Note 3. Summary of material accounting policies:

The material accounting policies adopted in the preparation of these financial statements are listed below.
These policies have been consistently applied to all the years except where newly issued accounting standard
is initially adopted.

(a) Investment property:

Investment property, which is property held to earn rentals and/or for capital appreciation (including
property under construction for such purposes), Investment property is stated at deemed cost/ cost, net of

accumulated depreciation. Cost including transaction costs. Subsequent to initial recognition, investment
properties are measured in accordance with Ind AS 16's requirements for cost model.

The Company depreciates building component of investment property on the straight-line method as per
the useful life prescribed in Schedule II to the Companies Act, 2013

An investment property is derecognised upon disposal or when the investment property is permanently
withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss
arising on derecognition of the property (calculated as the difference between the net disposal proceeds
and the carrying amount of the asset) is included in profit or loss in the period in which the property is
derecognised

(b) Property, Plant and Equipment:

Property, plant and equipment are stated at deemed cost/ cost, net of accumulated depreciation and
accumulated impairment losses, if any. The cost comprises purchase price, including duties and taxes
(other than those refundable), borrowing costs if capitalization criteria are met and directly attributable
cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are
deducted in arriving at the purchase price.

Each part of an item of property, plant and equipment with a cost that is significant in relation to the
total cost of the item is depreciated separately. This applies mainly to components for machinery. When
significant parts of plant and equipment are required to be replaced at intervals, the company depreciates
them separately based on their specific useful lives. Likewise, when a major inspection is performed, its
cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition
criteria are satisfied. All other repair and maintenance costs are recognized in profit or loss as incurred.

Subsequent expenditure relating to property, plant and equipment is capitalised only when it is probable
that future economic benefits associated with these will flow to the Company and the cost of the item can
be measured reliably. All other expenses on existing property, plant and equipment, including day-to-day
repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and
loss for the period during which such expenses are incurred.

Borrowing costs directly attributable to acquisition of property, plant and equipment which take substantial
period of time to get ready for its intended use are also included to the extent they relate to the period till
such assets are ready to be put to use.

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet
date is classified as capital advances under other non-current assets.

An item of property, plant and equipment and any significant part initially recognized is de-recognized
upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or
loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds
and the carrying amount of the asset) is included in the income statement when the Property, plant and
equipment is de-recognized.

Costs of assets not ready for use at the balance sheet date are disclosed under capital work- in- progress.

An assets' carrying amount is written down immediately to its recoverable amount if the asset's carrying
amount is greater that it's estimated recoverable amount.

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated
residual value at 5% of Cost.

Depreciation on tangible fixed assets has been provided on the straight-line method as per the useful life
prescribed in Schedule II to the Companies Act, 2013 expects for Tools & Moulds - based on experience,
the useful life of Tools and Moulds considered to be 15 years.

(c) Intangible Assets:

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition,
intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if
any.

Intangible assets comprising of Technical Knowhow and computer software are amortized on a straight-line
method over a period of four year and ten years respectively, which is estimated by the management to be
the useful life of the asset.

The residual values, useful lives and methods of amortization of intangible assets are reviewed at each
financial year end and adjusted prospectively, if appropriate.

Gains or losses arising from de-recognition of an intangible asset are measured as the difference between
the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit
and loss when asset is derecognized.

(d) Leases:

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the
contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration.

Where the Company is lessee

The Company applies a single recognition and measurement approach for all leases, except for short-term
leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and
right-of-use assets representing the right to use the underlying assets.

The Company at the inception of the lease contract recognizes a Right-of-Use (RoU) asset at cost and
corresponding lease liability, except for leases with term of less than twelve months (short term) and
low-value assets. The cost of the right-of-use assets comprises the amount of the initial measurement of
the lease liability, any lease payments made at or before the inception date of the lease plus any initial
direct costs, less any lease incentives received. Subsequently, the right of-use assets are measured at cost
less any accumulated depreciation and accumulated impairment losses, if any. The right-of-use assets are
depreciated using the straight-line method from the commencement date over the shorter of lease term or
useful life of right-of-use assets.

