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Accounting Policies of Noesis Industries Ltd. Company

Mar 31, 2014

(a) Corporate Information

Noesis Industries Ltd. (hereinafter referred to as the "Company") is a Company domiciled in India and incorporated under the provisions of the Companies Act 1956 (The Act). The Company has been engaged in the business of Consumer Electronics Goods. During the period the operations of the company have been drastically curtailed/discontinued on account of heavy losses incurred since last two years.

(b) Method of Accounting

The financial statements of the company are prepared and presented under the historical cost convention and comply in all material respects with applicable accounting standards as notified by the Central Government vide the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of Companies Act,1956, All incomes & expenditure are accounted for using the accrual method of accounting unless otherwise stated hereafter. Accounting policies not specifically referred to are consistent with generally accepted accounting principles

(c) Use of estimates

In preparation of the financial statements in conformity with generally accepted accounting principles, estimates and assumptions, where necessary, have been made based on management''s best knowledge and experience. Accordingly, actual results may differ from such estimates.

(d) Inventory Valuation

Stocks of trading goods, Packing, Stores & Spares are valued at lower of cost or market value on first in first-out basis as per past practice.

(e) Fixed Assets including intangible assets and work-in-progress

Fixed Assets are stated at cost, net of accumulated depreciation.

(f) Depreciation

i) Depreciation on tangible and intangible assets is provided on the straight line method at the rates and in the manner specified in Schedule XIV of the Act.

ii) Depreciation on additions/ deletions to/from fixed assets is provided on pro-rata basis from the date the asset is put to use /discarded.

iii) Individual Assets costing upto Rs. 5000.00 are depreciated @ 100% in the year of purchase.

(g) Amortisation

i) Deferred revenue expenses brought forward are being amortised in ten equated annual installments

ii) No amortization is provided for on lands taken on lease of above 30 years period.

(h) Investments

i) Non-current investments in equity shares, government securities and mutual funds are stated at cost.

ii) Current investments are stated at lower of cost or fair value.

iii) Permanent diminution in the value of long term investments are stated at the fair value, after such decline is determined for such investment individually in terms of Accounting Standard (AS)-13

(i) Foreign Currency Translations

Transactions in Foreign Exchange are accounted for at Exchange rates prevailing on the date of transactions. Monetary items denominated in Foreign Currencies are converted at the Exchange rate as at the Balance Sheet date. The Exchange differences if any arising on such conversions are recognized as income or expense in the year of such conversion.

(j) Taxation

i) Current Tax

Provision for Income Tax is based on assessable profits/loss of the company as computed in accordance with the relevant provision of the Income Tax Act, 1961 for the period ending 31st March, 2014.

ii) Deferred Tax

Deferred Tax is recognized on timing differences; being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets on unabsorbed tax losses and tax depreciation are recognized only when there is a virtual certainty of their realization and on other items when there is reasonable certainty of realization. The tax effect is calculated on the accumulated timing differences at the year end based on the tax rates and laws enacted or substantially enacted on the balance sheet date.

(k) Retirement /Employee Benefits

i) Contributions payable by the Company to the concerned Government Authorities in respect of Provident Fund, Family Pension fund and Employee State Insurance are charged as revenue expenditure.

ii) Provision for gratuity is made on actuarial valuation, as per Accounting Standard (AS)-15. Provision for leave encashment is made on the basis of company leave policy as its best estimates.

(l) Segmental reporting

The Company''s operations comprise of only one Segments-"Consumer Electronic Goods/Accessories" and therefore there are no other business/geographical segments to be reported as required under Accounting Standards (AS-17) "Segment Reporting".

(m) Leases

Finance leases, which effectively transfer to the Company substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the lower of the fair value and present value of the minimum lease payments at the inception of the lease term and disclosed as leased assets. Lease payments are apportioned between The finance charges and reduction of the lease liability based on the implicit rate of return. Finance charges are charged directly against income.

Leases where the lessors effectively retain substantially all the risks and benefits of ownership over the leased term are classified as operating leases. Operating lease

Payments including expenses incurred for bringing the leased asset to its working condition for intended use are recognized as an expense in the Statement of Profit and Loss on a straight-line basis over the lease term.

