ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ Barflex Polyfilms Ltd.

2 Significant Accounting Policies

2.1 Basis of preparation of financial statements

These financial statements have been prepared under the historical cost convention, on the accrual basis of accounting in accordance with the Generally
Accepted Accounting Principles {GAAP) in India. Indian GAAP includes mandatory accounting standards as specified under the Companies (Accounting
Standards) Rules. 2006 and presentational requirements of the Companies Act. 2013 and other accounting pronouncements of The Institute of Chartered
Accountants of India.

l iie financial statements have been prepared on an accrual basis and under the historical cost convention, lhe Accounting policies adopted in the
preparation of financial statements are consistent with those followed in the previous year.

a. Current versus non-current classification

An asset is treated as current asset when ii is expected to be realised or intended to be sold or consumed in normal operating cycle or held primarily for the
purpose of trading or expected to be realised within twelve months after the reporting period, or Cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least twelve months after the reporting period, all the other assets arc classified as non current
A liability is treated as current when it is expected to be settled in normal operating cycle or it is held primarily for the purpose of trading or it is due to be
settled within twelve months after the reporting period, or there is no unconditional right to defer the settlement o! the liability for at least twelve- months
alter the reporting period, all the other liabilities are classified as non current.

I). I sc of estimates

The preparation of financial statements in conformity with generally accepted accounting principles in India (GAAP) requires management to make
estimates and assumptions that affect tho reported amounts ot assets and liabilities and the disclosure of contingent liabilities on the date ot the financial
statements and the results of operations during the year. Differences between actual results and estimates are recognised in the year in which the results are
known or materialised. Examples of such estimates are estimated useful life of assets, provision for doubtful debts and retirement benefits, etc. Actual
results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods

c. Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. The
following specific recognition criteria must also be met before revenue is recognized:

Income from Sales:

Revenue from sale of goods is recognized on transfer of all significant risks and rewards of ownership to the customer, which generally coincides with
dispatch against orders from customers in accordance with the contract terms

Sales are slated inclusive of excise duty and net of rebates, trade discounts, sales lax and sales returns.

Interest:

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is
included under the head ‘’other income*’ in the statement of profit and loss.

cl. Property, plant and equipment

Fixed assets are stated at cost of acquisition less accumulated depreciation and / or less accumulated impairment loss, if any. Cost oi acquisition is inclusive
of freight, duties, levies and all other incidental expenditure attributable to bring the assets to its working conditions for their intended use
Depreciation is provided on slraighl line method at the rales which management believes is representative of useful lives of the assets prescribed under
Schedule II of the Companies Act. 2013. except for cylinders which are depreciated over a period of 1 year. Assets costing up Ip Rs.f.000 arc lully
depreciated in the year of acquisition.

Leasehold improvements are amortised over the period of lease, or the useful lives of assets as prescribed in Schedule II to the Companies Act. 2013,
whichever is shorter

Leasehold land is amortised on a straight line basis over the period of lease.

A fixed asset is eliminated from the financial statements on disposal or when no further benefit is expected from its use and disposal.

Losses arising from retirement or gains or losses arising from disposal of fixed assets which are carried at cost are recognised in the Statement pi Profit and

LOSS:

e. Intangible assets

Intangible assets are measured on initial recognition tit cost, following initial recognition, they ate earned at cost less accumulated amortization and
accumulated impairment losses, if any Intangible assets are amortized on a straight line basis over the estimated useful economic life.

Lxpenditlire related to and incurred during development ofsdftwar&fapplieation are included under "Intangible Assets under Development''''. I he same u til
he transferred to the respective intangible assets on completion of software application.

The amortization period and the amortization method are reviewed at each financial year-end. Gains oi losses arising from Jc-rccognition ol an intangible
asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the Statement of Profit
and Loss when the asset is derecognized

g. Inventories

Inventories which comprise raw materials, work-in-progress and finished goods are carried at the lower of cost and not realisable value.

C osi ol inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to then present location and
condition.

