Material Accounting policies:

a) Significant accounting estimates, assumptions, and judgements;

The preparation of Company's financial statements requires management to make accounting
estimates, assumptions and judgements that affect the reported amounts of revenues, expenses,
assets and liabilities and the accompanying disclosures of contingencies at the end of the reporting
period. Uncertainty about these assumptions and estimates could result in outcomes that require
v^'T^msjerlal adjustment to the carrying amounts of assets or liabilities in future periods.

Estimates and Assumptions;

The key assumptions concerning the Future and other key sources of estimation of uncertainty at
the reporting date, that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year, are described below. The
assumptions and estimates made by the company are based on parameters avaifablc/prevailing
when the financial statements were prepared. Existing circumstances and assumptions about
future developments, however, may change due to market change or circumstances arising that
are beyond the control of the Company. Such changes are reflected in the assumptions when they
occur.

i. Impairment of non-current assets;

Impairment exists when the carrying value of an asset or cash generating unit exceeds its
recoverable amount, which is the higher of its fair value less costs of disposal and its value
in use. The fair value less costs of disposal is calculated based on available data from binding
sales transactions, conducted at arm's length, for similar assets or observable market prices
Jess Incremental costs for disposing of the asset. The value in use calculation is based on a
Discounted Cash Flow {"DCF") model. The value in use is sensitive to the discount rate
(generally weighted average cost of capital) used for the DCF model as well as the expected
future cash-inflows and the growth rate used for exploration purposes,
if. Defined Benefit Plans;

The present value of the gratuity obligation is determined using actuarial valuation. An
actuarial valuation involves making various assumptions that may differ from actual
developments in the future. These include the determination of the discount rate, rate of
increment in salaries and mortality rates. Due to complexities involved in the valuation and
its long-term nature, a defined benefit obligation is highly sensitive to changes in these
assumptions. All the assumptions are reviewed at each reporting date.

iii. Fair Value measurement of financial Instruments;

When the fair values of financial assets and financial liabilities on reporting date cannot be
measured based on quoted prices in active markets, their fair value is measured using
valuation techniques Le„ the DCF model. The inputs to these models are taken from
observable markets,

iv. Contingencies:

Management judgement is required forestimaiing the possible infbw/outflow of resources,
if any, in respect of contrngendes/daims/litigations against the company/by the company
as it is not possible to predict the outcome of pending matters with accuracy.

v. Property, Plant and Equipment:

Based on evaluations done by the technical assessment team, the management has adopted
the useful life and residua I value of its Property, Plant and Equipment. Management believes
. - Ý the assigned useful lives and residual value are reasonable

vl. Income Taxes:

Management judgment is required for the calculation of provision for income raxes and
deferred tax assets/(labilities. The Company reviews at each balance sheet date the carrying
amount of deferred tax assets/llabilities. The factors used in estimates may differ from
actual outcome which could lead to significant adjustment to the amounts reported in the
financial statements,

vii. Lifetime Expected Credit Loss on Trade Receivables and Other Receivables:

Trade and Other Receivables do not carry any interest and are stated at their transaction
value as reduced by lifetime expected credit tosses ("LTECL"). Management has evaluated
LTECL for different class of its debtors as follows:

b] Cu rre nt Vs No n-cu rre nt c lassifi cations

The Company presents assets and liabilities in the balance sheet based on current/ non-current
classification.

An asset is treated as current when it satisfies any of the following criteria:

i, Expected to be realised or intended to be soid or consumed in normal operating cycle;

1i. Held primarily for the purpose of trading;

iii. Expected to be realised within twelve months after the reporting period, or

iv, Cash or cash equivalent unless restricted from being exchanged or used to settle a liability

for at least twelve months after the reporting period. -

Ait other assets are classified as non-current assets.

A liability is classified as current when it satisfies any of the following criteria:

i. Expected to settle the liability in normal operating cycle;

ii. Held primarily for the purpose of trading;

iii. Due to be settled within twelve months after the reporting period, or

Iv. There is no unconditional right to defer the settlement of the liability for at least twelve
months after the reporting period

All other liabilities are classified as non-current.

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

The opera ti ng cycle i s t h e tim e b e twe en the acq uisi t io n of a sse t s Io r proee ss( ng a nd t he i r re a lisation
In cashand cash equivalents, However, a period of 12 months is considered as ultimate operating
cycle.

c) Property, Pfant, and Equipment;

Property, Plant and Equipment are stated at cost net of input credits, less accumulated
depreciation, and Impairment fosses, if any. Cast comprises the purchase price and any 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 take 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.

The company adopted cost mode] as its accounting policy in recognition of the property, Plant and
Equipment and recognises the transaction value as the cost

Subsequent expenditure is capitalised to the asset's carrying amount onby when it is probable that
future economic benefits associated with the expenditure will flow to the company and the cost of

the rtem can be measured reiiabty. Ail other repairs and maintenance costs are expensed when
incurred.

Capital work in progress includes cost of property, plant, and equipment under mstaflation/under
development as at the balance sheet date.

An item of Property, Plant and Equipment is derecognised upon disposal or when no future
economic benefits are expected from its use. Any gain or loss arising from derecognition of the
asset (calculated as the difference between the net disposal proceeds and the carrying amount of
the asset) Is recognised in the Statement of Profit and Loss. Property, Plant and Equipment which
are found to be not usable or retired from active use or when no further benefits a re expected from
their use are removed from the books of account and the carrying value if any is charged to
Statement of Profit and Loss.

