అకౌంట్స్ గమనికలుPremium Capital Markets & Investments Ltd.

Mar 31, 2025

I. Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result
of a past event, it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
When the Company expects some or all of a provision to be reimbursed, the reimbursement is
recognized as a separate asset, but only when the reimbursement is virtually certain. The expense
relating to a provision is presented in the statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax
rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the
increase in the provision due to the passage of time is recognized as a finance cost.

J. Fair value measurement

The Company measures financial instruments such as derivatives and certain non-financial assets
such as biological assets, at fair value at each balance sheet date. 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. The fair value measurement is based on the presumption that the
transaction to sell the asset or transfer the liability takes place either:

In the principal market for the asset or liability, or In the absence of a principal market, In the most
advantageous market for the asset or liability. The principal or the most advantageous market must
be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their economic
best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to
generate economic benefits by using the asset in its highest and best use or by selling it to another
market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximizing the use of relevant observable inputs
and minimizing the use of unobservable inputs.

For assets and liabilities that are recognized in the financial statements on a recurring basis, the
Company determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorization (based on the lowest level input that is significant to the fair value measurement as a
whole) at the end of each reporting period.

K. Financial Instrument

(I) Classification

The Company classifies its financial assets in the following measurement categories:

• those to be measured subsequently at fair value through profit or loss, and

• those measured at amortized cost.

The classification depends on the Company''s business model for managing the financial assets and
the contractual terms of the cash flows. For assets measured at fair value, gains and losses are
recorded in profit or loss. For investments in equity instruments in subsidiaries, associates and jointly
control entities these are carried at cost less diminution, if any, in these financial statements. The
Company reclassifies debt investments when and only when its business model for managing those
assets changes.

(II) Measurement
Initial recognition

The Company recognizes financial assets and financial liabilities when it becomes a party to the
contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value
on initial recognition, except for trade receivables which are initially measured at transaction price.
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 added to the fair value on
initial recognition. Regular way purchase and sale of financial assets are accounted for at trade date.

Subsequent measurement

(i) Financial assets carried at amortized cost:

A financial asset is subsequently measured at amortized 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.

(ii) Financial assets at fair value through other comprehensive income:

A financial asset is subsequently measured at fair value through other comprehensive income 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 of principal and interest on the principal amount outstanding.
The Company has made an irrevocable election for its investments which are classified as equity
instruments to present the subsequent changes in fair value in other comprehensive income based on
its business model.

(iii) Financial assets at fair value through profit or loss

A financial asset, which is not classified in any of the above categories, is subsequently fair valued
through profit or loss.

(iv) Financial liabilities

Financial liabilities are subsequently carried at amortized cost using the effective interest method,
except for contingent consideration recognized in a business combination, which is subsequently
measured at fair value through profit or loss. 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.

(v) Investment in subsidiaries

Investment in subsidiaries is carried at cost in the separate financial statements.

(III) Impairment of financial assets

The Company assesses on a forward-looking basis the expected credit loss associated with its assets
carried at amortized cost. The impairment methodology applied depends on whether there has been a
significant increase in credit risk.

(IV) De recognition of financial assets

A financial asset is derecognized only when

• The Company has transferred the rights to receive cash flows from the financial asset or

• Retains the contractual rights to receive the cash flows of the financial asset but assumes a
contractual obligation to pay cash flows to one or more recipients

Where the Company has transferred an asset, the Company evaluates whether it has transferred
substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is
derecognized. Where the Company has not transferred substantially all risks and rewards of ownership
of financial asset, the financial asset is not derecognized.

Where the Company has neither transferred a financial asset nor retains substantially all risks and
rewards of ownership of the financial asset, the financial asset is derecognized if the Company has not
retained control of the financial asset. Where the Company retains control of the financial asset, the asset
is continued to be recognized to the extent of continuing involvement in the financial asset.

(V) Financial Liabilities

Financial liabilities are classified, at initial recognition, as loans and borrowings, payables, as
appropriate. The Company''s financial liabilities include trade and other payables, loans and
borrowings including bank overdrafts. For trade and other payables maturing within one year from
the balance sheet date, the carrying amounts approximate fair value due to short term maturity of
these instruments.

(VI) Income recognition
Interest Income :

For all debt instruments measured at amortized cost, interest income is recorded using the effective
interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash payments or
receipts over the expected life of the financial instrument or a shorter period, where appropriate, to
the gross carrying amount of the financial asset or to the amortized cost of a financial liability. When
calculating the effective interest rate, the company estimates the expected cash flows by considering
all the contractual terms of the financial instrument (for example, prepayment, extension, call and
similar options) but does not consider the expected credit losses. Interest income is included in
finance income in the statement of profit and loss

Dividend Income :

Dividends are recognized in profit or loss only when the right to receive the payments is established,
it is probable that the economic benefits associated with the dividend will flow to the Company, and
the amount of the dividend can be measured reliably, which is generally when the shareholders
approve the dividend.

M. Borrowings

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortized
cost using the effective interest rate method. Gains and losses are recognized in profit or loss when the
liabilities are derecognized as well as the effective interest rate amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or
costs that are an integral part of the effective interest rate. The effective interest rate amortization is included
as finance cost in the statement of profit and loss.

