Cell Point (India) Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

Note 1: Company Overview

I. Corporate Information

Cell Point (India) Limited [Formerly known as Cell Point (India) Private Limited] was incorporated as private limited Company on April 10, 2013, and registered under The Companies Act, 2013. Company was converted into Public Limited Company and consequently name of the company was changed from Cell Point (India) Private Limited to Cell Point (India) Limited vide special resolution passed by the shareholders at the Extraordinary General Meeting held on October 31, 2022, and a revised certificate of incorporation dated November 25, 2022, issued by the Registrar of Companies, Vijayawada. The company is engaged in the business of Trading in smart phones, accessories, related products, and other consumer durable electronic goods.

II. Basis of preparation of Financial Statements

These financial statements are prepared in conformity with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory Accounting Standards as prescribed under Section 133 of the Companies Act, 2013(''the Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014, provision of the Act (to the extent notified). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

The Company had completed a Fresh Issue of 50,34,000 Equity Shares by Initial Public Offer (“IPO”) with a face value of t 10.00 each at an issue price of t 100.00 each aggregating to t 5,034.00 Lakhs. Pursuant to the IPO, the Equity shares of the Company were listed on the Emerge Platform of National Stock Exchange of India Limited (“Emerge Platform of NSE”) w.e.f. June 28, 2023.

III. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting year end. Although, these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

IV. Operating Cycle

Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realization in cash or cash equivalents, 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.

Note 2: Summary of Significant Accounting Policies

I. Property, Plant and Equipment

(i) Items of Property, Plant and Equipment are measured at cost, which includes capitalised borrowing costs, less accumulated depreciation, goods and service tax (to the extent not availed as input credit) and accumulated impairment loss, if any. Cost includes duties, freight and other incidental expenses directly related to acquisition / construction and installation of the assets. Any trade discounts, and rebates are deducted in arriving at the purchase price.

(ii) An item of Property, Plant and Equipment is eliminated from the financial statements on disposal or when no further benefit is expected from its use and disposal. Gains / losses arising from disposal are recognised in the Statement of Profit and Loss.

(iii) Depreciation on fixed assets is provided on Straight line Method in accordance with requirements of Schedule II to the Companies Act,2013. Depreciation for assets purchased / sold during a period is proportionately charged (refer note 3.9(6) for change in accounting policy)

II. Inventories

Inventories include only traded finished goods and are valued on the principle laid down in Accounting Standard 2 on “Inventories” on the basis of "Lower of cost and net realizable value.

III. Revenue Recognition

The Company''s revenue primarily comprises of Multi brand Retail selling of smart phones, accessories, related products and other consumer durable electronic goods.

Revenue on sale of goods is recognized when property in the goods is transferred to the buyer for a price, or when all significant risks and rewards of ownership have been transferred to the buyer and no effective control is retained by the Company in respect of the goods transferred, to a degree usually associated with ownership, and no significant uncertainty exists regarding the amount of consideration that will be derived from the sale of goods

Dividend income is recognized when the unconditional right to receive the income is established.

Revenue from interest and rent is recognized on a time proportion basis taking into account the value outstanding, the period and rate applicable.

IV. Foreign Currency Transactions

Foreign currency transactions are recorded at the rates prevailing at the date of transaction. Monetary items denominated in foreign currencies at the year-end are translated at the year-end rates. Any exchange differences arising on settlement/transaction are dealt with in the statement of profit and loss.

V. Taxes on Income

The current income tax charge is determined in accordance with the relevant tax regulations applicable to the Company.

Deferred tax is recognized on timing differences between taxable and accounting income / expenditure that originates in one period and are capable of reversal in one or more subsequent periods. Deferred Tax Asset is recognized on the basis of virtual / reasonable certainty about its realizability, as applicable. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted by the balance sheet date.

VI. Employee Benefits

(i) Short-term Benefits

All employee benefits falling due within twelve months of rendering the service are classified as shortterm employee benefits. The cost of the benefits like salaries, wages, bonus, exgratia, etc. is recognised as an expense in the period in which the employee renders the related service.

(ii) Post-Employment Benefits

A) Defined contribution plans:

The contribution paid/payable under provident fund scheme and ESI scheme is recognised as expenditure in the period in which the employee renders the related service.

