Accounting Policies of Power and Instrumentation (Gujarat) Ltd. Company

Mar 31, 2025

1.3 Summary of Significant Accounting Policies

The accounting policies set out below have been
applied consistently to all periods presented in the
financial statements unless otherwise stated.

i Property, Plant and Equipment (PPE)

Property, Plant and Equipment are stated at
cost, net of recoverable taxes, trade discount
and rebates less accumulated depreciation
and impairment loss, if any.

Such cost include purchase price, borrowing
cost and any cost directly attributable to
bringing assets to its location and working
condition or its intended use.

Depreciation

Depreciation on Tangible Assets, PPE is
charged on WDV method as per the useful
life prescribed in the Companies Act, 2013
and in the manner specified therein. 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 any.Depreciation on
fixed assets added/ disposed off/ discarded
during the year is provided on a pro-rata
basis with reference to the month of addition/
disposal/discarding.

Useful Life

Useful lives of property plant and equipment
are based on the life prescribed in Schedule II
of the Companies Act, 2013.

ii Financial Instruments

A financial instrument is any contract that
gives rise to a financial asset of one entity
and a financial liability or equity instrument of
another entity.

Financial assets

Initial recognition and measurement

All financial assets are recognised 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. Purchases 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 trades) are recognised on the
trade date, i.e., the date that the Company
commits to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement,
financial assets are classified into following
categories:

a) Financial Assets at amortized cost

b) Financial Assets at fair value through
other comprehensive income (FVTOCI)

c) Financial Assets at fair value through
profit or loss (FVTPL)

d) Impairment of financial assets

a) Financial Assets at amortised cost

A Financial Asset is measured at the amortised
cost if both the following conditions are met:

- The asset is held within a business model
whose objective is to hold assets for
collecting contractual cash flows, and

- Contractual terms of the asset give rise
on specified dates to cash flows that
are solely payments of principal and
interest (SPPI) on the principal amount
outstanding.

After initial measurement, such financial
assets are subsequently measured at
amortized cost using the effective interest rate
(EIR) method. Amortized cost is calculated by
taking into account any discount or premium
on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortization is
included in other income in the statement of
profit and loss.

b) Financial Assets at FVTOCI

A Financial Asset is measured at the amortised
cost if both the following conditions are met:

- The objective of the business model is
achieved both by collecting contractual
cash flows and selling the financial assets,
and

- The asset''s contractual cash flows
represent SPPI.

Financial Assets included within the
FVTOCI category are measured initially as
well as at each reporting date at fair value.
Fair value movements are recognized in
the other comprehensive income (OCI).
On derecognition of the asset, cumulative
gain or loss previously recognized in OCI is
reclassified to the statement of profit and
loss. Interest earned whilst holding FVTOCI
is reported as interest income using the
EIR method.

c) Financial Assets at FVTPL

FVTPL is a residual category for Financial
Assets. Any asset, which does not meet the
criteria for categorization as at amortized
cost or as FVTOCI, is classified as at FVTPL.

Impairment of trade receivables

In accordance with Ind AS 109, the Company
applies expected credit loss (ECL) model for
measurement and recognition of impairment
loss on the trade receivables.

The application of simplified approach does
not require the Company to track changes in
credit risk. Rather, it recognises impairment
loss allowance based on lifetime ECLs at each
reporting date, right from its initial recognition.
Trade receivables are tested for impairment
on a specific basis after considering the
outstanding amount, security deposit
collected, age bracket etc. and expectations
about future cash flows.

Derecognition

A financial asset (or, where applicable, a part
of a financial asset or part of a group of similar
financial assets) is primarily derecognised (i.e.,
removed from the Company''s balance sheet)
when:

- The rights to receive cash flows from the
asset have expired, or

- The Company has transferred its rights
to receive cash flows from the asset
or has assumed an obligation to pay
the received cash flows in full without

material delay to a third party under
a ''passthrough'' arrangement; and
either (a) the Company has transferred
substantially all the risks and rewards of
the asset, or (b) the Company has neither
transferred nor retained substantially all
the risks and rewards of the asset, but has
transferred control of the asset.

- When the Company has transferred
its rights to receive cash flows from an
asset or has entered into a pass-through
arrangement, it evaluates if and to
what extent it has retained the risks and
rewards of ownership. When it has neither
transferred nor retained substantially
all of the risks and rewards of the asset,
nor transferred control of the asset, the
Company continues to recognise the
transferred asset to the extent of the
Company''s continuing involvement. In
that case, the Company also recognises
an associated liability. The transferred
asset and the associated liability are
measured on a basis that reflects the
rights and obligations that the Company
has retained.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings,
payables as appropriate. All financial liabilities
are recognised initially at fair value and, in the
case of loans and borrowings and payables,
at transaction cost net of directly attributable
transaction costs.

