Accounting Policies of Dhoot Industrial Finance Ltd. Company

Mar 31, 2015

1. Basis of Accounting:- The financial statements are prepared on the basis of going concern, under historical cost convention and on accrual basis of accounting and in compliance with the Accounting Standards referred to in section 133 of the Companies Act, 2013 ("the Act"), read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Act. Claims against the company are recognized when finally accepted by the company.

2. Use of Estimates:

The preparation of the financial statements, in conformity with generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities at the date of the financial statements. Actual results could differ from those estimates. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Any revision to the accounting estimates is recognized prospectively.

3 Classification of Assets and Liabilities:-

Assets and Liabilities are classified as Current / Non-current considering, inter alia, expected realization / settlement thereof in the Company's normal Operating Cycle (of 5 months) or a period of 12 months from Balance Sheet date.

4 Fixed Assets:- (a) Fixed Assets are carried at cost of acquisition less accumulated depreciation.

(b) Cost is inclusive of duties, taxes, erection / commissioning expenses and incidental expenses and Sales Tax set off wherever applicable.

5 Method of Depreciation:- Depreciation has been provided, considering the lives as prescribed by Schedule II of the Act, on Written Down Value Method in respect of Tangible Assets.

Assets costing less than Rs, 5000/- each, acquired during the financial year, are being fully charged off to the Statement of Profit and Loss.

6 Valuation of Investments:- Long Term Investments are carried at cost. The cost of investments includes brokerage, Security Transaction Tax and stamp duty. Provision for diminution, if any, is made to recognize a decline, other than temporary, in the value of investments. In case of sale of investments or part thereof the purchase cost is allocated as per weighted average method in accordance with Accounting Standard 13-Accounting for Investments.

7 Valuation of Stock in Trade:- Stock in trade (Quoted Shares) is valued at cost or market price whichever is lower. In case of sale of Stock in Trade (Quoted Shares) or part thereof the purchase cost is allocated as per weighted average method in accordance with Accounting Standard 13- Accounting for Investments.

8 Income Recognition:- (a) Sale of trading goods is recognized on the date of invoice exclusive of sales tax/VAT and trade discount.

(b) Profit / Loss from trading in Shares are accounted on the date of contract note received from the Broker.

9 Provision for Current Tax & Deferred Tax:-

(a) Current Tax:

Provision for Current Tax is made on the basis of taxable income for the current year in accordance with the provisions of the Income Tax Act, 1961.

(b) Deferred Tax:

Income tax expense is accrued in accordance with Accounting Standard 22 – Accounting for Taxes on Income, which includes current and deferred taxes. Deferred Income Taxes reflect the impact of timing differences between taxable income & accounting income for the year and reversal/restatement of timing differences of earlier years.

Deferred tax assets and liabilities are measured using the tax rate and tax laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax assets are recognized for all reversible timing differences, carry forward of unused tax assets and unused tax losses subject to consideration of prudence. Carrying amount of deferred tax assets is reviewed at each balance sheet date on the same consideration.

10. Provisions, Contingent Liabilities and Contingent Assets:- (a) The Company recognizes as Provisions, the liabilities being present obligations arising out of past events, the settlement of which is expected to result in an outflow of resources and which can be measured only by using a substantial degree of estimation.

(b) Contingent Liability is disclosed, unless the possibility of an outflow of resources is remote.

(c) Contingent Assets are neither recognized nor disclosed.

11. Foreign Currency Transactions:-

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transactions. Foreign currency denominated assets and liability at the balance sheet date is translated at the exchange rate prevailing on the date of the Balance Sheet.

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Mar 31, 2014

1. Basis of Accounting-

The Financial Statements are prepared under the historical cost convention and are in accordance with applicable mandatory Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

2 Classification of Assets and Liabilities:-

Assets and Liabilities are classified as Current / Non-current considering, inter alia, expected realization / settlement thereof in the Company''s normal Operating Cycle (of 5 months) or a period of 12 months from Balance Sheet date.

3 Fixed Assets-

a) Fixed Assets are carried at cost of acquisition except office premises revalued on 14th March, 1994 which is stated at a value determined by the valuers, less accumulated depreciation.

b) Cost is inclusive of duties, taxes, erection / commissioning expenses and incidental expenses and Sales Tax set off wherever applicable.

4 Method of Depreciation-

Depreciation on assets has been provided on Written Down Value Method in accordance with rates specified in notification no. GSR 756(E) dated 16th December 1993 and Circular no. 14/ 93 (No. 1/12/92-CL V) dated 20th December, 1993 issued by the Ministry of Law, Justice and Company Affair, Department of Company Affairs and in the manner specified in Schedule XIV of the Companies Act, 1956 read with the said Notification and Circular.

