Mar 31, 2016
1. Corporate information
Saven Technologies Limited offers a full range of software services from end to end development of new software and web solutions, Enterprise Application Services, to re-engineering and enhancement of legacy applications, application integration and ongoing maintenance.
2. Significant Accounting Policies:
2.1 Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared under the historical cost convention, on the basis of a going concern, with revenue recognized and expenses accounted on their accrual, including provisions / adjustments for committed obligations and amounts, determined as payable or receivable during the year.
2.2 Cash and cash equivalents
Cash comprises cash on hand and fixed deposits with banks. Cash equivalents are short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.
2.3 Cash flow statement
Cash flows are reported using the indirect method, whereby profit/(loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.
2.4 Fixed Assets:
Fixed assets are capitalized at acquisition cost inclusive of freight, installation cost and other incidental expenses incurred during the year.
2.5 Depreciation and amortization
Depreciation has been provided on the straight-line method at the rates and in the manner prescribed in Schedule II of the Companies Act, 2013.
2.6 Revenue Recognition:
Income from services
Revenues from software related services are accounted for on the basis of services rendered, as per terms of contract.
2.7 Other Income
Interest income is recognized on time proportion basis.
Profit on sale of Investments on Mutual Funds is accounted as and when Mutual Funds are sold.
2.8 Investments:
Investments are classified into current investments and long-term investments. Current investments are carried at the lower of cost or fair market value. Any reduction in carrying amount and any reversals of such reduction are charged or credited to the profit and loss account. Long-term investments are carried at cost less provision made to recognize any decline, other than temporary, in the value of such investments.
2.9 Earnings per share:
The earnings considered in ascertaining the company''s EPS comprises the net profit / loss after tax (And includes the post tax effect of any extraordinary items). The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year. The number of shares used in computing Diluted EPS comprises of weighted average shares considered for deriving Basic EPS, and also the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the year, unless they have been issued at a later date.
2.10 Employee Benefits:
Defined contribution plans:
Contributions in respect of Employees Provident Fund and Pension Fund are made to a fund administered and managed by the Government of India and are charged as incurred on accrual basis.
Defined benefit plans:
The Company also provides for other employee benefits in the form of gratuity. The Company''s Contributions to Gratuity scheme are determined by actuarial valuation and have been made to an approved Fund and the same is charged as expenditure to Profit & Loss account. The gratuity fund is managed by the Life Insurance Corporation of India (LIC).
Long-term employee benefits
The Company also provides to eligible employee benefits in the form of Leave Encashment. The Company''s Contributions are determined by actuarial valuation and have been made to an approved Fund and the same is charged as expenditure to Statement of Profit & Loss account. The Leave encashment fund is managed by the Life Insurance Corporation of India (LIC).
Short-term employee benefits:
The undiscounted amount of short-term employee benefits i.e performance incentive expected to be paid in exchange for the services rendered by employee are recognized during the year when employees render the service.
2.11 Foreign Currency Transactions:
Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transaction. Exchange differences arising on settlement of short-term foreign currency monetary assets are recognized as income or expense in the statement of Profit and Loss account. Monetary assets and liabilities denominated in foreign currency are translated at the rates of exchange at the balance sheet date and resultant gain or loss is recognized in the Profit and Loss Account. The long term investments of the Company in the Joint venture in the UK, are recorded at the foreign exchange prevailing on the date of investments.
26. Segment Details
The Company is mainly engaged in the Software Development and Services. Hence there is no separate reportable segment as per Accounting Standard-17 issued by the Institute of Chartered Accountants of India.
27. Corporate Social Responsibility (CSR):
The net profits of the Company for the last three financial years were below Rs. 5 crores, the provisions of Section 135 of Companies Act, 2013 relating to Corporate Social Responsibility do not apply to the company for the financial year 2015-16.
29. Figures have been rounded off to the nearest rupee.
30. Reclassification:
These financial statements have been prepared in the format prescribed by the Revised Schedule VI to the Companies Act, 2013. Previous years'' figures have been recast / restated.
Mar 31, 2015
1.1 Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared under the
historical cost convention, on the basis of a going concern, with
revenue recognized and expenses accounted on their accrual, including
provisions / adjustments for committed obligations and amounts,
determined as payable or receivable during the year.
