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Accounting Policies of Positive Electronics Ltd. Company

Mar 31, 2015

A. Basis of accounting

The financial statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the Companies (Accounts) Rules 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on an

accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

b. Use of estimates

The preparation of financial statements requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as on the date of the financial statements and the reported income and expenses during the reporting period. The estimates and assumptions used in the financial statements are based

upon the Management's evaluation of the relevant facts and circumstances as on the date of financial statements. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Future results may vary from these estimates

c. Recognition of revenue and expenditure

Sales

The sales are recognized at the point of dispatch of material to the customer and bills are raised to them. Sales are shown net of goods return, rebates, rate differences, etc.

Income & Expenditure

All items of income and expenditure are accounted on accrual basis except otherwise stated.

d. Employee Benefits

Employee Benefits being short term in nature are accounted for when disbursed.

e. Investments

Non Current Investments are stated at cost. Diminution in value e of non-current Investments other than temporary in nature are provided for in accounts.

f. Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, demand deposits with banks, other short- term highly liquid investments with original maturities of three months or less as per the AS -3 "CASH FLOW STATEMENT".

g. Taxation

Current Tax: Current Tax is determined as the amount of tax payable in respect of taxable income for the year determined in accordance with the provisions of the Income Tax Act, 196. Minimum Alternative Tax credit available under section 115JB of the Income^i^ct, 1961 will be accounted in the yeauflj6^f the benefits are claimed.

h. Provision

A provision is recognized when an enterprise has a present obligation as a result of past event and 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 determined based on best estimate of the amount required to settle the obligation as at the balance sheet date.

i. Provisions. Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the Notes. Contingent Assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2014

I) Accounting Convention:

The financial statement has been prepared under the historical cost convention in accordance with the generally accepted accounting principles as adopted consistently by the company.

ii) Use of Estimates:

The preparation of financial statements, in conformity with the generally accepted accounting principles, ) requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reported year. Differences between the actual results and estimates are recognized in the year in which the results are known / materialized. ''

iii) Investments:

Long term investments are stated at cost. Short Term Investments are stated at lower of cost or fair value. Provision for diminution in the value of long-term investment is made only if such a decline is other than temporary in nature in the opinion of the Management. .

iv) Inventories:

Inventories are valued at lower of cost or net realizable value.

v) Recognition of Revenue:

Sales:

The sales are recognized at the point of dispatch of material to the customers and bills are raised to them.Sales are shown net of goods return, rebates, rate differences etc.

Income & Expenditure:

The Company follows mercantile system of accounting and recognizes significant items of Income & Expenditure on accrual basis.

vi) Employees Benefit:

a) Short Term Employee Benefits:

These are recognized at the undiscounted amount as expense for the year in which the related service is rendered, except leave encashment.

b) Post Employment Benefit Plans:

i) Defined Contribution Plan:

Contribution under defined contribution plan payable in keeping with the related scheme are recognized as expenditure for the year.

ii) Define Benefit Plan:

Gratuity liability, being a defined benefit obligation is provided for on the basis of an actuarial valuation based on projected unit credit method

c) Other Employee Benefits:

Other Employee Benefits being short term in nature are accounted on actual disbursement.

vii) Borrowing Costs:

Borrowing costs attributable to qualifying assets are capitalized up to the date when such assets are ready for their intend use,other borrowing cost are recognized as expenses in the period in which they are incurred.

viii) Earnings per Share:

Basic earning per share are calculated by dividing the net profit or loss for the period attributable to equity

share holders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events of bonus issue, bonus element in a rights issue to existing shareholders, share

i split and reverse shares split (consolidation of shares).

For the purpose of calculating diluted earnings per shares, the net profit or loss after tax for the period attributable to equity share holders and the weighted average number of shares outstanding during the period are adjusted for the effects for all dilutive potential equity shares.

ix) Tax on Income:

Current Tax represents the amount that would be payable based on the computation of tax as per prevailing taxation laws under IT Act 1961. Deferred tax is recognized subject to consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is calculated using the tax rates and tax laws that has been^ enacted and/or substantially enacted as at the Balance Sheet date. Deferred tax assets are recognized and carried forward only to the extent that there is virtual certainty that such deferred tax assets can be realized.

x) Contingent Liabilities & Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the Notes to the Financial Statements. Contingent Assets are neither recognized nor disclosed in the financial statements.

xi) Cash and cash equivalents:

The Company considers all highly liquid financial instruments, which are readily convertible into cash and have original maturities of three months or less from the date of purchase, to be cash equivalents.


