Significant Accounting Policies-

The significant 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 indicated.

1.2 Basis of Preparation of Financial Statements-

a) Statement of compliance & Basis of Preparation-

The financial statements which comprise the Balance Sheet the Statement of Profit and Loss
(including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in
Equity (financial statements) have been prepared in accordance with Indian Accounting Standards
(referred to as "Ind AS") notified under the Section 133 of the Companies Act 2013 Cthe Act')
Companies (Indian Accounting Standards) Rules, 2015, along with relevant amendment rules issued
thereafter and other relevant provision of the Act as applicable.

The Company has adopted Ind AS 115 'Revenue from Contracts with Customers’ With the date of
initial application being 1st April 2018. Ind AS 115 established a comprehensive framework on
revenue recognition and replaces Ind As 18 - Revenue and Ind AS 11 - Construction Contracts.
There are no material adjustmentsarising on transition.

On 28th March 2018, Ministry of Corporate Affairs ('MCA') notified the Companies (Indian
Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign
currency transactions and advance consideration which clarified the date of the transaction for the
purpose of determining the exchange rate to use on initial recognition of the related asset expense
or income, when an entity has received or paid consideration in a foreign currency. The Company
has evaluated the effect of this amendment on the financial statements and concluded that the
impact is not material.

The financial statements have been prepared on accrual basis under the historical cost convention.
The Company generally follows mercantile system of accounting and recognizes significant items of
income and expenditure on accrual basis.

b) Functional and presentation currency-

The standalone financial statements are presented in Indian rupees, which is the functional currency
of the Company and the currency of the primary economic environment in which the entity operates.

1.3 Use of Estimates and Judgements-

The preparation of standalone financial statements in conformity with Ind AS requires management
to make judgments, estimates and assumptions that affect the application of accounting policies and
the reported amounts of assets, liabilities, income and expenses Actual results may differ from these
estimates.

Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting
estimates are recognized in the period in which the estimates are revised and in any future periods
affected. The preparation of financial statements require certain estimates and assumptions to be

made that affect the reported amount of assets and liabilities on the date of the financial statements
and the reported amount of revenues and expenses forthe reporting period. Difference between the
actual and estimates are recognized in the period in which the actual are known / materialized.

1.4 Property, Plant and Equipment-

a) Recognition and Measurement; All items of property and equipment are initially recorded at cost
Cost of property and equipment comprises purchase price, non-refundable taxes, levies, and any
directly attributable cost of bringing the asset to its working condition for the intended use. The
company has elected to apply the optional exemption to use this previous GAAP value as deemed
cost at 1 st April, 2016, the date of transition.

b) After initial recognition, property and equipment are measured at cost less accumulated depreciation
and any accumulated impairment losses.

c) The cost of an item of property and equipment is recognised as an asset if, and only if, 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 cost includes the cost of replacing part of the property and
equipment and borrowing costs that are directly attributable to the acquisition, construction or
production of a qualifying property and equipment

d) In the case of imported machinery purchased out of foreign currency loan, the changes in liability due
to exchange rate at the time of repayment of loan installment and due to realignment of loan in indian
rupees have been adjusted in the cost machinery.

1.5 Intangible Assets-

Intangible assets are recognised when it is probable that the future economic benefits that are
attributable to the assets will flow to the company and the cost of the asset can be measured reliably.

1.6 Depreciation, Amortization & Impairment-

a) Depreciation has been provided on straight line method based on life assigned to each asset in
accordance with schedule II of the companies act 2013.

b) Depreciation on additions to property, Plant & Equipment has been calculated on pro-rata basis from
the date of addition.

c) No depreciation has been provided on the fully depreciated assets.

d) An asset will be treated as impaired when the carrying cost of assets exceeds its recoverable value. An
impairment loss is charged to the profit and loss account in the year in which an asset is identified as
impaired. The impairment loss recognized in prior accounting period is reversed if there has been a
change in the estimate of the recoverable amount

1.7 Inventories-

a) Stores and spares are valued at cost and are charges to revenue on the basis of issues.

b) Raw material and packing material are valued at cost

c) Finished goods are valued at cost or market value which ever is lower

d) Empties are valued at net realizable value

e) Provisions are made if required to cover slow-moving and obsolete items based on historical
experience of utilisation on a product category basis, which involves individual businesses
considering their product lines and market conditions.

1.8 Cash and cash equivalents-

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term
deposits with an original maturity of three months or less, which are subject to an insignificant risk of
changes in value. Forthe purpose of the statement of cash flows, cash and cash equivalents consist of
cash and short-term deposits, as defined above.

1.9 Employee Benefits-

i) Short-term employee benefits are recognized as an expense in the profit and loss account of the year
in which the related service is rendered.

ii) Provident fund contributions, a defined contribution scheme, are charged to the profit and loss
account

iii) Gratuity liability, a defined benefit scheme, is provided based on actuarial valuation and funded
through the scheme administrated by life insurance corporation of India. The contribution
paid/payable under the scheme is recognised during the period in which the employee render the
services.