2.7 PROVISIONS AND CONTINGENT LIABILITIES:

i) Provisions in respect of present obligations arising out of past events are made in the accounts
when reliable estimates can be made of the amount of the obligation.

ii) Contingent liabilities are disclosed by way of a note to financial statement, after careful evaluation
by the management of the facts and legal aspects of the matter involved.

2.8 BORROWING COST:

Borrowing cost that are attributable to the acquisition and construction of assets of a qualifying asset
are capitalised as part of the cost of such assets until such time as the asset is ready for its intended
use. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for
its intended use. All other Borrowing costs are recognised as an expense in the period in which they
are incurred.

2.9 CUSTOM DUTY:

Liabilities on account of Custom Duty on imported materials in transit or in bonded warehouse are
accounted only in the year in which the goods are cleared from the customs.

2.10 OPERATING LEASE:

Assets taken on lease under which all significant risks and rewards of ownership are effectively
retained by the lessor are classified as operating leases. Lease payments made under Operating
Leases are recognised as expenditure in accordance with respective Lease Agreements.

2.11 INCOME TAX:

i) The Provision for income tax (including fringe benefit tax) is made on the basis of estimated
taxable income for the current accounting year in accordance with the income Tax Act, 1961. The
deferred tax for the timing differences, (which are capable of reversal in subsequent period)
between the book and tax profits for the year is accounted for, using the tax rates and laws that
have been substantively enacted as of the balance sheet date. Deferred tax assets arising from
timing differences are recognised subject to consideration of prudence.

ii) MAT Credit if any is recognised as an asset only when and to the extent there is convincing
evidence that the company will pay normal income tax during the specified period. In accordance
with the recommendations contained in Guidance Note issued by the ICAI, the said asset is
created by way of a credit to the Profit and Loss account and shown as MAT Credit Entitlement.
The Company reviews the same at each balance sheet date.

2.12 FOREIGN CURRENCY TRANSACTION / TRANSLATION:

i) Transaction in foreign currency is initially recorded at a rate, which closely approximates the
exchange rate prevailing on the date of transaction.

ii) Year-end balances of monetary items denominated in foreign currency are translated at the year-
end rates. The exchange rate difference arising there from and the settlement is recognised as
income / expenditure in the respective accounts in the statement of profit and loss for the year.

2.13 INPUT GST CREDIT:

GST Input credits available, as per law, on input materials/ input services / capital goods are
deducted from the respective item cost.

2.14 EMPLOYEES BENEFITS:

Gratuity

The Company provides for gratuity, a defined benefit retirement plan (as the Gratuity Plana)

covering eligible employees. The Gratuity Plan provides a lump-sum payment to vested
employees at retirement, death, incapacitation or termination of employment, of an amount
based on the respective employee's salary and the tenure of employment with the Company.
Liabilities with regard to the Gratuity Plan are determined by actuarial valuation, performed by an
independent actuary, at each Balance Sheet date using the projected unit credit method.

The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as an
asset or liability Gains and losses through remeasurements of the net defined benefit liability /
(asset) are recognized in other comprehensive income. The actual return of the portfolio of plan
assets, in excess of the yields computed by applying the discount rate used to measure the
defined benefit obligation is recognized in other comprehensive income. The effect of any plan
amendments are recognized in net profit in the Statement of Profit and Loss.

Defined Contribution Plans

The Company makes specified monthly contributions towards Provident Fund and ESIC Fund. The
Company''s contribution is recognised as an expense in the Profit and Loss Statement during the
period in which the employee renders the related service.

Leave encashment

Accumulated leave of employees during a period of 12 months or as the end of the financial year
as the case may be is paid to employees and recognised as an expense in the Statement of Profit
and loss.

2.15 RELATED PARTY TRANSACTION:

Disclosure of transactions with Related Parties, as required by ‘’Accounting Standard 18- Related
Party Disclosure” has been set out in the Notes on Accounts. Related Parties have been identified on
the basis of representations made by key managerial personnel and information available with the
company.

2.16 IMPAIRMENT OF ASSETS:

The Carrying amounts of tangible fixed assets are reviewed for impairment, if events or changes in
circumstances indicate that the carrying value of an asset may not be recoverable. If there are
indicators of impairment, an assessment is made to determine whether the asset’s carrying value
exceeds its recoverable amount. Whenever the carrying value of an asset exceeds its recoverable
amount, impairment is charged to the profit & loss account. Recoverable amounts are estimated for
individual assets where feasible, otherwise to the relevant cash generating unit.

30 Additional information to the financial statements
A Undisclosed Income

The Company has no transaction that is not recorded in the books of accounts that has been surrendered or disclosed
as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any
other relevant provisions of the Income Tax Act, 1961)

B Expenditure on Corporate Social Responsibility Activities:

The Company is not covered under section 135 of the Companies Act, Disclosure with regard to CSR activities are not
applicable to the company.

C Details of Crypto Currency or Virtual Currency:

The company has not traded or invested in Crypto currency or Virtual Currency.

D Registration Of charges or satisfaction with Registrar of Companies (ROC)

The company has no pending charges or satisfaction which are yet to be registered with the ROC beyond the Statutory
period.

F Discrepancy In Utilization Of Borrowings

The company has used the borrowings from banks and financial institutions for the specific purpose for which it was
taken at the standalone balance sheet date. There are no discrepancy in utilisation of borrowings.

G Relationship With Struck Off Companies

The Company has not identified any transactions or balances in any reporting periods with companies whose name is
struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

H Compliance With Number Of Layers Of Companies

The company has complied with the provision of the number of layers prescribed under clause (87) of section 2 of the
Act read with the Companies (Restriction on number of Layers) Rules, 2017.

I Wilful defaulter

The company has not been declared as a wilful Defaulter by any Financial Institution or bank as at the date of
Standalone Balance Sheet.

J Compliance with approved scheme of arrangement

There are no Schemes of Arrangements has been approved by the Competent Authority in terms of sections 230 to
237 of the Companies Act, 2013.

K Details of Benami property held

The Company do not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
rules made thereunder.

L Previous year's figures have been regrouped / rearranged wherever necessary to conform to the current year's
presentation.