Accounting Policies of Daulat Securities Ltd. Company

Mar 31, 2025

Corporate information

DAULAT SECURITIES LIMITED ( “the Company”) is a public limited company incorporated
and domiciled in India. The registered office of the Company is situated at 86, Canning Street,

The Company’s shares are listed on the BSE Ltd., ( Bombay Stock Exchange ).

SPECIFY THE NATURE OF THE BUSINESS

The Company is doing the Business of Stock Broking and Depository Partcipants.

The financial statements for the year ended 31st March, 2025 was approved for issue by the Board
of Directors of the Company on 30th May, 2025 and is subject to the adoption by the shareholders

Note No. : 2 Significant accounting policies

2.1 Statement of Compliance with Ind AS

In accordance with the notification dated 16th February, 2015, issued by the Ministry of Corporate
Affairs, the Company has adopted Indian Accounting Standards (referred to as “Ind AS”) notified
under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) with effect from 1st
April, 2017 with restatement of previous year figures presented in this financial statements.
Accordingly, the financial statements have been prepared in accordance with Ind AS prescribed

All the Ind AS issued and notified by the Ministry of Corporate Affairs under the Companies
(Indian Accounting Standards) Rules, 2015 (as amended) till the financial statements are approved
for issue by the Board of Directors has been considered in preparing these financial statements.

2.2 Basis of preparation

These financial statements have been prepared in accordance with Ind AS under the historical cost basis
i) Certain financial assets and financial liabilities (including derivative instruments) - measured at fail

Historical cost is generally based on the fair value of the consideration in exchange for goods and ser
All assets and liabilities have been classified as current or non-current as per the Company’s normal c
criteria set out in Schedule III to the Companies Act, 2013. The Company has ascertained its operatin
purpose of current and non-current classification of assets and liabilities.

The financial statements including notes thereon are presented in Indian Rupees (“Rupees”or “Rs.” ),
functional and presentation currency. All amounts disclosed in the financial statements including note
off to the nearest lacs as per the requirement of Schedule III to the Act, unless stated otherwise.

2.3 Revenue recognition

Revenue is recognised to the extent it is probable that economic benefits would flow to the Company
reliably measured, regardless of when the revenue proceeds is received from customers.

Revenue is measured at the fair value of the consideration received/receivable taking into account coi
payment and excluding taxes or duties collected on behalf of the Government.

The specific recognition criteria for revenue recognition are as follows:

a) Sale of goods

Sale of goods is recognised at the time of transfer of substantial risk and rewards of ownership to the

b) Interest income

Interest income is included in “Other Income” in the Statement of Profit and Loss.

c) Dividend Income

Dividend income is recognised when the Company’s right to receive the dividend is established i.e. in
date of declaration by the Board of Directors; whereas in case of final dividend, on the date of approv

d ) All other income are accounted for on accrual basis.

2.4 Expenses

All expenses are accounted for on accrual basis.

2.5 Property, plant and equipment (PPE)

a) All Property, plant and equipment are measured at cost less accumulated depreciation and a
losses , if any.

The cost of an asset includes the purchase cost of materials, including import duties and non-refundat
attributable costs of bringing an asset to the location and condition of its intended use.

Subsequent costs are included in the asset’s carrying amount only when it is probable that future ecor
with the item will flow to the entity and the cost of the item can be measured reliably.

The carrying amount of the replaced part is derecognised. All other repair and maintenance costs are r
Statement of Profit and Loss as incurred.

When parts of an item of property, plant and equipment have different useful lives, they are accountei
(major components) of property, plant and equipment.

The cost and related accumulated depreciation are eliminated from the financial statements upon sale or
asset and the resultant gains or losses are recognized in the Statement of Profit and Loss.

During the year , in terms of Ind AS 36 Impairment of Assets ,the company has determined impairme
of its Assets whereever considered necessary.

b) Depreciation methods, estimated useful lives and residual value

Freehold land is not depreciated.

Lease-hold land are amortised over the lease term.

Depreciation on other items of PPE is provided on a straight-line basis to allocate their cost, net of the
the estimated useful life of the respective asset as specified in Schedule II to the Companies Act, 2013
transmission lines and Mobile phones which are depreciated over a period of five years and three yea
The estimated useful lives are determined based on assessment made by technical experts, in order to
of the assets. The management believes that these estimated useful lives are realistic and reflect fair a
period over which the assets are likely to be used.

