2. Material Accounting Policies Information

The material accounting policies applied by the Company in
the preparation of its financial statements are listed below.
Such accounting policies have been applied consistently
to all the periods presented in these financial statements,
unless otherwise stated.

2.1 Basis of Preparation

(i) Compliance with Ind AS

The Financial statements (FS) of the company have been
prepared in accordance with Indian Accounting Standards
(Ind AS) notified under Section 133 of the Companies Act,
2013 (' the Act') [Companies (Indian Accounting Standards)
Rules, 2015, as amended by notification dated March
31,2016] and other provisions of the Act.

The financial statements are presented in Indian Rupees
and all amounts disclosed in the financial statements and
notes have been rounded off upto two decimal points to
the nearest lakhs (as per the requirement of Schedule III),
unless otherwise stated.

(ii) Historical Cost Convention

The Financial Statements have been prepared on a historical
cost basis, except the following:

• Certain financial assets and liabilities which are
measured at fair value / amortized cost

• Defined Benefit Plans- plan assets measured at fair value

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

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

• Held primarily for the purpose of trading

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

• 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:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

• 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

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non¬
current assets and liabilities

(iii) Operating cycle

The operating cycle is the time between the acquisition of
assets for processing and its realization in cash and cash
equivalents. The Company has identified 12 months as its
operating cycle.

.2 Property, Plant & Equipment and Capital Works in
Progress

Freehold Land is carried at Historical cost. Property, all other
items of plant and equipment are stated at historical cost
less depreciation and impairment if any. Historical cost
includes expenditure that is directly attributable to the
acquisition of the items.

Cost is inclusive of inward freight, duties and taxes and
incidental expenses related to acquisition or construction.
All upgradation / enhancements are charged off as revenue
expenditure unless they bring similar significant additional
benefits. An item of property, plant and equipment is
derecognised upon disposal or when no future economic
benefits are expected to arise from the continued use of
asset. Any gain or loss arising on the disposal or retirement
of an item of property, plant and equipment is determined
as the difference between the sales proceeds and the
carrying amount of the asset is recognised in the statement
of profit and loss.

Subsequent costs are included in the asset's carrying
amount 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. The carrying
amount of any component accounted for as a separate
asset is derecognized when replaced. All other repairs and
maintenance are recognized in profit or loss during the
reporting period, in which they are incurred.

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

Depreciation methods, estimated useful lives and
residual value

Depreciation on tangible property plant & equipment
has been provided on the written down value method
over the estimated useful lives of assets, based on internal
assessment and independent technical evaluation done
by the Management expert which are equal to, except in
case of Plant and Machinery, Furniture and Fixtures and
Vehicles where useful life is lower than life prescribed under
Schedule II to the Companies Act, 2013, in order to reflect
the actual usage of the assets.

The estimated useful life of various property, plant and
equipment is as under: -

accumulated amortization and accumulated impairment
losses if any.

Intangible assets with finite lives are amortized over the
useful life and assessed for impairment whenever there is
an indication that the intangible asset may be impaired. The
amortization period and the amortization method for an
intangible asset with a finite useful life are reviewed at least
at the end of each reporting period.

Changes in the expected useful life or the expected pattern
of consumption of future economic benefits embodied in
the asset are considered to modify the amortization period
or method, as appropriate, and are treated as changes
in accounting estimates. The amortization expense on
intangible assets with finite lives is recognized in the
statement of profit and loss unless such expenditure forms
part of carrying value of another asset.

Gains or losses arising from derecognition of an intangible
asset are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and
are recognized in the statement of profit or loss when the
asset is derecognized.

existing contracts by assessing whether the services addec
are distinct and whether the pricing is at the standalone
selling price.

The Company accounts for variable considerations like
volume discounts, rebates and pricing incentives tc
customers as reduction of revenue on a systematic and
rational basis over the period of the contract. The Company
estimates an amount of such variable consideration using
expected value method or the single most likely amoun
in a range of possible consideration depending on which
method better predicts the amount of consideration to
which we may be entitled.

Revenues are shown net of allowances/ returns, goods and
services tax and applicable discounts and allowances.

(b) Interest income

Interest income is recognized using the time proportion
basis, based on the underlying interest rates.

(c) Rental Income

Rental income is recognized on a time-apportioned
basis in accordance with the underlying substance of the
relevant contract.

(d) Dividend

Dividend is recognized when the company's right to
receive the payment is established, which is generally wher
shareholders approve the dividend.

