SIGNIFICANT ACCOUNTING POLICIES

1. Accounting Convention

The Standalone Financial statements are prepared under
the historical cost convention on the “Accrual Concept”
and Going Concern assumption of accountancy in
accordance with the accounting principles generally
accepted in India and comply with the accounting
standards as prescribed by Companies (Accounting
Standard) Rules, 2006 and with the relevant provisions
of the Companies Act, 2013 and rules made there under.

2. Use of Estimates

The preparation of financial statements in conformity
with Indian GAAP requires the management to make
judgments, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities,
at the end of the reporting period. Although these
estimates are based on the management's best
knowledge of current events and actions, uncertainty
about these assumptions and estimates could result
in the outcomes requiring a material adjustment to the
carrying amounts of assets or liabilities in future periods

3. Property, Plant and Equipment

Property, Plant and Equipment are stated at cost
less accumulated depreciation. Cost comprises of all
expenses incurred to bring the assets to its present
location and condition. Borrowing cost directly
attributable to the acquisition /construction are included

in the cost of fixed assets. Adjustments arising from
exchange rate variations attributable to the fixed assets
are capitalized.

In case of new projects / expansion of existing projects,
expenditure incurred during construction / preoperative
period including interest and finance charge on specific
/ general purpose loans, prior to commencement of
commercial production are capitalized. The same are
allocated to the respective t on completion of construction
/ erection of the capital project / fixed assets.

Subsequent expenditures related to an item of tangible
asset are added to its book value only if they increase the
future economic benefits from the existing asset beyond
its previously assessed standard of performance.

Capital assets (including expenditure incurred
during the construction period) under erection /
installation are stated in the Balance Sheet as “Capital
Work in Progress.”

4. Impairment of Assets

At each balance sheet date, the Company reviews the
carrying amount of its fixed assets to determine whether
there is any indication that those assets suffered an
impairment loss. If any such indication exists, the
recoverable amount of the assets is estimated in order
to determine the extent of impairment loss. Recoverable
amount is the higher of an asset's net selling price and
value in use. In assessing value in use, the estimated
future cash flows expected from the continuing use of
the assets and from its disposal are discounted to their
present value using a pre-tax discount rate that reflects
the current market assessments of time value of money
and the risks specific to the assets.

5. Depreciation

All fixed assets, except capital work in progress, are
depreciated on WDV Method. Depreciation is provided
based on useful life of the assets as prescribed in
Schedule II to the Companies Act, 2013. All Fixed
Assets individually costing Rs. 5,000 or less are
fully depreciated in the year of installation/purchase.
Depreciation on additions to / deletions from fixed
assets made during the period is provided on pro-rata
basis from / up to the date of such addition /deletion as
the case may be.

6. Investments

Investments are classified into current investments
and non-current investments. Current investments i.e.,
investments that are readily realizable and intended to
be held for not more than a year valued at cost. Any
permanent reduction in the carrying amount or any
reversals of such, reductions are charged or credited to
the Statement of Profit & loss Account.

Non-current investments are stated at cost. Provision
for diminution in the value of these investments is made
only if such decline is other than temporary, in the
opinion of the management.

7. Inventories

The Company is in the business of providing services
so that it does not hold any inventories.

8. Revenue Recognition

Revenue from the operations is recognized on generally
accepted accounting principal and when it is earned
and no significant uncertainty exists as to its ultimate
collection and includes taxes, wherever applicable.

The capital gain on sale of investments if any are
recognized on completion of transaction. No notional
profit/loss are recognized on such investments.

Revenue from sale of product is recognized, net of trade
discounts. Sales exclude indirect taxes.

Interest income is recognized on time proportion basis,
when it is accrued and due for payment.

9. Borrowing Cost

Borrowing cost that are attributable to the acquisition,
construction or production of qualifying assets are
capitalized as part of the cost of such assets. A qualifying
asset is one that necessarily takes a substantial period
of time to get ready for its intended use. All other
borrowing costs are charged to revenue.

