Accounting Policies of Peeti Securities Ltd. Company

Mar 31, 2024

3. Significant accounting policies

a. Financial instruments
Non-derivative financial instruments

All financial instruments are recognized initially at fair value. Transaction costs that are attributable to
the acquisition of the financial asset (other than financial assets recorded at fair value through profit or
loss) are included in the fair value of the financial assets. Purchase or sales of financial assets that
require delivery of assets within a time frame established by regulation or convention in the market¬
place (regular way trade) are recognized on trade date. While loans and borrowings and payable are
recognized net of directly attributable transactions costs.

For the purpose of subsequent measurement, financial instruments of the Company are classified in
the following categories: non-derivative financial assets at amortized cost; non derivative financial
liabilities at amortized cost.

The classification of financial instruments depends on the objective of the business model for which it
is held. Management determines the classification of its financial instruments at initial recognition

Non- derivative financial assets

Financial assets are initially measured at fair value plus transaction costs and subsequently carried at
amortized cost using the effective interest method, less any impairment loss.

The company''s financial assets includes cash and cash equivalents, employee and other advances,
trade receivables and eligible current and non-current assets.

Non-derivative financial liabilities

Financial liabilities at amortized cost are initially recognized at fair value, and subsequently carried at
amortized cost using the effective interest method.

The company has the following financial liabilities: loans and borrowings, trade and other payables
including deposits collected from various parties.

Offsetting

Financial assets and financial liabilities are offset, and the net amount presented in the balance sheet
when, and only when, the Company currently has a legally enforceable right to set off the amounts and
it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.

b. Property, plant and equipment

i. Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalized borrowing
costs, less accumulated depreciation, and accumulated impairment losses, if any

Cost of an item of property, plant and equipment comprises its purchase price, including import duties
and non-refundable purchase taxes, after deducting trade discounts and rebates, any directly attribut¬
able cost of bringing the item to its working condition for its intended use and estimated costs of
dismantling and removing the item and restoring the site on which it is located.

The cost of a self-constructed item of property, plant and equipment comprises the cost of materials
and direct labor, any other costs directly attributable to bringing the item to working condition for its

intended use, and estimated costs of dismantling and removing the item and restoring the site on
which it is located.

If significant parts of an item of property, plant and equipment have different useful lives, then they are
accounted for as separate items (major components) of property, plant, and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its
property, plant and equipment recognised as at 1 April 2016, measured as per the previous GAAP, and
use that carrying value as the deemed cost of such property, plant and equipment.

ii. Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associ¬
ated with the expenditure will flow to the Company.

iii. Depreciation

The estimated useful lives of items of property, plant and equipment for the current and comparative
periods are as follows:

Depreciation method, useful lives and residual values are reviewed at each financial year-end and
adjusted if appropriate. Based on technical evaluation and consequent advice, the management
believes that its estimates of useful lives as given above best represent the period over which
management expects to use these assets.

Depreciation on additions (disposals) is provided on a pro-rata basis i.e. from (upto) the date on
which asset is ready for use (disposed of).

c. Inventories

Inventories are measured at the lower of cost and net realisable value. The cost of inventories is
based on the first-in first-out formula, and includes expenditure incurred in acquiring the inventories,
production or conversion costs and other costs incurred in bringing them to their present location and
condition.

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated
costs of completion and selling expenses.

d. Investments:

Investments are valued at cost less provision for permanent diminution in value of such investments.
Investments are carried at lower of cost and fair value.

e. Revenue recognition

i. Revenue is recognized on sale of grey cloth and finished cloth on dispatch of goods from the
factory. Sales are recorded net of rebate, trade discounts and returns.

ii. Dividend is accounted on an accrual basis when the right to receive the dividend is established.

iii. Interest income on loans & advances is recognized in the profit & loss account as it accrues.

f. Employee benefits

i. Short-term employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are
expensed as the related service is provided. A liability is recognised for the amount expected to
be paid e.g., under short-term cash bonus, if the Company has a present legal or constructive
obligation to pay this amount as a result of past service provided by the employee, and the
amount of obligation can be estimated reliably.

ii. Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan.
The Company''s net obligation in respect of defined benefit plans is calculated separately for
each plan by estimating the amount of future benefit that employees have earned in the current
and prior periods and discounting that amount.

