Accounting Policies of Tapi Fruit Processing Ltd. Company

Mar 31, 2024

NOTE A. CORPORATE INFORMATION

Tapi Fruit Processing Limited is a public limited company incorporated under provisions of the Companies Act, 2013. The Company is engaged in manufacturing and selling of Jam and Jelly based products.

NOTE B. SIGNIFICANT ACCOUNTING POLICIES(I) BASIS OF ACCOUNTING

These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013.

The financial statements are prepared on accrual basis under the historical cost convention, except for certain Fixed Assets, which are carried at revalued amounts.

(II) REVENUE RECOGNITION:

Revenue is recognized when the control of products is transferred to the customer and there is no unfulfilled obligation.

(III) INVENTORIES:

Raw materials are valued at cost and finished goods are valued at cost or market value whichever is lower.

(IV) PROPERTY, PLANT AND EQUIPMENT:

The company has valued its property, plant and equipment at historical cost less depreciation on WDV method.

Depreciation is provided based on useful life on of the assets as prescribed in Schedule II to the Companies Act, 2013.

(V) EMPLOYEE BENEFITS:

All employee benefits payable wholly within twelve months of rendering services are classified as short-term employee benefits. Benefits such as salaries, wages and bonus etc. are recognized as actual amounts due in the period in which employee renders the related services.

The Company contributes towards Provident Fund and ESIC. The Company does not have any gratuity fund and to that extent the requirements of AS 15 which deals with the Accounting for Retirement Benefits in the Financial Statements of Employees are not applicable to the company.

(VI) TAXES ON INCOME:

Current Tax is determinate as the amounts of tax payable to the taxation authorities in respect of taxable income for the period.

For the purpose of determining deferred tax assets in current financial year, the WDV of property, plant and equipment for accounting purposes and for tax purposes are compared and the differences is charged to the profit and loss account, subject to the consideration of prudence.