5 Valuation of Investments-

Long Term Investments are carried at cost. The cost of investments includes brokerage, Security Transaction Tax and stamp duty. Provision for diminution, if any, is made to recognize a decline, other than temporary, in the value of investments.

6 Valuation of Stock in Trade-

Stock in trade (Un-quoted shares) is valued at cost or net realisable value whichever is lower. Stock in trade (Quoted Shares) is valued at cost or market price whichever is lower.

7 Income Recognition-

a) Sale of trading goods is recognized on the date of invoice exclusive of sales tax/VAT and trade discount.

b) Profit / Loss from trading in Shares are accounted on the date of contract note received from the Broker.

8 Provision for Current & Deferred Tax-

a) Provision for Current Tax is made on the estimated taxable income, at the rate applicable to the relevant assessment year.

b) In accordance with Accounting Standard 22 "Accounting for Taxes on Income" issued by the ICAI, the deferred tax for timing differences is accounted for, using the tax rates and laws that have been enacted or substantially enacted by the balance sheet date.

c) Deferred tax assets arising from timing differences are recognized only on the consideration of prudence.

9. Provisions, Contingent Liabilities and Contingent Assets-

a) The Company recognizes as Provisions, the liabilities being present obligations arising out of past events, the settlement of which is expected to result in an outflow of resources and which can be measured only by using a substantial degree of estimation.

b) Contingent Liabilities are disclosed by way of a note to the financial statements after careful evaluation by the management of the facts and legal aspects of the matter involved.

c) Contingent Assets are neither recognized nor disclosed.

10. Impairment of Assets:-

Management periodically assesses using external and internal sources whether there is an indication that an asset may be impaired. Impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the assets and its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the higher of the assets net sales or present value as determined above.

11. Foreign Currency Transactions:-

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transactions. Foreign currency denominated assets and liability at the balance sheet date is translated at the exchange rate prevailing on the date of the Balance Sheet.

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Mar 31, 2013

1. Basis of Accounting:-

The Financial Statements are prepared under the historical cost convention and are in accordance with applicable mandatory Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

2. Classification of Assets and Liabilities:-

Assets and Liabilities are classified as Current / Non-current considering, inter alia, expected realization / settlement thereof in the Company''s normal Operating Cycle (of 5 months) or a period of 12 months from Balance Sheet date.

3. '' Fixed Assets:-

a) Fixed Assets are carried at cost of acquisition except office premises revalued on 14th March, 1994 which is stated at a value determined by the valuers, less accumulated depreciation.

b) Cost is inclusive of duties, taxes, erection / commissioning expenses and incidental expenses and Sales Tax set off wherever applicable.

4. Method of Depreciation:-

Depreciation on assets has been provided on Written Down Value Method in accordance with rates specified in notification no. GSR 756(E) dated 16* December 1993 and Circular no. 14/93 (No. 1/12/92-CL V) dated 20*'' December, 1993 issued by the Ministry of Law, Justice and Company Affair, Department of Company Affairs and in the manner specified in Schedule XIV of the Companies Act, 1956 read with the said Notification and Circular.

5. Valuation of Investments:-

Long Term Investments are carried at cost The cost of investments includes brokerage, Security Transaction Tax and stamp duty. Provision for diminution, if any, is made to recognize a decline, other than temporary, in the value of investments.

6. Valuation of Stock in Trade:-

Stock in trade (Un-quoted shares) is valued at cost or net realizable value whichever is lower. Stock in trade (Quoted Shares) is valued at cost or market price whichever is lower.

7. Income Recognition:-

a) Sale of trading goods is recognized on the date of invoice exclusive of sales tax/VAT and trade discount

b) Profit / Loss from trading in Shares are accounted on the date of contract note received from the Broker.

8. Provision for Current & Deferred Tax:-

a) Provision for Current Tax is made on the estimated taxable income, at the rate applicable to the relevant assessment year.

b) In accordance with Accounting Standard 22 "Accounting for Taxes on Income'' issued by the ICAI, the deferred tax for timing differences is accounted for, using the tax rates and laws that have been enacted or substantially enacted by the balance sheet date.

c) Deferred tax assets arising from timing differences are recognized only on the consideration of prudence. ,

9. Provisions, Contingent Liabilities and Contingent Assets:-

a) The Company recognizes as Provisions, the liabilities being present obligations arising out of past events, the settlement of which is expected to result in an outflow of resources and which can be measured only by using a substantial degree of estimation.

b) Contingent Liabilities are disclosed by way of a note to the financial statements after careful evaluation by the management of the facts and legal aspects of the matter involved.

c) Contingent Assets are neither recognized nor disclosed.

10. Impairment of Assets:-

Management periodically assesses using external and internal sources whether there is an indication that an asset may be impaired. Impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the assets and its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the higher of the assets net sales or present value as determined above.

