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Accounting Policies of SVA India Ltd. Company

Mar 31, 2014

1. Basis of Preparation of Financial Statements

The Financial Statements has-c been prepared under Historical Cost conventions and on accrual basis in accordance with the Generally Accepted Accounting Principles (''GAAP'') applicable in India, Companies (Accounting Standard) Rules, 2006 notified by Ministry of Company Affairs and Accounting Standards issued by the Institute of Chartered Accountants of India as applicable and relevant provisions of the Companies Act, 1956, as adopted consistently bv the Company except refer point no. 16 regarding accounting policy on foreign exchange transactions.

2. Use of Estimates

The preparation of Financial Statements in conformity with Indian GAAP requires estimates and assumptions to be made that affects the reported amounts of assets and liabilities on the date of the Financial Statements and the reported amounts of revenue and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period in which the results are known / materialized.

3. Fixed Assets

Fixed Assets are capitalized at cost less accumulated depreciation inclusive of purchase price, duties and other non refundable taxes, direct attributable cost of bringing asset to its working condition and financing cost till commercial production, if any.

Projects, if any, under which assets are not ready for their intended use are shown as Capital Work-in-Progress. However no project was undertaken during the year under review.

4. Depreciation / Amortization

Depreciation on fixed assets is provided on Written Down Value Method (WDV) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

5. Inventories

Finished Goods are valued at cost or net realizable value whichever is lower.

Shares held by Company as stock-in-trade is valued at cost as per consistent accounting policy decided & followed bv the management. Shares. Debentures and other Securities, purchased if any, are accounted under Stock-in-trade on trade dates. However during the year no transactions were noted.

6. Revenue Recognition

Sales are recognized when the substantial risks and rewards of ownership in the goods are transferred to buyers. Interest earned, if any, on loans is recognized on accural basis. Dividend is recognized when the right to receive the payment is established.

7. Investment

Investments are classified as Current & Non Current Investments. Current Investments are carried at lower of cost or Market / Fair Value determined on an individual investment basis. Non-Current investments are valued at cost. However no fresh Investment was made by the Company during the year.

8. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as pan of the cost of such assets. A qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use. All other borrowing costs are charged to Profit and Loss A/c.

9. Taxation

Tax expenses for the year comprise of current tax and deferred tax. Current tax is measured as amount of tax payable in respect of taxable income for current year as per Income Tax Act 1961 after considering tax allowances and exemptions, if any. Deferred Tax assets or liabilities are recognized for further tax consequence attributable to timing difference between taxable income and accounting income that originate in one year and arc capable of reversal in one or more subsequent year. Deffered Tax liability is created on account of timing difference on Depreciation as per Companies Act and Income Tax Act.

10. Leases

Operating Lease

Lease where the lesser effectively retains substantially all risks and benefits of the asset are classified as Operating lease Operating lease payments are recognized as an expense in the Profit & Loss account.

11. Impairment of Assets

An asset is impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to Protit & Loss in the year in which an asset is identified as Impaired. As on Balance Sheet date, the Company reviews the carrying amount of Fixed Assets to determine whether there are any indications that those assets lave suffered "Impairment loss".

12. Earnings per Share

In determining the Earning Per share, the company the net profit after tax which includes anv post tax effect of any extraordinary / exceptional item. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period.

The number of shares used in computing Diluted earnings per share comprises the weighted average number of shares considered for computing Basic Earnings per share and also the weighted number of equity shares that would have been issued on conversion of all poteruially dilutive shares.

13. Retirement Benefits

According to management, since the number of employees are less than mandatory limit, Company has not yet applied for registration under Provident Fund Act or ESIC Act and even not made provision for gratutity payments.

14. Segmental Reporting

Company operated only in one segment viz. Trading Activity.

15. Related Party Transactions

As per accounting standard 18 (AS-18) Related party disclosures, notified in the companies (Accounting Standards) Rules 2006, the disclosure of transactions with the related parties defined in AS-18 arc given below;

1. Key Managerial Personnel:

a) Mrs. Ranjana Gupta

b) Mr. Raghav Gupta

2. Relatives of Key Management Personnel

Name of the Relative Relation

Mr Vinod Gupta Husband of Ranjann Gupta and Father of Raghav Gupta

Mr. Abhinav Gupta Son of Ranjana Gupta and Brother of Raghav Gupta

Vinod Gupta (HUF) Hindu Undivided Family of Vinod Gupta

3. Parties where control exists

Name of the Party Nature of Control

Arkay Enclave Pvt Ltd. Common Directorship

Man gala Capital Services Pvt. Ltd. Common Directorship

Morris Properties Pvt. Ltd. Common Directorship

Parivar Realtors Pvt. Ltd. Common Directorship

Raghav Realtors Pvt. Ltd. Common Directorship

Vivek Steel Industries Pvt Ltd. Common Directorship

VRAR Properties Pvt. Ltd. Common Directorship

16. Foreign Exchange Transactions

i) Transactons in Foreign currency are recorded at the rate of exchange prevailing on the date of payment instead of on the date of the respective transactions & to this extent company has not complied with Accounting Standard on Foreign Exchange Transaction issued by ICAI.

