Accounting Policies of SVA India Ltd. Company

Mar 31, 2024

Summary of significant accounting policies

2.1 Basis of preparation of financial statements

The financial statements of the company have been prepared under historical cost convention on the accrual basis of
accounting, are in accordance with the applicable requirements of the Companies Act 2013 and comply in all material
aspects with the Indian Accounting Standards (hereinafter referred as to ‘Ind. AS’) as notified by ministry of corporate
affairs in pursuant to section 133 of Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting
Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules 2016.

The accounting policies have been consistently applied unless otherwise stated. All assets and liabilities have been
classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in the
Division II of Schedule III to the Act 2013. The Company considers 12 months to be its normal operating cycle for
the purpose of current or non-current classification of assets and liabilities.

2.2 Summary of significant accounting policies

a. Use of estimates

The preparation of financial statements in conformity with Indian Accounting Standards requires the management to
make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are
based on the management’s best knowledge of current events and actions, uncertainty about these assumptions and
estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities
in future periods.

b. Property Plant & Equipment’s
Tangible assets

Property, Plant and Equipment is stated at cost, net of accumulated depreciation and accumulated impairment
losses, if any. Cost comprises of purchase price inclusive of taxes etc. up to the date the asset is ready for its
intended use. Depreciation is provided under written down value method at the rates and in the manner prescribed
under Schedule II to the Companies Act, 2013.

Intangible assets

Intangible assets are stated at cost, net of accumulated depreciation and impairment of losses, if any. Depreciation
is provided under written down value method at the rate and in the manner prescribed under Schedule II to the
companies Act, 2013. Currently company does not hold any intangible assets.

c. Depreciation/amortization
Tangible assets

Depreciation on fixed assets is calculated on a written down value method at based on the useful lives estimated
by the management, or those prescribed under the Schedule II of the Companies Act, 2013.

Depreciation method, useful life and residual value are reviewed periodically.

Leasehold land and improvements are amortised on the basis of duration and other terms of lease.

The carrying amount of PPE is reviewed periodically for impairment based on internal / external factors. An
impairment loss is recognised wherever the carrying amount of assets exceeds its recoverable amount. The
recoverable amount is the greater of the asset’s net selling price and value in use.

De-recognition

PPE are derecognised either when they have been disposed of or when they are permanently withdrawn from
use and no future economic benefit is expected from their disposal. The difference between the net disposal
proceeds and the carrying amount of the asset is recognised in the Statement of Profit and Loss in the period of
de-recognition.

Intangible assets

Depreciation on Intangible assets is calculated on a written down value method at based on the useful lives
estimated by the management, or those prescribed under the Schedule II of the Companies Act, 2013.

d. Borrowing costs

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement
of borrowings and exchange differences arising from foreign currency borrowings to the extent they are
regarded as an adjustment to the interest cost.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily
takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of
the respective asset. All other borrowing costs are expensed in the period they occur.

e. Impairment of Non-financial assets

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately
identifiable cash flows (cash generating units). As a result, some assets are tested individually for impairment
and some are tested at the cash generating unit level. All individual assets or cash generating units are tested
for impairment whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable.

The carrying amounts of assets are reviewed at each balance sheet date to determine if there is any indication
of impairment based on external or internal factors. An impairment loss is recognised wherever the carrying
amount of an asset exceeds its recoverable amount which represents the greater of the net selling price of assets

and their ‘value in use’in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs
at each reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that
whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not
increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has
increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument
improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity
reverts to recognising impairment loss allowance based on 12-month ECL.

Life time ECL are the expected credit losses resulting from all possible default events over the expected life of
a financial instrument. The 12-month ECL is a portion of the lifetime ECL which results from default events
that are possible within 12 months after the reporting date.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the
contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the
original EIR. When estimating the cash flows, an entity is required to consider all contractual terms of the
financial instrument (including prepayment, extension, call and similar options) over the expected life of the
financial instrument. However, in rare cases when the expected life of the financial instrument cannot be
estimated reliably, then the entity is required to use the remaining contractual term of the financial instrument.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense
in the Statement of profit and loss. This amount is reflected under the head ‘other expenses’ in the Statement
of profit and loss.

For assessing increase in credit risk and impairment loss, the Company combines financial instruments on the
basis of shared credit risk characteristics with the objective of facilitating an analysis that is designed to enable
significant increases in credit risk to be identified on a timely basis

f. Impairment of financial assets

In accordance with Ind. AS 109, the Company applies expected credit loss (ECL) model for measurement and
recognition of impairment loss on risk exposure arising from financial assets like debt instruments measured at
amortised cost e.g., trade receivables and deposits.

