1. Corporate Information:
The Company was originally incorporated on
November 8, 2002 vide Certificate of Incorporation
bearing Registration Number 156371 issued by the
Registrar of Companies, Mumbai with the name & style
of MARK-O-LINE TRAFFIC CONTROLS PRIVATE LIMITED.
The company changed its name to MARKOLINES
TRAFFIC CONTROLS PRIVATE LIMITED with approval
of Central Government and ROC dated March 12,
2018 and again company converted to public limited
company and changed its name to MARKOLINES
PAVEMENT TECHNOLOGIES LIMITED with approval of
Central Government and ROC dated August 10, 2021.
The company has passed shareholders resolution
to change its name to "Markolines Pavement
Technologies Limited" vide EGM dated 17th August,
2021. The Company is engaged in the business
of providing highway operations & maintenance
services. Since inception the Company has shown
increasing trend in the revenues by endeavoring
to reach consumers at large by providing quality
products.
2. SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of Preparation:
The financial statements of the Company have been
prepared in accordance with generally accepted
accounting principles in India (Indian GAAP). The
Company has prepared these financial statements to
comply in all material respects with the accounting
standards notified under section 133 of the Companies
Act 2013, read together with paragraph 7 of the
Companies (Accounts) Rules, 2014. The financial
statements have been prepared on an accrual
basis and under the historical cost convention. The
accounting policies have been consistently applied
except where specifically stated in financial statement
and notes to accounts of the non-conformity with the
relevant Accounting Standard.
(b) Significant Accounting Policies:
(a) Use of Estimates: The preparation of financial
statements in conformity with Indian GAAP requires
management to make judgments, estimates and
assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent
liabilities at the end of the reporting period and the
reported amounts of revenue and expenses during
the reported period. Although these estimates
are based on management's best knowledge of
current events and actions, uncertainty about
these assumptions and estimates could result in
the outcomes requiring a material adjustment
to the Carrying amounts of Assets or Liabilities in
future periods.
(b) Property, Plant & equipment and Intangible
assets: Property, Plant & equipment and
Intangible assets are stated at cost of acquisition
or construction less accumulated depreciation
and impairment loss, if any. The cost of an asset
comprises of its purchase price and any directly
attributable cost of bringing the assets to working
condition for its intended use. Expenditure
on additions, improvements and renewals is
capitalized and expenditure for maintenance and
repairs is charged to profit and loss account.
Depreciation is provided on Written Down value
basis based on life assigned to each asset in
accordance with Schedule II of the Act or as per
life estimated by the Management.
An asset is treated as impaired asset when the
carrying cost of the asset exceeds its recoverable
value. An impairment loss is charged to the profit
& loss account is identified as impaired. The
impairment loss recognized in prior accounting
period is reversed if there has been changed in the
estimate of recoverable amount.
(c) Revenue Recognition: Revenue is recognized
when it is earned and no significant uncertainty
exists as to its realization or collection. Revenue
from sale of goods or services are recognized
on delivery of the products or services, when all
significant contractual obligations have been
satisfied, the property in the goods is transferred
for price, significant risk and rewards of ownership
are transferred to the customers and no effective
ownership is retained.
In the financial statement, revenue from operation
does not include Indirect taxes like sales tax and/
or Goods & service tax.
(d) Investments: Investments, which are readily realizable and intended to be held for not more than one
year from the date on which such investments are made, are classified as current investments. All other
investments are classified as long-term investments.
On initial recognition, all investments are measured at cost. The cost comprises price and directly attributable
acquisition charges such as brokerage, fees and duties.
Current investments are carried in the financial statements at lower of cost and fair value determined on an
individual investment basis. Long term investments are carried at cost. However, provision for diminution in
value is made to recognize a decline other than temporary in the value of Investments.
On disposal of investment, the difference between its carrying amount and net disposal proceeds are charged
or credited to the statement of profit and loss.
(e) Inventories: Inventory of W-I-P and Raw materials are valued at lower of cost and net realizable value.
Cost is determined on FIFO basis.
Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of
completion and estimated costs necessary to make the sale.
There is no stock of finished goods lying with the company.
(f) Employee Benefits: Retirement benefit in the form of provident fund is a defined contribution scheme.
The contribution to the provident fund is charged to the statement of profit and loss for the year when an
employee renders the related services.
During the year gratuity payable to employees is NIL based upon actuarial valuation report.
Leave encashment to the employees are accounted for as & when the same is claimed by eligible employees.
I. Defined contribution plans
The Company has classified the various benefits provided to employees as under:
a. Employee State Insurance Fund
b. Employee Provident Fund
The expense recognised during the period towards defined contribution plan -
II. Defined benefit plans
Gratuity
The Company should provide for gratuity for employees in India as per the Payment of Gratuity Act, 1972.
Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of
gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed
proportionately for 15 days salary multiplied for the number of years of service, subject to a payment ceiling
of INR 20,00,000/-.
Based on the actuarial valuation obtained in this respect, the following table sets out the details of the
employee benefit obligation as at balance sheet date:
(g) Taxation: Tax expenses comprises of 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 or
substantively enacted at the reporting date.
Deferred Tax Assets or Deferred Tax Liability is recognized on timing difference being the difference between
taxable incomes and accounting income. Deferred Tax Assets or Deferred Tax Liability is measured using the
tax rates and tax laws that have been enacted or substantively enacted at the Balance Sheet date. Deferred
Tax Assets arising from timing differences are recognized to the extent there is a reasonable certainty that the
assets can be realized in future.
(h) Borrowing Cost: Borrowing Cost includes interest and amortization of ancillary costs incurred in connection
with the arrangement of borrowings. Borrowing costs directly attributable to the acquisition, construction or
production of an asset that necessarily takes a substantial period of time to get ready for its intended use or
sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the
period they occur.
(i) Segment Reporting: The Company is engaged in business of providing services of infrastructure operations
like road and related infrastructure construction and road maintenance. Considering the nature of Business
and Financial Reporting of the Company, the Company is operating in following two Segments:
i. Highway maintenance services
ii. Specialized construction services
Hence segment reporting is applicable to the company.
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