Shree Ram Twistex Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

2 Material accounting policies

Material accounting policies adopted by the company are as under:

2.01 Basis of Preparation of Financial Statements

(a) Basis of preparation of financial statements

The financial statements of the Company have been prepared in accordance with the measurement and recognition principles of Indian Accounting
Standard ("Ind AS”) as notified under section 133 of the Companies Act, 2013 ("the Act”) read with the Companies (Indian Accounting Standards)
Rules, 2015 (as amended) issued by Ministry of Corporate Affairs, as amended from time to time. These financial statements comprise of Balance
Sheet as at 31 March 2026 and 31 March 2025, the Statement of Profit and Loss (including other comprehensive income), the Statement of Cash
Flows and the Statement of Changes in Equity, for the years then ended, the summary of material accounting policies and other explanatory
information (Collectively, the "Ind AS financial statements”).

(b) Basis of measurement

The financial statements have been prepared on a historical cost basis, except for the following assets and liabilities which have been measured at
fair value or revalued amount:

- Defined Benefit Plans - Plan Assets measured at fair value; and
Classification into current and non-current:

All assets and liabilities have been classified as current or non-current as per the company''s normal operating cycle and other criteria as set out in
the Division II of Schedule III to the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing
and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or non¬
current classification of assets and liabilities.

The financial statements are presented in Indian Rupees, which is Company''s Functional Currency and all values are rounded off to the nearest
Lakhs rupees, unless otherwise indicated.

(c) Use of estimates

The preparation of financial statements in conformity with Ind AS requires the Management to make estimate and assumptions that affect the
reported amount of assets and liabilities as at the Balance Sheet date, reported amount of revenue and expenses for the year and disclosures of
contingent liabilities as at the Balance Sheet date. The estimates and assumptions used in the accompanying financial statements are based upon the
Management''s evaluation of the relevant facts and circumstances as at the date of the financial statements. Actual results could differ from these
estimates. Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates, if any, are recognized in the
year in which the estimates are revised and in any future years affected.

2.02 Property, plant and equipment & Intangible Assets

Items of property, plant and equipment are stated at cost, net of recoverable taxes, trade discounts and rebates less accumulated depreciation and
impairment losses, if any.

Cost of property, plant and equipment comprises its purchase price net of any trade discounts and rebates, including import duties and non -
refundable purchase taxes, and any directly attributable costs of bringing an asset to working condition and location for its intended use and
estimated costs of dismantling and removing the item and restoring the item and restoring the site on which it is located.

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. All other repair and
maintenance cost are charged to the Statement of Profit and Loss during the period in which they were incurred.

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.

Material items such as spare parts, stand-by equipment and service equipment are classified as property, plant and equipment when they meet the
definition of property, plant and equipment as specified in Ind AS 16 - Property, Plant and Equipment.

An item of property, plant and equipment is derecognised upon its disposal or when no future economic benefits are expected from its use or
disposal. Any gain or loss on disposal of the item of property, plant and equipment is included in the Statement of Profit and Loss.

The estimated useful lives and residual values are reviewed on an annual basis and if necessary, changes in estimates are accounted for
prospectively. Depreciation on additions/deletions to PPE during the year is provided for on a pro-rata basis with reference to the date of
additions/deletions.

The Building class of assets is measured using the Revaluation value model. The Company transfers the revaluation surplus relating to an item of
Property, Plant and Equipment to retained earnings on a systematic basis over the useful life of the asset based on its use, being the difference
between depreciation on the revalued amount and depreciation based on the asset''s original cost. The balance, if any, is transferred to retained
earnings upon derecognition of the respective asset.

Depreciation methods, estimated useful lives

Depreciation is the systematic allocation of the depreciable amount of property, plant and equipment over its useful life and is provided on a written
down value (WDV) over the useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 ("the Act”) or as per technical
assessment by the Management.

