(A) Material Accounting Policies:

2.1 Statement of compliance and basis of preparation of Financial Statements:

The Financial Statements of the company have been prepared in accordance with the relevant provisions of the
Companies Act, 2013, the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting
Standards) Rules, 2015 read with the Companies (Indian Accounting Standards) Amendment Rules and
the Guidance Notes and other authoritative pronouncements issued by the Institute of Chartered Accountants
of India (ICAI).

The Financial Statements have been prepared on a historical cost basis, except for certain financial assets and
financial liabilities and defined benefit plans measured at fair value (refer accounting policy no. 2.10 and 2.11
regarding financial instruments and employee benefits respectively). Historical cost is generally based on the fair
value of the consideration given in exchange for goods and services.

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.

A fair value measurement of a non-financial asset takes into account a market participant's ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant that
would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable.

• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.

2.2 Current and Non-Current Classification of Assets and Liabilities and Operating Cycle:

An asset is considered as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realised within twelve months after the reporting period or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period

All other assets are classified as non-current.

A liability is considered as current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within 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
period

All other liabilities are classified as non-current.

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

The Operating Cycle is the time between the acquisition of assets for business purposes and their realisation into
cash and cash equivalents. The Company has considered an operating cycle of 12 months.

2.3 Property, Plant and Equipment:

Property, Plant and Equipment are recorded at their cost of acquisition, net of refundable taxes or levies, less
accumulated depreciation and impairment losses, if any. The cost thereof comprises of its purchase price, including
import duties and other non-refundable taxes or levies and any directly attributable cost for bringing the asset to its
working condition for its intended use.

Subsequent Expenditure

• Subsequent costs are included in the asset's carrying amount, only when it is probable that future economic
benefits associated with the cost incurred 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 derecognised when
replaced.

• Major inspection / repairs / overhauling expenses are recognised in the carrying amount of the item of property,
plant and equipment as a replacement if the recognition criteria are satisfied.

*An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal
or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition
of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is
included in the Statement of Profit or Loss when the asset is derecognised.

For transition to Ind AS, the Company has elected to continue with the carrying value of all its property, plant and
equipment recognised as on 1st April, 2016 (date of transition) measured as per previous GAAP as its deemed cost on
the date of transition.

2.4 Depreciation:

Depreciation on Property, Plant and Equipment is provided on different class of assets on the following basis:

Depreciation on additions to Property, Plant and Equipment is provided on pro-rata basis from the date of acquisition
or installation, and in case of new project from the date of commencement of commercial production.
Depreciation on Assets sold, discarded, demolished or scrapped, is provided upto the date on which the said Asset is
sold, discarded, demolished or scrapped.

Cost of Leasehold Land and Improvement is written off over the period of Lease.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each
financial year end and adjusted prospectively, if appropriate.

2.5 Capital Work in Progress and Capital Advances:

Expenses incurred for acquisition of capital assets outstanding at each balance sheet date are disclosed under
capital work-in-progress. Advances given towards the acquisition of fixed assets are shown separately as capital
advances under the head Other Non-Current Assets. Depreciation is not recorded on capital work-in-progress
until construction and installation are complete and the asset is ready for its intended use.

2.6 Intangible Assets and Amortisation thereof:

2.6.1 Internally generated Intangible Assets (Research and Development):

I) Research costs are expensed as incurred. Expenditure incurred on development of an individual project is
recognized as an intangible asset when the Company can demonstrate all of the following:

a) The technical feasibility of completing the intangible asset so that it will be available for use or sale.

b) Its intention to complete the asset and use it.

c) Its ability to use or sell the asset.

d) How the asset will generate future economic benefits.

e) The availability of adequate resources to complete the development and to use or sell the asset.

f) The ability to measure reliably the expenditure attributable to the intangible asset during development.

2.6.2 Other Intangible Assets:

An intangible asset is recognised if

a) it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity;
and

b) the cost of the asset can be measured reliably.

An item of Intangible Asset is derecognised upon disposal or when no future economic benefits are expected
from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is included in the Statement of Profit or
Loss when the asset is derecognised.

The residual values, useful lives and methods of amortisation of Intangible Assets are reviewed at each financial
year end and adjusted prospectively, if appropriate.

2.6.3 Amortisation of intangible Assets:

Amortization of the asset begins on a straight line basis over the period of expected future benefit from the related
project, i.e., the estimated useful life of ten years. Amortization is recognized in the Statement of Profit and Loss.
During the period of development, the asset is tested for impairment annually.

The residual values, useful lives and methods of amortisation of Intangible Assets are reviewed at each financial
year end and adjusted prospectively, if appropriate.

