MATERIAL ACCOUNTING POLICIES

The Company has applied following accounting policies to all periods presented in the Ind AS Financial Statement.

1.4 PROPERTY, PLANT AND EQUIPMENT:

i) Property, Plant and Equipment are stated at original cost (net of tax/duty credit availed) less accumulated depreciation and
impairment losses. Cost includes cost of acquisition, construction and installation, taxes, duties, freight, other incidental
expenses related to the acquisition, and pre-operative expenses including attributable borrowing costs incurred during
pre-operational period.

ii) 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 as a separate asset is derecognized when replaced. All other
repairs and maintenance are charged to profit and loss during the reporting period in which they are incurred.

iii) Assets which are not ready for their intended use on reporting date are carried as capital work-in-progress at cost, comprising
direct cost and related incidental expenses.

iv) Property, Plant and Equipment are depreciated and/or amortized on as per the Straight line method on the basis of their
useful lives as notified in Schedule II to the Companies Act, 2013 . The assets' residual values and useful lives are reviewed,
and adjusted if appropriate, at the end of each reporting period.

v) Depreciation in respect of additions to assets has been charged on pro rata basis with reference to the period when the
assets are ready for use.

vi) An asset's carrying amount is written down immediately on discontinuation to its recoverable amount if the asset's carrying
amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing
proceeds with carrying amount. These are included in Profit/ Loss on Sale and Discard of Fixed Assets.

vii) Useful lives of the Property, Plant and Equipment as notified in Schedule II to the Companies Act, 2013 are as follows :

Buildings - 30 to 60 years

Plant and Equipments - 15 to 25 years

Furniture and Fixtures - 10 years

Vehicles - 8 to 10 years

Office Equipments - 5 years

Computers - 3 years

viii) At each balance sheet date, the Company reviews the carrying amount of property, plant and equipment to determine
whether there is any indication of impairment loss. If any such indication exists, the recoverable amount of the assets is
estimated in order to determine the extent of impairment loss. The recoverable amount is higher of the net selling price and
the value in use, determined by discounting the estimated future cash flows expected from the continuing use of the asset
to their present value.

ix) Cost is reduced by accumulated depreciation and impairment and amount representing assets discarded or held for disposal.

1.5 INTANGIBLE ASSETS:

i) Intangible assets acquired by payment e.g. Computer Software are disclosed at cost less amortization on a straight-line basis
over its estimated useful life.

ii) Intangible assets are carried at cost, net of accumulated amortization and impairment loss, if any.

iii) Intangible assets are amortized on straight-line method as follows :

Computer Software - 5 years

iv) At each balance sheet date, the Company reviews the carrying amount of intangible assets to determine whether there
is any indication of impairment loss. If any such indication exists, the recoverable amount of the assets is estimated
in order to determine the extent of impairment loss. The recoverable amount is higher of the net selling price and the
value in use, determined by discounting the estimated future cash flows expected from the continuing use of the asset to
their present value.

1.6 Revenue Recognition

i) Revenue comprises of all economic benefits that arise in the ordinary course of activities of the Company which result in
increase in Equity, other than increases relating to contributions from equity participants. Revenue is recognized to the
extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.
Revenue is measured at the fair value of the consideration received or receivable.

The Revenue from contracts with customers is recognised when control of the goods or services are transferred to the
customer at an amount that reflects the consideration entitled in exchange for those goods or services. Generally, control is
transferred upon shipment of goods to the customer or when the goods is made available to the customer, provided transfer
of title to the customer occurs and the Company has not retained any significant risks of ownership or future obligations with
respect to the goods shipped.

Revenue is adjusted for variable consideration such as discounts, rebates, refunds, credits, price concessions, incentives, or
other similar items in a contract when they are highly probable to be provided.

The Company recognizes revenue generally at a point in time when the products are delivered to customer or when it is
delivered to a carrier for export sale, which is when the control over product is transferred to the customer

In revenue arrangements with multiple performance obligations, the Company accounts for individual products and services
separately if they are distinct - i.e. if a product or service is separately identifiable from other items in the arrangement and
if a customer can benefit from it. The consideration is allocated between separate products and services in the arrangement
based on their stand-alone selling prices. Revenue from sale of by products are included in revenue.

ii) Services: Revenue from Services are recognized as and when the services are rendered.

iii) Interest: Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest
rate applicable.

iv) Export Benefits are accounted on accrual basis.

1.7 EMPLOYEE BENEFITS:

i) Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss
of the year in which the related service is rendered.

ii) Post Employment and Retirement benefits in the form of Gratuity are considered as defined benefit obligations and is
provided for on the basis of third-party actuarial valuation, using the projected unit credit method, as at the date of the
Balance Sheet. Every Employee who has completed five years or more of service is entitled to Gratuity on terms not less
favorable than the provisions of The Payment of Gratuity Act, 1972.

iii) The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by
reference to market yields at the end of reporting period on government bonds that have terms approximating to the terms
of the related obligation.

iv) Employee benefits in the form of Provident Fund is considered as defined contribution plan and the contributions to
Employees' Provident Fund Organization established under The Employees' Provident Fund and Miscellaneous Provisions
Act 1952 is charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due.
The Company pays provident fund contributions to publicly administered provident funds as per local regulations. The
Company has no further payment obligations once the contributions have been paid.

