B. Material accounting policies

i. Statement of compliance

The Company’s financial statements have been prepared in accordance with the provisions of the Companies Act, 2013
and the Indian Accounting Standards (“Ind AS”) notified under the Companies (Indian Accounting Standards) Rules,
2015 and amendments thereto issued by Ministry of Corporate Affairs under section 133 of the Companies Act, 2013. In
addition, the guidance notes/announcements issued by the Institute of Chartered Accountants of India (ICAI) are also
applied except where compliance with other statutory promulgations requires a different treatment.

ii. Basis of Preparation

The financial statements have been prepared on accrual basis and under the historical cost convention except for certain
financial instruments which are measured at fair value at the end of each reporting period, as explained in the accounting
policies mentioned below.

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and
other criteria set out in Schedule III to the Companies Act, 2013. The Company has ascertained its operating cycle as 12
months for the purpose of current and non-current classification of assets and liabilities.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash
equivalents. The company has identified twelve months as its operating cycle.

Functional and presentation currency

These separate financial statements are presented in Indian rupees, which is the Company’s functional currency. All
amounts have been rounded to the nearest Rupees in lacs upto two places of decimal unless otherwise indicated.

iii. Use of Estimates, Judgments and Assumptions

The preparation of financial statements in accordance with Ind AS requires management to make judgments, estimates
and assumptions that affect the application of accounting policies and the reported amount of assets, liabilities, income and
expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any
future periods affected.

All the assets and liabilities have been classified as current or non-current as per the company’s normal operating cycle of
twelve months and other criteria set out in Schedule III to the Companies Act, 2013.

Significant areas of estimation, uncertainty and critical judgements in applying accounting policies that have significant
effect on amount recognized in the financial statements are:

i. Allowance for bad and doubtful trade receivable.

ii. Recognition and measurement of provision and contingencies.

iii. Depreciation/Amortisation and useful lives of Property, plant and equipment / Intangible Assets.

iv. Recognition of deferred tax asset and liability

v. Income Taxes.

vi. Measurement of defined benefit obligation.

vii. Impairment ofNon-financial assets and financial assets.

viii. Fair value of financial instruments

iv. Revenue
Recognition

The company recognised revenue i.e. account for a contract with a customer only when all of the following criteria are met:

(a) the parties to the contract have approved the contract (in writing, orally or in accordance with other customary
business practices) and are committed to perform their respective obligations;

(b) the entity can identify each party’s rights regarding the goods or services to be transferred;

(c) the entity can identify the payment terms for the goods or services to be transferred;

(d) the contract has commercial substance (i.e. the risk, timing or amount of the entity’s future cash flows is expected to
change as a result of the contract); and

(e) it is probable that the entity will collect the consideration to which it will be entitled in exchange for the goods or
services that will be transferred to the customer. In evaluating whether collectability of an amount of consideration is
probable, an entity shall consider only the customer’s ability and intention to pay that amount of consideration when
it is due. The amount of consideration to which the entity will be entitled may be less than the price stated in the
contract if the consideration is variable because the entity may offer the customer a price concession.

Measurement

When (or as) a performance obligation is satisfied, company recognize as revenue the amount of the transaction price
(which excludes estimates of variable consideration that are constrained) that is allocated to that performance obligation.

The transaction price is the amount that the entity expects to be entitled to in exchange for transferring promised goods or
services to a customer, excluding amounts collected on behalf of third parties (for example, some taxes on sales). The
consideration promised may include fixed amounts, variable amounts, or both.

Sale of goods

Revenue is recognised upon transfer of control of promised goods to customers in an amount that reflects the consideration
which the Company expects to receive in exchange for those goods. Revenue from the sale of goods is recognised at the
point in time when control is transferred to the customer which is usually on dispatch / delivery of goods, based on
contracts with the customers. Revenue is measured based on the transaction price, which is the consideration, adjusted for
volume discounts, price concessions, incentives, and returns, if any, as specified in the contracts with the customers.
Revenue excludes taxes collected from customers on behalf of the government. Further, the revenue amount is adjusted
for the time value of money if that contract contains a significant financing component.

Revenue from sale of power is recognised when delivered and measured based on contractual arrangements after giving
allowances for wheeling and transmission loss.