The calculation of defined benefit obligation is performed annually by a qualified actuary using
the projected unit credit method. When the calculation results in a potential asset for the Company,
the recognised asset is limited to the present value of economic benefits available in the form of
any future refunds from the plan or reductions in future contributions to the plan (''the asset
ceiling''). In order to calculate the present value of economic benefits, consideration is given to
any minimum funding requirements.

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses,
the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding
interest), are recognised in OCI. The Company determines the net interest expense (income)
on the net defined benefit liability (asset) for the period by applying the discount rate used to
measure the defined benefit obligation at the beginning of the annual period to the then-net
defined benefit liability (asset), taking into account any changes in the net defined benefit liability
(asset) during the period as a result of contributions and benefit payments. Net interest expense
and other expenses related to defined benefit plans are recognised in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in
benefit that relates to past service (''past service cost'' or ''past service gain'') or the gain or loss
on curtailment is recognised immediately in profit or loss. The Company recognises gains and
losses on the settlement of a defined benefit plan when the settlement occurs.

g. Income tax

Income tax comprises of current and deferred tax. It is recognized in profit or loss except to the extent
that it relates to an item recognized directly in equity or in other comprehensive income.

i. Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for
the year and any adjustment to the tax payable or receivable in respect of previous years. The
amount of current tax reflects the best estimate of the tax amount expected to be paid or received
after considering the uncertainty, if any, related to income taxes. It is measured using tax rates
(and tax laws) enacted or substantively enacted by the reporting date.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right
to set off the recognised amounts, and it is intended to realise the asset and settle the liability
on a net basis or simultaneously.

ii. Deferred tax

Deferred tax is recognized in respect of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the corresponding amounts used for
taxation purposes. Deferred tax is also recognized in respect of carried forward tax losses and
tax credits.

Deferred tax assets are recognized to the extent that it is probable that future taxable profits will
be available against which they can be used. The existence of unused tax losses is strong
evidence that future taxable profit may not be available. Therefore, in case of a history of recent
losses, the Company recognizes a deferred tax asset only to the extent that it has sufficient
taxable temporary differences or there is convincing other evidence that sufficient taxable profit
will be available against which such deferred tax asset can be realised. Deferred tax assets -
unrecognised or recognized, are reviewed at each reporting date, and are recognised/ reduced
to the extent that it is probable/ no longer probable respectively that the related tax benefit will
be realised.

Deferred tax is measured at the tax rates that are expected to apply to the period when the
asset is realised or the liability is settled, based on the laws that have been enacted or
substantively enacted by the reporting date.

The measurement of deferred tax reflects the tax consequences that would follow from the
manner in which the Company expects, at the reporting date, to recover or settle the carrying
amount of its assets and liabilities.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current
tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the
same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and
assets on a net basis, or their tax assets and liabilities will be realised simultaneously.

iii. Minimum Alternate Tax (MAT)

Minimum Alternative Tax ("MAT") under the provisions of the Income-tax Act, 1961 is recognised
as current tax in the statement of profit and loss. The credit available under the Act in respect of
MAT paid is recognised as an asset only when and to the extent there is convincing evidence
that the Company will pay normal income tax during the period for which the MAT credit can be
carried forward for set-off against the normal tax liability. MAT credit recognised as an asset is
reviewed at each balance sheet date and written down to the extent the aforesaid convincing
evidence no longer exists.

h. Segment reporting

The Board of Directors assess the financial performance of the Company and make strategic decisions.
The Company has only one reportable segment i.e., Trading in Textile

i. Earnings per share

The basic earnings per share ("EPS") for the year is computed by dividing the net profit/ (loss) after
tax for the year attributable to equity shareholders by the weighted average number of equity shares
outstanding during the year. The Company has no potentially dilutive equity shares.

(b) Rights, preferences and restrictions attached to equity shares

The Company has a single class of equity shares having par value of Rs 10 per share. Accordingly,
all equity shares rank equally with regard to dividend and share in the Company''s residual assets
after distribution of all preferential amounts, if any. The equity shareholders are entitled to receive
dividend as declared from time to time. The voting rights of an equity shareholder are in proportion
to its share of the paid-up equity capital of the Company. Voting rights cannot be exercised in respect
of shares on which any call or other sums presently payable have not been paid.