Depreciable amount for property, plant and equipment is the cost of property, plant and equipment less its estimated residual value. The useful life
of property, plant and equipment is the period over which it is expected to be available for use by the Company or the number of production or
similar units expected to be obtained from it by the Company.

In respect of additions or extensions forming an integral part of existing assets and insurance spares, including incremental cost arising on account
of translation of foreign currency liabilities for acquisition of Property, Plant and Equipment’s, depreciation is provided as aforesaid over the
residual life of the respective assets.

Depreciation on addition to property plant and equipment is provided on pro-rata basis from the date of acquisition. Depreciation on sale/deduction
from property plant and equipment is provided up to the date preceding the date of sale, deduction as the case may be. Gains and losses on disposals
are determined by comparing proceeds with carrying amount. These are included in Statement of Profit and Loss under ’Other Income’.

Depreciation methods, useful lives and residual values are reviewed periodically at each financial year end and adjusted prospectively, as
appropriate.

2.03 Capital work in progress

Projects under which property, plant and equipment’s are not yet ready for their intended use are carried at cost, comprising direct cost and related
incidental expenses.

2.04 Foreign Currency Transactions

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the
reporting currency and the foreign currency at the date of the transaction.

Conversion

Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Non-monetary items, which are
measured in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction. Non¬
monetary items, which are measured at fair value or other similar valuation denominated in a foreign currency, are translated using the exchange
rate at the date when such value was determined.

Treatment of exchange differences

Exchange differences arising on settlement / restatement of foreign currency monetary assets and liabilities of the Company are recognised as
income or expense in the statement of profit and loss.

2.05 Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at
the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes
place either:

? In the principal market for the asset or liability, or

? In the absence of a principal market, in the most advantageous market for the asset or liability accessible to the company.

The company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value,
maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy,
described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

- Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

- Level 2 — Inputs other than quoted prices included in Level 1 that are observable for the assets or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices).

- Level 3 — Inputs for the assets or liability that are not based on observable market data (unobservable inputs).

2.06 Revenue Recognition

Revenue from sale or goods is recognized on transfer of significant risk and rewards of ownership to buyer that coincides with the delivery of goods.
The company present revenue net of goods and service tax in its Statement of Profit and Loss.

Revenue from operations includes sale of goods, services and other income from operations.

Export incentives on sales under various schemes notified by the Government has been recognised on accrual basis in the year of export. Other
incentives and subsidies under various schemes notified by the Government has been recognised on the basis of amount received.

Interest income is recognised on time proportion basis taking into account the amount outstanding and rate applicable.

Other items of income are accounted as and when the right to receive such income arises and it is probable that the economic benefits will flow to
the company and the amount of income can be measured reliably.

2.07 Taxes

Tax expense for the year, comprising current tax and deferred tax, are included in the determination of the net profit or loss for the year.

(a) Current income tax

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act,
1961. 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 realize the asset and settle the liability simultaneously.

(b) Deferred tax

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.

The carrying amount of deferred 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 tax asset to be utilised. Unrecognised deferred tax assets are re- assessed at each
reporting date and are recognised to the extent that it has become reasonably certain that future taxable profits will allow the deferred tax asset to
be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised 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 relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in
equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

2.08 Inventories

a) Raw material, packing material and stores and spare parts (including Fuel)

Item of inventories are valued at lower of cost and net realisable value after providing for obsolescence, if any, except in case of by-product / scrap /
wastage which are valued at net realisable value. However, materials and other items held for use in the production of finished goods are not valued
below cost, if finished products in which they will be incorporated are expected to sold at or above cost.

b) Finished goods, stock-in-trade and work in progress

Finished goods, stock-in-trade and work in progress are valued at the lower of cost and net realizable value.

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.

In determining the cost of raw materials, packing materials, stock-in-trade, stores and spares, trading and other products, weighted average cost
method is used.

