1. Company overview
The Company was originally incorporated on 27th March, 2000 as Quest Softech (India) Private Limited
and subsequently, pursuant to Section 31 & Section 21 read with section 44 of Companies Act, 1956
incorporated on 18th March, 2008 as Quest Softech (India) Limited to carry on business of providing
Software and Hardware consultancy and allied services. The Company has ventured into business sales
and services related to Electric vehicle chargers and charging stations since March 2023. Name of the
Company was changed from Quest Softech (India) Limited to Ampvolts Limited from June 20, 2024.
1.1 Basis of preparation of financial statements
a) Statement of Compliance
The financial statements have been prepared in accordance with Indian Accounting Standards (Ind
AS) as 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 and other provisions of the Act to the extent notified and applicable as
well as applicable guidance note and pronouncements of the Institute of Chartered Accountants of
India (ICAI).
b) Basis of Preparation and presentation
These financial statements have been prepared on the historical cost basis, except for certain assets
and liabilities which are measured at fair values at the end of each reporting period, as explained in
the accounting policies below. Historical cost is generally based on the fair value of the consideration
given in exchange for goods and services.
The statement of financial position (including statement of changes in equity) and the statement
of profit and loss are prepared and presented in the format prescribed in Division II of Schedule
III to the Companies Act, 2013. The cash flow statement has been prepared and presented as per
the requirements of Ind AS 7 "Cash Flow Statements". The disclosure requirements with respect to
items in the balance sheet and statement of profit and loss, as prescribed in Schedule III to the Act,
are presented by way of notes forming part of accounts along with the other notes required to be
disclosed under the notified Accounting Standards.
All assets and liabilities have been classified as current or non-current as per the Company's normal
operating cycle and other criteria as set out under Ind AS and in the Schedule III to the Act. Based
on the nature of the services and their realisation in Cash and Cash Equivalents, the Company
has ascertained its operating cycle as twelve months for the purpose of current or non-current
classification of assets and liabilities.
Company's financial statements are presented in Indian Rupees (INR), which is also its functional
currency. All amounts have been rounded off to the nearest lakhs unless otherwise indicated.
c) Key Accounting Estimates and Judgements
The preparation of financial statements requires management to make judgments, estimates and
assumptions in the application of accounting policies that affect the reported balances of Assets
and Liabilities, Disclosure relating to Contingent Liabilities as at date of financial statements and
reported statement of Income and Expense for the period presented. Management believes that the
estimates used in the preparation of the financial statements are prudent and reasonable. Estimates
& underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised prospectively.
The areas involving critical estimates or judgements pertaining to investments, useful life of
property, plant and equipment including intangible asset, current tax expense and tax provisions,
recognition of deferred tax asset and Provisions and contingent liabilities. Estimates and judgements
are continually evaluated. They are based on historical experience and other factors, including
expectations of future events that may have a financial impact on the Company and that are believed
to be reasonable under the circumstances.
Impairment of Investments: The Company reviews its carrying value of investments at cost annually,
or more frequently when there is indication for impairment. If the recoverable amount is less than its
carrying amount, the impairment loss is accounted for.
Useful life of Property, Plant and Equipment including intangible asset: 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.
Taxes: The Company provides for tax considering the applicable tax regulations and based on
probable estimates.
The recognition of deferred tax assets is based on availability of sufficient taxable profits in the
Company against which such assets can be utilized.
Provisions and contingent liabilities: Provision is recognised when the Company has 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 respect of which a reliable estimate can be made. Provisions and contingent
liabilities are reviewed at each balance sheet date and adjusted to reflect the current best estimates.
d) Revenue recognition
As per Ind AS 115, Revenue from sales of Electric chargers is recognized when goods are delivered
to the Customer. Revenue from rendering of services is recognised when the performance of
agreed contractual task has been completed. Revenue from charging business is recognized as and
when charging is done by consumer. Revenue from operations is measured at the fair value of the
consideration received or receivable, taking into account contractually defined terms of payment
and excluding taxes or duties collected on behalf of the government.
Interest Income
I nterest Income from a Financial Assets is recognised on a time proportion basis using effective
interest rate method.
Dividend Income
Dividend Income is recognised when the Company's right to receive the amount has been established.
e) Property, Plant and Equipment
Property plant and equipment (PPE) are stated at cost less accumulated depreciation and impairment
losses if any. Cost includes expenditure directly attributable to the acquisition of the asset and cost
incurred for bringing the asset to its present location and condition for its intended use.
On transition to Ind AS, the Company has elected the option of fair value as deemed cost for buildings
and factory buildings as on the date of transition. Other Tangible Assets are restated retrospectively.
Gains or losses arising on retirement or disposal of property, plant and equipment are recognised in
the Statement of Profit and Loss.
