B. Significant accounting policies:

1. Basic of Accounting

The financial statements are prepared under historical cost convention from the books of accounts
maintained under accrual basis except for certain financial instruments which are measured at fair
value and in accordance with the Indian Accounting Standards prescribed under Companies Act, 2013.

2. Application of Indian Accounting Standard (Ind-AS)

In the current year, Indian Accounting Standards (IndAS) have been notified by MCA under the
Companies (Indian Accounting Standards) Rules, 2015("IndAS Rules"), of the Companies Act, 2013 and
are mandatorily effective for the accounting period that begins on or after 1 April2020.

The Company has adopted all the IndAS applicable and its adoption was carried out in accordance with
IndAS 101- First Time Adoption of Indian Accounting Standards. The transition was carried out from
the previous accounting principles generally accepted in India (IGAAP) to the current Ind AS and its
effect with reconciliation and description have been summarized in Note No. I, II & III.

3. Use of Estimates

The preparation of the Company's financial statements requires management to make judgments,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and
liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty
about these assumptions and estimates could result in outcomes that require a material adjustment to
the carrying amount of assets or liabilities affected in future periods.

4. Revenue Recognition

The company earns and recognizes the income on accrual basis. The revenue is recognized when it is
earned and no significant uncertainty exists as to its ultimate realization or collection.

5. Employees Benefit

Retirement benefit costs and termination benefits

Payments to defined contribution retirement benefit plans are recognized as an expense when
employees have rendered service entitling them to the contributions.

For defined benefit retirement benefit plans, the cost of providing benefits is determined using the
projected unit credit method, with actuarial valuations being carried out at the end of each annual
reporting period. Re- measurement, comprising actuarial gains and losses, the effect of the changes to
the asset ceiling (if applicable) and the return on plan assets (excluding interest), is reflected
immediately in the statement of financial position with a charge or credit recognized in other
comprehensive income in the period in which they occur. Re-measurement recognized in other
comprehensive income is reflected immediately in retained earnings and will not be reclassified to
Statement of Profit or Loss. Past service cost is recognized in Statement of Profit or Loss in the period
of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the
period to the net defined benefit liability or asset. Defined benefit costs are categorized as follows:

i. Service cost (including current service cost, past service cost, etc.);

ii. Net interest expense or income; and

iii. Re-measurement.

The company presents the first two components of defined benefit costs in profit or loss in the line
item 'employee benefits expense'.

The retirement benefit obligation recognized in the statement of financial position represents the
actual deficit or surplus in the company defined benefit plans. Any surplus resulting from this
calculation is limited to the present value of any economic benefits available in the form of refunds
from the plans or reductions in future contributions to the plans.

A liability for a termination benefit is recognized at the earlier of when the company can no longer
withdraw the offer of the termination benefit and when the company recognizes any related
restructuring costs.

Short-term and other long-term employee benefits

A liability is recognized for benefits accruing to employees in respect of wages and salaries, annual
leave and sick leave in the period the related service is rendered at the undiscounted amount of the
benefits expected to be paid in exchange for that service.

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted
amount of the benefits expected to be paid in exchange for the related service.

Liabilities recognized in respect of other long-term employee benefits are measured at the present
value of the estimated future cash outflows expected to be made by the company in respect of
services provided by employees up to the reporting date.

6. Depreciation and Amortization

The company has used the exemption available in Ind AS 101 with respect to recognition of Plant,
Property and Equipment (PPE) and Intangible Assets at their carrying value being deemed cost.

The depreciable amount of an item of PPE is allocated on a WDV basis over its useful life prescribed in
Schedule II of the Companies Act, 2013. The residual value and the useful life of an asset are reviewed,
at each financial year-end. Each part of an item of PPE with a cost that is significant in relation to the
total cost of the item is depreciated separately. Depreciation on all such items have been provided
from the date they are 'Put to Use' till the date of sale. Freehold land is not depreciated. The residual
value of all such items is taken at 5% of the original cost of individual asset.

An item of PPE is derecognized upon disposal or when no future economic benefits are expected to
arise from the continued use of the asset. Certain consumable items of small value whose useful life is
very limited are directly charged to revenue in the year of purchase.

From the date Ind AS came into effect, the carrying amount of an asset is depreciated over the
remaining useful life of the asset as per estimate of remaining useful life.Wherever, the remaining
useful life of an asset is nil, the carrying amount is recognized in the opening balance of retained
earnings after retaining the residual value.

7. Taxation

Income tax expense represents the sum of current tax.

