3. Significant Accounting Policies

3.1. Presentation and disclosure of standalone financial statement

All assets and liabilities have been classified as current and non-current as per Company's normal operating cycle and other
criteria set out in the division II of Schedule III of the Companies Act, 2013 for a company whose financial statements are made
in compliance with the Companies (India Accounting Standards) Rules, 2015.

Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash
equivalents, 12 months has been considered by the Company for the purpose of current / non-current classification of assets
and liabilities.

3.2. Property, Plant and Equipment and Depreciation
Recognition and measurement

Properties plant and equipment are stated at their cost of acquisition. Cost of an item of property, plant and equipment includes
purchase price including non-refundable taxes and duties, borrowing cost directly attributable to the qualifying asset, any costs
directly attributable to bringing the asset to the location and condition necessary for its intended use and the present value of
the expected cost for the dismantling/decommissioning of the asset.

Parts (major components) of an item of property, plant and equipment having different useful lives are accounted as separate
items of property, plant and equipment.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the Company. All other repair and maintenance
costs are recognised in statement of profit and loss as incurred.

Capital work-in-progress comprises of cost incurred on property, plant and equipment under construction / acquisition that are
not yet ready for their intended use at the Balance Sheet Date.

Depreciation and useful lives

Depreciation on the property, plant and equipment (other than freehold land and capital work in progress) is provided on writ¬
ten own value (WDV) over their useful lives which is in consonance of useful life mentioned in Schedule II to the Companies
Act, 2013.

Building on leasehold lands and improvements to building on leasehold land / premises are amortized over the period of lease
or useful life whichever is lower.

Depreciation methods, useful lives and residual values are reviewed at each financial year end and adjusted prospectively.
De-recognition

An item of property, plant and equipment and any significant part initially recognised is de-recognised 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 (calcu¬
lated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of
profit and loss when the asset is de-recognised.

3.3. Intangible assets and amortisation
Recognition and measurement

Intangible assets are recognized only if it is probable that the future economic benefits attributable to asset will flow to the
Company and the cost of asset can be measured reliably. Intangible assets are stated at cost of acquisition/development less
accumulated amortization and accumulated impairment loss if any.

Cost of an intangible asset includes purchase price including non - refundable taxes and duties, borrowing cost directly attrib¬
utable to the qualifying asset and any directly attributable expenditure on making the asset ready for its intended use.

Intangible assets under development comprises of cost incurred on intangible assets under development that are not yet ready
for their intended use as at the Balance Sheet date.

Amortization and useful lives

Computer softwares are amortized over 3-5 years on written down value basis. Intangible Rights are amortized over the period
of right to use. Amortization methods and useful lives are reviewed at each financial year end and adjusted prospectively.

In case of assets purchased during the year, amortization on such assets is calculated on pro-rata basis from the date of such
addition

3.4. Inventories

Inventories consisting of stock-in-trade are valued at cost or net realisable value, whichever is lower. Cost of inventories also
include all other costs incurred in bringing the inventories to their present location and condition.

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and
selling expenses.

The factors that the Company considers in determining the allowance for slow moving, obsolete and other non-saleable in¬
ventory includes estimated shelf life, planned product discontinuances, price changes, ageing of inventory and introduction
of competitive new products, to the extent each of these factors impact the Company's business and markets. The Company
considers all these factors and adjusts the inventory provision to reflect its actual experience on a periodic basis.

3.5. Revenue recognition
Sale of goods

Revenue from sale of goods 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 measured at the amount of consideration which the Company expects to be entitled to in exchange for transferring
distinct goods or services to a customer as specified in the contract, net of returns and allowances, trade discounts and volume
rebates and excluding amounts collected on behalf of third parties (for example taxes and duties collected on behalf of the gov¬
ernment). Consideration is generally due upon satisfaction of performance obligations and the receivable is recognized when it
becomes unconditional.

Revenue from sale of goods in the course of ordinary activities is measured at the fair value of the consideration received or
receivable and are also netted off for probable saleable and non-saleable return of goods from the customers, estimated on the
basis of historical data of such returns.

Income from Services

Revenue from rendering of services is recognised over time where the Company satisfies the performance obligation over time
or point in time where the Company satisfies the performance obligation at a point in time.

Advance from customers

Advance from Customers: when a customer pays consideration before the Company transfers goods or services to the customer,
a contract liability is recognised and disclosed as advances from customers.

Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest
rate. Interest income is included under the head "other income" in the statement of profit and loss.

Export Incentive

Export benefits available under prevalent schemes are accrued in the year in which the goods are exported, and no significant
uncertainty exist regarding its ultimate collection.

3.6. Foreign currency transaction

Transactions denominated in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction. As
at the Balance Sheet date, foreign currency monetary items are translated at closing exchange rate. Exchange difference arising
on settlement or translation of foreign currency monetary items are recognised as income or expense in the year in which they
arise.

Foreign currency non-monetary items which are carried at historical cost are reported using the exchange rate at the date of
transactions.