Interest and Dividend

Interest income is recognized on accrual basis using the effective interest method. Dividend income is recognised in profit
or loss on the date on which the company’s right to receive payment is established.

v. Inventories

Inventories are valued at lower of cost and net realisable value, except scrap is valued at net realisable value. Cost of
inventory is arrived at by using FIFO Method. Cost of inventory generally comprises of cost of purchase, cost of
conversion and other cost incurred in bringing the inventory to their present location and condition.

vi. Property, Plant and Equipment Recognition and measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated
impairment losses (if any). Freehold land is measured at costs.

The cost of an item of property, plant and equipment comprises its purchase price, including import duties and non¬
refundable purchase taxes, after deducting trade discounts and rebates, acquisition or construction cost including
borrowing costs, any costs directly attributable to bringing the asset to the location and condition necessary for it to be
capable of operating in the manner intended by management and the initial estimate of the costs of dismantling and
removing the item and restoring the site on which it is located.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as
separate items (major components) of property, plant and equipment.

Buildings constructed on leasehold land are depreciated based on the useful life specified in schedule II to the Companies
Act, 2013, where the lease period of land is beyond the life of the building (or rights to continue exist). In other cases,
buildings constructed on leasehold lands are amortized over the primary lease period of the lands. Gains and losses on
disposal are determined by comparing proceeds with carrying amounts. These are included in the statement of Profit and
Loss.

Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the
expenditure will flow to the company and costs of item can be measured reliably.

Capital work in progress

Assets under erection/installation are shown as "Capital work in progress", Expenditure during construction period are
shown as "pre-operative expenses" to be capitalized on erection/installations of the assets.

vi. Depreciation

Depreciation on property, plant and equipment is provided on straight line method as per the useful life of the assets in the
manner as specified in Schedule II to the Companies Act, 2013. The estimated useful life of assets and estimated residual
value is taken as prescribed under Schedule II to the Companies Act, 2013.

Depreciation on additions during the year is provided on pro rata basis with reference to date of addition/installation.
Depreciation on assets disposed /discarded is charged up to the date on which such asset is sold.

The estimated useful lives, residual value and depreciation method are reviewed at the end of each balance sheet date, any
changes therein are considered as changes in estimate and accordingly accounted for prospectively.

vii. Intangible Assets

Identifiable intangible assets are recognised when it is probable that future economic benefits attributed to the asset will
flow to the Company and the cost of the asset can be reliably measured. Gains or losses arising from derecognition of an
intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and
are recognised in the statement of profit and loss when the asset is derecognized.

Recognition and measurement

Intangible assets are held at cost less accumulated amortization and impairment losses. Intangible assets developed or
acquired with finite useful life are amortized on straight line basis over the useful life of asset. Computer softwares have
finite useful lives and are measured at cost less accumulated amortization and any accumulated impairment losses.

Subsequent expenditure

Subsequent expenditure is capitalized only when it is probable that future economic benefits attributable to asset will flow
to the company costs of which can be measured reliably or when the development stage is achieved. All other expenditure,
including expenditure on internally generated goodwill and brands, when incurred is recognised in statement of profit or
loss.

Amortisation

Amortisation is calculated to write off the cost of intangible assets less their estimated residual values using the straight¬
line method over their estimated useful lives and is generally recognised in statement of profit or loss. Computer software
are amortised over their estimated useful life of 3 years.

Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted, if required.

viii. Employee benefits

Short term employee benefits

The undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered by
employees is recognized during the period when the employees renders the services. These benefits include compensated
absence also.

Defined benefit plans

The company pays gratuity to the employees who have completed 5 Years of service with company at the time when the
employee leaves the company as per the payment of gratuity act 1972.

The cost of providing benefits under the defined benefit plan is determined using the actuarial valuation on projected unit
credit method made at the end of each financial year.

Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in
net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on
the net defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit to
retained earnings through OCI in the period in which they occur. Re-measurements of the net defined benefit liability
(asset) recognised in other comprehensive income shall not be reclassified to profit or loss in a subsequent period.

The Company recognises the following changes in the net defined benefit obligation as an expense in the statement of
profit and loss:

• Service costs comprising current service costs, past-service costs; and

• Net interest expense or income
Other employee benefits

Compensated absences which are not expected to occur within twelve months after the end of the period in which the
employee renders the related services are recognized as a liability at the present value of obligation as at the Balance sheet
date determined based on an actuarial valuation.

Defined Contribution Plan

The company’s payments to the defined contribution plans are recognized as expenses during the period in which the
employees perform the services that payment covers. Defined contribution plan comprise of contribution to the
employees’ provident fund with government, Employees’ State Insurance and Pension Scheme.

ix. Income Tax

Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to
a business combination, or items recognised directly in equity or in OCI.

