A. COMPANY INFORMATION
Our Company was originally formed as a Private Limited company under the provisions of the Companies Act, 1956 under the
name of Positron Energy Private Limited and received certificate of incorporation (CIN: U01403GJ2008PTC052932) from Central
registration Center, Registrar of Companies dated February 15, 2008.
Subsequently, our Company was converted into a public limited company and the name of Company was converted to Positron
Energy Limited and a fresh certificate of incorporation (CIN: U01403GJ2008PLC052932), was issued by the Central Processing
Centre, Registrar of Companies. After listing on the Stock Exchange, CIN has been updated to L01403GJ2008PLC052932.
B. SIGNIFICANT ACCOUNTING POLICIES FOR PREPARATION OF FINANCIAL STATEMENTS
B.1 Accounting Convention
The financial statement has been prepared under the historical cost convention on the "Accrual Concept" except for certain
financial instruments which are measured at fair values and Going Concern assumptions of accountancy in accordance with
the accounting principles generally accepted in India and comply with the accounting standards as prescribed by Companies
(Accounting Standard) Rules, 2021 and with the relevant provisions of the Companies Act, 2013 and rules made there under.
All amounts disclosed in the financial statements and notes have been rounded off to the nearest Rs. In Lakh as per the
requirement of division I of Schedule III, unless otherwise stated.
B.2 Use of Estimates and Judgements
The preparation of financial statements requires management to make estimates, judgements and assumptions that affect
the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenues and
expenses during the reporting period. The application of accounting policies that require critical accounting estimates, which
involve complex and subjective judgments and the use of assumptions in these financial statements, have been disclosed in
notes. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate
changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates.
Changes in estimates and judgements are reflected in the financial statements in the period in which changes are made and, if
material, their effects are disclosed in the notes to the financial statements.
B.3 Current and Non - Current Classification
An asset or a liability is classified as Current when it satisfies any of the following criteria:
i. It is expected to be realized / settled, or is intended for sales or consumptions, in the Company's Normal Operating
Cycle;
ii. It is held primarily for the purpose of being traded;
iii. It is expected to be realized / due to be settled within twelve months after the end of reporting date;
iv. The Company does not have an unconditional right to defer the settlement of the liability for at least twelve months
after the reporting date.
All other assets and liabilities are classified as non-Current.
For Current / Non - Current classification of assets and liabilities, the Company has ascertained its operating cycle as twelve
months. This is based on the nature of services and the time between the acquisition of the assets or liabilities for processing
and their realization in Cash and Cash Equivalents.
C. Basis of Preparation
1. Presentation and Disclosure of Financial Statements
These financial statements have been prepared as per "Schedule - III" notified under the Companies Act, 2013. The Company
has also reclassified / regrouped / restated the previous year figures in accordance with the requirements applicable in the
current year.
2. Property, Plant and Equipment
Property, Plant and Equipment are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises
of all expenses incurred to bring the assets to its present location and condition. Borrowing cost directly attributable to the
acquisition/ construction is included in the cost of fixed assets. Adjustments arising from exchange rate variations attributable
to the fixed assets are capitalized.
In case of new projects/ expansion of existing projects, expenditure incurred during construction/ preoperative period including
interest and finance charge on specific/ general purpose loans, prior to commencement of commercial production are capi¬
talized. The same are allocated to the respective on completion of construction/ erection of the capital project/ fixed assets.
Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future eco¬
nomic benefits from the existing asset beyond its previously assessed standard of performance.
Capital assets (including expenditure incurred during the construction period) under erection/ installation are stated in the
Balance Sheet as "Capital Work in Progress."
3. Depreciation
All fixed assets, except capital work in progress, are depreciated on WDV Method. Depreciation is provided based on useful
life of the assets and depreciation rates as prescribed in Schedule II to the Companies Act, 2013. Depreciation on additions to/
deletions from fixed assets made during the period is provided on pro-rata basis from/ up to the date of such addition / deletion
as the case may be.
4. Impairment of Assets
At each balance sheet date, the Company reviews the carrying amount of its fixed assets to determine whether there is any
indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the assets is
estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an asset's net selling price-
and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the assets and
from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments
of time value of money and the risks specific to the assets.
