14. Provision and Contin#ent Liability: -
L A contingent liability is a possible obligation that arises from past events whose existence will
be confirmed by the occurrence or non-occurrence of one or more uncertain future events
beyond the control at the Company or a present obligation that is not recognized because it is
not probable that an outflow of resources will be required to settle the Obligation. A contingent
liability also arises In extremely rare cases where there it a liability that cannot be recognized
because It cannot be measured reliably. The Company does not recognize a contingent liability
but discloses its existence in the financial statements
li. Contingent liabilities, if material, are disclosed by way of notes unless the possibility of an
outflow of resources embodying the economic benefit Is remote and contingent assets, if any, Is
disclosed in the notes to financial statements.
iii. A prove ton b recognized, wnen company has a present obligation {legal or constructive! as a
result of pas events and it Is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation, in respect of which a reliable estimate can be
made for the amount of obligation. The expense retaring to the provision is presented m the
profit and loss net of any reimbursement.
15. Earnings Per Share
Basic Earnings per share Is computed by dividing the net profit after tax by the weighted average
number of equity snares outstanding during the period. For the purpose of calculating diluted
eammgs per share, the net profit for the period attributable to equity shareholders and the
weighted average number of shares outstanding during the period are adjusted for the effects of all
dilutive potential equity shares.
16. Revenue:-
Revenue Recognition:
I. Effective April 1, 2018, the Company has applied Ind AS 115 ‘Revenue from Contracts with
Customers’ which establishes a comprehensive framework for determining whether, how
much and when revenue Is to be recognized. Ind AS 115 'Revenue from Contracts with
Customers’ replaces Ind AS 18 ‘Revenue’. The Impact of the adoption of the standard on the
financial statements of the Company 1s insignificant.
Revenue from sole of goods b recognized when control of the pioducu being sold Is
transferred to our customer and when there are no longer any unfulfilled obligations.
It, From Service Contracts on pro rata basis over the period of the Contract.
IH. From Installation and Commissioning Contracts on completion of the Product Service
iv. From Commission Income as per the Contract or In Receipt of Credit Mote.
v. From Interest Income on Time Proportion Basis.
vl. From tease Rentals on the basis of respective lease agreements.
vll Reimbursement of expenses from parties outside India are accounted for as and when the
claim Is received.
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