For transition to Ind AS, the Company has elected to continue with the carrying value of all its Intangible Assets
recognised as on 1st April, 2016 (date of transition) measured as per previous GAAP as its deemed cost on the
date of transition.

Intangible Assets with finite useful lives are amortised on a straight line basis over the following period:

Type of asset Useful Life

Technical Know How 10 Years

Product Development 10 Years

Computer Software 10 Years

Patent 5 Years

2.7 Impairment of Property Plant & Equipment and Intangible Assets

Carrying amount of tangible and intangible assets are reviewed at each Balance Sheet date. These are treated as
impaired when the carrying cost thereof exceeds its recoverable value. Recoverable value is higher of the
asset's net selling price or value in use. Value in use is the present value of estimated future cash flows expected
to arise from the continuing use of an asset and from its disposal at the end of its useful life. Net selling price
is the amount receivable from the sale of an asset in an arm's length transaction between knowledgeable,
willing parties, less the cost of disposal. An impairment loss is charged for when an asset is identified as impaired. The
impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of
recoverable amount.

2.8 Inventories:

Inventories are stated at lower of cost or net realisable value. The costs of various categories of inventories are
arrived at as follows :

a) Stores, spares, fuel & packing materials and raw materials - at costs determined on moving weighted average
method.

b) Cost of finished goods and work-in-progress includes the cost of raw materials, packing materials, an appropriate
share of fixed and variable production overheads, excise duty as applicable and other costs incurred in bringing
the inventories to their present location and condition. Fixed production overheads are allocated on the basis of
normal capacity of production facilities.

Net realisable value is the estimated selling price in the ordinary course of business.

2.9 Revenue Recognition

The Company derives revenues primarily from sale of manufactured goods, traded goods and related services.
Revenue is recognized on satisfaction of performance obligation upon transfer of control of promised products or
services to customers in an amount that reflects the consideration the Company expect to receive in exchange for
those products or services.

The Company does not expect to have any contracts where the period between the transfer of the promised goods or

services to the customer and payment by the customer exceeds one year. As a consequence, it does not adjust any of
the transaction prices for the time value of money.

The Company satisfies a performance obligation and recognises revenue over time, if one of the following
criteria is met:

1. The customer simultaneously receives and consumes the benefits provided by the Company's performance as
the Company performs; or

2. The Company's performance creates or enhances an asset that the customer controls as the asset is created or
enhanced; or

3. The Company's performance does not create an asset with an alternative use to the Company and an entity
has an enforceable right to payment for performance completed to date.

For performance obligations where one of the above conditions are not met, revenue is recognised at the point in
time at which the performance obligation is satisfied.

Revenue from sale of products and services are recognised at a time on which the performance obligation is satisfied
except Revenue from Project Contracts where in revenue is recognised over the time from the financial year in which
the Contract is commenced for execution. The period over which revenue is recognised is based on the Company's
right to payment for performance completed. In determining whether the Company has right to payment, the
Company considers whether it would have an enforceable right to demand or retain payment for performance
completed to date if the contract were to be terminated before completion for reasons other than Company's failure to
perform as per the terms of the contract.

Revenue in excess of invoicing are classified as contract asset while invoicing in excess of revenues are classified
as contract liabilities.

Interest Income:

For all financial instruments measured at amortised cost, interest income is measured using the Effective Interest
Rate (EIR), which is the rate that exactly discounts the estimated future cash flows through the contracted or
expected life of the financial instrument, as appropriate, to the net carrying amount of the financial asset.
Other Operating Revenue

Export incentives and subsidies are recognised when there is reasonable assurance that the Company will comply
with the conditions attached to them and the incentive will be received. Insurance claims are accounted to the extent
the Company is reasonably certain of their ultimate collection
Dividend Income:

Dividend income is recognised when the Company's right to receive the payment is established, which is generally
when shareholders approve the dividend.

2.10 Financial Instruments:

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.

(i) Financial Assets:

Initial Recognition and Measurement:

All financial assets are recognised initially 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.
Subsequent Measurement:

For purposes of subsequent measurement, financial assets are classified in three categories:

• Financial assets at Amortised Cost

• Equity instruments measured at fair value through other comprehensive income (FVTOCI)

• Investments measured at fair value through Profit & Loss (FVTPL)

Financial Assets at Amortised Cost:

A financial asset is measured at the Amortised Cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows,
and

b) Contractual terms of the asset give rise on specified dates to cash flows 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 on
acquisition and any fees or costs that are an integral part of the EIR.

The Company intends to hold its investment in open ended target maturity funds (i.e. exchange traded funds, debt
fund/ index fund, Gilt Fund) till maturity. It may be noted that these funds have a pre-determined maturity date.

