Accounting Policies of Dynamic Portfolio Management & Services Ltd. Company

Mar 31, 2024

Corporate Information:

Dynamic Portfolio Management and Services Limited ("the Company") is a listed public company incorporated on 11th May, 1994 in India and regulated by the Reserve Bank of India (RBI) as Loan Company - Not accepting public deposit - Non-Banking Finance Company (LC-ND-NBFC) engaged in loan provider, other financing activities.

NOTE-1: SIGNIFICANT ACCOUNTING POLICIES

1. Basis of Preparation of Financial Statements and Measurement

These financial statements have been prepared in accordance with Indian Accounting Standard (Ind AS), on-going concern basis following accrual system of accounting, and the provisions of the Companies Act, 2013 ("the Act") (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The assets and liabilities have been measured at historical cost or at amortized cost or at fair value at the end of each reporting period. The Company has assumed 12 months for the purpose of current and non-current classification of assets and liabilities.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique.

The functional Currency of the company in Indian rupee (1NR).

2. Cash Flow Statement

Cash flows are reported usingthe indirect method, whereby profit/loss before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with

investing or financing flows. The cash flows from operating, investing and financing activities of the Company are segregated.

3. Use of estimates and judgments

In preparation of the financial statements, the Management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities including contingent liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience & other relevant factors and are reviewed on an ongoing basis. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and future periods are affected.

4. Cash and Cash Equivalents

Cash comprises all highly liquid financial instruments, which are readily convertible into known cash and demand deposits, The Company considers cash equivalents as all shortterm balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant, risk of changes in value.

5. Property, Plant and Equipment (PPE) and Depreciation

Property, Plant and Equipment are stated at cost comprising of purchase price and any initial directly attributable cost of bringing the asset to its working condition for its intended use, less accumulated depreciation (other than freehold land) and impairment loss, if any.

Depreciation is provided for Property, plant and equipment on straight line basis so as to expense the cost less residual value over their estimated useful lives based on technical evaluation. The estimated useful lives and residual values are reviewed at the end of each reporting period, with the effect of any changes is estimate accounted for on a prospective basis.

Depreciation on additions to/deductions from PPE during the year is charged on prorata basis from/up to the month in which the asset is available for use/disposed.

An item of PPE is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the derecognition of an item of PPE is determined as the difference between the net disposal proceeds and the carrying amount of the asset and is recognized in the Statement of Profit and Loss.

6. Impairment of Assets

An asset is treated as impaired when the carrying amount of asset exceeds its recoverable value. The Company assesses at each Balance Sheet date whether there is an indication that an asset may be impaired.

7. Provisions and Contingent Liabilities

Provisions are recognized when the Company has a present legal or constructive obligation as a result of a past event, if it is probable that the Company will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will he received and the amount of the receivable can be measured reliably.

Where it is not probable that an outflow of economic benefits will be required or the amount cannot be estimated reliably, the obligation is disclosed as contingent liability in notes to accounts, unless the probability of outflow of economic benefits is remote.

8. Employee benefits

Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss for the year in which the related service is rendered.

Long-term employee benefits are recognized as an expense in the Statement of Profit and Loss for the year in which the employees have rendered services.

9. Recognition of Revenue and Expenditure

Interest on financial assets is recognized on accrual basis in accordance with the terms of the respective contract, taking into consideration the proportion of time and the applicable interest rate. Revenue from trading in securities is accounted on settlement date basis. All the expenses are accounted for on accrual basis.

10. Income Taxes

Income Tax expense comprises of current and deferred tax. It is recognized in Statement of Profit and Loss, except when it relates to an item that is recognized in OCI or directly in equity, in which case, tax is also recognized in OCI or directly in equity.

Current Taxes

Current tax is the expected tax payable on taxable income for the year, using, tax rates enacted or substantively enacted and as applicable at the reporting date, and any adjustments to tax payable in respect of Previous Years.

Current tax assets and liabilities are offset when there is a legally enforceable right to set off the Recognized amounts and there is an intention to settle the asset and liability on a net basis.

Deferred Tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and Liabilities in the financial statements and the corresponding tax bases used in the computation of taxable income. Deferred tax is measured at the tax rates based on the laws that have been enacted or substantively enacted by the reporting date, based on the expected manner of realization or settlement of the carrying amount of assets / liabilities. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against liabilities, and they relate to income taxes levied by the same tax authority.

A deferred tax liability is recognized for all taxable temporary differences. A deferred tax asset is recognized for all deductible temporary differences to the extent that it is probable that future taxable profits will be available against which the deductible temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

11. Dividends

Final dividends are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Board of Directors of the Company. However, there''s no dividend declared by the company during the year.

12. Inventories

Inventories which are consisting of share are valued as under: -Quoted Securities: -Lower of Cost or Market Price.

Unquoted Securities: -At Cost.