The estimated useful lives considered are as follows:

Category Useful life

Buildings ( other than factory building) - 60 Years
Factory Building - 30 Years
Plant & Machinery - 25 Yearsd

Electrical Installation & Equipment (for double shift) - 20 Years
Generator Set ( for Double Shift) - 20 Years
Laboratory Equipment - 10 Years

Weighing Machines, Tools & Implements, Pollution Equipments & Fire fighting equipments - 25 Ye.

Computer & Accessories - 3 Years

Office Equipments including Air Conditioners - 5 Years

Furniture & Fixtures - 10 Years

Motor Cars - 8 Years

Motor Cycles & Scooters - 10 Years

There exists no restrictions or any encumbrances on title by way of any security/ pledge of any proper
against any liabilty of the company

Each item of PPE individually costing Rs. 5,000/- or less is depreciated over a period of one year fro
available for use.

The residual value of an item of PPE is not more than 5% of the original cost of the respective asset.
The estimated useful lives, residual values and depreciation method are reviewed at-least at the end o:
are adjusted ,wherever appropriate.

2.6 Inventories

a) Inventories are valued at lower of cost and net realisable value after providing for obsolescence, if
The cost of inventories is computed on FIFO ( First in First Out) basis.
and the estimated costs necessary to make the sale.

2.7 Leases

The determination of whether an arrangement is (or contains) a lease is based on the substance of the
of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on
the arrangement conveys a right to use the asset even if that right is not explicitly specified in an arrai

a) When the Company is a lessee

A lease is classified at the inception date as a finance lease or an operating lease. Leases under which
and rewards of ownership are transferred to the Company are classified as finance leases.

Payment made under operating leases are recognized as expense in the Statement of Profit and Loss c
over the lease term, unless the receipts are structured to increase in line with expected general inflation t
lessor’s expected inflationary cost increase.

b) When the Company is a lessor

Leases in which the Company does not transfer substantially all the risks and rewards of ownership o
operating leases. Where the escalation of lease rentals is in line with the expected general inflation so
lessor for expected inflationary cost, the increases in the rentals is not straight lined

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Mar 31, 2015

A) System of Accounting:

The Financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under relevant provisions of Companies Act 2013. The Financial Statements are prepared on accrual basis under the historical cost convention, except for certain fixed assets which are carried at revalued amounts. The Financial statements are presented in Indian Rupees.

b) Use of Estimate:

The preparation of Financial statement in conformity with Indian GAAP require judgments, estimates and assumptions to be made that affect the reported amount of assets and Liabilities, disclosure of contingent liabilities on the date of financial statements and reported amount of revenues and expenses during the reporting period.. Difference between the actual results and estimates are recognized in the period in which results are known/materialized.

c) Fixed Assets:

Tangible Assets are stated at cost net off recoverable taxes, trade discounts & rebate and include amounts added on revaluation, less accumulated Depreciation and impairment-loss if any. The cost of Tangible Assets Comprises its Purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variation attributable to assets.Subsequent expenditures related to an item of Tangible asset are added to its book value only if they increase the future benefits from the existing Asset beyond its previously assessed standard of performance.

d) Depreciation:

Depreciation on Fixed Assets is provided to the extent of depreciable amount on written down value method (WDV). Depreciation is provided based on useful life of the asset as prescribed in Schedule II of Companies act 2013, except in respect of the following assets, where useful life is different than those prescribed in Schedule II.

e) Investments:

Investments are non-current and valued at cost. Expenses relating to transfer are charged to revenue. Provision for diminution in value is not considered unless such diminution is permanent in nature. Gains / Losses on disposal of the investments are recognized as Income / Expenditure.

f) Inventories:

Items of inventories are valued at lower of cost and net realizable value after providing for obsolesce, if any.

g) Accounting for Taxes on Income:

Tax expenses comprises of current tax & deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using applicable rates of taxes. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses are recognized if there is virtual certainty that sufficient future taxable income will be available to realize the same.

h) Employee Benefit

Provision on gratuity is made on accrual basis in terms of provisions of payment of Gratuity Act as on the last date of the Financial year. However Actuarial Valuation is not done as per AS-15.

