Page 234 - KRCL ENglish

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Notes forming part of the Standalone Financial Statements as at 31 March, 2020
Trade receivables (mentioned Table B)
A receivable represents the Company's right to an amount of consideration that is
unconditional, and the corporation has accounted the same in line with the provisions
of Ind AS 115.

Contract Assets &Liabilities (mentioned in Table below)
A Contract Assets is the performance by transferring goods and services to a
customer, before the customer pays consideration or before payment is due, the
entity shall present the contract as a contract asset, excluding any amount presented
as a receivables.

A Contract liability is the obligation to transfer goods or services to a customer for
which the Company has received consideration (or an amount of consideration is
due) from the customer. If a customer pays consideration before the Company
transfers goods or services to the customer, a contract liability is recognised when the
payment is made, or the payment is due (whichever is earlier). Contract liabilities are
recognised as revenue when the Company performs under the contract.

There is no signicant changes in contract asset and contract liability.

Performance Obligation:

The company considers timeline indicators mentioned in the contract for
performance obligation. Transfer of signicant risks and rewards to the customer,
acceptance of delivery by the customer, etc are indicators of discharge of service
obligations. The Company exercises judgement in determining whether the
performance obligation is satised at a point in time or over a period. Depending on
the terms of contract, controls on the asset or existence of enforceable right to
payment is established against performance in full or part discharge of obligation.
KRCL is engaged in execution of projects either as deposit work or as a project
management consultant or on cost plus contract basis.

Typically, KRCL receives advance consideration on some of the contracts and some
are executed based on the dened payment term in the contract. The consideration
on contracts can be Cost Plus or Fixed, however, unconstrained by any uncertainty.

KRCL is also involved in execution of contract where- in it acts as an intermediary.
Transaction price allocated to the remaining performance obligations.

The revenue recognized corresponds to the value transferred to customer.

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