In determining the cost. FIFO method is used. In the case of manufactured inventories and work in progress, fixed production overheads are allocated on
the basis ofnorrnal capacity of production facilities.

Net realisable value is Ihe estimated selling price in the ordinary course of business, less the estimated costs ol completion and the estimated costs
necessary to make the sale

h. Impairment of assets

The carrying amounts of assets arc reviewed at cadi reporting date to determine whether there is any indication of impairment. If any such indication
exists, the recoverable amount of the asset is estimated. For assets that are not ready for use, the recoverable amount is estimated at each reporting date
An impairment loss is recognised in Statement ol Protit and Loss whenever the carrying amount of an asset or its cash generating unit exceeds its
recoverable amount. An impairment loss Is reversed inhere has been a change in the estimates used to determine the recoverable amount. An impairment
loss is recorded only 10 the extent that the carrying amount of the assets docs not exceed the carrying amount that would have been determined net ol
depreciation or amortization, if no impairment loss had been recognised

i. Investments

Investments which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are
classified as current investments All other investments are classified as long-term investments.

On initial recognition, all investments arc measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as
brokerage, fees and duties If an investment is acquired, or partly acquired, by die issue ol shares or other securities, the acquisition cost is the lair value ot
the securities issued. II''an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the asset
given up or by reference to the fair value .of the investment acquired, whichever is more clearly evident.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis, l ong-term
investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value ol tire
investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement ot profit and
loss.

j. Foreign currency transactions

Foreign currency transactions are recorded at the rule of exchange prevailing on the dale of the respective transactions. Monetary foreign currency assets
and liabilities remaining unsettled at the balance sheet date arc translated at the rates of exchange prevailing on that dale. Gains losses arising un account
of realization settlement of foreign exchange transactions and on translation of foreign currency assets and liabilities are recognised itt the Statement ol
Profit and Loss. The Company enters into forward exchange contracts to hedge certain foreign currency denominated assets and liabilities. In respect ol
forward contracts, which arc covered under Accounting Standard I AS) 11. ''Effect of Changes in Foreign Exchange Rates'', the difference between spot
rate and forward rate oil the date the forward exchange contract is entered into, is amortised over the tenure of the contract The loreign currency
receivable or payable arising under the forward contract is revalued using the closing rate, and any resultant gam or loss is taken to the Statement ol Protil
and Loss. In respect of forward contracts to hedge its foreign currency risk exposures relating to highly probable transactions, at the balance sheet date,
such forward contracts are mark to market."keeping in view the principle of prudence as enunciated by Accounting Standard I “Disclosure ot Accounting
Policies". A provision (with a corresponding debit to the Statement of profit and loss) is recognised for the overall loss on the portfolio of open forward
contracts; however, if there is an overall profit, it is ignored

k. Retirement and oilier employee benefits

.Short-term employee benefits :

Employee benefits payable wholly within twelve months of receiving employee services are classified as short-term employee benefils. ihese benefits
include salaries and wages, bonus and ex-gratin. The undiscnuittcd amount of short-term employee benefits to be paid in exchange lor employee services is
recognised as an expense as the related service is rendered by employees

Post employment benefit:

Defined contribution plan

A defined contribution plan is a post-cinploymeiit benefit plan under which an entity pay''s specified contributions to a separate entity and has no obligation
to piw any lurilicr amounts t he Company makes specified monthly contributions towards employee provident fund to (invcrnmcni administered piox idem
fund scheme which is a defined contribution plan. The Company''s contribution is recognised as an expense in the Statement ol Profit and Loss during the
period in which the employee renders the related service

Denned Benefit flan

The Company''s gratuity benefit scheme is the defined benefit plan. The Company''s net obligation in respect of a defined benefit pian is calculated by
estimating the amount of future benefit that employees have earned in return for their service ill the current and prior periods: that benefit is discounted to
determine its present value. Any unrecognised pasi service costs and the fair value of any plan assets are deducted. The calculation of ihe Company''s
obligation under plan is performed annually by a qualified actuary using the projected unit credit method.

