Material Accounting Policy
Basis for Preparation

The Financial Statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the
Companies Rules. 2015 (as amended from time to time) read with section 133 of Companies Act. 2013 and presentation
requirements of Division II of schedule III to the Companies Act 2013 (Ind AS compliant Schedule III), and as other
pronouncements of ICAI. provisions of the Companies Act and Rules and guidelines issued by SEBI as applicable.

The Financial Statements are presented in INR(Rs.) which is also the company's functional currency and all values are
rounded to the nearest lakhs, except otherwise indicated.

The Financial Statements have been prepared on the historical cost basis except for certain assets and liabilities that are
measured at fair values, as explained in the accounting policies below

In the financial statements of the current financial year, additional disclosures were incorporated to ensure the true and fair
presentation of data. Furthermore, to uphold consistency and improve comparability, figures from prior years were
reclassified.

I. Classification of Assets and Liabilities as Current and Non -Current

The company present 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 be sold or consumed in normal operating
cycle or held primarily for the purpose of trading All other assets are classified as non-current.

A liability is classified as current when it is expected to be settled in normal operating cycle, it is held primanly for the
purpose of trading, or there is no unconditional right to defer the settlement of liability for at least 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 penod The company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non current asset and liabilities.

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

II. Use of Estimates and Judgement

The preparation of the Standalone Financial Statements requires management to make estimates, judgements and
assumptions that affect the reported amount of assets, liabilities, revenue, expenses and contingent liabilities and
accompanying disclosures pertaining to the year. Actual results may differ from such estimates

Estimates and undertying assumptions are reviewed on an ongoing basis. Any revision in accounting estimates is
recognized prospectively and material revision, including its impact on financial statements, is reported in the notes to
accounts in the year of incorporation of revision

Information about critical judgments in applying accounting policies that have the most significant effect on the carrying
amounts of assets and liabilities and in respect of assumptions and estimates on uncertainties are as follows: -

• Determination of the estimated useful lives of intangible assets and property, plant and equipment

• Recognition and measurement of defined benefit obligations. Present value of the gratuity and leave encashment
obligation is determined using actuarial valuations. An actuarial valuation involves making various assumptions that
may differ from actual developments in the future.

• In estimating the fair value of financial assets and financial liabilities

• Recognition of deferred tax assets.

• Estimation of Expected Credit Loss on financial statement

• Assessment of Impairment on Assets

III. Measurement of fair values

The Company measures certain financial instruments at fair value at each reporting date. 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 in the principal or. in its absence, the most advantageous market to which the Company has access at
that date. The fair value of a liability also reflects its non-performance nsk. The Company regularly reviews significant
unobservable inputs and valuation adjustments. If the third-party information, such as broker quotes or pricing services, is
used to measure fair values, then the Company assesses the evidence obtained from the third parties to support the
conclusion that these valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which the
valuations should be classified

While measuring the fair value of an asset or liability, the Company uses observable market data as far as possible. Fair
values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation technique as
follows:

Level 1: Quoted pnees (unadjusted) in active markets for identical assets or liabilities

Level 2: Inputs other than quoted prices included in Level 1 that are observable for the assets or liability, either
directly (Le. as prices) or indirectly (i.e. derived from prices)

Level 3: inputs for the assets or liabflity that are not based on observable market data (unobservable inputs)

Certain accounting policies and disclosures require the measurement of fair values, for both financial and non- financial
assets and liabilities. When quoted price in active market for an instrument is available, the Company measures the fair
value of the instrument using that price. A market is regarded as active if transactions for the asset or liability take place with
sufficient frequency and volume to provide pricing information on an ongoing basis.

If there are no quoted prices in an active market, then the Company uses a valuation technique that maximises the use of
relevant observable inputs and minimises the use of unobservable inputs. The chosen valuation technique incorporates all
of the factors that market participants would take into account in pricing a transaction. Such factors may indude Quoted
Prices for Similar Assets or Liabilities. Interest Rates or Yield Curves. Credit Risk and Credit Spread, etc.

