1. Taxes on Income:
In the absence of convincing evidence regarding availability of
sufficient taxable income in near future against which the deferred tax
asset / liability can be adjusted, the company has not recognized the
deferred tax asset / liability arising due to tax effect of timing
difference at present.
2. Foreign Currency Transactions:
The long term monetary assets in foreign currency holding, for more
than one year are translated into reporting currency without
considering the exchange fluctuation during the year.
3. Related Party Transactions:
A. Related Parties and their Relationship
I. Associate or Joint Venture:
a) Saven Technologies Inc., USA, a Subsidiary of the Company.
b) Penrillian Limited, a Joint Venture Company in the U.K.
c) Pennar Industries Limited - Common Director.
d) Pennar Engineered Building Systems Limited - Common Director.
e) Pennar Chemical Limited - Common Director.
II. Key Management Person:
Mr. Murty Gudipati - Executive Director
4. Quantitative details:
The Company is engaged in the Development of Computer Software and IT
Enabled Services (ITES). The sale and production of such software
cannot be expressed in any generic unit. Hence, it is not possible to
give the quantitative details of sales and certain information as
required under Paragraphs 3, 4C and 4D of Part II of Schedule VI to the
Companies Act, 1956.
5. Other Liabilities:
Other Liabilities includes an amount of Rs.3.54 Lakhs relating to Hire
Purchase of cars excluding Hire charges, and the said loan was secured
by hypothecation of the said cars.
8. Segment-wise / Product-wise performance
Business Segments of the Company are primarily Software Development
Services in respect of offshore projects working in India and
Geographical revenues are segregated based on the location of the
customer who is invoiced or in relation to which the revenue is
6. Dues to Micro, Small and Medium Enterprises:
The amount due to Micro, Small and Medium Enterprises as defined in the
The Micro, Small and Medium Enterprises Development Act, 2006 has
been determined to the extent such parties have been identified on the
basis of information available with the company.
7. Sundry Debtors:
Sundry Debtors include an amount of Rs.34,109,583/- due from Saven
Technologies Inc., a subsidiary in USA, (out of which an amount of Rs.
61.38 Lakhs has been provided for provision for doubtful debts) which
has been provided in full as provision for doubtful debts in the books
During the year, an amount of Rs.40,93,000/- has been written off
against the provision of the same amount, due from Saven Technologies
(UK) Limited made during the earlier years, towards sundry debtors
amounting to Rs.2,005,040/- advances amounting to Rs. 1,411,742/- and
investments amounting to Rs.6,76,218/- pursuant to the approval of
Reserve Bank of India for dissolution of the wholly-owned subsidiary.
The previous year''s figures have been recast, regrouped, rearranged
wherever necessary, to conform to the current year''s classification.