DOLLAR INDUSTRIES Accounting Policy

[A) Basis of preparation of Financial Statement


The financial statements have been prepared to comply with (he Generally Accepted Accounting Principles in India (Indian GAAP ), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013. The financial statements are prepared on accrual basis under (he historical cost convention.


(B) Use of Estimates


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


(C) Fixed Assets & Depreciation


(i) Fixed Assets are slated a t cost less accumulated depreciation. The cost of the assets comprise its purchase price, borrowing cost and any other cost directly attributable to bringing 1he asset to its working condition for its intended use. Subsequently expenditures related to an item of fixed asset are abided to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.


(Ii) The amount shown under the bead ''''Capital Work in progress" has been appropriated towards respective fixed assets on their completion.


(iii) Cost of the fixed assets not ready for their intended use at the Balance Sheet date together with all related expenses is shown as Capital Work in Progress/Intangible Assets under development.


(iv) Depredation on Fixed Assets is provided to the extent of depreciable amount on the written down Value (WDV) Method. Depreciation is provided based on the useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.


(D) Impairment of Assets


The carrying amounts of assets are reviewed at each Balance Sheet date. If there is any indication of impairment based on internal /external factors, i.e. when the carrying amount of the asset exceeds the recoverable amount, an impairment costs is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting periods is reversed or reduced if there has Seen a favorable change in the estimate of the recoverable amount.


(E) Foreign Currency Transactions


(i) Initial Recognition: Foreign currency Transactions are recorded in (he reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and (he foreign currency as at the date of the transaction.


(ii) Conversion: Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in foreign currency are reported using the exchange rate al the date of the transaction.


(iii) Exchange Differences: Exchange differences arising on the settlement of monetary items are recognized as income or as expense in the year in which they arise.


(iv) Forward Exchange Contracts. The Company enters into Forward Exchange Contracts which are not intended for trading or speculation purposes. The premium or discount arising and the inception of forward exchange contract is amortized as expense or income over the Site of the contract. Exchange differences on such contract are recognized in the Statement of Profit & Loss in the year in which the exchange rates change. Any profit or loss arising on cancelation or renewal of foreign exchange contact is recognized as income or expense for the year.


(v) Derivative Financial Instruments and Hedging : The Company enters info derivative financial instruments to hedge foreign currency risk of firm commitment and highly probable forecast transactions and Interest rate risk. The method of recognizing the resultant gain or loss depends on whether the derivative is designated as Hedging instrument, and if so, the nature of the item being hedged The carrying amount of a derivative designated as a hedge is presented as a current asset or a liability.


(vi) Cash Flow Hedge : Forward exchange contracts entered into to hedge foreign currency risks of firm commitment or highly probable forecast transactions, forward rate options, currency and interest rates w a p that qualifies as cash flow hedges are recorded in accordance with the principles of hedge accounting enunciated in Accounting Standard (AS) 30 - ''''financial Instruments: Recognition and Measurement" issued by the Institute of Chartered Accountants of India. The gains or losses on designated hedging instruments that qualify as effective hedges are recorded In the Hedging Reserve account and are recognized in the statement of Profit and Loss in the same period or periods during which the hedge transactions affect Profit and Loss Account.


(F) Investments


Non-Current Investments are stated at cost. The diminution, if any. in the value of investment, is recognized when such diminution is considered other than temporary.


(G) Inventories


(i) Raw Materials and finished goods are valued at Cost or Net Realizable value, whichever is Lower.


(ii) Cost of inventories comprises material cost on FIFO basis, labour and manufacturing overheads incurred in bringing the inventories to their present location and condition,


(iii) Inter-divisional transfers are valued, either at works factory costs of the transferor unit/division, plus other charges


(H) Revenue Recognition


(i) Revenue is recognized based on the nature of activity when consideration can be reasonably measured and there exists reasonable certainty of its recovery.


