2.1 Basis of Accounting:

The Financial Statements are prepared in accordance with the historical cost convention.

2.2 Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

2.3 Fixed Assets

Fixed assets includes only tangible asssets and are stated at cost less accumulated depreciation. Cost of acquisition or construction is inclusive of freight, duties, taxes, incidental expenses and financing cost of borrowed funds relating to acquisition of fixed assets up to the date of commissioning/commercial exploitation of assets.

2.4 Depreciation / Amortisation

Depreciation is provided on Straight Line Method (SLM) based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

2.5 Investments

An investment in the shares of subsidiary Companies in India is stated at cost.

2.6 Valuation of Inventories:

Trading goods are valued at cost or realizable value whichever is lower.

2.7 Foreign Exchange Fluctuations :

Transactions in Foreign Currency are recorded at the exchange rate prevailing on the date of transaction. The realised gains and losses on foreign exchange transactions are recognised in the Profit and Loss account.

2.8 Revenue recognition:

Sales are recognised when goods are supplied in accordance with the terms of sale and are recorded net of trade discounts, rebates and sales tax. Income from services is accrued as per terms of relevant agreement.

Income and Expenditure are accounted on an accrual basis.

Interest income is recognised on a time proporation basis taking into account the amount outstanding and the applicable interest rate. Interest income is included unde rthe head "Other Income" in the statement of profit and loss.

2.9 Retirement Benefits:

I. Contribution to defined contribution schemes such as Provident Fund and Employer's Pension Scheme is charged to the Profit and Loss account.

ii. Provision for the employees' Gratuity is based on actuarial valuation carried out at the end of the year. Actuarial gains or losses arising from such valuation are charged to revenue in the year in which they arise.

2.10 Taxation :

Provision for current taxation is made in accordance with the relevant Income Tax provisions applicable. Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods is accounted for using the tax rates and laws that has been enacted as of the Balance Sheet date.

Deferred Tax Assets are recognized on unabsorbed depreciation and carried forward of losses based on virtual certainty that sufficient future taxable income will be available against which such Deferred Tax Assets can be realized.

2.11 Impairment of Assets:

The carrying amount of assets is reviewed periodically for any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

2.12 Borrowing Costs

Interest and other costs in connection with the borrowing of the funds to the extent related / attributed to the acquisition / construction of qualifying fixed assets are capitalised upto the date when such assets are ready for its intended use and other borrowing costs are charged to the Profit & Loss Account.

2.13 Provisions for Contingencies:

A provision is recognised when:

I. The company has a present obligation as a result of a past event;

ii. It is probable that an outflow of resources embodying economic benefits which will be required to settle the obligation; and

iii. A reliable estimate can be made of the amount of the obligation

2.14 Segment Reporting

The Company prepares its segment information if any, in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

2.15 Earning per Share

In determining earnings per share, the Company considers the net profit/ (Loss) after tax and includes the post tax effect of any extraordinary items. The number of shares used in computing basic earnings per share is weighted average number of shares outstanding during the period.

For the purpose of computing diluted earnings per share, the net profit /(Loss) attributable to equity shareholders and the weighted average number of shares outstanding are adjusted for the effects of all dilutive potential equity shares from exercise of options on un- issued share capital.

2.16 Preoperative expenses, pending allocation

Expenses incurred by the Company on the projects under implementation and have not yet commenced operations are considered as preoperative expenses to be capitalised / amortised upon commencement of operations by the said projects.