13. Earnings Per Share

Basic earnings per equity share is calculated by dividing the net profit or loss attributable to equity Shareholders of the company by the weighted average number of equities shares outstanding during the financial year.

To calculate diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

14. First time adoption — mandatory exceptions and optional exemptions

The Financial Statements have been prepared in accordance the Ind AS applicable as at 31.03.2020. These accounting and measurement principles have been applied retrospectively to the date of transition to Ind AS and for all periods presented.

15. Statement of activities applicable to Non-Banking Finance Companies (NonDeposit Accepting Holdings):

The Company holds a Certificate of Registration No. B-05.02311 issued by Reserve Bank of India to carrying the business of non-banking financial services (Non-Deposit Accepting or Holding) under section 45 IA of the RBI Act, 1934.

The Company is entitled to continue to hold the Certificate of Registration in terms of assets/income pattern as on 31st March 2024, in terms of paragraph 15 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 in respect of non-deposit taking NBFCs.

The Company has not accepted any public deposit during the relevantyear and The Company has complied with the prudential norms relating to income recognition, accounting standards, asset classification and provisioning for bad and doubtful debts as applicable to it in terms of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.

---

Mar 31, 2015

1. General Information

DYNAMIC PORTFOLIO MANAGEMENT AND SERVICES LIMITED having its Registered Office at 53A, Mirza Ghalib Street, 4th Floor, Kolkata-700016. The Company has carried on NBFC Business during the financial Year 2014-15. The Company is a public limited company and its shares are listed in Bombay Stock Exchange Limited.

2.1 Basis of preparation of Financial Statements

These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards noticed under the relevant provisions of the 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.

2.2 Use of Estimates

The preparation of financial statements in conformity with the generally accepted accounting principles requires the management to make estimate and assumptions that affect the report amount of assets, liabilities, revenue and expenses and disclosure of contingent liabilities as of the date of the financial statements. The estimates and assumptions used in the accompanying financial statements are based upon the management's evaluations of the relevant facts and circumstances as of the date of the financial statement. Actual results could differ from these estimates.

2.3 Tangible Assets

Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates 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 variations attributable to the 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. Projects under which assets are not ready for their intended use are disclosed under Capital Work-in- Progress.

2.4 Impairment

Consideration is given at each Balance Sheet date to determine whether there is any modification or impairment of the carrying amount of the fixed assets. If any condition exists, an asset's recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of any asset exceeds the recoverable amount.

2.5 Investments

Investments that are readily realizable and are intended to be held for not more than one year from the date, on which such investments are made, are classified as current investments. All other investments are classified as long term investments. Current investments are carried at cost or fair value, whichever is lower. Long-term investments are carried at cost. However, provision for diminution is made to recognize a decline, other than temporary, in the value of the investments, such reduction being determined and made for each investment individually.

2.6 Inventories

Inventories, Consisting of Share, have been valued as under : Quoted Share : At Market Price Unquoted Share : At Cost

2.7 Revenue Recognition

Item of Income & Expenditure are recognized on accrual basis.

Dividend income is recognized when right to receive dividend is established. Interest income is recognized on a time proportion basis taking into account the outstanding and the rate applicable.

2.8 Employee Benefits

a) Short term employee benefits (i.e. benefit payable within one year) are recognized in the period in which employee services are rendered.

b) No Provision for gratuity is made since it will be considered on cash Basis.

2.9 Current and Deferred Tax

Tax expense for the year, comprising current tax and deferred tax, are included in the determination of the net Profit or loss for the period. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the taxation laws prevailing in the respective jurisdictions.

Deferred tax is recognized for all the 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 period Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. At each Balance Sheet date, the Company reassesses unrecognized deferred tax assets, if any.

2.10 Earnings per share

Basic earnings per share are calculated by dividing the net Profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the Company's earnings per share are the net Profit for the period attributable to equity shareholders.

The weight average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net Profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

2.11 Provision and Contingent liabilities

Provision under Expenditure in Profit & Loss Account include for Provision for Standard Assets is in accordance with RBI Direction on Non-Banking Financial Companies: Rs. 2,22,482.90 (.25% on Standard Assets)

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is termed as a contingent liability.

---

Mar 31, 2014

1. The Financial Statements are prepared on mercantile basis under the historical cost convention in accordance with the generally accepted accounting principles in India, Accounting Standards notified under section 211(3C) of the Companies Act 1956, read with the Companies (Accounting Standard) Rules, 2006 and the other relevant provisions of the Companies Act, 1956.

Revenue Recognition

2. All revenue and expenses are accounted on accrual basis.

Fixed Assets

3. Fixed Assets are stated at cost less Depreciation, cost comprises the purchases price and other attributable costs. Depreciation on assets is provided on written down value method as per rates prescribed in Schedule XIV to the Companies Act 1956.