11. Foreign Currency Transactions:-

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transactions. Foreign currency denominated assets and liability at the balance sheet date is translated at the exchange rate prevailing on the date of the Balance Sheet

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Mar 31, 2012

1. Basis of Accounting-

The Financial Statements are prepared under the historical cost convention and are in accordance with applicable mandatory Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

2. Classification of Assets and Liabilities:-

Assets and Liabilities are classified as Current / Non-current considering, inter alia, expected realization / settlement thereof in the Company's normal Operating Cycle (of 5 months) or a period of 12 months from Balance Sheet date.

3. Fixed Assets:-

a) Fixed Assets are carried at cost of acquisition except office premises revalued on 14th March, 1994 which is stated at a value determined by the valuers, less accumulated depreciation.

b) Cost is inclusive of duties, taxes, erection / commissioning expenses and incidental expenses and Sales Tax set off wherever applicable.

4. Method of Depreciation:-

Depreciation on assets has been provided on Written Down Value Method in accordance with rates specified in notification no. GSR 756(E) dated 16th December 1993 and Circular no. 14/93 (No. 1/12/92-CL V) dated 20th December, 1993 issued by the Ministry of Law, Justice and Company Affair, Department of Company Affairs and in the manner specified in Schedule XIV of the Companies Act, 1956 read with the said Notification and Circular.

5. Valuation of Investments:-

Long Term Investments are carried at cost. The cost of investments includes brokerage, Security Transaction Tax and stamp duty. Provision for diminution, if any, is made to recognize a decline, other than temporary, in the value of investments.

6. Valuation of Stock in Trade:-

Stock in trade (Un-quoted shares) is valued at cost or net realisable value whichever is lower. Stock in trade (Quoted Shares) is valued at cost or market price whichever is lower.

7. Income Recognition:-

a) Sale of trading goods is recognized on the date of invoice exclusive of sales tax/VAT and trade discount.

b) Profit / Loss from trading in Shares are accounted on the date of contract note received from the Broker.

8. Provision for Current & Deferred Tax-

a) Provision for Current Tax is made on the estimated taxable income, at the rate applicable to the relevant assessment year.

b) In accordance with Accounting Standard 22 “Accounting for Taxes on Income” issued by the ICAI, the deferred tax for timing differences is accounted for, using the tax rates and laws that have been enacted or substantially enacted by the balance sheet date.

c) Deferred tax assets arising from timing differences are recognized only on the consideration of prudence.

9. Provisions, Contingent Liabilities and Contingent Assets-

a) The Company recognizes as Provisions, the liabilities being present obligations arising out of past events, the settlement of which is expected to result in an outflow of resources and which can be measured only by using a substantial degree of estimation.

b) Contingent Liabilities are disclosed by way of a note to the financial statements after careful evaluation by the management of the facts and legal aspects of the matter involved.

c) Contingent Assets are neither recognized nor disclosed.

10. Impairment of Assets:-

Management periodically assesses using external and internal sources whether there is an indication that an asset may be impaired. Impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the assets and its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the higher of the assets net sales or present value as determined above.

11. Foreign Currency Transactions:-

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transactions. Foreign currency denominated assets and liability at the balance sheet date is translated at the exchange rate prevailing on the date of the Balance Sheet.

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Mar 31, 2011

1. Basis of Accounting:-

The Financial Statements are prepared under the historical cost convention and are in accordance with applicable mandatory Accounting Standards notified by the companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

2. Fixed Assets:-

a) Fixed Assets are carried at cost of acquisition except office premises revalued on 14th March, 1994 which is stated at a value determined by the valuers, less accumulated depreciation.

b) Cost is inclusive of duties, taxes, erection / commissioning expenses and incidental expenses and Sales Tax set off wherever applicable.

3. Method of Depreciation:-

Depreciation on assets has been provided on Written Down Value Method in accordance with rates specified in notification no. GSR 756(E) dated 16th December 1993 and Circular no. 14/93 (No. 1/12/92-CL V) dated 20th December, 1993 issued by the Ministry of Law, Justice and Company Affair, Department of Company Affairs and in the manner specified in Schedule XIV of the Companies Act, 1956 read with the said Notification and Circular.

4. Valuation of Investments:-

Long Term Investments are valued on FIFO basis. The cost of investments includes bro- kerage, Security Transaction Tax and stamp duty. A provision for diminution, if any, is made to recognize a decline, other than temporary, in the value of investments.

5. Valuation of Stock in Trade:-

Stock in trade (Un-quoted shares) is valued at cost or Net Realisable Value whichever is lower. In case of Stock in trade (Quoted Shares) is valued at cost or market price whichever is lower.

6. Income Recognition:-

a) Sale of trading goods is recognized on the date of invoice exclusive of sales tax and trade discount.

b) Profit / Loss from trading in Shares are accounted on the date of contract note received from the Broker.