Subsequent measurement

The financial liabilities is measured at
Amortised Cost.

Discounting of long-term financial assets /
liabilities

All financial assets / liabilities are required to be
measured at fair value on initial recognition. In
case of financial liabilities / assets which are
required to subsequently be measured at
amortised cost, interest is accrued using the
effective interest method.

iii Inventories

Inventories consist of goods and to be measured
at the lower of cost and net realisable value.
Net Realizable value is the estimated selling
price in the ordinary course of business, less
estimated cost of completion and estimated
costs necessary to make sale.

iv Impairment of non-financial assets

The carrying amounts of the Company''s non¬
financial assets, other than inventories and
deferred tax assets are reviewed at each
reporting date to determine whether there
is any indication of impairment. If any such
indication exists, then the asset''s recoverable
amount is estimated.

For goodwill and intangible assets that have
indefinite lives or that are not yet available for
use, an impairment test is performed each
year at March 31. The recoverable amount of
an asset or cash-generating unit (as defined
below) is the greater of its value in use and its
fair value less costs to sell. In assessing value
in use, the estimated future cash flows are
discounted to their present value using a pre¬
tax discount rate that reflects current market
assessments of the time value of money and
the risks specific to the asset or the cash¬
generating unit.

For the purpose of impairment testing, assets
are grouped together into the smallest group
of assets that generates cash inflows from
continuing use that are largely independent
of the cash inflows of other assets or groups
of assets (the "cash-generating unit").

An impairment loss is recognized in the
statement of profit and loss if the estimated
recoverable amount of an asset or its cash¬
generating unit is lower than its carrying
amount. Impairment losses recognized
in respect of cash-generating units are
allocated first to reduce the carrying amount
of any goodwill allocated to the units and then
to reduce the carrying amount of the other
assets in the unit on a pro-rata basis.

An impairment loss in respect of goodwill
is not reversed. In respect of other assets,
impairment losses recognized in prior periods
are assessed at each reporting date for any
indications that the loss has decreased or no
longer exists.

An impairment loss is reversed if there
has been a change in the estimates used
to determine the recoverable amount.
An impairment loss is reversed only to the
extent that the asset''s carrying amount does
not exceed the carrying amount that would
have been determined, net of depreciation or
amortization, if no impairment loss had been
recognized.

v Cash & Cash Equivalents

Cash and bank balances comprise of cash
balance in hand, in current accounts with
banks,. Bank overdrafts that are repayable on
demand and form an integral part of our cash
management are included as a component
of cash and cash equivalents for the purpose
of the statement of cash flows.

vi Leases

At the inception it is assessed, whether a
contract is a lease or contains a lease. A
contract is a lease or contains a lease if
it conveys the right to control the use of
an identified asset, for a period of time, in
exchange for consideration. If lease asset held
land & building are perpetual in nature, than it
will be treated as Land & Building.

To assess whether a contract conveys the
right to control the use of an identified asset,
Company assesses whether the contract
involves the use of an identified asset. Use
may be specified explicitly or implicitly.

- Use should be physically distinct or
represent substantially all of the capacity
of a physically distinct asset.

- If the supplier has a substantive
substitution right, then the asset is not
identified.

- Company has the right to obtain
substantially all of the economic benefits
from use of the asset throughout the
period of use

- Company has the right to direct the use
of the asset

- In cases where the usage of the asset
is predetermined, the right to direct the
use of the asset is determined when
Company has the right to use the asset
or Company designed the asset in a way

that predetermines how and for what
purpose it will be used.

At the commencement or modification of a
contract, that contains a lease component,
Company allocates the consideration in the
contract, to each lease component, on the
basis of its relative standalone prices. For
leases of property, it is elected not to separate
non-lease components and account for the
lease and non-lease components as a single
lease component.

Company as a Lessee:

Company recognizes a right-of-use asset and
a lease liability at the lease commencement
date.

Right-Of-Use Asset (ROU):

The right-of-use asset is initially measured at
cost. Cost comprises of the initial amount of the
lease liability adjusted for any lease payments
made at or before the commencement
date, any initial direct costs incurred by the
lessee, an estimate of costs to dismantle and
remove the underlying asset or to restore
the underlying asset or the site on which it is
located less any lease incentives received.

After the commencement date, a lessee shall
measure the right-of-use asset applying cost
model, which is Cost less any accumulated
depreciation and any accumulated

impairment losses and also adjusted for
certain re-measurements of the lease
liability

Right-of-use asset is depreciated
using straight-line method from the
commencement date to the end of the lease
term. If the lease transfers the ownership of
the underlying asset to the Company at the
end of the lease term or the cost of the right-
of-use asset reflects Company will exercise
the purchase option, ROU will be depreciated
over the useful life of the underlying asset,
which is determined based on the same basis
as property, plant and equipment.

