Pan Electronics India Ltd. कंपली की लेखा नीति

Mar 31, 2025

SIGNIFICANT ACCOUNTING POLICIES

1. Use of Estimates

The preparation of financial statements in conformity with Ind AS requires management to make
judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets
and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although
these estimates are based on 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.

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property,
plant and equipment as recognised in the financial statements as at the date of transition to Ind AS,
measured as per the previous GAAP and use that as its deemed cost as at the date of transition.

Accordingly, the Company has elected to measure all of its property, plant and equipment at their
previous GAAP carrying value.

2. Property, Plant and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation and impairment loss, if
any.

Expenditure which are of a Capital nature are Capitalized at cost, which comprises purchase price (net of
rebates and discounts), duties, levies and any directly attributable cost of bringing the assets to its
working condition for the intended use.

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property,
plant and equipment as recognised in the financial statements as at the date of transition to Ind AS,
measured as per the previous GAAP and use that as its deemed cost as at the date of transition.
Accordingly, the Company has elected to measure all of its property, plant and equipment at their
previous GAAP carrying value.

3. Depreciation and Amortisation

(i) Up to 31^st March, 2014, depreciation is provided from the date the assets have been installed
and put to use, on Straight Line Method at the rates specified in Schedule XIV of the Companies
Act, 1956.

(ii) With effect from 1^st April, 2014, depreciation on assets carried at historical cost is provided on
Straight Line Method based on useful life as under:

(iii) The carrying value of the assets as on April 1^st, 2014, is depreciated over the remaining useful
life of the asset determined based on useful life mentioned in clause (ii) supra.

(iv) Where the useful life of the asset is NIL as on 1^st April, 2014, the carrying value as on 1^st April,
2014, has been added to the opening balance of deficit in the Statement of Profit and Loss in
accordance with Schedule II of the Companies Act, 2013.

4. Inventories:

Inventories are valued at the lower of cost or net realizable value. Cost includes purchase price, duties,
transport & handing costs and other costs directly attributable to the acquisition and bringing the
inventories to their present location and condition.

The basis of determination of cost remains as follows:

a) Raw material, Packing Material - at actual cost.

b) Stores & spares: at actual cost.

c) Work-in-progress: Cost of input plus overhead upto the stage of completion.

d) Finished Goods: Cost of input plus appropriate overhead

5. Financial Instruments
(i) Financial Assets

Initial Recognition and Measurement

All financial assets are recognized initially at fair value plus, in the case of financial assets not
recorded at fair value through profit or loss, transaction costs that are attributable to the
acquisition of the financial asset. Financial assets are classified, at initial recognition, as financial
assets measured at fair value or as financial assets measured at amortized cost.

Subsequent Measurement

For purpose of subsequent measurement financial assets are classified in two broad categories:-

• Financial Assets at fair value

• Financial assets at amortized cost

Where assets are measured at fair value, gains and losses are either recognized entirely in the
statement of profit and loss or recognized in other comprehensive income.

A financial asset that meets the following two conditions is measured at amortized cost.

• Business Model Test: The objective of the company''s business model is to hold the financial

asset to collect the contractual cash flows.

• Cash flow characteristics test: The contractual terms of the financial asset give rise on specified

dates to cash flows that are solely payment of principal and interest on the principal amount
outstanding.

A financial asset that meets the following two conditions is measured at fair value through Other
Comprehensive Income:-

• Business Model Test: The financial asset is held within a business model whose objective is
achieved by both collecting contractual cash flows and selling financial assets.

• Cash flow characteristics test: The contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payment of principal and interest on the principal amount
outstanding.

All other financial assets are measured at fair value through profit and loss. All equity investments
are measured at fair value in the balance sheet, with value changes recognized in the statement
of profit and loss.

Impairment of financial assets

The company assesses impairment based on expected credit losses (ECL) model at an amount equal
to:-

• 12 months expected credit losses, or

• Lifetime expected credit losses

depending upon whether there has been a significant increase in credit risk since initial recognition.

However, for trade receivables, the company does not track the changes in credit risk. Rather, it
recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its
initial recognition.

(ii) Financial Liabilities

All financial liabilities are initially recognized at fair value and, in the case of loans and borrowings
and payables, net of directly attributable transaction costs.

Financial liabilities are classified as measured at amortized cost or fair value through profit and
loss (FVTPL). A financial liability is classified as FVTPL if it is classified as held for trading, or it is a
derivative or is designated as such on initial recognition. Financial Liabilities at FVTPL are measured
at fair value and net gain or losses, including any interest expense, are recognised in statement of
profit and loss. Other financial liabilities are subsequently measured at amortized cost using the
effective interest method. Interest expense and foreign exchange gains and losses are recognised
in statement of profit and loss. Any gain or loss on de-recognition is also recognized in statement
of profit and loss.

