Pulz Electronics Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

Mar 31, 2025

1. CORPORATE INFORMATION

Pulz Electronics Limited ("The Company") is a public limited company incorporated and domiciled in India and has its registered office at Palghar, Maharashtra, India. The equity shares of the Company are listed on the SME platform of the National Stock Exchange [NSE]. The Company is into developing and manufacturing audio systems and solutions for cinema, pro audio and home audio industries.

The Standalone Financial Statements for the year ended March 31,2025 are approved by the Company’s Board of Directors and authorised for issue on May 30,2025.

1.1 SIGNIFICANT ACCOUNTING POLICIES

a. BASIS OF PREPARATION

The financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013 ("the Act") read with the Companies (Accounting Standards) Rules, 2021 and the relevant provisions of the Act. In light of Rule 4A of the Companies (Accounts) Rules, 2014, the items contained in these financial statements are in accordance with the definitions and other requirements specified in theAccounting Standards.

b. Revenue Recognition

Sales are exclusive of GST and are stated net of discounts and commission. Sale of products is recognized when risk and rewards of ownership of the products are passed on to the customers, which is generally on dispatch of goods. Returns against sales and price difference are recognized as and when ascertained and are netted from the amount of sales for the year. Rebates, discounts and commission are accounted for to the extent that these are due and/or reasonably ascertainable.

c. Property, Plant and Equipment (PPE)

Property, Plant and Equipment are stated at cost, less accumulated depreciation and impairment loss. Cost comprises the purchase price including non-refundable duties and taxes, expenditure which is directly attributable to bring the asset to the location and condition necessary for its intended use.

d. IntangibleAssets

Intangible assets are stated at cost less accumulated amortisation; cost includes any directly attributable expenditure on making the assets ready for its intended use.

IntangibleAssets Under Development

Expenses incurred on in-house development of proprietary audio technologies and data for speaker systems are shown as Intangible asset under development till the asset is ready to use.

Intangible assets under development are recognised when the Company can demonstrate:

• Technical feasibility of completing the intangible asset so that if will be available for use or I I sale;

• Its intention to complete the asset;

• Its ability to use of sell the asset;

• How the asset will generate probable future economic benefits; and

• The availability of adequate resources to complete the development

e. Depreciation andAmortisation

I Depreciation on PPE, other than Freehold land, is provided on the "Straight-line Method” as per useful lives specified in Part C of Schedule II to the Companies Act, 2013 except for the following:

Motor Car-5 years

Tools and Equipment - 5 years

Depreciation on PPE added / disposed off / discarded during the year has been provided on pro-rata basis with reference to the date of addition / disposal / discarded respectively. Intangible assets are amortised over their respective individual estimated useful lives on a Straight-line basis, from the date they are available for use.

f. Impairment ofAssets

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets may have been impaired.

If any such indication exists, the recoverable amount of asset / cash generating unit is determined on the Balance Sheet date and if it is less than its carrying amount, the carrying amount of the asset / cash generating unit is reduced to the said recoverable amount. Subsequently, if there is a change in the indication, since the last impairment was recognised, so that recoverable amount of an asset exceeds its carrying amount, an impairment recognised for an asset in prior accounting period is reversed. The recoverable amount is measured as the higher of the net selling price and value in use of such assets / cash generating unit, which is determined by the present value of the estimated future cash flows.

g. Investments

Investments are Long-term, unless stated otherwise and are stated at cost except where there is diminution in value other than temporary, in which case a provision is made to the carrying value to recognize the diminution.

h. Inventories

Inventories consists of Raw Materials,Finished Goods and Stock-in-Trade and are measured at lower of cost and net realisable value. Cost of inventories is determined on a First In First Out (“FIFO”).

Raw materials, packing materials and consumables includes cost of purchases after adjusting for GST, direct expenses and other cost incurred in bringing the inventories to their present location and condition.

Work-in-progres goods has been identified as such depending upon stage of completion of finished goods technically determined by the management. Work in Progress goods are valued at raw materials cost as calculated above.

Finished goods are valued at lower of cost or net realisable value. Finished goods are valued based on weighted average cost of production.

I I i. Foreign Currency Transaction:

Transactions in foreign currency are recorded at the exchange rates prevailing on the date of transaction. Monetary items which are denominated in foreign currency are translated I I and reported using the exchange rates prevailing on the date of the balance sheet. Non-| | monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rates at the date of the transactions. Exchnage differences arising on the settlement of monetary items or on reporting at the rates different from those

at which they were initially recorded during the year, or reported in previous financial J statements, are recognised as income or expenses in the Statement of Profit and Loss in the I

year in which they arise.

j. Retirement Benefits Defined Contribution Plan

The Company’s contribution to Provident Fund and Employee State Insurance Scheme are considered as defined contribution plans and are charged as an expense based on the amount of contribution required to be made and when services are rendered by the employees.

Defined Benefit Plan

Gratuity - The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is eligible for gratuity on post-employment at 15 days salary (last drawn salary) for each completed year of service as per the rules of the Company. The aforesaid liability is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of the financial year.

