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Accounting Policies of Dhanalaxmi Roto Spinners Ltd. Company

Mar 31, 2015

1. General Information :

Dhanalaxmi Roto Spinners limited is mainly engaged in trading activity in the line of textiles, paper, cotton seed and wood pulp market. The company is trying to improve on small beginning made in last couple of years in commodity trading and exports.

The company is a public listed company listed on the Bombay Stock Exchange.

i. Basis of preparation of financial statements:

The accompanying financial statements are prepared under the historical cost convention in accordance with the Indian Generally Accepted Accounting Principles ("GAAP") comprising the mandatory accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 2013, on accrual basis. These accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted by the company.

ii. Use of Estimates:

The presentation of financial statements in conformity with the generally accepted principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known/materialized.

iii. Fixed Assets :

All Fixed Assets are stated at cost of acquisition, less accumulated depreciation. Cost is inclusive of freight, installation cost, duties, taxes and other direct incidental expenses. Subsequent expenditure relating to an item of fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance Intangible assets are stated at cost of acquisition, net of accumulated amortization and accumulated impairment loss if any. Intangible assets are amortised on straight line basis over their estimated useful lives.

iv. Capital Work-in-progress

Capital Work-in-progress is carried at cost, comprising direct cost and related incidental expenses.

v. Depreciation:

Depreciation has been provided on straight line method on pro-rata basis at the rates prescribed in Schedule II of the Companies Act, 2013.

vi. Impairment:

The carrying amount of assets is reviewed at each balance sheet date for any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset materially exceeds its recoverable amount. The recoverable amount is the greater of the assets 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 capita

vii. Foreign Currency Transactions:

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximate the actual rate at the date of the transaction. Monetary items denoted in foreign currencies at the year end are restated at year end rates.

Non monetary items are carried at cost.

viii. Investments:

Quoted Investments:

Investments are valued at cost. No provision is made for the temporary decrease in the value of the long term investments

Unquoted Investments: In the opinion of the management Investment in the Unquoted Investment in Associates and other Companies are of Long Term nature meant to be held permanently and any diminution in the latest available book value as compared to the cost of such shares is considered temporary by the management and hence not provided (not ascertained)

ix. Inventories:

Inventories are valued at lower of cost and net realizable value whichever is lower.

x. Revenue Recognition :

Revenue from sale of goods and services rendered is recognized upon passage of title and rendering of services.

xi. Dividend:

Income from Dividend is recognized as and when received.

xii. Financial Derivatives and Commodity Hedging Transactions:

In respect of derivative contracts, premium paid gain/losses on settlement and losses on restatement are recognized in the Profit and Loss account.

xiii. Employee Benefits :

a) Short term employee benefits :

Employee Benefits such as salaries, allowances, and non-monetary benefits which fall due for payment within a period of twelve months after rendering of services, are charged as expense to the profit and loss account in the period in which the service is rendered.

b) Post- employment benefits :

No provision has been made towards retirement benefits as in the opinion of the board; none of the employees are eligible for the same.

xiv. Taxation :

Tax expense comprises of current and deferred. Current Tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961. Provision for current tax is made on the basis of Taxable Income of the Current Accounting Year in accordance with Income Tax Act, 1961.


Mar 31, 2014

The accompanying financial statements are prepared under the historical cost convention in accordance with the Indian Generally Accepted Accounting Principles ("GAAP") comprising the mandatory accounting standards issued by the Institute of Chartered Accountants ol India and the provisions of the Companies Act, 1956, on accrual basis. These accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted by the company.

2.2 Use of Estimates: .

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that alfect the reported amount of assets and liabilities on the date ot the financial statements and the reported amount ol revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized In the period in which the results are known/materlalized.

2.3 Fixed Assets :

All Fixed Assets are stated at cost of acquisition, less accumulated depreciation.

Cost is Inclusive of freight, installation cost, duties, taxes and other direct incidental expenses.

Subsequent expenditure relating to an item of fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard ol performance

Intangible assets are stated at cost of acquisition, net of accumulated amortization and accumulated impairment loss il any. Intangible assets are amortised on straight line basis over their estimated useful lives.

