2.8 Provisions and contingent liabilities

Provision are recognized when the Company has a present obligation
(legal or constructive) as a result of a past event, it is probable that the
Company will be required to settle the obligation, and a reliable estimate
can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the
consideration required to settle the present obligation at the end of the
reporting period, taking into account the risks and uncertainties

surrounding the obligation. When a provision is measured using the cash
flows estimated to settle the present obligation, its carrying amount is the
present value of those cash follows ( when the effect of the time value of
money is material).

When some or all of economic benefits required to settle a provision are
expected to be recovered from a third party, a receivable is recognized
as on asset if it is virtually certain the reimbursements will be received and
amount of the receivable can be measured reliably.

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. When there is a possible obligation or a present
obligation that the like hood of outflow of resources is remote, no provision
or disclosure is made. The Company complies with the amended Ind AS
37.

2.9. Revenue Recognition

The Company recognized revenue in accordance with Accounting
Standard Ind AS 115, as per which revenue should be recognized when
the performance obligation is satisfied.

Revenue is measured at the fair value of the consideration received or
receivable. Amount disclosed as revenue are net of returns, rebates,
goods & service tax and value added taxes.

The Company recognizes revenue when the amount of revenue can be
reliably measured, it is probable that future economic benefits will flow to
the entity and specific criteria have been met for each of the Company’s
activities, as described below. The Company bases its estimate of return
on historical results, taking into consideration the type of customer, the
type of transaction and the specifics of each arrangement.

Revenue recognized from major business activities.

2.10 Sale of goods:

Revenue from sale of goods is recognized as and when the Company
satisfies performance obligations by transferring control of the promised
goods to its customers.

2.11 Government Grants

Government grants are not recognized until there is reasonable assurance
that the company will comply with the conditions attaching to them and
that the grants will be received.

As per amendment in lnd-AS20 "Government Grants’ w.e.f. April 1,2018 the
Company had opted to present the grant received/ receivable after April
01,2018 related to assets as deduction from the carrying value of such
specific assets.

Foreign Currencies Transactions

Since functional currency of the company is Indian Rupees (INR) Which is
also the presentation currency, all other currencies are accounted for as
foreign Currency.

Transactions denominated in foreign currencies into by the Company are
initially recorded at the Exchange rated prevailing on the date of the
transaction..

Any income or expenditure, either or settlement or on translation, on
account of difference in exchange rate as on the reporting date and the
exchange rate as on the date of recognition of the them, is recognized in
the statement of profit and loss.

Employee Benefits

A. Short Term Employee Benefits:

All employee benefits payable wholly within twelve months or
rendering the service are classified as short term employee benefits
and they are recognized in the period in which the employee renders
the related service.

B. Post-employment Benefits

Provident Fund Scheme and Employees State Insurance Scheme:

Eligible employees receive benefits of a state run provident fund and
insurance scheme. These are defined contribution plans. Both the eligible
employee and the Company make monthly contributions to provident
fund plan and the insurance scheme equal to a specified percentage of
the covered employees’ salary. There are no other obligations other that
the contribution payable to the relevant fund scheme.

2.12 Expenditure

Expenses are accounted on accrual basis.

2.13 Taxation

Income tax expense represents the sum of the tax currently payable and
deferred tax

2.14 Current Tax

The tax currently payable is based on taxable profit for the year. Taxable
profit differs from ‘profit before tax’ as reported in the statement of profit and
loss because of items of income or expense that are taxable or deductible in
other years and items that are never taxable or deductible. The Company’s
current tax is calculated using tax rates that have been enacted or
substantively enacted by the end of the reporting period.

Current Income Tax assets/liabilities for current year is recognized at the
amount expected to be paid to and/or recoverable from the tax authorities.

2.15 Deferred Tax

Deferred tax is recognized on temporary differences between the carrying
amounts of assets and liabilities in the financial statements and the
corresponding tax basis used in the computation of taxable profit. Deferred
tax liabilities are generally recognized for all taxable temporary differences.
Deferred tax assets are generally recognized for all deductible temporary
differences to the extent that it is probable that taxable profits will be
available against which those deductible temporary differences can be

utilized, Such deferred tax assets and liabilities are not recognized if the
temporary difference arises from the initial recognition ( other that in a
business combination) of assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit.