On winding up of the Company, the holders of equity shares will be entitled to receive the residual
assets of the Company, remaining after distribution of all preferential amounts in proportion to the
number of equity shares held.

(B) Rights, preferences and restrictions attached to equity shares

The company has a single class of equity shares. Accordingly, all equity shares rank equally with
regard to dividends and share in the company''s residual assets on winding up. The equity shares
are entitled to receive dividend as declared from time to time. The voting rights of an equity shareholder
on a poll (not on show of hands) are in proportion to his/its share of the paid-up equity share capital
of the company.

h._

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Mar 31, 2014

A) Accounting sumption :

The Accoun ha e been prepared under the historical cost convention on the basis of a going concern, with revenues recognized and expenses accounted on their accrual, including provision/adjustments for committed obligations and amounts determined as payable or receiable during the year.

b) Fixed Assets and Depreciation :

I) Fixed Assets are stated at historical cost less accumulated depreciation. The cost of the sets includes Purchase price, freight, installation cost, duties, taxes and other direct incidental expenses for bringing the assets to working condition.

ii) Depreciation has been provided on straight-line method on pro-rata basis at the rates prescribed in Schedule XIV of the Companies Act, 1956.

c) Inventories.

Finished goods are valued at lower of Cost or Estimated Net realizable Value. The Cost is based on the ''First in First out method''.

d) Revenue Recognition:

i) Revenue is recognized on sale of grey cloth and finished cloth on dispatch of goods from the factory. Sales are recorded net of rebate, trade discounts and returns.

ii) Dividend is accounted on an accrual basis when the right to receive the dividend is established.

iii) Interest income on loans & advances is recognized in the profit & loss account as it accrues.

e) Retirement Benefits:

Gratuity: Provision is made towards retirement gratuity for the Employees who have completed 5 years of service and those in the opinion of the board are expected to complete 5 years of service in the future.

f) Income Tax:

Provision for current tax is made on the basis of Estimated Taxable Income of the Current Accounting Year in accordance with Income Tax Act, 1961. The Deferred Tax liability/asset for timing difference between the book and tax profits for the year is accounted for, based on current tax Rates. Deferred Tax assets are recognized and carried forward only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such asset items can be realized

g) Investments:

Long term investments are carried at cost less provision for permanent diminution in value of such investments. Current investments are carried at lower of cost and fair value. Unit of mutual funds though held as current investments and are valued at cost.

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Mar 31, 2013

A) Accounting Assumption :

The Accounts have been prepared under the historical cost convention on the basis of a going concern, with revenues recognized and expenses accounted on their accrual, including provision/adjustments for committed obligations and amounts determined as payable or receivable during the year.

) Fixed Assets and Depreciation :

i) Fixed Assets are stated at historical cost less accumulated depreciation. The cost of the Assets includes Purchase price, freight, installation cost, duties, taxes and other direct incidental expenses for bringing the assets to working condition.

ii) Depreciation has been provided on straight-line method on pro-rata basis at the rates prescribed in Schedule XIV of the Companies Act, 1956.

c) Inventories.

Finished goods are valued at lower of Cost or Estimated Net realizable Value. The Cost is based on the ''First in First out method''.

d) Revenue Recognition :

i) Revenue is recognized on sale of grey cloth and finished cloth on dispatch of goods from the

factory. Sales are recorded net of rebate, trade discounts and returns. ii) Dividend is accounted on an accrual basis when the right to receive the dividend is established. iii) Interest income on loans & advances is recognized in the profit & loss account as it accrues.

e) Retirement Benefits :

Gratuity: Provision is made towards retirement gratuity for the Employees who have completed 5 years of service and those in the opinion of the board are expected to complete 5 years of service in the future.

f) Income Tax:

Provision for current tax is made on the basis of Estimated Taxable Income of the Current Accounting Year in accordance with Income Tax Act, 1961. The Deferred Tax liability/asset for timing difference between the book and tax profits for the year is accounted for, based on current tax Rates. Deferred Tax assets are recognized and carried forward only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such asset items can be realized

g) Investments:

Long term investments are carried at cost less provision for permanent diminution in value of such investments. Current investments are carried at lower of cost and fair value. Unit of mutual funds though held as current investments and are valued at cost.

