Significant accounting policies adopted by the company are as under:

2.1 Basis of Preparation of Financial Statements

(a) Statement of compliance and basis of presentation

These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS)
notified under Section 133 of the Companies Act, 2013 (the "Act") read with the Companies (Indian Accounting
Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

The financial statements are presented in Indian Rupees (“INR”) and all values are rounded to the nearest
Rupee, except when otherwise indicated.

(b) Basis of measurement

The financial statements have been prepared on the historical cost convention except for certain financial
assets and liabilities measured at fair value in accordance with the accounting policy of the Company.

(c) Use of estimates and judgements

The preparation of financial statements in conformity with Ind AS requires the Management to make estimate
and assumptions that affect the reported amount of assets and liabilities as at the Balance Sheet date,
reported amount of revenue and expenses for the year and disclosures of contingent liabilities as at the
Balance Sheet date. The estimates and assumptions used in the accompanying financial statements are based
upon the Management's evaluation of the relevant facts and circumstances as at the date of the financial
statements. Actual results could differ from these estimates. Estimates and underlying assumptions are
reviewed on a periodic basis. Revisions to accounting estimates, if any, are recognized in the year in which
the estimates are revised and in any future years affected. Refer Note 3 for detailed discussion on estimates
and judgments.

2.2 Property, plant and equipment

Property, plant and equipment are stated at cost of acquisition or construction 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 are
charged to Statement of Profit and Loss during the year in which they are incurred.

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet
date is classified as capital advances under other non-current assets and the cost of assets not put to use
before such date are disclosed under ‘Capital work-in-progress’.

Depreciation methods, estimated useful lives

The Company depreciates property, plant and equipment over their estimated useful lives using the written
down Value method. The estimated useful lives of assets are as follows:

Leasehold land is amortised over the period of lease. Buildings constructed on leasehold land are depreciated
based on the useful life specified in Schedule II to the Companies Act, 2013, where the lease period of land is
beyond the life of the building.

Based on the technical experts assessment of useful life, certain items of property plant and equipment are
being depreciated over useful lives different from the prescribed useful lives under Schedule II to the
Companies Act, 2013. Management believes that such estimated useful lives are realistic and reflect fair
approximation of the period over which the assets are likely to be used.

Depreciation on addition to property plant and equipment is provided on pro-rata basis from the date of
acquisition. Depreciation on sale/deduction from property plant and equipment is provided up to the date
preceding the date of sale, deduction as the case may be. Gains and losses on disposals are determined by
comparing proceeds with carrying amount. These are included in Statement of Profit and Loss under 'Other
Income'.

Depreciation methods, useful lives and residual values are reviewed periodically at each financial year end
and adjusted prospectively, as appropriate.

2.3 Goodwill

Goodwill represents the future economic benefits arising from a business combination that are not individually
identified and separately recognised. Goodwill is carried at cost less accumulated impairment losses. Refer
Note 8.1 for a description of impairment testing procedures.

2.3 Other Intangible Assets

Other Intangible assets are stated at acquisition cost, net of accumulated amortization.

Amortisation, estimated useful lives

The Company amortises intangible assets over their estimated useful lives using the written down value
method. The estimated useful lives of intangible assets are as follows:

Impairment of Assets

Intangible assets with finite lives are assessed for impairment whenever there is an indication that the
intangible asset may be impaired. The amortization period and the amortization method for an intangible
asset with a finite useful life are reviewed at least at each financial year end.

2.4 Foreign Currency Transactions

(a) Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economic
environment in which the entity operates (‘the functional currency’). The financial statements are presented
in Indian rupee (INR), which is the Company’s functional and presentation currency.

(b) Transactions and balances

On initial recognition, all foreign currency transactions are recorded by applying to the foreign currency
amount the exchange rate between the functional currency and the foreign currency at the date of the
transaction. Gains/Losses arising out of fluctuation in foreign exchange rate between the transaction date and
settlement date are recognised in the Statement of Profit and Loss.

All monetary assets and liabilities in foreign currencies are restated at the year end at the exchange rate
prevailing at the year end and the exchange differences are recognised in the Statement of Profit and Loss.
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.