2.4 Capital Work-in-Progress :

Capital Work-in-progress is carried at cost, comprising direct cost and related incidental expenses.

2.5 Impairment :

The carrying amount of assets is reviewed at each balance sheet date for any indication of Impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset materially exceeds its recoverable amount. The recoverable amount is the greater of the assets 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


Mar 31, 2013

1.1 Basis of preparation of Financial Statements:

The accompanying financial statements are prepared under the historical cost convention in accordance with the Indian Generally Accepted Accounting Principles ("GAAP") comprising the mandatory accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956, on accrual basis. These accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted by the company.

1.2 Use of Estimates:

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known/materialized.

1.3 Fixed Assets :

All Fixed Assets are stated at cost of acquisition, less accumulated depreciation. Cost is inclusive of freight, installation cost, duties, taxes and other direct incidental expenses.

Subsequent expenditure relating to an item of fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Intangible assets are stated at cost of acquisition, net of accumulated amortization and accumulated impairment loss if any. Intangible assets are amortized on straight line basis over their estimated useful lives.

1.4 Capital Work-in-Progress :

Capital Work-in-Progress is carried at cost, comprising direct cost and related incidental expenses.

1.5 Impairment:

The carrying amount of assets is reviewed at each balance sheet date for any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset materially exceeds its recoverable amount. The recoverable amount is the greater of the assets 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.

1.6 Depreciation:

Depreciation has been provided on straight line method on pro-rata basis at the rates prescribed in Schedule XIV of the Companies Act, 1956.

1.7 Inventories:

Inventories are valued at lower of cost and net realizable value whichever is lower.

1.8 Foreign Currency Transactions:

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximate the actual are at the date of the transaction.

Monetary items denoted in foreign currencies at the yearend are restated at year end rates.

Non monetary items are carried at cost.

1.9 Investments: Quoted Investments:

Investments are valued at cost. No provision is made for the temporary decrease in the value of the long term investments

Unquoted Investments: In the opinion of the management Investment in the Unquoted Investment in Associates and other Companies are of Long Term nature meant to be held permanently and any diminution in the latest available book value as compared to the cost of such shares is considered temporary by the management and hence not provided (not ascertained)

1.10 Revenue Recognition :

Revenue from sale of goods and services rendered is recognized upon passage of title and rendering of services.

1.11 Dividend:

Income from Dividend is recognized as and when received.

1.12 Financial Derivatives and Commodity Hedging transactions :

In respect of derivative contracts premium paid gain/losses on settlement and losses on restatement are recognized in the statement of profit and loss.

1.13 Employee Benefits :

a) Short term employee benefits :

Employee Benefits such as salaries, allowances, and non-monetary benefits which fall due for payment within a period of twelve months after rendering of services, are charged as expense to the profit and loss account in the period in which the service is rendered.

b) Post- employment benefits :

No provision has been made towards retirement benefits as in the opinion of the board; none of the employees are eligible for the same.

1.14 Taxation :

Tax expense comprises of current, and deferred. Current Tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961. Provision for current tax is made on the basis of Taxable Income of the Current Accounting Year in accordance with Income Tax Act, 1961.

Deferred Tax is recognized for all the timing differences. The Company is providing and recognizing deferred tax on timing differences between taxable income and accounting income subject to consideration of prudence.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle the asset and liability on a net basis. Deferred tax assets and deferred tax liability are offset when there is legally enforceable right to set off assets against liabilities representing current tax and where the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same governing taxation laws.

1.15 Provisions and Contingent Liabilities:

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

1.16 Earnings per share:

In determining Earnings per share, the company considers the net profit after tax and includes the post tax effect of any extra ordinary items. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period.


Mar 31, 2012

1.1 Basis of preparation of Financial Statements:

The accompanying financial statements are prepared under the historical cost convention in accordance with the Indian Generally Accepted Accounting Principles ("GAAP") comprising the mandatory accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956, on accrual basis.These accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted by the company. All Assets and Liabilities have been classified as current or non current as per the Company's normal operating cycle and other certain set out in Schedule VI to the Company's Act, 1956.

