1) Company Overview
Svaraj Trading and Agencies Limited is a listed entity incorporated in India on March 7th, 1980 under the provision of the Companies Act, 1956 having CIN
L51100MH1980PLC022315 and presently having its registered office at Office No. 30, 2ndFloor, 380/82 Amruteshwar Cooperative Housing Soc. Ltd., Jagannath
Sunkersett Road, Mumbai, Maharashtra, India, PIN- 400002. The Company is currently engaged in products and services including company is in to Trading and
Agencies Business and Allied Activities business.
2) Basis of Preparation of Financial Statements
These financial statements are prepared in accordance with Indian Accounting Standards (IndAs) under the historical cost convention on the accrual basis except
The Company has adopted all the IndAs Standards and the adoption was carried out in accordance with IndAs 101, First Time Adoption of Indian Accounting
Standards. The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed U/s 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014 (IGAAP), which was the previous GAAP. Reconciliations and description of the effect of the transition have been summarized
in the statement separately.
Accounting policies have been consistently applied except where a newly issued Accounting Standard is initially adopted or a revision to an existing Accounting
Standard requires a change in the Accounting policies hitherto in the use.
The amendments to standards that are issued, but not yet effective, up to date of issuance of the Company's financial statements are disclosed below.
Ind AS 40, Investment Property - Not Applicable
Ind AS 21, The Effects of Changes in Foreign Exchange Rates - Not Applicable
2A) Use of estimates
The preparation of financial statements in conformity with IndAs requires the management to make judgment, estimates and assumptions. These estimates,
judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosure of contingent assets &
liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. The application of Accounting Policies that
require critical Accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed in
the notes separately. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates
are made as the management becomes aware of the changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial
statements in the period in which changes are made and, if material, there effects are disclosed in the notes to the financial statements.
2B) Summary of Significant Accounting Policies
The Financial Statements have been prepared using the Accounting Policies and measurement basis summarized below:
2B.1) Revenue Recognition
Rental income is recognized on the accrual basis as per agreed terms.
Interest income is recognized as other income on a time proportion basis taking into account the amount outstanding and the applicable interest rate.
On Disposal of investments, the difference between its carrying amounts and net disposal proceeds is charged or credited to the Statement of Profit and Loss
under the head of other income. Gain/Loss on sale of investments is determined on First in First Out cost basis.
2B.2) Property, Plant and Equipment
Property, Plant and Equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price,
borrowing costs, if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade
discounts and rebates are deducted in arriving at the purchase price. On transition to IndAs, the Company has elected to continue with the carrying value of all its
Property, Plant and Equipment recognized as at 1 April 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of the Property,
Plant and Equipment.
Depreciation on Property, Plant and Equipment is charged on SLM either on the basis of rates arrived at with reference to the useful life of the assets evaluated &
approved by the management or rates arrived at based on useful life prescribed under Part C of Schedule II of the Companies Act, 2013.
The residual values, useful lives and methods of Depreciation of Property, Plant and Equipment are reviewed at each financial year end and adjusted
prospectively, if appropriate.
2B.3) Intangible Assets
The management has defined the definite life of 10 years for intangible assets mainly consist of brands/trademarks/interactual property.
2B.4) Financial Instruments
Financial Assets
Equity Instruments
All investments in equity instruments classified under financial assets are initially measured at Book value , the Company may, on initial recognition, irrevocably
elect to measure the same at FVTOCI . The Company makes such election on an instrument-by-instrument basis. Fair value changes on an equity instrument is
recognised as other income in the Statement of Profit and Loss unless the Company has elected to measure such instrument at FVOCI. Fair value changes
excluding dividends, on an equity instrument measured at FVOCI are recognised in OCI. Amounts recognised in OCI are not subsequently reclassified to the
Statement of Profit and Loss. Dividend income on the investments in equity instruments are recognised as ‘other income’ in the Statement of Profit and Loss.
Financial liabilities
All financial liabilities are recognized initially at fair value, as applicable, and net of directly attributable transaction costs. The Company’s financial liabilities include
trade and other payables.
2B.6) Taxation
Current Income Tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws
used to compute the amount are those that are enacted or substantively enacted, at the reporting date.
Current income tax relating to items recognized outside profit or loss is recognized outside profit or loss. Current tax items are recognized in correlation to the
underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
Minimum Alternate Tax
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is
considered as an asset if there is convincing evidence that the Company will pay normal income tax in future.
Accordingly, MAT is recognized as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company. MAT
Credit entitlements are reviewed for the appropriates of their respective carrying value at each balance sheet date.
2B.6) Employee benefit schemes
Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of profit and loss for the year in which the related
service is rendered. Post employment and other long term employee benefits are recognized as an expense in the profit and loss account of the year in which the
employee has rendered services and treated as defined benefit plans. The expense is recognized on the assumption that such benefits are payable at the end of
the year to all the eligible employees.
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