U. Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when there is a present
obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities
are not recognized but are disclosed in notes.
Show cause notices issued by various government authorities are not considered as obligation. When the demand
notice are raised against such show cause notice and are disputed by the Company then these are classified as
possible obligations.
V. Leases
Leases where significant portion of risk and reward of ownership are retained by the lessor are classified as operating
leases and lease payments are recognised as an expense on a straight line basis in Statement of Profit and Loss over
the lease term.
Finance leases that transfer substantially all of the risks and benefits incidental to ownership of the leased item, are
capitalized at commencement of the lease at the fair value of the leased property or, if lower, at the present value
of the minimum lease payments. Lease payments are apportioned between finance charges and a reduction in the
lease liability so as to achieve a constant rate of interest on the remaining balance of liability. Finance charges are
recognised in finance cost in the statement of profit and loss.
W. Proposed Dividend
The final dividend on shares is recorded as liability on the date of approval by the shareholders, and interim dividends
are recorded as a liability on the date of declaration by the Company’s Board of Directors.
X. Cash and Cash Equivalent
Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly
liquid investments (original maturity less than 3 months) that are readily convertible into known amounts of cash
and which are subject to an insignificant risk of changes in value.
Y. Earnings per Share
The earnings considered in ascertaining the Company’s Earnings per Share (‘EPS’) comprise the profit/(loss) for
the year. The number of shares used in computing basic EPS is the weighted average number of shares outstanding
during the year. The weighted average number of equity shares outstanding during the year is adjusted for event of
bonus element in a rights issue to existing shareholders.
The number of shares used in computing diluted earnings per share comprises the weighted average shares
considered for deriving basic earnings per share, and also the weighted average number of shares, if any which
would have been used in the conversion of all dilutive potential equity shares.
Z. Impairment
• Financial Assets
The Company recognizes loss allowances using the expected credit losses (ECL) model for the financial assets which
are not fair valued through statement of profit and loss. Loss allowance for trade receivables with no significant
financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected
credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase
in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of expected
credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is
required to be recognised is recognised as an impairment gain or loss in statement of profit and loss.
• Non-Financial Asset
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 in dependent of those from other
assets. In such cases, the recoverable amount is determined for the Cash Generating Unit 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 recognised for the asset in prior year.
*Income tax demands mainly include the appeals filed by the Company before various appellate authorities against the
disallowance by income tax authorities of certain expenses being claimed, non-deduction of tax at source with respect to
dealers / distributor’s margin and payments to international operators for access charges (Net of amount paid).
** VAT/Sales Tax demand mainly relates to demand raised by VAT & Sales tax department of few states on supply of charger
(Net of amount paid).
25. An amount of Rs.42.82 crore (PY Rs. 42.82 crore, cr.) being advances from customers classified under the head “Other
Current Liabilities” are in process of being settled for a long time. An amount of Rs. 2.26 crore (PY Rs. 2.26 crore, cr.)
being Sundry Creditors classified under the head “Trade Payables” are in process of being settled for a long time. An
amount of Rs. 28.10 cr (PY 28.10 crore, dr.) being Loan to Subsidiary Classified under “Loans-Doubtful”. The company
had already made a provision of Rs. 28.10 (PY Rs. 28.10 crore) against such doubtful advances in previous years. All the
above-mentioned amounts are long overdue and Company is following up for approvals.
26. In the earlier years, the Company had invested in the share capital of wholly owned subsidiary Shyam telecom Inc.
(STI), USA and given advance against share capital and extended long term loans to STI and accordingly, an amount of
Rs. 20.74 Lacs (PY Rs 20.74 Lacs, dr.) and Rs. 2789.31 lacs (PY Rs. 2789.31 Lacs, dr.) are outstanding as on the year end
against such advance and loans, respectively. The Subsidiary company had liquidated all assets and had accumulated
losses amounted to Rs. 2124.63 lacs (PY Rs. 2124.63 Lacs,). Shyam Telecom Inc. (Corporation), erstwhile subsidiary of
the Company has been dissolved as per the certificate issued by State Of Delaware (USA) pursuant to Section 275 and
391 (a) (b) (c) with effect from 22nd December, 2015. Accordingly, The Company had made provisions against advances
given for share capital and long term loans amounting to US$ 33,94,344 (33,69,294 25,050) and provided impairment
loss against investment made, in the earlier years. An application to write-off the same post dissolution has been made
which is subject to approval from Reserve Bank of India. Since the corporation has already been dissolved w.e.f. 22nd
December, 2015, the same will be written off after taking necessary approval from RBI. However, full provision and
impairment loss for the same is already been made in the books of account.
