1. CORPORATE INFORMATION
Amit Securities Limited ("the Company") was incorporated as a Public limited Company in 17th Day of June, 1992 with
the Registrar of Companies, Maharashtra. The company is primarily engaged in the trading of aluminium utensils and
investmensts in mutual funds, share, and securities.
2.1 BASIS OF PREPARATION AND PRESENTATION
The standalone financial statements have been prepared on a historical cost basis, except for the following assets and
liabilities which have been measured at fair value:
- Certain financial assets and liabilities (including derivative instruments) and
- Defined benefit plans - plan assets
The financial statements of the Company have been prepared to comply with the Indian Accounting standards (Tnd
AS'), including the rules notified under the relevant provisions of the Companies Act, 2013.
2.2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a) Property, Plant and Equipment (PPE)
i) Property, plant and equipment are stated at cost, net of recoverable taxes, trade discount and rebates less
accumulated depreciation and impairment losses, if any. Such cost includes purchase price, borrowing cost and
any cost directly attributable to bringing the assets to its working condition for its intended use, net charges on
foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.
ii) Subsequent costs are included in the asset7 s carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the entity and the cost can
be measured reliably. In the carrying amount of an item of PPE, the cost of replacing the part of such an item is
recognized when that cost is incurred if the recognition criteria are met. The carrying amount of those parts that
are replaced is derecognized in accordance with the derecognition principles.
iii) Depreciation on property, plant and equipment is provided using straight line method. Depreciation is provided
based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 . Each part of an item of
Property, Plant & Equipment with a cost that is significant in relation to total cost of the Machine is depreciated
separately, if its useful life is different than the life of the Machine.
iv) The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at
each financial year end and adjusted prospectively, if appropriate.
v) Gains or losses arising from derecognition of a property, plant and equipment are measured as the difference
between the net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of
Profit and Loss when the asset is derecognised.
b) Leases
i) Leases are classified as finance leases whenever the terms of the lease, transfers substantially all the risks and
rewards of ownership to the lessee. All other leases are classified as operating leases.
ii) Leased assets: Assets held under finance leases are initially recognised as assets of the Company at their fair value
at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding
liability to the lessor is included in the balance sheet as a finance lease obligation.
iii) Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a
constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in
Statement of Profit and Loss, unless they are directly attributable to qualifying assets, in which case they are
capitalized. Contingent rentals are recognised as expenses in the periods in which they are incurred.
iv) A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the
Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the
estimated useful life of the asset and the lease term.
v) Operating lease payments are recognised as an expense in the Statement of Profit and Loss on a straight-line basis
over the lease term except where another systematic basis is more representative of time pattern in which
economic benefits from the leased assets are consumed.
c) Finance Cost
i) Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are
regarded as an adjustment to the interest cost. Borrowing costs directly attributable to the acquisition, construction
or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale
are capitalised as part of the cost of the asset. A qualifying asset is one that necessarily takes substantial period of
time to get ready for its intended use.
ii) Interest income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalisation.
iii) All other borrowing costs are expensed in the period in which they occur.
d) Inventories
i) Securities Shown as Inventories are valued scrip wise at Market Value of securities.
e) Impairment of non-financial assets - property, plant and equipment and intangible assets
i) The Company assesses at each reporting date as to whether there is any indication that any property, plant and
equipment and intangible assets or group of assets, called Cash Generating Units (CGU) may be impaired. If any
such indication exists the recoverable amount of an asset or CGU is estimated to determine the extent of
impairment, if any. When it is not possible to estimate the recoverable amount of an individual asset, the Company
estimates the recoverable amount of the CGU to which the asset belongs.
ii) An impairment loss is recognised in the Statement of Profit and Loss to the extent, asset's carrying amount exceeds
its recoverable amount. The recoverable amount is higher of an asset's fair value less cost of disposal and value in
use. Value in use is based on the estimated future cash flows, discounted to their present value using pre-tax
discount rate that reflects current market assessments of the time value of money and risk specific to the assets.
iii) The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of
recoverable amount.
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