(n) Provisions

A provision is recognized when an enterprise has a present obligation as a result of past event; and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

(a) There is no variation or change in the issued,subcribed and fully paid- up equity share capital structure during the year.Therefore,no separate disclosure of reconcialation of number of equity share outstanding as at the beginning and as at the end of the year is required.

(b) Out of the above shares,90,00,000 equity shares were alloted as fully paid-up, pursuant to the scheme of amalgamation as on Jan,2006 for consideration other than cash

(c) Shareholders holding morethan 5% shares based on legal ownership in the subscribed share capital of the Company is set out:-


Jun 30, 2013

(a) Corporate Information

MVL Industries Ltd. (hereinafter referred to as the "Company") is a Company domiciled in India and incorporated under the provisions of the Companies Act 1956 (The Act). The Company has been engaged in the business of Consumer Electronics Goods. During the year the operations of the company was drastically curtailed/discontinued operation on account of heavy losses incurred during the year.

(b) Method of Accounting

The financial statements of the company are prepared and presented under the historical cost convention and comply in all material respects with applicable accounting standards as notified by the Central Government vide the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of Companies Act,1956, All incomes & expenditure are accounted for using the accrual method of accounting unless otherwise stated hereafter. Accounting policies not specifically referred to are consistent with generally accepted accounting principles

(c) Use of estimates

In preparation of the financial statements in conformity with generally accepted accounting principles, estimates and assumptions, where necessary, have been made based on management's best knowledge and experience .Accordingly, actual results may differ from such estimates.

(d) Inventory Valuation

Stocks of Raw Material, Packing, Stores & Spares and Finished Goods are valued at lower of cost or market value on first in first-out basis as per past practice.

(e) Fixed Assets including intangible assets and work-in-progress Fixed Assets are stated at cost, net of accumulated depreciation.

(f) Depreciation

i) Depreciation on tangible and intangible assets is provided on the straight line method at the rates and in the manner specified in Schedule XIV of the Act. ii) Depreciation on additions/ deletions to/from fixed assets is provided on pro-rata basis from the date the asset is put to use /discarded. iii) Individual Assets costing upto Rs. 5000.00 are depreciated @ 100% in the year of purchase.

(g) Amortization

i) Deferred revenue expenses brought forward are being amortized in ten equated annual installments ii) No amortization is provided for on lands taken on lease of above 30 years period.

(h) Investments

i) Non-current investments in equity shares, government securities and mutual funds are stated at cost. ii) Current investments are stated at lower of cost or fair value.

iii) Permanent diminution in the value of long term investments are stated at the fair value, after such decline is determined for such investment individually in terms of Accounting Standard (AS)-13

(i) Foreign Currency Translations

Transactions in Foreign Exchange are accounted for at Exchange rates prevailing on the date of transactions. Monetary items denominated in Foreign Currencies are converted at the Exchange rate as at the Balance Sheet date. The Exchange differences if any arising on such conversions are recognized as income or expense in the year of such conversion.

(j) Taxation

i) Current Tax

Provision for Income Tax is based on assessable profits/loss of the company as computed in accordance with the relevant provision of the Income Tax Act, 1961 for the year ending 30th June, 2013.

ii) Deferred Tax

Deferred Tax is recognized on timing differences; being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets on unabsorbed tax losses and tax depreciation are recognized only when there is a virtual certainty of their realization and on other items when there is reasonable certainty of realization. The tax effect is calculated on the accumulated timing differences at the year end based on the tax rates and laws enacted or substantially enacted on the balance sheet date.

(k) Retirement /Employee Benefits

i) Contributions payable by the Company to the concerned Government Authorities in respect of Provident Fund, Family Pension fund and Employee State Insurance are charged as revenue expenditure. ii) Provision for gratuity is made on actuarial valuation, as per Accounting Standard (AS)-15. Provision for leave encashment is made on the basis of company leave policy as its best estimates.

(l) Segmental reporting

The Company's operations comprise of only one Segments-"Consumer Electronic Goods/Accessories" and therefore there are no other business/geographical segments to be reported as required under Accounting Standards (AS-17) "Segment Reporting".

(m)Leases

Finance leases, which effectively transfer to the Company substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the lower of the fair value and present value of the minimum lease payments at the inception of the lease term and disclosed as leased assets. Lease payments are apportioned between The finance charges and reduction of the lease liability based on the implicit rate of return. Finance charges are charged directly against income.