1.2 Use of Estimates:

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known/materialized.

1.3 Fixed Assets :

All Fixed Assets are stated at cost of acquisition, less accumulated depreciation. Cost is inclusive of freight, installation cost, duties, taxes and other direct incidental expenses.

Subsequent expenditure relating to an item of fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Intangible assets are stated at cost of acquisition, net of accumulated amortization and accumulated impairment loss if any. Intangible assets are amortised on straight line basis over their estimated useful lives.

1.4 Capital Work-in-Progress :

Capital Work-in-Progress is carried at cost, comprising direct cost and related incidental expenses.

1.5 Impairment:

The carrying amount of assets is reviewed at each balance sheet date for any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset materially exceeds its recoverable amount.The recoverable amount is the greater of the assets 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.

1.6 Depreciation:

Depreciation has been provided on straight line method on pro-rata basis at the rates prescribed in Schedule XIV of the Companies Act, 1956.

1.7 Inventories:

Inventories are valued at lower of cost and net realizable value whichever is lower.

1.8 Foreign Currency Transactions:

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximate the actual rate at the date of the transaction.

Monetary items denoted in foreign currencies at the year end are restated at year end rates.

Non monetary items are carried at cost.

1.9 Investments:

Quoted Investments:

Investments are valued at cost. No provision is made for the temporary decrease in the value of the long term investments

Unquoted Investments: In the opinion of the management investment in the Unquoted Investment in Associates and other Companies are of Long Term nature meant to be held permanently and any diminution in the latest available book value as compared to the cost of such shares is considered temporary by the management and hence not provided (not ascertained)

1.10 Revenue Recognition :

Revenue from sale of goods and services rendered is recognized upon passage of title and rendering of services.

1.11 Dividend:

Income from Dividend is recognized as and when received.

1.12 Employee Benefits :

a) Short term employee benefits :

Employee Benefits such as salaries, allowances, and non-monetary benefits which fall due for payment within a period of twelve months after rendering of services, are charged as expense to the profit and loss account in the period in which the service is rendered.

b) Post- employment benefits :

No provision has been made towards retirement benefits as in the opinion of the board; none of the employees are eligible for the same.

1.13 Taxation :

Tax expenses comprises of current, and deferred. Current Tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961. Provision for current tax is made on the basis of Taxable Income of the Current Accounting Year in accordance with Income Tax Act, 1961.

Deferred Tax is recognized for all the timing differences. The Company is providing and recognizing deferred tax on timing differences between taxable income and accounting income subject to consideration of prudence.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle the asset and liability on a net basis. Deferred tax assets and deferred tax liability are offset when there is legally enforceable right to set off assets against liabilities representing current tax and where the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same governing taxation laws.

1.14 Provisions and Contingent Liabilities:

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

1.15 Earnings per share:

In determining Earnings per share, the company considers the net profit after tax and includes the post tax effect of any extra ordinary items. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period.


Mar 31, 2011

1) Basis of preparation of financial statements:

The accompanying financial statements are prepared under the historical cost convention in accordance with the Indian Generally Accepted Accounting Principles ("GAAP") comprising the mandatory accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956, on accrual basis. These accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted by the company,

2) Use of Estimates:

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known/ materialized.

3) Fixed Assets :

All Fixed Assets are stated at cost of acquisition, less accumulated depreciation. Cost is inclusive of freight, installation cost, duties, taxes and other direct incidental expenses.

4) Capital Work-in-Progress

Capital Work-in-Progress is carried at cost, comprising direct cost and related incidental expenses.

5) Depreciation:

Depreciation has been provided on straight line method on pro- rata basis at the rates prescribed in Schedule XIV of the Companies Act, 1956.

6) Impairment:

The carrying amount of assets is reviewed at each balance sheet date lor any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset materially exceeds its recoverable amount. The recoverable amount is the greater of the assets 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,

7) Revenue Recognition:

Revenue from sale of goods and services rendered is recognized upon passage of title and rendering of services.

