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Accounting Policies of Svam Software Ltd. Company

Mar 31, 2014

I) Basis of Accounting:

The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956 and wherever applicable as per the provisions of the Companies Act, 2013.

ii) Use of Estimates:

The preparation of financial statements requires estimates and assumptions to be made based on the current working that affect the reported amount of assets and liabilities (including contingent liabilities) on the date of financial statements and the reported amount of revenues and expenses for the reporting period. Difference between the actual and the estimates, if any, are accounted for in the period in which such differences are known/materialized.

iii) Fixed Assets:

Fixed assets are stated at its purchase price including direct expenses, finance cost till it is put to use net of recoverable taxes. If the fixed assets are revalued then they are stated at revalued amount. Accumulated depreciation, impairment loss, if any, is reduced from the fixed assets and shown under the net asset value on the reporting date. The cost including additions, improvements, renewals, revalued amount and accumulated depreciation of assets which are sold and/or discarded and/or impaired, are removed from the fixed assets and any profit or loss resulting there from is included in the Statement of Profit & Loss and the residual value of the revalued amount is withdrawn from such reserves created for the purpose.

iv) Depreciation and Amortization:

Depreciation is provided on assets according to Written down Value method at the rates prescribed in the Companies Act, 1956. Depreciation of the assets added / disposed off / impaired during the year is provided on pro-rata basis.

v) Impairment of Assets:

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value being higher of value in use and net selling price. Value in use is computed at net present value of cash flow expected over the balance useful life of the assets. An impairment loss is recognized as an expense in the Statement of Profit & Loss in the year in which an asset is identified as impaired. In case of impaired revalued assets, the impaired loss on the residual value is withdrawn from such reserves created for the purpose. The impairment loss recognized in earlier accounting period is reversed if there has been an improvement in recoverable amount.

vi) Foreign Currency Transactions:

a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.

b) Year-end balance of assets and liabilities in foreign currencies are translated at the year-end rates and difference between year-end balance and such restated balance are dealt in under Exchange rate difference in the profit and loss statement.

c) The difference arising out of the actual settlement on realization / payment are dealt with in the Statement of Profit & Loss under Exchange Rate Difference arising on such transactions.

vii) Related Party Disclosure:

In accordance with the requirements of Accounting Standards (AS) - 18 on Related Party Disclosures, the names of the related parties where control exists and/or with whom transactions have taken place during the year and descriptions of relationships, as identified and certified by the management, are:

Key Management Personnel

1. Key Managerial Person

* Mr. Rajeev Garg

* Mr.Harshwardhan M. Koshal

* Mr. Sudhir Kumar Agarwal

* Mr. Neeraj Khetarpal

* Mrs. Manisha Agarwal

2. Subsidiary

* Apron Estates Limited

* Deby Exim Limited

* Phoebe Infotech Limited

As informed by the management there was no related party transactions made during the year.

viii) Investments:

Investments wherever readily realizable and intended to be held not more than one year from the date of such investments are made, are qualified as current investments. Current investments are carried at lower of cost and quoted/fair value, computed category-wise. Long-term investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

ix) Inventories:

Items of inventories such as raw materials and Stock-in-Trade, Finished Goods are measured at lower of cost or net realizable value after providing for obsolescence if any. Work-in-progress is valued at estimated cost and stocks & spare parts, dyes & chemicals, packing materials etc. are valued at cost. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them in their present condition. Cost of raw materials, stock in process, stock in trade and finished goods are determined on average cost basis.

x) Revenue Recognition:

Revenue is recognized only when it can be definitely measured and it is reasonable to expect final collection. Revenue from operations includes sale of goods after adjustment of discounts (net) and return of goods. Export benefit entitlement to the Company under Drawback, DEPB, DFIA is recognized in the year of export on accrual basis wherever it is ascertainable with reasonable accuracy. Dividend income is recognized on actual receipt basis. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

xi) Employee Benefits:

a) Short-term Employee Benefits

Short-term Employee Benefits (i.e. benefits payable within one year) are recognized in the period in which employee services are rendered.

b) Post-employment Benefits Defined Contribution Plans

Contributions towards provident funds are recognized as expense. Provident fund contributions in respect of certain employees are made to Trust administered by the Company, the interest rate payable to the members of the Trust is not lower than the rate of interest declared annually by the Central Government under the Employees'' Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall if any, is made good by the Company. The remaining provident fund contributions are made to government administered provident fund towards which the Company has no further obligations beyond its monthly contributions.

