Accounting Policies of Dhanleela Investments & Trading Company Ltd. Company

Mar 31, 2018

1: Significant Accounting Policies:

a. Corporate Information:

Dhanleela Investments & Trading Company Limited is public limited listed company. The Company is engaged in the business of Trading of textile and investments.

b. Basis of preparation of Financial Statements:

i. The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 2013. Accounting Standards (AS) referred to in the notes are as issued by the Institute of Chartered Accountants of India.

ii. Accounting policies not specifically referred to otherwise are consistent with the generally accepted accounting principles followed by the Company.

iii. The preparation of financial statements requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known / materialized.

c. Investments:

Investments are long term in the nature and stated at cost.

d. Revenue Recognition:

For dealing in Shares & Securities in cash market segment the same are accounted for on the basis of bill dates received from the brokers.

e. Inventories:

Inventories of securities are stated at cost & inventories of fabric are stated at cost or net realisable value whichever is lower.

f. Taxes on Income:

Provision for tax is made on the basis of the estimated taxable income as per the provisions of the Income Tax Act, 1961 and the relevant Finance Act, after taking into consideration judicial pronouncements and opinions of the Company''s tax advisors.

g. Earnings per Share:

Basic earnings per share is computed by dividing the profit/(loss) after tax (including the post-tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share is computed by dividing the profit/(loss) after tax (including the post-tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of shares which could have been issued on the conversion of all dilutive potential equity shares.

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Mar 31, 2016

21: Significant Accounting Policies: a. Corporate Information:

Dhanleela Investments & Trading Company Limited is public limited listed company. The Company is engaged in the business of Trading of textile and investments.

b. Basis of preparation of Financial Statements:

i. The financial statements have been prepared under the historical cost convention, in

accordance with the generally accepted accounting principles and the provisions of the Companies Act, 2013. Accounting Standards (AS) referred to in the notes are as issued by the Institute of Chartered Accountants of India.

ii. Accounting policies not specifically referred to otherwise are consistent with the generally accepted accounting principles followed by the Company.

iv.The preparation of financial statements requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known / materialized.

c. Investments:

Investments are long term in the nature and stated at cost.

d. Revenue Recognition:

For dealing in Shares & Securities in cash market segment the same are accounted for on the basis of bill dates received from the brokers.

e. Inventories:

Inventories of securities are stated at cost & inventories of fabric are stated at cost or net realizable value whichever is lower.

f. Taxes on Income:

Provision for tax is made on the basis of the estimated taxable income as per the provisions of the Income Tax Act, 1961 and the relevant Finance Act, after taking into consideration judicial pronouncements and opinions of the Company''s tax advisors.

g. Earnings per Share:

Basic earnings per share is computed by dividing the profit/ (loss) after tax (including the post-tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share is computed by dividing the profit/(loss) after tax (including the post-tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of shares which could have been issued on the conversion of all dilutive potential equity shares.

NOTE 22: Provisions, Contingent Liabilities & Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

Following dispute with income tax department not provided in financial statements:

NOTE 23: In the opinion of the Board, the Current Assets Loans and Advances are not less than the values stated if realized in the ordinary course of business. The provision for all known liabilities are adequate and not in excess of the amount reasonably necessary.

NOTE 24: The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures if any, relating to amounts unpaid as at the yearend together with the interest paid/payable as required under the said Act have not been given.

NOTE 25: Disclosures under accounting standards:

a. Segment Reporting (AS-17):

The Company operates in the business of Trading and investments .It operates only in Domestic Market, hence there is no business / geographical segments to be reported as required under Accounting Standard (AS-17) “Segment Reporting” issued by the Institute of Chartered Accountants of India.

b. Related Party Disclosure (AS-18):

Related Party Disclosure under AS-18 issued by the Institute of Chartered Accounts of India. The Management has informed that all the transactions entered during the previous year with various parties do not fall within the purview of the Accounting standard 18 "Related Party Transaction” issued by the Institute of Chartered Accountants of India. The related parties of the company at March 31, 2016 are as follows:

i. Directors & Key management personnel :

- VipulDangi - Managing Director

- VarshaDangi - Director

- ManojShashikant Dave -Director ( From 28/12/2015)

- MaheshkumarMannalal Sharma-Director( From 26/02/2016)

- AvinashMadhavKhire - Director ( up to 28/12/2015)

- PramodkumarBajranglalHarlalka - Director ( up to 26/02/2016)

NOTE 26: The balances of Current assets, Current liabilities including Sundry Debtors, Sundry Creditors, Loans & advances & Unsecured Loan are subject to confirmation.

