2. Material Accounting Policies information:

(1) Basis of preparation:

(a) These standalone financial statements are prepared to comply in all material aspects with Indian Accounting
Standards (the "Ind AS") notified under section 133 of the Companies Act, 2013 (the Act) read with Companies
(Indian Accounting Standards) Rules, 2015; and other relevant provisions of Companies Act, 2013 and the rules
made thereunder. The financial statements are prepared on accrual basis and going concern basis of accounting
under historical cost convention in accordance with generally accepted accounting principles in India and the
relevant provisions of the Companies Act, 2013 including Indian Accounting Standards notified thereunder, except
for certain financial assets liabilities measured at fair value.

(b) All assets and liabilities have been classified as current or non-current as per the group's normal operating cycle or
12 months or other criteria as set out in the Schedule III to the Companies Act 2013. Based on the nature of its
business, the group has ascertained its operating cycle to be 12 months for the purpose of current and non-current
classification of assets and liabilities. The financial statements are presented in Indian rupees rounded off to the
Lakhs of rupees and decimal thereof.

(2) Use of Estimates:

(a) The preparation and presentation of financial statements requires the management to make estimates, judgements
and assumptions that affect the amounts of assets and liabilities reported as on the date of financial statements and
the reported amount of revenues and expenses during the reporting period. Accounting estimates could change
from period to period. Actual results could differ from these estimates. Appropriate changes in estimates are made
as and when the Management becomes aware of the changes in the circumstances surrounding the estimates.
Changes in estimates are reflected in the financial statements in the period in which the changes are made and if
material, their effects are disclosed in the notes to the financial statements.

(b) Information about significant areas of estimation, uncertainty and critical judgements in applying accounting
policies that may have significant impact on the amounts recognized in the financial statements are as below:

• Useful lives of property, plant & equipment

• Measurement of defined benefit obligations

• Provisions & contingencies.

(3) Property, Plant & Equipment:

(a) All the items of property, plant & equipment are stated at historical cost net of recoverable taxes, less accumulated
depreciation and impairment loss, if any. The cost of an Property, Plant & Equipment comprises its purchase price or
construction cost, any costs directly attributable to bringing the asset into its present location and the condition
necessary for it to be capable of operating in the manner intended by the management, and also taking into account
the initial estimate of any decommissioning obligation, if any, and Borrowing Costs for the assets that necessarily
take a substantial period of time to get ready for their intended use. Subsequent costs are included in the asset's
carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic
benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The
estimated useful lives of assets are in accordance with the Schedule II of the Companies Act, 2013. Gains or losses
arising from de-recognition / disposal of a Property, Plant and Equipment are measured as the difference between
the net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and
Loss when the asset is derecognised /disposed off.

(4) Depreciation / Amortization:

(a) The company has charged depreciation on Property, Plant & Equipment on Written Down Value(WDV) method on
the basis of useful life/remaining useful life and in the manner as prescribed in Part C, Schedule II of the Companies
Act, 2013. Depreciation on additions / disposals during the year has been provided on pro-rata basis with reference
to the nos. of days utilized.

(b) Depreciation on additi'ons/disposals during the year has been provided on pro-rata basis.

(c) Details of useful life of an asset and its residual value estimated by the management:-

(5) Impairment of Assets:

(a) At each balance sheet date, the company reviews the carrying amounts of its as sets to determine whether there is
any indication that those assets suffered any impairment loss. If any such indication exists or when annual
impairment testing for an asset is required, the recoverable amount of the asset is estimated in order to determine
the extent of impairment loss. An impairment loss, if any, is recognised in the Statement of Profit and Loss to the
extent, asset's carrying amount exceeds its recoverable amount. The recoverable amount is higher of an asset's fair
value less cost of disposal and value in use.