1.2 Cash and cash equivalents
Cash comprises cash on hand and fixed deposits with banks. Cash
equivalents are short term, highly liquid investments that are readily
convertible into known amounts of cash and which are subject to
insignificant risk of changes in value.
1.3 Cash flow statement
Cash flows are reported using the indirect method, whereby
profit/(loss) before extraordinary items and tax is adjusted for the
effects of transactions of non-cash nature and any deferrals or
accruals of past or future cash receipts or payments. The cash flows
from operating, investing and financing activities of the Company are
segregated based on the available information.
1.4 Fixed Assets
Fixed assets are capitalized at acquisition cost inclusive of freight,
installation cost and other incidental expenses incurred during the
year.
1.5 Depreciation and amortisation
Depreciation has been provided on the straight-line method at the rates
and in the manner prescribed in Sched- ule II of the Companies Act,
2013.
1.6 Revenue Recognition
Income from services
Revenues from software related services are accounted for on the basis
of services rendered, as per terms of contract.
1.7 Other Income
Interest income is recognized on time proportion basis.
Dividend income on investments is accounted when the right to receive
the dividend is established.
1.8 Investments
Investments are classified into current investments and long-term
investments. Current investments are carried at the lower of cost or
fair market value. Any reduction in carrying amount and any reversals
of such reduction are charged or credited to the profit and loss
account. Long-term investments are carried at cost less provision made
to recognize any decline, other than temporary, in the value of such
investments.
1.9 Earnings per share (EPS)
The earnings considered in ascertaining the company's EPS comprises the
net profit / loss after tax (And includes the post tax effect of any
extraordinary items). The number of shares used in computing Basic EPS
is the weighted average number of shares outstanding during the year.
The number of shares used in computing Diluted EPS comprises of
weighted average shares considered for deriving Basic EPS, and also the
weighted average number of equity shares which could have been issued
on the conversion of all dilutive potential equity shares. Dilutive
potential equity shares are deemed converted as of the beginning of the
year, unless they have been issued at a later date.
1.10 Employee Benefits
Defined contribution plans:
Contributions in respect of Employees Provident Fund and Pension Fund
are made to a fund administered and managed by the Government of India
and are charged as incurred on accrual basis.
Defined benefit plans:
The Company also provides for other employee benefits in the form of
gratuity. The Company's Contributions to Gratuity scheme are determined
by actuarial valuation and have been made to an approved Fund and the
same is charged as expenditure to Profit & Loss account. The gratuity
fund is managed by the Life Insurance Corporation of India (LIC).
Long-term employee benefits:
The Company also provides to eligible employee benefits in the form of
Leave Encashment. The Company's Contributions are determined by
actuarial valuation and have been made to an approved Fund and the same
is charged as expenditure to Profit & Loss account. The Leave
encashment fund is managed by the Life Insur- ance Corporation of India
(LIC).
Short-term employee benefits:
The undiscounted amount of short-term employee benefits i.e performance
incentive expected to be paid in exchange for the services rendered by
employee are recognized during the year when employees render the
service.
1.11 Foreign Currency Transactions
Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of transaction. Ex- change differences arising
on settlement of short-term foreign currency monetary assets are
recognized as income or expense in the statement of Profit and Loss
account. Monetary assets and liabilities denominated in foreign
currency are translated at the rates of exchange at the balance sheet
date and resultant gain or loss is recognized in the Profit and Loss
Account. The long term investments of the Company in the Joint venture
in the UK, are recorded at the foreign exchange prevailing on the date
of investments.
2.1 In accordance with Part C of Schedule-II of the Companies Act, 2013
, reassessed the useful lives of Fixed assets. Consequently, the
Depreciation on carrying value of the assets whose useful lives expired
as 01.04.2014, aggregating Rs.14,68,734/-,have been adjusted against
the balance in Surplus of Profit and Loss account as on 01.04.2014.
3.1 *During the financial year 2012-13, Company has taken vehicle loan
from ICICI bank for an amount of Rs.15,00,000/- carrying interest
@11.25%. The said loan is repayable in 60 monthly equal instalments of
Rs.32,499/- each commencing from July 2012. The said loan is secured by
charge on same asset on which loan taken.