Leases where the lessons effectively retain substantially all the risks and benefits of ownership over the leased term are classified as operating leases. Operating lease Payments including expenses incurred for bringing the leased asset to its working condition for intended use are recognized as an expense in the Statement of Profit and Loss on a straight-line basis over the lease term.

(n) Impairment of assets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life. A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

(o) Provisions

A provision is recognized when an enterprise has a present obligation as a result of past event; and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

*Note In view of inadequacy of profits during the year, in terms of the provisions of the Companies Act 1956, schedule XIII ,Part II, directors remuneration of Rs. 2.80 lacs (Previous Year of Rs. 33.60 lacs) and the Employers Contribution to Provided Funds of Rs.0.48 lacs (Previous Year of Rs. 5.76 lacs) has been reversed and is included as due from directors.

* Note: With the announcement of decision to discontinue the existing product lines in pending claims and disputed debts of Rs.6347.59 lacs (Previous year Rs.5510.50) were settled as accepted and written off.


Jun 30, 2010

1. METHOD OF ACCOUNTING

The accounts of the Company are prepared under the historical cost convention using the accrual method of accounting unless otherwise stated hereafter. Accounting policies not specifically referred to are consistent with generally accepted accounting principles.

2. RETIREMENT / EMPLOYEE BENEFITS

a) Provision for Gratuity Liability is made on actuarial valuation basis as per the requirement of Accounting Standard (AS-15).

b) The Companys contributions to ESI, Provident Fund and Pension Funds are charged as revenue expenditure.

c) Provision for Leave Encashment is made as per companys leave rule policy.

3. FIXED ASSETS AND DEPRECIATION

a) Fixed assets are stated at cost net of accumulated depreciation.

b) Depreciation is provided on straight-line method at the rates specified under Schedule XIV of the Companies Act, 1956.

c) Depreciation on additions to/deletion from Fixed Assets made during the year, is provided on pro rata basis f rom/upto the date of such addition/deletion, as the case may be.

4. INVENTORY VALUATION

Stocks of Raw material, Packing, Stores spares and Finished Goods are valued on first in first out basis, at lower of cost or market value, as per past practice.

5. FOREIGN CURRENCY TRANSLATION

Transactions in foreign exchange are accounted at the Exchange rate prevailing on the date of the transaction. Monetary items denominated in foreign currencies are converted at the Exchange rate as at the Balance Sheet date. The Exchange differences if any arising on such conversions of brought forward balances are recognized as income or expense in the Profit and Loss Account in the year of such conversion.

6. AMORTISATION OF MISCELLANEOUS EXPENDITURE

Deferred Revenue Expenses are amortized in ten equated annual installments.

7. INVESTMENTS

Investments are all long term and are stated at cost

8. TAXES ON INCOME CURRENTTAX

Provision for Income Tax is based on assessable profits of the company as computed in accordance with the relevant provision of the Income Tax Act, 1961 for the year ending 30,h June 2010.

DEFERRED TAX

Deferred tax is provided using the liability method in respect of the tax effect arising from all material timing differences between the accounting and tax treatment of income and expenditure which are expected with reasonable probability to crystallize in foreseeable future. Deferred tax assets are recognized in the financial statements only to the extent of and when such benefits are reasonably expected to be realized in the near future.

9. ACCOUNTING STANDARDS

The Company follows all the accounting standards as specified Under Section 211 (3C) of the Companies Act, 1956.

10. SALES

Sales are inclusive of Excise Duty, but exclusive of Sales Tax/VAT and net of returns if any.

11. KEYMAN INSURANCE

Premiums paid towards Keyman Insurance are charged as revenue during the year of payment and maturity proceeds are taken as income in the year of receipt. No asset is created during the year of payment.

12. EXCISE DUTY, CENVAT AND VAT

a) Liability for Excise Duty on finished goods is accounted as and when goods are cleared from the factory premises. However provision for excise duty payable for manufactured finished goods in stock is made at the Balance Sheet date.

b) CENVAT, if any availed on Capital goods or on purchases is not included in the cost of asset or goods.

c) VAT availed on purchases does not form part of cost of goods.

d) Unutilized balances if any of CENVAT and VAT at the year end are carried forward under the head loans and advances.

