ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ Monarch Surveyors and Engineering Consultants Ltd.

SIGNIFICANT ACCOUNTING POLICIES AND OTHER DISCLOSURES

CORPORATE INFORMATION

Monarch Surveyors and Engineering Consultants Limited (Formerly Known as Monarch Surveyors and Engineering Consultants Pvt. Ltd.) (or "the company) was incorporated in 1999 having its registered office at "Monarch House", CTS No. 434/1, Near Kawade Petrol Pump, Hadapsar (NV)Haveli, Pune-411036 is carrying on the business of providing civil engineering consultancy services including but not limited to Land Surveying, Topographic and other engineering surveying using modern techniques, Engineering design, Detailed Project Report, Cost Estimates, Financial & Economic appraisal, Project Management Consultancy, Town planning , Land use and E-governance portal services for aiding government in planning civil construction jobs of all type including roads, bridges, buildings, Railways, City Planning, etc.

1 Basis of Preparation of Financial Statements

The Company follows the mercantile system of accounting and recognises Income and Expenditure on an accrual basis except those with significant uncertainties.

These Financial statements have been prepared under the historical cost convention. These costs are not adjusted to change in the purchasing power of money.

Accounting policies not specifically referred to otherwise are consistent with and in consonance with the generally accepted principles as per accounting standards issued by The Institute of Chartered Accountants of India.

These financial statements have been prepared in Indian Rupee (?) which is the functional currency of the Company. Foreign currency transactions are recorded at exchange rates prevailing on the date of the transaction. Foreign currency denominated monetary assets and liabilities are retranslated at the exchange rate prevailing on the balance sheet dates and exchange gains and losses arising on settlement and restatement are recognised in the statement of profit and loss.

The preparation of financial statement requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/ materialised.

These financial statements are presented in Indian Rupees, which is also the Company''s functional currency.

2 Property, Plant & Equipments and Intangible Assets

Own Assets : Fixed Assets are stated at cost less accumulated depreciation. Cost includes directly attributable to the acquisition of the items including its purchase price, import duties and non-refundable purchase taxes, after deducting trade discounts and rebates, any directly attributable cost of bringing the item to its working condition for its intended use and estimated costs of dismantling and removing the item and restoring the site on which it is located. Subsequent expenditure related to an item of tangible fixed asset is capitalised only if it increases the future benefits from the existing assets beyond its previously assessed standards of performance.

If significant parts of an item of fixed assets have different useful lives, then they are accounted for as separate items (major components) of Fixed Asset. Any gain or loss on disposal of an item of Fixed Asset is recognised in profit or loss. Gains and losses on disposal of tangible assets are determined as the difference between net sales proceeds and the carrying amount, and are presented in the Statement of Profit and Loss.

Impairment of Assets : The Company assesses, at each Balance Sheet date whether there is any indication of impairment of asset. An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. There is no impairment loss identified during the year.

3 Depreciation

Pursuant to Companies Act 2013, the company has applied the estimated useful lives as specified in schedule II, accordingly the unamortised carrying value is being depreciated/amortised over the revised remaining useful lives. Estimated useful lives as specified in schedule II:

4 Foreign Currency Transactions

Transactions in foreign currencies and non-monetary assets are recognised at the exchange rate prevailing on the date of the transaction. All monetary items denominated in foreign currency are converted at the year-end exchange rate. The exchange differences arising on such conversion and on settlement of the transactions are recognised within the Statement of Profit and Loss, other than those relating to depreciable capital assets which are adjusted to the cost of respective assets.

5 Investments

"Investments are classified into current investments and non-current investments. Current investments i.e. investments that are readily realizable and intended to be held for not more than a year valued at cost. Any permanent reduction in the carrying amount or any reversals of such, reductions are charged or credited to the Statement of Profit & loss Account.

Non-current investments are stated at cost. Provision for diminution in the value of these investments is made only if such decline is other than temporary, in the opinion of the management.

6 Cash and cash equivalents

Cash and Cash Equivalents comprises balances with bank , Cash in hand and Fixed deposit with maturity of less then 3 months. Deposit of maturity more then 3 months and upto 12 months are classified in other current assets and Deposits over 12 months are classified as non current investments

7 Inventories

The Company is in service industry. It does not carry any inventory of Raw Material or finished goods in the conventional manner. Unbilled Revenue is valued for the ongoing contracts based on expenses made for which invoices are not booked till date as certified and valued by management. Tax portion is considered as set off. Hence, Unbilled Revenue is valued at cost. Unbilled Revenue is worked out as per company''s policy on gross estimate basis on exact cost estimation is not possible due to peculiar nature of company''s business.

8 Revenue Recognition

Revenue from rendering of services is recognised to the extent it is probable that the economic benefits will flow to the Company, revenue can be reliably measured and when no significant uncertainty exists regarding the collectability of the same. Interest income is recognised on accrual basis.

9 Employee Benefits

Short - term employee benefits are recognized as an expense at the undiscounted amount in the profit & loss account of the year in which the related service is rendered. Post employment and other long term employee benefits are recognized as an expense in the profit & loss account for the year in which the liabilities are crystallized.

10 Earnings Per Share

Basic earnings per share is 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. The weighted average number of equity shares outstanding during the year is adjusted for events including a bonus issue, bonus element in a rights issue to existing shareholders, share split, and reverse share split (consolidation of shares). For the purpose of calculating diluted earnings per share, the net profit or loss for the year 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.

11 Contingent Liabilities and Contingent Assets

Contingent Liabilities are recognised and disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

12 Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.

All other borrowing costs are charged to Profit and Loss account.

13 Income Tax

Tax expense 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. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets on tax losses are recognised to the extent that it is probable that the underlying tax losses will be utilised against future taxable income. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.