During March, 2015 company forclosed remaining 27 equal instalments.
4.1 During the year, the company has not recognised the deferred tax
asset of Rs.3.59 lakhs, as the effect of the said deferred tax asset is
insgnificant.
Mar 31, 2014
A. Basis of preparation of Financial Statements :
- The financial statements have been prepared under historical cost
convention on the accrual basis of accounting in accordance with the
accounting principles generally accepted in India (GAAP) and in
compliance with the Accounting Standards issued by The Institute of
Chartered Accountants of India and the provisions of the Companies Act,
1956 as adopted consistently by the company.
- Accounting policies not specifically referred to otherwise are
consistent with the generally accepted accounting principles followed
by the Company.
- The preparation of financial statements in conformity with the
generally accepted accounting principles requires estimates and
assumptions to be made, that affect the reported amounts of assets and
liabilities on the date of financial statements and the reported
amounts of revenues and expenses during the reported year. Differences
between the actual results and estimates are recognized in the year in
which the results are known / materialized.
b. Revenue recognition:
- - Revenue from sales in respect of hardware is recognized when they
are completed with passing of the title and are exclusive of sales tax,
octroi and other incidental expenses.
- Revenue from software development is recognized in accordance with
the percentage of completion method and revenue from sale of licenses
of software products and other products is recognized on delivery /
installation, as the case may be.
- Revenue from IT infrastructure networking, annual service contracts
and facilities management services is deferred and recognized ratably
over the period of the underlying maintenance agreement.
- Interest Income is recognized on a time proportion basis taking
into account the amount outstanding and the rate applicable.
- Dividend Income is recognized when the shareholders'' right to
receive payment is established by the Balance Sheet Date.
c. Expenditure:
Expenses are accounted on accrual basis and the provisions are made for
all known losses and liabilities. No provisions are made towards likely
expenses on providing post-sales client support for fixed priced
contracts as well as in respect of annual technical service contracts
in so far as it pertains to the period beyond the current accounting
year.
d. Fixed Assets and Depreciation :
A. Fixed Assets
- Fixed assets are stated at their original cost of acquisition
including incidental expenses related to acquisition & installation of
the concerned assets less accumulated depreciation and impairment
losses, if any,.
- Costs that are directly associated with identifiable and unique
software products controlled by the Company, whether developed in-house
or acquired, and have probable economic benefits exceeding the cost are
recognized as product development.
- Assets acquired under lease are at cost of acquisition including
incidental expenses related to acquisition & installation of such
assets.
- Advances paid towards acquisition of fixed assets and the cost of
assets not ready for use as at the Balance Sheet date are disclosed
under capital work-in-progress.
B. Depreciation /Amortization.
- Depreciation on Software and Computer Systems is provided based on
Management''s estimate of useful life of Software/System however subject
to maximum period of 6 years. Depreciation on Fixed Assets other than
Land and those mentioned above has been provided on Straight Line
Method at the following rates:
- Product Development Expenses capitalized are amortized over its
useful life for a period not exceeding ten years.
- Leasehold assets are amortized over the period of lease.
- Miscellaneous expenditure is amortized over a period of 5 years
from the year in which it has been incurred,
e. Impairment of Assets:
Fixed assets are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be
recoverable. Whenever the carrying amount of an asset exceeds its
recoverable amount, an impairment loss is recognized in the income
statement for items of fixed assets carried at cost. The recoverable
amount is higher of an assets net selling price and value in use. The
net selling price is the amount obtained from the sale of an asset in
an arm''s length transaction while value in use is the present value of
estimated future cash flows expected to arise from the continuing use
of an asset, from its disposal at the end of its useful life.
f. Inventories:
Inventories have been valued on the following basis:
i). Raw Materials, packing material, stores and spares - At cost.
ii). Work-in-progress
At cost plus appropriate allocation of overheads.
iii). Finished Goods
At cost plus appropriate allocation of overheads or net realizable
value, whichever is lower
g. Investments:
Investments are classified into current investment and long term
investments. Current investments are stated at lower of cost or fair
market value. Long Term Investments are stated at cost less provision
for permanent diminution in value if any, of investments.
h. Foreign Exchange Transactions :
Transactions denominated in foreign currencies are normally recorded at
the exchange rate prevailing at the time of the transaction. Realized
gains and losses on settlement of foreign currency transactions are
recognized in the Profit and Loss account. Foreign currency assets and
liabilities at the year end are translated at the year end exchange
rates and the resultant exchange difference is recognized in the Profit
and Loss Account. Exchange differences relating to fixed assets are
adjusted in the cost of the respective assets.
i. Research & Development:
1. Revenue expenditure on R&D is charged of to profit & loss account in
the year in which it is incurred where the Company is not certain of
realizing future economic benefits from such activities.