2.5 Inventories

Raw materials, stores and spares

Raw materials, goods in transit, packing materials ant
stores and spares are valued at cost computed on moving
weighted average basis, after providing for obsolescence
if any. The cost includes purchase price, inward freighr
and other incidental expenses net of refundable duties
levies and taxes, where applicable. Raw materials, packing
materials and other supplies held for use in production o
inventories are not written down below cost except in case;
where material prices have declined, and it is estimated
that the cost of the finished products will exceed their ne'
realizable value.

Work in progress ,traded and finished goods

Finished goods and work-in-progress are valued at lowei
of cost and net realizable value. Cost is determined on a
weighted average basis and comprises material, labour and

applicable overhead expenses including depreciation. The
net realizable value of materials in process is determined
with reference to the selling prices of related finished
goods. Stores and spares are valued at cost determined on
weighted average basis.

Traded Goods are valued on FIFO basis. The cost includes
cost of purchase and other costs incurred in bringing the
inventories to their present location and condition.

Scrap

Scrap are valued at Net realisable value.

Net realizable value is the estimated selling price in
the ordinary course of business, less estimated costs
of completion and the estimated costs necessary to
make the sale.

:.6 Fair Value Measurement

Accounting policies and disclosures require measurement
of fair value for both financial and non-financial assets.

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:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market must be
accessible by the Company. The fair value of an asset or a
liability is measured using the assumptions that market
participants would use when pricing the asset or liability,
assuming that market participants act in their economic
best interest.

The Company uses valuation techniques that are
appropriate in the circumstances and for which sufficient
data is available to measure fair value, maximizing the use
of relevant observable inputs and minimizing the use of
unobservable inputs.

All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorized
within the fair value hierarchy, described as follows, based
on the lowest level input that is significant to the fair value
measurement as a whole:

• Level 1 - Quoted (unadjusted) market prices in active
markets for identical assets or liabilities

• Level 2 - Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
directly or indirectly observable

• Level 3 - Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
unobservable.

For changes that have occurred between levels of hierarchy
during the year, the Company re-assesses categorization
(based on the lowest level input that is significant to the
fair value measurement as a whole) at the end of each
reporting period.

Fair value is the price that would be received to sell an
asset or settle a liability in an ordinary transaction between
market participants at the measurement date. The fair value
of an asset or a liability is measured using the assumption
that market participants would use when pricing an asset or
liability acting in their best economic interest. The fair value
of plants and equipments as at transition date have been
taken based on valuation performed by an independent
technical expert. The Company used valuation techniques,
which were appropriate in circumstances and for which
sufficient data were available considering the expected
loss/ profit in case of financial assets or liabilities.

2.7 Borrowing

Borrowings are initially recognised at fair value, net of
transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the
proceeds (net of transaction costs) and the redemption
amount is recognised in Statement of Profit and Loss
over the period of the boi ro\vinps. Fees paid on the
establishment of loan facilities are recognised as transaction
costs of the loan to the extent that it is probable that some
or all of the facility will be drawn down. In this case, the fee
is deferred until the draw down occurs. To the extent there is
no evidence that it is probable that some or all of the facility
will be drawn down, the fee is capitalised as a prepayment
for liquidity services and amortised over the period of the
facility to which it relates.

Borrowings are removed from the Balance Sheet when the
obligation specified in the contract is discharged, cancelled
or expired. The difference between the carrying amount of
a financial liability that has been extinguished or transferred
to another party and the consideration paid, including
any non-cash assets transferred or liabilities assumed,

is recognised in Statement of Profit and Loss as other
gains/(losses).

Borrowings are classified as current liabilities unless the
Company has an unconditional right to defer settlement
of the liability for at least 12 months after the reporting
period. Where there is a breach of a material provision of
a long-term loan arrangement on or before the end of the
reporting period with the effect that the liability becomes
payable on demand on the reporting date, the entity does
not classify the liability as current, if the lender agreed,
after the reporting period and before the approval of the
financial statements for issue, not to demand payment as a
consequence of the breach.

!.8 Financial Instruments

A financial instrument is any contract that gives rise to a
financial asset of one entity and a financial liability or equity
instrument of another entity.

Financial Assets

(a) Initial recognition and measurement:

All financial assets are recognized initially at fair value and,
in the case of financial assets not recorded at fair value
through profit or loss, transaction costs that are attributable
to the acquisition of the financial asset.

(b) Subsequent measurement

For purposes of subsequent measurement financial assets
are classified in two broad categories:

Financial assets at fair value
Financial assets at amortized cost

(c) Classification:

The Company classifies financial assets as subsequently
measured at amortized cost, fair value through other
comprehensive income or fair value through profit or loss
on the basis of its business model for managing the financial
assets and the contractual cash flows characteristics of the
financial asset.

