Premium Capital Markets & Investments Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

2.2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Basis of Preparation

The Standalone financial statements of the Company have been prepared in accordance with Indian
Accounting Standards ("Ind AS") as notified by Ministry of Corporate affairs pursuant to section 133 of
the Companies Act, 2013 read with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015
and Companies (Indian Accounting Standards) Amendment Rules, 2016.

The financial statements have been prepared on a historical cost basis, except for the assets and
liabilities that require measurement at fair value in accordance with Ind AS. The financial
statements are presented in Indian Rupees , except otherwise indicated.

B. Key accounting estimates and judgments

The preparation and presentation of financial statements in conformity with Ind AS requires
management to make judgments, estimates and assumptions that affect the reported amounts of
assets and liabilities, the disclosure of contingent assets and liabilities on the date of the financial
statements and reported amounts of revenues and expenses during the period.

Although these estimates are based on the management''s best knowledge of current events and
actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a
material adjustment to the carrying amounts of assets or liabilities in future periods. Accounting
estimates could change from period to period. Any revision to accounting estimates is recognized
prospectively in the current and future periods, and if material, their effects are disclosed in the
financial statements. Actual results could differ from the estimates. Any difference between the actual
results and estimates are recognized in the period in which the results are known/materialize.
Information about critical judgments in applying accounting policies, as well as estimates and
assumptions that have the most significant effect to the carrying amounts of assets and liabilities
within the next financial year, are included in the following notes:

(i) Measurement of defined benefit obligations

(ii) Measurement and likelihood of occurrence of contingencies

(iii) Recognition of deferred tax assets

(iv) Impairment of intangible assets

(v) Determination of fair value of biological assets

C. Current / Noncurrent Classification

All assets and liabilities have been classified and disclosed as current or non-current as per the
Company''s normal operating cycle and other criteria set out in division II of Schedule III of the
Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets
for processing and their realization in cash and cash equivalents, the Company has ascertained its
operating cycle as up to twelve months for the purpose of current or non-current classification of assets
and liabilities

D. Property, plant and equipment

Property, plant and equipment are stated at historical cost less accumulated depreciation and
impairment losses, if any. Cost comprises of purchase price net of trade discounts and rebates, non¬
refundable duties and taxes, any directly attributable cost of bringing the asset to its working
condition for its intended use. Cost also includes borrowing cost directly attributable to acquisition /
construction of a qualifying asset up to the date the asset is ready for its intended use. Subsequent
expenditure on fixed assets is capitalized only if such expenditure results into an increase in the future
benefits from such asset beyond its previously assessed standard of performance.

Depreciation methods, estimated useful lives and residual value

Depreciation is provided on a pro-rata basis on the straight line method over the estimated useful
lives of assets, based on internal assessment and independent technical evaluation done by the
Management expert which are equal to, except in case of Plant and Machinery, Furniture and Fixtures
and Vehicles where useful life is lower than life prescribed under Schedule II to the Companies Act,
2013.

Residual Value of an assets shall not be more than five per cent of the original cost of the assets.

For the purpose of Companies Act 2013 the carrying amount of the assets as on that date retaining the
residual value may be recognized in the opening balance of retain earning where the remaining
useful of an assets is nil. Hence no depreciation will be charge in that case.

The asset''s useful lives and methods of depreciation are reviewed at the end of each reporting period
and adjusted prospectively, if appropriate.

An asset''s carrying amount is written down immediately to its recoverable amount if the asset''s
carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing net disposal proceeds with carrying
amount of the asset.

These are included in profit or loss within other income. Assets costing less than or equal to Rs. 5,000
are fully depreciated pro-rata from date of acquisition.

E. Revenue recognition

An entity shall account for a contract with a customer (in case of transfer of goods and services) that
only when all of the following criteria are met:

(a) the parties to the contract have approved the contract (in writing, orally or in accordance with
other customary business practices) and are committed to perform their respective obligations

(b) the entity can identify each party''s rights regarding the goods or services to be transferred;

(c) the entity can identify the payment terms for the goods or services to be transferred;

(d) the contract has commercial substance (ie the risk, timing or amount of the entity''s future cash
flows is expected to change as a result of the contract);

(e) it is probable that the entity will collect the consideration to which it will be entitled in exchange
for the goods or services that will be transferred to the customer. In evaluating whether
collectability of an amount of consideration is probable, an entity shall consider only the
customer''s ability and intention to pay that amount of consideration when it is due. The amount
of consideration to which the entity will be entitled may be less than the price stated in the
contract if the consideration is variable because the entity may offer the customer a price
concession

F. Employee benefits

Short term employee benefits

All employee benefits which fall due wholly within twelve months after the end of the period in
which employee renders the related service are classified as short-term employee benefits.