The Company recognises all actuarial gains and losses arising from defined benefit plans immediately in the Statement of Profit and Loss. All expenses
i elated in defined benefit plans are recognised in employee benefits expense in the Statement of Profit and Loss. When the benefits of a plan are improved,
the portion of the increased benefit related to past service by employees is recognised in Statement of Prolii and Loss on a straight-line basis over Ihe
average period uniil die benefits become vested The Company recognises gains and losses on the curtailment or settlement of a defined benefit plan when
the curtailment or settlement occurs.

l. Tuxes on income

Income-tax expense comprises current tax tie. the amount of tax for the year determined in accordance with the Income-tax Act, 1961) and deterred tax
charge or credit (reflecting Ihe tax effects of timing differences between Ihe accounting income and taxable income for the year). I he deferred tax charge
or credit and the corresponding deferred lax liabililies or assets are recognised using the tax rates dial have been enacted or substantively enacted as of the
balance sheet date Deferred tax assets are iccogmsed Only to the extent there is reasonable certainty of realization. However, where there is unabsorbed
depreciation or carried forward loss under taxation law s. deferred tax assets are recognised only if there is virtual certainty of realisation of such assets
Deferred tux assels are reviewed ai each balance sheet date and written down or written up to relied the amount that is reasonably, virtually certain (as the
ease may be) to be realised

Deferred lax assets or liabilities arising due to liming differences, originating during ihe tax holiday period and reversing after the tax holiday period are
recognised in ihe period In which the timing difference originate.

Minimum -Alternative Tax (‘MAT") under the provisions of the-Income-tax Act. 1961 is recognised as current tax in the Statement of Profit and Loss. The
credit available under the Act in respect of MAT paid is recognised as an asset only when and to ihe extent there is convincing evidence that the company
will pay normal income tax during the period for which the MAT credit can be carried forward for set-off against the normal tax liability MAT credit
recognised as an asset is reviewed ai each balance sheet date and written down to the extent the aforesaid com incing evidence no longer exists.

m. Karning/lnss per share

The Company reports basic and diluted earnings (loss) per equity share in accordance with Accounting Standard 2(1. Earnings per Share. The basic and
dilutive earnings 11 loss) per share is computed by dividing the net profit (loss) attributable to equity shareholders for the period i year by the weighted
average number of equities shares outstanding during the period / year. Dilutive earnings per share is computed and disclosed after adjusting the effects of
all dilutive potential equity shares, if any, except when the results will he anti-dilutivc.

n. Operating Leases

Leases where the lessor ellectively retains substantially all the risks and benefits of ownership of Ihe leased lerm are classified as operating leases.
Operating lease charges are recognised as an expense in the Statement of Profit and Loss on a straight-line basis over the lease term, considering the
renewal lerms. if annronriatc

a) Basis of preparation

These financial statements have been prepared under the historical cost convention, on the accrual basis of accounting in accordance with the
Generally Accepted Accounting Principles (GAAP) in India. Indian GAAP includes mandatory accounting standards as specified under the Companies
(Accounting Standards) Rules, 2006 and presentational requirements of the Companies Act, 2013 and other accounting pronouncements of The
Institute of Chartered Accountants of India.

b) Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles in India (GAAP) requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the
financial statements and the results of operations during the year. Differences between actual results and estimates are recognised in the year in
which the results are known or materialised. Examples of such estimates are estimated useful life ol assets, provision for doubtful debts and
retirement benefits, etc. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current
and future periods.

c) Revenue Recognition

Revenue from sale of goods is recognized on transfer of all significant risks and rewards of ownership to the customer, which generally coincides with
dispatch against orders from customers in accordance with the contract terms.

Sales are stated inclusive of excise duty and net of rebates, trade discounts, sales tax and sales returns.

