NOTES FORMING PART OF THE FINANCIAL STATEMENTS 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 brparation of financial statements The financial statements of the Company have been brpared 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 Debrciation and amortisation Debrciation has been provided on the straight-line method at the rates and in the manner brscribed 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. Dividend income on investments is accounted when the right to receive the dividend is established. 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 (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. 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 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 brvailing 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 brvailing on the date of investments. 3. Consolidated Accounts: The company has disinvested its entire holdings in its foreign subsidiary company, Saven Technologies Inc., USA during the month of May, 2014. Hence there is no requirement for the company to furnish consolidated accounts for the financial year ended March 31, 2015. 3.1. Figures have been rounded off to the nearest rupee. 3.2. Reclassification: These financial statements have been brpared in the format brscribed by the Revised Schedule VI to the Companies Act, 2013. Previous years' figures have been recast / restated. In terms of our report attached for Rambabu & Co., Chartered Accountants Reg.No:002976S Ravi Rambabu Partner Membership No. 18541 Murty Gudipati Executive Director for and on behalf of the Board R S Sampath Director S Mohan Rao Chief Financial Officer P. Jayanthi Company Secretary Place : Hyderabad Date : May 6, 2015 |