THE ADVOCATES’ MUTUALLY AIDED CO-OPERATIVE SOCIETY LIMITED.
FINANCIAL YEAR 2018-2019 SIGNIFICANT ACCOUNTING POLICIES FORMING PART OF ACCOUNTS
1. ACCOUNTING CONVENTION:
The Financial statements have been prepared in accordance with the historical cost convention.
2. FIXED ASSETS:
The Fixed Assets are stated at cost of the acquisition inclusive of inward freight, duties, taxes and incidental expenses relating to acquisition.
The Depreciation of Fixed Assets are provided on written down method as per rates given in, Companies Act 1956.
4. REVENUE RECOGNITION
The Sales and Purchases, income and expenditure are recognized on accrual basis.
The Inventory is valued at cost.
The Society has acquired land at Muneerabad Village, Medchal Mandal, RR District, amounting to Rs.70.91 lacs. The then Government notified the acquisition of said land for Outer Ring Road purpose, The matter is Sub-Judice.
7. INCOME TAX:
The Society claimed exemption U/s 80P a (i) and U/s 80P (ii) (d) of the Income Tax Act. The same was disallowed by the Assessing Officer. The Society proffered filed an appeal before the Commissioner of Appeals (Income Tax) and got orders in favor of the Society. But the Income Tax Authorities filed appeal against the orders of the Commissioner of Appeals (Income Tax) at Income Tax Appellate Tribunal and the matter is held in favor of the Society. At Present the Matter is pending at High Court.