Lease liability:

Lease liability is initially measured at the
present value of lease payments that are

not paid at the commencement date.
Discounting is done using the implicit interest
rate in the lease, if that rate cannot be
readily determined, then using Company''s
incremental borrowing rate. Incremental
borrowing rate is determined based on entity''s
borrowing rate adjusted for terms of the lease
and type of the asset leased.

Lease payments included in the measurement
of the lease liability comprises of fixed
payments (including in substance fixed
payments), variable lease payments that
depends on an index or a rate, initially
measured using the index or rate at the
commencement date, amount expected to
be payable under a residual value guarantee,
the exercise price under a purchase option
that the Company is reasonably certain
to exercise, lease payments in an optional
renewal period if the Company is reasonably
certain to exercise an extension option, and
penalties for early termination of a lease
unless the Company is reasonably certain not
to terminate early.

Lease liability is measured at amortised cost
using the effective interest method. Lease
liability is re- measured when there is a change
in the lease term, a change in its assessment
of whether it will exercise a purchase,
extension or termination option or a revised
in-substance fixed lease payment, a change
in the amounts expected to be payable under
a residual value guarantee and a change in
future lease payments arising from change in
an index or rate.

When the lease liability is re-measured,
corresponding adjustment is made to the
carrying amount of the right-of use asset. If
the carrying amount of the right-of-use asset
has been reduced to zero it will be recorded in
statement of profit and loss.

Right-of-use asset is presented under
"Property Plant and Equipment" and lease
liabilities are presented under "Financial
liabilities" in the balance sheet.

Company has elected not to recognise right-
of-use assets and lease liabilities for short¬
term leases. The lease payments associated
with these leases are recognised as an

expense on a straight-line basis over the lease
term.

vii Revenue Recognition

Revenue is recognised to the extent it is
probable that the economic benefits will
flow to the Company and the revenue can
be reliably measured, regardless of when the
payment is being made. Revenue is measured
at the fair value of the consideration
received or receivable, taking into account
contractually defined terms of payment
and excluding taxes or duties collected on
behalf of the government. The Company has
concluded that it is the principal in all of its
revenue arrangements since it is the primary
obligor in all the revenue arrangements as
it has pricing latitude and is also exposed to
inventory and credit risks.

However, Goods and Service Tax (GST) is not
received by the Company on its own account.
Rather, it is tax collected on value added to
the commodity by the seller on behalf of the
government. Accordingly, it is excluded from
revenue.

Sale of products

Revenue from the sale of products is
recognised when the significant risks and
rewards of ownership of the products have
passed to the buyer, usually on delivery
of the products. Revenue from the sale of
products is measured at the fair value of the
consideration received or receivable, net of
returns and allowances, trade discounts and
volume rebates.

Sale of Service

Revenue from services rendered is recognised
as and when services are rendered and
related costs are incurred in accordance with
the agreement.

Interest Income

For all financial assets measured either at
amortised cost or at fair value through other
comprehensive income, interest income is
recorded using the effective interest rate
(EIR). EIR is the rate that exactly discounts
the estimated future cash payments or
receipts over the expected life of the financial

instrument or a shorter period, where
appropriate, to the gross carrying amount of
the financial asset or to the amortised cost
of a financial liability. When calculating the
effective interest rate, the Company estimates
the expected cash flows by considering all the
contractual terms of the financial instrument
but does not consider the expected credit
losses.

viii Employee Benefit Expenses

Short Term Employee Benefits

All employee benefits payable within
twelve months of rendering the service
are recognised in the period in which the
employee renders the related service.

Post- Employment Benefits

Defined Contribution Plan

Contribution to Defined Contribution Plans
such as Provident Fund, Employees'' State
Insurance Corporation, etc., are charged
to the Statement of Profit and Loss as
incurred.

Defined Benefit Plan

The present value of the obligation under such
plans is determined based on an actuarial
valuation by an independent actuary at the
end of each year, using the Projected Unit
Credit Method. In the case of gratuity, which
is funded, the fair value of the plan assets is
reduced from the gross obligation under
the defined benefit plans, to recognise the
obligation on net basis.

Re-measurement

Remeasurement of net defined benefit liability,
which comprises actuarial gains and losses
and the return on plan assets (excluding
interest) and the effect of the asset ceiling
(if any excluding interest), are recognized
immediately in other comprehensive income.

ix Foreign Exchange Transactions

Company has not made any forign transaction
during the year.

x Finance Cost

"Borrowing Costs that are attributable to
the acquisition or construction of qualifying
assets are capitalised as part of the cost of
such assets. A Qualifying asset is one that
necessarily takes a substantial period of
time to get ready for its intended use or sale.
All other borrowing costs are charged to the
Statement of Profit and Loss for the period for
which they are incurred.

xi Taxes on Income

Income tax expense comprises current
and deferred tax. It is recognised in profit or
loss except to the extent that it relates to a
business combination, or items recognised
directly in equity or in OCI.

