NOTE 1 - NOTES FORMING PARTS OF BALANCE SHEET & PROFIT AND LOSS ACCOUNTS I. SIGNIFICANT ACCOUNTING POLICIES Company Overview MFL India Ltd. is a company rendering logistics and supply chain services all over the country. The Indian logistics & supply chain sector is increasingly becoming attractive to foreign and domestic operators as well as strategic and financial investors. The company has the mission to extend its operations to every nook and corner of the country in the years to come as the logistics & supply chain sector is also growing with the growing India. The Company is a public limited company incorporated on 28.11.1981 in India and has its registered at C-4/28, Acharya Niketan, Mayur Vihar, New Delhi-110075, India. The Company has its listing on BSE Limited. Significant Accounting Policies A. Basis of brparation of financial Statements These financial statements have been brpared 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 brpared on accrual basis under the historical cost convention, B. Use of Estimates The brparation 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 debrciation 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 brviously assessed standard of performance. D. Debrciation and Amortization Debrciation is provided on the straight line method. Debrciation is provided based on useful life of the assets as brscribed in Schedule II to the Companies Act, 2013. For additions and disposals, debrciation 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 debrciation 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 brsent 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 brsent 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. II. NOTES TO ACCOUNTS 1 The company had given deposit of Rs. 1,637,413 to Excise & Sales Tax Department. As these were not refunded. It has been written off in profit & loss account. 2 The performance Bank Guarantee amounting to Rupees 39,09,550/- have been issued to parties. 3. In the opinion of management, Current Assets, Loans and advances have a value on realization in the ordinary course of business at least equal to that sated in the Balance Sheet. 4. Capital and other commitments: The estimated amount of contracts remaining to be executed on capital account and not provided for as at 31st March, 2015 is NIL (Previous Year:-NIL) 5. Debit and credit balances of suppliers, customers and other are subject to confirmation and reconciliation. 6. The earning per share, basic as well as diluted is Rs 0.20 per share. 7. Notes 1-20 form as integral Para of the accounts and have been authenticated as such. 8. Employee Benefits Disclosures required under Accounting Standard 15 The provision of the Gratuity Act is not applicable to the company. The company does not have any employee more than five year old. 9. Previous Year's figures have been regrouped, reclassified and rearranged in pursuant of Schedule III wherever necessary to correspond with the figures of the current year. In terms of our report of even attached FOR AM & Associates Chartered Accountants Firm Reg. No. 014444N Deepti Garg Partner Membership No. 527062 For and on behalf of Board of Directors For MFL India Limited Anil Thukral Managing Director DIN 01168540 Sheetal Thukral Whole Time Director DIN 01168506 Arun Kapoor Chief Financial Officer PAN: AMLPK1928N Kulbhushan Verma Company Secretary A36057 Place: New Delhi Date: May 27, 2015 |