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Notes to Accounts of Dolat Algotech Ltd.

Mar 31, 2023

The company is engaged in the business of trading in shares and securities, for the which level I valuation technique is useful for fair value measurement. The company does not require the hierarchy of level II and level III valuation technique for measurement of financial assets and liabilities.

C. Financial Risk management- Objectives and policies

The Company’s financial liabilities comprise mainly of borrowings, payable to clearing house and other payables. The Company’s financial assets comprise mainly of investments, bank deposits with more than 12 months of maturities, cash and cash equivalents, other balances with bank, balance with clearing house and other receivables.

The Company is exposed to Credit risk and Liquidity risk. The board of directors oversees the management of these financial risks.

a) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Any adverse effect on the interest rate on bank deposit will fluctuate the future cash flow on bank deposits.

The company does have fixed interest bearing borrowings from the related parties during the year as and when required for the business purpose. The company is not exposed to significant interest rate risk at the respective reporting dates.

b) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in foreign exchange rates. The company is not exposed to changes in any foreign currency as the company operates mainly in India.

c) Other Price Risk

Other price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. As the company is into the hedging business of trading in equity futures and options, the other price risk arising from financial assets such as trading in equity instruments and underlying commodities is minimal.

d) Credit Risk

Credit risk refers to risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as investment in mutual funds, bank deposits with more than 12 months of maturities, other balances with banks, and other receivables.

The company is member of NSE and is doing trading in equity futures and options on its own account The settlement of trade is done in a day or two, the credit risk arising from the trade receivable is minimal.

Credit risk arising from investment in mutual funds, derivative financial instruments, bank deposits and other balances with banks is limited and there is no collateral held against these because the counterparties are banks and recognised financial institutions with high credit ratings assigned by the international credit rating agencies.

e) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value.

The Company''s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents.

D. Capital Management

For the purpose of the Company''s capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value. As at 31st March, 2023, the Company has only one class of equity shares and has no long term debt. Consequent to such capital structure, there are no externally imposed capital requirements. In order to maintain or achieve an optimal capital structure, the Company allocates its capital for the re-investment into business based on its long term financial plans.

a. During the year current liabilities has reduced disproportionately than the current assets leading to increase in current ratio.

b. Reduction in short term borrowing by around 20% coupled with increase in total equity by around 21% has led to decrease in debt equity ratio.

c. Reduction in profit after tax by around 31% during the year has led to fall in return on equity.

d. Reduction in revenue from operation by around 34% during the year has led to fall in net capital turnover ratio.

e. Reduction in earnings before interest and tax by around 32% during the year has led to fall in return on capital employed.

f. The return on mutual funds are functions of market dynamics.

g. Since the company is member of National Stock Exchange and doing trades in shares and securities in its own account, inventory turnover ratio, trade receivable turnover ratio and trade payables turnover ratio is not given.

28. Ageing of trade receivable and trade payable

Trade receivable and trade payable ageing schedule as required as per schedule III to the Companies Act 2013 as amended is not given as the company is the member of National Stock Exchange of India Ltd and trades in shares and securities in its own accounts and have no retails clients. The amount receivable and/ or payable to clearing house on account of any trade is settled under T 1 and T 2 settlement basis and shown under other current financial assets or other current financial liabilities as the case may be.

29. Contingent liabilities

in Million)

Sr No

Particulars

As at 31.03.2023

As at 31.03.2022

1

Guarantees issued by the Company''s bankers on behalf of the Company to National Stock Exchange of India Ltd. for additional base capital.

9,848.20

8,850.00

30. Accounting policy related to employee''s benefits of gratuity and other benefits is accounted in accordance with Ind AS 19-“Employees Benefit”. 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.

31. The non-current equity investment being unquoted has been valued at cost only. Had the investment been valued at fair value, the amount of gain or loss would not have been material.

33. Segment Reporting:

The company is engaged primarily in the business of trading in shares and securities and there are no separate reportable segments as per Indian Accounting Standards (Ind AS) - 108 dealing with segment reporting.