(d) Financial assets measured at amortized cost:

Financial assets are measured at amortized cost when asset
is held within a business model, whose objective is to hold
assets for collecting contractual cash flows and contractual
terms of the asset give rise on specified dates to cash flows
that are solely for payments of principal and interest. Such
financial assets are subsequently measured at amortized
cost using the effective interest rate (EIR) method. The losses
arising from impairment are recognized in the Statement of

profit and loss. This category generally applies to trade and
other receivables.

(e) Financial assets measured at fair value through
other comprehensive income (FVTOCI):

Financial assets under this category are measured
initially as well as at each reporting date at fair value.
Fair value movements are recognized in the other
comprehensive income.

(f) Financial assets measured at fair value through
profit or loss (FVTPL):

Financial assets under this category are measured initially as
well as at each reporting date at fair value with all changes
recognized in profit or loss.

(g) Derecognition of Financial assets:

A financial asset is primarily derecognized when the rights
to receive cash flows from the asset have expired or the
Company has transferred its rights to receive cash flows
from the asset, if an entity transfers a financial asset in a
transfer that qualifies for derecognition in its entirety and
retains the right to service the financial asset for a fee,
it shall recognize either a servicing asset or a servicing
liability for that servicing contract. If the fee to be received
is not expected to compensate the entity adequately
for performing the servicing, a servicing liability for the
servicing obligation shall be recognized at its fair value. If
the fee to be received is expected to be more than adequate
compensation for the servicing, a servicing asset shall be
recognized for the servicing right at an amount determined
on the basis of an allocation of the carrying amount of the
larger financial asset.

(h) Impairment of Financial assets:

In accordance with Ind AS 109, the Company applies
expected credit loss (ECL) model for measurement and
recognition of impairment loss on the financial assets that
are debt instruments and trade receivables.

For recognition of impairment loss on other financial assets
and risk exposure, the Company determines that whether
there has been a significant increase in the credit risk since
initial recognition

Financial Liabilities

(a) Initial recognition and measurement:

All financial liabilities are recognized initially at fair value and,
in the case of loans, borrowings and payables, net of directly
attributable transaction costs. Financial liabilities include

trade and other payables, loans and borrowings including
bank overdrafts and derivative financial instruments.

(b) Classification & Subsequent measurement:

If a financial instrument that was previously recognized as
a financial asset is measured at fair value through profit or
loss and its fair value decreases below zero, it is a financial
liability measured in accordance with IND AS. Financial
liabilities are classified as held for trading, if they are incurred
for the purpose of repurchasing in the near term.

The Company classifies all financial liabilities as subsequently
measured at amortized cost, except for financial liabilities at
fair value through profit or loss. Such liabilities, including
derivatives that are liabilities, shall be subsequently
measured at fair value.

(c) Financial liabilities measured at fair value through
profit or loss:

Financial liabilities at fair value through profit or loss include
financial liabilities held for trading. At initial recognition,
such financial liabilities are recognized at fair value.

Financial liabilities at fair value through profit or loss are,
at each reporting date, measured at fair value with all the
changes recognized in the Statement of Profit and Loss.

(d) Derivative financial instruments

The Company uses derivative financial instruments, such
as forward currency contracts to hedge its foreign currency
risks. Derivative financial instruments are initially recognized
at fair value on the date a derivative contract is entered
into and are subsequently re-measured at their fair value
at the end of each period. Any gains or losses arising from
changes in the fair value of derivatives are taken directly to
profit or loss.

(e) Loans and Borrowings:

Interest-bearing loans and borrowings are subsequently
measured at amortized cost using the Effective Interest Rate
(EIR) method. Gains and losses are recognized in profit or
loss when the liabilities are derecognized as well as through
EIR amortization process. Amortized cost is calculated by
taking into account any discount or premium on acquisition
and fees or costs that are an integral part of the EIR. The EIR
amortization is included as finance costs in the statement of
profit and loss. After initial recognition Gain and Liabilities
held for Trading are recognized in statement of profit and
Loss Account.

(f) Derecognition of Financial Liabilities:

A financial liability is derecognized when the obligation

under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another
from the same lender on substantially different terms, or the
terms of an existing liability are substantially modified, such
an exchange or modification is treated as the derecognition
of the original liability and the recognition of a new liability.
The difference in the respective carrying amounts is
recognized in the Statement of Profit and Loss.