27. The Company is exposed primarily to market risk, credit risk and liquidity risk which may adversely impact the fair
value of its financial instruments. The Company assesses the unpredictability of the financial environment and seeks
to mitigate potential adverse effects on the financial performance of the Company.
Market Risk:
Market risk is the risk that fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. It is a risk of changes in market prices due to foreign exchange rate changes and interest rates that will
fluctuate affecting Company’s revenue and the value of its financial instruments.
(a) Interest Rate Risks
The Company does not have any floating interest bearing borrowings as on 31st March, 2024 and 31st March, 2023.
Hence, Company is not exposed to any significant interest rate risks.
(b) Foreign Currency Risks
The Company has following un-hedged foreign currency risks on financial assets and financial liabilities
Credit Risk:
Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due,
causing financial loss to the Company. Credit risk arises from Company’s activities in investments and outstanding
receivables from customers.
Liquidity Risk:
Liquidity risk arises from the inability to meet cash flow commitments on time. Prudent liquidity risk management implies
maintaining sufficient stock of cash and marketable securities.
30. The figures of Long-term / Short-term borrowings, Trade payable, Trade receivables & Other Current Assets and Loans
and Advances shown in the foregoing Balance sheet are subject to confirmation.
31. In the opinion of Board of Directors, PPE , Current Assets, Loans and Advances have a value on realisation in ordinary
course of business at least equal to the amount at which they are stated in the Balance Sheet and provision for all
liabilities have been made in the Accounts, which has been relied upon by the auditors.
32. The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets
a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.
These benefits are funded. The following tables summarises the components of net benefit expense recognized in the
Statement of profit and loss and the funded status and amounts recognized in the balance sheet.
The Company has calculated the various benefits provided to employees as under:
A. Provident Fund & Other fund
During the year the Company has recognized Rs. 7.79 Lacs (previous Year Rs. 7.90 lacs) towards contribution to PF in
the Statement of Profit and Loss .
B. State Plans
Employer’s contribution to Employee State insurance
During the year, the Company has recognised Rs. 0.71 Lacs (Previous year Rs. 0.76 lacs) towards contribution to ESI
in the Statement of Profit and Loss.
C. Defined Benefit Plans
The actuarial valuation carried out is based on following assumption:
33. None of the creditors have informed that they comprise Micro, small & medium enterprises as defined under MSMED
Act, 2006. Hence there are no creditors which comprise amount outstanding for more than 45 days at Balance Sheet
date. Based on information available with company, the balance due to micro and small enterprise as defined in MSMED
Act, 2006 in current year is Rs. NIL and no interest during the year has been paid or payable under terms of MSMED
Act, 2006.
34. The Company has incurred a loss of Rs. 312.55 (PY loss of Rs.487.11 Lacs) during the year and the net worth has
been fully eroded for the year under report. Considering the losses and negative net worth on account of settlement
of pending arbitration cases in earlier years, the management has made an assessment of its ability to continue as a
going concern. The Company is in the process of continuing with its trading operations and expected to generate profits
in coming years. Such aspects are considered by the management while preparing the financial statements, and an
assessment of an entity’s ability to continue as a going concern is made accordingly.
40. Previous year figures have been regrouped / reclassified wherever considered necessary.
For Padam Dinesh & Co. For and on behalf of Board of Directors
Chartered Accountants of Shyam Telecom limited
(Firm Regn. No: 009061N)
Sd/- Sd/- Sd/-
CA Rakesh Aggarwal Ajay Khanna Nishi Sabharwal
Partner Director Director
M. No.: 084226 DIN: 00027549 DIN: 06963293
UDIN: 24084226BKBUGV1905
Sd/- Sd/-
Vinod Raina Kirti Kesarwani
Chief Financial Officer Company Secretary
Date: 10th May, 2024
Place: New Delhi
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