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Mar 31, 2014

A) System of Accounting:

All income and expenses are accounted for on accrual basis.

b) Fixed Assets:

Fixed Assets are stated at cost of acquisition inclusive of expenses incidental to their acquisition as reduced by accumulated depreciation thereon.

c) Depreciation:

Depreciation on Fixed Assets has been provided on the written down value method at the rates specified in Schedule XIV of the Companies Act, 1956.

d) Investments:

Investments are non-current and valued at cost. Expenses relating to transfer are charged to revenue. Provision for diminution in value is not considered unless such diminution is permanent in nature. Gains / Losses on disposal of the investments are recognized as Income / Expenditure.

e) Inventories are valued at cost or market value whichever is lower.

f) Accounting for Taxes on Income:

Deferred tax is recognised 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. Deferred tax assets are recognised only if there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets will be realized. Such assets are reviewed as at each Balance Sheet date to reassess reliability thereof.

g) Employee Benefit

Provision on gratuity is made on accrual basis in terms of provisions of payment of Gratuity Act as on the last date of the financial year. However Actuarial Valuation is not done as per AS-15. INFORMATION PURSUANT TO THE PROVISIONS OF PART II OF SCHEDULE VI TO THE COMPANIES ACT, 1956

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Mar 31, 2013

A)System of Accounting:

All income and expenses are accounted for on accrual basis.

b) Fixed Assets:

Fixed Assets are stated at cost of acquisition inclusive of expenses incidental to their acquisition as reduced by accumulated depreciation thereon.

c) Depreciation:

Depreciation on Fixed Assets has been provided on the written down value method at the rates specified in Schedule XIV of the Companies Act, 1956.

d) Investments:

Investments are non-current and valued at cost. Expenses relating to transfer are charged to revenue. Provision for diminution in value is not considered unless such diminution is permanent in nature. Gains / Losses on disposal of the investments are recognized as Income / Expenditure.

e) Inventories are valued at cost or market value whichever is lower.

f) Accounting for Taxes on Income:

Deferred tax is recognised 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. Deferred tax assets are recognised only if there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets will be realized. Such assets are reviewed as at each Balance Sheet date to reassess reliability thereof.

g) Employee Benefit

The company has provided for gratuity payable in the accounts to employees who have completed the requisite period of service.

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Mar 31, 2012

A) System of Accounting:

All income and expenses are accounted for on accrual basis.

b) Fixed Assets:

Fixed Assets are stated at cost of acquisition inclusive of expenses incidental to their acquisition as reduced by accumulated depreciation thereon.

c) Depreciation:

Depreciation on Fixed Assets has been provided on the written down value method at the rates specified in Schedule XIV of the Companies Act, 1956.

d) Investments:

Investments are valued at cost. Expenses relating to transfer are charged to revenue. Provision for diminution in value is not considered unless such diminution is permanent in nature. Gains/Losses on disposal of the investments are recognized as Income/Expenditure.

e) Inventories are valued at cost or market value whichever is lower.

f) Accounting for Taxes on Income:

Deferred tax is recognised 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. Deferred tax assets are recognised only if there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets will be realized. Such assets are reviewed as at each Balance Sheet date to reassess reliability thereof.

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Mar 31, 2010

(1) a) System of Accounting:

All income and expenses are accounted for on accrual basis.

b) Fixed Assets:

Fixed Assets are stated at cost of acquisition inclusive of expenses incidental to their acquisition as reduced by accumulated depreciation thereon.

c) Depreciation:

Depreciation on Fixed Assets has been provided on the written down value method at the rates specified in Schedule XIV of the Companies Act, 1956.

d) Investments:

Investments are valued at cost. Expenses relating to transfer are charged to revenue. Provision for diminution in value is not considered unless such diminution is permanent in nature. Gains / Losses on disposal of the investments are recognized as Income / Expenditure.

e) Inventories are valued at cost or market value whichever is lower.

f) Accounting for Taxes on Income:

Deferred tax is recognised on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are recognised only if there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets will be realized. Such assets are reviewed as at each Balance Sheet date to reassess reliability thereof.