PROVISIONS AND CONTIGENT LIABILTY

Provisions for legal claims, warranties, discounts and returns are recognized when the Company has a present legal or constructive obligation as a
result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.
Provisions are not recognized forfuture operating losses

Where thereare a number of similar obligations,the likelihood that an outflow will be required in settlement is determined by considering thedass
of obligations as a whole. A provision is recognized even if the likelihood of an outflow with respect to any one item included in the same class
obligations may besmall.

Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the
end of the reporting period.The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the
time value of money and the risksspecificto the liability.The increase in the provision due to the passageoftime is recognized as interest expense.

xvii. CONTINGENT LIABILITY

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an
outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision
or disclosure is made.

xviii. CONTINGENT ASSETS

Contingent assets usually arise from unplanned or other unexpected events that give rise to the possibility of an inflow of economic benefits.
Contingent Assets are not recognized though are disclosed, where an inflow of economic benefits is probable.

xix. REVENUE RECOGNITION
Sale of goods

Revenue is measured at thefair value of the consideration received or receivable. Amounts disclosed as revenue is reduced for customer discounts,
rebates granted, other similar allowances, goods and services tax (GST) and duties collected on behalf of third parties.

Revenue is measured based on transaction price, which is the fair value of the consideration received or receivable,stated net of discounts,returns
and value added tax.Transaction price is recognized based on the price specified in the contract, net of the estimated sales incentives/ discounts.
Accumulated experience is used to estimateand provide forthediscounts/rightof return,using the expected value method.

A refund liability is recognized for expected returns in relation to sales made corresponding assets are recognized for the products expected to be
returned.

In respect of sale of goods and services where the company participates in tenders, the control of the goods is transferred on dispatch and revenue
is recognized in accordance with the terms of the tender. For contracts accepted through tendering process and where separate warranty terms are
prescribed,these obligations are not deemed to beseparate performance obligations and therefore estimated and included in the total costs ofthe
products.Where required,amounts are recognized separately accordingly in line with IND AS 37 - Provisions,Contingent Liabilities and Contingent
Assets.

Export benefit duty drawback

Incomes in respect ofduty drawbackin respect of exports madeduring the yearare accounted on accrual basis
Interest and dividend income

Interest income is recognized in statement of profit and loss using effective interest method. Dividend income is recognized when the Company's
right to receive dividend is established.

Claims

Insurance daimsare accounted on acceptance basis.AII other claims/entitlementsare accounted on the merits of each caseor on realization.

xx. RETIREMENT AND OTHER EMPLOYEE BENEFITS
Short term employee benefits

Liabilities for salaries, wages and performance incentives including non- monetary benefits that are expected to be settled wholly within twelve
months after the end ofthe period in which the employees renderthe related service are recognized in respect of employees' services up to theend
ofthe reporting period and are measured atthe amounts expected to be paid when the liabilities are settled.The liabilities are presented as current
employee benefits obligations in the Balance Sheet.

Long term employee benefits
Defined contribution plans

The Company has Defined Contribution Plansfor its employees such as Provident Fund, Employee’s State Insurance,etc.and contribution to these
plans are charged to the Statement of Profit and Loss as incurred,as the Company has nofurther obligation beyond making the contributions.

Defined benefit plans

Gratuity: The liability or asset recognized in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined
benefit obligation at the end of the reporting period less the fair value of plan assets.The defined benefit obligation is calculated annually by
actuaries using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market
yieldsat the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan
assets.This cost is included in employee benefit expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in
which they occur, directly in other comprehensive. They are included in retained earnings in the statement of changes in equity and in the
balance sheet.

Changes in present value ofthe defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in profit
or loss as past service cost.

xxi. LEASES

Comoanvasa lessee

The Company's lease asset classes primarily consistof leases for Land.The Company assesses whethera contract is or contains a lease,at inception
of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses
whether:

(i) the contract involves the use of an identified asset

(ii) the Company has substantially all ofthe economic benefits from use ofthe asset through the period ofthe lease and

(iii) the Company has the right to direct the useof the asset.

At the date of commencement ofthe lease, the Company recognises a right-of-use asset ("ROU") and a corresponding lease liability for all lease
arrangements in which it is a lessee, except for leases with a term of twelve months or less (short term leases) and leases of low value assets. For
these short term and leases of low value assets, the Company recognises the lease payments as an operating expense on a straight line basis over
the term ofthe lease.

The right-of-use assets are initially recognised at cost, which comprises the initial amount ofthe lease liability adjusted for any lease payments
made at or prior to the commencement date ofthe lease plus any initial direct costs less any lease incentives.They are subsequently measured at
cost less accumulated depreciation and impairment losses, if any. Right-of-use assets are depreciated from the commencement date on a
straight-line basis overthe shorter of the lease term and useful life of the underlying asset.

The lease liability is initially measured at the present value ofthe future lease payments.The lease payments are discounted using the interest
rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates.The lease liability is subsequently remeasured by
increasing the carrying amount to reflect interest on the lease liability,reducing the carrying amount to reflect the lease payments made.

