(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
(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
(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
iii) Individual Assets costing upto Rs. 5000.00 are depreciated @ 100%
in the year of purchase.
Deferred revenue expenses brought forward are being amortised in ten
equated annual installments
i) Non-current investments in unquoted equity shares, government
securities and mutual funds are all long term, which are stated at
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.
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
(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:-