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. It is measured using tax rates
enacted or substantively enacted at the
reporting date. Current tax also includes any
tax arising from dividends.

Deferred tax

Deferred tax is recognized for the future tax
consequences of deductible temporary
differences between the carrying values of
a ssets and liabilities a nd their respective
tax bases at the reporting date, using the
tax rates and laws that are enacted or
substantively enacted as on reporting date.
Deferred tax liability are generally recorded
for all temporary timing differences.

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Mar 31, 2024

1. CORPORATE INFORMATION AND SIGNIFICANT ACCOUNTING

POLICIES

1.1 Corporate Information

The standalone financial statements comprise of financial statements of Power Instumentation (Gujarat) Limited for the year ended March 31, 2024. The Company is a public company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. The Company’s shares are listed on BSE, a recognised stock exchange, in India. The registered office of the company is located at ,B-1104 Sankalp Iconic,Opp Vikram Nagar, Iscon Temple Cross Road, S. G. Highway, Ahmedabad Gujarat , 380054. The company is engaged in the business of Electrical Contract Work and dealing in electrical equipment. These Financial Statements have been approved for issue by the Board of Directors at their meeting held on May 30, 2024.

1.2 Basis of preparation

i) Statement of Compliance with IND AS

The standalone financial statements for the year ended March 31,2024 of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 and as amended time to time. These financial statements for the year ended 31st March, 2023 are first Ind AS Financial Statements and are covered by Ind AS 101, First-time adoption of Indian Accounting Standards. The transition to Ind AS has been carried out from the accounting principles generally accepted in India (“Indian GAAP”) which is considered as the “Previous GAAP” for purposes of Ind AS 101.

The date of transition to Ind AS is 1st April, 2021.”

ii) Accounting Convention and Basis of measurement

The standalone financial statements have been prepared on a historical cost basis, except for the following:

“- certain financial assets and liabilities (including derivative instrument) that are measured at fair value;

- defined benefit plans - plan assets measured at fair value.”

iii) Use of estimates and judgments

The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. These estimates and associated assumptions are based on historical experiences and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. In particular, the areas involving critical estimates or Judgments are:

a) Depreciation and amortization

Depreciation and amortization is based on management estimates of the future useful lives of certain class of property, plant and equipment and intangible assets.

b) Provision and contingencies

Provisions and contingencies are based on the Management’s best estimate of the liabilities based on the facts known at the balance sheet date.

c) Fair valuation

Fair value is the market based measurement of observable market transaction or available market information.

iv) Functional and presentation currency:

These financial statements are presented in Indian Rupees, which is the Company’s functional currency. All amounts have been rounded off to two decimal places to the nearest lakh, unless otherwise indicated.

v) Current and noncurrent classification

All the assets and liabilities have been classified as current or noncurrent as per the Company’s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013and Ind AS 1, and Presentation of financial statements.

1.3 Summary of Significant Accounting Policies

The accounting policies set out below have been applied consistently to all periods presented in the financial statements unless otherwise stated.

i) Property, Plant and Equipment (PPE)

“Property, Plant and Equipment are stated at cost, net of recoverable taxes, trade discount and rebates less accumulated depreciation and impairment loss, if any

Such cost include purchase price, borrowing cost and any cost directly attributable to bringing assets to its location and working condition or its intended use.

Depreciation

Depreciation on Tangible Assets, PPE is charged on WDV method as per the useful life prescribed in the Companies Act, 2013 and in the manner specified therein. 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 any.Depreciation on fixed assets added/ disposed off/ discarded during the year is provided on a pro-rata basis with reference to the month of addition/disposal/discarding.

UsefulLife

Useful lives of property plant and equipment are based on the life prescribed in Schedule II of the Companies Act, 2013. “

ii) Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets

Initial recognition and measurement

All financial assets are recognised 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. Purchases 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 trades) are recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified into following categories:

a) Financial Assets at amortized cost

b) Financial Assets at fair value through other comprehensive income (FVTOCI)

c) Financial Assets at fair value through profit or loss (FVTPL)

d) Impairment of financial assets

a) Financial Assets at amortised cost

A Financial Asset is measured at the amortised cost if both the following conditions are met:

-The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

-Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in other income in the statement of profit and loss.

b) Financial Assets at FVTOCI

A Financial Asset is measured at the amortised cost if both the following conditions are met:

-The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

-The asset’s contractual cash flows represent SPPI.

