2. Material Accounting Policies

This note provides a list of the material accounting policies adopted in the preparation of these financial
statements. These policies have been consistently applied to all the years presented, unless otherwise
stated.

Statement of Compliance

These financial statements have been prepared in accordance with Ind-AS as prescribed under section
133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015 as
amended from time to time.

Basis of preparation

The financial statements have been prepared on the historical cost basis, except for certain financial
instruments which are measured at fair values at the end of each reporting period, as required by the
applicable accounting standards.

The financial statements are presented in Indian rupees (INR) and all amounts are rounded to the nearest
lakhs, except otherwise indicated. Amount less than Rs. 500 are indicated as "0.00" in the financial
statements.

All the assets and liabilities have been classified as current or non-current as per the Company's normal
operating cycle. Based on the nature of the products and the time between the acquisition of assets for
processing and their realization in cash and cash equivalents, the Company has ascertained its operating
cycle as 12 months for the purpose of current / non-current classification of assets and liabilities.

Current V/s Non-Current Classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current
classification. An asset is treated as current when it is:

i) Expected to be realized or intended to be sold or consumed in normal operating cycle

ii) Held primarily for the purpose of trading

iii) Expected to be realized within twelve months after the reporting period, or

iv) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period. All other assets are classified as non-current.

A liability is current when:

i) It is expected to be settled in normal operating cycle

ii) It is held primarily for the purpose of trading

iii) It is due to be settled within twelve months after the reporting period, or

iv) There is no unconditional right to defer the settlement of the liability for at least twelve months after
the reporting period. The Company classifies all other liabilities as non-current.

Use of estimates and judgments

The estimates and judgments used in the preparation of the financial statements are continuously
evaluated by the Company and are based on historical experience and various other assumptions and
factors (including expectations of future events) that the Company believes to be reasonable under the
existing circumstances. Differences between actual results and estimates are recognised in the period in
which the results are known/materialised.

The said estimates are based on the facts and events, that existed as at the reporting date, or that
occurred after that date but provide additional evidence about conditions existing as at the reporting
date.

The estimates and the underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which the estimate is revised and future periods affected.
Significant judgments and estimates about the carrying amount of assets and liabilities include useful
lives of tangible and intangible assets, impairment of tangible assets, intangible assets including goodwill,
investments, employee benefits and other provisions and recoverability of deferred tax assets.

Fair Value Measurement

The Company classifies its financial assets in the following measurement categories:

i) Those to be measured subsequently at fair value (either through Other Comprehensive Income, or
through profit or loss).

ii) Those measured at amortised cost.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is based
on the presumption that the transaction to sell the asset or transfer the liability takes place either:

a) In the principal market for the asset or liability, or

b) In the absence of a principal market, in the most advantageous market for the asset or liability

A fair value measurement of a non-financial asset takes into account a market participant's ability to
generate economic benefits by using the asset in its highest and best use or by selling it to another
market participant that would use the asset in its highest and best use. The Company uses valuation
techniques that are appropriate in the circumstances and for which sufficient data are available to
measure fair value, maximizing the use of relevant observable inputs and minimizing the use of
unobservable inputs.

At each reporting date, the Company analyses the movements in the values of assets and liabilities which
are required to be remeasured or re-assessed as per The Company's accounting policies. For this analysis,
the Company verifies the major inputs applied in the latest valuation by agreeing the information in the
valuation computation to contracts and other relevant documents. For the purpose of fair value
disclosures, the Company has determined classes of assets and liabilities on the basis of the nature,
characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained
above.

Revenue Recognition

Revenue from contract with customer is recognised upon transfer of control of promised products
or services to customers on complete satisfaction of performance obligations for an amount that
reflects the consideration which the Company expects to receive in exchange for those products or
services. Revenue is measured based on the transaction price, which is the consideration, adjusted
for discounts and other incentives, if any, as per contracts with the customers. However, Goods and
Services tax (GST) are not received by the Company on its own account. Rather, it is tax collected on
value added to the commodity by the seller on behalf of the government. Accordingly, it is excluded from
revenue.

