(C) Significant Accounting Policies

1) Use of Estimates:

The preparation of the financial statements in conformity with GAAP requires management to make
estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating
to contingent liabilities as at the date of the financial statements and reported amounts of income and
expenses during the period. Examples of such estimates include computation of percentage of completion
which requires the Company to estimate the efforts or costs expended to date as a proportion of the total
efforts or costs to be expended, provisions for doubtful debts, future obligations under employee retirement
benefit plans, income taxes, post-sales customer support and the use-full lives of fixed tangible assets and
intangible assets. Accounting estimates could change from period to period. Actual results could differ from
those estimates. Appropriate changes in estimates are made as the Management becomes aware of changes
in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in
the period in which changes are made and, if material, their effects are disclosed in the notes to the financial
statements.

2) Fixed Assets & Depreciation:

Tangible Assets:

All items of fixed assets are stated at historical cost less accumulated depreciation. Historical cost includes
expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the
asset's carrying amount or recognized 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. The carrying amount of any component accounted for as a separate asset is derecognized when

replaced. All other repairs and maintenance expenses are charged to profit or loss during the reporting period
in which they are incurred

Depreciation on fixed assets is provided on pro rata basis as per Written Down Value Method, as specified in
Schedule II of the Companies Act, 2013.

Assets Acquired as Lease:

Leases under which the Entity assumes substantially all the risks and rewards of ownership are classified as
finance leases. Such assets are capitalized at fair value of the asset or present value of the minimum lease
payments at the inception of the lease, whichever is lower. Lease payments under operating leases are
recognized as an expense in the Proft and Loss Account on a straight-line basis over the lease term.

The cost of leasehold land is amortized over the period of the lease. Leasehold improvements and assets
acquired on finance lease are amortized over the lease term or useful life, whichever is lower.

Advances paid towards the acquisition of Property, Plant and Equipment

Advances paid towards the acquisition of Property, Plant and Equipment, outstanding at each balance sheet
date are shown under capital advances. The cost of the Property, Plant and Equipment not ready for its
intended use on such date, is disclosed under capital work-in- progress.

3) Impairment of Assets:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. Impairment loss
is charged to the Statement of Profit and Loss in the year / period 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 recoverable amount.

4) Investments:

Investments, which are readily realizable and intended to be held for not more than 12 months from the date
on which such investments are made, are classified as current investments. All other investments are classified
as long-term investments. On initial recognition, all investments are measured at cost. The cost comprises
purchase price and directly attributable acquisition charges such as brokerage, fees and duties. Current
investments are carried in the financial statements at lower of cost and fair value determined on an individual
investment basis. Long-term investments are carried at cost. However, provision for diminution in value is
made to recognize a decline other than temporary in the value of the investments

5) Inventories: The inventories are valued on the following basis:

a) Raw Materials: Valued at Cost Price or Net Realizable Value whichever is lower.

b) Finished goods and traded goods: Valued at lower of Cost or Net Realizable Value.

6) Employee Benefits:

All short-term employee benefits are accounted on undiscounted basis during the accounting period based on
services rendered by employees.

7) Revenue Recognition:

Revenue is recognised 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 recognised when the significant risks and rewards of ownership of the goods are
transferred to the buyer and are recorded net of trade discounts, rebates, Goods and Service Tax.

Interest Income

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

Dividend Income

Dividend is recognised when the company's right to receive dividend is established.

8) Foreign Currency Transaction:

Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the
year / period are translated at year / period end rates.

The difference in translation of monetary assets and liabilities and realized gains and losses on foreign
transactions are recognized in the Statement of Profit and Loss.

The premium or discount on forward exchange contracts is recognized in the statement of profit and loss over
the period of the contract.

9) Taxation

Tax expenses comprise current tax (amount of tax for the period determined in accordance with the Income
Tax Regulations in India) and deferred tax charge or credit (reflecting 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 recognised using
the tax rates that have been enacted or substantively enacted by the Balance Sheet date, Deferred tax assets
are recognised only to the extent there is reasonable certainty that the assets can be realized in future;
however, when there is unabsorbed depreciation or carry forward losses under taxation laws, deferred tax
assets are recognised only if there is a virtual certainty of realization of such assets. Deferred tax assets are
reviewed at each Balance Sheet date and written down or written up to reflect the amount that is reasonably
/ virtually certain, as the case may be, to be realized

Tax credit is recognised in respect of Minimum Alternate Tax (MAT) as per the provisions of Section 115JAA of
the Income Tax Act, 1961 based on convincing evidence that the Company will pay normal income tax within
the statutory time frame and is reviewed at each Balance Sheet date.

10) Borrowing Cost:

Borrowing Costs relating to the acquisition/construction of qualifying assets are capitalized until the time all
substantial activities necessary to prepare the qualifying assets for their intended use are complete. A
qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All
other borrowing costs are charge to revenue.

11) Earnings Per Share:

Basic earnings per share is calculated by dividing the net profit after tax for the year / period attributable to
Equity Shareholders of the Company by the weighted average number of Equity Shares outstanding at the end
of the year / period. Diluted earnings per Share is calculated by dividing net profit attributable to equity
Shareholders (after adjustment for diluted earnings) by average number of weighted equity shares outstanding
at the end of the year / period.