This note provides a list of the material accounting policies
adopted in the preparation of these Indian Accounting
Standards (Ind-AS) financial statements.These policies have
been consistently applied to all the years except where newly
issued accounting standard is initially adopted.

Note 2.1 Property, plant and equipment:

Freehold land is carried at historical cost. All other items
of Property, plant and equipment are shown at cost, less
accumulated depreciation and impairment, if any.

Expenditure incurred on construction of assets which are not
ready for their intended use are carried at cost less impairment
(if any), under Capital work-in-progress.

Depreciation Method, Estimated Useful Lives and
Residual values:

(i) Freehold land is not depreciated

(ii) Property, plant and equipment

Depreciation methods, estimated useful lives and
residual value

Depreciation is calculated using the straight-line basis
over the useful lives of assets, based on technical
estimates made by the management's expert and useful
lives specified under Schedule II to the Companies Act,
2013. The details of useful life for each catergory of asset
are as under:

(i) Buildings- 25 to 30 years

(ii) Plant and machinery other than customer
installations- 3 to 15 years

(iii) Customer Installation- 3 to 6 years

(iv) Toolings- 3 years

(v) Electrical Installation - 5 to 25 years

(vi) Furniture and Fixtures - 5 to 10 years

(vii) Office equipment - 5 years

(viii) Computer Hardwares - 5 years

(ix) Vehicles - 5 years

The assets' residual values and useful lives methods are
reviewed, and adjusted if appropriate, at the end of each
reporting period.

Pro-rata depreciation is charged on property, plant and
equipment from/ up to the date on which such assets are
ready to put to use/ are deleted or discarded.

Refer Note 2.7 for the other accounting policies relevant
to property, plant and equipment

Note 2.2 Inventories

Raw materials and stores, work in progress, traded and
finished goods are stated at the lower of cost and net realisable
value. Costs are assigned to individual items of inventory on

the basis of weighted average cost basis. Net realisable value
is the estimated selling price in the ordinary course of business
less the estimated costs of completion and the estimated costs
necessary to make the sale.

Refer Note 2.10 for the other accounting policies relevant
to inventories

Note 2.3 Revenue recognition

Revenue is recognized upon transfer of control of promised
products or services to customers either over time or at a
point of time at an amount that reflects the consideration
the Company expects to be entitled to in exchange for those
products or services. Control is defined as the ability to direct
the use of and obtain substantially all of the economic benefits
from an asset.

Revenue is measured based on the transaction price, which is
the expected consideration to be received, to the extent that
it is highly probable that there will not be a significant reversal
of revenue in future periods.

At the inception of the contract, the Company identifies the
goods or services promised in the contract and assesses
which of the promised goods or services shall be identified
as separate performance obligations. Promised goods or
services give rise to separate performance obligations if they
are capable of being distinct.

Revenue from the delivery of products is recognised at the
point in time when control over the products is passed to the
customers, which is determined based on the individual terms
of delivery agreed in the customer contract. Revenue from
providing services is recognised in the accounting period in
which the services are rendered.

Revenue from contracts for total refractory management
services is recognised over time using the output-oriented
method (e.g. quantity of steel produced by the customer).
Revenue from such contracts is recognised on satisfaction
of performance obligation. The Company's performance
obligations are satisfied on delivery of service to the customer.

The Company recognises contract liabilities for consideration
received in respect of unsatisfied performance obligations
and reports these amounts as other liabilities. Similarly, if the
Company satisfies a performance obligation before it receives
the consideration, the Company recognises either a contract
asset or a receivable, depending on whether something other
than the passage of time is required before the consideration
is due.

The Company does not expect to have any contracts where the
period between the transfer of the promised goods or services

to the customer and payment by the customer exceeds one
year. As a consequence, the Company does not adjust any of
the transaction prices for the time value of money.

Note 2.4 Employee benefits

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary
benefits that are expected to be settled wholly within 12
months after the end of the period in which the employees
render the related service are recognised in respect
of employees' services up to the end of the reporting
period and are measured at the amounts expected to
be paid when the liabilities are settled. The liabilities are
presented as current employee benefit obligations in the
balance sheet.