36. 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 Ind AS - 12 “Taxes on Income” issued by Ministry of Corporate Affairs, net deferred tax liabilities on account of timing difference for current year of ''5.42 million is charged to the Statement of Profit & Loss and net deferred tax assets of ''0.08 million is credited to other comprehensive income.

37. As at March 31, 2023, the company has reviewed the future earnings of all the cash generating units in accordance with the Ind AS 36 “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.

38. 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.

39. 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, 2023.

40. Disclosures of transactions with the struck off companies

The Company did not have any transactions with companies struck off under Section 248 of the Companies Act,2013 or Section 560 of Companies Act, 1956 during the financial year.

41. No transactions to report against the following disclosure requirements as notified by MCA pursuant to amended Schedule III:

(a) Crypto Currency or Virtual Currency

(b) Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder

(c) Registration of charges or satisfaction with Registrar of Companies

(d) Relating to borrowed funds:

i. Wilful defaulter

ii. Utilisation of borrowed funds & share premium

iii. Borrowings obtained on the basis of security of current assets

iv. Discrepancy in utilisation of borrowings

(e) Borrowings obtained on the basis of security of current assets.

(f) Foreign Currency Exposure

40. Previous year’s figures have been regrouped wherever necessary to confirm with this year''s classification.


Mar 31, 2021

valuation technique is useful for fair value measurement. The company does not require the hierarchy of level II and level III valuation technique for measurement of financial assets and liabilities.

C. Financial Risk management- Objectives and policies

The Company’s financial liabilities comprise mainly of trade payables, borrowings, payable to clearing house and other payables. The Company’s financial assets comprise mainly of investments, bank deposits with more than 12 months of maturities, cash and cash equivalents, other balances with bank, balance with clearing house and other receivables.

The Company is exposed to Credit risk and Liquidity risk. The board of directors oversees the management of these financial risks.

a) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Any adverse effect on the interest rate on bank deposit will fluctuate the future cash flow on bank deposits.

The company does have fixed interest bearing borrowings from the related parties during the year as and when required for the business purpose. The company is not exposed to significant interest rate risk at the respective reporting dates.

b) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in foreign exchange rates. The company is not exposed to changes in any foreign currency as the company operates mainly in India.

c) Other Price Risk

Other price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. As the company is into the hedging business of trading in equity futures and options, the other price risk arising from financial assets such as trading in equity instruments and underlying commodities is minimal.

d) Credit Risk

Credit risk refers to risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, investment in mutual funds, bank deposits with more than 12 months of maturities, other balances with banks, and other receivables.

The company is doing trading in equity futures and options through brokers registered with NSE and BSE The settlement of trade receivable is done in a day or two, the credit risk arising from the trade receivable is minimal.

Credit risk arising from investment in mutual funds, derivative financial instruments, bank deposits and other balances with banks is limited and there is no collateral held against these because the counterparties are banks and recognised financial institutions with high credit ratings assigned by the international credit rating agencies.

e) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value.

The Company''s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents.

D. Capital Management

For the purpose of the Company’s capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value. As at 31st March, 2021, the Company has only one class of equity shares and has no debt. Consequent to such capital structure, there are no externally imposed capital requirements. In order to maintain or achieve an optimal capital structure, the Company allocates its capital for the re-investment into business based on its long term financial plans.

31. Corporate Social Responsibility (CSR)

a. CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof by the Company during the year is ''1,39,84,800/-.

b. Expenditure related to Corporate Social Responsibility during the year is ''1,35,00,000/- which is paid to a trust carrying on education and charitable activities and the amount of unspent CSR is ''4,84,800/-.

32. Segment Reporting:

The company is engaged primarily in the business of trading in shares and securities and there are no separate reportable segments as per Indian Accounting Standards (Ind AS) - 108 dealing with segment reporting.