2. Capital expenditure on R&D is included under the relevant fixed
assets.
j. Employee Benefits:
(a) Short Term Employee Benefits
All short term employee benefits such as salaries, wages, bonus,
medical benefits which fall due within 12 months of the period in which
the employee renders the related services are charged to the profit and
loss account.
(b) Long Term & Post- Employment Benefits
(i) Defined Contribution Plan
Company''s contribution paid/payable during the year towards Provident
Fund Scheme, ESIC is recognized in the Profit & Loss Account.
(ii) Defined Benefit Plan
The Company''s Gratuity Benefit Scheme is a defined benefit plan. The
Company''s liability for gratuity is determined by actuarial valuation
made at the end of each financial year using the projected unit credit
method. Actuarial gains and Losses are immediately recognized in Profit
& Loss Account as income and expense.
k. Borrowing Costs:
Borrowing costs directly attributable to acquisition, construction and
production of qualifying assets are capitalized as a part of the cost
of such asset up to the date of completion. Other borrowing costs are
charged to the Profit & Loss Account.
I. Deferred tax:
Deferred Income taxes reflects the impact of current year timing
differences between taxable income and accounting income for the year
and reversal of timing differences of earlier years. The differences
that result between the profit considered for income taxes and the
profit as per the financial statements are identified, and thereafter a
deferred tax asset or deferred tax liability is recorded for timing
differences, namely the differences that originate in one accounting
period and reverse in another, based on the tax effect of the aggregate
amount being considered. The tax effect is calculated on the
accumulated timing differences at the end of an accounting period based
on prevailing enacted or substantially enacted regulations. Deferred
tax assets are recognized only if there is reasonable certainty of
their realization and are reviewed for the appropriateness of their
respective carrying values at each balance sheet date.
m. Provision for Tax:
Provision for current tax is determined on the basis of estimated
taxable income for the period as per the provisions of Section 115JB
Income Tax Act, 1961.
n. Earnings per Share (EPS):
The earnings considered in ascertaining the Company''s EPS are computed
as per Accounting Standard 20 on "Earning per Share", issued by the
Institute of Chartered Accountants of India. The number of shares used
in computing basic EPS is the weighted average number of shares
outstanding during the period. The diluted EPS is calculated on the
same basis as basic EPS, after adjusting for the effects of potential
dilutive equity shares unless the effect of the potential dilutive
equity shares is anti-dilutive.
o. Provision and Contingent Liabilities
Provisions are recognized and computed in accordance with Accounting
Standard 29 on "Provisions, Contingent Liabilities and Contingent
Assets" issued by the Institute of Chartered Accountants of India
i.e. they are recognized if the following conditions are satisfied:
(a) The Company has a present obligation as a result of past event;
(b) It is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation; and
(c) A reliable estimate can be made of the amount of the obligation.
Similarly, the Contingent liabilities are disclosed in Accordance with
the Accounting Standard 29 i.e. they are disclosed when the Company has
a possible obligation or a present obligation and it is probable that a
Cash Outflow will not be required to settle the obligation.
p. Leases
Lease arrangements where the risks and rewards incident to ownership of
an asset substantially vest with the lessor, are recognised as
operating leases. Lease rentals under operating leases are recognised
in the profit and loss account on a straight-line basis over the period
of lease.
Mar 31, 2013
1.1 Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared under the
historical cost convention, on the basis of a going concern, with
revenue recognized and expenses accounted on their accrual, including
provisions / adjustments for committed obligations and amounts,
determined as payable or receivable during the year.
1.2 Cash and cash equivalents
Cash comprises cash on hand and fixed deposits with banks. Cash
equivalents are short term, highly liquid investments that are readily
convertible into known amounts of cash and which are subject to
insignificant risk of changes in value.
