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Accounting Policies of Munoth Communication Ltd. Company

Mar 31, 2014

1.1. BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS:

The financial statements are prepared under the historical cost convention, on the accrual basis of accounting as a going concern with revenues recognized and provision made for all known and ascertained liabilities and losses to comply in all material respects with the applicable accounting principles in India, the applicable Accounting Standards notified u/s 211(3C) of the Companies Act, 1956 read with General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.

1.2. REVENUE RECOGNITION:

Revenue from Sale of goods is recognised when the significant risks and rewards of ownership of the goods are transferred to the customer and are recorded net of trade discounts, rebates, and sales tax, VAT and excise duties.

Lease income is recognized on accrual basis.

Dividend income is accounted for in the year in which the right to receive the same is established.

Interest on investments is booked on a time-proportion basis taking into account the amounts invested and the rate of interest.

1.3. FIXED ASSETS:

Fixed Assets are stated at Cost less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

1.4.INTANGIBLE ASSETS:

Intangible assets consisting of software under development, for senior citizen mobiles, are stated at cost less accumulated amortization for a period of three years and the company has completed amortising the entire asset during this year.

1.5. DEPRECIATION:

(i) Depreciation on owned assets is provided on Written down value method at the rates based on the estimated useful life of the assets estimated by management which is in accordance with the rates and also in the manner specified in Schedule XIV to the Companies Act, 1956.

(ii) Depreciation on fixed assets added/disposed off during the year is provided on pro-rata basis with respect to date of acquisition /disposal.

1.6. INVESTMENTS:

The Management has classified the Investment made in shares for more than a year as long term investments and the investment are stated at Cost. A provision for diminution is made to recognise a decline, other than temporary, in the value of long term investments.

1.7. VALUATION OF INVENTORIES :

Stocks of mobile phones are valued at lower of cost and net realizable value.

1.8. RETIRMENT AND OTHER BENEFITS TO THE EMPLOYEES :

a) Gratuity:

The Company has provided for gratuity during the year on an accrual basis and the company has not gone for any actuarial valuation for the same and remains unfunded.

b) Leave Salary:

In respect of Leave Salary, the company as such does not have any scheme and the same will be accounted for as and when the liability for the same is admitted.

c) Provident Fund:

Though the employees Provident Fund & Miscellaneous Provisions Act, 1952 is not applicable to the company, the company has complied with the provisions voluntarily.

1.9.SEGMENT REPORTING (AS - 17)

Segment Reporting is not applicable to this company as the Company has earned revenue, only from sale of mobile phones and hence this standard is not applicable.

1.10. CONSOLIDATED FINANCIAL STATEMENTS : (AS - 21)

As the Company has no subsidiary the question of preparation of Consolidated Financial Statements does not arise. Accordingly there is nothing to report with respect to AS-21 relating to Consolidated Financial Statements.

1.11. TAXES ON INCOME: (AS-22)

Current Income Tax expenses comprise taxes on income from operations in India. Income tax payable in India is determined in accordance with the provisions of the Income Tax Act, 1961.

Current tax is determined as the amount of tax payable in respect of taxable income for the period.

Deferred tax liability is provided and recognized on timing differences between taxable income and accounting income subject to the consideration of prudence.

Deferred tax assets are not recognized unless there is virtual certainty that there will be sufficient future taxable income available to realize such assets. The Company has complied with the Accounting Standard of Taxes on Income issued under provisions of companies act, 1956 and appropriate adjustment has been made in the books of accounts.

1.12. CASH FLOW STATEMENT:(AS-3)

Cash flows are reported using indirect method ,whereby profit before tax is adjusted for the effects transactions of a non cash nature and any deferrals or accruals of past or future cash receipts or payments The cash flow from regular revenue generating, financing and investing activities of the company are segregated.

1.13. FOREIGN CURRENCY TRANSLATION:

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Foreign currency monetary items are reported using the closing rate. Non monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of transaction and non monetary items which are carried at fair value or other similar valuation denomination in a foreign currency are reported using the exchange rates that existed when the values were determined.


Mar 31, 2013

1. BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS:

The financial statements are prepared under the historical cost convention, on the accrual basis of accounting as a going concern with revenues recognized and provision made for all known and ascertained liabilities and losses to comply in all material respects with the applicable accounting principles in India, the applicable Accounting Standards notified u/s 211(3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956.

2. REVENUE RECOGNITION:

Revenue from Sales of goods is recognised when the significant risks and rewards of ownership of the goods are transferred to the customer and are recorded net of trade discounts, rebates, and Sales tax, VAT and excise duties.

Lease income is recognized on accrual basis.

Dividend income is accounted for in the year in which the right to receive the same is established. Interest on investments is booked on a time-proportion basis taking into account the amounts invested and the rate of interest.