(ii) Post-employment obligations

The Company operates the following post¬
employment schemes:

• defined contribution plans such as provident fund
and pension

• defined benefit plans such as gratuity

(a) Defined contribution plans

A defined contribution plan is a post-employment
benefit plan under which an entity pays specified
contributions to a separate entity and has no
obligation to pay any further amounts. The
Company makes specified monthly contributions
towards employee provident fund to Government
administered provident fund scheme which is
a defined contribution plan. The Company's
contribution is recognised as an expense in the
profit or loss during the period in which the employee
renders the related service.

The Company has a defined contribution employee
retirement scheme in the form of pension.
The Trustees of the scheme have entrusted
the administration of the related fund to the
Life Insurance Corporation of India (LICI). The
Company's contribution to LICI is recognised as
an expense in the profit or loss during the period in
which the employee renders the related service.

(b) Defined benefit plans

The liability or asset recognised in the balance sheet
in respect of gratuity plans is the present value of the
defined benefit obligation at the end of the reporting
period less the fair value of plan assets. The defined
benefit obligation is calculated annually by actuary
using the projected unit credit method.

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 the reporting period on government bonds
that have terms approximating to the terms of the
related obligation.

(iii) Other long-term employee benefit obligations

The employees can carry-forward a portion of the
unutilised accrued compensated absences and utilise it
in future service periods or receive cash compensation
on termination of employment. Since the compensated
absences do not fall due wholly within twelve months
after the end of the period in which the employees render
the related service and are also not expected to be
utilised wholly within twelve months after the end of such
period, the benefit is classified as a long-term employee
benefit. They are therefore measured as the present value
of expected future payments to be made in respect of
services provided by employees up to the end of the
reporting period using the projected unit credit method.
The benefits are discounted using the market yields at the
end of the reporting period on government bonds that
have terms approximating to the terms of the related
obligation. Remeasurements as a result of experience
adjustments and changes in actuarial assumptions are
recognised in profit or loss.

The obligations are presented as current and non current
liabilities based on actuarial valuation and estimates
relating to availment of leave, separation of employees
etc in the balance sheet.

Note 2.5 Leases
As a lessee

The Company's lease asset classes primarily comprise of
lease for lands. 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 determines whether an arrangement contains
a lease by assessing whether the fulfilment of a transaction
is dependent on the use of a specific asset and whether the
transaction conveys the right to use that asset to the Company
for a period of time in return for payment. Where this occurs,
the arrangement is deemed to include a lease.

Assets and liabilities arising from a lease are initially measured
on a present value basis. Lease liabilities include the net
present value of the following lease payments:

• fixed payments (including in-substance fixed payments),

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• variable lease payment that are based on an index or a
rate, initially measured using the index or rate as at the
commencement date

• amounts expected to be payable by the company under
residual value guarantees

• the exercise price of a purchase option if the company is
reasonably certain to exercise that option, and

• payments of penalties for terminating the lease, if the
lease term reflects the company exercising that option.

Lease payments to be made under reasonably certain
extension options are also included in the measurement
of the liability. The lease payments are discounted using
the interest rate implicit in the lease. If that rate cannot be
readily determined, which is generally the case for leases in
the company, the lessee's incremental borrowing rate is used,
being the rate that the individual lessee would have to pay to
borrow the funds necessary to obtain an asset of similar value
to the right-of-use asset in an economic environment with
similar terms, security and conditions.

Lease liabilities are remeasured with a corresponding
adjustment to the related right of use asset if the Company
changes its assessment if whether it will exercise an extension
or a termination option.

To determine the incremental borrowing rate, the company:

• where possible, uses recent third-party financing received
by the individual lessee as a starting point, adjusted to
reflect changes in financing conditions since third party
financing was received

• uses a build-up approach that starts with a risk-free
interest rate adjusted for credit risk for leases held by
the Company, which does not have recent third-party
financing, and

• makes adjustments specific to the lease, e.g. term,
country, currency and security.

The company is exposed to potential future increases in
variable lease payments based on an index or rate, which are
not included in the lease liability until they take effect. When
adjustments to lease payments based on an index or rate take
effect, the lease liability is reassessed and adjusted against the
right-of-use asset.

Lease payments are allocated between principal and finance
cost. The finance cost is charged to profit and loss over the
lease period to produce a constant periodic rate of interest on
the remaining balance of the liability for each period.

Variable lease payments that depends on sale are recognized
in profit or loss in the period in which the condition that triggers
those payment occurs.

Entity determines the lease term as the non-cancellable period
of a lease, together with both:

(a) periods covered by an option to extend the lease if the
lessee is reasonably certain to exercise that option; and

(b) periods covered by an option to terminate the lease if the
lessee is reasonably certain not to exercise that option.