xii) Borrowing Cost:

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of that asset. Other borrowing costs are recognized as an expense in the period in which they are incurred. Capitalization of borrowing costs ceases when the qualifying asset is ready for intended use.

xiii) Deferred Taxation:

Deferred Taxation is provided using the liability method in respect of taxation effect arising from material timing difference between the accounting and tax treatment of Income & Expenditure based on tax rates prevailing at the time of Balance Sheet date. Deferred Taxation so provided is reviewed at each Balance Sheet date for necessary adjustments.

xiv) Earning per Share:

Basic earning per share is calculated by dividing the net Profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

Diluted earning per share is calculated by dividing the net profit attributable to equity shareholders by weighted average number of equity shares outstanding during the year after adjusting for the effects of dilutive options.

xv) Events occurring after Balance Sheet Date:

Events occurring after the balance sheet date have been considered in the preparation of financial statements.

xvi) Contingent Liabilities:

Unprovided liabilities of contingent nature are disclosed in the accounts by way of notes giving nature and quantum of such liabilities.

xvii) Research & Development Expenditure:

a) Capital Expenditure is included in Fixed Assets & Capital Work-in-Progress and depreciation is provided at the respective applicable rates.

b) Revenue Expenditure is charged in the year in which they are incurred.

xviii) Cash Flow Statement:

The Company adopts the Indirect Method in preparation of Cash Flow Statement. For the purpose of Cash Flow Statement Cash & Cash equivalents consists of Cash on Hand, Cash at Bank.


Mar 31, 2013

1. Basis of preparation of Financial statements :

(i) The financial statements 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. There is no change in the accounting policies as compared to the preceding year.

(ii) The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis, if determinable.

2. (i) Fixed Assets:

Fixed Assets are stated at their original cost less accumulated depreciation. Cost includes duties, taxes and expenses incidental to acquisition and installation.

(ii) Depreciation:

In respect of Fixed Assets, depreciation is provided Block wise on Straight Line Method in accordance with the provisions of schedule XIV of the Companies Act, 1956.

3. Inventory:

Inventory of closing stocks held by the concern is valued at lower of the cost price or net realizable value. Cost is determined on FIFO Method. Cost comprises all cost of conversion and other costs incurred in bringing the inventories to their present location & condition.

4. Cash Flow Statement:

(a) The statement has been prepared under indirect method except in case of dividends, sale / purchase of investments and taxes which have been considered on the basis of actual movement of case, with corresponding adjustments in assets and liabilities as set out in the Accounting Standard (AS) 3 issued by ICAI.

(b) Cash and Cash equivalents represent cash and bank balances only.

5. Foreign Currency Transactions

Foreign currency transactions have been translated at exchange rate prevailing on the date of transaction. At the balance sheet date, monetary assets and liabilities denominated in foreign currency are reported using the closing rates.

Exchange differences arises on foreign currency transaction are recognized as income or expense in the profit & loss account.

6. 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. Contingent Assets are neither recognized nor disclosed in the financial statements.

7. Revenue Recognition :

(i) The company recognizes sale of product when they are invoiced to customer excluding sales tax / Vat and trade discount.

(ii) Revenue in respect of other income is recognized when no significant uncertainty as to its determination or realization exists.

8. Retirement Benefits

There is no amount of gratuity liability or leave encashment or any other retirement benefits for which the company may be made liable to pay. Hence no provision for the same has been made as on the date of Balance sheet.

9. Impairment of Asset

Wherever events or changes in circumstances indicate that the carrying value of fixed assets may be impaired, the company subjects such assets to a test of recoverability, based on discounted cash flows expected from use or disposal thereof. If the assets are impaired, the company recognizes an impairment loss as a difference between the carrying value and fair value net of cost of sale in accordance with AS-28 "Impairment of Assets", issued by the Institute of Chartered Accountants Of India. None of the company''s fixed assets are considered for impairment as on the balance sheet date.

10. Prior Period Expenses

Prior Period expenses, if any significant, are charged to prior period ex-pense Account. Similarly extraordinary items, if any significant, are shown separately in the accounts statements.

11. Borrowing Costs:

(i) Borrowing costs are recognized as an expense in the period in which they are incurred.