3. FIXED ASSETS:

Fixed Assets are stated at Cost less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Revaluation of the part of the Block of the Assets being Land and two of the Buildings has been taken up by the Company in the Current year.

Intangible Assets:

Intangible assets consisting of software under development, for senior citizen mobiles, are stated at cost less accumulated amortisation. The company has started to amortise this over the period of three years.

4. DEPRECIATION:

(i) Depreciation on owned assets is provided on Written down value method at the rates based on the estimated useful life of the assets estimated by management which is in accordance with the rates and also in the manner specified in Schedule XIV to the Companies Act, 1956.

(ii) Depreciation on fixed assets added/disposed off during the year is provided on pro-rata basis with respect to date of acquisition /disposal.

(iii) Depreciation on the Revaluation of the Land and Building has been transferred to the Revaluation Reserve created on account of the Revaluation done.

5. INVESTMENTS:

The Management has classified the Investment made in shares for more than a year as shown in Schedule-V as long term investments and the investment are stated at Cost. A provision for diminution is made to recognise a decline, other than temporary, in the value of long term investments.

The Company has undertaken the Conversion of the Stock in Trade into Investments in the Current year and these investments are recorded at Cost in the Financial Statements.

6. VALUATION OF INVENTORIES : (i) Mobile Phones:

Stocks of mobile phones are valued at lower of cost and net realizable value. (ii) Stock of Shares & Debentures:

During the Year the Company has undertaken the Conversion of the Stock in Trade in to Investments. These Investments are stated at cost.

7. DEFERRED REVENUE EXPENDITURE

Costs incurred for brand building are recognized as intangible assets and amortised on a straight line basis over a period of three years.

8. RETIRMENT AND OTHER BENEFITS TO THE EMPLOYEES:

a) Gratuity:

The Company has provided for gratuity during the year.

b) Leave Salary:

In respect of Leave Salary, the company as such does not have any scheme and the same will be accounted for as and when the liability for the same is admitted.

c) Provident Fund:

Though the employees Provident Fund & Miscellaneous Provisions Act, 1952 is not applicable to the company, the company has complied with the provisions voluntarily.

9. SEGMENT REPORTING (AS -17)

This standard is not applicable to the Company for the Year.

10. CONSOLIDATED FINANCIAL STATEMENTS : (AS - 21)

As the Company has no subsidiary the question of preparation of Consolidated Financial Statements does not arise. Accordingly there is nothing to report with respect to AS-21 relating to Consolidated Financial Statements.

11. TAXES ON INCOME: (AS-22)

Current tax is determined as the amount of tax payable in respect of taxable income for the period.

Deferred tax liability is provided and recognized on timing differences between taxable income and accounting income subject to the consideration of prudence.

Deferred tax assets are not recognized unless there is virtual certainty that there will be sufficient future taxable income available to realize such assets. The Company has complied with the Accounting Standard of Taxes on Income issued under provisions of companies act, 1956 and appropriate adjustment has been made in the books of accounts.

12. CASH FLOW STATEMENT: (AS-3)

Cash flows are reported using indirect method ,whereby profit before tax is adjusted for the effects transactions of a non cash nature and any deferrals or accruals of past or future cash receipts or payments

The cash flow from regular revenue generating, financing and investing activities of the company are segregated.

13. FOREIGN CURRENCY TRANSACTIONS

There are no Foreign Currency transactions entered into by the Company.

14. REVALUATION RESERVE:

During the year the Company has revalued Land and two of the buildings and any Consequent adjustment from the Block have been credited to Revaluation reserve.


Mar 31, 2012

1. BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS:

The financial statements are prepared under the historical cost convention, on the accrual basis of accounting as a going concern with revenues recognized and provision made for all known and ascertained liabilities and losses to comply in all material respects with the applicable accounting principles in India, the applicable Accounting Standards notified u/s 211(3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956.

2. REVENUE RECOGNITION:

Revenue from Sales of goods is recognised when the significant risks and rewards of ownership of the goods are transferred to the customer and are recorded net of trade discounts, rebates, sales tax, VAT and excise duties.

Lease income is recognized on accrual basis.

Dividend income is accounted for in the year in which the right to receive the same is established. Interest on investments is booked on a time-proportion basis taking into account the amounts invested and the rate of interest.

3. FIXED ASSETS:

Fixed Assets are stated at Cost less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Intangible Assets:

Intangible assets consisting of software under development, for senior citizen mobiles, are stated at cost less accumulated amortisation. The company amortises this over the period of three years.

4. DEPRECIATION :

(i) Depreciation on owned assets is provided on Written down value method at the rates in the manner specified in Schedule XIV to the Companies Act, 1956.

(ii) Depreciation on fixed assets added/disposed off during the year is provided on pro-rata basis with respect to date of acquisition /disposal.