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

d) Current and non-current classification

All assets and liabilities are classified into current and non-current
Assets

An asset is classified as current when it satisfies any of the following criteria:-

a. It is expected to be realized in, oris intended for sale or consumption in, the company''s normal operating cycle.

b. It is held for the purpose of being traded.

c. It is expected to be realized within 12 months after the reporting period.

d. It is cash or cash equivalents unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current portion of non-financial assets.

All other assets are classified as non-current

Liabilities

A liability is classified as current when it satisfies any of the following criteria:-

a. It is expected to be settled in the company''s normal operating cycle.

b. It is held primarily for the purpose of being traded.

c. It is due to be settled within 12 months from the reporting period

d. The company does not have an unconditional right to defer settlement of liability at least 12 months after the reporting date. I ei ms of the liability
that could at the option of the counterparty, result in its settlement by the issue of equity instruments do not atfect its classification.

Current liabilities include the current portion of non-financial liabilities.

Ail other liabilities are classified as non-current.

Operating cycle

Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents.

e) Fixed assets and depreciation

Fixed assets are stated at cost of acquisition less accumulated depreciation and / or less accumulated impairment loss, if any. Cost of acquisition is
inclusive of freight, duties, levies and all other incidental expenditure attributable to bring the assets to its working conditions for their intended use.
Depreciation is provided on straight line method at the rates which management believes is representative of useful lives of the assets prescribed
under Schedule II of the Companies Act, 2013, except for cylinders which are depreciated over a period of 1 year. Assets costing up to Rs.5,000 are
fully depreciated in the year of acquisition.

Leasehold improvements are amortised over the period of lease, or the useful lives of assets as prescribed in Schedule II to the Companies Act, 2013,
whichever is shorter.

Leasehold land is amortised on a straight line basis over the period of lease.

A fixed asset is eliminated from the financial statements on disposal or when no further benefit is expected from its use and disposal.

Losses arising from retirement or gains or losses arising from disposal of fixed assets which are carried at cost are recognised in the Statement of
Profit and Loss.

f) Inventories

Inventories which comprise raw materials, work-in-progress and finished goods are carried at the lower of cost and net realisable value.

Cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location
and condition.

In determining the cost, FIFO method is used. In the case of manufactured inventories and work in progress, fixed production overheads are allocated
on the basis of normal capacity of production facilities.

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.

The net realisable value of work-in-progress is determined with reference to the selling prices of related finished products. Raw materials and other
supplies held for use in the production of finished products are not written down below cost except in cases where material prices have declined and
it is estimated that the cost of the finished products will exceed their net realisable value.

The comparison of cost and net realisable value is made on an item-by-item basis.

g) Foreign currency transactions

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the respective transactions. Monetary foreign currency
assets and liabilities remaining unsettled at the balance sheet date are translated at the rates of exchange prevailing on that date. Gains / losses
arising on account of realization / settlement of foreign exchange transactions and on translation of foreign currency assets and liabilities are
recognised in the Statement of Profit and Loss.

The Company enters into forward exchange contracts to hedge certain foreign currency denominated assets and liabilities. In respect of forward
contracts, which are covered under Accounting Standard (AS) 11, ''Effect of Changes in Foreign Exchange Rates'', the difference between spot rate and
forward rate on the date the forward exchange contract is entered into, is amortised over the tenure of the contract. The foreign currency receivable
or payable arising under the forward contract is revalued using the closing rate, and any resultant gain or loss is taken to the Statement of Profit and
Loss. In respect of forward contracts to hedge its foreign currency risk exposures relating to highly probable transactions, at the balance sheet date,
such forward contracts are mark to market, keeping in view the principle of prudence as enunciated by Accounting Standard 1 "Disclosure of
Accounting Policies". A provision (with a corresponding debit to the Statement of profit and loss) is recognised for the overall loss on the portfolio of
open forward contracts; however, if there is an overall profit, it is ignored

h) Employee benefits
Short-term employee benefits

Employee benefits payable wholly within twelve months of receiving employee services are classified as short-term employee benefits. These
benefits include salaries and wages, bonus and ex-gratia. The undiscounted amount of short-term employee benefits to be paid in exchange for
employee services is recognised as an expense as the related service is rendered by employees.

