Note 1: Significant Accounting policies

1.1 Statement of Compliance

These financial statements are prepared in accordance with the Indian Accounting
Standards (referred to as 'Ind AS') prescribed under section 133 of the Companies Act,
2013, read with the Companies (Indian Accounting Standards) Rules, as amended from
time to time. The Ind AS are prescribed under Section 133 of the Companies Act, 2013
(the Act) read with Rule 3 Companies (Indian Accounting Standards) Rules, 2015 and
Companies (Indian Accounting Standards) Amendment Rules, 2016.

The accounting policies have been consistently applied except where a newly-issued
accounting standard is initially adopted or a revision to existing accounting standards
required a change in the accounting policies hitherto in use.

1.2 Inventories

The company has held shares as stock in trade and the same are valued at lower of
cost or market value.

1.3 Taxes on Income

Tax expense for the period, comprising current tax and deferred tax, are included in
the determination of the net profit or loss for the period. Current tax is measured at
the amount expected to be paid to the tax authorities in accordance with the Income
Tax Act, 1961.

Deferred tax is recognized on temporary differences between the carrying amounts of
assets and liabilities in the separate financial statements and the corresponding tax
bases used in the computation of taxable profit. Deferred tax liabilities are generally
recognized for all taxable temporary differences. Deferred tax assets are generally
recognized for all deductible temporary differences to the extent that it is probable
that taxable profits will be available against which those deductible temporary
differences can be utilized.

The carrying amount of deferred tax assets is reviewed at the end of each reporting
period and reduced to the extent that it is no longer probable that sufficient taxable
profits will be available to allow all or part of the asset to be recovered. Deferred tax
liabilities and assets are measured at the tax rates that are expected to apply in the
period in which the liability is settled or the asset realized, based on tax rates (and tax
laws) that have been enacted or substantively enacted by the end of the reporting
period.

Current and deferred tax are recognized in profit or loss, except when they relate to
items that are recognized in other comprehensive income or directly in equity, in
which case, the current and deferred tax are also recognized in other comprehensive
income or directly in equity respectively.

1.4 Property, plant & equipment:

All Property, Plant & Equipment's are stated at cost of acquisition, less accumulated
depreciation and accumulated impairment losses, if any. Direct costs are capitalized
until the assets are ready for use and include freight, duties, taxes and expenses
incidental to acquisition and installation.

Subsequent expenditures related to an item of Property, Plant & Equipment are added
to its carrying value only when it is probable that the future economic benefits from
the asset will flow to the Company and cost can be reliably measured.

Losses arising from the retirement of, and gains or losses arising from disposal of
Property, Plant and Equipment are recognized in the Statement of Profit and Loss.

Depreciation is provided on a pro-rata basis on the straight line method ('SLM') over
the estimated useful lives of the assets specified in Schedule II of the Companies Act,
2013.

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 April 1, 2016 measured as
per the previous GAAP and use that carrying value as the deemed cost of the property,
plant and equipment.

1.5 Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable and
recognized when it is probable that the economic benefits associated with the
transaction will flow to the entity.

1.6 Financial Instruments

(A) Financial Assets

Recognition and measurement

Financial assets are recognised when the Company becomes a party to the
contractual provisions of the instrument. On initial recognition, a financial asset
is recognised at fair value, in case of financial assets which are recognised at fair
value through profit and loss (FVTPL), its transaction cost are recognised in the
statement of profit and loss. In other cases, the transaction cost are attributed
to the acquisition value of the financial asset.

Financial assets are subsequently classified as measured at

• amortised cost

• fair value through profit and loss (FVTPL)

• fair value through other comprehensive income (FVOCI)

(a) Measured at amortised cost: Financial assets that are held within a business

model whose objective is to hold financial assets in order to collect
contractual cash flows that are solely payments of principal and interest, are
subsequently measured at amortised cost using the effective interest rate
('EIR') method less impairment, if any. The amortisation of EIR and loss
arising from impairment, if any, is recognised in the Statement of Profit and
Loss.

