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Union Budget 2017-18
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Accounting Policies of MFL India Ltd. Company

Mar 31, 2015

A. Basis of preparation of financial Statements

These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013.

The financial statements are prepared on accrual basis under the historical cost convention,

B. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period.

Accounting estimates could change from period to period. Actual results could differ from those estimates. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

C. Fixed Assets

Fixed Assets are stated at cost net of recoverable taxes, trade discounts and rebates less accumulated depreciation and impairment loss, if any. The cost of tangible Assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use.

Subsequent expenditures related to an item of fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

D. Depreciation and Amortization

Depreciation is provided on the straight line method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. For additions and disposals, depreciation is provided pro-rata for the period of use. The management had decided to amortize the goodwill over a period of ten years.

E. Revenue Recognition

Revenue from sale of Logistics & Supply Chain Services is recognized on accrual basis on completion of job and Transportation Sales are recognized when the vehicles are dispatched.

F. Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

G. Taxation

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognized if there is virtual certainty that sufficient future taxable income will be available to realize the same.

H. Earning per share

Basic earning per share is computed by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by taking into account the aggregate of the weighted average number of equity shares outstanding during the period and the weighted average number of equity shares which would be issued on conversion of all the dilutive potential equity shares into equity shares.

I. Cash Flow Statement

Cash Flows are reported using indirect method as specified in Accounting Standard (AS-3) "Cash Flow Statement". The cash flows from operating, investing and financing activities of the company are segregated. Cash and Cash Equivalent comprises of cash in hand, balance in bank accounts and earmarked fixed deposits with bank.

J. Provisions, Contingent Liabilities and Contingent Assets

Provision is recognized in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.

Contingent assets are neither recognized nor disclosed in the financial statements.




Mar 31, 2014

1. Accounting Convention

The accounts have been prepared under the historical cost conventions to comply in all material aspects with applicable accounting principles in India, and are in accordance with Generally Accepted Accounting Principles and the Accounting Standards issued by Institute of Chartered Accountants of India to the extent applicable and the relevant provisions of the Companies Act, 1956. GAAP comprises mandatory Accounting Standard as prescribed by the companies (Accounting Standards) rules 2006, provisions of companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India.

The preparation of the financial statements in accordance with the generally accepted accounting principles requires that management makes estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities as of the date of financial statements and the reported amounts of revenue and expenses during the reporting period. Management believes that the estimates used in the preparation of financial statements are prudent and reasonable. The financial statements have been prepared under historical cost convention on an accrual basis. The Accounting policies have been consistently applied by the Company and are consistent with those used in the previous year. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

2. Fixed assets

Fixed assets are stated at cost less accumulated depreciation, impairment loss, if any. Cost of acquisition inclusive of inward freight, duties, taxes and incidental expenses related to acquisition, commissioning and installation incurred to bring the assets to its working condition for intended use.

3. Depreciation including amortization of intangible assets

Depreciation is provided on the straight-line method at the rates and in manner prescribed in Schedule XIV to the Companies Act, 1956 based on the estimated useful life of the asset as determined by the management. For additions and disposals, depreciation is provided pro-rata for the period of use. The management had decided to amortize the goodwill over a period of ten years.

5. Revenue recognition

Revenue from sale of services (Material Handeling) is recognized on accrual basis on completion of job.

Transportation Sales are recognized when the vehicles dispatched. Interest Income is recognized on time proportion basis.

6. Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable

7. Taxation

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of Income Tax Act, 1961 and based on the expected outcome of assessment/ appeals.

Deferred tax is recognized on timing difference between the accounting income and the taxable income for the period and quantified using the tax rates and laws enacted or substantively enacted on the Balance Sheet date.

8. Earnings per share

Basic earning per share is computed by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by taking into account the aggregate of the weighted average number of equity shares outstanding during the period and the weighted average number of equity shares which would be issued on conversion of all the dilutive potential equity shares into equity shares.

9. Cash Flow Statement:

Cash Flows are reported using the indirect method as specified in Accounting Standard (AS-3) "Cash Flow Statement". Cash and Cash Equivalent comprises of cash in hand, balance in bank accounts and earmarked fixed deposits with bank.

10. PROVISIONS: PROVISION AND CONTINGENT LIABILITIES:

Provision is recognized (for liabilities that can be measured by using a substantial degree of estimation) when:

a) the company has a present obligation as a result of a past event;

b) a probable outflow of resources embodying economic benefits is expected to settle the obligation; and

c) the amount of the obligation can be reliably estimated

Contingent liability is disclosed in case there is:

a) Possible obligation that arises from past events and existence of which will be confirmed only by the occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the enterprise; or

b) a present obligation arising past events but is not recognized

1. when it is not possible that an outflow of resources embodying economic benefits will be required to settle the obligation; or

2. A reliable estimate of the amount of the obligation cannot be made.


Mar 31, 2012

1. Accounting Convention

The accounts have been prepared under the historical cost conventions to comply in all material aspects with applicable accounting principles in India, and are in accordance with Generally Accepted Accounting Principles and the Accounting Standards issued by Institute of Chartered Accountants of India to the extent applicable and the relevant provisions of the Companies Act, 1956. GAAP comprises mandatory Accounting Standard as prescribed by the companies (Accounting Standards) rules 2006, provisions of companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India. The preparation of the financial statements in accordance with the generally accepted accounting principles requires that management makes estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities as of the date of financial statements and the reported amounts of revenue and expenses during the reporting period. Management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

2. Fixed assets

Fixed assets are stated at cost less accumulated depreciation. Cost of acquisition inclusive of inward freight, duties, taxes and incidental expenses related to acquisition, commissioning and installation incurred to bring the assets to its working condition for intended use

3. Depreciation including amortization of intangible assets

Depreciation is provided on the straight-line method at the rates and in manner prescribed in Schedule XIV to the Companies Act, 1956 based on the estimated useful life of the asset as determined by the management. For additions and disposals, depreciation is provided pro-rata for the period of use. The management had decided to amortize the goodwill over a period of ten years.

4. Revenue recognition

Transportation Sales are recognized when the vehicles dispatched. Interest Income is recognized on time proportion basis. Sale of Aggregate The sale is booked as soon as goods are dispatched from the Crusher to parties.

5. Taxation

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of Income Tax Act, 1961 and based on the expected outcome of assessment/ appeals.

Deferred tax is recognized on timing difference between the accounting income and the taxable income for the period and quantified using the tax rates and laws enacted or substantively enacted on the Balance Sheet date.

6. Earnings per share

The basic earnings per share is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average no of equity shares outstanding the year. Diluted earning per share if computed in the case of the company will come same as the basic earning per share.

7. Cash Flow Statement:

Cash Flows are reported using the indirect method as specified in Accounting Standard (AS-3) "Cash Flow Statement". Cash and Cash Equivalent comprises of cash in hand, balance in bank accounts and earmarked fixed deposits with bank.


Mar 31, 2010

A) That Company maintains its accounts on mercantile system of accounting and are in compliance with the accounting standard referred to the section 211 (3C) of the Companies Act, 1956.

b) Revenue Recognition

Income & Expenditure are accounted for as accrual basis.

c) Inventories

There are no Inventories at the close of the year.

d) Fixed Assets

Fixed Assets are stated at historical cost which includes expenditure incurred on acquisition , construction and installation.

e) Depreciation

Depreciation has been provided on straight line method at the rate prescribed in schedule XIV of the Companies Act, 1956 as amended by notification No. GSR 756 (E) dated 16th December, 1993.

 
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