2 SIGNIFICANT ACCOUNTING POLICIES:

a) Basis of presentation of Financial Statements

The financial statements have been prepared in compliance with the notified accounting standards issued by the Companies
Accounting Standard (AS) notified by section 133 read with rule 7, companies (Accounts) rules, 2014. The financial statements
have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently
applied by the Company and except for the changes in accounting policy discussed more fully below, are consistent with those
used in the previous year.

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The Company is a Small and Medium Sized Company ('SMC') as defined in the General Instructions in respect of Accounting
Standards specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.
Accordingly, the Company has complied with the Accounting Standards as applicable to a SMC. Pursuant to exemptions/
relaxations applicable to a SMC, Accounting Standard 17 - Segment Reporting are not applicable to the Company for the current
year. Further, certain disclosure requirements under Accounting Standard 3 - Cash flow Statements, Accounting Standard 15
(R) - Employee Benefits, Accounting Standard 19 - Leases, Accounting Standard 20 - Earnings per Share, Accounting Standard
28 - Impairment of Assets and Accounting Standard 29 - Provisions, Contingent Liabilities and Contingent Assets are not
applicable to the Company for the current year.

b) Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities
at the date of the financial statements and the results of operations during the reporting period end. Although these estimates
are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

c) Revenue Recognition:

Revenue is recognised to the extent that is probable that the economic benefits will flow to tire company and the revenue can be
reliably measured and there exists no uncertainty regarding ultimate collection. Income is recognised on accrual basis as follows:

a) Sale of Goods:-Revenue from sales of goods is recognised on transfer of significant risks and rewards of ownership to the

customers. ^r

b) Revenue from Services :-Revenue from services rendered is recognized as the service is performed.

c) Interest:- Interest income is recognized on a time proportion basis taking into account the amount outstanding and rate
applicable.

c.l) Government Grants

Government grants are recognised where there is reasonable assurance that the grant will be received, and all attached
conditions will be complied with. When the grant relates to an expense item, it is recognised as income on a systematic basis over

the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is
recognised as income in equal amounts over the expected useful life of tire related asset.

d) Property,Plant and Equipment

Property, Plant and Equipment are stated at cost, less accumulated depreciation and impairment losses, if any. Cost comprises
the purchase price and any directly 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 takes 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.

e) Depreciation

I. Depreciation on Property, Plant and Equipment is provided on Written down Value Method over the estimated useful lives as
prescribed under schedule II to the Companies Act, 2013. Pursuant to this policy, depreciation is provided at the following lives
which are m Ime with the corresponding useful life prescribed in schedule II to tire Companies Act 2013.

f) Intangibles Assets

Software costs relating to acquisition of initial software license fee and installation costs are capitalized in the year of purchase.

Softwares are amortized on a written down value basis over its useful life, which is considered to be of a period of three to five
y is.

g) Intangibles Assets under Development

The Expenditure incurred on development of intangible assets (i.e. product under development) is capitalized based on technical

and economic feasibility as determined by the management which is based on defined milestone according to established project
management model pertaining to product development

h) Inventories
Traded Goods

Traded Goods are valued at lower of cost and net realizable value. Cost includes cost of purchase and other cost incurred to
bring the inventories to their present location and condition. Cost is determined on weighted Average basis. Net realizable value
is the estimated selling price in the ordinary course of business, less estimated costs of making the sale.

Raw materials, stores and spares and packing materials

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 if the finished products in which they will be incorporated, are expected to be sold at or above cost.
Cost is determined on weighted average method. Net realizable value is the estimated selling price in the ordinary course of
business, less estimated costs of making the sale.

Finished Goods

Lower of cost and net realizable value. Cost includes direct materials and labour and allocable overhead, if any. Cost is
determined on weighted average basis. Net realizable value is the estimated selling price in the ordinary course of business, less
estimated costs of making the sale.

i) Employee benefits
A Gratuity

The Company's gratuity scheme is a post employment benefit and is in the nature of defined.benefit plan. For defined benefit
schemes, the cost of providing benefits is determined using Projected Unit Credit Method, with actuarial valuation being carried
out at each balance sheet date. Actuarial gams and losses are recognized in full in the statement of profit and loss in the period in
which they occur. Past service cost is recognized to the extent the benefits are already vested, and otherwise is amortised on a
straight-line method over the average period until the benefits become vested.

The retirement benefit obligation recognized in the balance sheet represents the present value of the defined benefit obligations
as adjusted for unrecognized past service cost, and as reduced by the fair value of scheme assets, if applicable. Any asset

resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future
contributions to the scheme.

B Provident fund

The Company contributes to the Government administered Provident Fund on behalf of its employees and has further obligation

beyond making the payment to them. Contributions to Provident Fund (defined contribution plan) are charged to Statement of
I rofit and Loss as incurred on accrual basis.

Liability fertile gratuity under the payment of Gratuity Act is made based on the actuarial valuation carried out as at the balance
sheet date. The present value of obligation under such defined benefit is determined based on the actuarial valuation as at the
Balance Sheet date, using the projected unit credit method, which recognized each period of service as giving rise to additional
unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

j) Leases

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets, are classified
as operating leases . Lease rentals in respect of assets taken under operating leases are charged to the statement of profit and loss

on straight line basis over the term of lease. ^F

k) Foreign Currency Transactions
Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange
rate between the reporting currency and the foreign currency at the date of the transaction. ⁸

Subsequent recognition

Foreign currency monetaiy items are restated at the rate prevailing on every balance sheet date. Non-monetary items which are
carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the
transaction and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency
are reported using the exchange rates that existed when die values were determined.

Exchange differences

Exchange differences arising on the settlement of monetary items or on restatement of Company's monetary items 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.

a) Transactions denominated in foreign currency are recorded at the original rates of exchange prevailing at the date of
transaction.

b) Any income or expense on account of exchange difference on settlement is recognized in die Statement of Profit and Loss.

l) Taxes on Income
Current Tax:

Current tax is determined based on the amount of tax payable in respect of taxable income for the year.

Deferred tax:

Deferred tax is recognized on timing differences; being the difference between taxable incomes and accounting income that
originate in one year and are capable of reversal in one or more subsequent years. Deferred tax assets and liabilities are
computed on the timing differences applying the tax rate enacted or substantively enacted by the balance sheet date. Deferred tax
assets are recognized only to the extent that there is a virtual / reasonable certainty supported by convincing evidence that tax
income will be available against which such deferred tax assets can be realized.

MAT Tax

MAT credit is recognised as an asset only when and to the extent there is convincing evidence that the company will pay normal
income tax during the specified period. In the year in which the Minimum Alternative tax (MAT) credit becomes eligible to be
recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered
Accountants of India, the said asset is created by way of a credit to the Statement of Profit and Loss and shown as MAT Credit
Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit
Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during
the specified period.

m) Impairment of Assets

Assets that are are subject to amortization are reviewed for impairment whenever events are changed in circumstances indicates
that tire carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the assets carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of the assets fair value less costs to sell and the
value in use. Reversal of impairment loss is recognized immediately as income in the Statement of Profit and Loss.