Significant Accounting Policies and Notes on Financial Statements for the year ended on March 31, 2015 1. Company Background SUYOG T.ELEMATICS LIMITED (the "Company") is serving Mobile Telecom Industry as Service provider of Telecommunication Products and Services. The Company makes available Telecommunication products such as Telecommunications Cables, Telecommunication Panels, Diesel Generators, Earth Strips, Batteries, Electric Power Cable, Fiber Cable and Galvanized Poles etc. in different specifications stated by the buyers. Having association to bring Funicular Ropeway Project to India for the first time, the company has emerged as a prominent name in telecommunication industry. As well, the company is a name to reckon with when it comes to Monopole sites for telecom operators and acquisition of special properties and Project Management. The name of the company has been changed from Suyog Telematics Private Limited to Suyog Telematics Limited on July 27, 2013. The Company has issued 20,00,000 Equity Shares of INR 10 Each at INR 45/- Per Share on brferential basis to Non Promoter Group for a total Consideration of INR 9,00,00,000/- as on Feb 10, 2015 2. Statement of Significant Accounting Policies i. Basis of brparation of financial statements These financial statements have been brpared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been brpared to comply in all material aspects with the accounting standards notified under Section 211(3C) [Companies (Accounting Standards) Rules, 2006, as amended} and the other relevant provisions of the Companies Act, 2013. ii. Use of Estimates The brsentation of financial statements in conformity with the generally accepted accounting principles require estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenue and expenses during the reported period. Differences between the actual result and estimates are recognized in the period in which the results are known/materialize. iii. Cash Flow Cash flow statement has been brpared in accordance with the "indirect method" as explained in the Accounting Standard 3 issued by the Institute of Chartered Accountants of India. iv. Fixed Assets Fixed Assets are stated at cost of acquisition less accumulated debrciation thereon. Fixed Assets are accounted at cost of acquisition inclusive of inward freight, duties taxes and other incidental expenses related to acquisition and installation of Fixed Assets incurred to bring the assets to their working condition for their intended use. v. Debrciation Debrciation is provided for in the books on written down value method as per the useful life brscribed under Schedule II of the Companies Act, 2013. Debrciation has been charged from the date of purchases/commissioning of the assets acquired/Installed during the period. vi. Income Recognition Revenue from the installation services is recognized on transfer of the title as per the Contact Terms with the Customer. Revenue from fixed-price, fixed-time frame contracts, where there is no uncertainty as to the measurement or collectability of consideration that will be derived on completion of the contract, is recognized as per the percentage of completion method. Interest on deposits, Rent and Maintenance is accounted for on the time proportion basis. vii. Foreign Currency Translation Foreign currency transactions are recorded in the books at exchange rates brvailing on the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the period are recognized as income or expense in the profit and loss account of the same period. Foreign currency assets and liabilities are translated at the period end rates and the resultant exchange differences, are recognized in the profit and loss account. viii. Borrowing Cost Borrowing Costs that are directly attributable to the acquisition or production of qualifying assets are capitalized as the cost of the respective assets. Other Borrowing Costs are charged to the Profit and Loss Account in the period in which they are incurred. ix. Employees benefits All employee benefit obligations payable wholly within twelve months of the rendering the services are classified as Short Term Employee Benefits. Such Benefits are estimated and provided for in the period in which the employee renders the related service. x. Inventories Inventories are measured at lower of the cost and net realizable value. Cost of inventories comprises all costs of purchase (net of input credit) and other costs incurred in bringing the inventories to their brsent location and condition. Costs of consumable and materials are determined by using the First-ln First-Out Method (FIFO). xi. Investments Investments are carried at cost. Decline in the value of long term investments is recognized only if considered other than temporary. Current investments are carried at the lower of cost and quoted/fair value. xii. Accounting for taxes on Income a) Income tax comprises the current tax and net change in deferred tax assets, which are made in accordance with the provisions as per the Income Tax Act, 1961. b) Deferred Tax resulting from timing differences between accounting income and taxable income for the period is accounted for using the tax rates and laws that have been enacted or substantially enacted as at the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized. xiii. Leased Assets Assets acquired on leases where a significant portion of the risks and rewards of the ownership are retained by the lessor, are classified as Operating Leases. The rental and all other expenses of leased assets are treated as revenue expenditure. xiv. Provisions and Contingent Liabilities The Company recognizes a provision when there is a brsent obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a brsent obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a brsent obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made. xv. Impairment of Assets The Company assesses at each balance sheet date whether there is any indication that an assets may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or recoverable amount of the cash generating unit to which the assets belongs is less than the carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as impairment loss and is recognized in the profit and loss account. If at the balance date there is an indication that if a brviously assessed impairment loss no longer exists, the recoverable amount is reassessed and the assets is reflected at the recoverable amount. xvi. Cash and cash equivalents The Company considers all highly liquid financial instruments, which are readily convertible into cash and have original maturities of three months or less from the date of purchase, to be cash equivalents. 2. Notes on Financial Statements a. Segment Reporting The Company is mainly engaged in single segment business of Telecommunication Products and Services, which is managed as one entity and governed by a similar set of risk and returns. Further, operations of the Company is confined to the single geographic segment i.e. India and does not qualify for reporting as geographic segment. Further, in view of the Accounting Standard Interbrtation (ASI) 20, issued by the Institute of Chartered Accountants of India for companies operating in single segment, the disclosure requirements as per Accounting Standard 17 'Segment Reporting" are not applicable to the Company. b. In view of Accounting Standard required by AS-28 "Impairment of Assets" issued by ICAI, the company has reviewed its fixed assets and does not expect any loss as on 31st March, 2015 on account of impairment. c. Income and Expenditures in Foreign Currency: Nil d. Purchases of material for consumption and installation of polls and towers was made during the financial year include purchases from Unregistered Dealers. e. Events Occurring After Balance Sheet Date No significant events have occurred after the Balance sheet date till the signing of report which could affect the financial position as on 31st March, 2015 to a material extent, have been reported by the management f. In the opinion of the management, current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated and similarly all liabilities are payable as on balance sheet date. g. Balances of Long Term Liabilities, Current Liabilities i.e. Trade Payables, Short Term Liabilities & Other Current Liabilities & Long Term Loans and Advances, Other non Current Assets, Trade Receivables, Short Term Loans and Advances, Sundry Deposits and Other Current Assets are subject to Confirmations, Reconciliation and Consequential Adjustments, if any thereon. h. The company being listed company required to follow section 203 & 134 (1), However, the view of absence of appropriate candidate for filing vacancy of Company Secretary and CFO have not appointed. The said Key Managerial Personnel as per section 203 and to the extent 134(1) Signing of financial statement have been considered only by director. However, the management has considered the matter in the process of appointing Company Secretary and CFO. i. In view of multiplicity and difficulty in identification of accounts to Micro, Small and Medium Enterprises, information with regard to amount unpaid at the yearend together with the interest paid / payable under the MSMED Act, 2006 as required under to the Companies Act, 2013 is not disclosed. j. Prior Year Comparatives: These financial statements have been brpared in the format brscribed by the Revised Schedule VI to the Companies Act. Previous period figures have beenrecasted / restated to conform to the classification of the current period. As per our Report of even date attached For Maheshwari & Co. Chartered Accountants FRN : 105834W Sd/- (Pawan Gattani) Partner M. No. 144734 For and on behalf of Board of Director of Suyog Telematics Limited (CIN : L32109MH1995PLC091107) Sd/- (Shivshankar Lature) Managing Director DIN - 02090972 Sd/- (Vivek Lature) Executive Director DIN-02274098 Place: Mumbai Date: May 30, 2015 |