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Mar 31, 2011

A) Accounting Assumption:

The Accounts have been prepared under the historical cost convention on the basis of a going concern, with revenues recognized and expenses accounted on their accrual including provision/adjustments for committed obligations and amounts determined as payable or receivable during the year.

b) Fixed Assets and Depreciation

i) Fixed Assets are stated at historical cost less accumulated depreciation, The cost of the Assets includes Purchase price, freight, installation cost, duties, taxes and other direct incidental expenses for bringing the assets to working condition.

ii) Depreciation has been provided on straight-line method on pro-rata basis at the rates prescribed in Schedule XIV of the Companies Act, 1956.

c) Inventories.

Stock of Shares is valued at lower of Cost or Estimated Net realizable Value. Incase realizable value is not ascertainable due to non-availability of Quotation in the Stock Markets, the value of such Shares is adopted at Rs.0.10 np per Share.

Finished goods are valued at lower of Cost or Estimated Net realizable Value. The Cost is based on the 'First in First out method'.

d) Revenue Recognition:

i) Revenue is recognized on sale of yam, grey cloth and finished cloth on dispatch of goods from the factory. Sales are recorded net of rebate, trade discounts and returns but include excise duty

ii) Dividend is accounted on an accrual basis when the right to receive the dividend is established

iii) Interest income on loans advances is recognized in the profit & loss account as it accrues.

e) Retirement Benefits :

Gratuity: Provision is made towards retirement gratuity for the Employees who have completed 5 years of service and those in the opinion of the board are expected to complete 5 years of service in the future.

f) Income Tax:

Provision for current tax is made on the basis of Estimated Taxable Income of the Current Accounting Year in accordance with Income Tax Act. 1961. The Deferred Tax liability asset for timing difference between the book and tax profits for the year is accounted for. based on current tax Bates. Deferred Tax assets are recognized and carried forward only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such asset items can be realized

g) Investments:

Long term investments are carried at cost less provision for permanent diminution in value of such investments. Current investments are carried at lower of cost and fair value Unit of mutual funds though held as current investments and are valued at cost.

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Mar 31, 2010

A) Accounting Assumption:

The Accounts have been prepared under the historical cost convention on the basis of a going concern, with revenues recognized and expenses accounted on their accrual, including provision/adjustments for committed obligations and amounts determined as payable or receivable during the year.

b) Fixed Assets and Depreciation

i) Fixed Assets are stated at historical cost less accumulated depreciation. The cost of the Assets includes Purchase price, freight, installation cost, duties, taxes and other direct incidental expenses for bringing the assets to working condition.

ii) Depreciation has been provided on straight-line method on pro-rata basis at the rates prescribed in Schedule XIV of the Companies Act, 1956.

c) Inventories.

Stock of Shares is valued at lower of Cost or Estimated Net realizable Value. Incase realizable value is not ascertainable due to non-availability of Quotation in the Stock Markets, the value of such Shares is adopted at Rs.0.10 np per Share.

The Raw materials & Work in progress is valued at cost. Finished goods are valued at lower of Cost or Estimated Net realizable Value. The Cost is based on the First in First out method.

d) Revenue Recognition:

i) Revenue is recognized on sale of yarn, grey cloth and finished cloth on dispatch of goods from the factory. Sales arerecorded net of rebate, trade discounts and returns but include excise duty.

ii) Dividend is accounted on an accrual basis when the right to receive the dividend is established.

iii) Interest income on loans advances is recognized in the profit & loss account as it accrues.

e) Retirement Benefits :

Gratuity: Provision is made towards retirement gratuity for the Employees who have completed 5 years of service and those in the opinion of the board are expected to complete 5 years of service in the future.

f) Income Tax:

Provision for current tax is made, on the basis of Estimated Taxable Income of the Current Accounting Year in accordance with Income Tax Act, 1961. The Deferred Tax liability/ asset for timing difference between the book and tax profits for the year is accounted for, based on current tax Rates. Deferred Tax assets are recognized and carried forward only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such asset items can be realized

g) Investments:

Long term investments are carried at cost less provision for permanent diminution in value of such investments. Current investments are carried at lower of cost and fair value. Unit of mutual funds though held as current investments and are valued at cost.