1. Significant Accounting Policies

1.1 Statement of Compliance and basis of preparation of Financial Statements

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind-
AS) as notified by Ministry of Corporate Affairs, Government of India vide Notification dated
February 16, 2015. Accounting policies have been applied consistently to all periods presented in
these financial statements. 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 the Companies Act, 2013.

1.2 Application of Indian Accounting Standards (Ind-AS)

All companies (listed or unlisted) having net worth of Rs 5,000 Million or more are required to adopt
Ind AS

All amounts included in the financial statements are reported in of Indian rupees (Rupees in) except
number of equity shares and per share data, unless otherwise stated.

1.3 Use of estimates and judgment

The preparation of financial statements requires judgements, estimates and assumptions to be
made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on
the date of financial statements and the reported amount of revenues and expenses during the
reporting period. Difference between the actual results and estimates are recognised in the period
in which the results are known/materialised

1.4 Functional and presentation currency

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

1.5 Revenue Recognition

Revenue from sale of goods is recognised when the significant risks and rewards of ownership have
been transferred to the buyer, recovery of the consideration is probable, the associated cost can be
estimated reliably, there is no continuing effective control or managerial involvement with the goods,
and the amount of revenue can be measured reliably.

Revenue from rendering of services is recognised when the performance of agreed contractual task
has been completed.

Revenue from sale of goods is measured at the fair value of the consideration received or
receivable, taking into account contractually defined terms of payment and excluding taxes or duties
collected on behalf of government

1.6 Property, Plant and Equipment's

All Property, Plant and Equipment's (PPE) are stated at carrying value in accordance with previous
GAAP, which is used as deemed cost on the date of transition to Ind AS using the exemption
granted under Ind AS 101.

The cost of an item of property, plant and equipment 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:

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

ii) 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.

iii) 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.

1.7 Intangible Assets

All Intangible Assets are stated at carrying value in accordance with previous GAAP, which is used
as deemed cost on the date of transition to Ind AS using the exemption granted under Ind AS 101.
Identifiable intangible assets are recognized when the company controls the asset; it is probable that
future economic benefits expected with the respective assets will flow to the company for more than
one economic period; and the cost of the asset can be measured reliably. At initial recognition,
intangible assets are recognized at cost. Intangible assets are amortized on straight line basis over
estimated useful lives from the date on which they are available for use. Software's are amortized
over its useful life subject to a maximum period of 5 years or over the license period as applicable.

1.8 Non-Current Assets Held for Sale

The company classifies a non-current asset (or disposal group of assets) as held for sale if its
carrying amount will be recovered principally through a sale transaction rather than through
continuing use. The non-current asset (or disposal group) classified as held for sale is measured at
the lower of its carrying amount and the fair value less costs to sell.

1.9 Depreciation

Depreciation is provided on straight line method as per the useful lives approved by the Board of
Directors, which are equal to those provided under schedule II of the Companies Act, 2013. The
useful life of an asset is 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 asset and if the useful life of that part is different
from remaining part of the asset; such significant part is depreciated separately. Depreciation on all
such items have been provided from the date they are 'Available for Use' till the date of sale /
disposal and includes amortization of intangible assets and lease hold assets. Freehold land is not

depreciated. 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 items of small value like calculators, wall clock, kitchen utensils etc. whose useful life is very
limited are directly charged to revenue in the year of purchase. Cost of mobile handsets is also
charged against revenue. The residual value of all the assets is taken as Re 1/-. The useful lives of
the assets are taken as under:-

1.10 Borrowing Costs

The Company capitalises borrowing costs that are directly attributable to the acquisition, construction
or production of qualifying asset as a part of the cost of the asset.

The Company recognises other borrowing costs as an expense in the period in which it incurs them.
A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its
intended use or sale.

1.11 Inventory

Inventories are stated at the lower of cost and net realisable value. Net realisable value represents
the estimated selling price for inventories less all estimated costs of completion and costs necessary
to make the sale. The method of determination of cost and valuation is as under:

Cost of Inventories comprises - of Cost of Purchase, cost of conversion and other costs incurred in
bringing them to their present location and condition.

Raw Materials and Work-in-Progress are valued at cost using the Weighted Average cost method.
Goods- produced and purchased are valued at Cost or Net Realizable value whichever is lower.

Excise duty in respect of finished goods awaiting dispatch is included in the valuation of inventory.

Stores and Spares, Packing material are carried at cost, ascertained on weighted average basis.
Necessary provision is made in the case of obsolete and non-moving items.