Home  »  Company  »  Towa Sokki L  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Towa Sokki Ltd. Company

Mar 31, 2014

Corporate Information

Towa Sokki Limited is a public limited company domiciled in India and incorporated under the Companies Act, 1956. Equity shares of the company are listed in Bombay Stock Exchange Ltd. in India. The Company is engaged in manufacturing and selling of Survey Instruments.

Note 1 - Basis of Accounting

i) The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles to comply with the applicable Accounting Standards as prescribed under the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

ii) The Company generally follows the mercantile system of accounting and recognises significant items of income and expenditure on accrual basis.

iii) Use of estimates : The preparation of financial statements in conformity with generally accepted accounting principles in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements.

1.1 Summary of Significant Accounting Policies

i) Fixed Assets :

a) Fixed Assets are shown at cost of acquisition including direct material, labour and overheads if any, less accumulated depreciation and less sold during the year.

b) Works under erection / installation / execution for capital works are shown as "Capital Advances and includes interest on borrowings and advances to suppliers etc.

ii) Inventories :

a) Raw Materials, Stores, & Spares are valued at cost.

b) Finished Goods are valued at cost or market value whichever is lower. Stock of purchased items traded is valued as lower of the landed cost or realisable value.

iii) Depreciatian :

a) Depreciation on all fixed assets is provided on "Straight Line Method" at the rates specified in the Schedule XIV to the Companies Act, 1956. Depreciation on additions to fixed assets is charged on prorata basis.

b) Depreciation in respect of assets acquired and put to use for implementation of the new project is grouped under Pre-Operative Expenses.

iv) Encashment Of Leave and Other Retirement Benefits :

The company extends benefit of encashment of leave to its employees while in service as well as on retirement. Encashment of leave accumulated while in service is generally accounted when paid on yearly basis. Further, any liability on this account is recognised only when claim is received. Other retirement benefits such as Gratuity etc. are recognised only when the liability for such payments arises.

v) Accounting For Miscellaneous Expenditure :

Preliminary Expenses (for New Project) and Share Capital Expenses / Public Issue Expenses (for New Project) will be amortised over the period of ten years from the year in which the commencement of commercial production (for New Project) is started.


Mar 31, 2013

I) Fixed Assets :

a) Fixed Assets are shown at cost of acquisition including direct material, labour and overheads if any, less accumulated depreciation and less sold during the year.

b) Works under erection / installation / execution for capital works are shown as "Capital Advances and includes interest on borrowings and advances to suppliers etc.

ii) Inventories :

a) Raw Materials, Stores, & Spares are valued at cost.

b) Finished Goods are valued at cost or market value whichever is lower. Stock of purchased items traded is valued as lower of the landed cost or realisable value.

iii) Depreciatian :

a) Depreciation on all fixed assets is provided on "Straight Line Method" at the rates specified in the Schedule XIV to the Companies Act, 1956. Depreciation on additions to fixed assets is charged on prorata basis.

b) Depreciation in respect of assets acquired and put to use for implementation of the new project is grouped under Pre-Operative Expenses.

iv) Encashment Of Leave and Other Retirement Benefits :

The company extends benefit of encashment of leave to its employees while in service as well as on retirement. Encashment of leave accumulated while in service is generally accounted when paid on yearly basis. Further, any liability on this account is recognised only when claim is received. Other retirement benefits such as Gratuity etc. are recognised only when the liability for such payments arises.

v) Accounting For Miscellaneous Expenditure :

Preliminary Expenses (for New Project) and Share Capital Expenses / Public Issue Expenses (for New Project) will be amortised over the period of ten years from the year in which the commencement of commercial production (for New Project) is started.


Mar 31, 2012

I) Fixed Assets:

a) Fixed Assets are shown at cost of acquisition including direct material, labour and overheads if any, less accumulated depreciation and less sold during the year.

b) Works under erection / installation / execution for capital works are shown as "Capital Advances and includes interest on borrowings and advances to suppliers etc.

ii) Inventories :

a) Raw Materials, Stores, & Spares are valued at cost.

b) Finished Goods are valued at cost or market value whichever is lower. Stock of purchased items traded is valued as lower of the landed cost or realisable value.

iii) Depreciatian :

a) Depreciation on all fixed assets is provided on "Straight Line Method" at the rates specified in the Schedule XIV to the Companies Act, 1956. Depreciation on additions to fixed assets is charged on prorata basis.