(6) Leasing:

(a) The company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Where the company is lessee

(b) Company's leased assets comprise of Plant & Machinery. The company applies a single recognition and
measurement approach for all leases, except for short-term leases and leases of low-value assets. The company
recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the
underlying assets.

i. Right-of-use assets

The company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is
available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses,
and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease
liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less
any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the lease term and the
estimated useful lives of the assets. The right-of-use assets are also subject to impairment. Refer to the accounting
policies in section (v) Impairment of property, plant and equipment and intangible assets.

ii Lease liabilities

At the commencement date of the lease, the company recognises lease liabilities measured at the present value of lease
payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed
payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts

expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase
option reasonably certain to be exercised by the company and payments of penalties for terminating the lease, if the
lease term reflects the company exercising the option to terminate. Variable lease payments that do not depend on an
index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the
event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the company uses its incremental borrowing rate at the lease
commencement date because the interest rate implicit in the lease is not readily determinable. After the
commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the
lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a
change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an
index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the
underlying asset.

iii Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a
lease term of 12 months or less from the commencement date with no option for extension and do not contain a
purchase option). It also applies the lease of low-value assets recognition exemption to leases that are considered to be
low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight¬
line basis over the lease term.

Where the Company as Lessor

(c) Leases in which the company does not transfer substantially all the risks and rewards incidental to ownership of an
asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease
terms and is included in other income in the statement of profit or loss. Initial direct costs incurred in negotiating and
arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease
term on the same basis as rental income.

(7) Financial Instruments:

(a) A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.

Financial Assets

Initial Recognition and Measurement

(b) A financial asset is recognized in the balance sheet when the Company becomes party to the contractual provisions
of the instrument. At initial recognition, the company measures a financial asset taking into account transactions
cost that are directly attributable to the acquisition or issue of the financial asset.

Subsequent Measurement

• Financial Assets measured at Amortised Cost (AC)

A Financial Asset is measured at Amortised Cost if it is held within a business model whose objective is to hold the asset in
order to collect contractual cash flows and the contractual terms of the Financial Asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount outstanding.

• Financial Assets measured at Fair Value through Other Comprehensive Income (FVTOCI)

A Financial Asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting

contractual cash flows and selling Financial Assets and the contractual terms of the Financial Asset give rise on specified

dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

• Financial Assets measured at Fair Value Through Profit or Loss (FVTPL)

Financial Assets which is not classified in any of the above categories are measured at FVTPL.

Investment in Associate

(c) The Company has accounted for its investments in Associate at Cost of acquisition less impairment loss, if any.

Other Equity Investments

• Share Holding by Captain Polyplast Ltd : (Unquoted)

2,50,000/- Equity Shares of Rs. 10/- each (Captain Engineering Private Limited) out of total 17,00,000/- fully paid-up
Equity Shares of Rs. 10/- each, representing 17.41% of total shareholding. The company is into the business of
manufacturing of submersible pumps and their related parts.

The company measures its equity investment (other than investment forming part of interest in associate) at fair
value. The company's management has elected to present fair value gain and losses on equity investments in other
comprehensive income. Dividends from such investments are recognized in profit & loss as other income when the
Company's right to receive the same is established. In the opinion of the management of company, book value per
share is only the realizable value /fair value per share as on 31 March, 2026, looking to the composition of the assets
of the investee company.

Inventories

(d) Inventories of Raw Materials and Finished Goods are stated at cost or net realizable value, whichever is lower.
Inventories of Waste & Scrap are valued at Net Realizable Value. Cost comprises all cost of purchase, cost of
conversion and other costs incurred in bringing the inventories to their present location and condition. Cost formula
used is 'First in first Out Method'. Due allowance is estimated and made for defective and obsolete items, wherever
necessary, based on the past experience of the Company.

Trade Receivables

(e) Trade receivables are amounts due from customers for sale of goods or services performed in the ordinary course of
business. Trade receivables are initially recognized at its transaction amount which is considered to be its fair value
and are classified as current assets as it is expected to be received within the normal operating cycle of the business.

Cash and Cash Equivalents

(f) Cash and cash equivalents in the cash flow statement comprise cash at bank and in hand, and fixed deposits, that are
readily convertible to know amounts of cash and which are subject to an insignificant risk of change in value.

(g) Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of
transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and
item of income or expenses associated with investing or financing cash flows. Cash flows from operating, investing
and financing activities of the Company are segregated, accordingly.

Financial Liabilities Borrowings

(h) Borrowings are initially recorded at fair value and subsequently measured at amortized costs using effective interest
method. Transaction costs are charged to statement of profit and loss as financial expenses over the term of
borrowing.

Trade Payables

(i) Trade payables are amounts due to vendors for purchase of goods or services acquired in the ordinary course of
business and are classified as current liabilities to the extent it is expected to be paid within the normal operating
cycle of the business.