Notes to Accounts of Dhanlaxmi Cotex Ltd.

Mar 31, 2024

(M) Provisions and Contingent Liabilities

The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources.

Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

(N) Operating Cycle

Based on the nature of products/activities of the Company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

(O) Financial Instruments

(I) Financial Assets

(i) Initial recognition and measurement

All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition. Purchase and sale of financial assets are recognised using trade date accounting.

(ii) Subsequent measurement

(a) Financial assets carried at amortised cost (AC): A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(b) Financial assets at fair value through other comprehensive income (FVTOCI): A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments o f principal and interest on the principal amount outstanding.

(c) Financial assets at fair value through profit or loss (FVTPL): A financial asset which is not classified in any of the above categories is measured at FVTPL.

(iii) Impairment of financial assets

In accordance with Ind AS 109, the Company uses ''Expected Credit Loss'' (ECL) model, for evaluating impairment of financial assets other than those measured at fair value through profit and loss (FVTPL).

Expected credit losses are measured through a loss allowance at an amount equal to:

(a) The 12-months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or

(b) Full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument).

For trade receivables Company applies ''simplified approach'' which requires expected lifetime losse s to be recognised from initial recognition of the receivables. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward looking estimates are analyzed.

For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

(II) Financial Liabilities

(i) Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.

(ii) Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

28. FIRST TIME ADOPTION OF IND AS

The Company has adopted Ind AS with effect from 1st April 2017 with comparatives being restated. Accordingly the impact of transition has been provided in the Opening Reserves as at 1st April 2016. The figures for the previous period have been restated, regrouped and reclassified wherever required to comply with the requirement of Ind AS and Schedule III.

Explanation 1 - Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

(I) Ind AS Optional exemptions

Deemed Cost - Property, Plant and Equipment and Intangible Assets

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets. Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying values.

(II) Ind AS mandatory exemptions

(i) Estimates

An entity''s estimates in accordance with Ind AS'' at the date of transition to Ind AS shall be consistent with the estimates made for the same date in accordance with the previous GAAP (after adjustments to reflect any difference in accounting policies) unless there is an objective evidence that those estimates were in error.

(ii) Classification and measurement of financial assets (other than equity instruments)

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exists at the date of transition to Ind AS.

(iii) De-recognition of financial assets and financial liabilities

Ind AS 101 requires a first time adopter to apply the de-recognition provisions for Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows first time adopter to apply the DE recognition requirements provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past Ind AS 101 retrospectively from the date of entity''s choosing, transactions was obtained at the time of initially accounting for the transactions.

30. The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current presentation as per the schedule III of Companies Act, 2013.

As per our attached report of even date For and on behalf of the Board of Directors

For M/s. Gohel and Associates LLP Chartered Accountants (FRN: W100162)

UDIN: 24152864BKCGLH2780 Sd/- Sd/- Sd/-

Mahesh S. Jhawar Rahul M. Jhawar Natwar Agarwal

(Whole Time Director) (Director & CFO) (Director)

Sd/- DIN: 00002908 DIN: 07590581 DIN: 08170211

Abhay M. Gohel

(Partner)

(Mem No. 152864) Sd/-

Place: Mumbai Arti Jain

Dated: 13^th May, 2024 (Company Secretary)

Mem No. 63275

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Mar 31, 2014

A. The break up of net Deferred Tax Liability / Assets on 31st March, 2014 is under.

(Rs. In Lakhs)

Deferred Tax Liability as on 01.04.2013 6.69

Less : Deferred Tax Assets for the year 0.08

(Difference between book & tax depreciation)

Net Deferred Tax Liability 6.61

The Deferred Tax balances have arisen principally on account of the timing difference between the depreciation adjusted in account. Though adjustment has been made in term of Accounting Standard 22, having regard to the Normal Capital Expenditure which the Company is expected to continue to make in likely to materialize on account thereof.

2. Figures pertaining to previous year have been regrouped and recast wherever necessary so as to make them comparable with those of the current year.

3. Related Party Disclosures as required by the Accounting Standard 18 "Related Party Disclosures" are given below.

a. List of related parties with whom the company entered in to transactions during the year in the Ordinary Course of Business.

# Associate Companies.

1. M R Share Broking Pvt. Ltd.

2. V R M Share Broking Pvt. Ltd.

# Key Management Personnels and Relatives

1. Ramautar S. Jhawar

2. Mahesh S. Jhawar

b. Transaction with related parties.

4. The Companies main business segment is Investment & Trading in equities which constitutes more than 90% of its turnover and the only geographical segment is India. Consequently the need for separate disclosure as required under Accounting Standared 17 "Segment Reporting" is not considered relevant.

5. Disclosure under Section 22 of the Micro, Small and Medium Enterprises Devlopment Act, 2006 could not be furnished as none of the suppliers of the Company have provided the details of their registration under the said Act.

