2. Significant Accounting Policies

Basis of Preparation measurement and material Accounting Policies

These Standalone financial statements of the Company have been prepared in accordance with Indian Accounting
Standards (IND AS) notified under section 133 of the Companies Act, 2013 read with Companies (Indian Accounting
Standards) Rules, 2015 (as amended from time to time) and the presentation requirements of Division II of Schedule III to
Companies Act, 2013 (IND AS complaint schedule III) as applicable to the standalone financial Statements.

These financial Statements are prepared on an accrual basis under the historical cost convention or amortised cost, except
for the following assets and liabilities, which have been measured at fair value:

i. Certain financial assets and liabilities (including derivative instruments) that are measured at fair value.

ii. Defined Benefits Plans- Plan assets measured at fair value.

These financial statements are presented in Indian Rupees (INR), which is also the Company's functional currency and all
amounts are rounded off to the nearest lakhs (INR '00,000) upto two decimals, except when otherwise indicated.

Operating Cycle

Based on the nature of services / activities of the Company and the normal time between acquisition of assets and their
realization in cash or cash equivalent. The company has determined its operating cycle as 12 months for the purpose of
classification of its assets and liabilities as current and non- current .

SUMMARY OF MATERIAL ACCOUNTING POLICIES

Classification of Assets and Liabilities into Current/Non-current:

The All assets and liabilities in the Balance Sheet have been classified based on Current / Non-current classification.

An asset is classified as Current when:

• It is expected to be realised or intended to be sold or consumed in normal operating cycle; or

• It is held primarily for the purpose of trading; or

• It is expected to be realised within twelve months after the reporting period; or

• It is 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 classified as Current when:

• It is expected to be settled in normal operating cycle; or

• It is held primarily for the purpose oftrading; or

• It is due to be settled within twelve months after the reporting period; or

• 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.

2.1 Property, Plant and Equipment (PPE)

• PPE is recognised 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. PPE (other than Freehold land and Capital Work-in-progress) are
stated at cost less accumulated depreciation and impairment losses, if any. The initial cost of an asset comprises its
purchase price, non-refundable purchase taxes and any costs directly attributable to bringing the asset into the location
and condition necessary for it to be capable of operating in the manner intended by management, the initial estimate of
any decommissioning obligation, if any. Cost includes qualifying assets, borrowing costs capitalised in accordance
with the company's accounting policy.

• Subsequent expenditure related to an item of property, plant and equipment is added to its book value only if it increase
the future benefits from its previously assessed standard of performance. All other expenses on existing property, plant
and equipment, including day-to- day repair and maintenance expenditure and cost of replacing parts, are charged to
the statement of profit and loss for the period during which such expenses are incurred.

• Borrowing costs directly attributable 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.

• An item of property, plant and equipment and any significant part initially recognized upon disposal or when no future
economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset
(calculated as the difference between the net disposal proceeds and the carrying amount of the asset.)is included in the
statement of profit and loss when the property, plant and equipment is de-recognized.

Expenditure directly relating to construction activity is capitalized. Indirect expenditure incurred during construction
period is capitalized to the extent to which the expenditure is indirectly related to construction or is incidental thereto.
Other indirect expenditure (including borrowing costs) incurred during the construction period which is neither
related to the construction activity nor is incidental thereto is charged to the statement of profit and loss.

• The property, plant and equipment acquired under finance leases is depreciated over the assets useful life or over the
shorter of the assets useful life and the lease term if there is no reasonable certainty that the company will obtain
ownership at the end of the lease term. Leasehold land is amortized on a straight line basis over the balance period of
lease.

• Material items such as spare parts, stand-by equipment and service equipment are classified as and when they meet the
definition ofPPE, as specified in IND AS 16 on "Property, Plant and Equipment".

• The carrying amount of an item of PPE is derecognised upon disposal or when no future economic benefit is expected
to arise from its continued use. Any gain or loss arising on the derecognition of an item of PPE is determined as the
difference between the net disposal proceeds and the carrying amount of the item and is recognised in Statement of
Profit and Loss.

Capital Work-in-Progress

Property, Plant and Equipment which are not ready for intended use on the date of balance sheet are disclosed as capital
work-in-progress. It is carried at cost, such properties are classified and capitalised to the appropriate categories of
Property, Plant and Equipment when completed and ready for intended use. Depreciation of these assets will be provided
on the same basis as other property assets are ready for their intended use.

2.2 Depreciation

The Company depreciates Property, Plant and Equipment on Straight Line Method except for Computers, Vehicle &
Office where depreciation is provided on Written Down Value Method over the estimated useful life prescribed in
Schedule II to the Companies Act, 2013 from the dates the assets are ready for intended use after considering residual
value.

The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with
the effect of any change in estimate accounted for on a prospective basis.

2.3 Intangible Assets and Amortisation

Intangible assets are stated at acquisition cost, net of accumulated amortisation and accumulated impairment losses, if any.
Intangible assets are amortised on a straight line basis over their useful economic life.

The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any
changes in estimate being accounted for on a prospective basis.

2.4 Impairment of Non-Financial Assets

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to
determine whether there is any indication that those assets may have been impaired. If any such indication exists, the
recoverable amount, which is the higher of its value in use or its fair value less costs of disposal of the asset or cash¬
generating unit, as the case may be, is estimated and impairment loss (if any) is recognised and the carrying amount is
reduced to its recoverable amount. When it is not possible to estimate the recoverable amount of an individual asset, the
Company estimates the recoverable amount of the cash generating unit to which the asset belongs.

In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the
estimates of future cash flows have not been adjusted.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at
least annually, and whenever there is an indication that the asset may be impaired.

An impairment loss is recognised immediately in the Statement of Profit and Loss. When impairment subsequently
reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but upto the
amount that would have been determined, had no impairment loss been recognized for that asset or cash generating unit. A
reversal of an impairment loss is recognised immediately in the Statement of Profit and Loss.

2.5 Research and development

Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss. Development costs of products
/ systems are also charged to the Statement of Profit and Loss in the year it is incurred, unless a products technological
feasibility has been established, in which case such expenditure is capitalized. These costs are charged to the respective

heads in the Statement of Profit and Loss in the year it is incurred. The amount capitalised comprises of expenditure that
can be directly attributed or allocated on a reasonable and consistent basis for creating, producing and making the asset
ready for its intended use. Fixed assets utilised for research and development are capitalised and depreciated in
accordance with the policies stated for Tangible Fixed Assets and Intangible Assets.

2.6 Inventories

• Inventories are valued at lower of cost and net realizable value.

• Inventories comprise all costs of purchase, conversion and other costs incurred in bringing the inventories to their
present location and condition.

• Cost of raw materials, packing materials, including materials in transit, work in process and finished goods are arrived
at on the First in first out method of valuation, net of Input Tax Credit under Goods & Service Tax Act, including
manufacturing overheads wherever applicable.

• Net realisable 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.

2.7 Statement of Cash Flows

Cash flows are reported using the indirect method, whereby net profit for the period is adjusted for the effects of
transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of
income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and
financing activities of the Company are segregated.

For the purpose of presentation in the Statement of Cash Flows, cash and cash equivalents include cash on hand, cash at
banks, other short-term deposits and highly liquid investments with original maturity of three months or less that are
readily convertible into cash and which are subject to an insignificant risk of changes in value, as reduced by bank
overdrafts.

2.8 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 capitalized as part of the cost of the asset. All other
borrowing costs are expensed in the period in which they are incurred. Borrowing costs consists of interest and other costs
that an entity incurs in connection with the borrowing of funds. Borrowing costs also include exchange differences to the
extent regarded as an adjustment to the borrowing costs.