Page 331 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Accounting for Companies-I

Notes

Notes

1. The licensed capacity and installed capacity of the company as on the last date of the
year to which to profit and loss account relates, shall be mentioned against items (a)
and (b) above, respectively.
2. Against item (c), the actual production in respect of the finished products meant for
sale shall be mentioned, in cases where semi-processed products are also sold by the
company, separate details thereof shall be given.
3. For the purpose of this paragraph, the items for which the company is holding
separate industrial license shall be treated as separated classes of goods, but where
a company has more than one industrial license for production of the same item at
different places, or for expansion of the licensed capacity, the items covered by all
such licenses shall be treated as one class.
4D. The profit and loss account shall also contain by way of a note, the following information,
namely:
(a) value of imports calculated on C.I.F., basis by the company during the financial year
in respect of:
(i) raw material;
(ii) components and spare parts;
(iii) capital goods.

(b) expenditure in foreign currency during the financial year on account of royalty,
know-how, professional consultation fees, interest, and other matters.
(c) value of all imported raw materials, spare parts and components consumed during
the financial year and the value of all indigenous raw materials, spares and
components similarly consumed and the percentage of each of the total consumption.

(d) the amount remitted during the year in foreign currencies on account of dividends,
with a specific mention of the non-resident shareholders, the number of shares held
by them on which the dividends were due and the year to which the dividend
related.
(e) earnings in foreign exchange classified under the following heads, namely:

(i) export of goods calculated on F.B.O. basis,
(ii) royalty, professional know-how and consultation fees,
(iii) interest and dividend,
(iv) other income, indicating the nature thereof.

5. The Central Government may direct that a company shall not be obliged to show the
amounts set aside to provision, other than those relating to depreciation, renewal or
diminution in value of assets, if the Central Government is satisfied that the information
should not be disclosed in the public interest and would prejudice the company, but
subject to the condition that in any heading, stating an amount arrived at after taking into
account the amount set side as such, the provision shall be so formed or marked as to
indicate that fact.

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