Sales of Goods

Revenue from the sale of goods is recognized when all significant risks and rewards of ownership of the
goods have passed to the buyer, which generally coincides with delivery. Revenue from the sale of
goods is measured at the fair value of the consideration received or receivable, net of returns and
allowances, trade discounts and volume rebates.

Interest Income

Interest income is included in other income in the statement of profit and loss. Interest income is
recognized on a time proportion basis taking into account the amount outstanding and the
applicableinterest rate when there is a reasonable certainty as to realization.

Property, Plant and Equipment

All items of property, plant and equipment are stated at acquisition cost net of accumulated depreciation
and accumulated impairment losses, if any. Historical cost includes expenditure that is directly
attributable to the acquisition of the items. Subsequent costs are included in the carrying amount of
asset or recognized as a separate asset, as appropriate, only when it is probable that future economic
benefits associated with the item will flow to the Company and the cost of the item can be measured
reliably. All other repairs and maintenance expenses are charged to the Statement of Profit and Loss
during the period in which they are incurred. Gains or losses arising on retirement or disposal of assets
are recognized in the Statement of Profit and Loss.

Depreciation methods, estimated useful lives and residual value

Depreciation on Property, Plant & Equipment is charged on Straight Line Method. Depreciations are
charged over the estimated useful lives of the assets as specified in Schedule II of the Companies Act,
2013. Depreciation in respect of additions to/and deletion from assets has been charged on pro-rata
basis from/till the date they are put to commercial use. The residual values, useful lives and methods of
depreciation of property, plant and equipment are reviewed at regular intervals and adjusted
prospectively, if appropriate.

Depreciation on additions/deletions to Property plant and equipment during the year is provided for on
a pro-rata basis with reference to the date of additions/deletions.

Inventories

Cost of Inventories is arrived at on First-In First-Out (FIFO) basis and valued at cost or net realizable value
whichever is lower. Cost comprises all costs of purchase, costs of conversion and other costs incurred in
bringing the inventory to the present location and condition. Net realizable value is the estimated selling
price in the ordinary course of business, less estimated costs of completion and estimated costs
necessary to make the sale.

Employees' Benefits

Liabilities for wages and salaries that are expected to be settled wholly within 12 months after the end
of the period in which the employees render the related service are recognized in respect of employees'
services up to the end of the reporting period and are measured at the amounts expected to be paid
when the liabilities are settled. The liabilities are presented as current employee benefit obligations in
the balance sheet.

Income Taxes

Tax on Income comprises current tax and deferred tax. These are recognized in Statement of Profit and
Loss except to the extent that it relates to items recognized directly in equity or in other comprehensive
income.

Tax on income for the current period is determined on the basis on estimated taxable income and tax
credits computed in accordance with the provisions of the relevant tax laws and based on the expected
outcome of assessments / appeals. Current income tax assets and liabilities are measured at the amount
expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to
compute the amount are those that are enacted or substantively enacted, at the reporting date.
Management periodically evaluates positions taken in the tax returns with respect to situations for which
applicable tax regulations are subject to interpretation and revises the provisions where appropriate.

Deferred tax is recognized on temporary differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax bases 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.

Earnings Per Share(EPS)

Earnings per share (EPS) is calculated by dividing the net profit or loss for the period attributable to Equity
Shareholders by the weighted average number of Equity shares outstanding during the period. Earnings
considered in ascertaining the EPS is the net profit for the period and any attributable tax thereto for the
period.

Diluted earnings per share is computed by adjusting the profit or loss attributable to the ordinary equity
shareholders and the weighted average number of equity shares, for the effects of all diluted potential
equity shares.

Changes in Accounting Estimates and Errors

The financial statements have been prepared in accordance with Ind AS 8. The Company selects and
applies accounting policies consistently for similar transactions to ensure comparability. Changes in
accounting policies are applied retrospectively unless specified otherwise. Changes in estimates are
recognized prospectively. Prior period errors, if any, are corrected retrospectively in the financial
statements.