3. Material Accounting policies:

a) Significant accounting estimates, assumptions, and judgements:

The preparation of Company's financial statements requires management to make accounting estimates,
assumptions and judgements that affect the reported amounts of revenues, expenses, assets and liabilities and
the accompanying disclosures of contingencies at the end of the reporting period. Uncertainty about these
assumptions and estimates could result in outcomes that require a material adjustment to the carrying amounts
of assets or liabilities in future periods.

Estimates and Assumptions:

i. Impairment of non-current assets:

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable
amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less
costs of disposal is calculated based on available data from binding sales transactions, conducted at arm's
length, for similar assets or observable market prices less incremental costs for disposing of the asset. The
value in use calculation is based on a Discounted Cash Flow (“DCF”) model. The value in use is sensitive
to the discount rate (generally weighted average cost of capital) used for the DCF model as well as the
expected future cash-inflows and the growth rate used for exploration purposes.

ii. Defined Benefit Plans:

The present value of the gratuity obligation is determined using actuarial valuation. An actuarial valuation
involves making various assumptions that may differ from actual developments in the future. These
include the determination of the discount rate, rate of increment in salaries and mortality rates. Due
to complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly
sensitive to changes in these assumptions. All the assumptions are reviewed at each reporting date.

iii. Fair Value measurement of financial instruments:

When the fair values of financial assets and financial liabilities on reporting date cannot be measured based
on quoted prices in active markets, their fair value is measured using valuation techniques i.e., the DCF
model. The inputs to these models are taken from observable markets.

iv. Contingencies:

Management judgement is required for estimating the possible inflow/outflow of resources, if any, in
respect of contingencies/claims/litigations against the company/by the company as it is not possible to
predict the outcome of pending matters with accuracy.

v. Property, Plant and Equipment:

Based on evaluations done by the technical assessment team, the management has adopted the useful
life and residual value of its Property, Plant and Equipment. Management believes that the assigned useful
lives and residual value are reasonable.

vi. Income Taxes:

Management judgment is required for the calculation of provision for income taxes and deferred tax
assets/liabilities. The Company reviews at each balance sheet date the carrying amount of deferred
tax assets/liabilities. The factors used in estimates may differ from actual outcome which could lead to
significant adjustment to the amounts reported in the financial statements.

vii. Life -Time Expected Credit Loss on Trade and Other Receivables:

Trade and other receivables are stated at net of trade payable to the respective party where there is a
written understanding between the Company and the particular customer/vendor. Trade Receivables
and Other Receivables do not carry any interest and are stated at their transaction value as reduced by
life-time expected credit losses (“LTECL”). Management has evaluated LTECL for receivables as follows:

An asset is treated as current when it satisfies any of the following criteria:

i. Expected to be realised or intended to be sold or consumed in normal operating cycle;

ii. Held primarily for the purpose of trading;

iii. Expected to be realised 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 assets.

A liability is classified as current when it satisfies any of the following criteria:

i. Expected to settle the liability in normal operating cycle;

ii. Held primarily for the purpose of trading;

iii. 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

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation
in cash and cash equivalents. However, a period of 12 months is considered as ultimate operating
cycle.

c) Property, Plant and Equipment:

Property, Plant and Equipment are stated at cost net of input credits, less accumulated depreciation, and
impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its
working condition for its intended use. Borrowing costs relating to acquisition of property, plant and equipment
which take substantial period of time to get ready for its intended use are also included to the extent they relate
to the period till such assets are ready to be put to use.

The company adopted cost model as its accounting policy, in recognition of the property, Plant and Equipment
and recognises the transaction value as the cost.

Subsequent expenditure is capitalised to the asset's carrying amount only when it is probable that future
economic benefits associated with the expenditure will flow to the company and the cost of the item can be
measured reliably. All other repairs and maintenance costs are expensed when incurred.

Capital work in progress includes cost of property, plant, and equipment under installation/under development
as at the balance sheet date.

