1 SIGNIFICANT ACCOUNTING POLICIES:

(A) Basis of Accounting:

Financial statements have been prepared by the management of the company in consultation with the Resolution Professional of the

Company. The financial statements are prepared as per historical cost convention and on going concern basis and comply with the

applicable accounting standards specified under section 133 of the Companies Act, 2013 read with Rules 7 of the Companies(Accounts)

Rules 2014.

(B) Property, Plant and Equipment:

i) Property, Plant and Equipments are recorded at cost of acquisition / construction less accumulated depreciation & impairment
loss, if any, except for land which has been shown at revalued amount. Cost comprises of the purchase price and any attributable
cost of bringing the assets to its working condition for its intended use, but excluding GST credit availed.

ii) In respect of fixed assets (other than capital work-in-progress) acquired during the year, depreciation is charged on a Straight
Line Basis so as to write off the cost of the assets over the useful lives. In respect of fixed assets acquired prior to April 1,2014,
the carrying amount as on April 1,2014 is depreciated over the remaining useful life. The useful life of the fixed assets has been
adopted as prescribed under the Companies Act, 2013.

(C) Investments :

(i) Investments are Long-term, unless stated otherwise and are stated at cost except where there is diminution in value other than
temporary, in which case a provision is made to the carrying value to recognise the diminution.

ii) In accordance with Accounting Standard - 23 ' Accounting for Investments in Associates in Consolidated Financial Statements',
issued by the Institute of Chartered Accountants of India, the Company is required to furnish Consolidated Financial Statements
alongwith the accounts of M/s Halol Industries Environment & Infrastructure Ltd. where the shareholding of the company is
more than 20% as at Balance Sheet date.

However, considering the long term restrictions imposed by M/s Halol Industries Environment & Infrastructure Ltd. on transfer
of equity shares as well as the restriction on declarations on dividend, the company falls within the exemptions as stipulated in
the AS-23. Consequently the Company is not required to prepare Consolidated Financial Statements. Therefore, the Company
has not prepared Consolidated Financial Statement which is in line within AS-23.

(D) Inventories:

All Inventories are valued at lower of cost and net realisable value.

i) Raw materials, Packing materials, Stores and consumables are valued at cost using First -in-First Out method. The cost of Raw
materials, stores and consumables includes cost of purchases after adjusting for GST, direct expenses and other cost incurred in
bringing the inventories to their present location and condition. : Cost is determined on moving weighted average

ii) Work in Progress goods has been identified as such depending upon stage of completion of finished goods technically
determined by the management. Work in Progress goods are valued at raw materials cost as calculated above including
appropriate proportion of cost of conversion to the extent of stage of progress and certified by the management.

iii) Finished goods are valued at lower of cost or net realisable value. Finished goods are valued at cost of production, including
appropriate proportion of allocable cost.

iv) Scrap is valued at net Realisable Value.

(E) Revenue from Operations:

i) Sale of products are recognised when risk and rewards of ownership of the products are passed on to the customers, which is
generally on dispatch of goods. Sales are net of Sales return and Goods & Service Tax.

ii) Export benefits available under prevalent schemes are accounted on entitlement basis.

iii) Service Income is recognised on completion of job work and are shown net of claims.

(F) Foreign Currency Transactions :

i) 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.

ii) Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated
at year end rates.

iii) The difference in translation of monetary assets and liabilities and realized gains and losses on foreign exchange transactions are
recognised in the Profit and Loss Account.

(G) Employee Benefits:

(a) Short term employee benefits

All employee Benefits payable wholly within twelve months of rendering the service are classified as short term employee
benefits. Benefits such as Salaries, wages, and short term compensated absences etc. is recognised in the period in which the
employee renders the related service.

(b) Post Employment Benefits:

i. Defined Contribution Plans :

Define contribution plans are post employment benefit plans under which the company pays fixed contributions into
separate entities (fund) or to financial institutions or state managed benefit schemes. The Company operates defined
contribution plans pertaining to Provident Fund, Employees state Insurance, Pension Fund Scheme for eligible employees.
The Company contribution to defined contribution plans are recognised in the profit and loss account in the financial year
to which they relate.

ii. Defined Benefit Plans:

The gratuity liabilities are funded partly with the Life Insurance Corporation of India with a recognized fund, which is
administered by the trustees. The Company provides for gratuity liability payable on retirement on the basis of Actuarial
Valuation as at the year end and the same is charged to profit and loss account under head Employees Cost.

The Company provides for accumulated leave liability payable on retirement on the basis of Actuarial Valuation as at the
year end and the same is charged to profit and loss account under head Employees Cost.

(H) Borrowing Cost:

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

(I) Earnings per share :

Basic and diluted earnings per share are computed by dividing the net profit attributable to equity shareholders for the year, by the
weighted average number of equity shares outstanding during the year. (Including diluted potential equity shares in case of diluted
EPS)

(J) Taxes on Income:

i) Provision for taxation is made on the basis of the estimated taxable income for the current Accounting period in accordance with
provision of the Income Tax Act, 1961.

ii) The benefit of credit against the payment made towards MAT for the earlier years is available in accordance with the provisions
of section 115J (AA) of income tax act 1961 over a period of subsequent 15 assessment years and it is recognised to the extent
of deferred tax liability in view of the certainty involved of its realisation against reversal of deferred tax liability.

iii) In accordance with Accounting Standard - 22 ' Accounting for Taxes on Income', issued by the Institute of Chartered Accountants
of India, the Deferred Tax for timing differences between the book profit and tax profit for the year is accounted for using the tax
rates and laws that have been enacted or substantively enacted as of the balance sheet date.

iv) Deferred tax assets arising from temporary timing differences are recognised to the extent there is reasonable certainty that
the assets will be realized in future. In situations, where the company has un absorbed depreciation and carry forward losses,
deferred tax assets are recognised only if there is virtual certainty supported by convincing evidences, that the same can be
realised against future taxable profits.

(K) Segment Reporting :

There is no separate reportable primary segment as per Accounting Standards 17, as most of the operations are related to only one
Segment viz. Tyres & Tubes.

(L) Impairment of Assets :

A Property, Plant and Equipment is treated as impaired when the carrying cost of assets exceeds its recoverable value. An Impairment
Loss is charged to the Profit and Loss Account 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.