The best estimate of the fair value of 3 financial instrument on initial recognition is normally the transaction price i.e. the
fair value of the consideration given or received. If the Company determines that the fair value on initial recognition differs
from the transaction price and the fair value is evidenced neither by a quoted price in an active market for an identical asset
or liability nor based on a valuation technique for which any unobservable inputs are judged to be insignificant in relation to
the measuremenL then the financial instrument is initially measured at fair value, adjusted to defer the difference between
the fair value on initial recognition and the transaction price

Subsequently that difference is recognised in Statement of Profit 3nd Loss. Other comprehensive income or retained
earrings as appropriate basis over the life of the instrument but no later than when the valuation is wholly supported by
observable market data or the transaction is closed out.

IV. Cash flow

The statement of cash flows has been prepared under indirect method, whereby profit or loss is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and
items of income or expense associated with investing or financing cash flows. The cash flows from operating, investing
and financing activities of the Company are segregated.

For the purpose of presentation in the cash flow statement, cash and cash equivalent would indude other bank balance.

V. Foreign Currency Transaction

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 currency are translated
into the reporting currency at the dosing rate on the each reporting date. Exchange differences ansing on settlement or
translation of monetary items are recognized in statement of profit and loss on foreign currency transaction.

Non- Monetary item: Non Monetary item that are measured in terms of historical cost in a foreign currency are translated
using the exchange rates at the date of initial transaction.

VI. Summary of Material Accounting Policy

1. Property, Plant and Equipment

a) Initial Recognition and Measurement

Property. Rant and Equipment are recognized at Cost Cost indudes freight, duties, taxes (other than those recoverable
by the entity) and other expenses directly incidental to acquisition, bringing the asset to the location and installation. Such
costs also indude borrowing cost if the recognition entena are met

Sparc parts which meet the definition of Property. Plant and Equipment are capitalized as Property, Plant and Equipment
In other cases, the spare parts are inventoried on procurement and charged to Statement of Profit and Loss on
consumption.

b) Subsequent Expenditure

Subsequent costs are induded in the asset's carrying amount or recognised 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. All other repairs and maintenance are charged to the Statement of Profit and Loss during the
period in which they are incurred

The method of subsequent measurement for all classes of assets are given as follows:

c) Depreciation

Depreciation has been provided on straight line method in terms of expected life span of assets as referred to in Schedule II
of the Companies Act 2013. The estimated useful lives, residual values and depreciation method are reviewed at the end
of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

For PPE where the entity has chosen the revaluation model, the accumulated depreciation is offset against the revalued
amount.

As per Ind AS 16 the amount of revaluation surplus arising on revaluation of PPE shall be transferred to retained earnings
either-

• at the end of each year during the life of the asset or

• may involve transferring the whole of the surplus when the asset is retired or disposed of.

Company has opted for second option of transferring the whole of the surplus when the asset is retired or disposed of.

2. Intangible Asset

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortization and
any accumulated impairment losses, if any. Amortisation is recognised on a straight-line basis over their estimated useful
lives in the statement of profit and loss unless such expenditure forms part of carrying value of another asset
The Company has intangfole asset in the nature of Computer software having useful life of 3 years.

3. Financial Instrument

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 and financial liabilities are initially measured at fair value. Transaction costs
that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial at fair
value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as
appropriate, on initial recognition.

a) Financial Asset

• Initial recognition and measurement

All financial assets are recognised initiaBy at fair value plus, 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 Purchases or sales of financial
assets that require delivery of assets within a time frame established by regulation or convention in the maricet place (regular
way trades) are recognised on the trade date. Le.. the dale that the Company commits to purchase or sell the asset

• Subsequent measurement

Subsequent measurement is determined with reference to the classification of the respective financial assets. Based on
the business model for managing the financial assets and the contractual cash flow characteristics of the financial asset
the Company classifies financial assets as subsequently measured at amortised cost, fair value through other
comprehensive income or fair value through profit and loss.

