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Thakral Services (India)

BSE: 509015|ISIN: INE190F01028|SECTOR: Electric Equipment
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Thakral Services (India) is not listed on NSE
Mar 14
Accounting Policy Year : Mar '15
 a. Conventions
 
 The financial statements have been prepared in accordance with the
 Generally Accepted Accounting Principles in India (Indian - GAAP). The
 Company has prepared these financial statements to comply in all
 material respects with the accounting standards notified under section
 133 of the Companies Act 2013, read together with paragraph 7 of the
 Companies (Accounts) Rules 2014. The financial statements have been
 prepared on an accrual basis and under the historical cost convention.
 The accounting policies adopted in the preparation of financial
 statements are consistent with those of previous year
 
 b.  Tangible Assets
 
 Tangible fixed assets are stated at cost net of cenvat credit and other
 duty drawbacks less accumulated depreciation and impairment losses, if
 any. The Cost comprises purchase price, borrowing cost if
 capitalization criteria are met and directly attributable cost of
 bringing the asset to its working condition for its intended use. Any
 trade discount and rebate are deducted in arriving at the purchase
 price.
 
 Subsequent expenditure related to an item of fixed asset is added to
 its book value only if it increases the future benefits from the
 existing asset beyond its previously assessed standard of performance.
 All other expenses on existing fixed assets, including day-to-day
 repair and maintenance expenditure and cost of replacing parts, are
 charged to the statement of profit and loss for the year during which
 such expenses are incurred.
 
 c.  Intangible Assets
 
 Intangible Assets are stated at original cost. Additions to Intangible
 Assets are recognized in accordance with the recognition and
 measurement criteria as provided in Accounting Standard 26 issued by
 Institute of Chartered Accountants of India.
 
 d.  Depreciation on Tangible Assets
 
 Depreciation on tangible fixed assets is calculated on a straight-line
 basis using the rates arrived at, based on useful lives estimated by
 the Management, which coincide with the lives prescribed under Schedule
 II to the Companies Act, 2013. The Company has used the following
 useful lives to provide depreciation on its fixed assets.
 
 
 Particulars             Useful Life( Years)        Schedule of CA 2013
 
 Office Equipment                5.00                       5.00
 
 Computers                       3.00                       3.00
 
 Furniture & Fixtures            10.00                      10.00
 
 Vehicle                         8.00                       8.00
 
 Rental Stock                    5.00                       5.00
 
 
 e.  Amortization of Intangible Assets
 
 Amortization is provided on straight line method based on the best
 estimates of useful lives of the assets in accordance with Accounting
 Standard 26 as notified by Ministry of Corporate affairs.  Software
 capitalised and depreciated in the earlier years are now written off.
 
 f. Borrowing Costs
 
 Borrowing costs that are attributable to acquisition, construction or
 production of a qualifying asset are capitalized as a part of cost of
 such asset. All other borrowing costs are recognized as an expense in
 the year in which they are incurred.
 
 g. Impairment of Assets
 
 All fixed assets are assessed for any indication of impairment at each
 balance sheet date based on internal / external factors. On any such
 indication the impairment loss (being the excess of carrying value over
 the recoverable value of the asset) is immediately charged to the
 Profit and Loss Account. The recoverable amount is the greater of the
 asset''s net selling price and value in use. In assessing value in use,
 the estimated future cash flows are discounted to their present value
 at the weighted average cost of capital.
 
 After impairment, depreciation is provided on the revised carrying
 amount of the asset over its remaining useful life.
 
 h.  Investments
 
 investments, which are readily realizable and intended to be held for
 not more than one year from the date on which such investments are
 made, are classified as current investments. All other investments are
 classified as long-term investments.
 
 Current investments are carried in the financial statements at lower of
 cost and fair value determined on an individual investment basis.
 Long-term investments are carried at cost.  However, provision for
 diminution in value is made to recognize a decline other than temporary
 in the value of the investments.
 
 On disposal of an investment, the difference between its carrying
 amount and net disposal proceeds is charged or credited to the
 statement of profit and loss.
 
 i.  Inventories
 
 Inventories are valued at lower of cost or net realizable value. Cost
 is computed with issues being made on FIFO basis.
 
 j. Foreign exchange transaction
 
 Foreign currency transactions are recorded in the reporting currency,
 at the exchange rates prevailing on the date of the transaction.
 
 Non-monetary items which are carried in terms of historical cost
 denominated in a foreign currency are reported using the exchange rate
 at the date of the transaction; and non-monetary items which are
 carried at fair value or other similar valuation denominated in a
 foreign currency are reported using the exchange rates that existed
 when the values were determined.
 
 Monetary assets and monetary liabilities other than long term are
 translated at the exchange rate prevailing on the balance sheet date
 and the resultant gain/loss is recognised in the financial statements.
 
 k.  Revenue / Expenditure recognition
 
 Sales of products are recognised on despatch to customers and are
 exclusive of trade discounts, sales tax and other taxes. Income
 accruing in the accounting year and ascertainable/realisable with
 reasonable certainty on the date of financial statements is taken into
 account.
 