35. 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 Ind AS - 12 “Taxes on Income” issued by Ministry of Corporate Affairs, net deferred tax charge on account of timing difference for current year of ''2,76,72,834/- is charged to the Statement of Profit & Loss and net deferred tax liabilities of ''2,951/- is charged to other comprehensive income.

c) The major components of deferred tax (liabilities)/assets arising on account of timing difference are as follow:

36. As at March 31, 2021, the company has reviewed the future earnings of all the cash generating units in accordance with the Ind AS 36 “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.

37. 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.

38. 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, 2021.

39. Previous year’s figures have been regrouped wherever necessary to confirm with this year''s classification.


Mar 31, 2018

1. First time adoption of Ind AS

For all periods up to and including the year ended 31st March, 2017, the Company had prepared its financial statements in accordance with the accounting standards notified under Section 133 of the Companies Act, 2013, read together with Rule 7 of the Companies (Accounts) Rules, 2014 (''Previous GAAP’). This note explains the principal adjustments made by the Company in restating its financial statements prepared under Previous GAAP for the following-

a. Balance Sheet as at 1st April, 2016 (Transition date);

b. Balance Sheet as at 31st March, 2017;

c. Statement of Profit and Loss for the year ended 31st March, 2017; and

d. Statement of Cash flows for the year ended 31st March, 2017.

Exemption Availed

Ind AS 101- First-time adoption of Indian Accounting Standards, allows first-time adopters, exemptions

from the retrospective application and exemption from application of certain requirements of other Ind AS.

The Company has availed the following exemptions as per Ind AS 101:

1) The Company has elected to consider the carrying value of all its items of property, plant and equipment recognized in the financial statements prepared under Previous GAAP and use the same as deemed cost in the opening Ind AS Balance Sheet.

2) The carrying amounts of the Company’s investments in companies under the same management as per the financial statements of the Company prepared under Previous GAAP, are considered as deemed cost for measuring such investments in the opening Ind AS Balance Sheet.

Footnotes

1) Non-Current Investments

In the financial statements prepared under Previous GAAP, Non-current Investments of the Company were measured at cost less provision for diminution (other than temporary). Under Ind As, the company has recognized the unquoted investments in equity shares at cost.

2) Current Investments

In the financial statements prepared under Previous GAAP, Current Investments of the Company were measured at lower of cost or fair value. Under Ind AS, these investments have been classified as FVTPL on the date of transition. The fair value changes are recognised in the Statement of Profit and Loss.

On the date of transition to Ind AS, the difference between the fair value of Current Investments as per Ind AS and their corresponding carrying amount as per financial statements prepared under Previous GAAP,has resulted in an increase in the carrying amount of these investments by ''16,81,964.80, which has been recognised directly in retained earnings (Equity). The above transition has impacted an increase in equity by ''16,81,964.80 as at transition date.

3) Deferred tax:

In the financial statements prepared under Previous GAAP, deferred tax was accounted as per the income statement approach which required creation of deferred tax asset/liability on temporary differences between taxable profit and accounting profit. Under Ind AS, deferred tax is accounted as per the Balance Sheet approach which requires creation of deferred tax asset/ liability on temporary differences between the carrying amount of an asset/liability in the Balance Sheet and its corresponding tax base.

The application of Ind AS has resulted in recognition of deferred tax on new temporary differences which were not required to be recognised under Previous GAAP. In addition, the above mentioned transitional adjustments relating to current have led to temporary differences and creation of deferred tax thereon.

4) Remeasurement benefit of defined benefits plans

In the financial statements prepared under Previous GAAP, remeasurement benefit of defined plans (gratuity), arising primarily due to change in actuarial assumptions was recognised as employee benefits expense in the Statement of Profit and Loss. Under Ind AS, such remeasurement benefits relating to defined benefit plans is recognised in OCI as per the requirements of Ind AS 19- Employee benefits. Consequently, the related tax effect of the same has also been recognised in OCI.