These funds follow a passive buy and hold strategy; in which the existing underlying investment are expected to be
held till maturity unless sold for meeting redemptions or rebalancing requirements as stated in the scheme
document. In our view, such strategy mitigates intermittent price volatility in open ended target maturity funds'
underlying investments; and investors who remaininvested until maturity are expected to mitigate the
market/volatility risk to a large extent. Based on this, the Company believes that the investments in market linked
debentures meet the requirements of SPPI test as per the requirements of Ind AS 109.

In case of fixed maturity plans (FMP), they are measured at amortised cost, if the Company intends to hold the FMPs to
maturity. Further, the Company applies amortised cost for those FMPs where the Company is able to demonstrate
that the underlying instruments in the portfolio would fulfill the SPPI test and the churn in the underlying portfolio is
negligible. These conditions are assessed at each Balance Sheet date. If these conditions are not fulfilled, then FMPs
are valued at FVTPL.

Equity Instruments at FVTOCI:

For equity instruments not held for trading, an irrevocable choice is made on initial recognition to measure it at
FVTOCI. All fair value changes on such investments, excluding dividends, are recognized in the OCI. There is no
recycling of the amounts from OCI to profit or loss, even on sale or disposal of the investment. However, on sale or
disposal the company may transfer the cumulative gain or loss within equity.

Financial Assets at FVTPL

Even if an instrument meets the two requirements to be measured at amortised cost or fair value through other
comprehensive income, a financial asset is measured at fair value through profit or loss if doing so eliminates or
significantly reduces a measurement or recognition inconsistency (sometimes referred to as "accounting
mismatch") that would otherwise arise from measuring assets or liabilities or recognising the gains and losses on
them on different bases. All other financial assets are measured at fair value through profit or loss.

Investment in subsidiaries and associates

Investment in subsidiaries and associates are carried at cost less impairment, if any.

Derecognition:

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is
primarily derecognised (i.e. removed from the Company's statement of financial position) when:

i) The rights to receive cash flows from the asset have expired, or

ii) The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the
received cash flows in full without material delay to a third party under a "pass-through" arrangement and either;

a. The Company has transferred substantially all the risks and rewards of the asset, or

b. The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.

Impairment of Financial Assets:

The Company applies the expected credit loss (ECL) model for measurement and recognition of impairment loss on
the following financial assets and credit risk exposures:

• Financial assets at amortised cost.

• Trade Receivables

The company follows 'simplified approach' for recognition of impairment loss allowance on trade receivables. Under
this approach the company does not track changes in credit risk but recognises impairment loss allowance based on
lifetime ECLs at each reporting date. For this purpose the company uses a provision matrix to determine the
impairment loss allowance on the portfolio of trade receivables. The said matrix is based on historically observed
default rates over the expected life of the trade receivables duly adjusted for forward looking estimates.

For recognition of impairment loss on other financial assets and risk exposures, the company determines whether
there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased
significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly,
lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a
significant increase in credit risk since initial recognition, then the company reverts to recognising impairment loss
allowance based on 12-month ECL.

For assessing increase in credit risk and impairment loss, the company combines financial instruments on the basis
of shared credit risk characteristics with the objective of facilitating an analysis that is designed to enable significant
increases in credit risk to be identified on a timely basis.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a
financial instrument. The 12-month ECL is a portion of the lifetime ECL which results from default events on a
financial instrument that are possible within 12 months after the reporting date.

ECL is the difference between all contractual cash flows that are due to the company in accordance with the contract

and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR. The ECL
impairment loss allowance (or reversal) recognized during the period in the statement of profit and loss and the
cumulative loss is reduced from the carrying amount of the asset until it meets the write off criteria, which is generally
when no cash flows are expected to be realised from the asset.
ii) Financial Liabilities:

Initial Recognition and Measurement:

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net
of directly attributable transaction costs. The Company's financial liabilities include trade and other payables, loans
and borrowings including bank overdrafts.

Subsequent Measurement of Loans and Borrowings:

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using
the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as
through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium
on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in
the statement of profit and loss.

Derecognition:

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When
an existing financial liability is replaced by another from the same lender on substantially different terms, or the
terms of an existing liability are substantially modified, such an exchange or modification is treated as the
derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying
amounts is recognised in the statement of profit or loss.

(iii) Offsetting of Financial Instruments:

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet if there is a
currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to
realise an asset and settle the liabilities simultaneously.

(iv) Equity Instruments:

An equity instrument is any contract that evidences a residual interest in the assets of an entity in accordance with the
substance of the contractual arrangements. These are recognised at the amount of the proceeds received, net of
direct issue costs.