5. INVESTMENTS :

The Management has classified the Investment made in shares for more than a year as shown in Notes 10 as long term investments and the investment are stated at Cost. A provision for diminution is made to recognise a decline, other than temporary, in the value of long term investments.

6. VALUATION OF INVENTORIES :

(i) Mobile Phones

Stocks of mobile phones are valued at lower of cost and net realizable value.

(ii) Shares & Debentures :

Share and Securities which are quoted are valued at lower of cost and market value.

7. DEFERRED REVENUE EXPENDITURE

Costs incurred for brand building are recognized as intangible assets and amortised on a straight line basis over a period of three years.

8. RETIRMENT AND OTHER BENEFITS TO THE EMPLOYEES :

a) Gratuity :

The Company has provided for gratuity during the year on accrual basis and is unfunded.

b) Leave Salary :

In respect of Leave Salary, the company does not have any scheme and the same will be accounted for as and when the liability for the same is admitted.

c) Provident Fund :

Though the employees Provident Fund & Miscellaneous Provisions Act, 1952 is not applicable to the company, the company has complied with the provisions voluntarily.The employers contribution to provident fund is provided on accrual basis.

9. SEGMENT REPORTING (AS - 17)

This standard is not applicable to the company for the year.

10. CONSOLIDATED FINANCIAL STATEMENTS : (AS - 21)

As the Company has no subsidiary the question of preparation of Consolidated Financial Statements does not arise.

11. TAXES ON INCOME : (AS-22)

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax liability is provided and recognized on timing differences between taxable income and accounting income subject to the consideration of prudence.

Deferred tax assets are not recognized unless there is virtual certainty that there will be sufficient future taxable income available to realize such assets. The Company has complied with the Accounting Standard of Taxes on Income issued under provisions of companies act,1956 and appropriate adjustment have been made in the books of accounts.

12. CASH FLOW STATEMENT:(AS-3)

Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects transactions of a non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating, financing and investing activities of the company are segregated.

13. FOREIGN CURRENCY TRANSLATION:

Foreign currency transactions are accounted at the exchange rates prevailing on the date of the transaction. Gains and losses arising out of fluctuations in the exchange rates are recognized in the Profit and Loss at the year end rates in the period in which they arise.


Mar 31, 2011

1. BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS:

The financial statements are prepared under the historical cost convention, on the accrual basis of accounting as a going concern with revenues recognized and provision made for all known and ascertained liabilities and losses to comply in all material respects with the applicable accounting principles in India, the applicable Accounting Standards notified u/s 211(3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956.

2. REVENUE RECOGNITION:

Revenue from Sales of goods is recognised when the significant risks and rewards of ownership of the goods are transferred to the customer and are recorded net of trade discounts, rebates, sales tax, VAT and excise duties.

Lease income is recognized on accrual basis.

Dividend income is accounted for in the year in which the right to receive the same is established.

Interest on investments is booked on a time-proportion basis taking into account the amounts invested and the rate of interest.

3. FIXED ASSETS:

Fixed Assets are stated at Cost less accumulated depreciation and impairment losses if any . Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Intangible Assets:

Intangible assets consisting of software under development, for senior citizen mobiles, are stated at cost less accumulated amortisation. The company proposes to amortise this over the period of three years.

4. DEPRECIATION :

(i) Depreciation on owned assets is provided on Written down value method at the rates based on the estimated useful life of the assets estimated by management which is in accordance with the rates and also in the manner specified in Schedule XIV to the Companies Act, 1956, under the W.D.V. Method.

(ii) Depreciation on fixed assets added/disposed off during the year is provided on pro-rata basis with respect to date of acquisition /disposal.

5. INVESTMENTS:

The Management has classified the Investment made in shares for more than a year as shown in Schedule-V as long term investments and the investment are stated at Cost. A provision for diminution is made to recognise a decline, other than temporary, in the value of long term investments.

6. VALUATION OF INVENTORIES :

(i) Mobile Phones

Stocks of mobile phones are valued at lower of cost and net realizable value.

(ii) Shares & Debentures :

Share and Securities which are quoted are valued at lower of cost and market value .

7. DEFERRED REVENUE EXPENDITURE

Costs incurred for brand building are recognized as intangible assets and amortised on a straight line basis over a period of three years.

8. RETIRMENT AND OTHER BENEFITS TO THE EMPLOYEES :

a) Gratuity :

The Company has provided for gratuity during the year.

b) Leave Salary:

In respect of Leave Salary, the company as such do not have any scheme and the same will be accounted for as and when the liability for the same is admitted.

c) Provident Fund :

Though the employees Provident Fund & Miscellaneous Provisions Act, 1952 is not applicable to the company, the company has complied with the provisions voluntarily.

9. SEGMENT REPORTING (AS - 17)

(a) Segment accounting policies

Segment accounting policies are in line with the accounting policies of the Company. In addition, the following specific accounting policies have been followed for segment reporting:

(i) Segment revenue includes sales and other income directly identifiable with/allocable to the segment.