1.3 Cash flow statement
Cash flows are reported using the indirect method, whereby
profit/(loss) before extraordinary items and tax is adjusted for the
effects of transactions of non-cash nature and any deferrals or
accruals of past or future cash receipts or payments. The cash flows
from operating, investing and financing activities of the Company are
segregated based on the available information.
1.4 Fixed Assets
Fixed assets are capitalized at acquisition cost inclusive of freight,
installation cost and other incidental expenses incurred during the
year.
1.5 Depreciation and amortisation
Depreciation has been provided on the straight-line method as per
Section 205(2)(b) of the Companies Act, 1956 at the rates and in the
manner prescribed in Schedule XIV to the Companies Act, 1956.
1.6 Revenue Recognition
Income from services
Revenues from software related services are accounted for on the basis
of services rendered, as per terms of contract.
1.7 Other Income
Interest income is recognized on time proportion basis.
Dividend income on investments is accounted date of the declaration of
Dividend.
1.8 Investments
Investments are classified into current investments and long-term
investments. Current investments are carried at the lower of cost or
fair market value. Any reduction in carrying amount and any reversals
of such reduction are charged or credited to the profit and loss
account. Long-term investments are carried at cost less provision made
to recognize any decline, other than temporary, in the value of such
investments.
1.9 Earnings per share (EPS)
The earnings considered in ascertaining the company''s EPS comprises the
net profit / loss after tax (And includes the post tax effect of any
extraordinary items). The number of shares used in computing Basic EPS
is the weighted average number of shares outstanding during the year.
The number of shares used in computing Diluted EPS comprises of
weighted average shares considered for deriving Basic EPS, and also the
weighted average number of equity shares which could have been issued
on the conversion of all dilutive potential equity shares. Dilutive
potential equity shares are deemed converted as of the beginning of the
year, unless they have been issued at a later date.
1.10 Employee Benefits
Defined contribution plans:
Contributions in respect of Employees Provident Fund and Pension Fund
are made to a fund administered and managed by the Government of India
and are charged as incurred on accrual basis.
Defined benefit plans:
The Company also provides for other employee benefits in the form of
gratuity. The Company''s Contributions to Gratuity scheme are determined
by actuarial valuation and have been made to an approved Fund and the
same is charged as expenditure to Profit & Loss account. The gratuity
fund is managed by the Life Insurance Corporation of India (LIC).
Long-term employee benefits:
The Company also provides to eligible employee benefits in the form of
Leave Encashment. The Company''s Contributions are determined by
actuarial valuation and have been made to an approved Fund and the same
is charged as expenditure to Profit & Loss account. The Leave
encashment fund is managed by the Life Insur- ance Corporation of India
(LIC).
Short-term employee benefits:
The undiscounted amount of short-term employee benefits i.e performance
incentive expected to be paid in exchange for the services rendered by
employee are recognized during the year when employees render the
service.
1.11 Foreign Currency Transactions
Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of transaction. Ex- change differences arising
on settlement of short-term foreign currency monetary assets are
recognized as income or expense in the statement of Profit and Loss
account. Monetary assets and liabilities denominated in foreign
currency are translated at the rates of exchange at the balance sheet
date and resultant gain or loss is recognized in the Profit and Loss
Account. The long term investments of the Company in the subsidiary in
the USA and in the Joint venture in the UK, are recorded at the foreign
exchange prevailing on the date of invest- ments.
1.12 Taxes on Income
Although the company has started generating profit, the Deferred Tax
Asset / Liability has not recognized based on materiality concept.
Mar 31, 2012
1.1 Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared under the
historical cost convention, on the basis of a going concern, with
revenue recognized and expenses accounted on their accrual, including
provisions / adjustments for committed obligations and amounts,
determined as payable or receivable during the year.
1.2 Cash and cash equivalents
Cash comprises cash on hand and fixed deposits with banks. Cash
equivalents are short term, highly liquid investments that are readily
convertible into known amounts of cash and which are subject to
insignificant risk of changes in value.
1.3 Cash flow statement
Cash flows are reported using the indirect method, whereby
profit/(loss) before extraordinary items and tax is adjusted for the
effects of transactions of non-cash nature and any deferrals or
accruals of past or future cash receipts or payments. The cash flows
from operating, investing and financing activities of the Company are
segregated based on the available information.