Mar 31, 2013

I) Accounting Convention:

The financial statement has been prepared under the historical cost convention in accordance with the generally accepted accounting principles as adopted consistently by the company.

ii) Use of Estimates:

The pieparation of financial statements, in conformity with the generally accepted accounting principles, requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reported year. Differences between the actual results and estimates are recognized in the year in which the results are known / materialized.

iii) Fixed Assets :

Fixed Assets are stated at cost less accumulated depreciation.

iv) Depreciation :

Depreciation on Fixed Assets has been provided on Written down value method and at the rates as prescribed in Schedule-XIV to the Companies Act'' 1956.

v) Impairments:

At each Balance Sheet date, the Company reviews the carrying amount of its fixed Assets to determine whether there are any indications that those assets suffered any impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. The recoverable amount is the higher of an asset net selling price and value in use. In assessing value in use , the estimated future cash flow expected from the continuing use of the assets and from its disposal aie discounted to their present value using a pre-determined rate that reflect the current market assessment of time value of money and the risks specific to the assets . Reversal of impairment loss is recognized immediately as income in the Profit & Loss Account.

vi) Investments:

Long term investments are stated at cost. Short Term Investments are stated at lower of cost or fair value. Provision for diminution in the value of long-term investment is made only if such a decline is other than temporary in nature in the opinion of the Management. .

vii) Inventories:

Inventories are valued at lower of cost or net realizable value.

viii) Recognition of Revenue:

Sales:

The sales are recognized at the point of dispatch of material to the customers and bills are raised to them. Sales are shown net of goods return, rebates, rate differences etc.

Income & Expenditure:

The Company follows mercantile system of accounting and recognizes significant items of Income & Expenditure on accrual basis.

ix) Foreign Currencies Transactions :

Foreign currency transactions are accounted for at the prevailing exchange rate as on the date of execution of the transaction or of the rate cover under forward contract as applicable. Foreign currency monetary items not covered under forward exchange contract and due at the end of the year are converted at the exchange rate prevailing as on that date. Exchange differences arising on the settlement of the transactions or on reporting at the year end rates are recognized as Income or as Expenses in the period in which arise, except in respect of fixed assets acquired from out side India, where exchange variance is adjusted to the carrying amount of the respective fixed assets.

x) Employees Benefit:

a) Short Term Employee Benefits:

These are recognised at the undiscounted amount as expense for the year in which the related service is rendered, except leave encashment.

b) Post Employment Benefit Plans:

i) Defined Contribution Plan:

Contribution under defined contribution plan payable in keeping with the related scheme are recognised as expenditure for the year.

ii) Define Benefit Plan:

Gratuity liability, being a defined benefit obligation is provided for on the basis of an actuarial valuation on projceted unit credit method

c) Other Employee Benefits:

Other Employee Benefits being short term in nature are accounted on actual disbursement.

xi) Borrowing Costs:

Bon owing costs attributable to qualifying assets are capitalized up to the date when such assets are ready for their intend use,other borrowing cost are recognized as expenses in the period in which they are incurred.

xii) Earnings per Share:

Basic earning per share are calculated by dividing the net profit or loss for the period attributable to equity share holders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events of bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse shares split (consolidation of shares).

For the purpose of calculating diluted earnings per shares, the net profit or loss after tax for the period attributable to equity share holders and the weighted average number of shares outstanding during the period are adjusted for the effects for all dilutive potential equity shares.

xiii) Tax on Income:

Current Tax represents the amount that would be payable based on the computation of tax as per prevailing taxation laws under IT Act 1961. Deferred tax is recognized subject to consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is calculated using the tax rates and tax laws that has been enacted and/or substantially enacted as at the Balance Sheet date. Deferred tax assets are recognized and carried forward only to the extent that there is virtual certainty that such deferred tax assets can be realized.

xiv) Contingent Liabilities & Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the Notes to the Financial Statements. Contingent Assets are neither recognized nor disclosed in the financial statements.

xv) Cash and cash equivalents:

The Company considers all highly liquid financial instruments, which are readily convertible into cash and have original maturities of three months or less from the date of purchase, to be cash equivalents.


