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Accounting Policies of Transglobe Foods Ltd. Company

Mar 31, 2015

Basis of Preparation of Financial statement.

The financial statements of Transglobe Foods Limied have been prepared and presented in accodance with Generally Accepted Accounting Principles (GAAP) on the historical cost convention on the accrual basis. GAAP comprises accounting standards notified by Central Government of India under the relevant provision of Companies Act, 2013

Use of Estimates

The preparation of financial statements is in conformity with Generally Accepted Accounting Principles (GAAP) in India requires management to make estimates and assumption that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of the financial statements and reported amounts of income and expenses during the period.

Revenue Recognition:

The Company follows the mercantile system of Accounting and recognizes income and expenditure on accrual basis

Investments:

Investments are stated at cost i.e., cost of acquisition, inclusive of expenses incidental to acquisition wherever applicable.

Fixed Assets & Depreciation

Fixed Assets are stated at cost less Depreciation. Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Straight Line Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. Depreciation on addition / deletions is calculated on pro- rata with respect to date of addition / deletions.

Taxation:

The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the Company. Deferred tax asset and liability is recognized for future tax consequences attributable to the timing differences that result between the profit offered for income tax and the profit as per the financial statements. Deferred tax asset & liability are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet date.

Earnings per Share:

The earning considered in ascertaining the company's earnings per share comprises net profit after tax. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the year.

Impairment of Assets :

The carrying amount of assets is reviewed at each balance sheet date to determine if there is any indication of impairment thereof based on external / internal factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount, which represents the greater of the net selling price of assets and their value in use. The estimated future cash flows are discounted to their present value at appropriate rate arrived at after considering the prevailing interest rates and weighted average cost of capital

Gratuity:

No provision for gratuity has been made as no employee has put in qualifying period of service for entitlement of this benefit

Under the Micro Small and Medium Enterprises Development Act ,2006, certain disclourses are required to be made relating to Micro,Small and Medium Enterprises. The company is in the process of compling relevant information from its suppliers about their coverage under the Act . Since the revelant information is not presently available, no disclosures have been made in the accounts.


Mar 31, 2014

A. System of Accounting :

I. The financial statements have been prepared to comply in all material respects with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

II. The Company is a Small and Medium Sized Company (SMC) as defined in the General Instructions in respect of Accounting Standards notified under the Companies Act, 1956. Accordingly, the Company has complied with the Accounting Standards as applicable to a Small and Medium Sized Company.

III. The Company, generally, follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties.

IV. The company has suspended manufacturing activities during the year 2003-04 and there are no intentions to resume the manufacturing activities. In spite of this facts the accounts have been prepared on the basis of going concern.

B. Fixed Assets :

Fixed assets are stated at cost less accumulated Depreciation . However depreciation has been provided on written down value method as prescribed in schedule XIV to the companies Act, 1956.

C. Revenue Recognition :

Revenue from Sales is recognized when all significant risks and rewards of the ownership have been transferred to buyer.

Revenue from Services rendered is recognized on accrual basis as per contractual arrangement with the parties.

D. Income Tax :

Tax expense comprises both current and deferred taxes. Current income- tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred income taxes reflects 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 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 realised Deferred tax assets are recognised on carry forward of unabsorbed depreciation and tax losses only if there is virtual certainty that such deferred tax assets can be realised against future taxable profits. Unrecognised deferred tax assets of earlier years are re-assessed and recognised to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realised.

E. Provisions :

A provision is recognised when an enterprise has a present obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent Liability is not recognized in the financial statements but is disclosed.


Mar 31, 2013

A. System of Accounting :

I. The financial statements have been prepared to comply in all material respects with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

II. The Company is a Small and Medium Sized Company (SMC) as defined in the General Instructions in respect of Accounting Standards notified under the Companies Act, 1956. Accordingly, the Company has complied with the Accounting Standards as applicable to a Small and Medium Sized Company.

