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Accounting Policies of CG-VAK Software & Exports Ltd. Company

Mar 31, 2015

Foreign Currency Transaction: monetary assets are translated at the exchange rates prevailing on the date of Revenu

Revenue fom contracts priced on time are recognised when the services are rendered and related costs are b Intees ed. receipts are recognised on time proportion basis taking into account the amount outstanding and c DMapp nd icab recognised when the right to receive payment is established.

a Other short term employee benefits

The amount of short term employee benefits expected to be paid in exchange of services rendered by the employee is recognised during the period in which the service is rendered. The benefits include performance incentive.

b Segment Reporting

The Company's main business is providing of software services. There are no separate reportable segments as per Accounting Standard 17 (AS 17). Secondary segmental reporting is based on geographical location of customer and assets.

c Derivative Instruments and hedge accounting

Forwarding Exchange Contracts enterend int hedging foreign currency risk of an existing asset or liability. The premium or discount arising at the inception of forward exchange contract is amortized and recognized as an expense/ income over the life of the contract. Exchange difference on such contract, except the contracts which are long term foreign currency monetary item, are recognized in the statement of profit & loss in the period in which the exchange rate change. Any Profit or Loss arising on cancellation or renewal of such forward exchange contract is also recognised as income or as expense for the period.

d The Managing Director & Executive Chairman have given their personal guarantee for the Term loan and cash credit facilities availed from State Bank of India.


Mar 31, 2014

I Basis of Preparation of financial Statements

The financial statements have been prepared to comply with Accounting Principles generally accepted in India, the Accounting Standards notified under the Companies (Accounting Standard Rules) 2006 and the relevant provisions of the Companies Act, 1956.

ii Fixed Assets:

a Tangible Assets

Fixed assets are stated at cost less accumulated depreciation and impairment loss, if any. The carrying amount of assets are reviewed at each balance sheet date if there is an indication of impairment based on internal/external factors. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The reduction is treated as impairment loss and recognised in the statement of Profit & Loss account. b Intangible Assets

Intangible assets are stated at cost less accumulated depreciation. The costs consists of purchase cost and any other cost directly attributable to bringing the assets to its working condition for its intended use. Subsequent expenditure incurred in relation to an item of intangible asset are added to its book value only if they increase the future benefits from the existing asset beyond the previously assessed standard of performance.

iii Investments:

Investments held are all long term based on Management''s intention at the time of purchase.

Cost of overseas investments comprise of Indian rupee value of consideration paid for the investment translated at the exchange rate prevailing at the date of investment.

iv Foreign Currency Transaction:

a Foreign currency denominated monetary assets are translated at the exchange rates prevailing on the date of the balance sheet.

b Monetary items denominated in foreign currency at the year end are restated at year end rates.

c Non Monetary item foreign currency items are stated at cost.

d Items of revenue and expenditure are translated at the rates prevailing on the date ofthe transaction.

The resultant differences are recognised in the Statement of Profit & Loss account.

v Revenue recognition:

a Revenue from contracts priced on time are recognised when the services are rendered and related costs are incurred.

b Interest receipts are recognised on time proportion basis taking into account the amount outstanding and rate applicable.

c Dividend is recognised when the right to receive payment is established.

vi Depreciation

Depreciation is charged on Straight Line method as per the rates prescribed. Pro rata depreciation is charged on additions during the year

vii Taxation

a Current Tax expense comprise of tax on income from Indian and overseas operations. Income tax payable is determined as per the provisions of the Indian Income tax Act, 1961. Minimum Alternative Tax (MAT) paid which gives rise to future economic benefits in the form of adjustment of future tax liability is considered as an asset.

b Deferred Tax expense is recognised on timing difference being the difference between taxable and accounting income that originate in one period to be reversed in one or more subsequent periods. Deferred tax liability or asset are determined at the rates prevailing at the balance sheet date.

viii Employee benefits

a Provident fund

Provident fund contributions are as per the rates prescribed by the Employees Provident fund act and the same is charged to the profit & loss account

b Gratuity

The expenditure is recognised based on present value of obligation as determined in accordance with AS 15 on Employee benefits c Other short term employee benefits

The amount of short term employee benefits expected to be paid in exchange of services rendered by the employee is recognised during the period in which the service is rendered. The benefits include performance incentive. ix Derivative Instruments and hedge accounting

Forwarding exchange Contracts enterend int hedging foreign currency risk of an existing asset or liability. The premium or discount arising at the inception of forward exchange contract is amortized and recognised as an expense/ income over the life of the contract. Exchange difference on such contract, except the contracts which are long term foreign currency monetary item, are recognized in the statement of profit & loss in the period in which the exchange rate change. Any Profit or Loss arising on cancellation or renewal of such forward exchange contract is also recognised as income or as expense for the period.