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Mar 31, 2015

A. Corporate Information:

Dhanleela Investments & Trading Company Limited is public limited listed company. The Company is engaged in the business of Trading of textile and investments.

b. Basis of preparation of Financial Statements:

i. The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 2013. Accounting Standards (AS) referred to in the notes are as issued by the Institute of Chartered Accountants of India.

ii. Accounting policies not specifically referred to otherwise are consistent with the generally accepted accounting principles followed by the Company.

iii. The preparation of financial statements requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known / materialized.

c. Investments:

Investments are long term in the nature and stated at cost.

d. Revenue Recognition:

For dealing in Shares & Securities in cash market segment the same are accounted for on the basis of bill dates received from the brokers.

e. Inventories:

Inventories of securities are stated at cost & inventories of fabric are stated at cost or net realisable value whichever is lower.

f. Taxes on Income:

Provision for tax is made on the basis of the estimated taxable income as per the provisions of the Income Tax Act, 1961 and the relevant Finance Act, after taking into consideration judicial pronouncements and opinions of the Company's tax advisors.

g. Earnings per Share:

Basic earnings per share is computed by dividing the profit/(loss) after tax (including the post-tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share is computed by dividing the profit/(loss) after tax (including the post-tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of shares which could have been issued on the conversion of all dilutive potential equity shares.

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Mar 31, 2014

1. Corporate Information:

Dhanleela Investments & Trading Company Limited is public limited listed company.The Company operates in the business of Trading.

2. Basis of Accounting & Preparation of Financial Statements:

Preparation and presentation of financial statements of the company is disclosed as per the revised Schedule VI notified under the Companies Act, 1956 However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the Company. Accounting policies not stated explicitly otherwise are consistent with Generally Accepted Accounting Principles (GAAP).

The Company generally follows mercantile system of accounting and recognize significant items of income and expenditure on accrual basis as a going concern.

3. Use of Estimates:

The preparation of the financial statements in conformity with Indian GAAP requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities on the date of the financial statements and reported amounts of revenues and expenses for the year. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

4. Investments:

Investments are long term in the nature and stated at cost.

5. Revenue Recognition:

For dealing in Shares & Securities in cash market segment the same are accounted for on the basis of bill dates received from the brokers.

6. Inventories:

Inventories of securities are stated at cost & inventories of fabric are stated at cost or net realisable value whichever is lower.

7. Taxes on Income:

Provision for tax is made on the basis of the estimated taxable income as per the provisions of the Income Tax Act, 1961 and the relevant Finance Act, after taking into consideration judicial pronouncements and opinions of the Company''s tax advisors.

8. Earnings per Share:

Basic earnings per share is computed by dividing the profit/(loss) after tax (including the post-tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share is computed by dividing the profit/(loss) after tax (including the post-tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of shares which could have been issued on the conversion of all dilutive potential equity shares.

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Mar 31, 2013

1. Corporate Information:

Dhanleela Investments & Trading Company Limited is public limited listed company.

The Company is in the business of Trading.

2. Basis of Accounting & Preparation of Financial Statements:

Preparation and presentation of financial statements of the company is disclosed as per the revised Schedule VI notified under the Companies Act, 1956 However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the Company. Accounting policies not stated explicitly otherwise are consistent with Generally Accepted Accounting Principles (GAAP).

The Company generally follows mercantile system of accounting and recognize significant items of income and expenditure on accrual basis as a going concern.

3. Use of Estimates:

The preparation of the financial statements in conformity with Indian GAAP requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities on the date of the financial statements and reported amounts of revenues and expenses for the year. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

4. Investments:

Investments are long term in the nature and stated at cost.

5. Revenue Recognition:

For dealing in Shares & Securities in cash market segment the same are accounted for on the basis of bill dates received from the brokers.

6. Employee Benefits:

Short Term Employee Benefits:

All employee benefits payable wholly within twelve months of rendering the services are classified as short term employee benefits. Benefits such as salaries, wages, performance incentives etc. are recognized at actual amounts due in the period in which the employee renders the related service.

7. Inventories:

Inventories are stated at cost or net realisable value whichever is lower.

8. Taxes on Income:

Provision for tax is made on the basis of the estimated taxable income as per the provisions of the Income Tax Act, 1961 and the relevant Finance Act, after taking into consideration judicial pronouncements and opinions of the Company''s tax advisors.

9. Earnings per Share:

Basic earnings per share is computed by dividing the profit /(loss) after tax (including the post-tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share is computed by dividing the profit/(loss) after tax (including the post-tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of shares which could have been issued on the conversion of all dilutive potential equity shares.

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Mar 31, 2012

A) Basis of Accounting :

The financial statements have been prepared under historical cost convention in conformity in all material aspects with the generally accepted accounting principles in India and the requirements of the Companies Act, 1956.

b) Revenue Recognition :

The Accounts are prepared on accrual basis.

c) Fixed Assets :

Fixed assets are stated at cost of acquisition or construction, less accumulated depreciation.

d) Depreciation / Amortisation :

I. Tangible Assets :

Depreciation has been provided on written down value basis at the rates prescribed in Schedule XTV to the Companies Act, 1956.

II. Intangible Assets :

Intangible Assets are amortised over their economic useful lives as estimated by the management as given hereunder pro-rata from the month when the asset is available for use.