 Revenue from Installation services are recognised on accrual basis,
 when Installation is completed and it is probable that an economic
 benefit will be received which can be quantified reliably.  Revenues
 from AMC Service are recognised on a time proportion basis.
 
 Expenses accruing in the accounting year and ascertainable with
 reasonable accuracy on the date of financial statement are provided in
 the accounts.
 
 Interest income is recognised on a time proportion basis taking into
 account the amount outstanding and the rate applicable.
 
 Dividend is recognised when the shareholders'' right to receive payment
 is established by the balance sheet date.
 
 l. Retirement benefits to employees
 
 i.  Defined Contribution Plans
 
 Contributions paid/payable to defined contribution plans comprising of
 provident fund and pension fund, employees state insurance etc., are
 charged to Statement of profit and loss account on accrual basis.
 
 ii.  Defined Benefit Plan
 
 Gratuity for employees is as at the Balance Sheet date is provided for
 based on the actuarial valuation, based on Projected Unit Credit Method
 at the balance sheet date, carried out by an independent actuary.
 Actuarial Gains and Losses comprise experience adjustments and the
 effect of changes in the actuarial assumptions and are recognised
 immediately in the Statement of Profit and Loss Account as income or
 expense.
 
 iii. Other Long term employee benefits
 
 Other Long term employee benefits comprise of Compensated absences
 which are not expected to occur within twelve months after the end of
 the period in which the employee renders the related services are
 recognised as a liability at the present value of the defined benefit
 obligation at the balance sheet date based on actuarial valuation
 carried out at each balance sheet date. Actuarial gains and losses are
 recognised immediately in the profit and loss account as income or
 expense.
 
 iv.  Short term employee benefits
 
 Short term employee benefits, including accumulated compensated
 absences as at the Balance Sheet date, are recognized as an expense as
 per Company''s schemes based on the expected obligation on an
 undiscounted basis.
 
 m.  Taxes on Income
 
 Provision for income tax comprises current taxes and deferred taxes.
 Current tax is determined on the amount of tax payable in respect of
 taxable income for the year.
 
 Deferred tax is recognized on timing differences being the differences
 between taxable income and accounting income that originate in one year
 and are capable of reversal in one or more subsequent years. Deferred
 tax assets and liabilities are measured on the timing differences
 applying the tax rate and tax laws that have been enacted or
 substantively enacted by the balance sheet date.
 
 Deferred tax asset is recognised only to the extent that there is
 reasonable/virtual certainty supported by convincing evidence that
 sufficient future tax income will be available against which such
 deferred tax assets can be realized.
 
 n. Provisions
 
 A provision is recognized when an enterprise has a present obligation
 as a result of a past event and it is probable that an outflow of
 resources will be required to settle the obligation, in respect of
 which a reliable estimate can be made. Provisions, other than employee
 benefits, are not discounted to their present value and are determined
 based on management estimate required to settle the obligation at the
 balance sheet date. These are reviewed at each balance sheet date and
 adjusted to reflect the current management estimates.
 
 o. Leases
 
 Assets acquired under Leases, where the Company has substantially all
 the risks and rewards of ownership, are classified as finance leases.
 Such leases are capitalised at the inception of the lease at lower of
 the fair value or the present value of the minimum lease payments and a
 liability is created for an equivalent amount. Each lease rental paid
 is allocated between the liability and the interest cost, so as to
 obtain a constant periodic rate of interest on the outstanding
 liability for each period.
 
 Assets acquired as leases, where a significant portion of the risk and
 rewards of ownership are retained by the lessor, are classified as
 operating leases. Lease rentals are charged to the Statement of Profit
 and Loss Account on accrual basis as per terms of the lease.
 
 p. Warranty
 
 The company periodically assesses and provides for the estimated
 liability on warranty given on sale of its products based on past
 experience of claims.
 
 q. Earnings / (Loss) per share
 
 The basic earnings / (loss) per share are computed by dividing the net
 profit/(loss) after tax for the period by the weighted average number
 of equity shares outstanding during the period. Diluted earnings /
 (loss) per share, if any are computed using the weighted average number
 of equity shares and dilutive potential equity share outstanding during
 the period except when the results would be anti-dilutive.
 
 r. Contingent Liability
 
 A contingent liability is a possible obligation that arises from past
 events whose existence will be confirmed by the occurrence or
 non-occurrence of one or more uncertain future events beyond the
 control of the company or a present obligation that is not recognised
 because it is not probable that an outflow of resources will be
 required to settle the obligation. A contingent liability also arises
 in extremely rare cases where there is a liability that cannot be
 recognized because it cannot be measure reliably. The company does not
 recognize a contingent liability but discloses its existence in the
 financial statements.
 
 s. Cash and Cash Equivalents
 
 Cash and cash equivalents for the purpose of cash flow statement
 comprise cash at bank and in hand and short term investment with an
 original maturity of three months or less.
 
 
 
Source : Dion Global Solutions Limited
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