Current tax

Current income-tax expense or credit is measured at the amount expected to be paid to the taxation authorities in
accordance with the Income-tax Act, 1961. The tax rates and tax laws used to compute the amount are those that are
enacted or substantively enacted, at the reporting date. Current tax also includes any tax arising from dividends.

Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in OCI or in
equity). Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

Current tax assets and liabilities are offset only if, the Company:

a) has a legally enforceable right to set off the recognised amounts; and

b) intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Deferred tax

Deferred tax is recognised 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
recognised for all taxable temporary differences. Deferred tax assets are generally recognised 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 utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises
from the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting
profit.

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.
Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become
probable that future taxable profits will allow the deferred tax 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 realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end
of the reporting period.

Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the
relevant entity intends to settle its current tax assets and liabilities on a net basis.

Deferred tax assets and liabilities are offset only if:

a) the entity has a legally enforceable right to set off deferred tax assets against deferred tax liabilities; and

b) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on
the same taxable entity.

x. Foreign currency translation

(i) All transactions in foreign currency are recorded at the rates of the exchange prevailing on the dates when the
relevant transactions took place; any gain/ loss on account of the fluctuations in the rate of exchange is recognized in
the statement of Profit and Loss.

(ii) Monetary items in the form of loans, current assets and current liabilities in foreign currencies at the close of the year
are converted in the Indian currency at the appropriate rate of exchange prevailing on the dates of the Balance Sheet.
Resultant gain or loss on account of fluctuation in the rate of exchange is recognized in the statement of Profit and
Loss.

(iii) Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated in to
functional currency at the exchange rate when the fair value was determined. Non-monetary items that are measured
in terms of historical cost in a foreign currency are not translated.

(iv) In respect of the Forward Exchange Contracts entered into to hedge foreign currency risks, the difference between
the Forward Rate and Exchange Rate at the inception of the contract is recognized as income or expense.

xi. Borrowing cost

Borrowing costs directly attributable to the acquisition, construction or production of qualifying asset that necessarily
takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All
other borrowing costs are expensed in the period in which they occur.

Borrowing costs consist of interest and amortization of ancillary costs incurred in connection with the arrangement of
borrowed funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the
borrowing costs.

xii. Cash and Cash Equivalent

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts 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, to be cash equivalents. Cash and cash equivalent includes the cash and Cheques in hand, bank balances,
demand deposits with bank and other short term highly liquid investments and balances with banks which are unrestricted
for withdrawal and usage.

Bank overdraft are shown within borrowings in current liabilities in the balance sheet and forms part of financing activities
in the cash flow statement. Book overdraft is shown within other financial liabilities in the balance sheet and forms part of
operating activities in the cash flow statement.

xiii. Cash Flow Statement

Cash flows are reported using the indirect method, where by profit before tax is adjusted for the effects of transactions of a
non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or
expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing
activities of the Company are segregated.

xiv. Earning Per Share

Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company by
the weighted average number of equity shares outstanding during the period.

Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company
by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the
weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity
shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually
issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are
deemed converted as of the beginning of the period, unless issued at a later date. Potential ordinary shares shall be treated
as dilutive when, and only when, their conversion to ordinary shares would decrease earnings per share or increase loss per
share from continuing operations.

Dilutive potential equity shares are determined independently for each period presented.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for
any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by
the Board of Directors.

xv. Segment Accounting Policies

(i) The company has disclosed business segment as the primary segment. Based on the criteria mentioned in Ind AS 108

“Operating Segment” the company has identified its reportable segments.

The Chief Operating Decision Maker (CODM) evaluates the company’s performance and allocates resources based on an
analysis of various performance indicators by operating segments. The CODM reviews revenue and gross profit as
performance indicator for all of the operating segments. The various segment identified by the company comprised as
under: -

Name of Segment Comprised of

Manufacturing - Manufacturing of Irrigation and Plastic Products

Wind Power Unit - Wind Turbine Power Unit

Trading - Merchant Trading of Various Products

(ii) Segment revenue, segment results, segment assets and segment liabilities include respective amounts directly identified
with the segment and also an allocation on reasonable basis of amounts not directly identified. The expenses which are not
directly relatable to the business segment are shown as unallocated corporate cost. Assets and liabilities that cannot be
allocated between the segments are shown as un-allocable corporate assets and liabilities respectively.