8) Inventories:

Inventories are valued at lower of cost and net realizable value which ever is lower.

9) Dividend:

Income from Dividend is recognized as and when received.

10) Investments:

Quoted Investments: Investments are valued at cost. No provision is made for the temporary decrease in the value of the long term investments

Unquoted Investments: In the opinion of the management Investment in the Unquoted Investment in Associates and other Companies are of Long Term nature meant to be held permanently and any diminution in the latest available book value as compared to the cost of such shares is considered temporary by the management and hence not provided (not ascertained)

11) Employee Benefits :

a) Short term employee benefits :

Employee Benefits such as salaries, allowances, and non- monetary benefits which fall due for payment within a period of twelve months after rendering of services, are charged as expense to the profit and loss account in the period in which the service is rendered.

b) Post- employment benefits :

No provision has been made towards retirement benefits as in the opinion of the board; none of the employees are eligible for the same.

12) Taxation:

Tax expenses comprises of current, and deferred. Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961

Provision for current tax is made on the basis of Taxable Income of the Current Accounting Year in accordance with Income Tax Act. 1961. The Company is providing and recognizing deferred tax on timing differences between taxable income and accounting income subject to consideration of prudence,

13) Provisions and Contingent Liabilities:

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

In determining Earnings per share, the company considers the net profit after tax and includes the post tax effect of any

14) Earnings per Share:

In determining Earnings per share, the company considers the net profit after tax and includes the past tax effect of any extra ordinary items. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period.


Mar 31, 2010

1) Basis of preparation of financial statements:

The accompanying financial statements are prepared under the historical cost convention in accordance with the Indian Generally Accepted Accounting Principles ("GAAP") comprising the mandatory accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956, on accrual basis. These accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted by the company.

2) Use of Estimates:

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known/materialized.

3) Fixed Assets :

¦ All Fixed Assets are stated at cost of acquisition, less accumulated - depreciation. Cost is inclusive of freight, installation cost, duties,taxes and other direct incidental expenses.

4) Capital Work-in-Progress:

Capital Work-in-Progress is carried at cost comprising direct cost and (related incidental expenses).

5) Depreciation:

Depreciation on fixed assets (other than land and livestock where no depreciation has been provided) is provided on straight line method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

6) Impairment:

The carrying amount of assets is reviewed at eacl" balance sheet date for any indication of impairment based on internal external factors. An impairment loss is recognized wherever the carrying, amount of an asset materially exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use. In assessing value .in use, the estimatedfuture cash flows are discounted to their present value at the weighted average cost of capital.

7) Revenu Recognition :

Revenue from sale of goods and services rendered is recognized upon passage of title and rendering of services.

8) Inventories:

Inventories are valued at lower of cost and net realizable value which ever is lower.

9) Dividend:

Income from Dividend is recognized as and when received.

10) Investments:

Quoted Investments:

Investments are valued at cost. No provision is made for the temporary

decrease in the value of the long term investments

Unquoted Investments: In the opinion of the management Investment in the Unquoted Investment in Associates and other Companies are of Long Term nature meant to be held permanently and any diminution in the latest available book value as compared to the cost of such shares is considered temporary by the management and hence not provided (not ascertained)

11) Employee Benefits :

a) Short term employee benefits :

Employee Benefits such as salaries, allowances, and non-monetary benefits which fall due for payment within a period of twelve months after rendering of services, are charged as expense to the profit and loss account in the period in which the service is rendered.

b) Post- employment benefits :

No provision has been made towards retirement benefits as in the opinion of the board; none of the employees are eligible for the same.

12) Taxation :

Tax expenses comprises of current, and deferred. Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961.

Provision for Current Tax is made on the basis of Taxable Income of the Current Accounting Year in accordance with Income Tax Act, 1961. The company is providing and recognizing deferred tax on timing diffrences between Taxable Income and accounting Income subject to consideration of prudence.

13) Provisions and Contingent Liabilities:

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

14) Earnings per share:

In determining Earnings per share, the company considers the net profit after tax and includes the post tax effect of any extra ordinary items. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period.

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