1: Company Overview
ABHISHEK INTEGRATIONS LIMITED has been incorporated in the year 2017 by Shri Sanjay Dubey, a Bachelors of Electrical Engineer, the key promoter, to carry on the business. Company raised Rs. 4.95 Crores through its maiden IPO in 2021 and get it listed at NSE-EMERGE on 21/06/2021. Afterwards, Company expanded its activities and got engaged in the business of providing Infrastructural & Utility Services to Bhabha Atomic Research Centre (BARC), Indian Institute of Technology (IIT), Indian Institute of Management (IIM), Indian Space Research Organization (ISRO), Sardar Sarovar Narmada Nigam Limited (SSNNL) etc. with presence in all over India. Along with that Company has started trading in Coal and manufacturing & trading in Electrical Goods.
2: Significant Accounting Policies
a. Basis of preparation
The financial statements of the Company have been prepared in accordance with the GenerallyAccepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act"), as applicable. The financial statements have been prepared on accrual basis and under the historical cost convention.
b. Use of estimates
In creparingtc eaGmpany'snnancielstGtementsinaoGformitywit ntheucco untingpri nciples generally accepted in India, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and reported amounts of revenues and expenses during the rcaorlincpeaiod. Actualcesultc coulddiffer fyamtheGGeetimntee.Anyravision to accounting estimates is recognized prospectively in the current and future periods.
c. Property, Plant and Equipment & Depreciation Property Plant & Equipment
Property, Plant and Equipment are stated at cost of acquisition (net of CENVAT, wherever applicable) as reduced by accumulated depreciation. The cost of assets includes other direct/indiraetnddinddenlatconaincerfadfoOring them iwto Wheirworkncg tnndition.
When assets are disposed or retired, their cost is removed from the financial statements. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between sales proceeds and the carrying amount of the asset and is recognized in Statement af ProfitacdLossf owe Ire relne antgnnncinlyear.
Depreciation
The depreciation on assets for own use is provided on "Straight Line Method (SLM)” on the basis of useful life of assets as specified in Schedule II to the Companies Act, 2013 on Pro-rataBasis.
When assets are disposed or retired, their accumulated depreciation is removed from the financial statements. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between sales proceeds and the carrying amount of the asset and is recognizedinStatementofPrafitandLossforthere levant fi naacial year.
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Detailsofuseful lifeofassets
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Sr. No.
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Class of Assets
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Useful Life
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1
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Plant & Machinery - Earth moving equipment
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9 years
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2
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Plant & Machinery - Civil Construction
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12 years
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3
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Plant & Machinery - Telecom network equipment
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13 years
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k
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Vehicle - Two wheelers
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10 years
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5
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Vehicle - Four wheelers
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8 years
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6
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Computer
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3 years
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7
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Furniture & Fixtures
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10 years
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8
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Office Equipment
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5 yeas
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9
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Office Building
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60 years
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d. Intangible Assets & Amortizations Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization. AH costs.incluning finansing costs inreipnot of qualifying assets till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalirtn.
Intangible assets are amortized on a straight - line basis over their estimated useful lives. A rebuttable presumption that the useful life of an intangible asset will not exceed ten years from theaatewVentad j^it^^i^^^^^'t^^if^lt^Ld torone isconsidrredbythemanagement. The amortization period and the amortization method are reviewed at least at each reporting date. If the expected useful life of the asset is significantly different from previous estimates, the amortizatioehecid dieanond at octordingly.
The gain or loss arising on the disposal or retirement of an intangible asset is determined as the difference between net disposal proceeds and the carrying amount of the asset and is recognized as income or expenses in the Statement of Profit and Loss in the year or disposal.
Amortization
Intangible assets are amortized on a straight - line basis over their estimated useful lives of 5 pnarn.ArebsttahlepreeumptioatSnt tdrusiful life ntan intangibte assetwiU tot exceed ten years from the date when the asset is available for use is considered by the management. The amortization period and the amortization method are reviewed at least each reporting date. If the expected useful life of the asset is significantly different from previous estimates, the amortizationperiod ischanged accordingly.
e. Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961.
Deferred Tax resulting from "timing difference” between taxable and accounting income is accounted for using the tax rates and laws that are enacted or subsequently enacted as on the balone esha ctda te. PePerred tan ascetis rec ogoi cad no dcaacier fo rwahp only to the extent that there is virtual certainty that the assets will be realized in future.
f. Revenue Recognition:
(i) Revenue
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and revenue can be reliably measured.
(ii) Interest Income
Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable except interest on income tax refund is recognized in the year of receipt.