(ii) The concern does not have any qualifying asset from the viewpoint of capitalization of borrowing costs. Hence no borrowing cost is capitalized.

12. Intangible Assets:

(i) The concern does not have an intangible asset from which any probable future economic benefit will flow to it.

(ii) Expenditure on an intangible item other than in (i) above is rec-ognized as an expense when it is incurred.

13. Taxation:

a) Current Tax:

Tax on income for the current period is determined on the basis of taxable income and applicable tax rate computed in accordance with the provisions of the Income Tax Act, 1961.

b) Deferred Tax:

i. The company has accounted for deferred tax in accordance with the Accounting Standard 22 "Accounting for taxes on income" issued by Council of ICAI. Accordingly, deferred tax for the year is recognized on timing difference, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

ii. Deferred Tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

iii. Deferred Tax assets are recognized and carried forward only if there is a reasonable/virtual certainty of its realization.

14. Related Party Disclosure:

In accordance with the requirements of Accounting Standards (AS) - 18 on Related Party Disclosures, the names of the related parties where control exists and/or with whom transactions have taken place during the year and descriptions of relationships, as identified and certified by the management, are:

I. Key Management Personnel

- Mr. Rajeev Garg (Managing Director & Executive)

- Mr.Harshwardhan M. Koshal (Non Executive & Independent)

- Mr. Sudhir Kumar Agarwal (Non Executive & Non Independent)

- Mr. Neeraj Khetarpal (Non Executive & Independent)

II. As informed by the management there was no related party transactions made during the year.

15. Other Accounting Policies

Accounting policies not referred to otherwise are consistent with generally accepted accounting principles.


Mar 31, 2012

1. Basis of preparation of Financial statements :

(i) The financial statements 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. There is no change in the accounting policies as compared to the preceding year.

iii) The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis, if determinable.

2. (i) Fixed Assets:

Fixed Assets are stated at their original cost less accumulated depreciation. Cost includes duties, taxes and expenses incidental to acquisition and installation.

(ii) Depreciation:

In respect of Fixed Assets, depreciation is provided Block wise on Straight Line Method in accordance with the provisions of schedule XIV of the Companies Act, 1956,

3. Inventory:

Inventory of closing stocks held by the concern is valued at lower of the cost price or net realizable value. Cost is determined on FIFO Method. Cost comprises all cost of conversion and other costs incurred in bringing the inventories to their present location & condition.

5. Foreign Currency Transactions

Foreign currency transactions have been translated at exchange rate prevailing on the date of transaction. At the balance sheet monetary assets and liabilities denominated in foreign currency are reported using the closing raExchange differences arises on foreign currency transaction are recognized as income or expense in the profit is !oss acuo.ini

6. 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 disclosec in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

7. Revenue Recognition :

(i) The company recognizes sale of product when they are invoiced to customer excluding sales tax,' Vat and trade discount (iij Revenue in icspect of other income is recognized when no significant uncertainty as to its determination or realization exists

8. Retirement Benefits

There is no amount of gratuity liability or leave encashment or any other retirement benefits for which the company may be rruae liable to pay Hence no provision for the same has been made as on the date of Balance sheet.

9. Impairment of Asset

Wherever events or changes in circumstances indicate that the carrying value of fixed assets may be impaired, tne company subjects such assets to a test of recoverability. based on discounted cash flows expected from use or disposal thereof, if the assets are impaired, the company recognizes an impairment loss as a difference between the carrying value and fair value net of cost of sale in accordance with AS-28 "Impairment of Assets", issued by the Institute of Chartered Accountants Of India. None of the company's fixed assets are considered for impairment as on the balance sheet date.

10. Prior Period Expenses

Prior Period expenses, if any significant, are charged to prior period expense Account. Similarly extraordinary items, if any significant, are shown separately in the accounts statements.

11. Borrowing Costs:

(i) Borrowing costs are recognized as an expense in the period in which they are incurred.

(ii) The concern does not have any qualifying asset from the viewpoint of capitalization of borrowing costs. Hence no boiown cost is capitalized.

12. Intangible Assets:

(i) The concern does not have an intangible asset from which any probable future economic benefit will flow to it.

(ii) Expenditure on an intangible item other than in (i) above is recognized as an expense when it is incurred.