An item of Property, Plant and Equipment is derecognised upon disposal or when no future economic benefits
are expected from its use. Any gain or loss arising from derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is recognised in the Statement of
Profit and Loss. Property, Plant and Equipment which are found to be not usable or retired from active use or
when no further benefits are expected from their use are removed from the books of account and the carrying
value if any is charged to Statement of Profit and Loss.

Assets costing five thousand rupees or less are fully depreciated in the year of purchase.

Depreciation on Property, Plant and Equipment is provided based on the useful lives of the assets as estimated
by the Management, which are in line with Schedule II to the Companies Act, 2013

d. Intangible Assets:

Intangible assets are carried at cost, net of accumulated amortisation expenses and impairment losses, if any.
Cost of an intangible asset comprise of purchase price and attributable expenditure on making the asset ready
for its intended use.

Computer software:

Computer software is recognised at cost and are amortised over the useful life as estimated by the Management
which is about 3 years for all the intangible computer software assets.

Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either
individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to
determine whether indefinite life continues to be supportable. If not, the change in useful life from indefinite to
finite is made on a prospective basis.

An intangible asset is derecognized on disposal or when no future economic benefits are expected from its use.
Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net
disposal proceeds and the carrying amount of the asset, and are recognized in the Statement of Profit and Loss.

e) Impairment of non-financial assets:

i. The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of
impairment based on internal/external factors. An impairment loss is recognized wherever the carrying
amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset's
net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted
to their present value at the weighted average cost of capital. After impairment, depreciation is provided
on the revised carrying amount of the asset over its remaining useful life.

ii. Reversal of impairment losses recognised in prior years is recorded when there is an indication that the
impairment losses recognised for the asset no longer exists or have decreased. The reversal is limited so
that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying
amount that would have been determined, net of depreciation, had no impairment loss been recognised
for the asset in prior years.

f) Leases:

The determination of whether an agreement is (or contains) a lease is based on the substance of the arrangement
at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is
dependent on the use of a specific asset or assets and the arrangement convey a right to use the asset or assets,
even if that right is not explicitly specified in an arrangement.

For arrangements entered into prior to date of transition, the Company has determined whether the
arrangement contain lease on the basis of facts and circumstances existing on the date of transition.

Classification on inception of lease:

i. Operating lease:

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the
leased item, are classified as operating leases.

ii. Finance Lease:

A lease is classified as a financial lease where the lessor transfers substantially all the risks and rewards
incidental to the ownership of the leased item.

The Company has adopted Ind AS 116-Leases effective 1st April 2019, using the modified retrospective
method. The Company has applied the standard to its leases with the cumulative impact recognised in
the Reserves on the date of initial application (1st April 2019). Accordingly, previous period information
has not been restated and continues to be reported under Ind AS 17 - Leases.

i. Accounting of Operating leases:

Where the Company is the lessee:

At the date of commencement of the lease, the Company recognises a right-of-use asset (“ROU”)
and a corresponding lease liability for all lease arrangements in which it is a lessee, except for
short- term and Cancellable leases having a lease term up to 36 months. For remaining leases, the
Company recognises the lease payments as an operating expense on a straight-line basis over the
period of the lease. In case the escalation in operating lease payments is in line with the expected
general inflation rate then the lease payments are charged to statement of profit and loss instead of
straight-line method.

The right-of-use assets are initially recognised at cost, which comprises the initial amount of the
lease liability adjusted for any lease payments made at or prior to the commencement date. They
are subsequently measured at cost, less accumulated depreciation and impairment losses, if any.
Right-of-use assets are depreciated from the commencement date on a straight-line basis over the
lease period.

