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SENSEX NIFTY India | Accounting Policy > Electric Equipment > Accounting Policy followed by Marsons - BSE: 517467, NSE: N.A


BSE: 517467|ISIN: INE415B01036|SECTOR: Electric Equipment
Jun 18, 16:00
Marsons is not listed on NSE
Mar 14
Accounting Policy Year : Jun '15
a) Basis of Preparation of Financial Statement
 The financial statements of the Company have been prepared in
 accordance with the Generally Accepted Accounting Principles in India
 (Indian GAAP) to comply with the Accounting Standards specified under
 Section 133 of the Companies Act, 2013, read with Rule 7 of the
 Companies (accounts) Rules, 2014 and the relevant provisions of the
 Companies Act, 2013 (the 2013 Act''). The financial statement have been
 prepared on accrual basis under the historical cost convention. The
 accounting policies adopted in the preparation of the financial
 statements are consistent with those followed in the previous year.
 b) Use of Estimates
 The preparation of the financial statements in conformity with Indian
 GAAP requires the Management to make estimates and assumptions
 considered in the reported amounts of assets and liabilities (including
 contingent liabilities) and the reported income and expenses during the
 year. The Management believes that the estimates used in preparation of
 the financial statement are prudent and reasonable. Future results
 could differ due to these estimates and the differences between the
 actual results and the estimates are recognized in the periods in which
 the results are known/materialize.
 c) Fixed Assets and Depreciation/Amortization
 Tangible Fixed Assets are stated at historical cost less accumulated
 depreciation. Cost comprises purchase price, duties, levies and other
 directly attributable expenses of bringing the asset to its working
 condition for the intended use.
 Depreciation on tangible assets, is provided using the written down
 value method as per the useful life of various assets specified under
 Schedule II to the Companies Act, 2013. In respect of fixed assets
 purchased during the year, depreciation is provided on a pro-rata basis
 from the date on which such asset is ready to put to use.
 Pursuant to the transition provision prescribed in Schedule II to the
 Act, the Company has fully depreciated the carrying value of assets,
 where the remaining useful life of the asset was determined to be Nil
 as on 1st April, 2014.
 Intangible Fixed Assets are stated at historical cost less accumulated
 amortization. Cost comprises purchase price, duties, levies and other
 directly attributable expenses of bringing the asset to its working
 condition for the intended use. Cost is amortized over its useful
 economic life based on expected benefit.
 d) Investments
 Long-term investments are carried at cost less any other than temporary
 diminution in value, determined separately for each individual
 investment. Current investment are carried at lower of cost and fair
 e) Inventories
 Inventories are valued at lower of cost and estimated net realizable
 value. Raw Materials and stores & spares have been accordingly valued
 at average cost including all costs incurred in bringing the
 inventories to their present location and condition. Finished Goods and
 Work-in-progress include proportion of costs of conversion.
 f) Revenue Recognition
 Revenue from sales of transformers are recognized on dispatch of goods
 to the customers.
 g) Sales and Service Income
 Sales are stated net of excise duties, sales tax and trade discount and
 Service income excludes service tax.
 h) Other Income
 Interest income is accounted on accrual basis.
 i) Cenvat Credit
 Cenvat Credit is accounted for on accrual basis on purchase of eligible
 inputs, capital goods and services.
 j) Employee Benefits
 (a) Defined Contribution Plans :
 Contribution to provident fund, pension schemes and employee''s state
 insurance scheme are defined contribution schemes and are charged to
 profit and loss account for the year. The Company makes specified
 monthly contributions towards employee''s provident fund to the Regional
 Provident Fund Commissioner. Compensated absences are short term and
 recognized on an undiscounted accrual basis during the period when the
 employee renders service.
 (b) Defined Benefit plans:
 Gratuity liability is a defined benefit obligation and is provided for
 on the basis of actuarial valuation made at the end of each financial
 year using project unit credit method.
 Contribution is made annually to Gratuity Fund under approved Group
 Gratuity scheme with Life Insurance Corporation of India and charged to
 k) Taxation
 Income tax expense comprises current tax expense and deferred tax
 a) Current Tax
 Provision for current tax is calculated in accordance with the
 provision of the Income Tax Act, 1961 and is made annually based on the
 tax liability computed after considering tax allowances and exemptions.
 b) Deferred Tax
 Deferred tax liability or asset is recognized for timing differences
 between the profit/loss offered for income taxes and profits/losses as
 per the financial statements. Deferred tax assets and liabilities are
 measured using the tax rate and tax law that have been enacted or
 substantively enacted at the balance sheet date.
 l) Earnings per share (''EPS'')
 Basic EPS is computed using the weighted average number of equity
 shares outstanding during the year. Diluted EPS is computed using the
 weighted average number of equity and dilutive equity equivalent share
 outstanding during the year expect where the results would be anti
 dilutive. The number of equity shares is adjusted for any share splits
 and bonus shares issued effected prior to the approval of the financial
 statements by the Board of Directors.
 m) Research and Development Expenses
 All revenue expenditure pertaining to research are charged to the
 profit and loss account in the year in which they are incurred and
 development expenditure of capital nature is capitalized as fixed
 assets and depreciation as per the company policy.
Source : Dion Global Solutions Limited
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