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Accounting Policies of Procal Electronics India Ltd. Company

Mar 31, 2014

Not Available

Mar 31, 2010

The company has not carried out any business activities during the year, however it had followed accounting policies as under wherever applicable.

A) Basis of Accounting:

(i) The financial statements have been prepared under historical cost convention in accordance with the generally accepted accounting principles & the provisions of the Companies Act 1956 as adopted consistently by the Company. (ii) The Company follows accrual system of accounting for all items of revenue & costs. (iii) The Accounts have been prepared on going concern basis.

B) Fixed Assets:

(i) Fixed Assets are stated at cost of acquisition less cenvat credit availed.

(ii) All direct expenses attributable to fixed assets and proportionate pre-operative expenses uptil production are capitalised to Fixed Assets. (iii) Cost of borrowing for assets taking substantial time to be ready for use is capitalised for the period upto the time the asset is ready to use.

C) Depreciation:

Depreciation is provided as per rates specified in Schedule XIV of the Companies Act, 1956 at written down value method on pro-rata basis.

D) Investments:

Long term Investment are stated at cost. No provisions are made for diminution in value of investments, which are of temporary nature.

E) Inventories:

Inventories are valued at lower of cost or Net Realisable value unless otherwise Stated. The basis of determining cost of various categories of inventories is as Follows.

a) Raw Material :

Cost is arrived net of Cenvat computed on FIFO method.

b) Finished Goods:

Traded: Cost is net of vat input credit computed on FIFO method

Product: Cost is including material cost net of Cenvat, labour cost and all other Manufacturing overheads and excise duty for finished goods lying at Bonded warehouse.

F) Sales:

Sales are inclusive of sales tax(vat).

G) Taxes on Income

Current tax, if any, is determined as the account of tax payable in respect of taxable income for the period. Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.