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NOTES TO THE

FINANCIAL STATEMENTS

For the year ended June 30, 2021

6.14 Trade and other payables
Liabilities for trade and other payables are carried at their amortized cost, which approximate fair value
of the consideration to be paid in future for goods and services received, whether or not billed to the
Company. Exchange gains and losses arising on translation in respect of liabilities in foreign currency are
added to the carrying amount of the respective liabilities.

6.15 Provisions
Provisions are recognized when the Company has a present legal or constructive obligation as a result of
past events and it is probable that an outflow of resources will be required to settle the obligation and
a reliable estimate of the amount can be made.

Provisions are reviewed at each reporting date and are adjusted to reflect the current best estimate. If
it is no longer probable that an outflow of resources embodying economic benefits will be required to
settle the obligation, the provisions are reversed.

6.16 Contingencies
The assessment of the contingencies inherently involves the exercise of significant judgment as the
outcome of the future events cannot be predicted with certainty. The Company, based on the availability
of the latest information, estimates the value of contingent assets and liabilities which may differ on the
occurrence/ non-occurrence of the uncertain future events.

6.17 Foreign currency translation
Transactions in foreign currency during the period are initially recorded in the functional currency at
the rate prevailing at the date of transaction. Monetary assets and liabilities denominated in foreign
currencies are translated at functional currency at the rate of exchange prevailing at the reporting date.
All non-monetary assets and liabilities are translated into rupees at exchange rates prevailing on the
date of transaction or on date when fair values are determined. Exchange differences are charged to
statement of profit or loss.

6.18 Revenue recognition
Revenue is recognized at an amount that reflects the consideration to which the Company is expected
to be entitled in exchange for transferring goods or services to a customer. For each contract with a
customer, the Company: identifies the contract with a customer; identifies the performance obligations
in the contract; determines the transaction price which takes into account estimates of variable
consideration and the time value of money; allocates the transaction price to the separate performance
obligations on the basis of the relative stand-alone selling price of each distinct good or service to be
delivered; and recognizes revenue when or as each performance obligation is satisfied in a manner that
depicts the transfer to the customer of the goods or services promised.

Variable consideration within the transaction price, if any, reflects concessions provided to the customer
such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any
other contingent events. Such estimates are determined using either the ‘expected value’ or ‘most
likely amount’ method. The measurement of variable consideration is subject to a constraining principle
whereby revenue will only be recognized to the extent that it is highly probable that a significant reversal
in the amount of cumulative revenue recognized will not occur. The measurement constraint continues
until the uncertainty associated with the variable consideration is subsequently resolved. Amounts
received that are subject to the constraining principle are initially recognized as deferred revenue in the
form of a separate refund liability.

a) Sale of goods
Revenue from the sale of goods is recognized at the point in time when the customer obtains
control of the goods, which is generally at the time of delivery. Otherwise, control is transferred
over time and revenue is recognized over time by reference to the progress towards complete
satisfaction of the relevant performance obligation if one of the following criteria is met:

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