1. Significant Accounting Policies:-

Basis of Preparation of Financial Statements:-

The Financial Statements are prepared in accordance with Indian Accounting
Standards (Ind AS) notified under Section 133 of the Companies Act, 2013
(“Act”) read with Companies (Indian Accounting Standards) Rules, 2015; and the
other relevant provisions of the Act and Rules thereunder.

The Financial Statements have been prepared under historical cost convention
basis, except for certain assets and liabilities measured at fair value.

The Company has adopted all the Ind AS and the adoption was carried out in
accordance with Ind AS 101 'First time adoption of Indian Accounting
Standards'. The transition was carried out from Generally Accepted Accounting
Principles in India (Indian GAAP) as prescribed under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014, which was the
“Previous GAAP”.

The Company's presentation and functional currency is Indian Rupees (Rs.). All
figures appearing the financial statements are rounded off to the Rupee, except
where otherwise indicated.

1.1 Authorization of Financial Statements:-

The preparation of Company's financial statements requires management to
make judgments, estimates and assumptions that affect the reported amounts of
revenue, expenses, assets, liabilities and the accompanying disclosures along

with contingent liabilities. Uncertainty about these assumptions and estimates
could result in outcomes that require material adjustments to the carrying
amounts of the assets or liabilities affected in future periods. The Company
continually evaluates these estimates and assumptions based on the most
recently available information.

y Assessment of functional currency;
y Financial instruments;

y Estimates of useful lives and residual value of Property, Plant and
Equipment and Intangible assets;

y Valuation of Inventories

y Provisions;

y Evaluation of recoverability deferred tax assets; and
y Contingencies.

Revisions to accounting estimates are recognized prospectively in the Statement

of Profit and Loss in the period in which the estimates are revised and in any

future periods affected.

1.2 Property, Plant and Equipment

1.2.1 Property, Plant and Equipment are stated at cost net of accumulated
depreciation and accumulated impairment losses, if any.

1.2.2 The initial costs of an asset comprises its purchase price or construction
costs (including import duties and non-refundable taxes), 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, and borrowing cost for qualifying assets (i.e. assets that necessarily
take a substantial period of time to get ready for their intended use).

1.2.3 Subsequent expenditure is capitalized only if it is probable that the future
economic benefits associated with the expenditure will flow to the
Company.

1.2.4 Expenditure on assets not exceeding threshold limit are charged to
revenue.

1.2.5 Spare parts which meet the definition of Property, Plant and Equipment
are capitalized as Property, Plant and Equipment in case the unit value of
the spare part is above the threshold limit. In other cases, the spare part
is inventorised on procurement and charged to Statement of Profit and
Loss on consumption.

1.2.6 An item of Property, Plant and Equipment and any significant part
initially recognized separately as part of Property, Plant and Equipment
is de-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 is included in the Statement of Profit and Loss
when the asset is de-recognized.

1.2.7 The residual values and useful lives of Property, Plant and Equipment are
reviewed at each financial year end and changes, if any are accounted in
line with revisions to accounting estimates.

1.2.8 The Company has elected to use exemption available under Ind AS 101 to
continue the carrying value for all its Property, Plant and Equipment as
recognized in the financial statements as at the date of transition to Ind
ASs, measured as per previous GAAP and use that as its deemed cost as at
the date of transition (1st April, 2016).

1.3. Depreciation

Depreciation on Property, Plant and Equipment are provided on straight line

basis, over the estimated useful lives of assets (after retaining the estimated

residual value of 5%). These useful lives determined are in line with the useful

lives as prescribed in the Schedule II of the Act.

1.3.1 Items of Property, Plant and Equipment costing not more than the
threshold limit are depreciated 100% in the year of acquisition.

1.3.2 Components of the main asset that are significant in value and have
different useful lives as compared to the main asset are depreciated over
their estimated useful life. Useful life of such components has been
assessed based on historical experience and internal technical
assessment.

1.3.3 Depreciation on spare parts specific to an item of Property, Plant and
Equipment is based on life of the related Property, Plant and Equipment.
In other cases, the spare parts are depreciated over their estimated useful
life based on the technical assessment.

1.3.4 Depreciation is charged on additions/deletions on pro-rata monthly basis
including the month of addition/deletion.

1.4 Intangible Assets

1.4.1 Intangible assets are carried at cost net of accumulated amortization and
accumulated impairment losses, if any.

1.5 Investment Property

1.5.1 Investment property is property (land or a building - or part of building -
or both) held either to earn rental income or a capital appreciation or for
both, but not for sale in the ordinary course of business, use in

production or supply of goods or services or for administrative purposes.