13. Taxation:

a) Current Tax:

Tax on income for the current period is determined on the basis of taxable income a accordance witn the provisions of the Income Tax Act, 1961,

b) Deferred Tax:

i. The company has accounted for deferred tax in accordance with the Accounting Standard 22 "Accounting for taxes on income" issued by Council of ICAI. Accordingly, deferred tax for the year is recognized on timing difference, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

ii. Deferred Tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

iii. Deferred Tax assets are recognized and carried forward only if there is a reasonable/virtual certainty of its realization

14. Related Party Disclosure:

In accordance with the requirements of Accounting Standards (AS) - 18 on Related Party Disclosures, the names of the related parties where control exists and/or with whom transactions have taken place during the year and descriptions of relationships, as identified and certified by the management, are:

I. Key Management Personnel

- Mr. Rajeev Garg (Managing Director & Executive)

- Mr.Harshwardhan M. Koshal (Non Executive & Independent)

- Mr. Sudhir Kumar Agarwal (Non Executive & Non Independent)

- Mr. Neeraj Khetarpal (Non Executive & Independent)

M As informed by the management there was no related party transactions made during the year.

Other Accounting Policies

Accounting policies not referred to otherwise are consistent with generally accepted accounting principles.


Mar 31, 2010

I. Basis of preparation of Financial statements:

(i) The financial statements 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. There is no change in the accounting policies as compared to the preceding year.

(ii) The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis, if determinable.

2 (i) Fixed Assets:

Fixed Assets are stated at their original cost less depreciation. Cost includes duties, taxes and expenses incidental to acquisition and installation.

(ii) Depreciation:

In respect of Fixed Assets, depreciation is provided Block wise on Straight Line Method in accordance with the provisions of schedule XIV of the Companies Act, 1956. The assets purchased up to 30th September of the year are charges for year depreciation and those purchased after 30th September are charged half year depreciation.

3. Inventory:

Inventory of closing stocks held by the concern is valued at lower of the cost price or net realizable value. Cost is determined on FIFO Method. Cost comprises all cost of conversion and other costs incurred in bringing the inventories to their present location & condition.

4 Cash Flow Statement:

a) The statement has been prepared under indirect method except in case of dividends, sale / purchase of investments and taxes which have been considered on the basis of actual movement of case, with corresponding adjustments in assets and liabilities as set out in the according standard 3 issued by ICAI.

b) Cash and Cash equivalents represent cash and bank balances only.

5. Foreign Currency Transactions

Foreign currency transactions have been translated at exchange rate prevailing on the date of transaction. At the balance sheet date, monetary assets and liabilities denominated in foreign currency are reported using the closing rates.

Exchange differences arises on foreign currency transaction are recognized as income or expense in the profit & loss account.

6. Provisions and Contingencies

The company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made.

7. Revenue Recognition :

(i) The company recognizes sale of product when they are invoiced to customer excluding sale tax / Vat and trade discount.

(ii) Revenue in respect of other income is recognized when no significant uncertainty as to its determination or realization exists.

8. Retirement Benefits

There is no amount of gratuity liability or leave encashment or any other retirement benefits for which the company may be made liable to pay. Hence no provision for the same has been made as on the date of Balance Sheet.

9. Impairment of Asset

Wherever events or changes in circumstances indicate that the carrying value of fixed assets may be impaired, the company subjects such assets to a test of recoverability, based on discounted cash flows expected from use or disposal thereof. If the assets are impaired, the company recognizes an impairment loss as a difference between the carrying value and fair value net of cost of sale in accordance with AS-28 "Impairment of Assets", issued by the Institute of Chartered Accountants Of India. None of the company's fixed assets are considered for impairment as on the balance sheet date.

10. Prior Period expenses, if any significant, are charged to prior period expense Account. Similarly extraordinary items, if any signifi- cant, are shown separately in the accounts statements.

11. Borrowing Costs:

(i) Borrowing costs are recognized as an expense in the period in which they are incurred.

(ii) The concern does not have any qualifying asset from the viewpoint of capitalization of borrowing costs. Hence no borrowing cost is capitalized.

12. Intangible Assets:

(i) The concern does not have an intangible asset from which any probable future economic benefit will flow to it.

(ii) Expenditure on an intangible item other than in (i) above is recognized as an expense when it is incurred.

13. Other Accounting Policies

Accounting policies not referred to otherwise are consistent with generally accepted accounting principles.

 
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