Depreciation

4. Depreciation is provided on Straight-line basis at the rates prescribed in Schedule XIV to the Companies Act 1956.

5. Depreciation on additions/ deletions is calculated on pro-rata with respect to date of addition/ deletions.

Inventories

6. Stock-in-Trade is valued at cost or market value whichever is lower (Scrip wise).

Investments

7. Stock / Securities acquired and intended to be held for a longer period are classified as Investments.

8. Investments are valued at cost of acquisition with the provision where necessary for diminution, other than temporary, in the value of investments.

Retirement Benefit

9. None of the Employee has completed the service period to become eligible for payment of gratuity.

Income Tax

10. Tax expenses comprise of current, deferred and fringe benefit tax.

11. Provision for current income tax and fringe benefit tax is made on the basis of relevant provisions of Income Tax Act, 1961 as applicable to the financial year.

12. Deferred Tax is recognized subject to the consideration of prudence 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.

Provisions, Contingent Liabilities & Contingent Assets

13. The Company creates a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation.

14. A disclosure for a contingent liability is made when there is a possible obligation or present obligation that probably will not require an outflow of resources or where reliable estimate of the amount of the obligation cannot be made.

15. Contingent Assets are neither recognized nor disclosed.

Others

16. None of the Raw Materials, Stores, Spares and Components consumed or purchased during the year have been imported.

17. None of the Earnings / Expenditures is in Foreign Currency.

18. Balance of Debtors, Creditors, Deposits, Loans and Advances are subject to confirmation.

19. In the opinion of the Board, the Current Assets, Loans & Advances are approximately of the value stated if realized in the ordinary course of business. The provision for depreciation and all known liabilities are adequate and not in excess of the amounts reasonably necessary.

20. Investments of the Company have been considered by the management to be of a long term nature and hence they are long term investments and are valued at cost of acquisitions.

Segment Report

21. Segment reporting as defined in Accounting Standard 17 is not applicable as the Company is primarily engaged in NBFC Activities as well as Investments in Shares & Securities. As informed to us, there are not separate segment within the Company as defined as 17 (Segment Report).

---

Mar 31, 2010

Basis of Preparation of Financial Statements

1. The Financial Statements are prepared on mercantile basis under the historical cost convention in accordance with the generally accepted accounting principles in India, Accounting Standards notified under section 211(3C) of the Companies Act 1956, read with the Companies (Accounting Standard) Rules, 2006 and the other relevant provisions of the Companies Act, 1956.

Revenue Recognition

2. All revenue and expenses are accounted on accrual basis. Fixed Asset

3. Fixed Assets are stated at cost less Depreciation, cost comprises the purchases price and other attributable costs. Depreciation on assets is provided on written down value method as per rates prescribed in Schedule XIV to the Companies Act 1956.

Depreciation

4. Depreciation is provided on Straight-line basis at the rates prescribed in Schedule XIV to the Compa- nies Act 1956.

5. Depreciation on additions/ deletions is calculated on pro-rata with respect to date of addition/ dele- tions.

Inventories

6. Stock-in-Trade is valued at cost or market value whichever is lower (Scrip wise). Investments

7. Stock / Securities acquired and intended to be held for a longer period are classified as Investments.

8. Investments are valued at cost of acquisition with the provision where necessary for diminution, other than temporary, in the value of investments.

Retirement Benefit

9. None of the Employee has completed the service period to become eligible for payment of gratuity. Income Tax

10. Tax expenses comprise of current, deferred and fringe benefit tax.

11. Provision for current income tax and fringe benefit tax is made on the basis of relevant provisions of Income Tax Act, 1961 as applicable to the financial year.

12. Deferred Tax is recognized subject to the consideration of prudence on timing differences, being the difference between taxable Income and Accounting Income that originate in one period and are ca- pable of reversal in one or more subsequent periods.

Provisions, Contingent Liabilities & Contingent Assets

13. The Company creates a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation.

14. A disclosure for a contingent liability is made when there is a possible obligation or present obligation that probably will not require an outflow of resources or where reliable estimate of the amount of the obligation cannot be made.

15. Contingent Assets are neither recognized nor disclosed.

Others

16. None of the Raw Materials, Stores, Spares and Components consumed or purchased during the year have been imported.

17. None of the Earnings / Expenditures is in Foreign Currency.

18. Balance of Debtors, Creditors, Deposits, Loans and Advances are subject to confirmation.

19. In the opinion of the Board, the Current Assets, Loans & Advances are approximately of the value stated if realized in the ordinary course of business. The provision for depreciation and all known liabilities are adequate and not in excess of the amounts reasonably necessary.

20. Investments of the Company have been considered by the management to be of a long term nature and hence they are long term investments and are valued at cost of acquisitions.

Segment Report

21. Segment reporting as defined in Accounting Standard 17 is not applicable as the Company is prima- rily engaged in NBFC Activities as well as Investments in Shares & Securities. As informed to us, there are not separate segment within the Company as defined as 17 (Segment Report).