6. Borrowing costs:

Borrowing cost that are directly attributable to the acquisition, construction, or production of a qualifying
asset are capitalized as a part of the cost of such asset till such time the asset is ready for its intended
use or sale.

Borrowing cost consist of interest and other costs that an entity incurs in connection with the borrowing
of funds. Borrowing costs also includes exchange differences to the extent regarded as an adjustment
to the borrowing costs. A qualifying asset is an asset that necessarily requires a substantial period of
time to get ready for its intended use or sale. All other borrowing cost are recognized as expense in the
period in which they are incurred.

7. Segment Reporting:

The Companies monitors the operating results of its business segments separately for the purpose of
making decisions about resource allocation and performance assessment. Segment performance is
evaluated based on profit and loss and is measured consistently with profit and loss in the financial
statements

8. Foreign Currency Transactions:

All foreign currency transactions are recorded at the rates prevailing on the date of the transaction.
Foreign currency monetary assets and liabilities other than net investments in non-integral foreign
operations are translated at the exchange rate prevailing on the balance sheet date and exchange gains
and losses are recognised in the statement of profit and loss.

9. Income taxes:

Tax expense comprising current tax and deferred tax are recognised in the Profit and Loss Statement for
the period. Current tax is the amount of income tax determined to be payable in respect of taxable
income as computed under the tax laws.

Deferred tax asset or liability is recognised for timing differences between the profit/(loss) as per financial
statements and the profit/(loss) offered for income tax, based on tax rates that have been enacted or
substantively enacted at the balance sheet date. Deferred tax assets are recognised only if there is virtual
certainty in the opinion of the Board of Directors of the Company that sufficient future taxable income
will be available against which such assets can be realised in future. The carrying amount of deferred tax
assets is reviewed at the end of each financial year and adjusted to the extent that it is no longer probable
that sufficient taxable income will be available in future to allow in part or whole of the deferred tax asset
to be utilised.

10. Cash & Cash Equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise of cash at bank and in hand
and short-term investments with an original maturity of three months or less.

11. Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to
equity shareholders by the weighted average number of equity shares outstanding during the period.

The diluted earnings per share is calculated after considering adjustments for the effect of all dilutive
potential equity shares.

12. Leases

> Operating Lease: Leases of assets where all the risks and rewards of ownership are effectively
retained by the lessor are classified as operating leases. Lease payments under operating leases are
recognized as an expense with reference to lease terms and other considerations.

> Finance Lease: Leases of assets other than operating leases are classified as finance lease. The Lower
of assets and present value of the minimum lease rentals is capitalized as fixed assets with
corresponding amount shown as lease liability. The principal component in the lease rental is adjusted
against the lease liability and the interest component is charged to profit and loss account.

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Mar 31, 2024

SIGNIFICANT ACCOUNTING POLICIES

1. Use of Estimates

The preparation of financial statements in conformity with Ind AS requires management to
make judgements, estimates and assumptions that affect the reported amounts of
revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the
end of the reporting period. Although these estimates are based on 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.

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all
of its property, plant and equipment as recognised in the financial statements as at the
date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed
cost as at the date of transition.

Accordingly, the Company has elected to measure all of its property, plant and equipment
at their previous GAAP carrying value.

2. Property, Plant and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation and
impairment loss, if any.

Expenditure which are of a Capital nature are Capitalized at cost, which comprises purchase
price (net of rebates and discounts), duties, levies and any directly attributable cost of
bringing the assets to its working condition for the intended use.

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all
of its property, plant and equipment as recognised in the financial statements as at the
date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed
cost as at the date of transition.

Accordingly, the Company has elected to measure all of its property, plant and equipment
at their previous GAAP carrying value.

3. Depreciation and Amortisation

(i) Up to 31^st March, 2014, depreciation is provided from the date the assets have
been installed and put to use, on Straight Line Method at the rates specified in
Schedule XIV of the Companies Act, 1956.

(ii) With effect from 1^st April, 2014, depreciation on assets carried at historical cost is
provided on Straight Line Method based on useful life as under:

(iii) The carrying value of the assets as on April 1^st, 2014, is depreciated over the
remaining useful life of the asset determined based on useful life mentioned in
clause (ii) supra.

(iv) Where the useful life of the asset is NIL as on 1^st April, 2014, the carrying value as
on 1^st April, 2014, has been added to the opening balance of deficit in the
Statement of Profit and Loss in accordance with Schedule II of the Companies Act,
2013.

4. Inventories:

Inventories are valued at the lower of cost or net realizable value. Cost includes purchase
price, duties, transport & handing costs and other costs directly attributable to the
acquisition and bringing the inventories to their present location and condition.