2.09 Impairment of non-financial assets

The Company assesses at each reporting date as to whether there is any indication that any non-financial asset or group of assets, called Cash
Generating Units (CGU) may be impaired. If any such indication exists, the recoverable amount of the asset or CGU is estimated to determine the
extent of impairment, if any. When it is not possible to estimate the recoverable amount of the individual asset, the Company estimates the
recoverable amount of the CGU to which the asset belongs.

An impairment loss is recognised in the Restated Statement of Profit and Loss to the extent, asset''s carrying amount exceeds its recoverable amount.
The recoverable amount is higher of an asset''s fair value less cost of disposal and value in use. Value in use is based on the estimated future cash
flows, discounted to their present value using pre-tax discount rate that reflects current market assessments of the time value of money and risk
specific to the assets.

The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

2.10 Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks, cash on hand and short-term deposits with an original maturity of three
months or less, which are subject to an insignificant risk of changes in value.

2.11 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
(a) Financial assets

(i) Initial recognition and measurement

At initial recognition, financial asset is measured at its fair value plus, in the case of a financial asset not at fair value through profit or loss,
transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value
through profit or loss are expensed in profit or loss.

(ii) Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in following categories:

a) at amortized cost; or

b) at fair value through other comprehensive income; or

c) at fair value through profit or loss.

The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows.

Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and
interest are measured at amortized cost. Interest income from these financial assets is included in finance income using the effective interest rate
method (EIR).

Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cash flows and for selling the financial
assets, where the assets'' cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive
income (FVOCI). Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest
revenue and foreign exchange gains and losses which are recognized in Statement of Profit and Loss. When the financial asset is derecognized, the
cumulative gain or loss previously recognized in OCI is reclassified from equity to Statement of Profit and Loss and recognized in other gains/
(losses). Interest income from these financial assets is included in other income using the effective interest rate method.

Fair value through profit or loss: Assets that do not meet the criteria for amortized cost or FVOCI are measured at fair value through profit or loss.
Interest income from these financial assets is included in other income.

Equity instruments: All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are
classified as at FVTPL. For all other equity instruments, the company may make an irrevocable election to present in other comprehensive income
subsequent changes in the fair value. The company makes such election on an instrument- by-instrument basis. The classification is made on initial
recognition and is irrevocable.

If the company decides to classify an equity instrument as at FVOCI, then all fair value changes on the instrument, excluding dividends, are
recognized in the OCI. There is no recycling of the amounts from OCI to P&L, even on sale of investment. However, the company may transfer the
cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the profit and loss.

Derivative financial Assets:Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently
re-measured to their fair value at the end of each reporting period.

(iii) Impairment of financial assets

In accordance with Ind AS 109, Financial Instruments, the company applies expected credit loss (ECL) model for measurement and recognition of
impairment loss on financial assets.

In case of trade receivables, the company follows a simplified approach wherein an amount equal to lifetime ECL is measured and recognized as loss
allowance.

In case of other assets , the company determines if there has been a significant increase in credit risk of the financial asset since initial recognition. If
the credit risk of such assets has not increased significantly, an amount equal to 12-month ECL is measured and recognized as loss allowance.
However, if credit risk has increased significantly, an amount equal to lifetime ECL is measured and recognized as loss allowance.

Subsequently, if the credit quality of the financial asset improves such that there is no longer a significant increase in credit risk since initial
recognition, the company reverts to recognizing impairment loss allowance based on 12-month ECL.

ECL is the difference between all contractual cash flows that are due to the company in accordance with the contract and all the cash flows that the
company expects to receive (i.e., all cash shortfalls), discounted at the original effective interest rate. Lifetime ECL are the expected credit losses
resulting from all possible default events over the expected life of a financial asset. 12-month ECL are a portion of the lifetime ECL which result from
default events that are possible within 12 months from the reporting date.

ECL are measured in a manner that they reflect unbiased and probability weighted amounts determined by a range of outcomes, taking into account
the time value of money and other reasonable information available as a result of past events, current conditions and forecasts of future economic
conditions.

