Contingent liabilities

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the
existence of which will be confirmed only by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the Company or a present obligation that
arises from past events where it is either not probable that an outflow of resources will be required
to settle the obligation or a reliable estimate of the amount cannot be made

A Contingent liability also arises in extremely rare cases where there is a liability that cannot be
measured reliably. The Company does not recognize a contingent liability but discloses its existence
in the financial statements

j) Revenue from Operationsa) Sale of goods:

Revenue from sale of goods is recognised when control of the products being sold is transferred
to our customer and when there are no longer any unfulfilled obligations. The Performance

Obligations in our contracts are fulfilled at the time of dispatch, delivery or upon formal customer
acceptance depending on terms with customers.

Revenue is measured on the basis of contracted price, after deduction of any trade discounts,
volume rebates and any taxes or duties collected on behalf of the Government such as Goods and
Services Tax, etc. Accumulated experience is used to estimate the provision for such discounts
and rebates. Revenue is only recognised to the extent that it is highly probable a significant
reversal will not occur.

Our customers have the contractual right to return goods only when authorised by the Company.
An estimate is made of goods that will be returned and a liability is recognised for this amount
using a best estimate based on accumulated experience.

b) Revenue from operations is accounted for on the basis of billings to consumers and

includes unbilled revenues accrued up to the end of the accounting year. Sale of product is
accounted for based on tariff rates.

c) Commission income on consignment sales:

Commission income on consignment sales is charged for rendering of services and for the use of
the Company's sales and distribution network. Such revenue is recognised in the accounting
period in which the services are rendered in accordance with the agreement with the parties.

d) Government grants, subsidies and export incentives

Government grants and subsidies are recognized when there is reasonable assurance that the
Company will comply with the conditions attached to and the grants/ subsidy will be received.
Government grants whose primary condition is that the Company should purchase, construct or
otherwise acquire capital assets are presented by deducting them from the carrying value of the
assets.

Other government grants and subsidies are recognized as income over the periods necessary to
match them with the costs for which they are intended to compensate, on a systematic basis

k) Other Income

Interest income is recognized on time proportion basis taking into account the amount outstanding
and the applicable interest rate. Dividend income is accounted for when the right to receive is
established.

l) Employee Benefits Expense
Short -Term Employee Benefits:

Short-term employee benefits like salaries, wages, bonus and welfare expenses payable wholly
within twelve months of rendering the services are accrued in the year in which the associated
services are rendered by the employees.

Defined contribution plans:

Contributions to defined contribution schemes such as employees' state insurance, labour welfare
fund, superannuation scheme, employee pension scheme etc. are charged as an expense based on the
amount of contribution required to be made as and when services are rendered by the employees.
Company's provident fund contribution, in respect of certain employees, is made to a Government
administered fund and charged as an expense to the standalone statement of profit and loss. The
above benefits are classified as Defined Contribution Schemes as the Company has no further
defined obligations beyond the monthly contributions.

Defined benefit plans:

The Company has not defined scheme for post-employment in the form of Gratuity and leave
encashment as none of the employees have covered 5 years of continuous service in the Company.
Also, no provision has been made in the accounts towards encashment of earned leaves, since their
encashment as per the rules of the Companies does not fall due on the said date. The same shall be
accounted for as and when required.

m) Earnings 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.

n) Cash Flow Statement

Cash flows are reported using the direct method, whereby profit/loss after tax is adjusted for the
effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts
or payments. The cash flows from operating, investing and financing activities of the Company are
segregated based on the available information.

o) Foreign currency transactions and translations

Initial recognition:

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates
prevailing on the date of the transaction or at the rates that closely approximate the rate at the date
of transaction.

Measurement of foreign currency monetary items at the Balance Sheet date:

Foreign currency monetary items (other than derivative contracts) of the Company and its net
investment in non- integral foreign operations outstanding at the Balance Sheet date are restated at
the year-end rates.

In the case of integral operations, assets and liabilities (other than non-monetary items), are
translated at the exchange rate prevailing on the Balance sheet date. Non-monetary items are carried
at historical cost. Revenue and expenses are translated at the average exchange rates prevailing
during the year. Exchange differences arising out of these translations are charged to the Statement
of Profit and Loss.

Treatment of exchange differences:

Exchange differences arising on settlement/restatement of short-term foreign currency monetary
assets and liabilities of the Company and its integral foreign operations are recognized as income or
expense in the Statement of Profit and Loss. The exchange differences on restatement/settlement of
loans to non-integral foreign operations that are considered as net investment in such operations are
accumulated in a "Foreign currency translation reserve" until disposal/recovery of the net
investment.

p) Borrowing costs

Borrowing costs include interest; amortization of ancillary costs incurred and exchange differences
arising from foreign currency borrowings to the extent they are regarded as an adjustment to the
interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the
acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the
loan. Borrowing costs, allocated to and utilized for qualifying assets, pertaining to the period from
commencement of activities relating to construction/ development of the qualifying asset up to the
date of capitalization of such asset is added to the cost of the assets. Capitalization of borrowing
costs is suspended and charged to the Statement of Profit and Loss during extended periods when
active development activity on the qualifying asset is interrupted.

q) Service Tax/GST Input Credit

GST input credit is accounted for in the books in the period in which the underlying service received
is accounted and when there is no uncertainty in availing/utilizing the credits.

r) Material event

Material events occurring after Balance Sheet date are taken into cognizance.

s) General Disclosure of Accounting Standards

Though other accounting standards also apply to the Company by virtue of the Companies
(Accounts) Rules, 2014 no disclosure for the same is being made as the Company has not done any
transaction to which the said accounting standards apply.