33. Company Overview
Company was incorporated as Model Blinds and Components Private Limited under the provisions of the Companies Act, 1956 vide certificate of
incorporation dated October 04, 1996, issued by Registrar of Companies, Gujarat, Ahmedabad. Subsequently, the name of Company was
changed from Modele Blinds and Components Private Limited to Accumax Interior Products Private Limited vide shareholder's approval on June
12, 2000 and certificate of incorporation dated June 30, 2000, issued by Registrar of Companies, Gujarat, Ahmedabad. Further, the name of
Company was changed from Accumax Interior Products Private Limited to Marvel Decor Private Limited vide shareholder's approval on December
04, 2017 and vide fresh certificate of incorporation dated January 05, 2018, issued by Registrar of Companies, Gujarat, Ahmedabad.
Subsequently, the name of our Company was changed to Marvel Decor Limited pursuant to conversion into a public company vide shareholder's
approval on January 05, 2018 and fresh certificate of incorporation dated January 23, 2018, issued by Registrar of Companies, Gujarat,
Ahmedabad
The Company’s equity shares are listed on National Stock Exchange with effect from 23rd March, 2018.
The company is presently in the business of window covering fashion blinds, component and supplying it to the company making window covering
fashion blinds.
34. Basis of Preparation of financial statements
The Company’s financial statements have been prepared in accordance with Indian Accounting Standards as notified by Ministry of Corporate
Affairs under sections 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and
Companies (Indian Accounting Standards) Amendment Rules, 2016.
35. Basis of accounting
a. Basis of Preparation
The financial statement of the company 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 Companies Act, 2013 (“the Act 2013"). The financial statements
have been prepared on accrual basis under the historical cost conventions. The accounting policies adopted in the preparation of the financial
statements are consistent with those followed in previous year.
All assets and liabilities have been classified as current or non-current as per the company's normal operating cycle and other criteria set out in
Schedule III of the Companies Act, 2013. Based on the nature of products and the time between the acquisition of the assets for processing and
realization in cash and cash equivalent, the Company has ascertained its operating cycle as 12 months for the purpose of current / non-current
classification of assets and liabilities.
b. Revenue recognition
Sale of Goods:
Revenue from the sale of goods is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer as per
the terms of the contracts, usually on delivery of the goods, and no significant uncertainty exists regarding the amount of the consideration that will
be derived from the sale of goods. It also includes excise duty, if applicable, and excludes value added tax / sales tax. Revenue from the sale of
goods is measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates.
Interest Income:
Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Company and the amount of
income can be measured reliably.
c. Fixed assets:
Fixed Assets are shown at Historical cost as reduced by accumulated depreciation thereon. Cost of fixed Assets includes cost of purchase and/or
construction as increased by necessary expenditure incurred to make them ready for use in the business. Useful life of assets has determined by
management as per Company Act, 2013.
Fixed assets (comprising of tangible assets) are stated on cost. The cost includes cost of assets, freight, taxes (Net of GST/CENVAT) and other
incidental expenses relating to the acquisition and installation.
d. Inventories
Inventories are valued at cost and net realizable value, whichever is lower. For this purpose, basis of ascertainment of cost is as under:
- Raw Material and packing materials: At cost on First-in-First-out basis
- Finished goods: Raw material and other related overhead cost exclusive of transition credit of Goods and Service Tax
- Trading Goods: All landed cost plus overhead cost, determined on FIFO basis.
e. Depreciation
The company is charging depreciation on Fixed Assets as per Written down Value method over estimated useful lives of the assets considering
the guidelines of Part C of Schedule II to the Companies Act, 2013.
f. Cash and Cash Equivalents
In the cash flow statement, cash and cash equivalents include cash in hand, demand deposits with banks, other short-term highly liquid
investments with original maturities of three months or less.
g. Taxes on income
Current Tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or
receivable in respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected to be paid or received after
considering the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted by the
reporting date.
Deferred Tax
Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting
purposes and the corresponding amounts used for taxation purposes. Deferred tax is also recognized in respect of carried forward tax losses and
tax credits. Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted
by the balance sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be
recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognized as income or expense in the
period that includes the enactment or the substantive enactment date. A deferred income tax asset is recognized to the extent that it is probable
that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized. The company offsets
current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to
settle on a net basis, or to realize the asset and settle the liability simultaneously. The income tax provision for the interim period is made based on
the best estimate of the annual average tax rate expected to be applicable for the full financial year.
h. Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average
number of equity shares outstanding during the year.
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 is adjusted for the effects of all dilutive potential equity shares.
i. Gratuity and other Employee Benefits
All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. Benefits such
as salaries, wages etc. and the expected cost of ex-gratia are recognized in the period in which the employee renders the related service. A liability
is recognized for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of
past service provided by the employee and the obligation can be estimated reliably.
The Company has not made any provision in respect of gratuity benefit to employees. Hence Gratuity will be recognized on payment basis as and
when payment will be made.
j. Foreign currency reinstatement and translation
Transactions in foreign currencies are initially recorded by the Company at rates prevailing at the date of the transaction. Subsequently monetary
items are translated at closing exchange rates as on balance sheet date and the resulting exchange difference recognized in statement of profit
and loss. Differences arising on settlement of monetary items are also recognized in statement of profit and loss.
k. Treatment of Prior period, Extraordinary items and change in accounting Policies
- Any material items (other than those arising out of over / under utilization of earlier years) arising as a result of error or omission in preparation
of earlier years Financial Statements are separately disclosed.
- Any material gains/losses, which arise from the events and transactions which are distinct from ordinary activities of the Company are
separately disclosed.
36. Preliminary expenses
At present there is No preliminary expenditure pending for the written off.
37. Presentation of Financial Statements
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