7. Provision for Current & Deferred Tax:-

a) Provision for Current Tax is made on the estimated taxable income, at the rate applicable to the relevant assessment year.

b) In accordance with Accounting Standard 22 "Accounting for Taxes on Income" issued by the ICAI, the deferred tax for timing differences is accounted for, using the tax rates and laws that have been enacted or substantially enacted by the balance sheet date.

c) Deferred tax assets arising from timing differences are recognized only on the consid- eration of prudence.

8. Provisions, Contingent Liabilities and Contingent Assets:-

a) The Company recognizes as Provisions, the liabilities being present obligations arising out of past events, the settlement of which is expected to result in an outflow of resources and which can be measured only by using a substantial degree of estimation.

b) Contingent Liabilities are disclosed by way of a note to the financial statements after careful evaluation by the management of the facts and legal aspects of the matter involved.

c) Contingent Assets are neither recognized nor disclosed.

9. Impairment of Assets:-

Management periodically assesses using external and internal sources whether there is an indication that an asset may be impaired. Impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the assets and its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the higher of the assets net sales or present value as determined above.

10. Foreign Currency Transactions:-

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transactions. Foreign currency denominated assets and liability at the balance sheet date is translated at the exchange rate prevailing on the date of the Balance Sheet.

11. Earnings per share:-

In determining the earnings per share, the Company considers the net profit after tax and post tax effect of any extra-ordinary/exceptional item is shown separately. The number of shares considered in computing basic earnings per share is the weighted average number of shares outstanding during the year.

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Mar 31, 2010

1. Basis of Accounting:-

The Financial Statements are prepared under the historical cost convention and are in accordance with applicable mandatory Accounting Standards notified by the companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

2. Fixed Assets:-

a) Fixed Assets are carried at cost of acquisition except office premises revalued on 14th March, 1994 which is stated at a value determined by the valuers, less accumulated depreciation.

b) Cost is inclusive of duties, taxes, erection / commissioning expenses and incidental expenses and Sales Tax set off wherever applicable.

3. Method of Depreciation :-

Depreciation on assets has been provided on written down value method in accordance with rates specified in notification no. GSR 756(E) dated 16th December 1993 and Circular no. 14/93 (No. 1 /12/92-CL V) dated 20th December, 1993 issued by the Ministry of Law, Justice and Company Affair, Department of Company Affairs and in the manner specified in Schedule XIV of the Companies Act, 1956 read with the said Notification and Circular.

4. Valuation of Investments:-

Long Term Investments are valued on FIFO basis. The cost of investments includes brokerage, Security Transaction Tax but does not include stamp duty, which is charged to revenue. A provision for diminution, if any, is made to recognize a decline, other than temporary, in the value of investments.

5. Valuation of Stock in Trade: -

Stock in trade (Un-quoted shares) in absence of market price is carried at cost. In case of Stock in trade (Quoted Shares) is valued at cost or market price whichever is lower.

6. Income Recognition:-

a) Sales of trading goods is accounted for inclusive of sales tax, net of trade discount and recognized on the date of invoice.

b) Profit / Loss from Trading in Shares are accounted on the date of contract note received from the Broker.

7. Provision for Current & Deferred Tax:-

a) Provision for Current Tax is made on the estimated taxable income, at the rate applicable to the relevant assessment year.

b) In accordance with Accounting Standard 22 "Accounting for Taxes on Income" issued

by the ICAI, the deferred tax for timing differences is accounted for, using the tax rates and laws that have been enacted or substantially enacted by the balance sheet date.

c) Deferred tax assets arising from timing differences are recognized only on the consideration of prudence.

8. Provisions, Contingent Liabilities and Contingent Assets:-

a) The Company recognizes as Provisions, the liabilities being present obligations arising out of past events, the settlement of which is expected to result in an outflow of resources and which can be measured only by using a substantial degree of estimation.

b) Contingent Liabilities are disclosed by way of a note to the financial statements after careful evaluation by the management of the facts and legal aspects of the matter involved.

c) Contingent Assets are neither recognized nor disclosed.

9. Impairment of Assets:-

Management periodically assesses using external and internal sources whether there is an indication that an asset may be impaired. Impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the assets and its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the higher of the assets net sales or present value as determined above.

10. Foreign Currency Transactions:-

Transactions in Foreign currency are recorded at the exchange rate prevailing on the date of the transactions. Foreign currency denominated assets and liability at the balance sheet date is translated at the exchange rate prevailing on the date of the balance sheet.

11. Earnings per share:-

In determining the earnings per share, the Company considers the net profit after tax and post tax effect of any extra-ordinary/exceptional item is shown separately. The number of shares considered in computing basic earnings per share is the weighted average number of shares outstanding during the year.