Post employment benefit

Defined contribution plan

A defined contribution plan is a post-employment benefit plan under which an entity pays specified contributions to a separate entity and has no
obligation to pay any further amounts. The Company makes specified monthly contributions towards employee provident fund to Government
administered provident fund scheme which is a defined contribution plan. The Company''s contribution is recognised as an expense in the Statement
of Profit and Loss during the period in which the employee renders the related service.

Defined Benefit Plan

The Company''s gratuity benefit scheme is the defined benefit plan. The Company''s net obligation in respect of a defined benefit plan is calculated by
estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is
discounted to determine its present value. Any unrecognised past service costs and the fair value of any plan assets are deducted. The calculation of
the Company''s obligation under plan is performed annually by a qualified actuary using the projected unit credit method.

The Company recognises ail actuarial gains and losses arising from defined benefit plans immediately in the Statement of Profit and Loss. All expenses
related to defined benefit plans are recognised in employee benefits expense in the Statement of Profit and Loss. When the benefits of a plan are
improved, the portion of the increased benefit related to past service by employees

is recognised in Statement of Profit and Loss on a straight-line basis over the average period until the benefits become vested. The Company
recognises gains and losses on the curtailment or settlement of a defined benefit plan when the curtailment or settlement occurs.

i) Taxation

Income-tax expense comprises current tax (i.e. the amount of tax for the year determined in accordance with the Income-tax Act, 1961) and deferred
tax charge or credit (reflecting the tax effects of timing differences between the accounting income and taxable income for the year). The deferred tax
charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively
enacted as of the balance sheet date. Deferred taxassets are recognised only to the extent there is reasonable certainty of realization. However, where
there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there is virtual certainty of
realisation of such assets. Deferred tax assets are reviewed at each balance sheet date and written down or written up to reflect the amount that is
reasonably/virtually certain (as the case may be) to be realised.

Deferred tax assets or liabilities arising due to timing differences, originating during the tax holiday period and reversing after the tax holiday period
are recognised in the period in which the timing difference originate.

Minimum Alternative Tax (''MAT'') under the provisions of the Income-tax Act, 1961 is recognised as current tax in the Statement of Profit and Loss.
The credit available under the Act in respect of MAT paid 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 period for which the MAT credit can be carried forward for set-off against the normal tax liability.
MAT credit recognised as an asset is reviewed at each balance sheet date and written down to the extent the aforesaid convincing evidence no longer

exists.

j) Operating leases

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term areclassified as operating leases.
Operating lease charges are recognised as an expense in the Statement of Profit and Loss on a straight-line basis over the lease term, considering the
renewal terms, if appropriate.

k) Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets to the
extent that they relate to the period till such assets are ready to be put to use. A qualifying asset is one that necessarily takes substantial period of
time to get ready for its intended use. All other borrowing costs are charged to Statement of profit and loss.

l) Earnings per share

The Company reports basic and diluted earnings / (loss) per equity share in accordance with Accounting Standard 20, Earnings per Share. The basic
and dilutive earnings / (loss) per share is computed by dividing the net profit / (loss) attributable to equity shareholders for the period / year by the
weighted average number of equities shares outstanding during the period / year. Dilutive earnings per share is computed and disclosed after
adjusting the effects of all dilutive potential equity shares, if any, except when the results will be anti-dilutive.

m) Impairment of assets

The carrying amounts of assets are reviewed at each reporting date to determine whether there is any indication of impairment If any such
indication exists, the recoverable amount of the asset is estimated. For assets that are not ready for use, the recoverable amount is estimated at each
reporting date. An impairment loss is recognised in Statement of Profit and Loss whenever the carrying amount of an asset or its cash generating unit
exceeds its recoverable amount An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable
amount. An impairment loss is recorded only to the extent that the carrying amount of the assets does not exceed the carrying amount that would
have been determined net of depreciation or amortization, if no impairment loss had been recognised.

Data Not Good