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Accounting Policies of Tricom Fruit Products Ltd. Company

Mar 31, 2015

1.1 Basis of preparation of Financial Statements:

These financial statements have been prepared in accordance with the Generally Accepted Accountings Principles in India ("Indian GAAP") to comply with the Accountings 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, financial statements have been prepared under the historical cost convention on accrual basis, except for certain financial instruments which are measured at fair value.

1.2 Use of Estimates:

The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the year. Examples of such estimates include provisions for doubtful receivables, employee benefts, provision for income taxes, the useful lives of depreciable fixed assets and provision for impairment. Future results could differ due to changes in these estimates and the difference between the actual result and the estimates are recognized in the period in which the results are known/ materialize.

1.3 Fixed Asset, Depreciation and Amortsaton

a) Fixed Assets:

Fixed Assets are stated at cost less accumulated depreciation/ amortsaton. For this purpose cost comprises of cost of acquisition and all costs directly attributable to bringing the asset to the present condition for its intended use.

1.4 INVESTIMENTS:

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments'. All other investments are classified as long term investments'. Long term investments are carried at cost. Provision for diminuton in value of long term investiment is made only if such a decline is other than temporary.

1.5 FOREIGN CURRENCY TRANSACTIONS:

Transactions in foreign currency are recorded at the rates of exchange prevailing on the date of transactions. Exchange differences are recorded when the amount actually received on sales or actually paid when expenditure is incurred, is converted to Indian Rupees. The exchange differences arising on other foreign currency transactions are recognized as income or expense in the year in which they realize.

1.6 PROVISION AND CONTINGENT LIABILITIES:

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outlaw of resources and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to present value and are determined based on best estimate required to settle the obligation at the Balance Sheet date. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outlaw of resources. Where there is possible obligation or a present obligation that the likelihood of outlaw of resources is remote, no provision or disclosure is made.

1.7 GOVERNMENT GRANTS/ SUBSIDY:

Grants/Subsidy related to revenue is credited to Statement of Proft & Loss on accrual basis.

1.8 REVENUE RECOGNITION:

Sales and Other Income -

The Company recognizes the sale of goods when the significant risks and rewards of ownership are transferred to the buyer, which is usually when the goods are dispatched to the customers.

Interest Income and other items are accounted on Accrual Basis.

1.9 INVENTORIES

Finished goods stock is valued at lower of cost or net realizable value and stock of raw material is valued at cost.

1.10 TAXES ON INCOME

Tax expense comprises of Current Income Tax and Deferred Tax. Deferred income taxes are recognized for future tax consequences attributable to taming differences between the financial statement determination of income and their recognition for tax purposes. The effect of deferred tax assets and liabilities of a change in tax rates is recognized in income using the tax rates and tax laws that have enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized and carried forward only to the extent that there is reasonable certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.


Mar 31, 2014

1.1 ACCOUNTING CONVENTIONS:

The financial statements of the Company are prepared under the historical cost convention on accrual basis of accounting except the provision of interest on deposit as referred to note no 3.4 and in accordance with the mandatory accounting standards issued by the Institute of Chartered Accountant of India and referred to in Section 211 (3C) of the Companies Act, 1956 (which continues to be applicable in respect of Section 133 of the Companies Act, 2013 in terms of the General Circular 15/2013 dt.13.09.2013 of the Ministry of Corporate Affairs), and generally accepted accounting principles in India. The accounting policies not referred to otherwise have been consistently applied by the Company during the year.

1.2 FIXED ASSETS:

Fixed Assets are stated at cost of acquisition/construction less accumulated depreciation. For this purpose cost comprises of cost of acquisition and all costs directly attributable to bringing the asset to present condition for its intended use.

1.3 DEPRECIATION:

Depreciation is provided during the year under Straight Line method at the rates prescribed under Section 205(2)(b), Schedule XIV of the Companies Act, 1956.

Depreciation on Assets added/disposed off during the year has been provided on pro-rata basis with reference to the date of addition/disposal. Individual low cost assets (acquired for less than Rs.5,000/-) are entirely depreciated in the year of acquisition. The Company is into Seasonal business and hence depreciation is calculated on number of days on which the factory or concern actually worked during the period or 180 days, whichever is greater.

1.4 INVESTMENTS:

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long term investments. Long term investments are carried at cost. Provision for diminution in value of long term investment is made only if such a decline is other than temporary.

1.5 FOREIGN CURRENCY TRANSACTIONS:

Transactions in foreign currency are recorded at the rates of exchange prevailing on the date of transactions. Exchange differences are recorded when the amount actually received on sales or actually paid when expenditure is incurred, is converted to Indian Rupees. The exchange differences arising on other foreign currency transactions are recognized as income or expense in the year in which they realize.

1.6 PROVISION AND CONTINGENT LIABILITIES:

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to present value and are determined based on best estimate required to settle the obligation at the Balance Sheet date. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

1.7 GOVERNMENT GRANTS/ SUBSIDY:

Grants/Subsidy related to revenue is credited to Statement of Profit & Loss on accrual basis.

