Notes to Financial Statements for the Year Ended 31-03-2015 1. Corporate Information Pan Electronics (India) Ltd (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 2013 The shares are listed on BSE Limited. The company is engaged in the manufacturing and selling of capacitor grade Metallised Plastic films and capacitor elements. The Company" s products are sold in the domestic & international markets. 2. Summary of significant policies a. Basis of brparation The financial statements of the company have been brpared in accordance with generally accepted accounting principles in India (INDIAN GAAP) to comply with Accounting Standards specified under Section 133 of the Companies Act 2013 read with Rule 7 of the Companies (Accounts) Rules 2014 and relevant provisions of the Companies Act 2013. The financial statements have been brpared under the historical cost convention on accrual basis except for certain financial instruments which are measured at fair value. The accounting policies adopted in the brparation of financial statements are consistent with those of brvious year. b. Use of Estimates The brparation 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. c. Fixed Assets Building and Plant and Machinery are stated at revalued cost less debrciation. Additions to Plant and Machinery and Building after 01.04.1993 are stated at cost of acquisition less debrciation. Other assets are stated at their original cost less debrciation. d. Debrciation In respect of fixed assets (other than leasehold land) acquired during the year, debrciation / amortisation is charged on a straight line basis so as to write-off the cost of the assets over the useful lives and for the assets acquired prior to 01 April 2014, the carrying amount as on 1 April 2014 is debrciated over the remaining useful life based on an evaluation. e. 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. f. 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. g. 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. h. 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 debrciation on assets on which subsidy was originally granted. i. Borrowing costs: Borrowing costs eligible for capitalization are capitalized to the cost of qualifying assets. Other borrowing costs are treated as expensed. j. 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 'Segment Reporting' specified under Section 133 of the Act does not arise. k. Foreign currency transaction: All foreign currency transactions are recorded at the rates brvailing 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 brvailing on the balance sheet date and exchange gains and losses are recognised in the statement of profit and loss. l. 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 brvailing 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 debrciation 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. m. 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. n. GENERAL Accounting policies not specifically referred to conform to the requirements of generally accepted accounting principles and the accounting standards brscribed by the Institute of Chartered Accountants of India. 20.6 Dues to Micro, Small & Medium Enterprises: There are no Micro, Small and Medium enterprises, to whom the Company owes dues, which are outstanding for more than 45 days at the Balance Sheet Date, computed on unit wise basis. The above information has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors. 1. The Company is a Public Listed Company as defined in the General Instructions in respect of Accounting Standards specified under section 133 of the Companies Act, 2013. Accordingly, the Company has complied with Accounting Standards as applicable to Public Listed Company. 2. Previous year's figures have been regrouped/reclassified wherever necessary, to confirm to current year's classification As per our report attached to the balance sheet For Pan Electronics (India) Limited MSRK & Co Gullu Talreja Chartered Accountant Firm Reg. # 013232S Abhishek Talreja Chairman & Managing Director Director Shreesh Kumar Eshwar Hegde Mem # 222817 G Nagaraju Director K Mudaiah Director Kanchan Dutta Director Place: Bengaluru Date: 30 May 2015 |