As a practical expedient, the company uses a provision matrix to measure lifetime ECL on its portfolio of trade receivables. The provision matrix is
prepared based on historically observed default rates over the expected life of trade receivables and is adjusted for forward-looking estimates. At
each reporting date, the historically observed default rates and changes in the forward-looking estimates are updated.

(iv) Derecognition of financial assets

A financial asset is derecognized only when

a) the rights to receive cash flows from the financial asset is transferred or

b) retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or
more recipients.

Where the financial asset is transferred then in that case financial asset is derecognized only if substantially all risks and rewards of ownership of
the financial asset is transferred. Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the
financial asset is not derecognized.

(b) Financial liabilities

(i) Initial recognition and measurement

All financial liabilities are recognized initially at fair value and, in the case of borrowings and payables, net of directly attributable transaction costs.

(ii) Subsequent measurement

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as
held-for-trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net
gains and losses, including any interest expense, are recognised in profit or loss.

Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange
gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.

(iii) Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is
replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an
exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognized in the Statement of Profit and Loss as finance costs.

(c) Embedded derivatives

An embedded derivative is a component of a hybrid (combined) instrument that also includes a non-derivative host contract - with the effect that
some of the cash flows of the combined instrument vary in a way similar to a derivative. Derivatives embedded in all other host contract are
separated if the economic characteristics and risks of the embedded derivative are not closely related to the economic characteristics and risks of
the host and are measured at fair value through profit or loss. Embedded derivatives closely related to the host contracts are not separated.

(d) Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the
recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally
enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default,
insolvency or bankruptcy of the company or the counterparty.

(e) Derivative financial liability

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured to their fair value
at the end of each reporting period.

2.12 Employee Benefits

(a) Short-term obligations

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised
as an expense during the period when the employees render the services.

(b) Other long-term employee benefit obligations

(i) Defined contribution plan

The Company recognises contribution payable to the provident fund scheme as an expense, during the period in which employee renders the related
service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit
payable to the scheme is recognised as a liability. If the contribution already paid exceeds the contribution due for services received before the
balance sheet date, then excess is recognised as an asset to the extent that the pre-payment will lead to a reduction in future payment or a cash
refund.

(ii) Defined benefit plans

The Company pays gratuity to the employees who have completed five years of service with the Company at the time of retirement / resignation /
death while in employment. The gratuity is paid @ 15 days basic salary for every completed year of service up to ^20,00,000/-. The liability in
respect of gratuity and other post-employment benefits is calculated using the Projected Unit Credit Method and spread over the period during
which the benefit is expected to be derived from employees'' services.

Re-measurement gains and losses arising from adjustments and changes in actuarial assumptions are recognised in the period in which they occur
in Other Comprehensive Income.

2.13 Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average
number of equity shares outstanding during the period. The average weighted average number of equity shares outstanding during the period and
for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity 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.

2.14 Borrowing Costs

General and specific borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalised as part
of the cost of such asset till such time the asset is ready for its intended use and borrowing cost are being incurred. A qualifying asset is an asset that
necessarily takes a substantial time to get ready for its intended use. All other borrowing costs are recognised as an expense in the period they are
incurred.

Borrowing cost includes interest expense, amortisation of discounts and ancillary costs incurred in connection with borrowing of funds.

2.15 Rounding off amounts

All amounts disclosed in financial statements and notes have been rounded off to the nearest Lakhs as per requirement of Schedule III of the Act,
unless otherwise stated.

3 Significant accounting judgments, estimates and assumptions

The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and
estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future years.

2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENT

These financial statements are prepared in accordance with the Indian Generally Accepted Accounting Principles (Indian
GAAP) including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013, which are
mandatory for Small & Medium Company. Accounting policies have been consistently applied in the year, except where a
newly issued accounting standard is initially adopted or revision to existing accounting standard require a change in the
accounting policy hereto in use. The financial statements are prepared on accrual basis under historical cost convention.
The financial statements are presented in Indian rupees rounded to nearest rupee Lacs.