2.11 Employee Benefits

i) Defined Contribution Plan:

The Company's contribution paid / payable during the year to Provident Fund , ESIC, Superannuation Fund etc.,
are recognized as expenses in the Statement of Profit and Loss. These are approved / recognised schemes of the
Company.

ii) Defined Benefit Plan:

The gratuity payable to the employees is based on the Employees' service tenure and last drawn salary at the time
of leaving the service of the Company and is in accrodance with the rules of the Company. The cost of gratuity is
recognised as per actuarial valuation, using the projected unit credit method. Defined benefit costs are
categorized as follows:

service cost (including current service cost, past service cost, as well as gains and losses on curtailments and
settlements);

net interest expense or income; and
re-measurements.

The Company presents the first two components of defined benefit costs in statement of profit and loss in the line
item 'Employee Benefits Expenses'. Re measurement, comprising of actuarial gains and losses, the effect of the
asset ceiling (if applicable) and the return on plan assets (excluding amounts included in net interest on net
defined benefit liability), are recognized immediately in the Balance Sheet with a corresponding debit or credit to
retained earnings through Other Comprehensive Income (OCI) in the period in which they occur. Re¬
measurements are not reclassified to statement of profit and loss in subsequent periods.

iii) Other Long Term Benefits

Compensated absences which are not expected to occur within twelve months after the end of the period in which
the employee renders the related services are recognised as an actuarially determined liability at the present
value of the defined benefit obligation at the Balance sheet date. Actuarial gains / losses, if any, are recognized in
statement of profit and loss in the year in which they arise. Past service cost is recognised immediately in the
Statement of Profit or Loss.

iv) Other Short Term Benefits

The undiscounted amount of short-term employee benefit expected to be paid in exchange for the service
rendered by employees is recognised during the period when the employee renders the service. These benefits
include compensated absences such as paid annual leave and performance incentives and are determined using
the Projected Unit Credit Method.

2.12 Borrowing Costs:

Borrowing costs comprising of interest and other costs that are incurred in connection with the borrowing of funds,
that are attributable to the acquisition or construction of qualifying assets are considered as a part of cost of such
assets less interest earned on the temporary investment. A qualifying asset is one that necessarily takes substantial
period of time to get ready for the intended use. All other borrowing costs are charged to Statement of Profit & Loss in
the year in which they are incurred .

2.13 Leases:

The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a
lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys the right to control the use of an identified assets, the Company
assesses whether:

(i) the contact involves the use of an identified asset

(ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease
and

(iii) the Company has the right to direct the use of the asset.

As a lessee, the Company recognises a right of use asset and a lease liability at the lease commencement date.
The right of use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted
for any lease payments made at or before the commencement date, plus any initial direct costs incurred and 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.

The right of use asset is subsequently depreciated using the straight-line method from the commencement
date to the earlier of the end of the useful life of the right of use asset or the end of the lease term. The estimated
useful lives of right of use assets are determined on the same basis as those of property and equipment. In addition,
the right of use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements
of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily
determined, the Company's incremental borrowing rate. For leases with reasonably similar characteristics, the
Company, on a lease by lease basis, may adopt either the incremental borrowing rate specific to the lease or the
incremental borrowing rate for the portfolio as a whole.

Lease payments included in the measurement of the lease liability comprise the fixed payments, including in¬
substance fixed payments and lease payments in an optional renewal period if the Company is reasonably certain to
exercise an extension option;

The lease liability is measured at amortised cost using the effective interest method. The Company has elected
not to recognise right of use assets and lease liabilities for short-term leases that have a lease term of 12 months or
less and leases of low-value assets. The Company recognises the lease payments associated with these leases as an
expense on a straight-line basis over the lease term. The Company applied a single discount rate to a portfolio of
leases of similar assets in similar economic environment with a similar end date.

2.14 Foreign Currency Transactions:

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

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates
of exchange at the reporting date.

Differences arising on settlement or translation of monetary items are recognised as income or expenses in the
period in which they arise.

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. Non-monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss
arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain
or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is
recognised in OCI or profit or loss are also recognised in OCI or profit or loss, respectively).

2.15 Taxes on Income:

Current Income Taxes:

Current 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, at the reporting date.

Current income tax relating to items recognised directly in equity is recognised in other comprehensive income /
equity and not in the statement of profit and loss. Management periodically evaluates positions taken in the tax
returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes
provisions where appropriate.

Deferred Taxes:

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

Deferred tax liabilities are recognised for all taxable temporary differences, when the deferred tax liability arises from
an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects
neither the accounting profit nor taxable profit or loss

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits
and any unused tax losses. Deferred tax assets are recognised 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, except, when the deferred tax asset relating to the deductible temporary difference
arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the
time of the transaction, affects neither the accounting profit nor taxable profit or loss.

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 utilised.
Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has
become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is
realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at
the reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items
are recognised in correlation to the underlying transaction either in OCI or directly in equity.

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.