2 SIGNIFICANT ACCOUNTING POLICIES:

a) Basis of preparation of Standalone Ind AS Financial Statements:

Statement of Compliance

These standalone financial statements of the Company have been prepared in accordance with the
recognition and measurement principles laid down in Indian Accounting Standards (hereinafter referred to
as the 'Ind AS') as notified under section 133 of the Companies Act, 2013 (The Act*) read with Rule 4 of the
Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act
and accountina Drincioles aenerallv accepted in India.

Functional and Presentation Currency

These standalone financial statements are presented in Indian rupees, which is the functional currency of
the Company.

Basis of measurement

These standalone financial statements are prepared under the historical cost convention unless otherwise
indicated and under the accrual system of accounting.

Current /Non-Current Classification

Any asset or liability is classified as current if it satisfies any of the following conditions:

i. the asset/liability is expected to be realized/settled in the Company's normal operating cycle;

ii. the asset is intended for sale or consumption;

iii. the asset/liability is held primarily for the purpose of trading;

iv. the asset/liability is expected to be realized/settled within twelve months after the reporting period;

v. the asset is cash or cash equivalent unless it is restricted from being exchanged or used to settle a

vi. in the case of a liability, the Company does not have an unconditional right to defer settlement of the
liability for at least twelve months after the reporting date,

All other assets and liabilities are classified as non-current.

For the purpose of current/non-current classification of assets and liabilities, the Company has ascertained
its normal operating cycle as twelve months. This is based on the nature of services and the time between
the acquisition of assets or inventories for processing and their realization in cash and cash equivalents.

Use of Estimates and Judgements

The preparation of the Standalone Financial Statements in conformity with Ind AS requires the
Management to make estimates and assumptions considered in the reported amounts of assets and
liabilities (including contingent liabilities) and the reported income and expenses during the year. The
Management believes that the estimates used in preparation of the Standalone Financial Statements are
prudent and reasonable. Future results could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which the results are known/ materialize.
Estimates and underlying assumptions are reviewed on an ongoing basis. Information about critical
judgments in applying accounting policies, as well as estimates and assumptions that have the most
significant effect to the carrying amounts of assets and liabilities within the next financial year, are included

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Basis of Accounting

The company follows the accrual system of accounting in respect of all items of income and expenditure
except Warranty claims from customers which are accounted in the year of claim / settlement. Non¬
provision for the same on accrual basis is not expected to have a material effect on the account.

b) Property, Plant And Equipment:

Tangible assets are stated at cost of acquisition inclusive of freight, duties, taxes and incidental expenses
relating to acquisition, installation, and erection and commissioning less depreciation. Subsequent
expenditure related to property, plant and equipment is capitalized only when it is probable that future
economic benefits associated with these will flow to the Company and the cost of item can be measured
reliably. Other repairs and maintenance costs are recognized in the Statement of Profit & Loss while

Internally manufactured assets are valued at cost or estimated market price, whichever is lower.

The Company had elected to consider the carrying value of all its property, plant and equipment appearing
in the financial statements prepared in accordance with Accounting Standards notified under the section
133 of the Companies Act 2013, read together with Rule 7 of the Companies (Accounts) Rules, 2014 and
used the same as deemed cost in the opening Ind AS Balance sheet prepared on 1st April, 2016.

Capital Work in Progress and Capital Advances

Cost of assets not ready for intended use, as on the balance sheet date, is shown as capital work in
progress. Advances given towards acquisition of fixed assets outstanding at each balance sheet date are
disclosed as Other Non-Current Assets.

Depreciation and amortization

Depreciation on tangible assets is provided on the straight-line method over the useful lives of assets as
specified under Schedule II of the Companies Act, 2013. Depreciation for assets purchased/sold during a
period is proportionately charged. The useful lives of assets are as follows:

c) Inventories:

Raw materials, stores, spare parts and components are valued on the basis of Weighted Average Method
after providing for obsolescence. Work-in-process is valued at cost (less provision for diminition in
realisable value). Finished goods are valued at cost or net realizable value whichever is lower. Cost for the
purpose of Work in Process and finished goods include material cost valued as per weighted average
method and applicable conversion cost. Materials in transit are valued at cost inclusive of Customs duty
and other incidental expenses payable.

d) Research And Development Expenditure:

Revenue expenditure in carrying out Research and Development activities is charged to statement of profit
& loss of the year in which it is incurred.

e) Revenue Recognition:

(i) Revenue from contract with customers is recognised on transfer of control of promised goods or
services to a customer at an amount that reflects the consideration to which the company is expected to be
entitled to in exchange for those goods or services.

