NOTES ANNEXED TO AND FORMING PART OF FINANCIAL STATEMENTS

SIGNIFICANT ACCOUNTING POLICIES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2016

COMPANY OVERVIEW

Dhunseri Investments Limited having its Registered Office at "Dhunseri House", 4A Woodburn Park, Kolkata - 700 020 carries on the business of Investing in Shares and Securities and is registered as a Non-Banking Financial Company duly approved by the Reserve Bank of India and having registration No. N.05.06909.

1. SIGNIFICANT ACCOUNTING POLICIES :

1.1 BASIS OF brPARATION OF FINANCIAL STATEMENTS

The financial statements have been brpared in accordance with the Generally Accepted Accounting Principles in India under the historical cost convention on accrual basis. Pursuant to Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rule 2014, till the standards of accounting or any addendum thereto are brscribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been brpared to comply in all material aspects with accounting standards notified under Section 211(3C) of the Companies Act, 1956 [Companies (Accounting Standards) Rules 2006, as amended] and other relevant provisions of the Companies Act, 2013. The Company follows the prudential norms issued by the Reserve Bank of India (as amended) for Asset Classification, Income recognition and provision for bad and doubtful debts in respect of Loans granted / Investments made by it.

All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013.

1.2 USE OF ESTIMATES

The Financial Statements are brpared in confirmity with the Generally Accepted Accounting Principles (GAAP) in India. These principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

1.3 FIXED ASSETS

Fixed Assets are stated at cost less accumulated debrciation. Cost includes expenditure incurred in the acquisition and construction/installation and other related expenses.

1.4 DEbrCIATION

Debrciation on fixed assets has been provided on Straight-Line Method as per the useful life and rate brscribed in Schedule II to the Companies Act, 2013. Leasehold land is amortised over effective period of Lease.

1.5 CASH FLOW STATEMENT

Cash flows are reported using the indirect method, brscribed in Accounting Standard-3 whereby profit/ (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from operating, financing and investing activities of the company are segregated based on the available information.

1.6 INVESTMENTS

Long Term Investments are stated at cost. Diminution in value thereof as determined which are not temporary in nature are adjusted therefrom and charged to revenue. Current Investments are valued at cost or net realizable value, whichever is lower.

1.7 TAXES ON INCOME

i) Current Tax is determined in accordance with the provision of Income Tax Act, 1961.

ii) Deferred Tax has been recognised for all timing differences, subject to consideration of prudence in respect of Deferred Tax Assets

iii) Tax credit is recognised in respect of Minimum Alternate Tax (MAT) as per the provisions of section 115JAA of the Income Tax Act, 1961 based on the convincing evidence that the Company will pay normal Income-tax within statutory time frame and is reviewed at each Balance Sheet date.

1.8 I NVENTORIES

Inventories of Shares and Securities are valued at cost or net realizable value, whichever is lower. The Cost is calculated on FIFO basis.

1.9 EMPLOYEE BENEFITS

Short term benefits are charged off at the undiscounted amount in the year in which the related service is rendered.Liabilities in respect of Defined Benefits plans namely retirement gratuities and encashment of unavailed leave are unfunded and calculated by an independent actuary at the year-end and provided for. Actuarial gains/ losses are recognised in the statement.

1.10 REVENUE RECOGNITION

i) Profit/(Loss) on sale of investments is taken to Profit and Loss Account.

ii) Dividend income is accounted for as and when right to receive dividend is established.

iii) Interest Income is recognised on accrual basis.

iv) Lease rent is recognised on accrual basis.

2. Amalgamation of Plenty Valley Intra Limited with the Company

Pursuant to the Scheme of Amalgamation approved by the shareholders and sanctioned by the Hon'ble High Court at Calcutta on 29th July, 2015, 625.000 Equity Shares of Rs. 10/- each fully paid up and ranking pari-passu with the existing Equity Shares were pending to be issued by the Company to the ordinary shareholders of Plenty Valley Intra Limited (PVIL) in the ratio of 1 (one) Equity Share of Rs. 10/- each of the Company for every 8 (eight) Equity Share of Rs. 10/- each fully paid-up held in PVIL and was shown under Share Capital Suspense. Such Shares has been alloted to the Ordinary Shareholders of PVIL.

3. Based on information from vendors / service providers regarding their status under Micro, Small and Medium Enterprises Development Act, 2006 disclosures as required under section 22 of the said act are as follows :

a. The Principal amount and the interest due thereon remaining unpaid to any supplier as at 31.03.2016 is Nil (Previous Year Nil);

b. No interest was paid by the company in terms of section 16 of MSMED Act during the year;

c. There was no interest for delay in making payment beyond the appointed day;

d. There is no interest accrued and remaining unpaid beyond the appointed day;

e. No interest is remaining due and payable even in the succeeding year, until such date when the interest dues as above are actually paid to Micro, Small and Medium Enterprises for the purpose of disallowance as a deductible expenditure under section 23 of the aforesaid Act.

4. Mat Credit of Earlier Years amounting to Rs. 631.35 Lakhs has been recognised in books in the current year which has been shown by way of adjustment in General Reserve.

5. Movement in Provisions held towards debrciation on Investments

The Company has made Provision for Diminution in the Value of Investment in Shares of Tectura Corporation for Rs. 75.74 Lacs in the Year 2014-2015.

There is no further movement in provision and it is held at Rs. 75.74 Lacs as on 31st March, 2016.

6. Asset Quality (Movement in NPAs)

The Company is not having any Non Performing Asset for Loans and Advances in the books as on 31st March, 2016.

7. Details of Exposure to Real Estate

The Company has not made any direct and indirect exposure to Real Estate in 2015-16.

8. Capital Commitment

Capital Commitment net of Advances NIL, (Previous Year - Nil).

9. No Penalty has been imposed by any of the regulator on the company during the year.

10. Previous year's figures have been re-grouped and re-arranged wherever considered necessary.

SUNIL OSWAL, FCA,

Partner

 Membership No. 071678

For and on behalf of

DHANDHANIA & ASSOCIATES

Chartered Accountants

Firm Regn. No. 316052E

For and on the behalf of the Board of Directors

P. K. LATH Chief Financial Officer

ADITI DHANUKA Company Secretary

C. K. DHANUKA Chairman

ARUNA DHANUKA Managing Director

ADARSH GARODIA Director

Place : Kolkata

Dated : The 27th day of May, 2016