The basis of determination of cost remains as follows:

a) Raw material, Packing Material - at actual cost.

b) Stores & spares: at actual cost.

c) Work-in-progress: Cost of input plus overhead upto the stage of completion.

d) Finished Goods: Cost of input plus appropriate overhead

5. Financial Instruments
(i) Financial Assets

Initial Recognition and Measurement

All financial assets are recognized initially at fair value plus, in the case of financial
assets not recorded at fair value through profit or loss, transaction costs that are
attributable to the acquisition of the financial asset. Financial assets are classified, at
initial recognition, as financial assets measured at fair value or as financial assets
measured at amortized cost.

Subsequent Measurement

For purpose of subsequent measurement financial assets are classified in two broad
categories:-

• Financial Assets at fair value

• Financial assets at amortized cost

Where assets are measured at fair value, gains and losses are either recognized
entirely in the statement of profit and loss or recognized in other comprehensive
income.

A financial asset that meets the following two conditions is measured at amortized
cost.

• Business Model Test: The objective of the company''s business model is to hold
the financial asset to collect the contractual cash flows.

• Cash flow characteristics test: The contractual terms of the financial asset give

rise on specified dates to cash flows that are solely payment of principal and
interest on the principal amount outstanding.

A financial asset that meets the following two conditions is measured at fair value
through Other Comprehensive Income:-

• Business Model Test: The financial asset is held within a business model whose
objective is achieved by both collecting contractual cash flows and selling financial
assets.

• Cash flow characteristics test: The contractual terms of the financial asset give
rise on specified dates to cash flows that are solely payment of principal and interest
on the principal amount outstanding.

All other financial assets are measured at fair value through profit and loss. All equity
investments are measured at fair value in the balance sheet, with value changes
recognized in the statement of profit and loss.

Impairment of financial assets

The company assesses impairment based on expected credit losses (ECL) model at an
amount equal to:-

• 12 months expected credit losses, or

• Lifetime expected credit losses

depending upon whether there has been a significant increase in credit risk since initial
recognition.

However, for trade receivables, the company does not track the changes in credit risk.
Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting
date, right from its initial recognition.

(ii) Financial Liabilities

All financial liabilities are initially recognized at fair value and, in the case of loans
and borrowings and payables, net of directly attributable transaction costs.

Financial liabilities are classified as measured at amortized cost or fair value through
profit and loss (FVTPL). A financial liability is classified as FVTPL if it is classified as
held for trading, or it is a derivative or is designated as such on initial recognition.
Financial Liabilities at FVTPL are measured at fair value and net gain or losses,
including any interest expense, are recognised in statement of profit and loss. Other
financial liabilities are subsequently measured at amortized cost using the effective
interest method. Interest expense and foreign exchange gains and losses are
recognised in statement of profit and loss. Any gain or loss on de-recognition is also
recognized in statement of profit and loss.

6. Borrowing costs:

Borrowing cost that are directly attributable to the acquisition, construction, or production
of a qualifying asset are capitalized as a part of the cost of such asset till such time the
asset is ready for its intended use or sale.

Borrowing cost consist of interest and other costs that an entity incurs in connection with
the borrowing of funds. Borrowing costs also includes exchange differences to the extent
regarded as an adjustment to the borrowing costs. A qualifying asset is an asset that
necessarily requires a substantial period of time to get ready for its intended use or sale.
All other borrowing cost are recognized as expense in the period in which they are incurred.

7. Segment Reporting:

The Companies monitors the operating results of its business segments separately for the
purpose of making decisions about resource allocation and performance assessment.
Segment performance is evaluated based on profit and loss and is measured consistently
with profit and loss in the financial statements

8. Foreign Currency Transactions:

All foreign currency transactions are recorded at the rates prevailing on the date of the
transaction. Foreign currency monetary assets and liabilities other than net investments
in non-integral foreign operations are translated at the exchange rate prevailing on the
balance sheet date and exchange gains and losses are recognised in the statement of profit
and loss.

9. Income taxes:

Tax expense comprising current tax and deferred tax are recognised in the Profit and Loss
Statement for the period. Current tax is the amount of income tax determined to be
payable in respect of taxable income as computed under the tax laws.

Deferred tax asset or liability is recognised for timing differences between the profit/(loss)
as per financial statements and the profit/(loss) offered for income tax, based on tax rates
that have been enacted or substantively enacted at the balance sheet date. Deferred tax
assets are recognised only if there is virtual certainty in the opinion of the Board of Directors
of the Company that sufficient future taxable income will be available against which such
assets can be realised in future. The carrying amount of deferred tax assets is reviewed
at the end of each financial year and adjusted to the extent that it is no longer probable
that sufficient taxable income will be available in future to allow in part or whole of the
deferred tax asset to be utilised.

