Mar 31, 2016
Majestic Research Services & Solutions Limited (formerly known as Majestic Research Services & Solutions Private Limited), incorporated under the Companies Act, 1956 and the company is the first Indian Market Research Company listed on BSE SME Platform. The Company is engaged in providing market research services. The company offers a wide range of qualitative and quantitative research services.
NOTE 1: SIGNIFICANT ACCOUNTING POLICIES
A. Basis of preparation of Financial Statements:
i. These financial statements are prepared in accordance with Generally Accepted Accounting Principles in India (GAAP) under historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 (''Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014, and the relevant provisions of the Companies Act, 2013 ("the 2013 Act") / Companies Act, 1956 ("the 1956 Act"), as applicable.
ii. The financial statements are prepared under the historical cost convention and on the accounting principles of going concern. The Company follows the accrual system of accounting where income & expenditure are recognized on accrual basis.
B. Use of Estimates:
The preparation of financial statements requires management to make estimates and assumptions that affect amounts in the financial statements and reported notes thereto. Actual results could differ from these estimates. Differences between the actual result and estimates are recognized in periods in which the results are known/ materialized.
C. Fixed Assets and Intangible Asset:
Fixed assets are stated at cost of acquisition or construction less accumulated depreciation and impairment loss, if any. The cost of an asset comprises of its purchase price (net of Cenvat / duty credits availed wherever applicable) and any directly attributable cost of bringing the assets to working condition for its intended use. Expenditure on additions, improvements and renewals is capitalized and expenditure for maintenance and repairs is charged to profit and loss account. Fixed Assets individually costing Rupees Five thousand or less are depreciated at 100% over a period of one Year. Intangible asset are stated at acquisition cost less accumulated amortization.
D. Depreciation and Amortization:
The Company has provided for depreciation on fixed assets using written down value (WDV) over the useful life of the assets as prescribed in Schedule II to the companies Act, 2013 except the following items where useful lives estimated by the management based on internal technical assessment differ from those provided in Schedule II to the Companies Act, 2013.
i) Computer Software:- Six Years
ii) Eye Tracking (Classified under Plant & Equipments):- Five Years
E. Valuation of Inventories:
There are no inventories as the company is into service sector.
F. Foreign Currency Transactions
Initial Recognition: Transactions denominated in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction.
Conversion: At the year end, monetary items denominated in foreign currencies other than those covered by forward contracts are converted into rupee equivalents at the year-end exchange rates.
Exchange Differences: All exchange differences arising on settlement/conversion of foreign currency transactions are recognized in the statement of profit and loss.
G. Revenue Recognition:
Revenue is primarily derived from market research and related services. Revenue is recognized on completion of service to be rendered to the customer. Revenue from partly complete contracts is recognized on percentage of completion method except when there is uncertainty as to measurement or ultimate collectability then revenue recognition is postponed until such uncertainty is resolved.
H. Earnings Per Share
Basic earnings per share is computed by dividing the net profit after tax for the year after prior period adjustments attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.
I. Taxation & Deferred Tax
Provision for Current Tax is made in accordance with the provision of Income Tax Act, 1961. Deferred tax is recognized on timing differences between taxable & accounting income / expenditure that originates in one period and are capable of reversal in one or more subsequent period(s).
J. Contingent Liabilities / Provisions
Contingent liabilities are not provided in the accounts and are disclosed separately if applicable in notes to accounts.
K. Impairment Of Assets
The company assesses at each balance sheet date whether there is any indication due to external factors that an asset or group of assets comprising a cash generating unit (CGU) may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the CGU, to which the asset belongs is less than the carrying amount of the asset or the CGU as the case may be, the carrying amount is reduced to its recoverable amount and the reduction is treated as impairment loss and is recognized in the statement of profit and loss. If at any subsequent balance sheet date, there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is re assessed and the asset is reflected at recoverable amount subject to a maximum of depreciated historical cost and is accordingly reversed in the statement of profit and loss.
L. Investments
Long term investments are valued at cost with an appropriate provision for permanent diminution in value, if any. Investment that is readily realizable and is intended to be held for not more than one year is valued at lower of cost or realizable value.
M. Share Issue Expenditure
Expenses incurred in connection with issue of equity shares have been written off against securities premium received on issue of shares to public. The balance amount of expenses has been classified under other current assets and it will be write off over a period of five years equally starting from financial year ending on 31st March, 2016.
Mar 31, 2015
CORPORATE INFORMATION
Majestic Research Services & Solutions Limited (formerly known as
Majestic Research Services & Solutions Private Limited), incorporated
under the Companies Act, 1956 and the company is the first Indian
Market Research Company listed on BSE SME platform dated 16th July,
2015. The Company is engaged in providing market research services. The
company offers a wide range of qualitative and quantitative research
services.