Right-of-use assets are measured at cost comprising
the following

• the amount of initial measurement of lease liability

• any lease payments made at or before the commencement
date less any lease incentives received

• any initial direct costs, and

• restoration costs.

Right-of-use assets are generally depreciated over the shorter
of the asset's useful life and the lease term on a straight-line
basis. If the company is reasonably certain to exercise a
purchase option, the right-of-use asset is depreciated over the
underlying asset's useful life. They are subsequently measured
at cost less accumulated depreciation and impairment losses.

Payments associated with short-term leases of equipment
and leases of low-value assets are recognized on a straight¬
line basis as an expense in profit or loss. Short-term leases are
leases with lease term of 12 months or less.

Note 2.6 Trade Receivables

Trade receivables are amounts due from customers for goods
sold or services performed in the ordinary course of business
and reflects company's unconditional right to consideration
(that is, payment is due only on the passage of time). Trade
receivables are recognised initially at the transaction price
as they do not contain significant financing components. The
company holds the trade receivables with the objective of
collecting the contractual cash flows and therefore measures
them subsequently at amortised cost using the effective
interest method, less loss allowance.

For trade receivables, the Company applies the simplified
approach required by Ind AS 109, which requires expected
lifetime losses to be recognised from initial recognition of
the receivables.

This note provides a list of the other accounting policies
adopted in the preparation of these Indian Accounting
Standards (Ind-AS) financial statements to the extent they
have not already been disclosed as part of material accounting
policy information [Refer Note 2(a)].These policies have been
consistently applied to all the years except where newly issued
accounting standard is initially adopted.

Note 2.7 Property, plant and equipment:

The cost of an item of property, plant and equipment
comprises its cost of acquisition inclusive of inward freight,
import duties, and other non-refundable taxes or levies and
any directly attributable to the acquisition / construction of
those items; any trade discounts and rebates are deducted in
arriving at the cost of acquisition.

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 and the cost of the item can
be measured reliably. The carrying amount of any component
accounted for as a separate asset is derecognised when
replaced. All other repairs and maintenance are charged to
statement of profit or loss during the reporting period in which
they are incurred.

The present value of the expected cost for decommissioning
of an asset after its use is included in the cost of the respective
asset, if the recognition criteria for a provision are met.

Property, plant and equipment is eliminated from the financial
statements on disposal or on its classification as non-current
assets held for disposal.

The assets' residual values and useful lives are reviewed, and
adjusted if appropriate, at the end of each reporting period.

Gain or losses arising on disposal of property, plant and
equipment are recognised in profit or loss.

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

On the date of transition to Ind AS i.e. January 1, 2016, the
Company has opted to measure all of its property, plant and
equipment at their previous Generally Accepted Accounting
Principles net carrying value and use that net carrying value
as its deemed cost.

Individual items of property, plant and equipment and
intangible asset valuing ' 5,000/- or less is fully depreciated
or amortized in the year of acquisition or put to use.

Intangible assets are recorded at the cost incurred for its
acquisition and are carried at cost less amortization and
impairment, if any.

Cost of intangible asset is capitalized where it is expected to
provide future enduring economic benefits and the cost can
be measured reliably. Capitalization costs include license fees
and costs of implementation/system integration services. The
costs are capitalised in the year in which the relevant intangible
asset is put to use.

Internally generated intangibles, excluding capitalised
development costs, are not capitalised and the related
expenditure is reflected in profit or loss in the period in which
the expenditure is incurred.

Subsequent expenditure is capitalised only when it increases
the future economic benefits from the specific assets to which
it relates.

Intangible assets with finite lives are amortised over the useful
economic life and assessed for impairment whenever there is
an indication that the intangible asset may be impaired. The
amortisation period and the amortisation method for an
intangible asset with a finite useful life are reviewed at least
at the end of each reporting period.

Gain or losses arising on disposal/discarding of intangible
assets are recognised in profit or loss.

Intangible assets are amortised over their respective individual
estimated useful life on a straight line basis.

Computer software is classified as an intangible asset and
amortised on a straight line basis over a period of three years.

Pro-rata amortization is charged on intangible assets from /
up to the date on which such assets are acquired for use / are
deleted or discarded.

In respect of assets whose useful life is revised, the unamortised
amortisable amount is charged over the revised remaining
useful life of the assets.