Compensated Absences - The Company does not allow the Accumulation of compensated absences. Therefore the recognition of obligation towards the same does not arise at the end of the year.

k. Borrowing Costs

Borrowing costs are interest and other costs incurred in connection with the borrowing funds. Borrowing costs, less any income on temporary investment of those borrowings, that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as a part of the cost of that asset. Other borrowing costs are recognised as an expense in the Statement of Profit and Loss in the period in which they are incurred.

l. Taxation Current Income Tax

Provision for current tax is made on the estimated taxable income at the rate applicable to the relevant assessment year.

Deferred Tax

Deferred tax is recognised on timimg differences between the taxable and accounting income. The tax effect is calculated on accumulated timing differences at the year end based on tax rates and laws enacted or substantially enacted as of the balance sheet date.

In the event of unabsorbed depreciation and carryforward of losses, deferred tax assets are recognised only to the extent that there is virtual certainity that sufficient future taxable income will be available to realise such deferred tax assets. In other situations, deferred tax assets are recognised only to the extent that there is a reasonable certainity that sufficient future taxable income will be available to realise such deferred tax assets.

m. Provisions and Contingent Liabilities and ContingentAssets

The Company recognizes as provisions, the liabilities being present obligation arising out of I I past events, the settlement of which is expected to result in an outflow of resources which I can be measure only by using a substantial degree of estimation.

I I Contingent liabilities are disclosed by way of notes to the financial statements after careful | | evaluation by the management of the facts and the legal aspects of the matter involved.

Contingent assets are neither recognized nor disclosed.

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Mar 31, 2024

NOTE 1: SIGNIFICANT ACCOUNTING POLICIES

I These financial statements have been prepared in accordance with the Generally Accepted I I

¦ Accounting Principles (GAAP) in India under the historical cost convention on accrual basis and i i

in accordance with Accounting Standards prescribed under section 133 of the companies Act, i

2013. ; ; ; | |

The consolidated financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those followed in the previous year. In the opinion of the Management, based on the analysis of the significant transactions at joint ventures, no material adjustments are required to be made to comply with group accounting policies / Indian GAAP.

Subsidiary/Joint Venture

Name of the Companies Percentage of shareholding

R & S Electronics Systems India Pvt. Ltd. 99.98%

a) Principles of consolidation

1. The Financial statements of the company and its Subsidiary Company is combined on a line-by-line basis by adding together the book values of like items of assets, liabilities, incomes and expenses, after eliminating material intragroup balances and intra-group transactions resulting in unrealized profits or losses in accordance with Accounting Standard (AS21) "Consolidated Financial Statements”.

2. As far as possible, the consolidated financial statements are prepared using uniform accounting policies for like transactions and other events in similar circumstances and appropriate adjustments are made to the financial statements of the Subsidiary when they are used in preparing the consolidated financial statements that are presented in the same manner as the Company''s separate financial statements.

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared under the historical cost convention, in accordance with applicable accounting standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provision of the Companies Act, 2013 as applicable.

The accounts have been prepared on a going concern basis under historical cost convention.

Accounting policies not specifically referred to otherwise are in consonance with generally accepted accounting principles followed by the Company

2. PROPERTY, PLANT & EQUIPMENTS [ \ 11

i Fixed Assets are recorded at cost of acquisition inclusive of all relevant levies and other i ¦

¦ incidental expenses. They are stated at historical cost. i i l ¦ II

Depreciation on fixed assets is being provided on Straight Line Method as per the useful life

¦ prescribed in Schedule II of the Companies Act, 2013. Depreciation in respect of addition to fixed 111 assets is provided on pro-rata basis from month to month in which such assets acquired/installed.

Depreciation on fixed assets sold, discarded or demolished during the year is being provided at their respective rate up to the month in which such assets are sold, discarded or demolished.

3. INVESTMENTS

I Investments are Long-term, unless stated otherwise and are stated at cost except where there is II

¦ diminution in value other than temporary, in which case a provision is made to the carrying value i i

to recognize the diminution. ¦ ¦ ¦ hi

4. INVENTORIES

Inventories are valued at lower of cost (FIFO) basis or net realizable value.

i) Raw materials, Packing materials and consumables are valued at cost using First -in-First Out method. The cost of Raw materials and consumables includes cost of purchases after adjusting for GST, direct expenses and other cost incurred in bringing the inventories to their present location and condition.

ii) Work in Progress goods has been identified as such depending upon stage of completion of finished goods technically determined by the management. Work in Progress goods are valued at raw materials cost as calculated above plus weighted average cost of production including appropriate proportion of cost of conversion to the extent of process, which is estimated and certified by the management.

iii) Finished goods are valued at lower of cost or net realisable value. Finished goods are valued based on weighted average cost of production, including appropriate proportion of cost of conversion.

5. FOREIGN CURRENCY TRANSACTIONS.

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transaction. Foreign Currency denominated assets and liabilities at the balance sheet date is translated at the exchange rate prevailing on the date of balance sheet.