A lease liability is remeasured upon the occurrence of certain events such as a change in the lease term or a change in an index or rate used to
determine lease payments.The remeasurement normally also adjusts the leased assets.

Lease liability and ROU asset have been separately presented In the Balance Sheet and lease payments have been classified as financing cash
flows.

Finance Lease

Leases which effectively transfer to the lessee substantially all the risks and benefits incidental to ownership ofthe leased item are classified and
accounted for as finance lease. Lease rental receipts are apportioned between the finance income and capital repayment based on the implicit
rate of return.Contingent rents are recognized as revenue in the period in which they are earned.

Operating Lease

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases.
Rental income from operating leases is recognized on a straight-line basis over the term of the relevant lease except where scheduled increasein
rent compensates theCompany with expected inflationary costs.

xxii. OFFSETTING FINANCIAL INSTRUMENTS

Financial assets and liabilities are offset and the net amount reported in the balance sheet where there is a legally enforceable right to offset the
recognizedamountsand there isan intention to settleona net basis,or realise theassetand settle the liability simultaneously.

xxiii. EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average
number of equity shares outstandingduringthe year.

For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted
average number ofshares outstanding during the period are adjusted forthe effects of diluted potential equity shares.

xxiv. SEGMENT REPORTING

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (CODM).The
CODM.who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing
Director and Finance Director of theCompany.

The Company is engaged in the business of manufacturing welding consumables,copper coated wires, flux cored wiresand welding fluxes and is
organizationally managed in two units - one in Maharashtra and one in West Bengal.The Company's business comprises of only one segment.lt
has customers in India as well as outside india.Thus, the Company has only one business segment but different geographical reporting segment
i.e.,Domesticand International.

XXV. DIVIDENDTOEQUITYSHAREHOLDERS

Dividend to equity shareholders is recognized as a liability and deducted from shareholders' equity, in the period in which the dividends are
approved by the equity shareholders in the general meeting.

xxvi. STATEMENT OF CASH FLOWS

Cash flows are reported using the indirect method whereby profit/ioss is adjusted for the effects of transactions of non-cash nature and any
deferrals or accruals of past or future cash receipts or payments.The cash flows from operating, investing and financing activities of the Company
are segregated based on theavailable information.

xxvii. CONTRIBUTED EQUITY

Equity shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction,net oftax,from the proceeds.

2. SIGNIFICANT JUDGEMENTS AND KEY SOURCES OF ESTIMATION IN APPLYING ACCOUNTING POLICIES

Estimates and judgments are continually evaluated.They are based on historical experience and other factors, including expectations of future
events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances. Information about
Significant judgments and Key sources of estimation made in applying accounting policies that havethe most significant effects on theamounts
recognized in thefinancial statements is included in thefollowing notes:

• Recognition of Deferred Tax Assets: The extent to which deferred tax assets can be recognized is based on an assessment of the
probability of the Company's future taxable income against which the deferred tax assets can be utilized. In addition,significant judgment
is required in assessing the impact ofany legal or economic limits.

• Classification of Leases: The Company has exercised judgement in determining the lease term as the noncancellable term of the
lease, together with the impact of options to extend or terminate the lease if it is reasonably certain to be exercised. Where the rate implicit
in the lease is not readily available, an incremental borrowing rate is applied.This incremental borrowing rate reflects the rate of interest
that the lessee would have to pay to borrow over a similar term, with a similar security, the funds necessary to obtain an asset of a similar
nature and value to the right of-use asset in a similar economic environment. Determination of the incremental borrowing rate requires
estimation."

• Defined Benefit Obligation fDBO): Employee benefit obligations are measured on the basis of actuarial assumptions which include
mortality and withdrawal rates as well as assumptions concerning future developments in discount rates.medicalcosttrends,anticipation
of future salary increases and the inflation rate. The Company considers that the assumptions used to measure its obligations are
appropriate.However,any changes intheseassumptions may havea material impact on the resulting calculations.

• Provisions and Contingencies: The assessments undertaken in recognising provisions and contingencies have been made in

accordance with Indian Accounting Standards (Ind AS) 37,'Provisions,Contingent Liabilities and Contingent Assets'.The evaluation of the
likelihood of the contingent events is applied best judgment by management regarding the probability of exposure to potential loss.

• Impairment of Financial Assets: The Company reviews its carrying value of investments carried at amortized cost annually, or more
frequently when there is indication of impairment. If recoverable amount is less than its carrying amount,the impairment loss is accounted
for.

• Allowances for Doubtful Debts:The Company makes allowances for doubtful debts through appropriate estimations of irrecoverable
amount.The identification of doubtful debts requires use of judgment and estimates. Where the expectation is different from the original
estimate, such difference will impact the carrying value of the trade and other receivables and doubtful debts expenses in the period in
which such estimate has been changed.

• Fair value measurement of financial Instruments: When the fair values of financial assets and financial liabilities recorded in the balance
sheet cannot be measured based on quoted prices in active markets,their fair value is measured using valuation techniques including the
Discounted Cash Flow model.The input to these models are taken from observable markets where possible, but where this not feasible, a
degree of judgments' is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk,credit riskand
volatility.