(ii) Expenses that are directly identifiable with/allocable to segments are considered for determining the Segment Result. Expenses which relate to the Company as a whole and not allocable to segments are included under "Unallocable Corporate Expenditure".

(iii) Income which relates to the Company as a whole and not allocable to segments is included in "Unallocable Corporate Income".

(iv) Segment result includes margins on inter-segment capital jobs, which are reduced in arriving at the profit before tax of the Company.

(v) Segment assets and liabilities include those directly identifiable with the respective segments. Unallocable corporate assets and liabilities represent the assets and liabilities that relate to the Company as a whole and not allocable to any segment.

10. CONSOLIDATED FINANCIAL STATEMENTS : (AS - 21)

As the Company has no subsidiary the question of preparation of Consolidated Financial Statements does not arise. Accordingly there is nothing to report with respect to AS-21 relating to Consolidated Financial Statements.

11. TAXES ON INCOME : (AS-22)

Current tax is determined as the amount of tax payable in respect of taxable income for the period.

Deferred tax liability is provided and recognized on timing differences between taxable income and accounting income subject to the consideration of prudence.

Deferred tax assets are not recognized unless there is virtual certainty that there will be sufficient future taxable income available to realize such assets. The Company has complied with the Accounting Standard of Taxes on Income issued under provisions of companies act, 1956 and appropriate adjustment have been made in the books of accounts.

12. CASH FLOW STATEMENT:(AS-3)

Cash flows are reported using indirect method .whereby profit before tax is adjusted for the effects transactions of a non cash nature and any deferrals or accruals of past or future cash receipts or payments The cash flow from regular revenue generating, financing and investing activities of the company are segregated.

13. FOREIGN CURRENCY TRANSLATION:

Foreign currency transactions are accounted at the exchange rates prevailing on the date of the transaction. Gains and losses arising out of fluctuations in the exchange rates are recognized in the Profit and Loss at the year end rates in the period in which they arise.


Mar 31, 2010

1. ACCOUNTING CONVENTIONS :

The financial statements have been prepared to comply in all material respects with the notified accounting standards by Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. Financial statements have been prepared under historical cost convention on accrual basis as a going concern, with revenues recognized and provision made for all known and ascertained liabilities and losses.

2. INCOME AND EXPENDITURE RECOGNITION : INCOME

(i) LEASE INCOME :

Lease income is recognized on accrual basis.

EXPENDITURE :

The expenditure are generally accounted on accrual basis.

3. FIXED ASSETS :

Fixed Assets are stated at Cost less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

4. DEPRECIATION :

(i) Depreciation on owned assets is provided on Written down value method at the rates based on the estimated useful life of the assets estimated by managment which is in accordance with the rates and also in the manner specified in Schedule XIV to the Companies Act, 1956, under the W.D.V. Method.

(ii) Depreciation on fixed assets added/disposed off during the year is provided on prorata basis with respect to date of acquisition / disposal.

5. INVESTMENTS :

The Management has classified the Investment made in shares for more than a year as shown in Schedule-5 as long term investments and the investments are stated at Cost. Provision for diminution in value is made to recognize a decline other that temporary in the value of long term investments.

6. VALUATION OF INVENTORIES :

(i) Share & Debentures :

Shares and Securities which are quoted are valued at lower of cost and market value.

7. RETIREMENT AND OTHER BENEFITS TO THE EMPLOYEES :

a) Gratuity :

The Company has not provided for gratuity during the year as, the Company did not have any employee eligible for gratuity.

b) Leave Salary : In respect of Leave Salary, the company as such do not have any scheme and the same will be accounted for as and when the liability for the same is admitted.

c) Provident Fund :

Though the Employees Provident Fund & Miscellaneous Provisions Act, 1952 is not applicable to the company, during the year, the company has complied with the provisions voluntarily.

8. SEGMENT REPORTING (AS-17)

During the year the Company is engaged only in the activity of Trading and Investments in shares & securities. Hence segment wise reporting in accordance with Accounting Standards 17 does not arise.

10. CONSOLIDATED FINANCIAL STATEMENTS : (AS – 21)

As the Company has no subsidiary the question of preparation of Consolidated Financial Statements does not arise. Accordingly there is nothing to report with respect to AS-21 relating to Consolidated Financial Statements.

11. TAXES ON INCOME : (AS -22)

Tax expense comprises of Current income tax, which is measured at the amount expected to be paid to the authorities in accordance with Income Tax Act, 1961.

Deferred income taxes reflect the impact of current year timing differences between the taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and tax laws enacted at the Balance sheet date.

12. CASH FLOW STATEMENT : (AS-3)

Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects transactions of a non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating, financing and investing activties of the company are segregated.

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