B) Defined benefit plans:

A post-retirement obligation towards gratuity is a defined benefit plan. The Company provides for Gratuity, in respect of eligible employees under a Gratuity Scheme. On the reporting date, liabilities with respect to gratuity plan as determined by an independent actuarial valuation and actuarial gains/losses are charged to the Statement of Profit and Loss Account. The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as liability and as per the requirements of AS 15 (Revised 2005).

VII. Borrowing Costs

Borrowing costs directly attributable to acquisition or construction of Property, Plant & Equipment which necessarily take substantial period of time to get ready for their intended use are capitalized. Other borrowing costs are charged to profit and loss account.

VIII. Earnings per Share (EPS)

Basic EPS is computed by dividing the profit after tax attributable to equity shareholders by the weighted average number of Equity Shares outstanding during the year / period.

Diluted EPS is computed by dividing the profit after tax attributable to equity shareholders, as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential Equity Shares, by the Weighted Average number of Equity Shares considered for deriving basic EPS and the weighted average number of Equity Shares which could have been issued on the conversion of all dilutive potential Equity Shares.

IX. Impairment of Assets

Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the assets and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of asset in an arm''s length transaction between knowledgeable, willing parties, less the cost of disposal.

X. 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 the notes after careful evaluation by the management of the facts and legal aspects of the matters involved. Contingent Assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2024

Note 2: Summary of Significant Accounting Policies

I. Property, Plant and Equipment

(i) Items of Property, Plant and Equipment are measured at cost, which includes capitalised borrowing costs, less accumulated depreciation, goods and service tax (to the extent not availed as input credit) and accumulated impairment loss, if any. Cost includes duties, freight and other incidental expenses directly related to acquisition / construction and installation of the assets. Any trade discounts, and rebates are deducted in arriving at the purchase price.

(ii) An item of Property, Plant and Equipment is eliminated from the financial statements on disposal or when no further benefit is expected from its use and disposal. Gains / losses arising from disposal are recognised in the Statement of Profit and Loss.

(iii) Depreciation is provided on Written down Value Method over the useful life of the assets at the rates and in the manner prescribed under part "C” of Schedule II of the Companies Act, 2013. Depreciation for assets purchased / sold during a period is proportionately charged.

II. Inventories

Inventories include only traded finished goods and are valued on the principle laid down in Accounting Standard 2 on "Inventories” on the basis of "Lower of cost and net realizable value.

III. Revenue Recognition

The Company’s revenue primarily comprises of Multi brand Retail selling of smart phones, accessories, related products and other consumer durable electronic goods.

Revenue on sale of goods is recognized when property in the goods is transferred to the buyer for a price, or when all significant risks and rewards of ownership have been transferred to the buyer and no effective control is retained by the Company in respect of the goods transferred, to a degree usually associated with ownership, and no significant uncertainty exists regarding the amount of consideration that will be derived from the sale of goods

Dividend income is recognized when the unconditional right to receive the income is established.

Revenue from interest and rent is recognized on a time proportion basis taking into account the value outstanding, the period and rate applicable.

IV. Foreign Currency Transactions

Foreign currency transactions are recorded at the rates prevailing at the date of transaction. Monetary items denominated in foreign currencies at the year-end are translated at the year-end rates. Any exchange differences arising on settlement/transaction are dealt with in the statement of profit and loss.

V. Taxes on Income

The current income tax charge is determined in accordance with the relevant tax regulations applicable to the Company.

Deferred tax is recognized on timing differences between taxable and accounting income / expenditure that originates in one period and are capable of reversal in one or more subsequent periods. Deferred Tax Asset is recognized on the basis of virtual / reasonable certainty about its realizability, as applicable. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted by the balance sheet date.

VI. Employee Benefits

(i) Short-term Benefits

All employee benefits falling due within twelve months of rendering the service are classified as short-term employee benefits. The cost of the benefits like salaries, wages, bonus, exgratia, etc. is recognised as an expense in the period in which the employee renders the related service.

(ii) Post-Employment Benefits

A) Defined contribution plans:

The contribution paid/payable under provident fund scheme and ESI scheme is recognised as expenditure in the period in which the employee renders the related service.

B) Defined benefit plans:

A post-retirement obligation towards gratuity is a defined benefit plan. The Company provides for Gratuity, in respect of eligible employees under a Gratuity Scheme. On the reporting date, liabilities with respect to gratuity plan as determined by an independent actuarial valuation and actuarial gains/losses are charged to the Statement of Profit and Loss Account. The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as liability and as per the requirements of AS 15 (Revised 2005).