6. As stipulated in AS-28, the Company assessed potetial generation of economic benefits from its business units and is of the view that the assets employed in continuing business are capable of generating adequate returns over their useful lives in the usual course of business, there is no indication to the Contrary and accordingly the management is of the view that no impairment provision is called for in these account.

7. The Company has returned leased office premises to Sohanlal Jhawar Family Trust and using for office purpose premises owned by the promoter.

8. Additional information pursuant to the provisions of part IV of schedule VI of the Companies Act,1956.

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Mar 31, 2013

1. Figures pertaining to previous year have been regrouped and recast wherever necessary so as to make them comparable with those of the current year.

2. Related Party Disclosures as required by the Accounting Standard 18 "Related Party Disclosures" are given below.

a. List of related parties with whom the company entered in to transactions during the year in the Ordinary Course of Business.

# Associate Companies.

1. Sohanlal Jhawar Family Trust

2. MR Share Broking Pvt. Ltd.

3. V R M Share Broking Pvt. Ltd.

# Key Management Personnels and Relatives

1. Ramautar S. Jhawar

2. Mahesh S. Jhawar

b. Transaction with related parties.

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Mar 31, 2012

1. Figures pertaining to previous year have been regrouped and recast wherever necessary so as to make them comparable with those of the current year.

2. Related Party Disclosures as required by the Accounting Standard 18 "Related Party Disclosures" are given below.

a. List of related parties with whom the company entered in to transactions during the year in the Ordinary Course of Business.

# Associate Companies.

1. Sohanlal Jhawar Family Trust

2. MR Share Broking Pvt. Ltd.

3. V R M Share Broking Pvt. Ltd.

# Key Management Personnels and Relatives ;

1. Ramautar S. Jhawar

2. Mahesh S. Jhawar

3. The Companies main business segment is Investment & Trading in equities which constitutes more than 90% of its turnover and the only geographical segment is India. Consequently the need for separate disclosure as required under Accounting Standared 17 "Segment Reporting" is not considered relevant.

4. Disclosure under Section 22 of the Micro, Small and Medium Enterprises Devlopment Act, 2006 could not be furnished as none of the suppliers of the Company have provided the details of their registration under the said Act.

5. As stipulated in AS-28, the Company assessed potetial generation of economic benefits from its business units and is of the view that the assets employed in continuing business are capable of generating adequate returns over their useful lives in the usual course of business, there is no indication to the Contrary and accordingly the management is of the view that no impairment provision is called for in these account.

6. The Company has taken office premises on lease from Sohanlal Jhawar Family Trust @ Rs.1000/-p.m. at a lease rent and interest free deposit of Rs.300000/-.

7. Additional information pursuant to the provisions of part IV of schedule VI of the Companies Act, 1956.

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Mar 31, 2010

A. The Company has adopted Accounting Standard-22 " Accounting for taxes on Income" with effect from 1st April 2001.

During the current year the Company has a Deferred Tax Assets due to higher depreciation adjusted as per the Companies Act, 1956 compared to depreciation admissible as per the Income Tax Act, 1961 which is credited to the Profit & Loss Account of the current year.

1. Figures pertaining to previous year have been regrouped and recast wherever necessary so as to make them comparable with those of the current year.

2. Related Party Disclosures as required by the Accounting Standard 18 "Related Party Disclosures" are given below.

a. List of related parties with whom the company entered in to transactions during the year in the Ordinary Course of Business.

# Associate Companies.

1. Sohanlal Jhawar Family Trust

2. MR Share Broking Pvt. Ltd.

3. VRMShare Broking Pvt. Ltd.

# Key Management Personnels and Relatives

1. Ramautar S. Jhawar

2. Mahesh S. Jhawar

b. Transaction with related parties.

3. The Companies main business segment is Investment & Trading in equities which constitutes more than 90% of its turnover and the only geographical segment is India. Consequently the need for separate disclosure as required under Accounting Standared 17 "Segment Reporting is not considered relevant.

4. Disclosure under Section 22 of the Micro, Small and Medium Enterprises Devlopment Act, 2006 could not be furnished as none of the suppliers of the Company have provided the details of their registration under the said Act.

5. As stipulated in AS-28, the Company assessed potetial generation of economic benefits from its business units and is of the view that the assets employed in continuing business are capable of generating adequate returns over their useful lives in the usual course of business, there is no indication to the Contrary and accordingly the management is of the view that no impairment provision is called for in these account.

6. The Company has taken office premises on lease from Sohanlal Jhawar Family Trust @ Rs.1000/-p.m. at a lease rent and interest free deposit of Rs.300000/-.

7. Additional information pursuant to the provisions of part IV of schedule VI of the Companies Act, 1956 as per annexure 1.