10. Cash & Cash Equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise of cash at
bank and in hand and short-term investments with an original maturity of three months or
less.

11. Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period
attributable to equity shareholders by the weighted average number of equity shares
outstanding during the period.

The diluted earnings per share is calculated after considering adjustments for the effect of
all dilutive potential equity shares.

12. Leases

> Operating Lease: Leases of assets where all the risks and rewards of ownership are
effectively retained by the lessor are classified as operating leases. Lease payments
under operating leases are recognized as an expense with reference to lease terms and
other considerations.

> Finance Lease: Leases of assets other than operating leases are classified as finance
lease. The Lower of assets and present value of the minimum lease rentals is capitalized
as fixed assets with corresponding amount shown as lease liability. The principal
component in the lease rental is adjusted against the lease liability and the interest
component is charged to profit and loss account.

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Mar 31, 2014

A. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on 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.

b. Fixed Assets

Building and Plant and Machinery are stated at revalued cost less depreciation. Additions to Plant and Machinery and Building after 01.04.1993 are stated at cost of acquisition less depreciation. Other assets are stated at their original cost less depreciation.

c. Depreciation

Depreciation on Fixed Assets has been provided on the Straight Line Method at the rates specified in Schedule XIV of the Companies Act, 1956.

d. Inventories

Inventories, except depot stocks, are valued at lower of cost or net realizable value. Cost has been arrived at adopting the first-in-first-out cost formula. Depot stocks are valued at the proforma prices at which they are cleared from the factory on which excise duty is paid.

e. Investments

Investments are stated at cost and no provision is made for the diminution in the market value of investments as they are intended to be held as long term investments.

f. Retirement benefits

The gratuity is settled as & when an employee leaves the service thru Employees Gratuity Fund A/c. Provisions for Provident Fund and Leave encashment are made based on the actual amount payable.

g. State subsidy

State Subsidy is treated as deferred income and is recognized in the Profit and Loss Account over the period and in proportion to the depreciation on assets on which subsidy was originally granted.

h. Borrowing costs:

Borrowing costs eligible for capitalization are capitalized to the cost of qualifying assets. Other borrowing costs are treated as expensed.

i. Segmental reporting

All the products/activities of the company are subject to the same risks and returns and as such, do not comprise separate segments. Hence the question of segmental reporting as required by Accounting Standard 17 issued by the Institute of Chartered Accountants of India does not arise.

j. Foreign currency transaction:

a. All foreign currency transactions are recorded at the rates prevailing on the date of the transaction.

b. All foreign currency assets and liabilities are restated at the exchange rate prevailing at the year end.

k. Income Taxes

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the Company operates. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income during the current year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the Company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

l. Cash & Cash Equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.

m. GENERAL

Accounting policies not specifically referred to conform to the requirements of generally accepted accounting principles and the accounting standards prescribed by the Institute of Chartered Accountants of India.

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Mar 31, 2010

Accounting Convention : Accounts are maintained on an accrual basis under the historical cost convention.

2. Fixed Assets

Building and Plant & Machinery are stated at revalued cost less depreciation. Aditions to Plant & Machinery and Building after 01.04.1993 are stated at cost of acquisition less depreciation. Other Assets stated at cost of acquisition less depreciation.

3. Depreciation

Depreciation on Fixed Assets has been provided on the Straight Line Method at the rates prescribed by the Schedule XIV to the Companies Act, 1956.

4. Inventories

Inventories are valued at lower of cost or net realizable value. Cost has been arrived at adopting the FIFO basis.

5. Investments

Investments are stated at cost and no provision is made for the diminution in the market value of investments as they are intended as long term investments.

6. Retirement Benefits

The gratuity payable to retiring employees is covered by Group Gratuity Insurance Policy with LIC of India. Provisions for Provident Fund and Leave Encashment has been made based on the actual amount payable.

7. State Subsidy

State subsidy is treated as deferred Income and is recognized in the Profit & Loss Account over the period and in proportion to the depreciation on assets on which subsidy was originally granted.

8. Borrowing Costs:

Borrowing costs eligible for capitalization are capitalized to the cost of qualifying assets. Other borrowing costs are treated as expensed.

9. Segmental reporting

All the products / activities of the company are subject to the same risks and returns and as such do not comprise separate segments. Hence the question of segmental reporting as required by AS 17 issued by the Institute of Chartered Accountants of India does not arise.

10. Foreign Currency Transaction

a. All foreign currency transactions are recorded at the rates prevailing on the date of the transaction.

b. All foreign currency assets and liabilities are restated at the exchange rate prevailing at the year end.

11. Others

Accounting policies not specifically referred confirm to the requirements of the Generally Accepted Accounting Policies.