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Accounting Policies of Switching Technologies Gunther Ltd. Company

Mar 31, 2015

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.


Mar 31, 2014

The accounts have been prepared under the historical cost convention and materially comply with the mandatory accounting standards. The significant accounting policies followed by the company are as stated below:

i. Fixed Assets and Depreciation

Fixed assets are capitalized at acquisition cost including any directly attributable cost of bringing the assets to their working condition for the intended use.

Depreciation on fixed assets is provided on straight line method in accordance with Schedule XIV to the Companies Act, 1956. Where the carrying value of an asset has undergone subsequent changes on account of exchange fluctuation, the depreciation on the revised unamortized depreciable amount is provided prospectively over the residual useful life of the asset.

ii. 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.

iii. 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.

iv. 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. .

v. Revenue Recognition

Revenue is recognized at the point of dispatch of finished goods to customers from plant.

vi. 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. The Gratuity Liability for the financial year 2013-14 has been deposited into Gratuity Fund Trust on 31.03.2014.

vii. 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.

viii. Taxes on Income

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date.


Mar 31, 2013

I. Fixed Assets and Depreciation

Fixed assets are capitalized at acquisition cost including any directly attributable cost of bringing the assets to their working condition for the intended use.

Depreciation on fixed assets is provided on straight line method in accordance with Schedule XIV to the Companies Act, 1956. Where the carrying value of an asset has undergone subsequent changes on account of exchange fluctuation, the depreciation on the revised unamortised depreciable amount is provided prospectively over the residual useful life of the asset.

ii. 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 recognised 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.

iii. 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.

iv. Inventories

Inventories are valued at lower of cost and net realisable 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. .

v. Revenue Recognition

Revenue is recognized at the point of dispatch of finished goods to customers from plant.

vi. 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 is unable to fund the liability provided due to cash flow problems.

vii. 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.

viii. Taxes on Income

Income taxes are accounted for in accordance with Accounting Standard 22 - Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India. Deferred tax is accounted under the liability method, subject to consideration of prudence for deferred tax assets, at the current rate of tax, on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and are measured using tax rates enacted or substantively enacted as at the Balance Sheet date. The carrying amount of Deferred Tax Assets and Liabilities are reviewed at each Balance Sheet date


Mar 31, 2012

The accounts have been prepared under the historical cost convention and materially comply with the mandatory accounting standards. The significant accounting policies followed by the company are as stated below:

i. Fixed Assets and Depreciation

Fixed assets are capitalized at acquisition cost including any directly attributable cost of bringing the assets to their working condition for the intended use.

Depreciation on fixed assets is provided on straight line method in accordance with Note 7 to the Companies Act, 1956. Where the carrying value of an asset has undergone subsequent changes on account of exchange fluctuation, the depreciation on the revised unamortised depreciable amount is provided prospectively over the residual useful life of the asset.

ii. 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 recognised 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.

iii. 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.

iv. Inventories

Inventories are valued at lower of cost and net realisable 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. .

v. Revenue Recognition

Revenue is recognized at the point of dispatch of finished goods to customers from plant.

vi. 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 is unable to fund the liability provided due to cash flow problems.

vii. 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.

viii. Taxes on Income

Income taxes are accounted for in accordance with Accounting Standard 22 - Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India. Deferred tax is accounted under the liability method, subject to consideration of prudence for deferred tax assets, at the current rate of tax, on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and are measured using tax rates enacted or substantively enacted as at the Balance Sheet date. The carrying amount of Deferred Tax Assets and Liabilities are reviewed at each Balance Sheet date.

 
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