Offsetting financial instruments:

Financial assets and liabilities are offset and the net amount
reported in the balance sheet when there is a legally
enforceable right to offset the recognized amounts and
there is an intention to settle on a net basis to realize the
asset and settle the liability simultaneously.

Subsequent recoveries of amounts previously written off
are credited to Other Income.

2.9 Leases
As a lessee

The Company's lease asset classes primarily consist of leases
for land, buildings and vehicles. The Company assesses
whether a contract contains a lease, at inception of a
contract. A contract is, or contains, a lease if the contract
conveys the right to control the use of an identified asset
for a period of time in exchange for consideration. To assess
whether a contract conveys the right to control the use
of an identified asset, the Company assesses whether: (i)
the contract involves the use of an identified asset (ii) the
Company has substantially all of the economic benefits
from use of the asset through the period of the lease and
(iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company
recognizes a right-of-use asset (ROU) and a corresponding
lease liability for all lease arrangements in which it is a
lessee, except for leases with a term of twelve months
or less (short-term leases) and low value leases. For these
short-term and low value leases, the Company recognizes
the lease payments as an operating expense on a straight¬
line basis over the term of the lease.

Certain lease arrangements includes the options to extend
or terminate the lease before the end of the lease term. ROU
assets and lease liabilities includes these options when it is
reasonably certain that they will be exercised. The right-of-
use assets are initially recognized at cost, which comprises
the initial amount of the lease liability adjusted for any lease
payments made at or prior to the commencement date of
the lease plus any initial direct costs less any lease incentives.

They are subsequently measured at cost less accumulated
depreciation and impairment losses.

Right-of-use assets are depreciated from the commencement
date on a straight-line basis over the shorter of the lease term
and useful life of the underlying asset. Right of use assets are
evaluated for recoverability whenever events or changes in
circumstances indicate that their carrying amounts may not
be recoverable. For the purpose of impairment testing, the
recoverable amount (i.e. the higher of the fair value less cost
to sell and the value-in-use) is determined on an individual
asset basis unless the asset does not generate cash flows
that are largely independent of those from other assets.

The lease liability is initially measured at amortized cost
at the present value of the future lease payments. The
lease payments are discounted using the interest rate
implicit in the lease or, if not readily determinable, using
the incremental borrowing rates in the country of domicile
of these leases. Lease liabilities are remeasured with a
corresponding adjustment to the related right of use asset
if the Company changes its assessment if whether it will
exercise an extension or a termination option.

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

2.10 Employee Benefit

Employee benefits include provident fund, employee state
insurance scheme, gratuity, compensated absences and
performance incentives.

(i) Short-term obligations

Liabilities for wages and salaries, including nonmonetary
benefits 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.

The cost of short-term compensated absences is
accounted as under:

(a) in case of accumulated compensated absences, when
employees render the services that increase their
entitlement of future compensated absences; and

(b) in case of non-accumulating compensated absences,
when the absences occur.

(ii) Other long-term employee benefit obligations

The liabilities for compensated absences are not expected
to be settled wholly within 12 months after the end of
the period in which the employees render the related
service. They are therefore measured as the present value
of expected future payments to be made in respect of
services provided by employees up to the end of the
reporting period using the projected unit credit method.
The benefits are discounted using the market yields at the
end of the reporting period that have terms approximating
to the terms of the related obligation. Remeasurements as
a result of experience adjustments and changes in actuarial
assumptions are recognized in profit or loss.

The obligations are presented as current liabilities in the
balance sheet if the entity does not have an unconditional
right to defer settlement for at least twelve months after the
reporting period, regardless of when the actual settlement
is expected to occur.

(iii) Post-employment obligations
Defined contribution plans

The Company's contribution to provident fund are
considered as defined contribution plans and are charged
as an expense based on the amount of contribution
required to be made and when services are rendered by
the employees.

Defined benefit plan

For defined benefit plans in the form of gratuity, the cost
of providing benefits is determined using the Projected
Unit Credit method, with actuarial valuations being carried
out at each balance sheet date. Actuarial gains and losses
are recognized in the Other Comprehensive Income in the
period in which they occur. Past service cost is recognized
immediately to the extent that the benefits are already
vested and otherwise is amortized.

2.11 Income Taxes

Tax Expense is the aggregate amount included in the
determination of profit or loss for the period in respect of
current tax and deferred tax.

Current Income Taxes

Current income tax is measured at the amount expected to
be paid to the tax authorities in accordance with the Income
Tax Act, 1961 and rules thereunder. 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. Current income tax relating to items
recognized outside profit or loss is recognized outside profit
or loss (either in OCI or in equity).