Mar 31, 2012

I) Accounting Convention:

The financial statement has been prepared under the historical cost convention in accordance with the generally accepted accounting principles as adopted consistently by the company.

ii) Use of Estimates:

The preparation of financial statements, in conformity with the generally accepted accounting principles, requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reported year. Differences between the actual results and estimates are recognized in the year in which the results are known / materialized.

iii) Fixed Assets :

Fixed Assets are stated at cost less accumulated depreciation.

iv) Depreciation :

Depreciation on Fixed Assets has been provided on Written down value method and at the rates as prescribed in Schedule-XIV to the Companies Act'' 1956.

v) Impairments:

At each Balance Sheet date, the Company reviews the carrying amount of its fixed Assets to determine whether there are any indications that those assets suffered any impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. The recoverable amount is the higher of an asset net selling price and value in use. In assessing value in use , the estimated future cash flow expected from the continuing use of the assets and from its disposal are discounted to their present value using a pre-determined rate that reflect the current market assessment of time value of money and the risks specific to the assets . Reversal of impairment loss is recognized immediately as income in the Profit & Loss Account.

vi) Investments:

Long term investments are stated at cost. Short Term Investments are stated at lower of cost or fair value r. Provision for diminution in the value of long-term investment is made only if such a decline is other than temporary in nature in the opinion of the Management. .

vii) Inventories:

Inventories are valued at lower of cost or net realizable value.

viii) Recognition of Revenue:

Sales:

The sales are recognized at the point of dispatch of material to the customers and bills are raised to them.Sales are shown net of goods return, rebates, rate differences etc.

Income & Expenditure:

The Company follows mercantile system of accounting and recognizes significant items of Income & Expenditure on accrual basis.

ix) Foreign Currencies Transactions :

Foreign currency transactions are accounted for at the prevailing exchange rate as on the date of execution of the transaction or of the rate cover under forward contract as applicable. Foreign currency monetary items not covered under forward exchange contract and due at the end of the year are converted at the exchange rate prevailing as on that date. Exchange differences arising on the settlement of the transactions or on reporting at the year end rates are recognized as Income or as Expenses in the period in which arise, except in respect of fixed assets acquired from out side India, where exchange variance is adjusted to the carrying amount of the respective fixed assets.

x) Employees Benefit:

Since the company has no employee during the year, the policy regarding the Post-employment benefit plans and other employee''s benefits are not determined and recognized.

xi) Borrowing Costs:

Borrowing costs attributable to qualifying assets are capitalized up to the date when such assets are ready for their intend use,other borrowing cost are recognized as expenses in the period in which they are incurred.

xii) Earnings per Share:

Basic earning per share are calculated by dividing the net profit or loss for the period attributable to equity share holders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events of bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse shares split (consolidation of shares).

For the purpose of calculating diluted earnings per shares, the net profit or loss after tax for the period attributable to equity share holders and the weighted average number of shares outstanding during the

period are adjusted for the effects for all dilutive potential equity shares,

xiii) Tax on Income:

Current Tax represents the amount that would be payable based on the computation of tax as per prevailing taxation laws under IT Act 1961. Deferred tax is recognized subject to consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is calculated using the tax rates and tax laws that has been enacted and/or substantially enacted as at the Balance Sheet date. Deferred tax assets are recognized and carried forward only to the extent that there is virtual certainty that such deferred tax assets can be realized.

xiv) Contingent Liabilities & Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the Notes to the Financial Statements. Contingent Assets are neither recognized nor disclosed in the financial statements.

xv) Cash and cash equivalents:

The Company considers all highly liquid financial instruments, which are readily convertible into cash and have original maturities of three months or less from the date of purchase, to be cash equivalents.


Mar 31, 2011

Not Available.

 
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