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on Trade
receivables or contract revenue receivables. The application of simplified approach does not require the
Company to track changes Purchase price is assigned using a weighted average basis. Net realizable value is
defined as anticipated selling price or anticipated revenue less cost to completion.

g. Investments

Investments are classified as current investments and long-term investments as per information and explanation
given by the management.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly
attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at cost or FMV whichever is lower and Long-term
investments are carried at FMV. FMV of Long-term Investment is determined by the management from the
latest audited report of the Investment companies if it is not listed in Stock-Exchange of India. On disposal of
an investment, the difference between it carrying amount and net disposal proceeds is charged or credited to
the statement of profit and loss. Investments transfer to holding company at cost gain or loss on said investment
book by holding company.

h. Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company
and the revenue can be reliably measured.

Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the
applicable interest rate. Interest income is included under the head “other income” in the statement of profit
and loss.

Dividend Income

Revenue is recognised when the Company’s right to receive the payment is established, which is generally
when shareholders approve the dividend.

Other Income

Other incomes are accounted on accrual basis, except interest on delayed payment by debtors and liquidated
damages which are accounted on acceptance of the Company’s claim.

i. Inventories

Inventories comprise of traded goods, are valued at cost or at net realisable value whichever is lower.

j. Accounting for taxes on income

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected
to be paid to the tax authorities in accordance with the Income Tax Act, 1961. Current and deferred tax shall
be recognized as income and expenses and included in profit and loss for the period, except to the extent that
the tax arises from (a) a transaction or event which is recognized in the same or a different period, outside
profit or loss, either in other comprehensive Income or directly in equity or (b) a business combination.
Deferred taxes recognized in respect of temporary differences between the carrying amount of assets and
liabilities for financial reporting purpose and corresponding amounts used for taxation purpose except to the
extent it relates to business combination or to an item which is recognized directly in equity and in other
comprehensive Income.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the
balance sheet date. Deferred tax assets are recognized only to the extent that it is probable that future taxable
profit will be available against which the assets can be utilized. A deferred tax asset shall be recognized for
the carry-forward of unused tax losses and unused tax credits to the extent that it is probable that future
taxable profit will be available against which the unused tax losses and unused tax credits can be utilized.
Deferred tax assets are reviewed at each reporting date and Reduced to the extent that it is no longer probable
that the related tax benefit will be Realize. . A deferred tax liability is recognized based on the expected
manner of realization or settlement of carrying amount of assets and liabilities

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set-off current
tax assets against current tax liabilities and the deferred tax assets and deferred taxes relate to the same taxable
entity and the same taxation authority.

Minimum alternate tax (MAT) paid in a period is charged to the statement of profit and loss as current tax.
The Group recognizes MAT credit available as an asset only to the extent that there is convincing evidence
that the Group will pay normal income tax during the specified period, i.e., the period for which MAT credit
is allowed to be carried forward. In the period in which the company recognizes MAT credit as an asset in
accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative
Tax under the Income-tax

Act, 1961, the said asset is created by way of credit to the statement of profit and loss and shown as “MAT
Credit Entitlement.” The Group reviews the “MAT credit entitlement” asset at each reporting date and
writes down the asset to the extent the Group does not have convincing evidence that it will pay normal
tax during the specified period.

k. Employee benefits

(i) Defined contribution plans

Retirement benefits in the form of contribution to provident fund and pension fund are charged to the
Statement of Profit and Loss.

(ii) Defined Benefit Plan

Gratuity is in the nature of a defined benefit plan. Provision for gratuity is calculated on the basis of actuarial
valuations carried out at reporting date and is charged to the Statement of Profit and Loss. The actuarial
valuation is computed using the projected unit credit method. Re-measurements, comprising of actuarial
gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined
benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined
benefit liability), are recognised immediately in the Balance Sheet with a corresponding debit or credit to
retained earnings through OCI in the period in which they occur. Re-measurements are not reclassified to
profit or loss in subsequent periods.

(iii) Superannuation

The company has not made any defined contribution to superannuation fund.

(iv) Compensated absences

Privilege leave entitlements are recognised as a liability as per the rules of the Company. The liability for
accumulated leaves which can be availed and/or encashed at any time during the tenure of employment.

The liability for accumulated leaves which is eligible for encashment within the same calendar year is
provided for at prevailing salary rate for the entire unavailed leave balance as at the Balance Sheet date.

l. Foreign currency transactions

i. Foreign currency transactions are recorded at exchange rates prevailing on the date of respective
transactions.

ii. Current assets and current liabilities in foreign currencies existing at balance sheet date are translated at
year-end rates.

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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.

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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.

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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.

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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.

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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.