2.2 USE OF ESTIMATES

The preparation of these financial statements in conformity with Indian GAAP requires the management to make estimates,
judgements and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent liabilities
on the date of the financial statements and the reported amount of revenues and expenses during the reporting period.
Difference between the actual results and estimates are recognized in the period in which the results are
known/materialized. The management believes that the estimates used in the preparation of financial statements are
prudent and reasonable.

2.3 PROPERTY, PLANT & EQUIPMENT
PROPERTY, PLANT 8. EQUIPMENT

Property, plant & equipment (PPE) are stated at cost of acquisition, net of recoverable taxes, trade discounts and rebates
less accumulated depreciation and impairment loss, if any. The cost of property, plant & equipment comprises of its
purchase cost, borrowing cost, other cost, direct/indirect attributable and/or incidental, incurred to bring them to working
condition for its intended use at their present location.

Subsequent expenditures related to any item of property, plant & equipment are added to its book value only if they
increases the future benefits from the existing asset beyond its previously assessed standard of performance.

In respect of additions or extensions forming an integral part of existing assets and insurance spares, including incremental
cost arising on account of translation of foreign currency liabilities for acquisition of assets, depreciation is provided as
aforesaid over the residual life of the respective assets.

When any part or item of property, plant & equipment is disposed, the gain / loss is recognized as net within other income
/ expense in Statement of Profit and Loss. Gain/loss is determined by comparing the proceeds from disposal with the
carrying amount of the disposed asset as on the date of disposal.

CAPITAL WORK IN PROGRESS

Property, plant & equipment which are not ready for their intended use at the reporting date, if any, are disclosed under
Capital Work-in-Progress.

2.4 INTANGIBLE ASSETS

Intangible assets are stated at cost of acquisition, net of recoverable taxes, trade discounts and rebates less accumulated
amortization/depletion and impairment loss, if any. The cost of intangible asset comprises of its purchase cost and other
cost directly attributable to making of asset ready for its intended use. The cost that are directly attributed in
generating/developing the assets including the cost of material consumed, services used and employment cost of
personnel directly involved and overheads that are necessary and that can be allocated on a reasonable and consistent
basis to the assets.

2.5 DEPRECIATION AND AMORTISATION

Depreciation on property, plant & equipment assets is provided to the extent of depreciable amount on the Written Down
Value (WDV) Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the
Companies Act, 2013.

Depreciation for the assets purchased / sold during the period is charged on pro-rata basis with reference to the date
when asset is put to use.

Amortization of intangible assets is done during its estimated useful life on basis of Straight-line Method (SLM). Estimated
useful life taken for amortization of each asset is as under:

2.6 IMPAIRMENT OF ASSETS

The management periodically assess whether there is an indication that an asset may be impaired. An asset is treated as
impaired when the carrying cost of asset exceeds its recoverable value. The recoverable value is the higher of the assets''
net selling price or value in use, which means the present value of future cash flows expected to arise from the continuing
use of the assets and its eventual disposal.

An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired.
The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of
recoverable amount.

2.7 FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction or
rate that approximates the actual rate at the date of transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at exchange rates in effect at the Balance
Sheet date. Non-monetary assets and liabilities denominated in foreign currencies are carried at cost.

Any gains or losses on account of exchange differences either on settlement or on translation is recognized in Statement
of Profit and Loss, unless as per company''s accounting general policy on borrowing cost, they are regarded as borrowing
cost as adjustment to interest cost.

Exchange differences arising from foreign currency borrowing and considered as borrowing costs are those exchange
differences which arise on the amount of principal of the foreign currency borrowings to the extent of the difference
between interest on local currency borrowings and interest on foreign currency borrowings.