2.5 Revenue Recognition
Rendering of services

Revenue from services is recognised in accordance with the specific terms of contract or performance and the
amount of revenue can be reliably measured.

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as
revenue are net of indirect taxes, trade allowances, rebates and amounts collected on behalf of third parties
and is not recognised in instances where there is uncertainty with regard to ultimate collection. In such cases
revenue is recognised on reasonable certainty of collection.

Other Income

Interest Income is recognised on a basis of effective interest method as set out in Ind AS 109, Financial
Instruments, and where no significant uncertainty as to measurability or collectability exists.

Dividend income is accounted for when the right to receive the same is established, which is generally when
the shareholders approve the dividend.

2.6 Taxes on Income

Tax expense for the year, comprising current tax and deferred tax, are included in the determination of the
net profit or loss for the year.

(a) Current income tax

Current tax assets and liabilities are measured at the amount expected to be recovered 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 year end date. Current tax assets and tax liabilities are offset where the entity
has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and
settle the liability simultaneously.

(b) Deferred tax

Deferred income tax is provided in full, using the balance sheet approach, on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in financial statements. Deferred
income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction
other than a business combination that at the time of the transaction affects neither accounting profit nor
taxable profit (tax loss). Deferred income tax is determined using tax rates (and laws) that have been enacted
or substantially enacted by the end of the year and are expected to apply when the related deferred income
tax asset is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to utilize those temporary differences and losses.

Management periodically evaluates positions taken in tax returns with respect to situations in which
applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis
of amounts expected to be paid to the tax authorities

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax
assets and liabilities and when the deferred tax balances relate to the same taxation authority.

(C) Current and deffered tax for the year

Current and deferred tax is recognized in Statement of Profit and Loss, except to the extent that it relates to
items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised
in other comprehensive income or directly in equity, respectively.

2.7 Leases

As a lessee

Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company
as a lessee are classified as operating leases. Payments made under operating leases (net of any incentives
received from the lesser) are charged to Statement of Profit and Loss on a straight-line basis over the period
of the lease unless the payments are structured to increase in line with expected general inflation to
compensate for the lessor’s expected inflationary cost increases.

Also initial direct cost incurred in operating lease such as commissions, legal fees and internal costs is
recognised immediately in the Statement of Profit and Loss.

Leases of property, plant and equipment where the Company, as lessee, has substantially all the risks and
rewards of ownership are classified as finance leases. Finance leases are capitalized at the lease’s inception at
the fair value of the leased property or, if lower, the present value of the minimum lease payments. The
corresponding rental obligations, net of finance charges, are included in borrowings or other financial
liabilities as appropriate. Each lease payment is allocated between the liability and finance cost. The finance
cost is charged to the Statement of Profit and Loss over the lease period so as to produce a constant periodic
rate of interest on the remaining balance of the liability for each period.

2.8 Inventories

Inventories are valued at the lower of cost and net realisable value.

In case of Raw materials, stores and consumable cost represents purchase price.

The comparison of cost and net realizable value is made on item by item basis.

2.9 Impairment of non-financial assets

The Company assesses at each year end whether there is any objective evidence that a non financial asset or a
group of non financial assets is impaired. If any such indication exists, the Company estimates the asset's
recoverable amount and the amount of impairment loss.

An impairment loss is calculated as the difference between an asset’s carrying amount and recoverable
amount. Losses are recognized in Statement of Profit and Loss and reflected in an allowance account. When
the Company considers that there are no realistic prospects of recovery of the asset, the relevant amounts are
written off. If the amount of impairment loss subsequently decreases and the decrease can be related
objectively to an event occurring after the impairment was recognised, then the previously recognised
impairment loss is reversed through Statement of Profit and Loss.

The recoverable amount of an asset or cash-generating unit (as defined below) is the greater of its value in
use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate that reflects current market assessments of the
time value of money and the risks specific to the asset. For the purpose of impairment testing, assets are
grouped together into the smallest group of assets that generates cash in flows from continuing use that are
largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”).