3.7. Employee benefits

Short term employee benefits

All employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee
benefits and they are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss in the period in
which the employee renders the related service.

Post-employment benefits& other long term benefits

The company has considered valuation of long term employee benefits as per the certificate received from actuarial valuer. For
gratuity plan, re-measurements comprising of actuarial gains and losses are recognised immediately in the balance sheet with a
corresponding debit or credit to retained earnings through other comprehensive income in the period in which they occur. Such
re-measurements are not reclassified to statement of profit and loss in subsequent periods.

The interest cost on defined benefit obligation is recognised under finance cost.

Actuarial gains or losses arising on account of experience adjustment and the effect of changes in actuarial assumptions for
other employee benefit plan [other than gratuity] are recognized immediately in the Statement of Profit and Loss as income or
expense.

3.8. Borrowing cost

Borrowing costs (net of interest income on temporary investments) that are directly attributable to the acquisition, construction
or production of a qualifying asset are capitalized as part of the cost of the respective asset till such time the asset is ready for its
intended use or sale. A qualifying asset is an asset which necessarily takes a substantial period of time to get ready for its intend¬
ed use or sale. Ancillary cost of borrowings in respect of loans not disbursed are carried forward and accounted as borrowing
cost in the year of disbursement of loan. All other borrowing costs are expensed in the period in which they occur. Borrowing
costs consist of interest expenses calculated as per effective interest method, exchange difference arising from foreign currency
borrowings to the extent they are treated as an adjustment to the borrowing cost and other costs that an entity incurs in connec¬
tion with the borrowing of funds.

3.9. Leases

The Company evaluates each contract or arrangement, whether it qualifies as lease as defined under Ind AS 116.

Where Company is lessee

"The Company enters into an arrangement for lease of office buildings. Such arrangements are generally for a fixed period but
may have extension or termination options. The Company assesses, whether the contract is, or contains, a lease, at its inception.
A contract is, or contains, a lease if the contract conveys the right to -

a) control the use of an identified asset,

b) obtain substantially all the economic benefits from use of the identified asset, and

c) direct the use of the identified asset"

The Company determines the lease term as the non-cancellable period of a lease, together with periods covered by an option to
extend the lease, where the Company is reasonably certain to exercise that option.

The Company at the commencement 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 leases) and low-value assets. For these short term
and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the lease
term.

The cost of the right-of-use asset 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 asset. The estimated useful life of right-of-use assets are determined on the same basis as those of
property, plant and equipment.

The Company applies Ind AS 36 to determine whether an RoU asset is impaired and accounts for any identified impairment loss
as described in the impairment of non-financial assets below.

For lease liabilities at the commencement of the lease, 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 can be readily determined, if that rate is not readily determined, the lease payments are discounted using the incremental
borrowing rate that the Company would have to pay to borrow funds, including the consideration of factors such as the nature
of the asset and location, collateral, market terms and conditions, as applicable in a similar economic environment.

After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the
lease payments made.

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 asset 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 statement of profit and loss.

Lease liability payments are classified as cash used in financing activities in the statement of cash flows.

Where Company is lessor

Leases under which the Company is a lessor, are classified as finance or operating leases. Lease contracts where all the risks
and rewards are substantially transferred to the lessee, the lease contracts are classified as finance leases. All other leases are
classified as operating leases.

3.10. Taxes on income

Tax expenses for the year comprises of current tax, deferred tax charge or credit and adjustments of taxes for earlier years. In
respect of amounts adjusted outside profit or loss (i.e. in other comprehensive income or equity), the corresponding tax effect,
if any, is also adjusted outside profit or loss.

Provision for current tax is made as per the provisions of Income Tax Act, 1961.

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and
their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are recognised for all tax¬
able temporary differences, and deferred tax assets are recognised for all deductible temporary differences, carry forward tax
losses and allowances to the extent that it is probable that future taxable profits will be available against which those deductible
temporary differences, carry forward tax losses and allowances can be utilised.

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 tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
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 taxes relate to the same taxation authority.

Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which
such deferred tax assets can be utilized. In situations where the Company has unused tax losses and unused tax credits, deferred
tax assets are recognised only if it is probable that they can be utilized against future taxable profits. Deferred tax assets are
reviewed for the appropriateness of their respective carrying amounts at each Balance Sheet date.

At each reporting date, the Company re-assesses unrecognised deferred tax assets. It recognises previously unrecognised de¬
ferred tax assets to the extent that it has become probable that future taxable profit allow deferred tax assets to be recovered.

3.11. Cash and cash equivalents

Cash and cash equivalents include cash in hand, bank balances, deposits with banks (other than on lien) and all short term and
highly liquid investments that are readily convertible into known amounts of cash and are subject to an insignificant risk of
changes in value.

For the purpose of cash flow statement, cash and cash equivalent as calculated above also includes outstanding bank overdrafts
as they are considered an integral part of the Company's cash management.

3.12. Cash flow statement

Cash flows are reported using the indirect method, where by net 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 are segre¬
gated.