On transition to Ind AS, the Company has elected to continue
with the carrying value of all of its intangible assets recognised
as at January 1, 2016, measured as per the previous GAAP,
and use that carrying value as the deemed cost of such
intangible assets.

Note 2.9 Impairment of Non-Financial Assets

At the date of balance sheet, if there are indications of
impairment and the carrying amount of the cash generating
unit exceeds its recoverable amount (i.e. the higher of the fair
value less costs of disposal and value in use), an impairment
loss is recognised. The carrying amount is reduced to the
recoverable amount and the reduction is recognised as an
impairment loss in the statement of profit and loss.

The impairment loss recognised in the prior accounting
period is reversed if there has been a change in the estimate
of recoverable amount. Post impairment, depreciation is
provided on the revised carrying value of the impaired asset
over its remaining useful life.

Where an impairment loss subsequently reverses, the carrying
amount of the asset (or cash generating unit) is increased to
the revised estimate of its recoverable amount, so that the
increased carrying amount does not exceed the carrying
amount that would have been determined had no impairment
loss been recognised for the asset (or cash generating unit) in
prior years. A reversal of an impairment loss is recognised in
the statement of profit and loss immediately.

Note 2.10 Inventories

Cost of raw materials and stores, and traded goods comprises
cost of purchases, other directly attributable expenditure, non¬
refundable taxes and duties; net of any rebates or discounts .
Cost of work-in-progress and finished goods comprises direct
materials, direct labour and an appropriate proportion of
variable and fixed overhead expenditure, the latter being
allocated on the basis of normal operating capacity. Cost of
inventories also include all other costs incurred in bringing the
inventories to their present location and condition. Costs of
purchased inventory are determined after deducting rebates
and discounts.

Note 2.11 Government grant/ subsidy

Grants from the government are recognised at their fair
value where there is a reasonable assurance that the grant
will be received and the Company will comply with all
attached conditions.

Government grants relating to income are deferred and
recognised in the statement of profit or loss over the period
necessary to match them with the costs that they are intended
to compensate and presented within other income.

Government grants relating to the purchase of property,
plant and equipment are included in non-current liabilities as
deferred income and are credited to statement of profit or loss
on a straight-line basis over the expected lives of the related
assets and presented within other income.

Note 2.12 Income tax

The income tax expense or credit for the period is the tax
payable on the current period's taxable income based on the
applicable income tax rate adjusted by changes in deferred
tax assets and liabilities attributable to temporary differences
and to unused tax losses.

The current income tax charge is calculated on the basis of
the tax laws enacted or substantively enacted at the end of
the reporting period. Management periodically evaluates

positions taken in tax returns with respect to situations in
which applicable tax regulation is subject to interpretation and
considers whether it is probable that a taxation authority will
accept an uncertain tax treatment. The Company measures
its tax balances either based on the most likely amount or the
expected value, depending on which method provides a better
prediction of the resolution of the uncertainty.

Deferred income tax is provided in full, using the liability
method, on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts
in the financial statements. Deferred income tax is also not
accounted for if it arises from initial recognition of an asset
or liability in a transaction other than a business combination
that at the time of the transaction affects neither accounting
profit nor taxable profit (tax loss). Deferred income tax is
determined using tax rates (and laws) that have been enacted
or substantially enacted by the end of the reporting period and
are expected to apply when the related deferred income tax
asset is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible
temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to
utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is
a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the
same taxation authority. Current tax assets and tax liabilities
are offset where the entity has a legally enforceable right to
offset and intends either to settle on a net basis, or to realise
the asset and settle the liability simultaneously.

The carrying amount of deferred income 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 income tax asset
to be utilised.

Current and deferred tax is recognised in profit or loss,
except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax
is also recognised in other comprehensive income or directly
in equity, respectively.

Note 2.13 Foreign currency transactions and
balances

Items included in the financial statements of Company
are measured using the currency of the primary economic
environment in which the entity operates ("the functional
currency"). The Company's financial statements are presented
in Indian Rupees, which is also the Company's functional and
presentation currency.

Foreign currency transactions are translated into the
functional currency using the exchange rates at the dates of

the transactions. Foreign exchange gains and losses resulting
from the settlement of such transactions and from the
translation of monetary assets and liabilities denominated in
foreign currencies at year end exchange rates are recognised
in profit or loss.