(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 is engaged in the business of
 Consumer Electronics Goods/ Accessories.
 
 (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) Change in accounting policies
 
 Presentation and disclosure of financial statements
 
 During the year ended 30th June, 2012, the revised Schedule VI notified
 under the Companies Act, 1956 has become applicable to the company, for
 preparation and presentation of its financial statements. The adoption
 of revised Schedule VI does not impact recognition and measurement
 principles followed for preparation of financial statement. However, it
 has significant impact on presentation and disclosures made in the
 financial statements. The company has also reclassified the previous
 year figures in accordance with the requirement applicable in the
 current year.
 
 (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 on tangible assets
 
 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
 
 Deferred revenue expenses brought forward are being amortised in ten
 equated annual installments
 
 (h) Investments
 
 i) Non-current investments in unquoted equity shares, government
 securities and mutual funds are all long term, which are stated at
 cost.
 
 ii) Non Current investments in quoted shares are stated at lower of
 cost or fair value.
 
 (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 of the company
 as computed in accordance with the relevant provision of the Income Tax
 Act, 1961 for the year ending 30th June, 2012.
 
 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 /E©mployee 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) Provisions for gratuity and Leave Encashment are made on actuarial
 valuation, as per Accounting Standard (AS)-15.
 
 (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:-