Assets costing five thousand rupees or less are fully depreciated in the year of purchase,

Depreciation on Property, Plant and Equipment is provided based on the useful lives of the assets
as estimated by the Management, which are in line with Schedule 11 to the Companies Act, 2013

d) impairment of non-financial assets:

i The carrying aiiinunts of assets are reviewed at each balance sheet date if there IS any
indication ofimpairment based on internal/eaternal factors. An impairment loss Is recognized
wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable
amoubt is the greater of the asset's net selling price and value in use. In assessing value ,n
use the estimated future cash flews are discounted to their present value at the weighted
average eost of capital. After impairment, depreciation is provided on the revised carrying
a m aunt of th e asse t ove r its re ma i n i ng usefu 111fe-

ii Reversal of impairment losses raised In prior years is recorded when there is an
' indication that the impairment losses recognised for the asset no longer tf* or have

decreased- The reversal is limited so that the carrying amount of the asset does not exceed
K recoverable amount, nor exceed the carrylnt amount that would have been determined,
net of depredation, had no impairment loss been recognised for the asset in prior years.

e) Leases:

The determination of whether an agreement is (or contains) a lease is based on the substance of
the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilmeni
of the arrangement is dependent on the use of a specific asset or assets and the arrangement
conveys a right to use the asset or assets, even if that right is not explicitly speeded 1ft «•

arrangement.

Classification on inception of lease:

a. Operating lease:

Leases where the lessor effectively retains substantially all the risks and benefits of
ownership of the leased item, are classified as operating leases.

b, Finance Lease:

A lease is classified as a financial lease where the lessor transfers substantially all the risks
and rewards incidental to the ownership of the leased item.

Aceounting of Operating leases:

a Where the Company is the lessee:

At the date of commencement of the lease, the Company recognises a right-of-use asset
PROLT) and a corresponding lease liability for all lease arrangements in which it is a lessee,
except for Cancellable leases and short- term leases having a lease term up to 36
months. For remaining leases, the Company recognises the lease payments as an operating
expense on a straight-line basis over the period of the lease. In case the escalation m
operating lease payments is in line with the expected general inflation rate then the lease
payments are charged to statement of profit and loss instead of straight-line method

b wh e re th e Compa ny is th e iesso r:

Lease income is recognised in the Statement of Profit and Loss on a straight-line basis over
the lease term. Initial direct costs such as legal costs, brokerage costs, etc, are added to tl
. _[arrving .mount of the leased asset and recognised as an expense over the base term.

f) Inventories:

i, Raw Materials, Stores and Spares and Consumables are stated at 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 in which they will be incorporated and expected
to be sold at or above cost. Cost is determined on FIFO basis.

ii. Work in-progress and finished goods are stated at the lower of cost and net re a li;a hie value.

iti. Cost includes direct materials, labour and a proportion of manufacturing overheads based on
actual production. Cost is determined on FIFO basis,

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

g) Revenue recognition:

Revenue from contracts with customers includes Sale of Goods and Services and is recognised
when control of goods or services are transferred to the customer at an amount that reflects the
consideration entitled In exchange for those goods or services.

Revenue Is measured at the fair value of consideration received or receivable and Is recognized
when the control In all respects, over the Goods or Services is transferred to and accepted by the
customer and the company has not retained any significant risks of ownership and future
obligations with respect to such Goods or Services. Specifically, the following basis is adopted for
various sources of income:

I. sale of goods: Revenue is recognised when the significant risks and rewards of ownership of
the goods have been passed to the buyer and is disclosed net off discounts, taxes collected
and returns,

ii. Income from Services: Revenue is recognized as and when the Services are rendered as per
the terms of the individual Service Contract.

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

Iv. Other Sundry incomes: Insurance claims, conversion escalations are accounted for on accrual
basis.

h) Borrowing Costs:

Borrowing costs directly attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised
as part of the cost of the asset. All other borrowing costs are expensed in the period in which they
occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with
the borrowing of funds, Borrowing cost also includes exchange differences to the extent regarded
as an adjustment to the borrowing costs, ^ - ":v

i) Retirement and other employee benefits:

l. Employer's contribution to Provident Fund/Employee State Insurance, which is in the nature
of defined contribution scheme, is expensed off when the contributions to the respective
funds are due. There are no other obligations other than the contribution payabieto the fund,

li. The company operates a gratuity plan which is in the nature of defined benefit obligation.
The company's liability is provided based on Independent actuarial valuation on projected
unit credit method made at the end of each financial year as per the requirements of Ind AS
19 on "Employee Benefits".

iii. Gratuity liability is considered as post-employment benefit expense as per Ind AS -19-
Accord ingly, re-measurement gains and losses arising from experience adjustments and
changes in actuarial assumptions are recognised in the period in which they occur, directly in
other comprehensive income. They are included in the retained earnings in the statement of
changes in equity and in the balance sheet.

|v. Accumulated leaves, which are expected to be utilised within the next twelve months, are
treated as short-term employee benefits. The Company measures the expected cost of such
absences as the additional amount that it expects to pay as a result of the unused entitlement
that has accumulated at the reporting date.

The Company treats accumulated leaves expected to be carried forward beyond twelve
months, as long-term employee benefit for measurement purposes. Such long-term
compensated absences are provided for based on the actuarial valuation using the projected
unit credit method at the year-end. Actuarial gaiins/iosses are immediately taken to the
statement of profit and loss and are not deferred,
jj Earnings Per Share:

Basic earnings per share are calculated by dividing the profit for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the profit for the period attributable to
equity shareholders and the weighted average number of shares outstanding during the period
are adjusted for the effects of all dilutive potential equity shares,