VII. Borrowing Costs

Borrowing costs directly attributable to acquisition or construction of Property, Plant & Equipment which necessarily take substantial period of time to get ready for their intended use are capitalized. Other borrowing costs are charged to profit and loss account.

VIII. Earnings per Share (EPS)

Basic EPS is computed by dividing the profit after tax attributable to equity shareholders by the weighted average number of Equity Shares outstanding during the year / period.

Diluted EPS is computed by dividing the profit after tax attributable to equity shareholders, as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential Equity Shares, by the Weighted Average number of Equity Shares considered for deriving basic EPS and the weighted average number of Equity Shares which could have been issued on the conversion of all dilutive potential Equity Shares.

IX. Impairment of Assets

Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the assets and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of asset in an arm''s length transaction between knowledgeable, willing parties, less the cost of disposal.

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Mar 31, 2023

Note 2: Summary of Significant Accounting Policies

I. Property, Plant and Equipment

(i) Items of Property, Plant and Equipment are measured at cost, which includes capitalised borrowing costs, less accumulated depreciation, goods and service tax (to the extent not availed as input credit) and accumulated impairment loss, if any. Cost includes duties, freight and other incidental expenses directly related to acquisition / construction and installation of the assets. Any trade discounts, and rebates are deducted in arriving at the purchase price.

(ii) An item of Property, Plant and Equipment is eliminated from the financial statements on disposal or when no further benefit is expected from its use and disposal. Gains / losses arising from disposal are recognised in the Statement of Profit and Loss.

(iii) Depreciation is provided on Written down Value Method over the useful life of the assets at the rates and in the manner prescribed under part “C" of Schedule II of the Companies Act, 2013. Depreciation for assets purchased / sold during a period is proportionately charged.

II. Inventories

Inventories include only traded finished goods and are valued on the principle laid down in Accounting Standard 2 on “Inventories" on the basis of "Lower of cost and net realizable value.

III. Revenue Recognition

The Company''s revenue primarily comprises of Multi brand Retail selling of smart phones, accessories, related products and other consumer durable electronic goods.

Revenue on sale of goods is recognized when property in the goods is transferred to the buyer for a price, or when all significant risks and rewards of ownership have been transferred to the buyer and no effective control is retained by the Company in respect of the goods transferred, to a degree usually associated with ownership, and no significant uncertainty exists regarding the amount of consideration that will be derived from the sale of goods

Dividend income is recognized when the unconditional right to receive the income is established.

Revenue from interest and rent is recognized on a time proportion basis taking into account the value outstanding, the period and rate applicable.

IV. Foreign Currency Transactions

Foreign currency transactions are recorded at the rates prevailing at the date of transaction. Monetary items denominated in foreign currencies at the year-end are translated at the year-end rates. Any

exchange differences arising on settlement/transaction are dealt with in the statement of profit and loss.

V. Taxes on Income

The current income tax charge is determined in accordance with the relevant tax regulations applicable to the Company.

Deferred tax is recognized on timing differences between taxable and accounting income / expenditure that originates in one period and are capable of reversal in one or more subsequent periods. Deferred Tax Asset is recognized on the basis of virtual / reasonable certainty about its realizability, as applicable. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted by the balance sheet date.

VI. Employee Benefits

(i) Short-term Benefits

All employee benefits falling due within twelve months of rendering the service are classified as short-term employee benefits. The cost of the benefits like salaries, wages, bonus, exgratia, etc. is recognised as an expense in the period in which the employee renders the related service.

(ii) Post-Employment Benefits

A) Defined contribution plans:

The contribution paid/payable under provident fund scheme and ESI scheme is recognised as expenditure in the period in which the employee renders the related service.

B) Defined benefit plans:

A post-retirement obligation towards gratuity is a defined benefit plan. The Company provides for Gratuity, in respect of eligible employees under a Gratuity Scheme. On the reporting date, liabilities with respect to gratuity plan as determined by an independent actuarial valuation and actuarial gains/losses are charged to the Statement of Profit and Loss Account. The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as liability and as per the requirements of AS15 (Revised 2005).

VII. Borrowing Costs

Borrowing costs directly attributable to acquisition or construction of Property, Plant & Equipment which necessarily take substantial period of time to get ready for their intended use are capitalized. Other borrowing costs are charged to profit and loss account.

VIII. Earnings per Share (EPS)

Basic EPS is computed by dividing the profit after tax attributable to equity shareholders by the weighted average number of Equity Shares outstanding during the year / period.