(b) Measured at fair value through other comprehensive income: Financial
assets that are held within a business model whose objective is achieved by
both, selling financial assets and collecting contractual cash flows that are
solely payments of principal and interest, are subsequently measured at fair
value through other comprehensive income. Fair value movements are
recognized in the other comprehensive income (OCI). Interest income
measured using the EIR method and impairment losses, if any are
recognised in the Statement of Profit and Loss. On de-recognition,
cumulative gain or loss previously recognised in OCI is reclassified from the
equity to 'other income' in the Statement of Profit and Loss.

(c) Measured at fair value through profit or loss: A financial asset not classified
as either amortised cost or FVOCI, is classified as FVTPL. Such financial assets
are measured at fair value with all changes in fair value, including interest
income and dividend income if any, recognised as 'other income' in the
Statement of Profit and Loss

Financial assets are not reclassified subsequent to their recognition, except if
and in the period the Company changes its business model for managing
financial assets.

Trade Receivables and Loans:

Trade receivables and loans are initially recognised at fair value. Subsequently,
these assets are held at amortised cost, using the effective interest rate (EIR)
method net of any expected credit losses. The EIR is the rate that discounts
estimated future cash income through the expected life of financial instrument.

Equity Instruments:

All investments in equity instruments classified under financial assets are
subsequently measured at fair value. Equity instruments which are held for
trading are measured at FVTPL. For all other equity instruments, the Company
may, on initial recognition, irrevocably elect to measure the same either at
FVOCI or FVTPL. The Company makes such election on an instrument-by¬
instrument basis. Fair value changes on an equity instrument shall be
recognised as 'other income' in the Statement of Profit and Loss unless the
Company has elected to measure such instrument at FVOCI. Fair value changes
excluding dividends, on an equity instrument measured at FVOCI are recognised
in OCI. Amounts recognised in OCI are not subsequently reclassified to the

Statement of Profit and Loss. Dividend income on the investments in equity
instruments are recognised as 'other income' in the Statement of Profit and
Loss.

Market value of shares delisted from the stock exchange as on balance sheet
date is taken as Nil.

De-recognition

The Company derecognises a financial asset when the contractual rights to the
cash flows from the financial asset expire, or it transfers the contractual rights
to receive the cash flows from the asset.

Impairment of Financial Assets

Expected credit losses are recognized for all financial assets subsequent to
initial recognition other than financials assets in FVTPL category. For financial
assets other than trade receivables, as per Ind AS 109, the Company recognises
12 month expected credit losses for all originated or acquired financial assets if
at the reporting date the credit risk of the financial asset has not increased
significantly since its initial recognition. The expected credit losses are
measured as lifetime expected credit losses if the credit risk on financial asset
increases significantly since its initial recognition. The Company's trade
receivables do not contain significant financing component and loss allowance
on trade receivables is measured at an amount equal to life time expected
losses i.e. expected cash shortfall. The impairment losses and reversals are
recognised in Statement of Profit and Loss, if any.

(B) Financial Liabilities:

Initial recognition and measurement

Financial liabilities are recognised when the Company becomes a party to the
contractual provisions of the instrument. Financial liabilities are initially
measured at the amortised cost unless at initial recognition, they are classified
as fair value through profit and loss. In case of trade payables, they are initially
recognised at fair value and subsequently, these liabilities are held at amortised
cost, using the effective interest method.

Subsequent measurement

Financial liabilities are subsequently measured at amortised cost using the EIR
method. Financial liabilities carried at fair value through profit or losses are
measured at fair value with all changes in fair value recognised in the Statement
of Profit and Loss.

De-recognition

A financial liability is derecognised when the obligation specified in the contract
is discharged, cancelled or expires.

1.7 Employee Benefits

The Company follows the policy of accounting for the same only on crystallization of
the liability.

1.8 Earnings Per Share

Basic Earnings per share is computed by dividing the net profit attributable to equity
shareholders by the weighted average number of equity shares outstanding during the
period.