5. Inventories
Inventories consist of Raw Materials and Finished Goods are valued at Cost or Net Realizable Value, whichever is lower.
6. Investments
Investments are classified into current investments and non-current investments. Current investments i.e. investments that are
readily realizable and intended to be held for not more than a year valued at cost. Any permanent reduction in the carrying
amount or any reversals of such, reductions are charged or credited to the Statement of Profit & loss Account.
Non-current investments are stated at cost. Provision for diminution in the value of these investments is made only if such
decline is other than temporary, in the opinion of the management.
7. Revenue Recognition
Revenue is recognized when it is probable that economic benefit associated with the transaction flows to the Company in
ordinary course of its activities and the amount of revenue can be measured reliably, regardless of when the payment is being
made. Revenue is measured at the fair value of consideration received or receivable, taking into the account contractually de¬
fined terms of payments, net of its returns, trade discounts and volume rebates allowed.
Revenue includes only the gross inflows of economic benefits on its own account. Amount collected on behalf of third parties
such as sales tax, value added tax and goods and service tax (GST) are excluded from the Revenue.
Sale of goods is recognized at the point of dispatch of goods to customers, sales are exclusive of Sales tax, Vat, GST and Freight
Charges if any. The revenue and expenditure are accounted on a going concern basis.
The capital gains on sale of investment if any are recognized on completion of transaction. No notional profits/losses are rec¬
ognized on such investments.
Interest income is recognized on time proportion basis, when it is accrued and due for payment.
Dividend from investments in shares / units is recognized when the Companies right to receive payment is established.
Other items of Income are accounted as and when the right to receive arises.
8. Borrowing Cost
Borrowing Cost includes the interest, commitments charges on bank borrowings, amortization of ancillary costs incurred in
connection with the arrangement of borrowings.
Borrowing costs that are directly attributable to the acquisition or construction of qualifying property, plants and equipment's
are capitalized as a part of cost of that property, plants and equipment's. The amount of borrowing costs eligible for capitaliza¬
tion is determined in accordance with the Accounting Standards- 16 "Borrowing Costs". Other Borrowing Costs are recognized
as expenses in the period in which they are incurred.
In accordance with the Accounting Standard - 16, exchange differences arising from foreign currency borrowings to the extent
that they are regarded as adjustments to interest costs are recognized as Borrowing Costs, and are capitalized as a part of cost
of such property, plants and equipment's if they are directly attributable to their acquisition or charged to the Statement or
Profit and Loss.
9. Employee Benefits
Short - term employee benefits are recognized as an expense at the undiscounted amount in the profit & loss account of the
year in which the related service is rendered.
Post employment and other long term employee benefits are recognized as an expense in the profit & loss account for the year
in which the liabilities are crystallized.
Disclosure under AS - 15 Employee Benefits:
The benefits payable under this plan are governed by "Gratuity Act 1972". Under the Act, employee who has completed five
years of service is entitled to specific benefit. The level of benefit provided depends on the member's length of services and
salary at retirement age.
The following tables summaries the components of net benefit expense recognized in the summary statement of profit or loss
and the funded status and amounts recognized in the statement of assets and liabilities for the respective plans:
10. Taxes on Income
Income tax expenses for the year comprises of current tax and deferred tax.
Current tax provision is determined on the basis of taxable income computed as per the provisions of the Income Tax Act.
Deferred tax is recognized for all timing differences that are capable of reversal in one or more subsequent periods subject to
conditions of prudence and by applying tax rates that have been substantively enacted by the balance sheet date.
11. Foreign Currency Transaction
i. Transactions denominated in foreign currencies are recorded at the exchange rate prevailing at the date of the trans¬
action. Monetary assets and liabilities denominated in foreign currencies at the year-end are restated at closing rate.
ii. Any exchange difference on account of settlement of foreign currency transaction and restatement of monetary as¬
sets and liabilities denominated in foreign currency is recognized in the statement of Profit & loss Account.
A. Additional Information to the Financial Statements:
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