b) Depreciation in respect of assets acquired and put to use for implementation of the new project is grouped under Pre-Operative Expenses.

iv) Encashment Of Leave and Other Retirement Benefits :

The company extends benefit of encashment of leave to its employees while in service as well as on retirement. Encashment of leave accumulated while in service is generally accounted when paid on yearly basis. Further, any liability on this account is recognised only when claim is received. Other retirement benefits such as Gratuity etc. are recognised only when the liability for such payments arises.

v) Accounting For Miscellaneous Expenditure :

Preliminary Expenses (for New Project) and Share Capital Expenses / Public Issue Expenses (for New Project) will be amortised over the period of ten years from the year in which the commencement of commercial production (for New Project) is started.


Mar 31, 2011

1. SYSTEM OF ACCOUNTING:

The company follows the accrual concept of accounting for income and expenditure generally under the historical cost convention in accordance with the generally accepted accounting practices prevailing in India.

2. FIXED ASSETS :

a) Fixed Assets are shown at cost of acquisition including direct material, labour and overheads if any, less accumulated depreciation.

b) Works under erection / installation / execution for capital works are shown as "Capital Work in Progress on New Project" and includes interest on borrowings and advances to suppliers etc.

3. INVENTORIES :

a) Raw Materials, Stores, & Spares are valued at cost.

b) Finished Goods are valued at cost or market value whichever is lower. Stock of purchased items traded is valued as lower of the landed cost or realisable value.

4. DEPRECIATION :

a) Depreciation on all fixed assets is provided on "Straight Line Method" at the rates specified in the Schedule XIV to the Companies Act, 1956. Depreciation on additions to fixed assets is charged on prorata basis.

b) Depreciation in respect of assets acquired and put to use for implementation of the new project is grouped under Pre-Operative Expenditure pending capitalisation.

5. ENCASHMENT OF LEAVE AND OTHER RETIREMENT BENEFITS :

The company extends benefit of encashment of leave to its employees while in service as well as on retirement. Encashment of leave accumulated while in service is generally accounted when paid on yearly basis. Further, any liability on this account is recognised only when claim is received. Other retirement benefits such as Gratuity etc. are recognised only when the liability for such payments arises.

6. ACCOUNTING FOR MISCELLANEOUS EXPENDITURE :

Preliminary Expenses (for New Project) and Share Capital Expenses / Public Issue Expenses (for New Project) will be amortised over the period of ten years from the year in which the commencement of commercial production (for New Project) is started.


Mar 31, 2010

1. SYSTEM OF ACCOUNTING :

The company follows the accrual concept of accounting for income and expenditure generally under the historical cost convention in accordance with the generally accepted accounting practices prevailing in India.

2. FIXED ASSETS :

a) Fixed Assets are shown at cost of acquisition including direct material, labour and overheads if any, less accumulated depreciation and less sold during the year.

b) Works under erection / installation / execution for capital works are shown as "Capital Work in Progerss on New Project" and includes interest on borrowings and advances to suppliers etc, has been shown as net sale during the year.

3. INVENTORIES :

a) Raw Materials, Stores, & Spares are valued at cost.

b) Finished Goods are valued at cost or market value whichever in lower. Stock of purchased items traded is valued as lower of the landed cost or realisable value.

4. DEPRECIATION :

a) Depreciation on all fixed assets is provided on "Straight Line Method'' at the rates specified in the Schedule XIV to the Companies Act, 1956. Depreciation on additions to fixed assets is charged on prorata basis.

b) Depreciation in respect of assets acquired and put to use for implementation of the new project is grouped under Pre-Operative Expenditure pending capitalisation.

5. ENCASHMENT OF LEAVE AND OTHER RETIREMENT BENEFITS :

The company extends benefit of encashment of leave to its employees while in service as well as on retirement. Encashment of leave accumulated while in service is generally accounted when paid on yearly basis Further, any liability on this account is recognised only when claim is received. Other retirement benefits such as Gratuity etc. are recognised only when the liability for such payments arises.

6. ACCOUNTING FOR MISCELLANEOUS EXPENDITURE :

Preliminary Expenses (for New Project) and Share Capital Expenses / Public Issue Expenses (for New Project) will be amortised over the period of ten years from the year in which the commencement of commercial production (for New Project) is started.

 
Subscribe now to get personal finance updates in your inbox!