Current Tax

The current tax payable is based on taxable profit for the year as determined from net profit before tax
as represented in Statement of Profit and Loss and Other Comprehensive Income, in line with different
provisions under Income Tax Act 1961.

Deferred Tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax bases used in the computation of
taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences.
Deferred tax assets are generally recognized for all deductible temporary differences to the extent that
it is probable that taxable profits will be available against which those deductible temporary
differences can be utilized.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable that sufficient taxable profits will be available to
allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in
the period in which the liability is settled or the asset realized, based on tax rates (and tax
laws) that have been enacted or substantively enacted by the end of the reporting period.

Current and Deferred Tax for the year

Current and deferred tax are recognized in Statement of Profit or Loss, except when they
relate to items that are recognized in other comprehensive income or directly in equity, in
which case, the current and deferred tax are also recognized in other comprehensive income
or directly in equity respectively.

8. Property Plant and Equipments

The cost of an item of PPE is recognized as an asset if and only if, 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 cost of an item of PPE is the cash price equivalent at the recognition date. The cost of an
item of PPE comprises:

1) Purchase price, including import duties and non-refundable purchase taxes, after deducting trade
discounts and rebates.

2) Costs directly attributable to bringing the PPE to the location and condition necessary for it to be
capable of operating in the manner intended by management.

3) The initial estimate of the costs of dismantling and removing the item and restoring the site on
which it is located, the obligation for which the company incurs either when the PPE is acquired or as a
consequence of having used the PPE during a particular period for purposes other than to produce
inventories during that period.

The company has chosen the cost model of recognition and this model is applied to an entire class of
PPE. After recognition as an asset, an item of PPE is carried at its cost less any accumulated
depreciation and any accumulated impairment losses.

In respect of expenditure during construction/development of a new unit/project in a new location, all
direct capital expenditure as well as all indirect expenditure incidentals to construction are capitalized
allocating to various items of PPE on an appropriate basis. Expansion program involving construction
concurrently run with normal production activities in an existing unit, all direct capital expenditure in
relation to such expansion are capitalized but indirect expenditure are charged to revenue. Borrowing
costs that are attributable to the acquisition or construction of qualifying asset are capitalized as part
of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to
get ready for its intended use.

Expenses incurred for implementation of new projects are carried forward against respective projects
till execution. Expenses rendered in fructuous projects abandoned subsequently are provided for in
the Statement of Profit & Loss.

9. Intangible Assets

Identifiable intangible assets are recognized when the company controls the asset; it is probable that
future economic benefits associated with respective assets will be realized for more than one
economic period. At initial recognition, intangible assets are recognized at cost. Intangible assets are
amortized on straight line basis over estimated useful life from the date on which they are available on
use. Intangible Assets other than Software are amortized over estimated useful life which is equivalent
to license period, generally not more than 5 years. However, Software which

10. Inventories

Stocks of raw materials and other stock of manufacturing purchase are values at cost and incidental
expenses there too. Loose tools when issued are charged off to revenue.

Finished goods and traded goods are valued at the lower of the cost of material consumed plus
manufacturing expenses incidental thereto or market value.

Scraps are valued at average market value of last month's sales.

Consumable items are valued at latest purchase price as the latest stocks are in the inventory.

The inventories out of inter-unit transfers at the close of the year are valued on the basis of cost to the
transferor unit.

There are no sales or purchase transaction during the year. We have taken same value of inventory
after giving effect of the theft quantity which was valued at the end of the previous year.

11. Foreign Exchange Transactions

Transactions in currencies other than the company's functional currency (foreign currencies) are
recognized at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are
retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are
denominated in foreign currencies are re-translated at the rates prevailing at the date when the fair
value was determined. Non-monetary items that are measured in terms of historical cost in a foreign
currency are not retranslated.

Foreign currency monetary items (except overdue recoverable where reliability is uncertain) are
converted using the closing rate as defined intheIndAS-21-Theeffectsof changes in Foreign Exchange
Rates. Non-monetary items are reported using the exchange rate at the date of the transaction. The
exchange difference gain/loss is recognized in the Statement of Profit and Loss.

Liability in foreign currency loans relating to acquisition of fixed assets is converted using the closing
rate as defined in IndAS 21-The effects of changes in Foreign Exchange Rates and the difference in
exchange is recognized in terms of exemptions given in paragraph D13AAof Appendix D toIndAS-
101,where the effect of exchange differences on foreign currency loans of the company is accounted
for by addition or deduction to the cost of the assets so far it relates to the depreciable capital assets
and shall be depreciated over the balance life of the assets is considered as Intangible Assets are fully
amortized in the year in which the expenses are incurred.