2. Summary of significant accounting policies

i. Basis of Preparation

The financial statements of the Company have been prepared in accordance with the Generally Accepted
Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under
Section 133 of the Companies Act, 2013 and the relevant provisions of the Companies Act 2013, as applicable.
The financial statements of the Company are prepared under the historical cost convention using the accrual
method of accounting. The accounting policies adopted in the preparation of the financial statements are
consistent with those of the previous year. All assets and liabilities have been classified as current or non¬
current as per the Company's normal operating cycle and other criteria set out in Schedule III to the 2013 Act.

ii. Use of estimates

The preparation of financial statements requires the management to make judgments, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and disclosure of
contingent liabilities, at the end of the reporting period. Although, these estimates are based on the
management's best knowledge of current events and actions, uncertainty about these assumptions and
estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.

iii. Property, Plant and Equipment
Tangible assets

Tangible assets are stated at cost, less accumulated depreciation and impairment losses, if any. Cost comprises
the purchase price, borrowing costs, if capitalization criteria are met and any cost attributable to bringing the
assets to its working condition for its intended use which includes taxes, freight, and installation and allocated
incidental expenditure during acquisition and exclusive of Input tax credit (IGST/CGSTand SGST) or other tax
credit available to the Company.

When parts of an item of tangible assets have different useful lives, they are accounted for as separate items
(major components) of property, plant and equipment.

Subsequent expenditure relating to tangible assets is capitalized only if such expenditure results in an increase
in the future benefits from such asset beyond its previously assessed standard of performance.

Intangible assets

Acquired intangible assets are stated at acquisition cost, net of accumulated amortization and accumulated
impairment losses, if any. Intangible assets are amortized on a straight line basis over their estimated useful
lives. A rebuttable presumption that the useful life of an intangible asset will not exceed ten years from the
date when the asset is available for use is considered by the management. The amortization period and the
amortization method are reviewed at least at each financial year end. If the expected useful life of the asset is
significantly different from previous estimates, the amortization period is changed accordingly.

iv. Depreciation on property, plant and equipment

Depreciation on these assets commences when the assets are ready for their intended use which is generally
on commissioning. Based on internal assessment and technical evaluation the management believes the useful
life as given below best represent the period over which management expects to use these assets. Hence, the
useful lives for these assets are different from the useful lives as prescribed under Part C of Schedule II of the
Companies Act, 2013.The companies uses straight line method and the estimated useful lives of property,
Plant and equipment of the Companies are as follows:

v. Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment
based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an
asset exceeds its recoverable amount. The recoverable amount is the greater of the assets' net selling price
and value in use. In assessing value in use, the estimated future cash flows are discounted to their present
value at the weighted average cost of capital.

After impairment, depreciation/amortization is provided on the revised carrying amount of the asset over its
remaining useful life.

vi. Foreign currency translation
Initial recognition:

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

Conversion:

Foreign currency monetary items are reported using the closing rate. 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; 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 such values were determined.

Exchange differences:

Exchange differences arising on the settlement of monetary items or on reporting the 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 recognized as income or as expenses in the year in which they occur.

vii. Revenue recognition

Revenue is recognized to the extent, that it is probable that the economic benefits will flow to the Company
and the revenue can be reliably measured.

Revenue from sale of goods

Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods
are transferred to the buyer.

Interest income

Interest income is recognized on a time proportion basis taking into account the amount outstanding and
applicable interest rate.

viii. Cash and cash equivalents

Cash and cash equivalents include cash in hand, demand deposits with banks. Bank overdrafts are shown
within borrowings in current liabilities in balance sheet.

ix. Employees Benefit

Employee benefits in the form of Provident Fund and Employee State Insurance Scheme are defined
contribution plans and the contributions are charged to the Statement of Profit and Loss of the year when the
contributions to the respective funds are due. There are no other obligations other than the contribution
payable to the respective funds.

Short-term employee benefits: All employee benefits payable wholly within twelve months of rendering the
service are classified as short-term employee benefits and are recognized in the Statement of Profit and Loss
in the period in which the employee renders the related service.

Gratuity is a post-employment benefit and is in the nature of a defined benefit plan. The liability recognized in
the balance sheet in respect of gratuity is the present value of the defined benefit obligation at the balance
sheet date. The defined benefit obligation is calculated at the balance sheet date by an independent actuary
using the projected unit credit method. Actuarial gains and losses arising from past experience and changes
in actuarial assumptions are charged to the Statement of Profit and Loss in the year in which such gains or
losses are determined.

x. Inventories

Inventories are valued at lower of cost and net realizable value. Cost is determined using the first-in, first-out
(FIFO) method. The cost of finished goods and work in progress comprises raw materials, direct labour, other
direct cost and related overheads.

Provision of obsolescence on inventories is considered on the basis of management's estimate based on
demand and market of the inventories.

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

xi. Income taxes

Tax expense for the period comprises of current tax, deferred tax and Minimum alternate tax credit considered
in determining the net profit or loss for the year.

Current tax

Provision for current tax is recognized on the basis of estimated taxable income for the current accounting
year in accordance with the Income-tax Act, 1961.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the
recognized amounts, and there is an intention to settle the asset and the liability on a net basis.

Deferred tax

The deferred tax for timing differences between the book and tax profits for the year is accounted for, using
the tax rates and laws that have been substantively enacted as of the reporting date.

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and
taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities
or assets are recognized using the tax rates that have been enacted or substantively enacted by the balance
sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets
can be realized in future; however, where there is unabsorbed depreciation or carry forward of losses,
deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax
assets are reviewed at each balance sheet date and are written-down or written up to reflect the amount that
is reasonably/virtually certain (as the case may be) to be realized.

At each reporting date, the Company reassesses the unrecognized deferred tax assets, if any.