1.4 Fixed Assets
Fixed assets are capitalized at acquisition cost inclusive of freight,
installation cost and other incidental expenses incurred during the
year.
1.5 Depreciation and amortization
Depreciation has been provided on the straight-line method as per
Section 205(2)(b) of the Companies Act, 1956 at the rates and in the
manner prescribed in Schedule XIV to the Companies Act, 1956.
1.6 Revenue Recognition
Income from services
Revenues from software related services are accounted for on the basis
of services rendered, as per terms of contract.
1.7 Other Income
Interest income is recognized on time proportion basis.
Dividend income on investments is accounted for when the right to
receive the payment is established.
1.8 Investments
Investments are classified into current investments and long-term
investments. Current investments are carried at the lower of cost or
fair market value. Any reduction in carrying amount and any reversals
of such reduction are charged or credited to the profit and loss
account. Long-term investments are carried at cost less provision made
to recognize any decline, other than temporary, in the value of such
investments.
1.9 Earnings per share (EPS)
The earnings considered in ascertaining the company's EPS comprises the
net profit / loss after tax (And includes the post tax effect of any
extraordinary items). The number of shares used in computing Basic EPS
is the weighted average number of shares outstanding during the year.
The number of shares used in computing Diluted EPS comprises of
weighted average shares considered for deriving Basic EPS, and also the
weighted average number of equity shares which could have been issued
on the conversion of all dilutive potential equity shares. Dilutive
potential equity shares are deemed converted as of the beginning of the
year, unless they have been issued at a later date.
1.10 Employee Benefits
Defined contribution plans:
Contributions in respect of Employees Provident Fund and Pension Fund
are made to a fund administered and managed by the Government of India
and are charged as incurred on accrual basis.
Defined benefit plans:
The Company also provides for other employee benefits in the form of
gratuity. The Company's Contributions to Gratuity scheme are determined
by actuarial valuation and have been made to an approved Fund and the
same is charged as expenditure to Profit & Loss account. The gratuity
fund is managed by the Life Insurance Corporation of India (LIC).
Long-term employee benefits:
The Company also provides to eligible employee benefits in the form of
Leave Encashment. The Company's Contributions are determined by
actuarial valuation and have been made to an approved Fund and the same
is charged as expenditure to Profit & Loss account. The Leave
encashment fund is managed by the Life Insurance Corporation of India
(LIC).
Short-term employee benefits:
The undiscounted amount of short-term employee benefits i.e.
performance incentive expected to be paid in exchange for the services
rendered by employee are recognized during the year when employees
render the service.
1.11 Foreign Currency Transactions
Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of transaction. Ex- change differences arising
on settlement of short-term foreign currency monetary assets are
recognized as income or expense in the statement of Profit and Loss
account. Monetary assets and liabilities denominated in foreign
currency are translated at the rates of exchange at the balance sheet
date and resultant gain or loss is recognized in the Profit and Loss
Account. The long term investments of the Company in the subsidiary in
the USA and in the Joint venture in the UK, are recorded at the foreign
exchange prevailing on the date of investments.
1.12 Taxes on Income
Although the Company has started generating profit, it is not
considered prudent to recognize the Deferred Tax Asset/ Liability due
to effect of timing difference at present.
Mar 31, 2011
1. Accounting Convention:
The Accounts have been prepared under the historical cost convention,
on the basis of a going concern, with revenue recognized and expenses
accounted on their accrual, including provisions / adjustments for
committed obligations and amounts, determined as payable or receivable
during the year.
2. Fixed Assets:
Fixed assets are capitalized at acquisition cost inclusive of freight,
installation cost and other incidental expenses incurred during the
year.
3. Depreciation:
The Company provides depreciation on the basis of Straight Line Method
as per Section 205(2)(b) of the Companies Act, 1956 at the rates and in
the manner prescribed in Schedule XIV to the Companies Act, 1956.
4. Revenue Recognition:
Revenues from software related services are accounted for on the basis
of services rendered on Cost plus method, as per terms of contract.
Revenues from BPO services are based on the performance of specific
criteria at contracted rates.