Financial Assets included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income (OCI). On derecognition of the asset, cumulative gain or loss previously recognized in OCI is reclassified to the statement of profit and loss. Interest earned whilst holding FVTOCI is reported as interest income using the EIR method.

c) Financial Assets at FVTPL

FVTPL is a residual category for Financial Assets.

Any asset, which does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.

Impairment of trade receivables

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the trade receivables.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition. Trade receivables are tested for impairment on a specific basis after considering the outstanding amount, security deposit collected, age bracket etc. and expectations about future cash flows.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e., removed from the Company’s balance sheet) when:

-The rights to receive cash flows from the asset have expired, or

-The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘passthrough’ arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

-When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company’s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables as appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, at transaction cost net of directly attributable transaction costs.

Subsequent measurement

The financial liabilities is measured at Amortised Cost.

Discounting of long-term financial assets / liabilities

All financial assets / liabilities are required to be measured at fair value on initial recognition. In case of financial liabilities / assets which are required to subsequently be measured at amortised cost, interest is accrued using the effective interest method.

iii Inventories

“Inventories consist of goods and to be measured at the lower of cost and net realisable value.

Net Realizable value is the estimated selling price in the ordinary course of business, less estimated cost of completion and estimated costs necessary to make sale.”

iv Impairment of non-financial assets

“The carrying amounts of the Company’s non-financial assets, other than inventories and deferred tax assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.

For goodwill and intangible assets that have indefinite lives or that are not yet available for use, an impairment test is performed each year at March 31. The recoverable amount of an asset or cash-generating unit (as defined below) is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or the cashgenerating unit.

For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”).

An impairment loss is recognized in the statement of profit and loss if the estimated recoverable amount of an asset or its cash-generating unit is lower than its carrying amount.

Impairment losses recognized in respect of cashgenerating units are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amount of the other

assets in the unit on a pro-rata basis.

An impairment loss in respect of goodwill is not reversed.

In respect of other assets, impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists.

An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount.

An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.”

v Cash & Cash Equivalents

Cash and bank balances comprise of cash balance in hand, in current accounts with banks,. Bank overdrafts that are repayable on demand and form an integral part of our cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows.

vi Leases

At the inception it is assessed, whether a contract is a lease or contains a lease. A contract is a lease or contains a lease if it conveys the right to control the use of an identified asset, for a period of time, in exchange for consideration. If lease asset held land & building are perpetual in nature, than it will be treated as Land & Building.

To assess whether a contract conveys the right to control the use of an identified asset, Company assesses whether the contract involves the use of an identified asset. Use may be specified explicitly or implicitly.

-Use should be physically distinct or represent substantially all of the capacity of a physically distinct asset.

-I f the supplier has a substantive substitution right, then the asset is not identified.

-Company has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use

-Company has the right to direct the use of the asset

In cases where the usage of the asset is predetermined, the right to direct the use of the asset is determined when Company has the right to use the asset or Company designed the asset in a way that predetermines how and for what purpose it will be used.

At the commencement or modification of a contract, that contains a lease component, Company allocates the consideration in the contract, to each lease component, on the basis of its relative standalone prices. For leases of property, it is elected not to separate non-lease components and account for the lease and non-lease components as a single lease component.

Company as a Lessee:

Company recognizes a right-of-use asset and a lease liability at the lease commencement date.

Right-Of-Use Asset (rou):

The right-of-use asset is initially measured at cost. Cost comprises of the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, any initial direct costs incurred by the lessee, an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located less any lease incentives received.

After the commencement date, a lessee shall measure the right-of-use asset applying cost model, which is Cost less any accumulated depreciation and any accumulated impairment losses and also adjusted for certain re-measurements of the lease liability

Right-of-use asset is depreciated using straight-line method from the commencement date to the end of the lease term. If the lease transfers the ownership of the underlying asset to the Company at the end of the lease term or the cost of the right-of-use asset reflects Company will exercise the purchase option, ROU will be depreciated over the useful life of the underlying asset, which is determined based on the same basis as property, plant and equipment.

Lease liability:

Lease liability is initially measured at the present value of lease payments that are not paid at the commencement date. Discounting is done using the implicit interest rate in the lease, if that rate cannot be readily determined, then using Company’s incremental borrowing rate. Incremental borrowing rate is determined based on entity’s borrowing rate adjusted for terms of the lease and type of the asset leased.

Lease payments included in the measurement of the lease liability comprises of fixed payments (including in substance fixed payments), variable lease payments that depends on an index or a rate, initially measured using the index or rate at the commencement date, amount expected to be payable under a residual value guarantee, the exercise price under a purchase option that the Company is reasonably certain to exercise, lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Company is reasonably certain not to terminate early.