13. PREFERENTIAL ALLOTMENTS

Pursuance to the approval of the shareholders at the EGM held on 25th June2009 , 26,00,000 convertible share warrants were allotted on 7,h August 2009 to the promoters / promoters group companies on preferential basis @ Rs. 14.58 per warrant aggregating to Rs. 3,79,08,000/-.

On exercise of option ( within 18 months ) on 31s March 2010,6,81,702 Equity Shares of Rs.10/- each were allotted to the warrant holders at a premium of Rs.4.58 per share to rank pari-passu. Thus during the year, Issued, Subscribed & Paid up Share Capital has increased by Rs. 68,17,020/- and Share Premium has increased by Rs.31,22,196/-.

14. WHOLLY OWNED SUBSIDIARY

With the expansion of issued, subscribed & paid up capital of MVL Telecom Ltd.(formerly called Media Industries Ltd.) from Rs.252 lacs to 711.88 lacs with effect from 1s< July,2009, MVL Telecom Ltd. has ceased to be subsidiary of the company w.e.f. the said date.


Jun 30, 2009

1. METHOD OF ACCOUNTING

The accounts of the Company are prepared under the historical cost convention using the accrual method of accounting unless otherwise stated hereafter. Accounting policies not specifically referred to are consistent with generally accepted accounting principles.

2. RETIREMENT BENEFITS

a) Provision for Gratuity Liability is made on actuarial valuation basis as per the requirement of Accounting Standard (AS - 15).

b) The Companys contributions to the provident Fund and Pension Funds are charged as revenue expenditure.

3. FIXED ASSETS AND DEPRECIATION

a) Fixed assets are stated at cost net of accumulated depreciation.

b) Depreciation is provided on straight-line method at the rates specified under Schedule XIV of the Companies Act, 1956.

c) Depreciation on additions to/deletion from Fixed Assets made during the year is provided on pro rata basis from/upto the date of such addition/ deletion, as the case may be.

4. INVENTORY VALUATION

Stocks of Raw material, Packing, Stores spares and Finished Goods are valued on first in first out basis at lower of cost or market value, as per past practice.

5. FOREIGN CURRENCY TRANSLATION

Transactions in foreign exchange are accounted at the Exchange rate prevailing on the date of the transaction. Monetary items denominated in foreign currencies are converted at the Exchange rate as at the Balance Sheet date. The Exchange differences arising on such conversions are recognized as income or expense in the Profit and Loss Account.

6. AMORTISATION OF MISCELLANEOUS EXPENDITURE

Deferred Revenue Expenses are amortized in ten equated annual installments.

7. INVESTMENTS

Investments are all long term and are stated at cost.

8. TAXES ON INCOME

CURRENT YEAR TAXATION

Provision for Income Tax is based on assessable profits of the company as computed in accordance with the relevant provision of the Income Tax Act, 1961 for the year ending 30th June 2009.

DEFERRED TAX

Deferred taxation is provided using the liability method in respect of the tax effect arising from all material timing differences between the accounting and tax treatment of income and expenditure which are expected with reasonable probability to crystallize in foreseeable future. Deferred tax assets are recognized in the financial statements only to the extent of and when such benefits are reasonably expected to be realizable in the near future.

9. ACCOUNTING STANDARDS

The Company follows all the accounting standards as specified Under Section 211 (3) (C) of the Companies Act, 1956.

10. SALES

Sales are inclusive of Excise Duty, but exclusive of Sales Tax/V AT.

11. KEYMAN INSURANCE

All premiums paid towards Keyman Insurance are charged as revenue during the year of payment and maturity proceeds are taken as income in the year of receipt. No asset is created during the year of payment.

12. EXCISE DUTY, CENVAT AND VAT

a) Liability for Excise Duty on finished goods is accounted as and when goods are cleared from the factory premises. However provision for excise duty payable for manufactured finished goods in stock is made at the Balance Sheet date.

b) CENVAT, if any on Capital goods is credited to the asset account and Cenvat claimed on purchases is credited to the raw material/goods account.

c) VAT availed on purchases is credited to the respective goods account during the year of purchase.

 
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