Dividend income on investments is accounted for when the right to
receive the payment is established.
Interest income is recognized on time proportion basis.
5. Investments:
Investments are classified into current investments and long-term
investments. Current investments are carried at the lower of cost or
fair market value. Any reduction in carrying amount and any reversals
of such reduction are charged or credited to the profit and loss
account. Long-term investments are carried at cost less provision made
to recognize any decline, other than temporary, in the value of such
investments.
6. Earnings per share:
The earnings considered in ascertaining the company's EPS comprises the
net profit / loss after tax (And includes the post tax effect of any
extraordinary items). The number of shares used in computing Basic EPS
is the weighted average number of shares outstanding during the year.
The number of shares used in computing Diluted EPS comprises of
weighted average shares considered for deriving Basic EPS, and also the
weighted average number of equity shares which could have been issued
on the conversion of all dilutive potential equity shares. Dilutive
potential equity shares are deemed converted as of the beginning of the
year, unless they have been issued at a later date.
7. Employee Benefits:
(i) Provident Fund:
Contributions in respect of Employees Provident Fund and Pension Fund
are made to a fund administered and managed by the Government of India
and are charged as incurred on accrual basis.
(ii) Gratuity:
The Company also provides for other employee benefits in the form of
gratuity. The Company's Contributions to Gratuity scheme are determined
by actuarial valuation and have been made to an approved Fund and the
same is charged as expenditure to Profit & Loss account. The gratuity
fund is managed by the Life Insurance Corporation of India (LIC).
(Hi) Leave Encashment:
The Company provides for leave encashment based on actual calculations
as at the Balance Sheet date.
8. Foreign Currency Transactions:
Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of transaction. Monetary assets and liabilities
denominated in foreign currency are translated at the rates of exchange
at the balance sheet date and resultant gain or loss is recognized in
the Profit and Loss Account. The long term investments of the Company
in the subsidiary in the USA and in the Joint venture in the UK, are
recorded at the foreign exchange prevailing on the date of investments.
Mar 31, 2010
1. Accounting Convention:
The Accounts have been prepared under the historical cost convention,
on the basis of a going concern, with revenue recognized and expenses
accounted on their accrual, including provisions/ adjustments for
committed obligations and amounts, determined as payable or receivable
during the year.
2. Fixed Assets:
Fixed assets are capitalized at acquisition cost inclusive of freight,
installation cost and other incidental expenses incurred during the
year.
3. Depreciation:
The Company provides depreciation on the basis of Straight Line Method
as per Section 205(2)(b) of the Companies Act, 1956 at the rates and in
the manner prescribed in Schedule XIV to the Companies Act, 1956.
4. Revenue Recognition:
Revenues from software related services are accounted for on the basis
of services rendered on Cost plus method, as per terms of contract.
Revenues from BPO services are based on the performance of specific
criteria at contracted rates.
5. Investments:
Investments are classified into current investments and long-term
investments. Current investments are carried at the lower of cost or
fair market value. Any reduction in carrying amount and any reversals
of such reduction are charged or credited to the profit and loss
account. Long-term investments are carried at cost less provision made
to recognize any decline, other than temporary, in the value of such
investments.
6. Earnings per share:
The earnings considered in ascertaining the companys EPS comprises the
net profit / loss after tax (And includes the post tax effect of any
extraordinary items). The number of shares used in computing Basic EPS
is the weighted average number of shares outstanding during the year.
The number of shares used in computing Diluted EPS comprises of
weighted average shares considered for deriving Basic EPS, and also the
weighted average number of equity shares which could have been issued
on the conversion of all dilutive potential equity shares. Dilutive
potential equity shares are deemed converted as of the beginning of the
year, unless they have been issued at a later date.
7. Retirement Benefits:
(i) The Companys Contributions to Provident Fund have been paid to
Governments provident fund and charged as expenditure to Profit & Loss
account.
(ii) The Companys Contributions to Gratuity scheme are determined by
actuarial valuation and have been made to an approved Fund and the same
is charged as expenditure to Profit & Loss account.
8. Foreign Currency Transactions:
Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of transaction. Monetary assets and liabilities
denominated in foreign currency are translated at the rates of exchange
at the balance sheet date and resultant gain or loss is recognized in
the Profit and Loss Account.
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