1.8 REVENUE RECOGNITION:

Sales and Other Income -

The Company recognizes the sale of goods when the significant risks and rewards of ownership are transferred to the buyer, which is usually when the goods are dispatched to the customers. Interest Income and other items are accounted on Accrual Basis.

1.9 INVENTORIES

Finished goods stock is valued at lower of cost or net realizable value and stock of raw material is valued at cost.

1.10 TAXES ON INCOME

Tax expense comprises of Current Income Tax and Deferred Tax. Deferred income taxes are recognized for future tax consequences attributable to timing differences between the financial statement determination of income and their recognition for tax purposes. The effect of deferred tax assets and liabilities of a change in tax rates is recognized in income using the tax rates and tax laws that have enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized and carried forward only to the extent that there is reasonable certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.11 MISCELLANEOUS EXPENDITURE

Preliminary Expenses is carried over and will be written off over a period of 10 years from the year of commencement of activity.

a - Rights, preferences and restrictions attaching to each class of shares

1 - The Company has only one class of equity shareholders. Each holder of equity shares is entitled to one vote per share.

2 - In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

c - Monies received against Share Warrants:

The Board of Directors of the Company at their meeting held on 6th November, 2012 and as approved at its Postal Ballot Meeting held on 10th December, 2012 have resolved to create, offer, issue and allot up to 40,56,000/- warrants, convertible into 40,56,000/- Equity Shares of ''10/- each on a preferential allotment basis, pursuant to Section 81(1A) of the Companies Act, 1956, at a conversion price of ''36/- per Equity Share of the Company, arrived at in accordance with the SEBI Guidelines in this regard and subsequently 39,01,000/- warrants were allotted at ''9/- paid up per warrant on 3rd January, 2013.

a - security for Long lerm - secured Loans

(i) Term Loan from Banks are secured by 1st charge byway of Equitable Mortgage of land & building/fixed assets and 1st charge by way of hypothecation of all movable assets (except vehicles) of the Company, pledge of fixed deposits with Banks and further secured by 2nd charge on current assets, stock, WIP, book debts of the Company and by personal guarantee of a Director.

(ii) Vehicle Loans from Banks are secured against the specific vehicle financed by respective banks.

c - During the year Bankers of the Company has assigned the total debts due by Company to Banks pursuant to the various financial facilities granted by Bankers i.e. Term Loan and Working Capital Loan from time to time alongwith underlying financial documents together with Bank''s rights, benefits and obligations thereunder to an Asset Reconstruction Company, whereby the debts due to Banks will now become payable to the Asset Reconstruction Company. Further, various discussions and meetings are undergoing between Company and Asset Reconstruction Company on the proposal for restructuring of financial assistance availed by the Company and Company has considered the effects of various proposals as discussed in meetings in its financial statement for the year ended 31st March, 2014.

a - Security for Short Term Borrowings - Secured Loans

Working Capital loans from Banks are secured by 1st charge byway of hypothecation of current assets, stock, WIP, book debts of the Company and 2nd charge on fixed assets and movable assets of the Company, and by personal guarantee of a Director.


Mar 31, 2013

1.1 ACCOUNTING CONVENTIONS:

The financial statements of the company are prepared under the historical cost convention on accrual basis of accounting, and in accordance with the mandatory accounting standards issued by the Institute of Chartered Accountant of India and referred to in Section 211 (3C) of the Companies Act, 1956, and generally accepted accounting principles in India. The accounting policies not referred to otherwise have been consistently applied by the Company during the year.

1.2 FIXED ASSETS:

Fixed Assets are stated at cost of acquisition/construction less accumulated depreciation. For this purpose cost comprises of cost of acquisition and all costs directly attributable to bringing the asset to present condition for its intended use.

1.3 DEPRECIATION:

Depreciation is provided during the year under Straight Line method at the rates prescribed under section 205 (2) (b), Schedule XIV of the Companies Act, 1956.

Depreciation on Assets added / disposed off during the year has been provided on pro-rata basis with reference to the date of addition / disposal. Individual low cost assets (acquired for less than Rs. 5,000/-) are entirely depreciated in the year of acquisition. The Company is into Seasonal business and hence depreciation is calculated on number of days on which the factory or concern actually worked during the period or 180 days, whichever is greater.

1.4 BORROWING COSTS:

Borrowing Costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized as the cost of the respective assets. All other borrowing costs are charged to revenue.

1.5 INVESTMENTS:

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long term investments. Long term investments are carried at cost. No provision for diminution in value of long term investment is made.

1.6 FOREIGN CURRENCY TRANSACTIONS:

Transactions in foreign currency are recorded at the rates of exchange prevailing on the date of transactions. Exchange differences are recorded when the amount actually received on sales or actually paid when expenditure is incurred, is converted to Indian Rupees. The exchange differences arising on other foreign currency transactions are recognized as income or expense in the year in which they realize.

