B. SIGNIFICANT ACCOUNTING POLICIES

1. BASIS OF PREPARATION:

The accompanying financial statements are prepared in compliance with the requirements under section 133 of the
Companies Act, 2013("the Act") read with Rule 7 of the Companies (Accounts) Rules, 2014 and Companies
(Accounting Standard Amendment Rules, 2016) and other Generally Accepted Accounting Principles("GAAP") in
India, under the historical cost convention, on the accrual basis of accounting.

All the assets and liabilities have been classified as current or non-current as per Company's normal operating cycle
and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of activities, the
Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification
of assets and liabilities.

2. Revenue Recognition:

Revenue is recognized only when risks and rewards incidental to ownership are transferred to the customer, it can
be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations includes sale of
goods and sales during trial run period, adjusted for discounts (net), Revenue is measured at the amount of
consideration which the company expects to be entitled to in exchange for transferring distinct goods or services to
a customer, excluding amounts collected on behalf of the third parties (for example taxes and duties collected on
behalf of the government). Consideration is generally due upon satisfaction of performance obligation and a
receivable is recognized when it becomes unconditional.

Interest Income from a Financial Assets is recognized on a time proportion basis using effective interest rate.

Dividend income is recognized when the Company's right to receive the amount has been established.

Export incentive revenues are recognized when the right to receive the credit is established and there is no
significant uncertainty regarding the ultimate collection.

Surplus or loss on disposal of property, plants and equipments or Investments is recorded on transfers of title from
the Company, and is determined as the difference between the sale price and carrying value of the property, plants
and equipment or investments and other incidental expenses.

Claim receivable on account of Insurance is accounted for to the extent the Company is reasonably certain of their
ultimate collection.

Revenue from other income is recognized when the payment of that related income is received or credited.

3. Use of Estimates:

The preparation of financial statements in conformity with Indian GAAP requires the management to make
judgments, estimates and assumption that affect the reported amount of revenues, expenses, assets and liabilities
and the 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.

4. Property, Plant and Equipment:

Property, Plant & Equipment including intangible assets is stated at cost, trade discounts and rebates less
accumulated depreciation and accumulated impairment losses, if any. The cost of Tangible Assets comprises its
purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its
intended use. Subsequent expenditures related to an item of Tangible Asset are added to its book value only if they
increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Expansion Projects: Cost of property, Plant and Equipment not ready for intended use, as on the balance sheet date,
is shown as a "Capital Work-in-Progress". The Capital Work-in-progress is stated at cost. Other Indirect Expenses
incurred relating to the project, net of income earned during the project development stage prior to its intended use,
are considered as pre-operative expenses and disclosed under "Other Non-Current Assets".

Intangible Assets: Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated
amortization/depletion. The cost comprises purchase price, borrowing costs, and any cost directly attributable to
bringing the asset to its working condition for the intended use. 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 entity and the cost can be measured reliably.

5. Depreciation:

Tangible Assets: - Depreciation on Property, Plant and Equipment is provided to the extent of depreciable amount on
the Written Down Value (WDV) Method. Depreciation is provided based on useful life of the assets as prescribed in
Schedule II to the Companies Act, 2013. Depreciation on assets acquired/sold during the year is recognized on a pro¬
rata basis to the statement of profit and loss till the date of acquisition/sale.

6. Investments:

Investments, which are readily realizable and intended to be held for not more than one year from the date on which
such investments are made, are classified as current investments. All other investments are classified as non-current
investments. 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 or fair value determined either
on an individual investment basis or by category of investment. Long term investments are carried at cost. However,
provision for diminutions in value is made to recognize a decline other than temporary in the value of the
investments. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is
charged or credited to the Statement of Profit and Loss.

7. Inventories:

Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any.
Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing
overheads incurred in bringing them to their respective present location and condition. Under cost FIFO method is
used to value the inventory. Net realizable value is the estimated selling price in the ordinary course of business, less
estimated cost necessary to make the sale.

8. Impairment of Non-Financial Assets-Propertv. Plant and Equipment and Intangible Assets

The Company assesses at each reporting date as to whether there is any indication that any Property, plant and
equipment and Intangible Assets or group of Assets, called Cash Generating Units (CGU) may be impaired. If any
indication exists, the recoverable amount of an assets or CGU is estimated to determine the extent of impairment, if
any. When it is not possible to estimate the recoverable amount of an individual asset, the company estimates the
recoverable amount of the CGU to which the asset belongs.

An impairment loss is recognized in the Statement of Profit and Loss to the extent, asset's carrying amount exceeds
its recoverable amount. The recoverable amount is higher of an asset's fair value less cost of disposal and vale in use.
Value in use is based on the estimated future cash flows, discounted to their present value using pre-tax discount
rate that reflects current market assessments of the time value of money and risk specific to the assets.

9. Borrowing Costs:

Borrowing costs are interest, commitment charges and other costs incurred by an enterprise in connection with Short
Term/Long Term borrowings of funds. Borrowing costs that are attributable to the acquisition or construction of the
qualifying assets are capitalized as part of the cost of such assets, up to the date the asset is ready for its intended
use. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended uses or
sale. All other borrowing costs are charged to revenue in the year of incurrence. The amount of borrowing cost
capitalized during the year is Nil.

10. Foreign Currency Transactions:

(a) Initial Recognition

Transaction in foreign currency are accounted for at exchange rate prevailing on the date of the transactions.

(b) Measurement of foreign currency monetary items at Balance Sheet date:

Foreign currency monetary items(other than derivative contracts) as at Balance Sheet date are restated at the
yearend conversion rate of currency.

(c) Exchange Difference

Exchange differences arising on settlement of monetary items are recognized as income or expenses in the
period in which they arise. Exchange difference arising of foreign currency monetary items as at the yearend
being difference between exchange rate prevailing on initial recognition transaction is adjusted in statement of
Profit & Loss for the respective year.

11. Taxes on Income:

Tax expense for the year comprising current tax & deferred tax are considered in determining the net profit for the
year. Provision for current tax is made on the basis of estimated taxable income for the current accounting year in
accordance with the Income Tax Act, 1961. The provision is made for deferred tax for timing difference arising
between taxable income & accounting income at currently enacted or substantively enacted tax rates, as the case
may be. Deferred tax assets (other than in situation of unabsorbed depreciation and carry forward losses) are
recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of
their respective carrying values at each Balance Sheet date. Deferred tax assets, in situation of unabsorbed
depreciation and carry forward losses under tax laws are recognized only to the extent that where is virtual certainty
supported by convincing evidence that sufficient future taxable income will be available against which such deferred
tax assets can be recognized. Deferred Tax Assets and Deferred Tax Liability are been offset wherever the Company
has a legally enforceable right to set off current tax assets against current tax liability and where the Deferred Tax
Asset and Deferred Tax Liability related to Income taxes is levied by the same taxation authority.

12. Retirement Benefits:

(A) Short-Term Employee Benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services
rendered by employees are recognized as an expense during the period when the employees render the services.

(B) Post-Employment Benefits
Defined Contribution Plan:

The Company has defined Contribution Plans for Post-employment benefits in the form of Provident Fund for
employees which are administered by Regional Fund Commissioner. Provident Fund and Employees State Insurance
are classified as defined contribution plans as the Company has no further obligation beyond making the
contributions. The Company's contribution to Defined Contribution plans is charged to the Statement of Profit and
Loss as and when incurred.

Defined Benefit Plan:

Unfunded Plans, the Company has a defined benefit plans for post-employment benefit in the form of Gratuity.
Liability for the above defined benefit plan is provided on the basis of valuation, as on the Balance Sheet Date,
carried out by an independent actuary.