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Notes to Accounts of Dolat Investments Ltd.

Mar 31, 2015

1. Corporate Information

Dolat Investments Ltd. (the company) is a public company domiciled in India and is deemed to be incor- porated under the provisions of the Companies Act, 2013. Its shares are listed on Bombay Stock Exchange Ltd. The company is engaged in the trading in shares, securities and the commodities through various stock/commodities exchanges.

2. Terms/ Rights Attached to Equity Shares:

The company has only one class of equity shares having par value of Re 1 each.Each holder of equity shares is entitled to one vote per share. The company delcares and pays dividend in Indian Rupees. In the event of liquidation of the company, the holders of the equity shares will be entitled to receive remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

3. Contingent liability not provided in respect of Income Tax liabilities of A.Y. 2009-10 and A.Y. 2012-13 of ' 32,72,650/- and ' 6,33,250/- respectively for which rectification under section 154 of the Income Tax Act,1961 is pending before the Income Tax Department.

4. Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II. Accordingly the unamortized carrying value is being depreciated/amortized over the revised/remaining useful lives by a revised WDV rate on written down value method. The written down value of fixed assets whose lives have expired as at 01.04.2014 have been adjusted net of tax, in the opening balance of Profit and Loss Account amounting to ' 99,400.80

5. The method of valuation of equity trading stock has been changed from lower of cost or market value to cost method on FIFO basis from current financial year onwards. Had the company followed the earlier method, profit would have been lower by ' 71,93,257.22 (net of tax) for the year ended 31st March, 2015.

6. Accounting policy related to employee*s benefits of gratuity and other benefits is accounted in accordance with AS 15 (Revised)-"Employees Benefit". In the opinion of the management, the provisions of provident fund laws are not applicable in view of number of employees of the company being less than the prescribed number. No provision for leave encashment is made during the year in view of company*s policy of not allowing encashment and accumulation of eligible leave.

The Company is recognizing and accruing the employees benefits as per accounting standard (AS) -15 On "Employees Benefits"

7. Segment Reporting:

The company has identified business segment as the primary segment after considering all the relevant factors. The companies trading and investment activities are carried out primarily in India and as such there are no reportable geographical segments.

8. The expenses, which are not directly identifiable to a specific business segment, are clubbed under "Un- allocated Corporate Expenses" and similarly the common assets and liabilities, which are not directly identifiable to a specific segment are clubbed under "Unallocated Corporate Assets/Liabilities on the ba- sis of reasonable estimates. The segment reporting is given only for this financial year as the Accounting Standard 17 - Segment Reporting was not applicable for the previous financial year.

9. Related parties disclosures

i. Key Management Personnel Rajendra D. Shah & Harsha H. Shah

ii. Relative of Key Management Personnel Harendra D. Shah, Shailesh D. Shah & Pankaj D. Shah

iii. Associates

Purvag Commodities & Derivatives Pvt. Ltd., Nirpan Securities Pvt. Ltd. Dolat Capital Market Pvt. Ltd. Shailesh Shah Securities Pvt. Ltd.

10. Taxation:

a) Provision for current tax for the current year has been made, taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

b) In accordance with AS - 22 "Taxes on Income" issued by the Institute of Chartered Accountants of In- dia, net deferred tax liabilities on account of timing difference for current year of Rs.1,52,90,080.75 is charged to the Statement of Profit & Loss.

11. As at March 31, 2015, the company has reviewed the future earnings of all the cash generating units in ac- cordance with the Accounting Standard 28 "Impairment of Assets. As the carrying amount of assets does not exceed the future recoverable amount, consequently, no adjustment to carrying amount of assets is considered necessary by the Management.

12. In the Opinion of the Management, the current Assets and Loans and Advances as shown in the books are expected to realize at their Book Values in the normal course of business and adequate provision have been made in respect of all known liabilities.

13. Based on the information available with the Company, there are no suppliers who are registered as micro, small or medium enterprises under The Micro, Small and Medium Enterprises Development Act, 2006 as at March 31, 2015.