That carrying amount of deferred tax assets is reviewed at the end of each
reporting period and reduced to the extent that it is no longer probable that
sufficient taxable profits will be available to allow all or part of the asset to be
recovered.

Deferred tax liabilities and assets are measured at the tax rates that are
expected to apply in the period in which the liability is settled or the asset
realized, based on tax rates ( and tax laws) that have been enacted or
substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax
consequences that would follow from the manner in which the Company
expects, at the end of the reporting period, to recover or settle the carrying
amount of its assets and liabilities.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future income tax
liability, is considered as an asset if there is convincing evidence that the
Company will pay normal Income Tax. Accordingly, MAT Credit is recognized
as asset in the Balance Sheet when it is probable that future economic
benefit associated with it will flow to the Company.

2.16 Appendix C to Ind AS 12 Uncertainly over Income Tax Treatment

The appendix addresses the accounting for income taxes when tax
treatments involve uncertainly that affects the application of Ind AS 12
Income Taxes. It does not apply to taxes or levies outside the scope of Ind AS
12, nor does it specifically include requirements relating to interest and
penalties associated with uncertain tax treatments. The Appendix
specifically, addressed the following:

• Whether an entity considers uncertain tax treatments separately

• The assumptions an entity makes about the examination of tax
treatments by taxation authorities.

• How an entity determines taxable profit (tax loss), tax bases,
unused tax losses, unused tax credits and tax rates

• How an entity considers changes in facts and circumstances

The Company determines whether to consider each uncertain tax treatment
separately or together with one or more other uncertain tax treatments and
uses the approach that better predicts the resolution of the uncertainty.

The Company applies significant judgments in indentifying uncertainties over
income tax treatments.

2.17 Earnings per Share

Basic earnings per equity share are computed by dividing the net profit
attributable to the equity holders of the Company by the weighted average
number of equity share outstanding during the period. Diluted earnings per
equity share is computed by dividing the net profit attributable to the equity
holders of the Company by the weighted average number of equity shares
considered for deriving basic earnings per equity share and also the
weighted average number of equity shares that could have been issued
upon conversion of all dilutive potential equity shares. The dilutive potential
equity shares are adjusted for the proceeds receivable had the equity shares
have been actually issued at fair value (i.e. the average market value of the
outstanding equity shares). Divine potential equity shares are deemed
converted as of the beginning of the period, unless issued at a later date.
Dilutive potential equity shares are determined independently for each
period presented.

2.18 Significant accounting judgments estimate and assumptions:

In the application of the Company’s accounting policies, which are
described as stated above , the Board of Directors of the Company are

required to make judgments, estimates and assumptions about the carrying
amounts of assets and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are based on historical
experience and other factors that are considered to be relevant. Actual
results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognized in the period in which the
estimate is revised if the revision affects only the period of the revision and
future periods if the revision affects both current and future periods.

2.19.1 Key sources of uncertainty

In the application of the Company accounting policies, the management of
the Company is required to make judgments, estimates and assumptions
about the carrying amounts of assets and liabilities that are not readily
apparent from other sources. The estimates and associated assumptions are
based on historical experience and other factors that are considered to be
relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognized in the period in which the
estimate is revised it the revision affects only that period or in the period of the
revision and future periods if the revision affects both current and future
periods.

28 SEGMENT REPORTING

Segment information as required by Accounting Standard 17 on “Segment
Reporting” issued by Companies (Accounting Standard) Rules, 2006 is not
applicable the company.

29. EARNING PER SHARE

The calculation of Earning Per Share (EPS) as disclosed in the statement of profit
and loss has been made in accordance with Accounting Standard (Ind AS)-33 on
“Earning Per Share" issued by Companies (Accounting Standard) Rules, 2006.