6. REVENUE FROM OPERATIONS

I) Sales are exclusive of GST and are stated net of discounts and commission. Sale of products is recognized when risk and rewards of ownership of the products are passed on to the customers, which is generally on dispatch of goods. Returns against sales and price difference are recognized as and when ascertained and are netted from the amount of sales for the year. Rebates, discounts and commission are accounted for to the extent that these are due and/or reasonably ascertainable.

7. EMPLOYEE BENEFITS

Company''s contribution to recognized provident fund is defined contribution plan and is charged to the Profit and Loss Account on accrual basis. There are no other obligations than the ¦ contribution payable to the fund. i i i ¦ i

I Contribution to gratuity fund is defined benefit obligation and is provided for on basis of an i i actuarial valuation on projected accrued benefit method made at the end of each financial year.

I Employees are allowed to accumulate only seven days of earned leave .Any leaves above seven 111 days shall be encashed at every 31 st December of the year.

8. EARNINGS PER SHARE

I Basic earning per share is computed by dividing the net profit after tax attributable to equity I

¦ shareholders for the year by the weighted average number of equity shares outstanding during i

the year. Diluted earning per share is computed by dividing the net profit after tax attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares, if any.

9. ACCOUNTING FOR TAXES ON INCOME

Tax expense comprises of current and deferred tax. Provision for current tax is made, based on the tax payable under the Income-tax Act, 1961. Deferred tax assets and liabilities from timing differences between taxable income and accounting income is accounted for using the tax rates and the tax laws enacted or substantially enacted as on the balance sheet date.

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Mar 31, 2023

NOTE 1: SIGNIFICANT ACCOUNTING POLICIES

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared under the historical cost convention, in accordance with applicable accounting standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provision of the CompaniesAct, 2013 as applicable.

The accounts have been prepared on a going concern basis under historical cost convention. Accounting policies not specifically referred to otherwise are in consonance with generally accepted accounting principles followed by the Company.

2. PROPERTY, PLANT & EQUIPMENTS

Fixed Assets are recorded at cost of acquisition inclusive of all relevant levies and other incidental expenses. They are stated at historical cost.

Depreciation on fixed assets is being provided on Straight Line Method as per the useful life prescribed in Schedule II of the CompaniesAct, 2013. Depreciation in respect of addition to fixed assets is provided on pro-rata basis from month to month in which such assets acquired/installed.

Depreciation on fixed assets sold, discarded or demolished during the year is being provided at their respective rate up to the month in which such assets are sold, discarded or demolished.

3. INVESTMENTS

Investments are Long-term, unless stated otherwise and are stated at cost except where there is diminution in value other than temporary, in which case a provision is made to the carrying value to recognize the diminution.

4. INVENTORIES

Inventories are valued at lower of cost (FIFO) basis or net realizable value.

I) Raw materials, Packing materials and consumables are valued at cost using First -in-First Out method. The cost of Raw materials and consumables includes cost of purchases after adjusting for GST, direct expenses and other cost incurred in bringing the inventories to their present location and condition.

ii) Work in Progress goods has been identified as such depending upon stage of completion of finished goods technically determined by the management. Work in Progress goods are valued at raw materials cost as calculated above plus weighted average cost of production including appropriate proportion of cost of conversion to the extent of process, which is estimated and

¹ certified by the management.

iii) Finished goods are valued at lower of cost or net realisable value. Finished goods are valued based on weighted average cost of production, including appropriate proportion of cost of

I conversion.

5. FOREIGN CURRENCY TRANSACTIONS.

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transaction. Foreign Currency denominated assets and liabilities at the balance sheet date is translated at the exchange rate prevailing on the date of balance sheet.

6. REVENUE FROM OPERATIONS

I) Sales are exclusive of GST and are stated net of discounts and commission. Sale of products is recognized when risk and rewards of ownership of the products are passed on to the customers, which is generally on dispatch of goods. Returns against sales and price difference are recognized as and when ascertained and are netted from the amount of sales for the year. Rebates, discounts and commission are accounted for to the extent that these are due and/or reasonably ascertainable.

7. EMPLOYEE BENEFITS

Company''s contribution to recognized provident fund is defined contribution plan and is charged to the Profit and Loss Account on accrual basis. There are no other obligations than the contribution payable to the fund.

Contribution to gratuity fund is defined benefit obligation and is provided for on basis of an actuarial valuation on projected accrued benefit method made atthe end of each financial year.

Employees are allowed to accumulate only seven days of earned leave .Any leaves above seven days shall be encashed at every 31^st December of the year.

8. EARNINGS PERSHARE

Basic earnings per share is computed by dividing the net profit after tax attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year. Diluted earning per share is computed by dividing the net profit after tax attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares, if any.

9. ACCOUNTING FOR TAXES ON INCOME

Tax expense comprises of current and deferred tax. Provision for current tax is made, based on the tax payable under the Income-tax Act, 1961. Deferred tax assets and liabilities from timing differences between taxable income and accounting income is accounted for using the tax rates and the tax laws enacted or substantially enacted as on the balance sheet date.