Lease liability is measured at amortised cost using the effective interest method. Lease liability is remeasured when there is a change in the lease term, a change in its assessment of whether it will exercise a purchase, extension or termination option or a revised in-substance fixed lease payment, a change in the amounts expected to be payable under a residual value guarantee and a change in future lease payments arising from change in an index or rate.

When the lease liability is re-measured, corresponding adjustment is made to the carrying amount of the right-of use asset. If the carrying amount of the right-of-use asset has been reduced to zero it will be recorded in statement of profit and loss.

Right-of-use asset is presented under “Property Plant and Equipment” and lease liabilities are presented under “Financial liabilities” in the balance sheet.

Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases. The lease payments associated with these leases are recognised as an expense on a straight-line basis over the lease term.

vii Revenue Recognition

Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government. The Company has concluded that it is the principal in all of its revenue arrangements since it is the primary obligor in all the revenue arrangements as it has pricing latitude and is also exposed to inventory and credit risks.

However, Goods and Service Tax (GST) is not received by the Company on its own account. Rather, it is tax collected on value added to the commodity by the seller on behalf of the government. Accordingly, it is excluded from revenue.

Sale of products

Revenue from the sale of produts is recognised when the significant risks and rewards of ownership of the products have passed to the buyer, usually on delivery of the products. Revenue from the sale of products is measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates.

Sale of Service

Revenue from services rendered is recognised as and when services are rendered and related costs are incurred in accordance with the agreement.

Interest Income

For all financial assets measured either at amortised cost r at fair value through other comprehensive income, interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset or to the amortised cost of a financial liability. When calculating the effective interest rate, the Company estimates the

expected cash flows by considering all the contractual terms of the financial instrument but does not consider the expected credit losses.

viii Employee Benefit Expenses

Short Term Employee Benefits

All employee benefits payable within twelve months of rendering the service are recognised in the period in which the employee renders the related service.

Post- Employment Benefits

Defined Contribution Plan

Contribution to Defined Contribution Plans such as Provident Fund, Employees’ State Insurance Corporation, etc., are charged to the Statement of Profit and Loss as incurred.

Defined Benefit Plan

The present value of the obligation under such plans is determined based on an actuarial valuation by an independent actuary at the end of each year, using the Projected Unit Credit Method. In the case of gratuity, which is funded, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plans, to recognise the obligation on net basis.

Re-measurement

Remeasurement of net defined benefit liability, which comprises actuarial gains and losses and the return on plan assets (excluding interest) and the effect of the asset ceiling (if any excluding interest), are recognized immediately in other comprehensive income.

ix Foreign Exchange Transactions

Company has not made any forign transaction during the year.

x Finance Cost

“Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets.

A Qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use or sale.

All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred.”

xi Taxes on Income

Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or in OCI.

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. It is measured using tax rates enacted or substantively

enacted at the reporting date. Current tax also includes any tax arising from dividends.

Deferred tax

Deferred tax is recognized for the future tax consequences of deductible temporary differences between the carrying values of assets and liabilities and their respective tax bases at the reporting date, using the tax rates and laws that are enacted or substantively enacted as on reporting date. Deferred tax liability are generally recorded for all temporary timing differences.

xii Provisions, contingent liabilities and contingent assets

Provisions

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Contingent Liability

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent Assets

Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the period in which the change occurs.

xiii Earning per share

Basic earnings per share is computed by dividing the net profit for the period attributable to the equity shareholders of the Company by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity

shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

XIV Security Deposits

Security deposits assets are the moneys hold by the debtors for the performance gurantee as the same are part of the amount receivable from debtors only, they have been shown as book value only and not at fair value. Similarly in case of security deposit liability company has hold the amount for performance gurantee and the same being part of the amount payable to creditors only the same have been booked at book value only.

1.4 As the IND AS has been implemented for the first time, it’s crucial to acknowledge the role of management judgement and assumptions in this transition. The initial assumption and calculation has always an opportunity to enhance the understanding of the business case assumptions, refine the calculations and gradually improve the accuracy of presentation.

For, MAAK and Associates For and on behalf of the Board

Firm Registeration No. : 135024W Power and Instrumentation (Guj) Limited

Chartered Accountants

CA Marmik shah Padmaraj P Pillai Kavita P Pillai Rohit Maheshwari Shefali Kabra

Partner Director Director Chief Financial Officer Company Secretar

Membership No. : 133926 DIN:00647590 DIN:07731925 PAN- CLKPM9297E PAN- EHAPK2873Q

Date: 30 May, 2024 Place : Ahmedabad UDIN : 24133926BKCJPS3598

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Mar 31, 2023

1.3 Summary of Significant Accounting Policies

The accounting policies set out below have been applied consistently to all periods presented in the financial statements unless otherwise stated.

i Property, Plant and Equipment (PPE)

“Property, Plant and Equipment are stated at cost, net of recoverable taxes, trade discount and rebates less accumulated depreciation and impairment loss, if any.

