SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - FOR STANDALONE STATEMENTS

1. Basis of Preparation of Financial Statements

(i) Compliance with Ind AS

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS), under the
historical cost convention on the accrual basis except for certain financial instruments which are measured at fair
values,in accordance with the provisions of the Companies Act, 2013 (“the Act”) (to the extent notified) and
guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section
133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant
amendment rules issued thereafter.

(ii) Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the following:

• certain financial assets and liabilities (including derivative instruments) and contingent consideration that are
measured at fair value;

Accounting policies have been consistently applied except where a newly issued accounting standard is initially
adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

As the quarter and year-endfigures are taken from the source and rounded to the nearest digits, the figures reported
for the previous quarters might not always add up to the year-end figures reported in this statement.

2. Use of estimates

The preparation of the financial statements in conformity with Ind AS requires the Management to make estimates,
judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting
policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the
date of the financial statements and reported amounts of revenues and expenses during the period. The application
of accounting policies that require critical accounting estimates involving complex and subjective judgments and
the use of assumptions in these financial statements have been disclosed in Notes. Accounting estimates could
change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates
are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in
estimates are reflected in the financial statements in the period in which the changes are made and, if material, their
effects are disclosed in the notes to the financial statements.

3. Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are
net of discounts and taxes.

The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that future
economic benefits will flow to the Company and specific criteria have been met for each of the Company’s activities
as described below. The Company bases its estimates on historical results, taking into consideration the type of
customer, the type of transaction and the specifics of each arrangement.

4. Income taxes

Income tax expense comprises current and deferred income tax.

Income tax expense is recognized in the statement of profit and loss except to the extent that it relates to items
recognized directly in equity, in which case it is recognized in equity. Current income tax for current and prior
periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates
and tax laws that have been enacted or substantively enacted by the balance sheet date. Provision for income tax
includes the impact of provisions established for uncertain income tax positions.

Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax assets and
liabilities recognized for those temporary differences which originate during the tax holiday period are reversed
after the tax holiday period. For this purpose, reversal of timing differences is determined using first in first out
method.

Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable
that the related tax benefit will be realized. Deferred income tax assets and liabilities are measured using tax rates
and tax laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply to
tax able income in the years in which those temporary differences are expected to be recovered or settled.

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 taxable entity and the same taxation
authority.

5. Impairment of non-financial assets

Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and are tested
annually for impairment, or more frequently if events or changes in circumstances indicate that they might be
impaired. Other assets are tested for impairment annually, or more frequently if events or changes in circumstances
indicate that they might be impaired whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount
exceeds its recoverable amount. The recoverable amount is higher of an asset’s fair value less cost of disposal or
value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash inflows which are largely independent of the cash inflows from other assets or a group
of assets (cash-generating units). Non-financial assets, other than goodwill, that suffer an impairment are reviewed
for possible reversal of the impairment at the end of each reporting period.

6. Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents include cash in hand and
deposits held at call with financial institutions which are subject to an insignificant risk of changes in value.

Bank overdrafts are shown within borrowings in current liabilities in the Balance Sheet.

7. Trade Receivables

Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the
effective interest method, less provision for impairment.

8. Inventories

Inventories represent items of traded goods that are specific to the weighing scale business of the company.
Inventory is carried at the lower of cost or net realizable value. The net realizable value is determined with reference
to selling price of goods less the estimated cost necessary to make the sale.

9. Financial Instruments

A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or
equityinstrument of another entity.

i. Financial assets

All financial assets are recognized initially at fair value. Transaction costs that are directly attributable to the
acquisition of financial assets (other than financial assets at fair value through profit or loss) are added to the
fair value measured on initial recognition of financial asset. Purchase and sale of financial assets are accounted
for at trade date.

Cash and short-term deposits

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

Financial assets at Fair Value through Profit and Loss

Any financial asset, which does not meet the criteria for categorization at amortized cost or at fair value through
other comprehensive income, is classified at fair value through profit and loss. Financial assets included at the
fair value through profit and loss category are measured at fair value with all changes recognized in the
statement of profit and loss.

Equity investments

Equity investments in subsidiaries are measured at cost for new investment.

Derecognition of financial assets

A financial asset is primarily derecognized when the rights to receive cash flows from the asset have expired,
or the Company has transferred its rights to receive cash flows from the asset.

ii. Financial liabilities

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

The Company’s financial liabilities include trade payables, borrowings including bank overdrafts and other
payables.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or
expires.

10. Property, plant and equipment

Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at historical
cost less accumulated depreciation less impairment losses. Historical cost includes expenditure that is directly
attributable to the acquisition of the items.

Subsequent costs are included in the asset’s carrying amount or recognized 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
derecognized when replaced. All other repairs and maintenance are charged to profit or loss during the reporting
period in which they are incurred.

Transition to Ind AS

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant
and equipment recognized as at 1 April 2016 measured as per the previous GAAP and use that carrying value as
the deemed cost of the property, plant and equipment.

Depreciation methods, estimated useful lives and residual value

Depreciation on property, plant and equipment is provided on the straight-line method over their estimated useful
lives, as determined by the management. Depreciation is charged on a pro-rata basis for assets purchased / sold
during the year.

The management’s estimates of the useful lives of various assets for computing depreciation are as follows:

The useful lives of the assets continue to be those prescribed under Schedule 3 of the Companies Act, 2013.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each
financial year-end and adjusted prospectively, if appropriate.

11. Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of financial
year which are unpaid. The amounts are unsecured and are usually paid as per the agreed terms. Trade and other
payables are presented as current liabilities unless payment is not due within 12 months after the reporting period.
They are recognized at their fair value.