1.8 Valuation of Inventories

i) The cost of inventories has been computed to include all cost of purchases, cost of conversion and other related costs
incurred in bringing the inventories to their present location and condition. The costs of Raw Materials, Stores and spare
parts etc., consumed consist of purchase price including duties and taxes (other than those subsequently recoverable by the
enterprise from the taxing authorities), freight inwards and other expenditure directly attributable to the procurement.

ii) Stock of Raw Materials are valued at cost and of those in transit and at port related to these items are valued at cost to date.
Goods and materials in transit are valued at actual cost incurred up to the date of balance sheet. Material and supplies held
for use in the production of inventories are not written down if the finished products in which they will be used are expected
to be sold at or above cost.

iii) Stock of Stores and spare parts, Packing Material, Power & Fuel and Folders are valued at cost; and of those in transits and at
port related to these items are valued at cost.

iv) Goods-in-process is valued at lower of cost or net realizable value.

v) Stock of Finished goods and By-products is valued at lower of cost or net realizable value.

vi) Stock-in-trade is valued at lower of cost or net realizable value.

1.9 Cash flow statement

Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash

nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating,

financing and investing activities of the Company is segregated.

Cash and cash equivalents in the balance sheet comprise cash at bank,

cash/Cheques in hand and short-term investments with an original maturity of three months or less.

1.10 FINANCIAL ASSETS:

i) The Company classifies its financial assets as those to be measured subsequently at fair value (either through other
comprehensive income, or through profit or loss), and those to be measured at amortized cost.

ii) Trade receivables represent receivables for goods sold by the Company up to the end of the financial year. The amounts
are generally unsecured and are usually received as per the terms of payment agreed with the customers. The amounts are
presented as current assets where receivable is due within12 months from the reporting date.

iii) Trade receivables are impaired using the lifetime expected credit loss model under simplified approach. The Company uses
a matrix to determine the impairment loss allowance based on its historically observed default rates over expected life of
trade receivables and is adjusted for forward looking estimates. At every reporting date, the impairment loss allowance
is determined and updated and the same is deducted from Trade Receivables with corresponding charge/credit to
Profit and Loss.

iv) A financial asset is derecognized only when the Company has transferred the rights to receive cash flows from the
financial asset, or when it has transferred substantially all the risks and rewards of the asset, or when it has transferred the
control of the asset.

1.11 FINANCIAL LIABILITIES:

i) Borrowings are removed from balance sheet when the obligation specified in the contract is discharged, cancelled or expired.

ii) Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the
liability for at least 12 months after the reporting period.

iii) Trade Payables represent liabilities for goods and services provided to the Company up to the end of the financial year.
The amounts are unsecured and are usually paid as per the terms of payment agreed with the vendors. The amounts are
presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognized
initially and subsequently measured at amortized cost.

iv) Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently
enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets
and settle the liabilities simultaneously.

1.12 FAIR VALUE MEASUREMENT:

i) Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value measurement is based on the presumption that the transaction
to sell the asset or transfer the liability takes place either in the principal market for the asset or liability, or in the absence of
a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market
must be accessible by the Company.

ii) The fair value of an asset or liability is measured using the assumptions that market participants would use when pricing the
asset or liability, assuming that market participants act in their economic best interest.

iii) A fair value measurement of a non- financial asset takes into account a market participant's ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset
in its highest and best use.

iv) The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available
to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

v) The assets and liabilities which has been measured at fair value is Derivatives

1.13 FOREIGN CURRENCY TRANSACTIONS:

i) Foreign currency transactions are recorded on initial recognition in the functional currency, using the exchange rate at
the date of the transaction. At each balance sheet date, foreign currency monetary items are reported using the closing
exchange rate. Exchange differences that arise on settlement of monetary items or on reporting at each balance sheet date
of the Company's monetary items at the closing rate are recognized as income or expenses in the period in which they arise.

ii) Non-monetary items which are carried at historical cost denominated in foreign currency are reported using the exchange
rate at the date of the transaction. Non-monetary items measured at fair value in a foreign currency are translated using the
exchange rate at the date when the fair value is determined.

1.14 BORROWING COSTS:

i) Borrowing costs are interest and other costs (including exchange differences relating to foreign currency borrowings to the
extent that they are regarded as an adjustment to interest costs) incurred in connection with the borrowing of funds.

ii) General and specific borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are
capitalized as part of the cost of such assets during the period of time that is required to complete and prepare the asset for
its intended use. A qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use.

iii) All other borrowing costs are expensed in the period in which they are incurred.

1.15 ACCOUNTING FOR TAXES ON INCOME:

i) Tax expenses comprise of current tax and deferred tax including applicable surcharge and cess.

ii) Current Income tax is computed using the tax effect accounting method, where taxes are accrued in the same period
in which the related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability
computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due
to disallowances or other matters is probable.

iii) Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred
tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized for all deductible
temporary differences; the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized
to the extent that it is probable that taxable profits against which the deductible temporary differences, and the carry
forward unused tax credits and unused tax losses can be utilized.

iv) The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax assets to be utilized.
Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it is become
probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are
measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on
the tax rates and tax laws that have been enacted or substantively enacted at the reporting date.

v) Deferred tax is recognized in the statement of profit and loss, except to the extent that it relates to items recognized in other
comprehensive income. As such, deferred tax is also recognized in other comprehensive income.

vi) Deferred Tax Assets and Deferred Tax Liabilities are offset, if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the Deferred Tax Assets and Deferred Tax Liabilities relate to taxes on income levied by
same governing taxation laws.