Such cost include purchase price, borrowing cost and any cost directly attributable to bringing assets to its location and working condition or its intended use.

Depreciation

Depreciation on Tangible Assets, PPE is charged on WDV method as per the useful life prescribed in the Companies Act, 2013 and in the manner specified therein. 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 any. Depreciation on fixed assets added/ disposed off/ discarded during the year is provided on a pro-rata basis with reference to the month of addition/ disposal/discarding.

Useful Life

Useful lives of property plant and equipment are based on the life prescribed in Schedule II of the Companies Act, 2013. “

ii Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets

Initial recognition and measurement

All financial assets are recognised 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. Purchases 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 trades) are recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified into following categories:

a) Financial Assets at amortized cost

b) Financial Assets at fair value through other comprehensive income (FVTOCI)

c) Financial Assets at fair value through profit or loss (FVTPL)

d) Impairment of financial assets

a) Financial Assets at amortised cost

A Financial Asset is measured at the amortised cost if both the following conditions are met:

- The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

- Contractual terms of the asset give rise on specified dates to cash flows that are solely

payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in other income in the statement of profit and loss.

b) Financial Assets at FVTOCI

A Financial Asset is measured at the amortised cost if both the following conditions are met:

- The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

- The asset''s contractual cash flows represent SPPI.

Financial Assets included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income (OCI). On derecognition of the asset, cumulative gain or loss previously recognized in OCI is reclassified to the statement of profit and loss. Interest earned whilst holding FVTOCI is reported as interest income using the EIR method.

c) Financial Assets at FVTPL

FVTPL is a residual category for Financial Assets. Any asset, which does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.

Impairment of trade receivables

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the trade receivables.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition. Trade receivables are tested for impairment on a specific basis after considering the outstanding amount, security deposit collected, age bracket etc. and expectations about future cash flows.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e., removed from the Company''s balance sheet) when:

- The rights to receive cash flows from the asset have expired, or

- The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘passthrough'' arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

- When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company''s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables as appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, at transaction cost net of directly attributable transaction costs.

Subsequent measurement

The financial liabilities is measured at Amortised Cost.

Discounting of long-term financial assets / liabilities

All financial assets / liabilities are required to be measured at fair value on initial recognition. In case of financial liabilities / assets which are required to subsequently be measured at amortised cost, interest is accrued using the effective interest method.

iii Inventories

“Inventories consist of goods and to be measured at the lower of cost and net realisable value.

Net Realizable value is the estimated selling price in the ordinary course of business, less estimated cost of completion and estimated costs necessary to make sale.”

iv Impairment of non-financial assets

“The carrying amounts of the Company''s non-financial assets, other than inventories and deferred tax assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset''s recoverable amount is estimated.

For goodwill and intangible assets that have indefinite lives or that are not yet available for use, an impairment test is performed each year at March 31. The recoverable amount of an asset or cash-generating unit (as defined

below) is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or the cash-generating unit.

For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”).

An impairment loss is recognized in the statement of profit and loss if the estimated recoverable amount of an asset or its cash-generating unit is lower than its carrying amount.

Impairment losses recognized in respect of cashgenerating units are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amount of the other assets in the unit on a pro-rata basis.

An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists.

An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount.

An impairment loss is reversed only to the extent that the asset''s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.”

v Cash & Cash Equivalents

Cash and bank balances comprise of cash balance in hand, in current accounts with banks,. Bank overdrafts that are repayable on demand and form an integral part of our cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows.

vi Leases

At the inception it is assessed, whether a contract is a lease or contains a lease. A contract is a lease or contains a lease if it conveys the right to control the use of an identified asset, for a period of time, in exchange for consideration.

If lease asset held land & building are perpetual in nature, than it will be treated as Land & Building.

To assess whether a contract conveys the right to control the use of an identified asset, Company assesses whether the contract involves the use of an identified asset. Use may be specified explicitly or implicitly.

- Use should be physically distinct or represent substantially all of the capacity of a physically distinct asset.

- If the supplier has a substantive substitution right, then the asset is not identified.

- Company has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use

- Company has the right to direct the use of the asset

- In cases where the usage of the asset is predetermined, the right to direct the use of the asset is determined when Company has the right to use the asset or Company designed the asset in a way that predetermines how and for what purpose it will be used.

At the commencement or modification of a contract, that contains a lease component, Company allocates the consideration in the contract, to each lease component, on the basis of its relative standalone prices. For leases of property, it is elected not to separate non-lease components and account for the lease and non-lease components as a single lease component.