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Mar 31, 2014

1. The Company has not made provision for Income tax for this year due to losses (Provision Year Rs. NIL) under the income Tax Act, 1961, as per expert advice taken in this respect.

2. In the opinion of Board of Directors, the Current Assets i.e. Sundry Debtors Loans and Advances and Other Current Assets as at the end of year 31.03.2014 have a value on realization in the ordinary course of the business at least equal to the amount at which these are stated.

3. Contingent Liabilities not provided for:

Income Tax demand for the A.Y. 1996-97 against which an appeal was pending before the CIT (Appeals)- II, Indore, relief in assessed Income of Rs.56.45 Lacs is granted by the Hon'ble CIT(Appeals)-II which reduces our tax demand approximately to Rs.91.18 Lacs from Rs. 171.85 Lacs and for the balance demand the company has also filed appeal before the Hon'ble ITAT Indore bench and the same is pending for decision,

4. Previous year figures are regrouped /rearrange wherever necessary to confirm with current year classification. Amount rounded off to nearest of Rupee.

5. Debit and Credit Balance of Parties are subject to confirmation from concerned parties.

6. Bank Accounts are subject to reconciliation.

7. Provision for Deferred Tax Assets not made as company is running in Losses and there is no virtual certainty that in near future sufficient taxable income will be available.

8. During the year under the company has provided Rs, 119.61 lacs towards bad and doubtful debtors and loans and advances.

9. During the year the company has written off Rs.5.73 lacs towards bad debts and written back Rs.5.70 lacs from Trade Payables and the net amount after set off Rs. 0.03 lacs has been debited to Sundry balances written off account.

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Mar 31, 2013

1. Unreconciled Inter Branch reconciliation Account Rs.8165 (Dr.) NSE Account Rs. 19175 (Dr.) for earlier years grouped under the head of account Advances

2. In the opinion of Board of Directors, the Current Assets i.e. Sundry Debtors Loans and Advances and Other Current Assets as at the end of year 31.03.2013 have a value on realisation in the ordinary course of the business at least equal to the amount at which these are stated.

3. Contingent Liabilities not provided for:

Income Tax demand for the A.Y. 1996-97 against which an appeal was pending before the C1T (Appeals)- II, Indore, relief in assessed Income of Rs.56.45 Lacs is granted by the Hon''ble CIT( Appeals)-H which reduces our tax demand approximately to Rs.91.18 Lacs from Rs. 171.85 Lacs and for the balance demand the company has also filed appeal before the Hon''ble ITAT Indore bench and the same is pending for decision.

4. Previous year figures are regrouped /rearrange wherever necessary to confirm with current year classifica- tion. Amount rounded off to nearest of Rupee.

5. Debit and Credit Balance of Parties are subject to conformation from concerned parties.

6. Provision for Deferred Tax Assets not made as company is running in Losses and there is no virtual cer- tainty that in near future sufficient taxable income will be available.

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Mar 31, 2012

1. Unreconciled Inter Branch reconciliation Account Rs.8165 (Dr.) NSE Account Rs. 19175 (Dr.) for earlier years grouped under the head of account Advances

2. In the opinion of Board of Directors' the Current Assets i.e. Sundry Debtors Loans and Advances and Other Current Assets as at the end of year 31.03 !2012 have a value on realisation in the ordinary course of the business at least equal to the amount at which these are stated.

3. Contingent Liabilities not provided for:

Income Tax demand for the A.Y. 1996-97 against which an appeal was pending before the CIT (Appeals)- II' Indore' relief in assessed Income of Rs.56.45 Lacs is granted by the Hon'ble CIT( Appeals)-II which reduces our tax demand approximately to Rs.91.18 Lacs from Rs. 171.85 Lacs and for the balance demand the company has also filed appeal before the Hon'ble ITAT Indore bench and the same is pending for decision.

4. Previous year figures are regrouped /rearrange wherever necessary to confirm with current year classifica- tion. Amount rounded off to nearest of Rupee.

5. Debit and Credit Balance of Parties are subject to conformation from concerned parties.

6. Provision for Deferred Tax Assets not made as company is running in Losses and there is no virtual cer- tainty that in near future sufficient taxable income will be available.

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Mar 31, 2010

1. The Company has not made provision for Income tax for this year due to losses (Previous Year Rs. NIL) under the income Tax Act, 1961, as per expert advice taken in this respect.

2. Unreconciled Inter Branch reconciliation Account Rs. 8165 (Dr.) and NSE Accounts Rs. 19175 (Dr.) for earlier years grouped under the head of account Advances.

3. In the opinion of Board of Directors, the Current Assets i.e. Sundry Debtors Loans and Advances and Other Current Assets as at the end of the year 31.03.2010 have a value on realisation in the ordinary course of the business at least equal to the amount at which these are stated.

4. Contingent Liabilities not provided for :

1) Income Tax Liability of Rs. 1,71,85,222/- for the Assessment Year 1996-97, against which an appeal is pending before CIT (Appeals)-I, Indore.

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PREMIUM CAPITAL MARKET & INVESTMENTS LIMITED

Registered Office : 401, STARLIT TOWER, 29, Y.N. ROAD, INDORE 452 003