i. Debt instruments at amortised cost

A‘debt instrument’ is measured at the amortised cost if both the following conditions are met
The 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 Rows that are solely payments of principal and interest
(SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest
rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium and fees or costs that are
an integral part of the EIR. The EIR amortisation is included in finance income in the Statement of Profil and Loss. The
losses arising from impairment are recognised in the Statement of Profit and Loss

iL Debt instruments at Fair value through Other Comprehensive Income (FVOCI)

A debt instrument’ is measured at the fair value through other comprehensive income if both the following conditions are met
The 3sset is held within a business model whose objective is achieved by both

- Collecting contractual cash Rows and selling financial assets

- Contractual terms of the asset give rise on specified dales to cash flows that are SPPI on the principal amount
outstanding.

After initial measurement these assets are subsequently measured at fair value, any changes in value of debt instrument
are recognised through other comprehensive income.

Balance in other comprehensive Income in relation to fair valuation reserve will be reclassified to profit and loss on sale of
such debt instrument

iii. Debt instruments at Fair value through profit and loss (FVTPL)

Fair value through profit and loss is a residual category for debt instruments. Any debt instrument, which does not meet the
criteria for categorisation as at amortised cost or as FVOCI. is classified as at FVTPL After initial measurement, any fair
value changes including any interest income, foreign exchange gain and losses, impairment loss and other net gains and
losses are recognised in the Statement of Profit and Loss.

This instrument is either investment in equity share of other entity or derivative financial asset

Investment in equity share can be shown at FVTOCI under irrevocable option (Le. can't show investment in equity at
FVTPL in future). In case of investment in equity share shown at FVOCI under irrevocable option, fair valuation reserve on
sale of such investment wfll be transferred to retained earning directly.

• impairment of Financial Asset

Expected credit losses are recognized for all financial assets subsequent to initial recognition other than financial assets in
FVTPL category. For financial assets other than trade receivables, as per Ind AS 109. the Company recognises 12 month
expected credit losses for all originated or acquired financial assets if at the reporting date the credit risk of the financial
asset has no! increased significantly since its initial recognition The expected credit losses are measured as lifetime
expected credit losses if the credit risk on financial asset increases significantly since its initial recognition. The Company's
trade receivables do not contain significant financing -component and loss allowance on trade receivables is measured at
an amount equal to fife time expected losses Le. expected cash shortfall The impairment losses and reversals are
recognised in Statement of Profit and Loss.

• Derecognition of financial assets

The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or when it
transfers the financial asset and substantially ail the risks and rewards of ownership of the asset to another party or when it
has neither transferred nor retained substantially all the risks and rewards of the asseL but h3s transferred control of the
asseL On derecognition of a financial asset in its entirety, the difference between the asset's carrying amount and the sum
of the consideration received and receivable and the cumulative gain or loss that had been recognised in other
comprehensive income and accumulated in equity, is recognised in statement of profit and loss if such gain or loss would
have otherwise been recoanised in the statement of orofit and loss on dtsoosal of that financial asset

b) Financial Liability

• Initial recognition and measurement

Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.
Financial liabilities are recognised initially at fair value and. in the case of loans and borrowings and payables, net of
directly attributable transaction costs.

• Subsequent measurement

Financial liabilities are subsequently measured at amortised cost using the EIR (Effective Interest Rate) method or are
measured at fair value through profit and loss with changes in fair value being recognised in the Statement of Profit and Loss.

i. Financial liabilities measured at amortised cost

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortised cost at the
end of subsequent accounting periods. The carrying amounts of financial liabilities that are subsequently measured at
amortised cost are determined based on the effective interest method. Interest expense that is not capitalised as part of
costs of an asset is included in the ‘Franee costs' line item in the statement of profit and loss. The effective interest method
is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant
penod The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and
costs paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or
discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying
amount on initial recognition

ii. Financial liabilities at fair value through profit or loss (FVTPL)

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
designated upon initial recognition as FVTPL Finandal liabilities are classified as held for trading if these are incurred for
the purpose of repurchasing in the near term. Financial liabilities at FVTPL are stated at fair value, with any gains or kisses
ansing on remeasurement recognised in statement of profit or loss.

• Derecognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company's obligations are discharged,
cancelled or have expired. An exchange with a lender of debt instruments with substantially different terms is accounted for
as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial
modification of the terms of an existing financial liability is accounted for as an extinguishment of the original financial
liability and the recognition of a new financial liability. The difference between the carrying amount of the financial liability
derecognised and the consideration paid and payable is recognised in the statement of profit and loss. In case of
derecognition of financial liabilities relating to promoters' contribution, the difference between the carrying amount of the
financial liability derecognised and the consideration paid and payable is recognised in other equity.

• Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse
the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms
of a debt instrumenL Financial guarantee contracts are recognised initially as a liability at fair value through profit or loss,
adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is
measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the
amount recognised less cumulative amortisation.

4. Inventory

Inventories comprises of raw materials, stock-in-progress, finished goods and consumable stores. Inventories are valued
at cost or estimated net realizable whichever is lower after providing for obsolescence and other losses, where considered
necessary. The cost of inventones comprises of all cost of purchase, cost of conversion and other cost incurred in bringing
inventories to their present location and condition. Net realisable value represents the estimated selling price for
inventories less all estimated costs necessary to make the sale.

5. Leases

Company recognizes a right-of-use asset and a lease liability at the lease commencement date.

Right-of-usc asset (RCXJ):

The right-of-use asset is initially measured at cost Cost comprises of the initial amount of the lease liability adjusted for any
lease payments made at or before the commencement date, any initial direct costs incurred by the lessee, an estimate of
costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located less
any lease incentives received . After the commencement date, a lessee shall measure the right-of-use asset applying cost
model, which is Cost less any accumulated depreciation and any accumulated impairment losses. Right-of-use asset is
depreciated using straight-line method from the commencement date to the earlier of end of the useful life of the ROU
asset or the end of the lease term.

Lease liability:

Lease liability is initially measured at the present value of lease payments that are not paid at the commencement date.
Discounting is done using the implicit interest rate in the lease, if that rate cannot be readily determined, then using
company's incremental borrowing rate. Incremental borrowing rate is determined based on entity's borrowing rate
adjusted for terms of the lease and type of the asset leased

Subsequently, lease liability is measured at amortised cost using the effective interest method. Lease liability is re
measured when there is a change in the lease term, a change in its assessment of whether it will exercise a purchase,
extension or termination option ora revised in-substance fixed lease payment.

When the lease liability is re-measured corresponding adjustment is made to the canying amount of the right-of-use asset.
If the canying amount of the right-of-use asset has been reduced to zero it will be recorded in statement of profit and loss.
Right-of-use asset is presented as a separate category under *non-cunent assets' and lease liabilities are presented
under ‘Financial liabilities* in the balance sheet

6. Investment in Subsidiaries

Investments in subsidiaries and associates are carried at cost less accumulated impairment losses, if any. Where an
indication of impairment exists, the canying amount of the investment is assessed and written down immediately to its
recoverable amount

The Company accounts for its investments in subsidiaries at cost in its separate financial statements, m accordance with
Ind AS 27 Separate Financial Statements. Investments are reviewed at each reporting date for indicators of impairment
and are impaired when there is objective evidence that the carrying amount exceeds the recoverable amount” In case of a
business combination, the Company applies the acquisition method as prescribed under Ind AS 103 Business
Combinations. The identifiable assets acquired and liabilities assumed are measured at their acquisition-date fair values
Any excess of the consideration transferred over the fair value of the net identifiable assets acquired is recognized as
goodwill. If the consideration transferred is lower than the fair value of the net assets acquired, the difference is recognized
as a gain in Other Comprehensive Income or Profit or Loss, after reassessing the fair values and the consideration
transferred.” Transaction costs incurred in connection with a business combination are expensed as incurred, except for
costs to issue debt or equity securities, which are recognized in accordance with Ind AS 32 and Ind AS 109."