14. Previous year's figures have been regrouped wherever necessary to confirm with this year's classifica- tion.


Mar 31, 2014

1. Corporate Information

Dolat Investments Ltd. (the company) is a public company domiciled in India and incor- porated under the provisions of the Companies Act, 1956. Its shares are listed on Bom- bay Stock Exchange Ltd. The company is engaged in the trading in shares, securities and the commodities through various stock/commodities exchanges.

2. Contingent liability not provided in respect of Income Tax liability of A.Y. 2009-10 of Rs.32,72,650/ - for which rectification under section 154 of the Income Tax Act,1961 is pending before the Income Tax Department.

3. Exceptional Items

The Company has unsettled exposure of Rs. 4312.65 Lakhs through NSEL/broker for various commodities trade. As no physical stock is received from/through NSEL, the sales recognized of Rs. 4312.65 Lakh is reversed. Company had made provision for bad debt during second quarter ended 30.09.2013 for Rs. 876.81 Lakh and same is written back in view of reversal of sales as referred above and due to fact that NSEL has not been able to adhere to its payment obligations.

Further as company has paid Rs. 4262.17 Lakh as cost of purchases for which no stock is received by the company as referred above, hence the said cost is written off as busi- ness loss while determining stock in trade as on 31.03.2014. Company received a sum of Rs.268.03 Lakhs towards disputed transaction on platform of NSEL and same is offered as income and shown under income from operation.

Economic Office Wing (EOW) of Mumbai Police is investigating the unsettled transac- tions of NSEL on the basis of complaint filed by NSEL Investors Forum of which Com- pany''s Broker is a member and said forum has also filed writ petition in the Bombay High Court

4. Accounting policy related to employee''s benefits of gratuity and other benefits is ac- counted in accordance with AS 15 (Revised)-"Employees Benefit". In the opinion of the management, the provisions of provident fund laws are not applicable in view of num- ber of employees of the company being less than the prescribed number. No provision for leave encashment is made during the year in view of company''s policy of not allow- ing encashment and accumulation of eligible leave.

The Company is recognizing and accruing the employees benefits as per accounting standard (AS) - 15 On "Employees Benefits"

Details are given below:-

5. Segment Reporting:

The company has identified business segment being trading in commodities and shares and securities as the primary segment after considering all the relevant factors. The companies trading and investment activities are carried out primarily in India and as such there are no reportable geographical segments. However the disclosure as regards to the segment reporting not given in view of the fact that the company has carried out trading in commodities substantially during and previous year and the segment rev- enue, segment results and the segment assets attributable to the business of trading in shares and securities is less than 10% of the total revenue, total results and total assets respectively.

6. Related parties disclosures

i. Key Management Personnel

Mr. Harendra D. Shah, Mr. Rajendra D. Shah & Mr. Pankaj D. Shah

ii. Relative of Key Management Personnel Mr. Shailesh D. Shah

iii. Associates

Purvag Commodities & Derivatives Pvt. Ltd., Nirpan Securities Pvt. Ltd.

Related party relationship have been identified by the management and relied upon by the auditors.

7. Basic & Diluted Earning / (Loss) per shares

31. Taxation:

a) Provision for current tax for the current year has been made, taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

b) In accordance with AS - 22 "Taxes on Income" issued by the Institute of Chartered Ac- countants of India, net deferred tax assets on account of timing difference for current year of Rs. 14,00,09,136.62 is credited to the Statement of Profit & Loss.

8. As at March 31, 2014, the company has reviewed the future earnings of all the cash generating units in accordance with the Accounting Standard 28 "Impairment of Assets. As the carrying amount of assets does not exceed the future recoverable amount, con- sequently, no adjustment to carrying amount of assets is considered necessary by the Management.

9. In the Opinion of the Management, the current Assets and Loans and Advances as shown in the books are expected to realize at their Book Values in the normal course of busi- ness and adequate provision have been made in respect of all known liabilities.