For the year ended 31st March, 2017, remeasurement of gratuity liability resulted in a net benefit of Rs,46,332.61 which has now been removed from employee benefits expense in the Statement of Profit and Loss and recognised separately in OCI. This has resulted in increase in employee benefits expense by Rs,46,332.61 and gain in OCI by Rs,46,332.61 for the year ended 31st March, 2017. Consequently, tax effect of the same amounting to Rs,15,319/- is also recognized separately in OCI.

The above changes do not affect Equity as at date of transition to Ind AS and as at 31st March, 2017. However, Profit before tax and profit for the year ended 31st March, 2017 decreased by Rs, 46,332.61 and Rs,31,013.61 respectively.

5. Contingent liabilities not provided in respect of

a) Income-tax liabilities in respect of A.Y. 2010-2011 of Rs,60,47,439/- for which appeal is pending before CIT(A).

b) Income-tax liabilities in respect of A.Y. 2011-2012 of Rs,8,37,770/- for which rectification is pending before the Income Tax Department.

c) Income-tax liabilities in respect of A.Y. 2016-2017 of Rs,37,395/- for which rectification is pending before the Income Tax Department.

6. The company has made an application to Reserve Bank Of India (RBI) for certification of Registration as Type-II NBFC-ND during the year, the approval of which is pending from RBI.

7. Segment Reporting:

The company has following business segments, which are its reportable segments. Operating segments disclosures are consistent with the information provided to and reviewed by the chief operating decision maker.

8. Related parties disclosures

a. Key Management Personnel

Rajendra D. Shah Neha P. Shah

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

c. Where person mentioned in (a) or (b) exercise significant influence

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

Shailesh Shah Securities Pvt. Ltd.

9. 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 Ind AS - 12 “Taxes on Income” issued by Ministry of Corporate Affairs, net deferred tax liabilities on account of timing difference for current year of Rs,11,44,41,775/- is charged to the Statement of Profit & Loss and net deferred tax assets of Regular Rs,6048/- is credited to other comprehensive income.

10 As at March 31, 2018, the company has reviewed the future earnings of all the cash generating units in accordance with the Ind AS 36 “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.

11. 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.

12. 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, 2018.

13. Previous year’s figures have been regrouped wherever necessary to confirm with this year’s classification.


Mar 31, 2016

1.. Contingent liability not provided in respect of Income Tax liabilities of A.Y. 2009-10, A.Y. 2010-11 and A.Y. 2013-14 of Rs. 32,72,650/-, Rs. 60,47,440 and Rs. 2,92,50,020/- respectively for which rectification under section 154 of the Income Tax Act,1961 is pending before the Income Tax Department.

2. 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”.

3. 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. 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.

Segment Revenue, Results and Other Information.

4. Related parties disclosures

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

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

7. Associates

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

8. Taxation:

9. 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.

10. In accordance with AS - 22 “Taxes on Income” issued by the Institute of Chartered Accountants of India, net deferred tax liabilities on account of timing difference for current year of Rs. 1,24,83,054.31 is charged to the Statement of Profit & Loss.

11. As at March 31, 2016, 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.

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, 2016.

14. Previous year’s figures have been regrouped wherever necessary to confirm with this year’s classification.


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, 2012

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.

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 declares 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.

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

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 0n “Employees Benefits”

4. Segment Reporting:

The company has identified business segment as the primary segment after considering all the relevant factors. The company's 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

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

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

Shailesh Shah Securities Pvt. Ltd.

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 ofRs.18,651.86 is debited to the Statement of Profit & Loss.

7. As at March 31, 2012, 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, 2012.

10. Open Interest in commodities futures as on 31st March, 2012

11. Previous year figures

Till the year ended 31st March, 2011, the company was using pre-revised schedule VI to the Companies Act, 1956 for preparation and presentation of its financial statements. During the year 31st March, 2012, the revised schedule VI notified under the Companies Act 1956 has become applicable to the company. The company has reclassified its previous year figures to conform to this year's classification.


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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