III. The Company, generally, follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties.

IV. The company has suspended manufacturing activities during the year 2003-04 and there are no intentions to resume the manufacturing activities. In spite of this facts the accounts have been prepared on the basis of going concern.

B. Fixed Assets :

Fixed assets are stated at cost less accumulated Depreciation . However depreciation has been provided on written down value method as prescribed in schedule XIV to the companies Act, 1956.

C. Revenue Recognition :

Revenue from Sales is recognized when all significant risks and rewards of the ownership have been transferred to buyer.

Revenue from Services rendered is recognized on accrual basis as per contractual arrangement with the parties.

D. Income Tax :

Tax expense comprises both current and deferred taxes. Current income- tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred income taxes reflects 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 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 realised Deferred tax assets are recognised on carry forward of unabsorbed depreciation and tax losses only if there is virtual certainty that such deferred tax assets can be realised against future taxable profits. Unrecognised deferred tax assets of earlier years are re-assessed and recognised to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realised.

E. Provisions :

A provision is recognised when an enterprise has a present obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent Liability is not recognized in the financial statements but is disclosed.


Mar 31, 2012

1) GENERAL:

i. The financial statement have generally been prepared on the historical cost conversion

ii. Accounting policies not specifically referred to otherwise are in consonance with generally accepted accounting principles.

2) Basis of Accounting:

The Company follow the Mercantile system of accounting and recognizes income and expenditure on accrual basis.

3) Fixed Assets:

Fixed assets are stated at cost of less accumulated depreciation. No depreciation has been provided during the year under consideration as no business activity was taken the year.

4) Investment: Investments are stated at cost.

5) Revenue Recognition:

Sales are stated net of trade discount, rebates and sales tax.

6) Miscellaneous Expenditure:

Expenses capitalized towards Public Issue, Product launching, Post issue expense and other Expenses are amortized at flat rate @10 % on reducing balance.

7) Deferred Tax

The deferred tax is recognized for all temporary difference subject to the consideration of prudence and at currently available rates. Deferred Tax assets are recognized only if virtual certainty that they will be realized.


Mar 31, 2011

1) GENERAL:

i. The financial statement have generally been prepared on the historical cost conversion

ii. Accounting policies not specifically referred to otherwise are in consonance with generally accepted accounting principles.

2) Basis of Accounting:

The Company follow the Mercantile system of accounting and recognizes income and expenditure on accrual basis.

3) Fixed Assets:

Fixed assets are stated at cost of less accumulated depreciation. No depreciation has been provided during the year under consideration as no business activity was taken the year.

4) Investment: Investments are stated at cost.

5) Revenue Recognition:

Sales are stated net of trade discount, rebates and sales tax.

6) Miscellaneous Expenditure:

Expenses capitalized towards Public Issue, Product launching, Post issue expense and other Expenses are amortized at flat rate @10 % on reducing balance.

7) Deferred Tax

The deferred tax is recognized for all temporary difference subject to the consideration of prudence and at currently available rates. Deferred Tax assets are recognized only if virtual certainty that they will be realized.


Mar 31, 2010

1) GENERAL:

i. The financial statement have generally been prepared on the historical cost conversion

ii. Accounting policies not specifically referred to otherwise are in consonance with generally accepted accounting principles.

2) Basis of Accounting:

The Company follow the Mercantile system of accounting and recognizes income and expenditure on accrual basis.

3) Fixed Assets:

Fixed assets are stated at cost of less accumulated depreciation. No depreciation has been provided during the year under consideration as no business activity was taken the year.

4) Investment: Investments are stated at cost.

5) Revenue Recognition:

Sales are stated net of trade discount, rebates and sales tax.

6) Miscellaneous Expenditure:

Expenses capitalized towards Public Issue, Product launching, Post issue expense and other Expenses are amortized at flat rate @10 % on reducing balance.

7) Deferred Tax

The deferred tax is recognized for all temporary difference subject to the consideration of prudence and at currently available rates. Deferred Tax assets are recognized only if virtual certainty that they will be realized.

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