1.7 PROVISION AND CONTINGENT LIABILITIES:

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to present value and are determined based on best estimate required to settle the obligation at the Balance Sheet date. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

1.8 GOVERNMENT GRANTS/ SUBSIDY:

Grants/Subsidy related to revenue is credited to Statement of Profit & Loss on accrual basis.

1.9 REVENUE RECOGNITION: Sales and Other Income -

The company recognizes the sale of goods when the significant risks and rewards of ownership are transferred to the buyer, which is usually when the goods are dispatched to the customers.

Interest Income and other items are accounted on Accrual Basis.

1.10 INVENTORIES :

Finished goods stock is valued at lower of cost or net realizable value and stock of raw material is valued at cost.

1.11 TAXES ON INCOME :

Tax expense comprises of Current Income Tax and Deferred Tax. Deferred income taxes are recognized for future tax consequences attributable to timing differences between the financial statement determination of income and their recognition for tax purposes. The effect of deferred tax assets and liabilities of a change in tax rates is recognized in income using the tax rates and tax laws that have enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized and carried forward only to the extent that there is reasonable certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.12 MISCELLANEOUS EXPENDITURE :

Preliminary Expenses is carried over and will be written off over a period of 10 years from the year of commencement of activity.

1.13 REVENUE RECOGNITION: Sales and Other Income -

The company recognizes the sale of goods when the significant risks and rewards of ownership are transferred to the buyer, which is usually when the goods are dispatched to the customers.

Interest Income and other items are accounted on Accrual Basis.

1.14 INVENTORIES

Finished goods stock is valued at lower of cost or net realizable value and stock of raw material is valued at cost.

1.15 TAXES ON INCOME

Tax expense comprises of Current Income Tax and Deferred Tax. Deferred income taxes are recognized for future tax consequences attributable to timing differences between the financial statement determination of income and their recognition for tax purposes. The effect of deferred tax assets and liabilities of a change in tax rates is recognized in income using the tax rates and tax laws that have enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized and carried forward only to the extent that there is reasonable certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.16 MISCELLANEOUS EXPENDITURE

Preliminary Expenses is carried over and will be written off over a period of 10 years from the year of commencement of activity.


Mar 31, 2010

ACCOUNTING CONVENTIONS

The financial statements of the company are prepared under the historical cost convention on accrual basis of accounting, and in accordance with the mandatory accounting standards issued by the Institute of Chartered Accountant of India and referred to in Section 211 (3C) of the Companies Act, 1956, and generally accepted accounting principles in India. The accounting policies not referred to otherwise have been consistently applied by the Company during the year.

FIXED ASSETS

Fixed Assets are stated at cost of acquisition/construction less accumulated depreciation. For this purpose cost comprises of cost of acquisition and all costs directly attributable to bringing the asset to present condition for its intended use. Since the commercial production has not commenced, all the expenses incurred during construction period are carried forward till capitalization and is shown under the head Fixed Assets (Pending Allocation).

DEPRECIATION

Depreciation is provided during the year under Straight Line method at the rates prescribed under section 205 (2) (b), Schedule XIV of the Companies Act, 1956.

Depreciation on Assets added / disposed off during the year has been provided on prorata basis with reference to the month of addition / disposal .Individual low cost assets (acquired for less than Rs.5,000/ -) are entirely depreciated in the year of acquisition.

INVESTMENTS

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long term investments .Long term investments are carried at cost .No provision for diminution in value of long term investment is made.

FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currency are recorded at the rates of exchange prevailing on the date of transactions. Exchange differences are recorded when the amount actually received on sales or actually paid when expenditure is incurred, is converted to Indian Rupees. The exchange differences arising on other foreign currency transactions are recognized as income or expense in the year in which they realize.

PROVISION AND CONTINGENT LIABILITIES

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to present value and are determined based on best estimate required to settle the obligation at the Balance Sheet date. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

GOVERNMENT GRANTS/ SUBSIDY

Grants/Subsidy related to revenue is credited to Profit & Loss Account on receipt basis.

REVENUE RECOGNITION

Domestic Sales and Other Income.

The company recognizes the sale of goods when the significant risks and rewards of ownership are transferred to the buyer, which is usually when the goods are dispatched to the customers.

Interest Income and other items are accounted on Accrual Basis.

INVENTORIES

Inventories are valued at lower of cost or market value.

TAXES ON INCOME

Tax expense comprises of Current Income Tax, Deferred Tax and Fringe Benefit Tax. Fringe Benefit Tax is measured at the amount expected to be paid to the tax authorities in accordance with Indian Income Tax Act. Deferred income taxes are recognized for future tax consequences attributable to timing differences between the financial statement determination of income and their recognition for tax purposes. The effect of deferred tax assets and liabilities of a change in tax rates is recognized in income using the tax rates and tax laws that have enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized and carried forward only to the extent that there is reasonable certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

MISCELLANEOUS EXPENDITURE

Preliminary Expenses is carried over and will be written off over a period of 10 years from the year of commencement of activity.



 
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