Property, plant and equipment which are not ready for intended use as on the date of Balance Sheet
are disclosed as "Capital work-in-progress" and are stated at cost.
Depreciation is provided on a pro-rata basis on the straight line method based on estimated useful
life prescribed under Schedule II to the Companies Act, 2013.
Residual Value of all the Assets have been considered as NIL.
f) Intangible assets
Separately purchased intangible assets are initially measured at cost. Subsequently, intangible
assets are carried at cost less any accumulated amortisation and accumulated impairment losses, if
any. Intangible assets are amortised on a straight- line basis over the period of their expected useful
lives. The amortisation period and the amortisation method for intangible assets is reviewed at each
financial year end and adjusted prospectively, if appropriate.
g) Income Taxes
Income tax expense for the year comprises of current tax and deferred tax. Income Tax is recognised
in Statement of Profit and Loss, except to the extent that it relates to items recognised in the
comprehensive income or in equity in which case, the tax is also recognised in other comprehensive
income or equity.
Current tax is the expected tax payable/receivable on the taxable income/ loss for the year using
applicable tax rates at the Balance Sheet date, and any adjustment to taxes in respect of previous
years. Management periodically evaluates positions taken in tax return with respect to situations
in which applicable tax regulations are subject to interpretation and establishes provisions
where appropriate.
Deferred tax is recognised in respect of temporary differences between the carrying amount
of assets and liabilities for financial reporting purposes and the corresponding tax base used for
computation of taxable Income.
A deferred tax liability is recognised based on the expected manner of realisation or settlement of
the carrying amount of assets and liabilities, using tax rates enacted, or substantively enacted, by the
end of the reporting period. Deferred tax assets are recognised only to the extent that it is probable
that future taxable profits will be available against which the asset can be utilised. Deferred tax
assets are reviewed at each reporting date and reduced to the extent that it is no longer probable
that the related tax benefit will be realised.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss
(either in OCI or in equity).
MAT (Minimum Alternate Tax) is recognized as an asset only when and to the extent it is probable
evidence that the Company will pay normal income tax and will be able to utilize such credit during
the specified period. The credit available under the Act in respect of MAT paid is recognised as an
asset only when and to the extent there is convincing evidence that the company will pay normal
income-tax during the period for which the MAT credit can be carried forward for set-off against the
normal tax liability. MAT credit recognised as an asset is reviewed at each Balance Sheet date and
written-down to the extent the aforesaid convincing evidence no longer exists.
h) Foreign currency transactions
Transactions in foreign currency are recorded at the exchange rate prevailing on the date of
transactions. Net exchange gain or loss resulting in respect of foreign exchange transactions settled
during the year is recognized in the Statement of Profit and Loss.
Monetary assets and liabilities in foreign currency which are outstanding as at the year-end, are
translated at the year-end at the closing exchange rate and the resultant exchange differences are
recognized in the Statement of Profit and Loss in the year in which they arise.
Non-monetary foreign currency items are carried at cost.
i) Employee benefits
Short-term employee benefits
Employee benefits payable wholly within twelve months of availing employee service are classified
as short-term employee benefits. This benefit includes salaries and wages bonus and ex- gratia and
compensated absences. The undiscounted amount of short-term employee benefits to be paid in
exchange of employees services are recognised in the period in which the employee renders the
related service
Post employees benefits -
Defined contribution plans - A defined contribution plan is a post-employment benefit plan under
which an entity pays specified contributions to a separate entity and has no obligation to pay any
further amounts. The Company makes specified monthly contributions towards Provident Fund
and Employees State Insurance Corporation ('ESIC'). The Company's contribution is recognised as
an expense in the Statement of Profit and Loss during the period in which employee renders the
related service.
Defined benefit plans - The Company pays gratuity to the employees who have completed five
years of service with the Company at the time of resignation/ superannuation. The gratuity is paid
@15 days basic salary for every completed year of service as per the Payment of Gratuity Act, 1972.
The liability in respect of gratuity and other post-employment benefits is calculated using the
Projected Unit Credit Method and spread over the period during which the benefit is expected to
be derived from employees' services. Remeasurement gains and losses arising from adjustments
and changes in actuarial assumptions are recognised in the period in which they occur in Other
Comprehensive Income.
j) Earnings per share (EPS)
In determining Earnings per Share, the Company considers net profit after tax and includes post tax
effect of any exceptional item. Number of shares used in computing basic earnings per share is the
weighted average number of the shares outstanding during the period. Dilutive earning per share
is computed and disclosed after adjusting effect of all dilutive potential equity shares, if any except
when result will be anti - dilutive. Dilutive potential equity Shares are deemed converted as at the
beginning of the period, unless issued at a later date.
|