10. Based on the information available with the Company, there are no suppliers who are registered as micro, small or medium enterprises under The Micro, Small and Medium Enterprises Development Act, 2006 as at March 31, 2014.

11. Open Interest in commodities futures as on 31st March, 2014 a) Open Short Positions.


Mar 31, 2013

1. Corporate Information

Dolat Investments Ltd. (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange Ltd. The company is engaged in the trading in shares, securities and the commodities through various stock/commodities exchanges.

2. Contingent liability not provided in respect of Income Tax liability of A.Y. 2009-10 of Rs. 32,72,650/- for which rectification under section 154 of the Income Tax Act,1961 is pending before the Income Tax Department.

3. Accounting policy related to employee''s benefits of gratuity and other benefits is accounted in accordance with AS 15 (Revised)-"Employees Benefit". In the opinion of the management, the provisions of provident fund laws are not applicable in view of number of employees of the company being less than the prescribed number. No provision for leave encashment is made during the year in view of company''s policy of not allowing encashment and accumulation of eligible leave.

The Company is recognizing and accruing the employees benefits as per accounting standard (AS) -15 On "Employees Benefits"

4. Segment Reporting:

The company has identified business segment as the primary segment after considering all the relevant factors. The companies trading and investment activities are carried out primarily in India and as such there are no reportable geographical segments.

The expenses, which are not directly identifiable to a specific business segment, are clubbed under "Unallocated Corporate Expenses" and similarly, the common assets and liabilities, which are not directly identifiable to a specific segment are clubbed under "Unallocated Corporate Assets/Liabilities on the basis of reasonable estimates.

5. Related parties disclosures

i. Key Management Personnel

Harendra D. Shah, Rajendra D. Shah & Pankaj D. Shah

ii. Relative of Key Management Personnel

Shailesh D. Shah

iii. Associates

Purvag Commodities & Derivatives Pvt. Ltd.,

iv . Transactions carried out with Related Parties referred above in ordinary course of business :

6. Taxation:

a) Provision for current tax for the current year has been made, taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

b) In accordance with AS – 22 "Taxes on Income" issued by the Institute of Chartered Accountants of India, net deferred tax assets on account of timing difference for current year of Rs. 22,347.36 is credited to the Statement of Profit & Loss.

7. As at March 31, 2013, the company has reviewed the future earnings of all the cash generating units in accordance with the Accounting Standard 28 "Impairment of Assets. As the carrying amount of assets does not exceed the future recoverable amount, consequently, no adjustment to carrying amount of assets is considered necessary by the Management.

8. In the Opinion of the Management, the current Assets and Loans and Advances as shown in the books are expected to realize at their Book Values in the normal course of business and adequate provision have been made in respect of all known liabilities.

9. Based on the information available with the Company, there are no suppliers who are registered as micro, small or medium enterprises under The Micro, Small and Medium Enterprises Development Act, 2006 as at March 31, 2013.


Mar 31, 2011

1. There is no liability which is contingent in nature.

2. As at March 31, 2011, the company has reviewed the future earnings of all the cash generating units in accordance with the Accounting Standard 28 "Impairment of Assets. As the carrying amount of assets does not exceed the future recoverable amount, consequently, no adjustment to carrying amount of assets is considered necessary by the Management.

3. In the Opinion of the Management, the current Assets and Loans and Advances as shown in the books are expected to realize at their Book Values in the normal course of business and adequate provision have been made in respect of all known liabilities.

4. Certain balances under the heads Sundry Debtors, Loans & Advances, Sundry Creditors are subject to confirmations from the respective parties and consequential reconciliation, if any.

5. Based on the information available with the Company, there are no suppliers who are registered as micro, small or medium enterprises under The Micro, Small and Medium Enterprises Development Act, 2006 as at March 31, 2011.

6. Taxation:

I. Provision for current tax for the current year has been made, taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

7. Segment Reporting:

The company has identified business segment as the primary segment after considering all the relevant factors. The companies trading and investment activities are carried out primarily in India and as such there are no reportable geographical segments.

