II. Significant Accounting Policies

Basis of Preparation of Financial Statements

"The financial statement are prepared and presented under the historical cost convention and evaluated on a going-concern
basis using the accrual system of accounting in accordance with the accounting principles generally accepted in India (lndian
GAAP) and the requirements of the notified sections, schedules and rules of the Companies Act 2013 including the Accounting
Standards as prescribed by the Companies (Accounting Standards) Rules,2006 as per section 211 (3C) of the Companies Act, 1956
(which are deemed to be applicable as Section 133 of the Companies Act, 2013 ("tire Act") read with Rule 7 of Companies
(Accounts) Rules,2014)."

The presentation of financial statements requires estimates and assumption to be made that affect the reported amount of
assets and Liabilities on the date of financial statements and the reported amount of revenue and expenses during the
reporting period. Difference between the actual result and estimates are recognized in the period in which results are
known/materialized.

Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments,
estimates and assumptions that affect the reported amounts 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.
Accounting estimates and assumptions that have a significant effect on the amounts reported in the financial statements
include:

i) Net Realisable value of items of Inventories

ii) Useful life and Residual value of Property, Plant and Equipment and Intangible Assets

iii) Defined Benefit obligations

iv) Deferred Tax asset or liability

v) Provisions for Trade Receivables

vi) Other Provisions and Contingencies

Property, Plant & Equipment

Property, Plant & Equipment including intangible assets are stated at their original cost of acquisition including taxes, freight
and other incidental expenses related to acquisition and installation of the concerned assets less depreciation till date.

Company has adopted cost model for all class of items of Property Plant and Equipment.

Immovable property being Land is revalued by independent professional valuers on a triennial basis and whenever their carrying
amounts are likely to differ materially from their revalued amounts. When an asset is revalued, any accumulated depreciation
at the date of revaluation is eliminated against the gross carrying amount of the asset. The net amount is then restated to the
revalued amount of the asset.

Increases in carrying amounts arising from revaluation, including currency translation differences, are recognised in the asset
Value, unless they offset previous decreases in the carrying amounts of the same asset, in which case, they are recognised in
profit or loss. Decreases in carrying amounts that offset previous increases of the same asset are recognized against the asset
revaluation reserve. All other decreases in carrying amounts are recognised as a loss in the statement of Profit & Loss. As the

revaluation of land has been undertaken there arises no need to provide Depreciation and hence the value of asset has been
shown at historical cost plus revaluation value.

Depreciation

Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. All fixed
assets individually costing Rs. 5000/- or less are fully depreciated in the year of installation/purchase. Depreciation on assets
acquired/sold during the year is recognised on a pro-rata basis to the statement of profit and loss till the date of acquisition/sale.

Impairment of Assets

The carrying amounts of property, plant & equipment are reviewed at each balance sheet date to determine, if there is any
indication of impairment based on external/internal factors. An impairment loss is recognized wherever the carrying amount of
the property, plant & equipment exceeds its recoverable amount which represents greater of the "net selling price" and "value
in use" of the respective assets. The impairment loss recognized in prior accounting period is reversed if there has been an
improvement in recoverable amount.

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.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual
investment basis. 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.

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 cost including manufacturing overheads incurred in
bringing them to their respective present location and condition, Cost of raw materials, process chemicals, stores and spare,
packing materials, trading and other products are determined on weighted average basis By- Products are valued at net
realizable value. The closing stock as on the balance sheet date is as certified by the directors of the company.

Trade Receivables and Loans and Advances

Trade Receivables and Loans and Advances are presented after making adequate provision for any shortfall in their recovery.
The provision and any subsequent recovery is recognised in the Profit and Loss statement. Bad debts are written off when they
are identified.

Cash and cash equivalents

All highly liquid financial instruments, which are readily convertible into known amount of cash that are subject to an
insignificant risk of change in value and having original maturities of three months or less from the date of purchase are
considered to be cash equivalents.