Computer Software - Three (3) years.

e) Investments :

Investments are capitalized at cost and are classified as Non-current. Adjustment to the carrying amount of quoted investments is made in the accounts (only if, in the opinion of the management such decline is other than temporary) in the line with the Mandatory Accounting Standard for Accounting of Investments (AS-13) issued by the Institute of Chartered Accountants of India and is recognised through the Adjustment to the carrying amount of Investment Account.

f) Employee Benefits :

1) Short Term Employee Benefits :

All employee benefits payable wholly within twelve months of rendering the services are classified as short term employee benefits. Benefits such as salaries, performance incentives, etc. are recognized at actual amounts due in the period in which the employee renders the related service.

2) Post-employment Plans :

The numbers of employees are less than fifty, hence for the purpose of AS-15 the Company is classified as Group B Company accordingly:

a) Defined Contribution Plan :

Payments made to Defined Contribution Plans and other similar Schemes are charged to expense as and when paid.

b) Defined Benefit Plans :

In terms of arrangement and understanding between the management and the employees, no benefits accrue to the employee for any past service rendered by them. The Company does not incur any obligation towards such past service rendered on year to year basis. However if any sum is determined to be payable to any employee the same shall be calculated on rational basis and recorded in the year of payment.

3) Leave Encashment :

In terms of arrangement and understanding between the management and the employees not entitled to accumulated leave and claim encashment thereof on Superannuation or Resignation. However if any sum is determined to be payable to any employee the same shall be calculated on rational basis and recorded in the year of payment.

g) Inventories :

Stock-in-trade of unquoted equity shares is valued at cost or break up value whichever is lower.

h) Sundry Debtors :

Specific debts identified as irrecoverable are written off.

i) Taxation :

1) Provision for tax is made on the basis of the estimated taxable income as per the provisions of the Income Tax Act, 1961 and the relevant Finance Act, after taking into consideration judicial pronouncements and opinions of the Company's tax advisors.

2) Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

j) Impairment of Assets :

Where carrying amount of fixed assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cash flow.

k) Provisions and Contingencies :

A provision is recognized when there is 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. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

A disclosure for a contingent liability is made when there is a possible or present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent Assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2009

A) Basis of Accounting :

The financial statements have been prepared under historical cost convention in conformity in all material aspects with the generally accepted accounting principles in India and the requirements of the Companies Act, 1956.

b) Revenue Recognition :

The Accounts are prepared on accrual basis.

c) Fixed Assets :

Fixed assets are stated at cost of acquisition or construction, less accumulated depreciation.

d) Depreciation / Amortization :

I. Tangible Assets :

Depreciation has been provided on written down value basis at the rates prescribed in Schedule XIV to the Companies Act, 1956.

II. Intangible Assets :

Intangible Assets are amortised over their economic useful lives as estimated by the management as given hereunder pro-rata from the month when the asset is available for use.

Computer Software – Three (3) years.

e) Investments :

Investments are capitalized at cost and are classified into two categories viz Current or Long Term. Provision for diminution in the value of quoted investments is made in the accounts (only if, in the opinion of the management such decline is other than temporary) in the line with the Mandatory Accounting Standard for Accounting of Investments (AS-13) issued by the Institute of Chartered Accountants of India and is recognised through the provision for diminution in value of Quoted Investment Account.

f) Employee Benefits :

1) Short Term Employee Benefits :

All employee benefits payable wholly within twelve months of rendering the services are classified as short term employee benefits. Benefits such as salaries, wages, performance incentives etc. are recognized at actual amounts due in the period in which the employee renders the related service.

2) Post-employment Plans :

The numbers of employees are less than fifty, hence for the purpose of AS-15 the Company is classified as Group B Company accordingly :

a) Defined Contribution Plan :

Payments made to Defined Contribution Plans and other similar Schemes are charged to expense as and when paid.

b) Defined Benefit Plans :

In terms of arrangement and understanding between the management and the employees, no benefits accrue to the employee for any past service rendered by them. The Company does not incur any obligation towards such past service rendered on year to year basis. However if any sum is determined to be payable to any employee the same shall be calculated on rational basis and recorded in the year of payment.

3) Leave Encashment :

In terms of arrangement and understanding between the management and the employees not entitled to accumulated leave and claim encashment thereof on Superannuation or Resignation. However if any sum is determined to be payable to any employee the same shall be calculated on rational basis and recorded in the year of payment.

g) Inventories :

Stock-in-trade of unquoted equity shares is valued at cost or break up value whichever is lower.

h) Sundry Debtors :

Specific debts identified as irrecoverable are written off.

i) Taxation :

1) Provision for tax is made on the basis of the estimated taxable income as per the provisions of the Income Tax Act, 1961 and the relevant Finance Act, after taking into consideration judicial pronouncements and opinions of the Company's tax advisors.

2) Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

3) Tax on Fringe Benefits is measured at the specified rates on the value of Fringe Benefits in accordance with the provisions of the Section 115WC of the Income Tax Act, 1961. Accounting for Fringe Benefit Tax is done as per the Guidance note issued by the Institute of Chartered Accountants of India.

j) Impairment of Assets :

Where carrying amount of fixed assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cash flow.

k) Provisions and Contingencies :

A provision is recognized when there is 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. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

A disclosure for a contingent liability is made when there is a possible or present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent Assets are neither recognized nor disclosed in the financial statements.