The lease liability is initially measured at the present value of the future lease payments. The lease
payments are discounted using the borrowing rates. The lease liability is subsequently remeasured
by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying
amount to reflect the lease payments made.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease
payments have been classified as financing cash flows.

ii. where the Company is the lessor:

Lease income is recognised in the Statement of Profit and Loss on a straight-line basis over the lease
term. Initial direct costs such as legal costs, brokerage costs, etc., are added to the carrying amount
of the leased asset and recognised as an expense over the lease term.

g) Inventories:

i. Raw Materials, Stores and Spares and Consumables are stated at lower of Cost and Net realizable
value. However, materials and other items held for use in the production of inventories are not written
down below cost in which they will be incorporated and expected to be sold at or above cost. Cost is
determined on a weighted average basis.

ii. Work-in-progress and finished goods are stated at the lower of cost and net realizable value.

iii. Cost includes direct materials, labour and a proportion of manufacturing overheads based on actual
production. Cost is determined on a weighted average basis.

iv. 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.

h) Revenue recognition:

Revenue from contracts with customers includes Sale of Goods and Services and is recognised when control
of goods or services are transferred to the customer at an amount that reflects the consideration entitled in
exchange for those goods or services.

Revenue is measured at the fair value of consideration received or receivable and is recognized when the
control in all respects, over the Goods or Services is transferred to and accepted by the customer and the
company has not retained any significant risks of ownership and future obligations with respect to such Goods
or Services. Specifically, the following basis is adopted for various sources of income:

The Company does not expect to have any contracts where the period between the transfer of the promised
goods or services to the customer and payment by the customer exceeds one year. As a consequence, it does
not adjust any of the transaction prices for the time value of money.

i. Sale of goods: Revenue is recognised when the significant risks and rewards of ownership of the goods
have been passed to the buyer and is disclosed net off discounts, taxes collected and returns.

ii. Interest: Interest Income is recognised on a time proportion basis taking into account the amount
outstanding and the rate applicable.

iii. Dividend: Dividend income is recognized when the company's right to receive the payment is established.

iv. Export Incentives: Export benefits are recognised on an accrual basis.

i) Foreign Currency Transactions:

i. Functional and Reporting Currency: The Company's functional and reporting currency is Indian
National Rupee.

ii. Initial Recognition: Foreign currency transactions are recorded in the reporting currency, by applying
to the foreign currency amounts the exchange rate between the reporting currency and the foreign
currency on the date of the transaction.

iii. Conversion on reporting date: Foreign currency monetary items are reported at the closing rate.
Foreign currency non-monetary items are reported at historical cost.

iv. Exchange Differences: Exchange difference arising on the settlement of monetary items or on reporting
monetary items of company at rates different from those at which they were initially recorded during the
year or reported in previous financial statements are recognised as income or as expenses in the year in
which they arise.

j) Borrowing Costs:

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily
takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of
the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist
of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also
includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

k) Retirement and other employee benefits:

i. Employer's contribution to Provident Fund/Employee State Insurance, which is in the nature of defined
contribution scheme is expensed off when the contributions to the respective funds are due. There are
no other obligations other than the contribution payable to these funds.

ii. The company operates a gratuity plan which is in the nature of defined benefit obligation. The company's
liability is provided based on independent actuarial valuation on projected unit credit method made at the
end of each financial year as per the requirements of Ind AS 19 on “Employee Benefits”.

iii. Gratuity liability is considered as post-employment benefit expense as per Ind AS -19. Accordingly,
Actuarial gain/(loss) on re-measurement of present value of defined benefit obligation and actual return
on plan assets excluding net interest is recognised under other comprehensive income for the year.

iv. Accumulated leaves, which are expected to be utilised within the next twelve months, are treated as
short-term employee benefits. The Company measures the expected cost of such absences as the
additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the
reporting date.

v. The Company treats accumulated leaves expected to be carried forward beyond twelve months, as long¬
term employee benefit for measurement purposes. Such long-term compensated absences are provided
for based on the actuarial valuation using the projected unit credit method at the year-end. Actuarial
gains/losses are immediately taken to the statement of profit and loss and are not deferred.

l) Earnings Per Share:

Basic earnings per share are calculated by dividing the profit for the period attributable to equity shareholders
by the weighted average number of Equity Shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the 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.