7. Contract Assct/Liability :

Contract assets are recognised when there are excess of revenues earned over billings on contracts. Contract assets are
classified as unbilled receivables (only act of invoicing is pending) when there is unconditional right to receive C3Sh, and
only passage of time is required, as per contractual terms. Unearned and deferred revenue (‘contract liability”) is
recognised when there are billings in excess of revenues.

8. Income Tax and Deferred Tax

1. 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. by the end of reporting period.

2. Current Tax items are recognized in correlation to the underlying transaction either in the Statement of Profit and Loss,
other comprehensive income or directly in equity.

3. Deferred tax is provided using the Balance Sheet method on temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

4. Defened tax liabilities are recognized for ail taxable temporary differences. Deferred tax assets are recognized for all
deductible temporary differences, the carryforward of unused tax credits and any unused tax losses.

5. 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 utilised.
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 profit will be available to allow all or part of the deferred tax asset to be utilized.

6. 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.

7. 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.

8. 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.

9. Cash and Cash Equivalent

Cash and cash equivalents indudes cash on hand, deposits held at call with finandal institutions, other shorter highly liquid
investment with original maturities of three months or less that are readily convertible to know amounts of cash and which
are subject to an insignificant risk of changes in values.

10. Rovenuc Recognition

1. "As per provision of IND AS 115 Revenue from Contracts with Customer , revenue is recognised on transfer of control
of goods or services to a customer at an amount that reflects the consideration to which the Company is expected to be
entitled to in exchange for those goods or services. Revenue towards satisfaction of a performance obligation is measured
at the amount of transaction price (net of variable consideration) allocated to that performance obligation. The transaction
price of goods sold. and services rendered is net of variable consideration on account of discounts offered by the Company
as part of the contractual obligation. Revenue (net of variable consideration) is recognised only to the extent that it is highly
probable that the amount will not be subject to significant uncertainty regarding the amount of consideration that will be
derived from the sale of goods. The performance obligation in case of sale of goods is satisfied at a point in time i.e.. when
the material is shipped to the customer or on delivery to the customer. 3s may be specified in the contract Sales are net of
returns, trade discounts, rebates and sales taxes / Goods and Service Tax (GST).

2. Construction Contract Revenue is recognised over time as the services are provided by output method as per Ind AS
115. the percentage of progress for determining the amount of revenue to recognise is assessed based on surveys
conducted by independent surveyor of work performed.

3. Secunty deposit interest income is recorded using the effective interest rate (E1R). which is the rate that discounts the
estimated future cash payments or receipts through the expected life of the financial instruments or a shorter period, where
appropriate, to the net carrying amount of the financial assets. Other Interest income is recognized as and when received
at actual rate. Interest income is included in other income in the Statement of Profit and Loss.

4. Other income have been recognized on accrual basis in the financial statements.

11. Employee Benefits

a) Short-Term Employee benefits

All employee benefits payable wholly within twelve months of rendenng the service are classified as short-term employee
benefits Benefits such as salaries, performance incentives, etc., are recognized as an expense at the undiscounted
amount in the Statement of Profit and Loss of the year in which the employee renders the related service.

b) Post Employment Benefits

• Defined Benefit Plans

The Company's net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the
amount of future benefit that employees have earned in the current and prior periods, after discounting the same. The
calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit
method. Re-measurement of the net defined benefit liability, which comprise actuarial gains and losses are recognized
immediately in Other Comprehensive Income (OCI). Net interest expense (income) on the net defined liability (assets) is
computed by applying the discount rate, used to measure the net defined liability (asset). Net interest expense and other
expenses related to defined benefit plans are recognized in Statement of Profit and Loss When the benefits of a plan are
changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on
curtailment is recognized immediately in Statement of Profit and Loss. The Company recognizes gains and losses on the
settlement of a defined benefit plan when the settlement occurs.

• Defined Contribution Plans

Payments made to a defined contribution plan such as Provident Fund maintained with Regional Provident Fund Office
are charged as an expense in the Statement of Profit and Loss as they fall due.