
or loss.
Financial Liabilities
Financial liabilities are subsequently carried at amortized cost using the effective interest method, except for
contingent consideration recognized in a business combination which is subsequently measured at fair value
through profit and loss. For trade and other payables maturing within one year from the Balance Sheet date, the
carrying amounts approximate fair value due to the short maturity of these instruments.
b. Derivative Financial Instruments
Financial Assets or Liabilities, at Fair Value through Profit or Loss:
This category has derivative financial assets or liabilities which are not designated as hedges. Although the
Company believes that these derivatives constitute hedges from an economic perspective, they may not qualify
for hedge accounting under Ind AS 109, Financial Instruments. Any derivative that is either not designated
a hedge, or is so designated but is ineffective as per Ind AS 109, is categorized as a financial asset or financial
liability, at fair value through profit or loss.
Derivatives not designated as hedges are recognized initially at fair value and attributable transaction costs are
recognized in net profit in the Statement of Profit and Loss when incurred. Subsequent to initial recognition,
these derivatives are measured at fair value through profit or loss and the resulting exchange gains or losses are
included in other income. Assets/ liabilities in this category are presented as current assets/ liabilities if they are
either held for trading or are expected to be realized within 12 months after the balance sheet date.
c. De-recognition of Financial Instrument
The Company derecognizes a financial asset when the contractual right to receive the cash from the financial
asset expires or it transfers the financial asset. A financial liability is derecognized when the obligation under
the liability is discharged, cancelled or expired.
N. Product Warranty Expenses
Liability for Warranties is recognized at the time the claim is accepted.
The necessary provisions are made with respect to warranties claimed and accepted up to the end of one month
from the closure of the year.
O. Foreign Currency
• Functional Currency
Financial statements of the Company are presented in Indian Rupees (T), which is also the functional currency.
• Transactions and Translations
Foreign-currency denominated monetary assets and liabilities are translated into the relevant functional currency
at exchange rates in effect at the balance sheet date. The gains or losses resulting from such translations are
included in the Statement of Profit and Loss. Non-monetary assets and non-monetary liabilities denominated in a
foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair
value was determined. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and
measured at historical cost are translated at the exchange rate prevalent at the date of the transaction. Transaction
gains or losses realized upon settlement of foreign currency transactions are included in determining net profit
for the period in which the transaction is settled.
Foreign exchange differences regarded as an adjustment to borrowing costs are presented in the statement of
profit and loss, within finance costs. All other foreign exchange gain and losses are presented in the statement
of profit and loss on net basis within other gains/(losses).
P. Borrowing Costs
As per Ind AS 23, Borrowing costs directly attributable to the acquisition, construction or production of an asset
that necessarily takes a substantial period of time to get ready for its intended use, are capitalized as part of the cost
of the respective asset. All other borrowing costs are charged in the period, in which they occur in the statement
of profit and loss.
Q. Claims
Claims receivables are accounted for depending on the certainty of receipt and claims payables are accounted at
the time of acceptance.
R. Employee Benefits
Short term employee benefits are recognized as expenses at the undiscounted amount in the Statement of Profit &
Loss of the year in which related service is rendered.
The Company has defined contribution plans for post-retirement benefit, namely Employee Provident Fund Scheme
administered through Provident Fund Commissioner and Company contribution is charged to revenue every year.
Company contribution to state plans namely Employees State Insurance Fund & Employee Welfare Fund is charged
to revenue every year.
• The Company has defined benefit plan namely Leave Encashment/Compensated absence and Gratuity, the
liability for which is determined on the basis of an actuarial valuation at the end of the year. Gratuity Trust is
administrated through Life Insurance Corporation of India (LIC).
• Termination benefits are recognized as expense immediately.
• Gain or Loss arising out of actuarial valuation is recognized in the Statement of Profit & Loss as income or
expense.
Post-employment and other long term employee benefits are recognized as an expense in the Statement of Profit and
Loss for the period in which the employee has rendered services. The expense is recognized at the present value of
the amounts payable determined using actuarial valuation techniques. Gains and losses through re-measurements
of the net defined benefit liability/ (asset) are recognized in other comprehensive income. The actual return of the
portfolio of plan assets, in excess of the yields computed by applying the discount rate used to measure the defined
benefit obligation is recognized in other comprehensive income. The effects of any plan amendments are recognized
in the statement of profit and loss.
S. Taxation
Income tax comprises of current and deferred income tax .Provision for current income tax is made after taking
credit for allowances and exemptions. In case of matters under appeal, due to disallowance or otherwise, provision
is made when the said liabilities are accepted by the Company.
Deferred Tax is provided using the liability method on temporary differences between the tax bases of assets and
liabilities and their carrying amounts for the financial reporting purposes at the reporting date.
Deferred tax assets arising from temporary timing difference are recognised to the extent there is virtual certainty
that the asset will be realized in future.
Minimum Alternative Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing
evidence that the Company will pay income tax higher than that computed under MAT during the period such MAT
is permitted to be set off under the Income Tax Act, 1961 (specified period). In the year, in which the MAT credit
becomes eligible to be recognized as an asset in accordance with the recommendations contained in the guidance
note issued by the Institute of Chartered Accountants of India (ICAI), the said asset is created by way of a credit
to the profit and loss and shown as MAT credit entitlement. The Company reviews the same at each balance sheet
date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer convincing
evidence to the effect that the Company will pay income tax higher than MAT during the specified period.
The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set
off the recognised amounts and where it intends either to settle on a net basis, or to realize the asset and settle the
liability simultaneously.
T. Government Grants
Government grant in the nature of promoter’s contribution is treated as capital receipt and credited to investment
subsidy account.
Grant in the nature of revenue subsidy is treated as revenue receipt and credited to profit and loss account.
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