10. Employee Benefits
Employee Benefits:

Employee benefits include provident fund and gratuity.

Defined contribution plan:

The Company's contributions to provident fund are
considered as defined contribution plan and are charged
as an expense as they fall due based on the amount of
contribution required to be made when the services are
rendered by the employees.

Defined Benefits Plan:

For defined benefit plans in the form of gratuity, the cost
of providing benefits is determined using the Projected
Unit Credit method, with actuarial valuations being
carried out at each Balance Sheet date. Actuarial gains
and losses are recognized in the Profit and Loss Account
in the period in which they occur. Past service cost is
recognized immediately to the extent that the benefits
are already vested while otherwise, it is amortized
on a straight-line basis over the average period until
the benefits become vested. The retirement benefit
obligation recognized in the Balance Sheet represents
the present value of the defined benefit obligation as
adjusted for unrecognized past service cost, as reduced
by the fair value of plan assets.

Short term Employee benefits:

The undiscounted amount of short-term employee
benefits expected to be paid in exchange for the
services rendered by employees are recognized during
the year when the employees render the service.
These benefits include performance incentive and
compensated absences which are expected to occur
within twelve months after the end of the period in which
the employee renders the related service. The cost of
such compensated absences is accounted as under:

in case of accumulated compensated absences, when
employees render the services that increase their
entitlement of future compensated absences; and

in case of non-accumulating compensated absences,
when the absences occur.

Share based payment:

The Employee Stock Option Plan (ESOPs) of the
Company are in accordance with Companies act, 2013.
The Plan provide for grant of options on equity shares
to employees of the Company to acquire the equity
shares of the Company that vest in a cliff vesting or in
a graded manner and that are to be exercised within a
specified period.

In accordance with the Guidance Note on Accounting
for Employee Share-based Payments, issued by The
Institute of Chartered Accountants of India, the cost of
equity-settled transactions is measured using the Fair
value method. The Fair value of ESOP is amortized

on a straight-line basis over the vesting period of the
option as employee compensation cost. The cumulative
expense recognized for equity-settled transactions at
each reporting date until the vesting date reflects the
extent to which the vesting period has expired and the
number of equity instruments that are outstanding and
expected to vest.

The options that do not vest because of failure to satisfy
vesting condition are reversed by a credit to employee
compensation expense, equal to the amortized portion
of value of lapsed portion. In respect of the options
which expire unexercised the balance standing to the
credit of Employee's Stock Option (Grant) Outstanding
accounts is transferred to Profit & Loss Account.

11. Earnings Per Share

Basic earnings per share are calculated by dividing the
net profit or loss for the period attributable to equity
shareholders (after deducting attributable taxes) by the
weighted average number of equity shares outstanding
during the period. The weighted average number of
equity shares outstanding during the period is adjusted
for events such as bonus issue, share split and reverse
share split (consolidation of shares) that have changed
the number of equity shares outstanding, without a
corresponding change in resources.

For the purpose of calculating diluted earnings per
share, the net profit or loss for the period attributable to
equity shareholders and the weighted average number
of shares outstanding during the period are adjusted for
the effects of all dilutive potential equity shares.

12. Taxes on Income

Income tax expenses for the year comprises of
current tax and deferred tax. Current tax provision is
determined on the basis of taxable income computed
as per the provisions of the Income Tax Act. Deferred
tax is recognized for all timing differences that are
capable of reversal in one or more subsequent periods
subject to conditions of prudence and by applying tax
rates that have been substantively enacted by the
balance sheet date.

13. Foreign Currency Translation

a) Transaction denominated in foreign currencies
are recorded at the exchange rate prevailing at
the date of the transaction. Monetary assets and
liabilities denominated in foreign currencies at the
year end are restated at closing rate.

b) Any exchange difference on account of settlement
of foreign currency transaction and restatement
of monetary assets and liabilities denominated in