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SENSEX NIFTY India | Accounting Policy > Electric Equipment > Accounting Policy followed by Switching Technologies Gunther - BSE: 517201, NSE: N.A

Switching Technologies Gunther

BSE: 517201|ISIN: INE311D01017|SECTOR: Electric Equipment
Oct 15, 16:00
-1.45 (-3.2%)
Switching Technologies Gunther is not listed on NSE
Mar 14
Accounting Policy Year : Mar '15
i.  Basis of Accounting
 These financial statements have been prepared under historical cost
 convention from Books of Accounts maintained on Accrual basis (unless
 otherwise stated herewith) in conformity with Accounting principles
 generally accepted in India and comply with the Accounting Standards
 issued by Institute of Chartered Accountants of India and referred to
 Sec 129 and 133 of Companies Act, 2013. The Accounting Policies applied
 by the Company are consistent with those used in previous year.
 ii.  Fixed Assets and Depreciation
 Fixed assets are stated at their original cost, which includes
 expenditure incurred in the Acquisition of Assets/construction of
 assets, Pre-operative expenses till the commencement of operations and
 Interest up to the date of commencement of commercial production.
 Depreciation on fixed assets has been provided on straight line method
 based on life assigned to each asset in accordance with Schedule II of
 the Companies Act, 2013.
 iii.  Impairment of Fixed Assets
 Consideration is given at each Balance Sheet date to determine whether
 there is any indication of impairment of the carrying amount of the
 company''s fixed assets. If any indication exists, an asset''s
 recoverable amount is estimated. An impairment loss is recognized
 whenever the carrying amount of an asset exceeds its recoverable
 amount. The recoverable amount is greater of the net selling price and
 value in use. In assessing the value based in use, the estimated future
 cash flows are discounted to their present value based on an
 appropriate discount factor.
 iv.  Foreign Exchange Transactions
 Foreign exchange transactions are recorded in the books by applying the
 exchange rate as on the date of the transaction. Foreign currency
 liabilities (other than for acquisition of fixed assets from outside
 India) are converted at exchange rates prevailing on the last working
 day of the accounting year or settlement date as applicable and for
 fixed assets acquired from outside India the exchange difference is
 adjusted to the cost of the assets. Other foreign currency assets and
 liabilities are converted at the exchange rate prevailing on the last
 working day of the accounting year or settlement date, as applicable
 and the exchange difference is adjusted to the Profit and Loss Account.
 v.  Inventories
 Inventories are valued at lower of cost or net realizable value except
 stores and spares, which are valued at cost. The determination of cost
 of various categories of inventories is as follows:
 a.  Stores and spares and raw materials are valued at rates determined
 on First In - First Out method.
 b.  Work-in-process and finished goods are valued on full absorption
 costing method based on annual average cost of production.
 vi.  Revenue Recognition
 Revenue is recognized at the point of dispatch of finished goods to
 customers from plant.
 vii.  Retirement Benefits
 Contributions to provident fund are made monthly, at predetermined
 rates, and debited to the Profit and Loss Account on an accrual basis.
 Provision for Gratuity and Leave encashment has been made on the basis
 of Actuarial Valuation as per Accounting Standard AS-15. The Company
 has subscribed to group gratuity scheme of LIC for all its employees.
 The date of commencement of the scheme is 26-03-2014.
 viii. Contingent Liabilities
 All liabilities have been provided for in the accounts except
 liabilities of a contingent nature, which have been disclosed at their
 estimated value in the notes to the accounts.
 ix.  Taxation
 Provision is made for Income tax liability estimated to arise on the
 results for the year at the current rate of tax in accordance with
 Income Tax Act, 1961.
 In accordance with the Accounting Standard 22, Accounting for Taxes on
 Income, issued by Institute of Chartered Accountants of India, Deferred
 tax resulting from timing differences between book profits and Tax
 profit is accounted for, at the current rate of tax, to the extent of
 timing difference are expected to crystallize.
Source : Dion Global Solutions Limited
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