ii) Monetary items denominated in foreign currencies at the year end are stated at rate of exchange prevailing on the date of payment instead of restating at year end rates & to this extent company has not complied with Accounting Standard on Foreign Exchange Transaction issued by ICAI.

iii) Any income or expense on account of exchange difference either on settlement or on translation is generally recognized jn the Statement of Pro fit and l oss, except in case of long term liabilities, where they relate to acquisition of fixed assets'' in which case thev are adjusted to the carrying cost of such assets. But Company has recorded transaction on payment basis only and hence there is no gain or loss & to this extent company has not complied with Accounting Standard on Foreign Exchange Transaction issued by ICAI.

17. Contingent Liabilities & Provisions

Provisions are recognized only when there is a present obligation as a result of past events 3nd when a reliable estimate of the amount of obligation can be made.

Contingent Liability is disclosed for by way of note for

a) Possible obligation which will be confirmed only by future events not wholly within the control of the Company or

b) Present obligations arising from the past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

c) Contingent Assets are not recognized in the financial statements since this may result in the recognition of income that may never be realized.


Mar 31, 2013

(A) Basis of preparation of financial statements:

The Financial Statement have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the Company.

(B) Fixed Assets & Depreciation:

Fixed Assets are stated at cost of acquisition less accumulated Depreciation.

ii) Depreciation of Fixed is provided on WDV method at the rates prescribed Schedule XIV of the Companies Act, 1956.

(C) Investments: Long-term investments are valued at cost. No adjustment is made in the carrying cost of investment as the decline and diminution has been considered of temporary nature and investments have been made on long-term basis.

(D) Inventories: Finished goods and shares held as stock in trade are valued at cost. After 31st March, 2013 it was observed that the stocks were overvalued by Rs. 25,000 and the current value of the inventory is Rs. 1,06,11,588/-.

(E)Basis of Accounting: All Income & Expenditure items having a material bearing on the financial statement ate recognized on accrual basis leave encasement, bonus are accounted on cash basis.

(F)Share Issue Expenses and preliminary Expenses: Share Issue Expenses and Preliminary Expenses are written off in equal installments every year over a period of ten years.


Mar 31, 2012

(A) Basis of preparation of Financial statements.

The Financial Statement have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act. 1956 as adopted consistently by the Company.

(B) Fixed Assets & Depreciation:

Fixed Assets are stated at cost of acquisition less accumulated Depreciation.

ii) Depreciation of Fixed is provided on WDV method at the rates prescribed Schedule XIV of the Companies Act. 1956.

(C) Investments: Long-term investments are valued at cost. No adjustment is made in the carrying cost of investment as the decline and diminution has been considered of temporary nature and investments have been made on long-term basis.

(D) Inventories: Finished goods and shares held as stock in trade are valued at cost.

(E)Basis of Accounting: All Income & Expenditure items having a material bearing on the financial statement ate recognized on accrual basis leave encasement, bonus are accounted on cash basis.

(F)Share Issue Expenses and preliminary Expenses: Share Issue Expenses and Preliminary Expenses are written off in equal installments every year over a period of ten years.


Mar 31, 2010

(A) Basis of preparation of Financial statements:

The Financial Statement have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the Company.

(B) Fixed Assets & Depreciation:

i) Fixed Assets are stated at cost of acquisition less accumulated Depreciation.

ii) Depreciation of Fixed is provided on WDV method at the rates prescribed Schedule XIV of the Companies Act, 1956.

(C) Investments: Long-term investments are valued at cost. No adjustment is made in the carrying cost of investment as the decline and diminution has been considered of temporary nature and investments have been made on long-term basis.

(D) Inventories: Finished goods and shares held as stock in trade are valued at cost.

(E) Basis of Accounting: All Income & Expenditure items having a material bearing on the financial statement ate recognized on accrual basis lesve encasement, bonus are accounted on cash basis.

(F) Share Issue Expenses and preliminary Expenses: Share Issue Expenses and Preliminary Expenses are written off in equal installments every year over a period of ten years.


Mar 31, 2009

(A) Basis of preparation of Financial statements:

The Financial Statement have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the Company.

(B) Fixed Assets & Depreciation:

i) Fixed Assets are stated at cost of acquisition less accumulated Depreciation.

ii) Depreciation of Fixed is provided on WDV method at the rates prescribed Schedule XIV of the Companies Act, 1956.

(C) Investments: Long-term investments are valued at cost. No adjustment is made in the carrying cost of investment as the decline and diminution has been considered of temporary nature and investments have been made on

(D) Inventories: Finished goods and shares held as stock in trade are valued at cost.

(E) Basis of Accounting: All Income & Expenditure items having a isaterial

(F) Share Issue Expenses and preliminary Expenses: Share Issue Expenses and PreliminaRY Expenses are written off in equal installments every year over a period often years.

 
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