1. Company Overview
Globe Multiventures Limited (Formerly: Globe Commercials Limited) is engaged in Trading in all kinds of
Merchandise and in Particular trading in all sorts of agriculture produce such as Grains, Pulses, etc.,
The Company is a Public Limited Company incorporated in India, under the provisions of the Companies
Act, 1956, having its registered office at Mumbai, Maharashtra, India.And corporate office at
Hyderabad,Telangana,India.
2. Basis of preparation
These financial statements have been prepared in accordance with the Generally Accepted Accounting
Principles in India ('Indian GAAP') to comply with the Accounting Standards specified under Section 133 of
the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant
provisions of the Companies Act, 2013. The financial statements have been prepared on an accrual basis
and under the historical cost convention. The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year, except for the change in accounting policy explained
below
3. Significant Accounting Policies
i) Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent asset
and liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during reporting period. Examples of such estimates include estimates of expected contract costs to be
incurred to complete contracts, provision for doubtful debts, further obligations under employee retirement
benefit plans and estimated useful life of fixed assets actual results could differ from these estimates. Any
changes in estimates are adjusted prospectively.
ii) Revenue Recognition
Revenue from the sale of goods is recognized at the point of dispatch of materials to customers; income
from turnkey services and Consultancy services are accounted on the basis of receipt of the contracts.
iv) Fixed Assets
Fixed Assets of the Company are stated in the books of account and disclosed in annual accounts at
Historical Cost, which includes incidental cost related to acquisition and installation.
v) Inventories
Inventories are valued at lower of cost and net realizable value. Cost is determined on First in First out
basis. Cost includes freight, non-refundable taxes and all other incidental expenses incurred to bring the
inventories up to the Stores.
vi) Depreciation
Depreciation on Fixed Assets is provided using estimated useful life of the assets upto 95% of original
cost of assets at the rates as derived under Schedule II of the Companies Act, 2013.
vii) Taxes on Income
Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected
to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws
prevailing in the respective tax jurisdictions where the company operates. The tax rates and tax laws used
to compute the amount are those that are enacted or substantively enacted, at the reporting date.
The Accounting Standard 22"- Accounting for taxes on income, requires recognition of Defferred Tax
Asset/Liability based on management estimation of effect reversible timing difference arising out of financial
books and tax computation as per relevant Act. In the opinion of management no material reversible timing
differences arise out of company's financials and it its tax assessment and accordingly no deferred tax
Asset or Liability has been recognised in the books of accounts. The Accounting Standard 22"-
Accounting for taxes on income, requires recognition of Defferred Tax Asset/Liability based on
management estimation of effect reversible timing difference arising out of financial books and tax
computation as per relevant Act. In the opinion of management no material reversible timing differences
arise out of company's financials and it its tax assessment and accordingly no deferred tax Asset or Liability
has been recognised in the books of accounts.
viii) Earnings per share
Basic earnings per share are calculated 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. For the
purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for
the effects of all dilutive potential equity shares.
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