Current tax items are recognized in correlation to the
underlying transaction either in OCI or directly in equity.
Management periodically evaluates positions taken in the
tax returns with respect to situations in which applicable
tax regulations are subject to interpretation and establishes
provisions where appropriate.

Deferred Tax

Deferred tax is provided using the liability method on
temporary differences between the tax bases of assets and
liabilities and their book bases. Deferred tax liabilities are
recognized for all temporary differences, the carry forward
of unused tax credits and any unused tax losses. Deferred
tax assets are recognized to the extent that it is probable
that taxable profit will be available against which the
deductible temporary differences, and the carry forward
of unused tax credits and unused tax losses can be utilized.
Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the year when the asset
is realized or the liability is settled, based on tax rates (and
tax laws) that have been enacted or substantively enacted
at the reporting date.

Deferred tax relating to items recognized outside profit or
loss is recognized outside profit or loss. Deferred tax items
are recognized in correlation to the underlying transaction
either in OCI or directly in equity. The carrying amount of
deferred tax assets is reviewed at each reporting date and
reduced to the extent that it is no longer probable that
sufficient taxable pro fit will be available to allow all or
part of the deferred tax asset to be utilized. Unrecognized
deferred tax assets are re-assessed at each reporting
date and are recognized to the extent that it has become
probable that future taxable profits will allow the deferred
tax asset to be recovered.

Deferred tax assets and deferred tax liabilities are offset if a
legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred taxes relate to
the same taxable entity and the same taxation authority.

Minimum Alternate Tax (MAT) credit is recognized as an
asset only when and to the extent there is convincing
evidence that the relevant members of the Company will
pay normal income tax during the specified period. Such
asset is reviewed at each reporting period end and the
adjusted based on circumstances then prevailing.

2.12 Share Capital and Securities Premium Reserve

Ordinary shares are classified as equity. Incremental costs
directly attributable to the issue of new shares are shown in
equity as a deduction, net of tax, from the proceeds.

Par value of the equity share is recorded as share capital and
the amount received in excess of the par value is classified
as securities premium reserve.

2.13 Earnings per Share

As per Ind AS 33, Earning Per Share, Basic earnings per
share are computed by dividing the net profit (Loss) for
the year attributable to the shareholders' and weighted
average number of shares outstanding during the year. The
weighted average numbers of shares also includes fixed
number of equity shares that are issuable on conversion
of compulsorily convertible preference shares, debentures
or any other instrument, from the date consideration
is receivable (generally the date of their issue) of such
instruments. Diluted earnings per share is computed using
the net profit for the year attributable to the shareholder'
and weighted average number of equity and potential
equity shares outstanding during the year including share
options, convertible preference shares and debentures,
except where the result would be anti-dilutive. Potential
equity shares that are converted during the year are
included in the calculation of diluted earnings per share,
from the beginning of the year or date of issuance of such
potential equity shares, to the date of conversion.

2.14 Cash and Cash Equivalents

Cash and cash equivalents in the balance sheet comprise
cash in hand and at bank, deposits held at call with
banks, other short-term highly liquid investments with
original maturities of three months or less that are readily
convertible to a known amount of cash and are subject to
an insignificant risk of changes in value and are held for the
purpose of meeting short-term cash commitments.

For the purpose of the statement of cash flows, cash and
cash equivalents consist of cash and short-term deposits,
as defined above, net of outstanding bank overdrafts as
they are considered an integral part of the Company's
cash management.

Cash flows are reported using the indirect method, whereby
net profit before tax is adjusted for the effects of transactions
of a non-cash nature, any deferrals or accruals of past or
future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company

are segregated based on the available information.

2.15 Share based payment arrangments

Employee Stock Option Plan (ESOP): The Company
recognizes compensation expense relating to share-based
payments in net profit based on estimated fair-values of the
awards on the grant date. The estimated fair value of awards is
recognized as an expense in the Statement of Profit and Loss
on a straight-line basis over the requisite service period for
each separately vesting portion of the award as if the award
was in substance, multiple awards with a corresponding
increase to stock option outstanding account.

2.16 Borrowing Costs

General and specific borrowing costs that are directly
attributable to the acquisition, construction or production
of a qualifying asset are capitalized during the period of
time that is required to complete and prepare the asset for
its intended use or sale.

Investment income earned on the temporary investment of
specific borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible for
capitalization.

Other borrowing costs are expensed in the period in which
they are incurred.