Revenue from sale of products is recognised when the control on goods have been transferred to the
customer. The performance obligation in case of sale of goods is satisfied at a point in time, i.e when the
installaion and commissioning is completed.

Revenue from services is recognised upon completion of performance obligation. /%-

(ii) Revenue from the sale of goods includes excise duty (where applicable) and is measured at the fair
value of the consideration received or receivable (after including fair value allocations related to multiple
deliverable and/or linked arrangements), net of returns, sales tax/Goods and Services Tax (GST) and
applicable trade discounts and allowances. Revenue includes shipping and handling costs billed to the
customer. The timing of the transfer of control varies depending on the individual terms of the sales
agreements.

(iii) Interest income is recognized on time proportion basis.

(iv) Dividend income is recognized, when the right to receive the dividend is established.

f) Borrowing Cost:

Interest and other costs in connection with borrowing of funds to the extent related / attributed to the
acquisition / construction of qualifying assets are capitalized up to the date when such assets are ready for
their intended use and other borrowing costs are charged to the Statement of Profit and Loss as and when
incurred.

g) Foreign Currency Translation:

Transactions in foreign currency are accounted for at the exchange rate prevailing on the date of
transactions. The exchange differences arising on their settlement are dealt with in the statement of profit
and loss in the year of settlement. All monetary items denominated in foreign currency are restated at the
year-end exchange rate and the differences arising from such restatement are recognised in the statement
of profit and loss.

h) Employee Benefits:

(i) Short Term Employee Benefits:

Employee benefits payable wholly within twelve months of rendering the service are classified as short
term. Benefits such as salaries, bonus, ex-gratia etc. are recognised in the period in which the employee
renders the related service.

(ii) Post-Employment Benefits:

(A) Defined Contribution Plans:

The Company has contributed to Provident Fund, Superannuation Fund, Pension Fund and Employee
Deposit Linked Insurance Fund which are defined contribution plans. The contributions paid/ payable
under the scheme to the Regional Provident Fund Commissioner/ LIC of India is recognised during the year
in which employee renders the related service.

(B) Defined Benefit Plans:

(a) Employee Gratuity

Employees' gratuity is a defined benefit plan which is funded by way of contributions to Group Gratuity
Scheme of Life Insurance Corporation of India (except in respect of Managing Director). The present value
of the obligation under such plan along with liability of Managing Director has been determined based on
completed service at the end of the year as per actuarial valuation under projected unit credit method.
Actuarial gain / losses are recognized in statement of profit and loss immediately.

(b) Compensated Absences (Leave Encashment)

Contribution towards Compensated Absences is a defined benefit plan. Accumulated Compensated
absences, which are expected to be availed or encashed within 12 months from the end of the year are
treated as short term employee benefits.The obligation towards the same is measured at the expected cost
of accumulating compensated absences as the additional amount expected to be paid as a result of the
unused entitlement as at the year end. Accumulated compensated absences, which are expected to be
availed or encashed beyond twelve months from the end of the year are treated as other long term
employee benefits.The company's liability is actuarially determined(using the Projected Unit Credit Method)
at the end of each year. Actuarial losses/gains are recognized in the statement of Profit and Loss in the
year in which they arise. Compensated absences is covered under Pension and Group schemes of the Life

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i) Taxes On Income:

Provision for current tax is made after considering (i) eligibility to set off brought forward losses under
Income Tax laws and (ii) excess / short liability relating to earlier years. Deferred tax liability on account of
timing differences are provided considering the tax rates and the tax laws enacted as at the Balance Sheet
date. However, deferred tax assets are recognised to the extent there is reasonable probability that
sufficient future profits will be available to utilise the same.

Uncertainty over Income Tax Treatment and Tax Liability thereon

The company has examined the issue of any uncertainty over tax treatment to be used in its income tax
filings and based on prevailing position, is of the opinion that no reasonable uncertainty exists in the
approach adopted by the company.