{ii) Revenue from sale of goods is recognized when the substantial risks and rewards of ownership are transferred [o the buyer- under the terms of the contract. Sates are inclusive of excise duty and delivery charges. if any and net of Trade Discounts. Gut incentive schemes, cash discounts and rebates are separately booked as expenditure. However, excise duly relating !o sates is reduced from gross turnover for disclosing net turnover.


(iii) Sale of power to Tamil Nadu Electricity Board (TNEB) is accounted for based on the meter reading as per the metering equipments of TN£ B in stated at the Power Grid,


(iv) Interest income Is recognized on a lime proportion basis taking into account the amount outstanding and the rate applicable.


(v) Other income is accounted for on accrual basis as and when the right to recede arises.


(I) Employee Benefits


Contributions are made to Provident Fund and Employees State Insurance as per the provisions of Provident Fund Act and £ SI Act respectively and are charged to the profit and Loss account. The Company has no further obligations beyond its monthly contributions to the respective funds, Provision for gratuity and leave encashment are not made and are recognized as and when incurred Termination benefits are recognized as expenditure as and when incurred.


(J) Borrowing Costs


(I) Borrowing costs that are directly attributable to the acquisition. construction or production of qualifying assets are capitalized for the period until the asset is ready for its intended use. A qualifying asset is an asset that necessarily fakes substantial period of time to get ready for its intended use.


(ii) Otter Borrowing costs are recognized as expense in the period in which they are incurred.


(K) Research & Development Expenses


Revenue expenditure on Research and Development is charged as an expense through the normal heads of account in the year in which the same is incurred. Capital expenditure incurred on equipment and facilities that are acquired for research and development activities is capitalized and is depreciated according to the policy followed by the Company.


(L) Taxation


(i) Current Tax: Provision for current lax is made on the assessable income at the tax rate applicable lo the relevant assessment year. Minimum Alternative Tax credit is recognized as an asset only When and to the extent there is convincing evidence that the Company will pay normal tax during the specified period


(ii) Deferred Tax: The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enabled or substantively enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tan laws, are unrecognized only if there is a virtual certainly of their realization, supported by convincing evidence. Deferred (ax assets on account of other liming differences are recognized, only to the extent there is a reasonable certainty or its realization. At each Balance Sheet that, the carrying amount of deferred tax assets is reviewed to obtain reassurance as to realization.


(M) Previsions, Contingent Liabilities and Contingent Assets


(i} Provision Involving substantial degree of estimation in measurement is recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.


(ii) Contingent Liabilities are shown by way of notes to the Accounts in respect of obligations where, based on the evidence available, their existence al the Balance Sheet date is considered not probable.


(iii) A Contingent Asset is not recognized in the Accounts,


(N) Earnings Per Share


(i) Basic earnings per share is 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.


(ii) 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 are adjusted Tor the effects of all dilutive potential equity shares.


(O) Export Incentives


Export incentives are accounted for on the basis of export sales effected during the period on accrual basis.


(P) Leases


Assets taken on lease, under which all the risks and rewards of ownership are effectively retained by the lessor are classified as operating lease. Operating Lease payments are recognized as an expense in the Profit & Loss Account on a straight Ii ne basis over the lease term.


(Q) Material Even is occurring after Balance- Sheet date are taken into consideration.



CIN: U67190WB2003PTC096617. Trading in Commodities is done through our Group Company Dynamic Commodities Pvt. Ltd. The company is also engaged in Proprietory Trading apart from Client Business.
“2019 © COPYRIGHT DYNAMIC EQUITIES PVT. LTD.”

Disclaimer: There is no guarantee of profits or no exceptions from losses. The investment advice provided are solely the personal views of the research team. You are advised to rely on your own judgment while making investment / Trading decisions. Past performance is not an indicator of future returns. Investment is subject to market risks. You should read and understand the Risk Disclosure Documents before trading/Investing.

Disclosure: We, Dynamic Equities Private Limited are also engaged in Proprietory Trading apart from Client Business. In case of any complaints/grievances, clients may write to us at compliance@dynamiclevels.com

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