2.8 INVESTMENTS

Investments that are readily realisable and intended to be held for not more than 12 months from the date of acquisition
are classified as current investment. All other investments are classified as non-current investment. Current investments
are carried at lower of cost and quoted / fair value on individual investment basis. Non-current investments are stated at
cost. Provision for diminution in the value of Non-current investments is made only if such decline is other than temporary.

On disposal of investment, the difference between its carrying amount and net disposal proceeds is charged or credited
to the Statement of Profit & Loss.

2.9 GOVERNMENT GRANTS AND SUBSIDIES

Government grant is recognised only when there is reasonable assurance that the company will comply the conditions
attached them to and the grants will be received. Government grant related to specific fixed assets has been shown as
deduction from the gross value of the respective asset and the depreciation on the same is adjusted accordingly.
Government grants related to revenue has been recognised as income in Statement of Profit and Loss on a systematic
basis over the period necessary to match them with the related cost which they are intended to compensate. Government
grants which are refundable are shown as liabilities in the Balance Sheet.

2.10 REVENUE RECOGNITION

Revenue from sale of goods is recognized on transfer of significant risk and rewards of ownership to buyer that coincides
with the delivery of goods. The company present revenue net of goods and service tax in its Statement of Profit and Loss.

Revenue from operations includes sale of goods, services and other income from operations.

Export incentives on sales under various schemes notified by the Government has been recognised on accrual basis in the
year of export. Other incentives and subsidies under various schemes notified by the Government has been recognised on
the basis of amount received.

Interest income is recognised on time proportion basis taking into account the amount outstanding and rate applicable.

Other items of income are accounted as and when the right to receive such income arises and it is probable that the
economic benefits will flow to the company and the amount of income can be measured reliably.

2.11 INVENTORIES

Item of inventories are valued at lower of cost and net realisable value after providing for obsolescence, if any, except in
case of by-product / scrap / wastage which are valued at net realisable value. However, materials and other items held
for use in the production of finished goods are not valued below cost, if finished products in which they will be incorporated
are expected to sold at or above cost.

Cost of inventories comprises of cost of purchase, duties and taxes (other than those subsequently recoverable), cost of
conversion and other cost including manufacturing overheads net of recoverable taxes incurred in bring them to their
respective location and condition.

Cost of raw materials, process materials, stores and spares, packing materials, trading and other products are determined
on latest purchase price (FIFO) basis.

Work-in-progress and finished and semi finished goods are valued at lower of cost or net realisable value.

Provision of obsolescence on inventories is considered on the basis of management''s estimate based on demand and
market of the inventories.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion
and the estimated costs necessary to make the sale. The comparison of cost and net realizable value is made on item by
item basis.

2.12 BORROWING COST

Borrowing costs include interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings
and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to
the interest cost.

Borrowing costs that are attributable to the acquisition, construction or production of any qualifying assets are capitalized
as part of the cost of such assets. A qualifying assets is one that necessarily takes substantial period of time to get ready
for its intended use. All the other borrowing costs are charged to Statement of Profit and Loss in the period in which they
are incurred.

2.13 INCOME TAXES

Tax expense comprises of current tax and deferred tax. Current tax is measured at amount expected to be paid to the tax
authorities, using the applicable tax rates and considering the benefits admissible under provisions of Income Tax Act,
1961.

Deferred income tax reflects the current period timing differences between taxable income and accounting income and
reversal of timing differences of earlier years / period. Deferred tax asset is recognised and carried forward only to the
extent that there is reasonable certainty that the sufficient future income will be available except that deferred tax assets,
in case there is unabsorbed depreciation or losses, are recognised if there is virtual certainty that sufficient future taxable
income will be available to realise the same.

Deferred tax assets and liabilities are measured using tax rate and tax law that have been enacted or substantially enacted
as on the balance sheet date.

Minimum Alternate Tax (MAT) credit is recognised as an asset only when and to the extent there is convincing evidence
that the company will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet
date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence
to the effect that the company will pay normal income tax during the specified period.