Mar 31, 2013

A Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation. The carrying amount of assets are reviewed at each balance sheet date if there is an indication of impairment based on internal/external factors. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The reduction is treated as impairment loss and recognised in the statement of profit & loss account.

b Investments:

Investments held are all long term based on Management''s intention at the time of purchase. Cost of overseas investments comprise of Indian rupee value of consideration paid for the investment translated at the exchange rate prevailing at the date of investment.

c Current Assets:

Trade Receivables are stated at net realisable value

d Income recognition:

Revenue from software development services, products are recognised when services are recognised on completion of contract or stage of completion as per applicable terms and conditions agreed with customers. Revenue from contacts priced on time are recognised when services are rendered and related costs incurred.

e Foreign Currency Transaction:

Foreign currency denominated monetary assets are translated at the exchange rates prevailing on the date of the balance sheet. Items of revenue and expenditure are translated at the rates prevailing on the date of the transaction. The resultant differences are recognised in the Statement of Profit & Loss account.

f Retirement Benefits

Company provides for gratuity for eligible employees determined by actuarial valuation.

g Forward Contracts in foreign currencies

The company uses forward contracts to hedge its exposure to movements in foreign exchange rates. The use of these forward contracts reduce the risk or cost of the company and not used for speculative or trading purposes.


Mar 31, 2012

A Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation. The carrying amount of assets are reviewed at each balance sheet date if there is an indication of impairment based on internal/external factors. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The reduction is treated as impairment loss and recognised in the statement of profit & loss account.

b Investments:

Investments held are all long term based on Management's intention at the time of purchase. Cost of overseas investments comprise of Indian rupee value of consideration paid for the investment translated at the exchange rate prevailing at the date of investment.

c Current Assets:

Trade Receivables are stated at net realisable value

d Income recognition:

Revenue from software development services, products are recognised when services are recognised on completion of contract or stage of completion as per applicable terms and conditions agreed with customers. Revenue from contacts priced on time are recognised when services are rendered and related costs incurred.

e Foreign Currency Transaction:

Foreign currency denominated monetary assets are translated at the exchange rates prevailing on the date of the balance sheet. Items of revenue and expenditure are translated at the rates prevailing on the date of the transaction. The resultant differences are recognised in the Statement of Profit & Loss account.

f Retirement Benefits

Company provides for gratuity for eligible employees determined by actuarial valuation.

g Forward Contracts in foreign currencies

The company uses forward contracts to hedge its exposure to movements in foreign exchange rates. The use of these forward contracts reduce the risk or cost of the company and not used for speculative or trading purposes.


Mar 31, 2011

Fixed Assets:

Fixed assets are stated at cost of acquisition less accumulated depreciation. The carrying amounts of assets are reviewed at each balance sheet date if there is an indication of impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The reduction is treated as impairment loss and is recognised in the profit & loss account.

Investments:

Investments are stated at cost. Investments in shares of fully owned foreign subsidiary are stated at cost and expressed in Indian rupees at the rate of exchange prevailing at the time of actual remittance.

Current Assets:

Debtors: Debtors are stated at net realizable value.

Revenue Recognition:

Items of Income & Expenditure are recognised on accrual basis. Revenue from software development, Services & Products are recognized on completion of contract or stage of completion as per the applicable terms & conditions agreed with customers.

Depreciation:

Depreciation is charged on Straight line method as per rates specified in Schedule XIV of the Companies Act, 1956. Depreciation has been calculated on prorata basis on additions during the year.

Foreign Currency transactions:

Income from Software Development, Services & products and expenses are recorded at rates prevailing on the date of the transaction. Expenses incurred in foreign currency are recorded at rates prevailing when the expenditure was incurred. The foreign exchange difference which have arisen during the year have been recognised in the period in which they arise.

Monetary Current Assets & Current Liabilities that are denominated in foreign currency are translated at the exchange rate prevalent as at the date of the balance sheet. The resultant difference is recognised in the Profit & Loss Account.




Mar 31, 2010

Fixed Assets:

Fixed assets are stated at cost of acquisition less accumulated depreciation. The carrying amounts of assets are reviewed at each balance sheet date if there is an indication of impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The reduction is treated as impairment loss and is recognised in the profit & loss account.

Investments:

Investments are stated at cost. Investments in shares of fully owned foreign subsidiary are stated at cost and expressed in Indian rupees at the rate of exchange prevailing at the time of actual remittance.

Current Assets:

Debtors: Debtors are stated at net realizable value.

Revenue Recognition:

Items of Income & Expenditure are recognised on accrual basis. Revenue from software development, Services & Products are recognized on completion of contract or stage of completion as per the applicable terms & conditions agreed with customers.

Depreciation:

Depreciation is charged on Straight line method as per rates specified in Schedule XIV of The Companies Act, 1956. Depreciation has been calculated on prorata basis on additions during the year.

Foreign Currency transactions:

Income from Software Development, Services & products and expenses are recorded at rates prevailing on the date of the transaction. Expenses incurred in foreign currency are recorded at rates prevailing when the expenditure was incurred. The foreign exchange difference which have arisen during the year have been recognised in the period in which they arise.

Monetary Current Assets & Current Liabilities that are denominated in foreign currency are translated at the exchange rate prevalent as at the date of the balance sheet. The resultant difference i s recognised in the Profit & Loss Account.

 
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