Company as a Lessee:

Company recognizes a right-of-use asset and a lease liability at the lease commencement date.

Riaht-Of-Use Asset (ROU):

The right-of-use asset is initially measured at cost. Cost comprises of the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, any initial direct costs incurred by the lessee, an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located less any lease incentives received.

After the commencement date, a lessee shall measure the right-of-use asset applying cost model, which is Cost less any accumulated depreciation and any accumulated impairment losses and also adjusted for certain re-measurements of the lease liability

Right-of-use asset is depreciated using straight-line method from the commencement date to the end of the lease term. If the lease transfers the ownership of the underlying asset to the Company at the end of the lease term or the cost of the right-of-use asset reflects Company will exercise the purchase option, ROU will be depreciated over the useful life of the underlying asset, which is determined based on the same basis as property, plant and equipment.

Lease liability:

Lease liability is initially measured at the present value of lease payments that are not paid at the commencement date. Discounting is done using the implicit interest rate in the lease, if that rate cannot be readily determined, then using Company''s incremental borrowing rate. Incremental borrowing rate is determined based on entity''s borrowing rate adjusted for terms of the lease and type of the asset leased.

Lease payments included in the measurement of the lease liability comprises of fixed payments (including in

substance fixed payments), variable lease payments that depends on an index or a rate, initially measured using the index or rate at the commencement date, amount expected to be payable under a residual value guarantee, the exercise price under a purchase option that the Company is reasonably certain to exercise, lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Company is reasonably certain not to terminate early.

Lease liability is measured at amortised cost using the effective interest method. Lease liability is re- measured when there is a change in the lease term, a change in its assessment of whether it will exercise a purchase, extension or termination option or a revised in-substance fixed lease payment, a change in the amounts expected to be payable under a residual value guarantee and a change in future lease payments arising from change in an index or rate.

When the lease liability is re-measured, corresponding adjustment is made to the carrying amount of the right-of use asset. If the carrying amount of the right-of-use asset has been reduced to zero it will be recorded in statement of profit and loss.

Right-of-use asset is presented under “Property Plant and Equipment” and lease liabilities are presented under “Financial liabilities” in the balance sheet.

Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases. The lease payments associated with these leases are recognised as an expense on a straight-line basis over the lease term.

vii Revenue Recognition

Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of

payment and excluding taxes or duties collected on behalf of the government. The Company has concluded that it is the principal in all of its revenue arrangements since it is the primary obligor in all the revenue arrangements as it has pricing latitude and is also exposed to inventory and credit risks.

However, Goods and Service Tax (GST) is not received by the Company on its own account. Rather, it is tax collected on value added to the commodity by the seller on behalf of the government. Accordingly, it is excluded from revenue.

Sale of products

Revenue from the sale of products is recognised when the significant risks and rewards of ownership of the products have passed to the buyer, usually on delivery of the products. Revenue from the sale of products is measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates.

Sale of Service

Revenue from services rendered is recognised as and when services are rendered and related costs are incurred in accordance with the agreement.

Interest Income

For all financial assets measured either at amortised cost or at fair value through other comprehensive income, interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset or to the amortised cost of a financial liability. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument but does not consider the expected credit losses.

viii Employee Benefit Expenses Short Term Employee Benefits

All employee benefits payable within twelve months of rendering the service are recognised in the period in which the employee renders the related service.

Post- Employment Benefits

Defined Contribution Plan

Contribution to Defined Contribution Plans such as Provident Fund, Employees'' State Insurance Corporation, etc., are charged to the Statement of Profit and Loss as incurred.

Defined Benefit Plan

The present value of the obligation under such plans is determined based on an actuarial valuation by an independent actuary at the end of each year, using the Projected Unit Credit Method. In the case of gratuity, which is funded, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plans, to recognise the obligation on net basis.

Re-measurement

Remeasurement of net defined benefit liability, which comprises actuarial gains and losses and the return on plan assets (excluding interest) and the effect of the asset ceiling (if any excluding interest), are recognized immediately in other comprehensive income.

ix Foreign Exchange Transactions

Company has not made any forign transaction during the year.

x Finance Cost

“Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A Qualifying asset is one that

necessarily takes a substantial period of time to get ready for its intended use or sale.

All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred.”

xi Taxes on Income

Income tax expense comprises current and deferred tax.

It is recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or in OCI.

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. It is measured using tax rates enacted or substantively enacted at the reporting date. Current tax also includes any tax arising from dividends.

Deferred tax

Deferred tax is recognized for the future tax consequences of deductible temporary differences between the carrying values of assets and liabilities and their respective tax bases at the reporting date, using the tax rates and laws that are enacted or substantively enacted as on reporting date. Deferred tax liability are generally recorded for all temporary timing differences.