For lease liabilities at inception, the Company measures the lease liability at the present value of the lease
payments that are not paid at that date. The lease payments are discounted using the interest rate implicit
in the lease, if that rate is readily determined, if that rate is not readily determined, the lease payments are
discounted using the incremental borrowing rate.

The Company recognizes the amount of the re-measurement of lease liability as an adjustment to the right-
of-use assets. Where the carrying amount of the right-of-use assets is reduced to zero and there is a further
reduction in the measurement of the lease liability, the Company recognizes any remaining amount of the
re-measurement in the statement of profit and loss.

The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases
that have a lease term of 12 months or less from the commencement date and do not contain a purchase
option). It also applies the lease of low-value assets recognition exemption to leases that are considered to
be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense
on a straight-line basis over the lease term.

Where the Company is lessor

Leases in which the Company does not transfer substantially all the risks and rewards incidental to
ownership of an asset is classified as operating leases. Rental income arising is accounted for on a straight¬
line basis over the lease terms. Initial direct costs incurred in negotiating and arranging an operating lease
are added to the carrying amount of the leased asset and recognised over the lease term on the same basis
as rental income. Contingent rents are recognised as revenue in the period in which they are earned.

Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer
from the Company to the lessee. Amounts due from lessees under finance leases are recorded as receivables
at the Company's net investment in the leases. Finance lease income is allocated to accounting periods so
as to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.

Lease-hold land:

Leasehold land that normally has a finite economic life and title which is not expected to pass to the lessee
by the end of the lease term is treated as an operating lease.

The payment made on entering into or acquiring a leasehold land is accounted for as leasehold land use
rights (referred to as prepaid lease payments in Ind AS 17 "Leases") and is amortized over the lease term in
accordance with the pattern of benefits provided.

(e) Impairment of assets:

A. Financial assets

The Company assesses at each date of balance sheet whether a financial asset is impaired and
measures the required expected credit losses through a loss allowance. The Company recognizes
lifetime expected losses for all contract assets and / or all trade receivables that do not constitute a
financing transaction. For all other financial assets, expected credit losses are measured at an amount
equal to the 12-month expected credit losses or at an amount equal to the lifetime expected credit
losses if the credit risk on the financial asset has increased significantly since initial recognition.

B. Non-financial assets

The Company assesses at each reporting date whether there is an indication that an asset may be
impaired. If any indication exists, or when annual impairment testing for an asset such transactions can
be identified, an appropriate valuation model is used is required, the Company estimates the asset's
recoverable amount. An asset's recoverable amount is the higher of an asset's or cash-generating
unit's (CGU) net selling price and its value in use. The recoverable amount is determined for an
individual asset, unless the asset does not generate cash inflows that are largely independent of those
from other assets or group of assets. Where the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using
a pre-tax discount rate that reflects current market assessments of the time value of money and the
risks specific to the asset. In determining net selling price, recent market transactions are taken into
account, if available. If no such transactions can be identified, an appropriate valuation model is used.

Impairment losses are recognized in the statement of profit and loss. After impairment, depreciation is
provided on the revised carrying amount of the asset over its remaining useful life.

(f) Inventories:

Inventories are carried at the lower of cost (computed on a Weighted Average basis) or net realisable
value. Cost includes the cost of fair value of consideration paid including duties and taxes (other than
those refundable), inward freight, and other expenditure directly attributable to the purchase. In the case of
finished goods and work in progress, cost includes an appropriate share of production overheads based on
normal operating capacity. Trade discounts and rebates are deducted in determining the cost of purchase.

The cost of inventories is based on the weighted average

Stocks of stores, spares and tools, components and stock in trade are valued at cost and not written down
below cost to net reailsable value since the finished products and the services in which they are to be
incorporated are expected to be sold / billed at or above cost.