NOTE 1: SIGNIFICANT ACCOUNTING POLICIES
A. Basis of preparation of Financial Statements:
i. These financial statements are prepared in accordance with Generally
Accepted Accounting Principles in India (GAAP) under historical cost
convention on the accrual basis. GAAP comprises mandatory accounting
standards as prescribed under Section 133 of the Companies Act, 2013
('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, and
the relevant provisions of the Companies Act, 2013 ("the 2013 Act") /
Companies Act, 1956 ("the 1956 Act"), as applicable.
ii. The financial statements are prepared under the historical cost
convention and on the accounting principles of going concern. The
Company follows the accrual system of accounting where income &
expenditure are recognized on accrual basis.
B. Use of Estimates:
The preparation of financial statements requires management to make
estimates and assumptions that affect amounts in the financial
statements and reported notes thereto. Actual results could differ from
these estimates. Differences between the actual result and estimates
are recognized in periods in which the results are known/ materialised.
C. Fixed Assets and Intangible Asset:
Fixed assets are stated at cost of acquisition or construction less
accumulated depreciation and impairment loss, if any. The cost of an
asset comprises of its purchase price (net of cenvat / duty credits
availed wherever applicable) and any directly attributable cost of
bringing the assets to working condition for its intended use.
Expenditure on additions, improvements and renewals is capitalized and
expenditure for maintenance and repairs is charged to profit and loss
account. Fixed Assets individually costing Rupees Five thousand or less
are depreciated at 100% over a period of one Year. Intangible asset are
stated at acquisition cost less accumulated amortisation.
D. Depreciation and Amortisation:
The Company has provided for depreciation on fixed assets using written
down value (WDV) over the useful life of the assets as prescribed in
Schedule II to the companies Act, 2013 except in case of computer
software. The estimated useful life of computer software is considered
as six years based on internal technical assessment and the management
believes that useful life of six years represent the best period over
which management expect to use such assets. Intangible assets are
amortized over their estimated useful life on a straight line basis.
Depreciation on asset acquired / sold during the year is provided on
pro-rata basis with reference to the date of installation / put to use
in the books or disposal. Effective from 1st April 2014, the company
has reassessed the useful lives of the fixed assets in line with useful
lives mentioned in Schedule II to the companies Act, 2013.
E. Valuation of Inventories:
There are no inventories as the company is into service sector.
F. Foreign Currency Transactions
Initial Recognition: Transactions denominated in foreign currencies are
recorded at the exchange rates prevailing on the date of the
transaction.
Conversion: At the year end, monetary items denominated in foreign
currencies other than those covered by forward contracts are converted
into rupee equivalents at the year-end exchange rates.
Exchange Differences: All exchange differences arising on
settlement/conversion of foreign currency transactions are recognized
in the statement of profit and loss.
G. Revenue Recognition:
Sale of services is recognized on completion of service to be rendered
to the customer. Revenue from partly complete contracts is recognized
on percentage completion method.
H. Earnings Per Share
Basic earnings per share is computed by dividing the net profit after
tax for the year after prior period adjustments attributable to equity
shareholders by the weighted average number of equity shares
outstanding during the year.
I. Taxation & Deferred Tax
Provision for Current Tax is made in accordance with the provision of
Income Tax Act, 1961. Deferred tax is recognized on timing differences
between taxable & accounting income / expenditure that originates in
one period and are capable of reversal in one or more subsequent
period(s).
J. Contingent Liabilities / Provisions
Contingent liabilities are not provided in the accounts and are
disclosed separately if applicable in notes to accounts.
K. Impairment Of Assets
The company assesses at each balance sheet date whether there is any
indication due to external factors that an asset or group of assets
comprising a cash generating unit (CGU) may be impaired. If any such
indication exists, the company estimates the recoverable amount of the
asset. If such recoverable amount of the asset or the recoverable
amount of the CGU, to which the asset belongs is less than the carrying
amount of the asset or the CGU as the case may be, the carrying amount
is reduced to its recoverable amount and the reduction is treated as
impairment loss and is recognized in the statement of proof and loss.
If at any subsequent balance sheet date, there is an indication that a
previously assessed impairment loss no longer exists, the recoverable
amount is re assessed and the asset is reflected at recoverable amount
subject to a maximum of depreciated historical cost and is accordingly
reversed in the statement of profit and loss.
L. Investments
Long term investments are valued at cost with an appropriate provision
for permanent diminution in value, if any. Investment that is readily
realizable and is intended to be held for not more than one year is
valued at lower of cost or realizable value.
M. Share Issue Expenditure
Expenses incurred in connection with proposed issue of equity shares
has been classified under other current assets and will be written off
against securities premium to be received on the proposed issue.
b) Shares held by Holding or Ultimate Holding Company or its
Subsidiaries or Associates 2,087,500 Equity Shares are held by
Majestic Market Research Support Services Limited, the holding
company.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article