The expenses, which are not directly identifiable to a specific business segment, are clubbed under "Unallocated Corporate Expenses" and similarly, the common assets and liabilities, which are not directly identifiable to a specific segment are clubbed under "Unallocated Corporate Assets/Liabilities on the basis of reasonable estimates.

8. Accounting policy related to employee's benefits of gratuity and other benefits is accounted in accordance with AS 15 (Revised)-"Employees Benefit". In the opinion of the management, the provisions of provident fund laws are not applicable in view of number of employees of the company being less than the prescribed number. No provision for leave encashment is made during the year in view of company's policy of not allowing encashment and accumulation of eligible leave.

The Company is recognizing and accruing the employees benefits as per accounting standard (AS) -15 On "Employees Benefits"

9. Disclosures as required by Accounting Standard 18 "Related Party Disclosures" -

i. Key Management Personnel

Harendra D. Shah, Rajendra D. Shah & Pankaj D. Shah

ii. Relative of Key Management Personnel

Shailesh D. Shah

iii. Associates

Dolat Capital Market Pvt. Ltd.,

Nirpan Securities Pvt. Ltd.,

Purvag Commodities & Derivatives Pvt. Ltd.,

Vaibhav Stocks & Derivatives Pvt. Ltd.

Shailesh Shah Securities Pvt. Ltd.

- Related party relationship have been identified by the management and relied upon by the auditors.

10. Previous year's figures have been regrouped / reclassified / rearranged wherever necessary to confirm with this year's classification.


Mar 31, 2010

1. Based on the information available with the Company, there are no suppliers who are registered as micro, small or medium enterprises under The Micro, Small and Medium Enterprises Development Act, 2006 as at March 31, 2010.

2. Taxation:

I. Provision for current tax for the current year has been made, taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

II. In accordance with AS - 22 "Taxes on Income" issued by the Institute of Chartered Accountants of India, net deferred tax assets on account of timing difference for current year of Rs.41,427.72 is credited to profit and loss account. The components of deferred tax assets and (liabilities) are as under:

3. Segment Reporting:

The company has identified business segment as the primary segment after considering all the relevant factors. The companys trading and investment activities are carried out primarily in India and as such there are no reportable geographical segments.

The expenses, which are not directly identifiable to a specific business segment, are clubbed under "Unallocated Corporate Expenses" and similarly, the common assets and liabilities, which are not directly identifiable to a specific segment are clubbed under "Unallocated Corporate Assets/Liabilities on the basis of reasonable estimates.

4. Open Interest in individual Stock Futures as on 31* March, 2010

5. Accounting policy related to employees benefits of gratuity and other benefits is accounted in accordance with AS 15 (Revised)-"Employees Benefit". In the opinion of the management, the provisions of provident fund laws are not applicable in view of number of employees of the company being less than the prescribed number. No provision for leave encashment is made during the year in view of companys policy of not allowing encashment and accumulation of eligible leave.

6. Sundry Debtors includes Rs. 94,98,482.47 receivable from group companies in which Mr. Harendra D. Shah and Mr. Rajendra D. Shah are also directors. The maximum amount due from the companies is Rs. 8,05,23,972.

7. Disclosures as required by Accounting Standard 18 "Related Party Disclosures" -

i. Key Management Personnel

Harendra D. Shah and Rajendra D. Shah, ii. Relative of Key Management Personnel

Pankaj D. Shah

iii. Associates

Dolat Capital Market Pvt. Ltd., Nirpan Securities Pvt. Ltd.,

Purvag Commodities & Derivati ves Pvt. Ltd., Vaibhav Stocks & Derivatives Pvt. Ltd.

Shailesh Shah Securities Pvt. Ltd.

1. The Quantitative information as per requirement of para 3 and 4 of part II of schedule VI of the companies Act, 1956 are as under:

8. Previous years figures have been regrouped / reclassified / rearranged wherever necessary to confirm with this years classification

 
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