Undiscounted value of short term benefits such as salaries, wages, bonus and ex-gratia are recognized
in the period in which the employee renders the related service.

G. Taxes

Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or
paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that
are enacted or substantively enacted at the reporting date.

Current income tax relating to items recognized directly in equity is recognized in equity and not in the
statement of profit and loss. Management periodically evaluates positions taken in the tax returns with
respect to situations in which applicable tax regulations are subject to interpretation and establishes
provisions where appropriate.

Deferred tax

Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been
enacted or substantively enacted by the Balance Sheet date and are expected to apply to taxable
income in the years in which those temporary differences are expected to be recovered or settled. The
effect of changes in tax rates on deferred income tax assets and liabilities is recognized as income or
expense in the period that includes the enactment or the substantive enactment date. A deferred
income tax asset is recognized to the extent that it is probable that future taxable profit will be
available against which the deductible temporary differences and tax losses can be utilized. Deferred
income taxes are not provided on the undistributed earnings of subsidiaries and branches where it is
expected that the earnings of the subsidiary or branch will not be distributed in the foreseeable future.
The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable
right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize
the asset and settle the liability simultaneously

H. Earnings Per Share

Earnings per share (EPS) is calculated by dividing the net profit for the year attributable to the equity
shareholders by weighted average number of equity shares outstanding during the year. For the
purpose of calculating diluted earnings per share, the net profit for the period attributable to equity
shareholders and weighted average number of shares outstanding during the period is adjusted for the
effects of all diluted potential equity shares.

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Mar 31, 2014

A. INCOME RECOGNITION:

1. Dividend Income accounted for on receipt basis.

2. Interest and other income are account for on accrual basis expect for not performing assets.

B. EXPENSES:

It is the policy of the company to provide all the known expenses on accrual basis expect as state else- where in the notes to the accounts.

C. FIXED ASSETS:

Fixed Assets are stated at Historical cost less depreciation.

D. DEPRECIATION:

Depreciation on Fixed assets has been provided on straight line method on Pro-rata basis as per the rates prescribed in schedule XIV on the Companies Act, 1956.

E. VALUATION OF INVESTMENTS:

Unquoted Investments are valued at. cost.

F. BORROWING COSTS:

Borrowing cost that are directly attributable to the acquisition of qualifying assets are capitalized for the period until the asset is ready for its intended use. Other borrowing costs are recognized as an expense in the period in which they are incurred. No. borrowing costs were eligible for capitalization during the financial year.

G. RETIREMENT BENEFITS:

The company has not provided for Retirement benefits as in the opinion of management provision of provident fund, Gratuity, Leave encashment are not applicable to the company.

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Mar 31, 2010

A. INCOME RECOGNITION:

1. Dividend Income accounted for on receipt basis.

2. Interest and other income are accounted for on accrual basis except for not performing assets,

B. EXPENSES:

It is the policy of the company to provide all the known expenses on accrual basis except as state elsewhere in the notes to the accounts.

C. FIXED ASSETS :

Fixed Assets are stated at Historical cost less depreciation.

D. DEPRECIATION:

Depreciation on Fixed assets has been provided on straight line method on Pro-rata basis as per the rates prescribed in schedule XIV to the Companies Act 1956.

E. VALUATION OF INVESTMENTS :

(a) Long term Investments are valued at cost. However the management is of the view thai the shortfall of Rs. 25.71, Lacs between the aggregate book value of long term investment in quoted share and aggregate market value as at 31st March. 2010 is temporary & in view of management provision of Rs. 8.51 Lacs is sufficient.

Current investment are valued at cost and no further provision of Rs. 4,89,727/- has been made for diminution in the market value as at the end of year.

E AMORTISATION POLICY:

Public Issue Expenses Preliminary & pre-operative expenses are amortise over a Period of 10 years on pro-rata Basis.

G. BORROWING COSTS:

Borrowing cost that are directly attributable to the acquisition of qualifying assets are capitalised for the period until the asset is ready for its intended use. Other borrowing costs are recognised as an expense in the period in which they are incurred. No borrowing costs were eligible for capitalisation during the financial year.

H. RETIREMENT BENEFITS:

The company has not provided for Retirement benefits as in the opinion of management provisions of provident fund, Gratuity, Leave encashment are not applicable to the company.