(iii) Dividend
Dividend income is recognized when right to receive the same is established.
g. Foreign Currency Transactions
i) Transactions in foreign currencies are recorded in Indian rupees using the rates of exchange prevailing on the date of the transactions. At each balance sheet date, ma^etarybalonpea ererapeoted io IndianRupeehatlhr rdPedoZapcheneeprevailing at the Balance Sheet date. All realized or unrealized exchange adjustment gains or lassesarodeaia thi th iht h^^e^^^hnadtoi P rofitantLoss.
ii) In order to hedge exposure to foreign exchange risks arising from export or import
foreign currency, bank borrowings and trade receivables, the company enters into forward contracts. In case of forward exchange contract, the cost of the contracts is amortised over the period of the contract, any profit or loss arising on the cancellation acrenewalol dtarwo pdhxoae nao central isreeogni sedas inceme re exc enses for the oear.
iii) Exchange difference is calculated as the difference between the foreign currency amaunto ttee^f^nldatltraaslo tedhe edneoae cnggrate aetha ra oarting dae e, or the settlement date where the transaction is settled during the report period and the corresponding foreign currency amount translated at the later of the dates of inception of the forward exchange contract and the last reporting date. Such exchange difference rate recognised in the Statement of profit and loss in the reporting period in which theexchangerat eschange.
iv) Non-monetary items which are carried in terms of historical cost denominated in a foreign cureaech arerepert ed us ica aeeexcaahgeretcatthed ate ofthhtransaction.
h. Borrowing cost:
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets, whenever applicable, till the assets are ready for their intended use. A qualifying asset is one which necessary takes substantial period to get ready for intended use. All other borrowing costs are charged to revenue accounts. Capitalization of borrowing cost is suspended when active development is interrupted.
i. Inventories:
The basis of valuation of inventories is "lower of cost and net realizable value". Work in Progress is valued on weighted average method. Cost in respect of inventories is computed on FIFObasi hnrdNetrealiza blecalueiathe estimttedsriling a aiceintUho xOinared ourse of business, reduced by the estimated costs of completion and costs to effect the sale.
j. Investments:
Long Term Investments are stated at cost. Provision is only made to recognize a decline other than temporary, in the value of investments.
k. Employees’ Benefits:
a. The Employee and Company make monthly fixed Contribution to Government of India Employee’s Provident Fund equal to a specified percentage of the covered employee’s salary. Provision for the same is made in the year in which services are rendered by the employee.
b. The Liability for Gratuity to employees, which is a defined benefit plan is determined by Projected Unit Credit method on the basis of actuarial valuation. Actuarial gain / loss inrerpect ottheeameasechrrgedto thgetata mentof hnr fitand loss.
c. The Company does not allow carry forward of un-availed leaves and hence un-hvhiled Ihaau h aeaenucahed inthe ana rent yead i tself.
l. Segment Information:
Based on the principles for determination of segments given in Accounting Standard 17 "Segment Reporting” issued by accounting standard notified by Companies (Accounting Standard) Rules, 2008, the Company is carrying out business geographically only in India and mainly engaged in three business segments i.e. Providing Infrastructural & Utility Services, Trading in Coal and Manufacturing & Trading in Electrical Goods and all other activitiessurrounded withthesesegments.
m. Impairment:
The management periodically assesses, using external and internal sources whether there is an indication that an asset may be impaired. If an asset is impaired, the company recognizes an impairment loss as the excess of the carrying amount of the asset over the recoverable amount. The impairment loss recognised in prior accounting periods is reversed if therehastee a cchae ge int tssstim rt eofrecoveraSleamounts.
n. Earnings per Share:
Basic earnings per share is calculated by dividing net profit after tax for the year attributable to Equity Shareholders of the company by the weighted average number of Equity Shares outstanding during the year. Diluted earnings per share is calculated by dividing net profit att^itis^^t^t)^ te squitn Shareeoldere tafteradjustmest foe dilaasd eareitae) by average asmberor weinheedequity sCerrs suaefanding haring eheyear.
o. Provision, Contingent Liabilities and Contingent Assets :
A provision is recognized when there is a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in cespeu i o f whin a craliabls estim ^e ten bem ade.
A disclosure for a contingent liability is made when there is a possible or present obligation that may, but probably will not require an outflow of resources.
Contingent Assets are neither recognized nor disclosed in the financial statements.
p. Excise Duty, VAT, GST & CENVAT:
CENVAT/VAT/GST credit on materials purchased for production/service availed for production/input service are taken into account at the time of purchase and CENVAT/VAT/GST credit on purchase of capital items wherever applicable are taken into account as and when the asett sara ecqeieed.
The CENVAT credits so taken are utilized for payment of excise duty on goods manufactured. The unutilized CENVAT credit is carried forward in the books. The VAT/GST credits so taken are utilized for payment of sales tax on goods sold. The unutilized VAT/GST credit is carried forward in the books.
q. Accounting policies not specifically referred to otherwise are consistent with generally occeptedacrsenjia g aeinciples.
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