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Accounting Policies of Trinity League India Ltd. Company

Mar 31, 2014

I. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

a) Accounting Convention: The financial Statements are prepared under historical cost convention on accrual basis in accordance with generally accepted accounting principles and applicable accounting standards in India. The financial statements adhere to the presentational requirements of the Companies Act, 1956.

b) Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumption that affect the reported amounts of assets and liabilities and disclosures thereof at the date of financial statements and the reported amounts if revenue and expense during the reporting period

II. REVENUE RECOGNITION:

The revenue has been recognized in conformity with the requirements of Accounting Standard - 9, issued by the Institute of Chartered Accountants of India.

III. VALUATION OF STOCKS:

As evident from the balance sheet and as per our scrutiny company has no closing stock at the year end.

IV. TANGIBLE FIXED ASSETS:

Fixed assets are shown at cost less accumulated depreciation. The cost includes all the cost that is incidental to bringing the assets to its current working position and any other subsequent capitalization.

V. DEPRECIATION:

Depreciation on assets has been provided on pro rata basis under straight line, method and as per the relevant rates mentioned in the Companies Act, 1956.

VI. IMPAIRMENT OF ASSETS:

The Company reviews the carrying amounts of its fixed assets to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of assets not selling prices and value in use.

VII. CASH FLOW STATEMENT:

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non cash nature and deferrals or accruals of past or future cash receipts or payments. The cash flows from regular operation, financing and investing activities of the company are segregated.

VIII. PROVISION FOR CURRENT TAX AND DEFERRED TAX:

The company is a loss making entity and therefore accounting for taxes on income as per AS – 22 has not been done.

IX. Treatment of Retirement Benefits

i) The contributions to Provident Fund are charged to profit & loss Account every year.

ii) The employees doesn''t fall under Gratuity Act, hence no provision required

X. Accounting policies not specifically referred to are consistent with generally accepted accounting principles.


Mar 31, 2012

A) Accounting Convention:

The financial Statements are prepared under historical cost convention on accrual basis in accordance with generally accepted accounting principles and applicable accounting standards in India. The financial statements adhere to the presentational requirementsoftheCompaniesAct, 1956.

b) Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumption that affect the reported amounts of assets and liabilities and disclosures thereof at the date of financial statements and the reported amounts if revenue and expense during the reporting period.

II. REVENUE RECOGNITION:

The revenue has been recognized in conformity with the requirements of Accounting Standard - 9, issued by the Institute of Chartered Accountants of India.

III. VALUATION OF STOCKS:

As evident from the balance sheet and as per our scrutiny company has no closing stock at the year end.

IV. TANGIBLE FIXED ASSETS:

Fixed assets are shown at cost less accumulated depreciation. The cost includes all the cost that is incidental to bringing the assets to its current working position and any other subsequent capitalization.

V. DEPRECIATION:

Depreciation on assets has been provided on pro rata basis under straight line, method and as per the relevant rates mentioned in the Companies Act, 1956. The arrears of depreciation amounting to Rs. 199,864/- pertaining to previous year has been charged during the current year. This ultimately led to the under reporting of profit by Rs. 199,864/-.

VI. IMPAIRMENT OF ASSETS:

The Company reviews the carrying amounts of its fixed assets to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of assets not selling prices and value in use.

VII. CASH FLOW STATEMENT:

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non cash nature and deferrals or accruals of past or future cash receipts or payments. The cash flows from regular operation, financing and investing activities of the company are segregated.

VIII. PROVISION FORCURRENTTAXAND DEFERRED TAX:

The company is a loss making entity and therefore accounting for taxes on income as per AS - 22 has not been done.

IX. Treatment of Retirement Benefits

i) The contributions to Provident Fund are charged to profit & loss Account every year.

ii) The employees doesn''t fall under Gratuity Act, hence no provision required

X. Accounting policies not specifically referred to are consistent with generally accepted accounting principles.


Jun 30, 2010

A) Accounting Convention and Method of Accounting

The financial statement have been prepared under the historical cost convention and in accordance with generally accepted accounting practices, applicable accounting standards, relevant disclosure requirement of the Companies Act, 1956, and on the basis of going concern.

b) Method of Accounting

The financial accounts have been prepared under accrual method.

c) Fixed Assets

i) Fixed assets are stated at cost less depreciation.

ii) The cost of a fixed asset comprises its purchase price and rule prescribed under Schedule XIV to the Companies Act, 1956, under Straight Line methods.

d) Depreciation

Depreciation on fixed asset is provided in accordance with the rates and rules prescribed under Schedule XIV to the Companies Act, 1956, under straight Line Method.

e) Inventories

i) Finished goods have been valued at lower of cost or net realizable value.

ii) Raw materials have been valued at lower of cost or market value.

iii) Goods in process have been valued at raw material and cost incurred up to the stage of production plus direct expenses apportioned or net realization value which ever is lower.

f) Sales

Sales are recognized when goods are recorded net of trade discounts, rebates and sales tax.

g) Capital Work in Progress

All expenditure, including advances given during the project construction period are accumulated and shown as Capital Work in progress until the assets are ready use. Assets under construction are not depreciated.

Project remained suspended for a long period due to financial crisis because the Company could not make further payments to complete the projects . So Suppliers /Contractors could not finished the projects and forfeited the advance amount given by the Company. The Management did their best to complete the project unfortunately they couldnt complete the same .Now The Management decided to write off the amount because they thought the project was no longer be completed.

h) Investments

All investments (unquoted) are stated at cost. i) Treatment of Retirement Benefits

i) The contributions to Provident Fund & Family Pension Fund are charged to profit & loss Account every year.

ii) As regard liability towards leave encashment, the employees have the option of encashing or availing the non-availed leave at the time of retirement/leaving service. The liabilities on this account, therefore, cannot be estimated and accrued till the employees exercise their option.

iii) No Provision for gratuity has been made in the books of accounts.

j) Accounting policies not specifically referred to are consistent with generally accepted accounting principles.

 
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