Accounting Policies of Multipurpose Trading & Agencies Ltd. Company

Mar 31, 2024

3.1 Basis of preparation

The financial statements have been prepared on the historical cost basis except for certain financial
instruments that are measured at fair value at the end of each reporting period, as explained in the
accounting policies mentioned below.

Historical cost is generally based on the fair value of the consideration given in exchange for goods
and services.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date, regardless of whether that price is
directly observable or estimated using another valuation technique.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or
3 based on the degree to which the inputs to the fair value measurements are observable and the
significance of the inputs to the fair value measurement in its entirety, which are described as follows:

a. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities
that the entity can access at the measurement date;

b. Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for
the asset or liability, either directly or indirectly; and

c. Level 3 inputs are unobservable inputs for the asset or liability.

3.2 Current/non-current classification

The Company presents assets and liabilities in the balance sheet based on current / non-current
classification. As asset is treated as current when it is:

a. Expected to be realised or intended to be sold or consumed in normal operating cycle;

b. Held primarily for the purpose of trading;

c. Expected to be realised within twelve months after the reporting period; or

d. Cash and cash equivalents unless restricted from being exchanged or used to settle a liability for
at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is treated as current when:

a. It is expected to be settled in normal operating cycle;

b. It is held primarily for the purpose of trading;

c. It is due to be settled within twelve months after the reporting period, or

d. There is no unconditional right to defer the settlement of the liability for at least twelve months
after the reporting period.

All other liabilities are classified as non-current.

3.3 Revenue recognition

Revenue is recognised to the extent it is probable that the economic benefits will flow to the company
and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration
received or receivable at the fair value of the consideration received or revceivable excluding taxes or
duties collected on behalf of the government and reduced by any rebates and trade discount allowed .

3.4 Leasing

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the
risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

3.4.1 As lessor

Receipts from operating leases are recognised in the Statement of Profit and Loss on a straight-line
basis over the term of the relevant lease. Where the lease payments are structured to increase in line
with expected general inflation to compensate for expected inflationary cost increases, lease income is
recognised as per the contractual terms.

3.4.2 As lessee

Payments for operating leases are recognised in the Statement of Profit and Loss on a straight-line
basis over the term of the relevant lease. Where the lease payments are structured to increase in line
with expected general inflation to compensate for the lessor''s expected inflationary cost increases,
lease expense is recognised as per the contractual terms. Contingent rentals arising under operating
leases are recognised as an expense in the period in which they are incurred.

3.5 Borrowing costs

Borrowing cost that are directly attributable to the acquisition or construction of a qualifying asset
(including real estate projects) are considered as part of the cost of the asset/ project. All other
borrowing costs are treated as period cost and charged to the statement of profit and loss in the year
in which incurred.

3.6 Investment in subsidiaries, associate and joint ventures

The Company does not have any investments in subsidary , associates and joint ventures.

3.7 Foreign currency translation

3.7.1 Functional and presentational currency

The Company''s financial statements are presented in Indian rupees (INR/Rs.), which is also the
Company''s functional currency. Functional currency is the currency of the primary economic
environment in which an entity operates and is normally the currency in which the entity primarily
generates and expends cash.

3.8 Taxation

Income tax expense for the year comprises of current tax and deferred tax.

3.8.1 Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''profit
before tax'' as reported in the statement of profit and loss because of items of income or expense that
are taxable or deductible in other years and items that are never taxable or deductible. The Company''s
current tax is calculated in accordance with the Income-tax Act, 1961, using tax rates that have been
enacted or substantially enacted by the end of the reporting period.

3.8.2 Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax bases used in the computation of
taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences.
Deferred tax assets are generally recognised for all deductible temporary differences to the extent that
it is probable that taxable profits will be available against which those deductible temporary differences
can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference
arises from the initial recognition (other than in a business combination) of assets and liabilities in a
transaction that affects neither the taxable profit nor the accounting profits.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of
the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each
reporting date and are recognised to the extent that it has become probable that future taxable profits
will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year
when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted at the reporting date.

3.8.3 Current and deferred tax for the year

Current and deferred tax are recognised in profit or loss, except when they relate to items that are
recognised in other comprehensive income or directly in equity, in which case, the current and
deferred tax are also recognised in other comprehensive income or directly in equity respectively.

3.9 Employee benefits

3.9.1 Short term employee benefits

Liabilities recognised in respect of short-term employee benefits in respect of wages and salaries,
performance incentives, leaves etc. are measured at the undiscounted amount of the benefits expected
to be paid in exchange for the related service.

3.9.2 Long term employee benefits

Accumulated leaves expected to be carried forward beyond twelve months, are treated as long-term
employee benefits. Liability for such long term benefit is provided based on the actuarial valuation
using the projected unit credit method at year-end.

3.9.3 Defined contribution plan

The Company''s contribution to provident fund and employee state insurance scheme are considered as
defined contribution plans and are charged as an expense to the Statement of Profit and Loss based on
the amount of contribution required to be made.

3.9.4 Defined benefit plan

For defined benefit plan in the form of gratuity, the cost of providing benefits is determined using the
projected unit credit method, with actuarial valuations being carried out at the end of each annual
reporting period. Remeasurement, comprising actuarial gains and losses, is reflected immediately in
the balance sheet with a charge or credit recognised in other comprehensive income in the period in
which they occur. Remeasurement recognised in other comprehensive income is not reclassified to
profit or loss in subsequent periods. Past service cost is recognised in profit or loss in the period of a
plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period
to the net defined benefit liability or asset.

3.10 Property, plant and equipment

3.10.1 Recognition and Measurement

Property, plant and equipment are stated at cost of acquisition or construction less accumulated
depreciation and any recognised impairment losses, and include interest on loans attributable to the
acquisition of qualifying assets upto the date they are ready for their intended use. Freehold land is
measured at cost and is not depreciated.