Diluted EPS is computed by dividing the profit after tax attributable to equity shareholders, as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential Equity Shares, by the Weighted Average number of Equity Shares considered for deriving basic EPS and the weighted average number of Equity Shares which could have been issued on the conversion of all dilutive potential Equity Shares.

IX. Impairment of Assets

Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the assets and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of asset in an arm''s length transaction between knowledgeable, willing parties, less the cost of disposal.

Note 2: Summary of Significant Accounting Policies

I. Property, Plant and Equipment

(i) Items of Property, Plant and Equipment are measured at cost, which includes capitalised borrowing costs, less accumulated depreciation, goods and service tax (to the extent not availed as input credit) and accumulated impairment loss, if any. Cost includes duties, freight and other incidental expenses directly related to acquisition / construction and installation of the assets. Any trade discounts, and rebates are deducted in arriving at the purchase price.

(ii) An item of Property, Plant and Equipment is eliminated from the financial statements on disposal or when no further benefit is expected from its use and disposal. Gains / losses arising from disposal are recognised in the Statement of Profit and Loss.

(iii) Depreciation is provided on Written down Value Method over the useful life of the assets at the rates and in the manner prescribed under part “C" of Schedule II of the Companies Act, 2013. Depreciation for assets purchased / sold during a period is proportionately charged.

II. Inventories

Inventories include only traded finished goods and are valued on the principle laid down in Accounting Standard 2 on “Inventories" on the basis of "Lower of cost and net realizable value.

III. Revenue Recognition

The Company''s revenue primarily comprises of Multi brand Retail selling of smart phones, accessories, related products and other consumer durable electronic goods.

Revenue on sale of goods is recognized when property in the goods is transferred to the buyer for a price, or when all significant risks and rewards of ownership have been transferred to the buyer and no effective control is retained by the Company in respect of the goods transferred, to a degree usually associated with ownership, and no significant uncertainty exists regarding the amount of consideration that will be derived from the sale of goods

Dividend income is recognized when the unconditional right to receive the income is established.

Revenue from interest and rent is recognized on a time proportion basis taking into account the value outstanding, the period and rate applicable.

IV. Foreign Currency Transactions

Foreign currency transactions are recorded at the rates prevailing at the date of transaction. Monetary items denominated in foreign currencies at the year-end are translated at the year-end rates. Any

exchange differences arising on settlement/transaction are dealt with in the statement of profit and loss.

V. Taxes on Income

The current income tax charge is determined in accordance with the relevant tax regulations applicable to the Company.

Deferred tax is recognized on timing differences between taxable and accounting income / expenditure that originates in one period and are capable of reversal in one or more subsequent periods. Deferred Tax Asset is recognized on the basis of virtual / reasonable certainty about its realizability, as applicable. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted by the balance sheet date.

VI. Employee Benefits

(i) Short-term Benefits

All employee benefits falling due within twelve months of rendering the service are classified as short-term employee benefits. The cost of the benefits like salaries, wages, bonus, exgratia, etc. is recognised as an expense in the period in which the employee renders the related service.

(ii) Post-Employment Benefits

A) Defined contribution plans:

The contribution paid/payable under provident fund scheme and ESI scheme is recognised as expenditure in the period in which the employee renders the related service.

B) Defined benefit plans:

A post-retirement obligation towards gratuity is a defined benefit plan. The Company provides for Gratuity, in respect of eligible employees under a Gratuity Scheme. On the reporting date, liabilities with respect to gratuity plan as determined by an independent actuarial valuation and actuarial gains/losses are charged to the Statement of Profit and Loss Account. The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as liability and as per the requirements of AS15 (Revised 2005).

VII. Borrowing Costs

Borrowing costs directly attributable to acquisition or construction of Property, Plant & Equipment which necessarily take substantial period of time to get ready for their intended use are capitalized. Other borrowing costs are charged to profit and loss account.

VIII. Earnings per Share (EPS)

Basic EPS is computed by dividing the profit after tax attributable to equity shareholders by the weighted average number of Equity Shares outstanding during the year / period.

Diluted EPS is computed by dividing the profit after tax attributable to equity shareholders, as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential Equity Shares, by the Weighted Average number of Equity Shares considered for deriving basic EPS and the weighted average number of Equity Shares which could have been issued on the conversion of all dilutive potential Equity Shares.

IX. Impairment of Assets

Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the assets and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of asset in an arm''s length transaction between knowledgeable, willing parties, less the cost of disposal.