1.5.2 Any gain or loss on disposal of investment property calculated as the
difference between the net proceeds and the carrying amount of the
Investment Property is recognized in Statement of Profit and Loss.

1.6 Borrowing Costs

1.6.1 Borrowing costs consist of interest and other costs incurred in
connection with the borrowing of funds. Borrowing costs also include
exchange differences to the extent regarded as an adjustment to the
borrowing costs.

1.6.2 Borrowing costs that are attributable to the acquisition or construction of
qualifying assets (i.e. an asset that necessarily takes a substantial period
of time to get ready for its intended use) are capitalized as a part of the
cost of such assets. All other borrowing costs are charged to the
Statement of Profit and Loss.

1.7 Impairment of Non-financial Assets

1.7.1 Non-financial assets other than inventories, deferred tax assets and non¬
current assets classified as held for sale are reviewed at each Balance
Sheet date to determine whether there is any indication of impairment. If
any such indication exists, or when annual impairment testing for an
asset is required, the Company estimates the asset's recoverable amount.
The recoverable amount is higher of the assets or Cash-Generating Units
(CGU's) fair value less costs of disposal and its value in use. Recoverable
amount is determined for an individual asset, unless the asset does not
generate cash inflows that are largely independent of those from other
assets or group of assets.

1.7.2 When the carrying amount of an asset or CGU exceeds its recoverable
amount, the asset is considered impaired and is written down to its
recoverable amount.

1.8 Inventories

1.8.1 The cost for the purpose of valuation of Finished and Semi - Finished
goods is arrived at on FIFO basis and includes Cost of conversion and
other cost incurred in bringing the inventories to their present location
and condition. Due allowance is estimated and made for defective and
obsolete items, wherever necessary, based on the past experience of the
company.

The mode of valuing closing stock is as under:

Raw Materials and General Stores are valued at cost or net realizable
value, whichever is less, excluding CENVAT and VAT/GST credit, by
FIFO method.

y Work-in-Process is valued at raw material cost plus estimated
overheads or net realizable value; whichever is less but excluding
CENVAT and VAT/GST credit.

y Finished Goods valued at cost including estimated overheads or net
realizable value whichever is less.

y Scrap is valued at realizable value.

1.8.2 Raw materials held for use in the production of finished goods are not
written down below cost except in cases where raw material prices have
declined and it is estimated that the cost of the finished goods will exceed
their net realizable value.

1.8.3 Obsolete, slow moving, surplus and defective stocks are identified at the
time of physical verification of stocks and where necessary, provision is
made for such stocks.

1.9 Revenue Recognition

1.9.1 Sale of Goods/Services

Revenue from the sale of goods is recognized when the significant risks
and rewards of the ownership of the goods have passed to the buyer, the
Company retains neither continuing managerial involvement to the
degree usually associated with ownership nor effective control over the
goods sold, revenue and the associated costs can be estimated reliably
and it is probable that economic benefits associated with the transaction
will flow to the Company.

Revenue from sale of goods excludes GST & excise duty & sales tax and is
measured at the fair value of the consideration received or receivable
(after including fair value allocations related to multiple deliverable
and/or linked arrangements), after the deduction of any trade discounts,
volume rebates, net of returns, taxes or duties collected on behalf of the
government.

When the Company acts as an agent on behalf of a third party, the
associated income is recognized on net basis.

1.9.2 Claims are recognized on settlement. Export incentives are accounted on
accrual basis.

1.9.3 Interest income is recognized using Effective Interest Rate (EIR) method.

1.10 Classification of Income/ Expenses

1.10.1 Income/ expenditure (net) in aggregate pertaining to prior year(s)

above the threshold limit are corrected retrospectively in the first set of
financial statements approved for issue after their discovery by
restating the comparative amounts and / or restating the opening
Balance Sheet for the earliest prior period presented.

1.10.2 Prepaid expenses up to threshold limit in each case, are charged to
revenue as and when incurred.

1.11 Employee benefits

Gratuity liability is not determined and not provided at the
end of the each financial year. however same is accounted
on cash basis

1.12 Foreign Currency Transactions

1.12.1 Monetary Items

Transactions in foreign currencies are initially recorded at their
respective exchange rates at the date the transaction first qualifies for
recognition.

Monetary assets and liabilities denominated in foreign currencies are
translated at exchange rates prevailing on the reporting date.

Exchange differences arising on settlement or translation of monetary
items are recognised in Statement of Profit and Loss either as profit or
loss on foreign currency transaction and translation or as borrowing
costs to the extent regarded as an adjustment to borrowing costs.

1.12.2 Non - Monetary items:

Non-monetary items that are measured in terms of historical cost in a
foreign currency are translated using the exchange rates at the dates of
the initial transactions.