3.10.2 Transition to Ind AS

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its
property, plant and equipment recognised as of April 1, 2017 (transition date) measured as per the
previous GAAP and use that carrying value as its deemed cost as of the transition date.

3.10.3 Depreciation

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its
estimated residual value.

Depreciation on tangible fixed assets (other than freehold land) is recognised on written down value
method as per the useful life prescribed in Schedule II to the Companies Act, 2013.

Estimated useful lives of the assets are as follows:

Plant and machinery 12 - 15 years

Air conditioners and refrigerators 15 years

Computers and information technology equipments 3 - 6 years

Furniture and fixtures 10 years

Office equipments 5 years

Motor vehicles 8 - 10 years

Freehold land is not depreciated.

Depreciation on car parking spaces is not charged during the year as the management treats the same
as Land and not Building.

The residual values, useful lives and methods of depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted prospectively, if appropriate.

An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the
disposal or retirement of an item of property, plant and equipment is determined as the difference
between the sale proceeds and the carrying amount of the asset and is recognised in the statement of
profit or loss.

3.11 Intangible assets

3.11.1 Recognition and Measurement

Intangible assets are stated at cost of acquisition or construction less accumulated amortisation and
any recognised impairment losses, and include interest on loans attributable to the acquisition of
qualifying assets upto the date they are ready for their intended use.

3.11.2 Transition to Ind AS

On transition to Ind AS, the Company has elected to continue with the carrying value of its intangible
assers recognised as of April 1, 2017 (transition date) measured as per the previous GAAP and use
that carrying value as its deemed cost as of the transition date.

3.11.3 Amortisation

Amortisation on intangible assets is recognised on straight line method over the estimated useful life,
not exceeding 3 years.

The residual values, useful lives and method of depreciation of intangible assers are reviewed at each
financial year end and adjusted prospectively, if appropriate.

An item of intangible asset is derecognised upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or
retirement of an item of intangible asset is determined as the difference between the sale proceeds
and the carrying amount of the asset and is recognised in the statement of profit or loss.

3.12 Impairment of tangible and intangible assets

The management periodically assesses whether there is any indication that an asset may have been
impaired. If any such indication exists, the recoverable amount is estimated in order to determine the
extent of impairment loss (if any). An impairment loss is recognized wherever the carrying value of an
asset exceeds its recoverable amount. Recoverable amount is higher of an asset''s net selling price and
its value in use. Value in use is the present value of estimated future cash flows expected to arise from
the continuing use of an asset and from its disposal at the end of the useful life.

Impairment losses recognized in prior years are reversed when there is an indication that the
impairment losses recognized earlier no longer exist or have decreased. Such reversals are recognized
as an increase in the carrying amount of the asset to the extent that does not exceed the carrying
amounts that would have been determined (net of depreciation) had no impairment loss been

3.13 Inventories

As the company is in the service sector and don''t have any inventories no further disclosure is required

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Mar 31, 2014

I. SYSTEM OF ACCOUNTING

The Company adopts the Mercantile System of Accounting in the preparation of Accounts.

ii. FIXED ASSETS

There are no Fixed Assets in the Company.

iii. RECOGNITION OF INCOME & EXPENDITURE

Revenues/ incomes and Costs/ Expenditures are generally accounted for on accrual basis.

2. NOTES ON ACCOUNTS:-

i. In the opinion of the Board:-

a. The current assets, loans and advances are approximately of the value stated, if realised in the ordinary course of business.

b. The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.

ii. Deferred Tax Asset - NIL

iii. In absence of taxable profits, no provision for tax liability has been made.

iv. Related Party Discloser - Loans availed or Advances granted with the Following entities that are part of promoter group companies:

v. Auditors information pursuant to the part II of the Schedule - VI to the Companies Act, 1956 (as certified by the management and relied upon by the auditors) is as follows:-

Auditor''s remuneration

Details 2013-2014 2012-2013

Audit Fee 22,472 19,102

Other Matters

Total 22,472 19,102

vi. The company being a trading concern, quantitative information with regard to the licensed capacity, installed capacity and production of principle items manufactured are not applicable.

3. Previous year figures have been regrouped/ recast, wherever necessary.

4. Information pursuant to the provision of Part-ll of Schedule-VI of the Companies Act, 1956 should be read as Nil/ Not Applicable.

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Mar 31, 2013

I. SYSTEM OF ACCOUNTING

The Company adopts the Mercantile System of Accounting in the preparation of Accounts.

ii. FIXED ASSETS

There are no Fixed Assets in the Company.

iii. RECOGNITION OF NCOME & EXPENDITURE

Revenues/ Incomes and Costs/ Expenditures are generally accounted for on accual basis.

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Mar 31, 2012

I. SYSTEM OF ACCOUNTING

The Company adopts the Mercantile System of Accounting in the preparation of Accounts. ''

ii. FIXED ASSETS

There are no Fixed Assets in the Company.

iii. RECOGNITION OF INCOME & EXPENDITURE

Revenues/ Incomes and Costs/ Expenditures are generally accounted for on accrual basis.

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Mar 31, 2010

I. SYSTEM OF ACCOUNTING

The Company adopts the Mercantile System of Accounting in the preparation of Accounts.

ii. FIXED ASSETS

Fixed Assets are stated at cost of Acquisition less depreciation determined on the written down value method at the rates specified in Schedule - XIVof the Companies Act, 1956. However, there are no Fixed Assets as at the end of the accounting period.

iii. RECOGNITION OF INCOME & EXPENDITURE

Revenues Incomes and Costs Expenditures are generally accounted for on accrual basis.