2. Significant accounting policies:

(1) Basis of Preparation of financial statements:

(a) The Financial Statements of the company have been prepared in
accordance with generally accepted accounting principles in India (Indian
GAAP). The Company has prepared these Financial Statements to comply
in all material respects, with the accounting standards notified under the
Companies (Accounting Standards) Rules, 2006, (as amended) and the
relevant provisions of the Companies Act, 2013. The Financial Statements
have been prepared on the accrual basis and under the historical cost
convention. The financial statements are presented in Indian rupees
rounded off to the nearest rupees in Lakhs.

(b) The accounting policies adopted in the preparation of financial statements
are consistent with those of previous year except for the change in
accounting policy, if any explained below.

(2) Changes in accounting policy:

(a) During the period ended 31 March, 2026, there is no change in accounting
policy having significant impact on presentation and disclosure made in the
financial statements. The company has also reclassified the previous year
figures in accordance with the requirements applicable in the current year.

(3) Uses of Estimates

(a) The preparation of financial statements in conformity with Indian GAAP
requires judgments, estimates and assumptions to be made that affect
the reported amount of assets and liabilities, disclosure of contingent
liabilities on the date of the financial statements and the reported amount of
revenues and expenses during the reporting period. Difference between the
actual results and estimates are recognized in the period in which the results
are known / materialized.

(4) Property, plant and equipment:Tangible Assets:

(a) Tangible Assets are stated at cost net of recoverable taxes, trade discounts
and rebates and include amounts added on revaluation, less accumulated
depreciation and impairment loss, if any. The cost of Tangible Assets
comprises its purchase price, borrowing cost and any cost directly
attributable to bringing the asset to its working condition for its intended
use, net charges on foreign exchange contracts and adjustments arising
from exchange rate variations attributable to the assets. Any subsidy/
reimbursement/ contribution received for installation and acquisition of any
Property, Plant and Equipment is shown as deduction in the year of receipt.

(b) Subsequent expenditures related to an item of Tangible Asset are added to
its book value only if they increase the future benefits from the existing
asset beyond its previously assessed standard of performance.

(c) Projects under which assets are not ready for their intended use are
disclosed under Capital Work-in-Progress and is stated at cost.

Intangible Assets

(d) Intangible Assets are stated at cost of acquisition net of accumulated
amortization/depletion and impairment loss, if any. Internally generated
intangible assets are not capitalized and expensed off in the statement of
Profit and loss in the year in which the expenditure is incurred.

(5) Depreciation, Amortization and Depletion:

(a) Depreciation on tangible assets has been provided as per the WDV method
over the useful lives of the assets considering the nature estimated usage,
operating conditions, past history of replacement and anticipated
technological changes as estimated by the management. Pursuant to the
notification on schedule II of the companies Act, 2013, by the ministry of
corporate Affairs effective from 01/04/2014 the management has
reassessed based on the internal assessment and/or external evaluation
carried out by independent valuers/reference to earlier law and change the
useful lives of the class of assets at Sr. No. 1 to 6 below to compute
depreciation, to confirm to the requirement of the Companies Act, 2013. For
the following class of assets, the management believe that the useful lives
as given below best represent the period over which management expected
to use these assets. Hence the useful lives of the class of assets at Sr. No.
2 to 6 below are different from the useful lives as prescribed under part C
of Schedule II of the Companies Act. 2013.

(b) In respect of additions or extensions forming an integral part of existing
assets and insurance spares, including incremental cost arising on account
of translation of foreign currency liabilities for acquisition of Property, Plant
and Equipment, depreciation is provided as aforesaid over the residual life
of the respective assets.

(6) Impairment:

(a) An asset is treated as impaired when the carrying cost of asset exceeds its
recoverable value. An impairment loss is charged to the Profit and Loss
Statement 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.

(b) After impairment, depreciation is provided on the revised carrying amount
of the assets over its remaining useful life.

(7) Investments:

(a) 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 non-current investments.

(b) Current investments are carried at lower of cost and quoted/fair value,
computed category-wise. Non-Current investments are stated at cost.
Provision for diminution in the value of non-current investments is made
only if such a decline is other than temporary.

(c) During the financial year under audit, the Company has disinvested equity
shares in Nanogen Agrochem Private Limited, Rajkot for a total
consideration of ?. 0.65 lakhs.

(8) Inventories:

(a) Items of inventories are measured at lower of cost and net realizable value
after providing for obsolescence, if any, except in case of by-products which
are valued at net realizable value. Cost of inventories comprises of cost of
purchase, cost of conversion and other costs including manufacturing
overheads incurred in bringing them to their respective present location and
condition. In case of Gunny bags, quantitative details of bags manufactured
denotes the bags received along with the raw materials.

(b) Cost of raw materials, work in progress and finished goods are determined
on weighted average basis.

(9) Revenue Recognition:

(a) Revenue is recognized only when risks and rewards incidental to ownership
are transferred to the customer, it can be reliably measured and it is
reasonable to expect ultimate collection. Revenue from operations includes
sale of goods, services, net of Goods and Services Tax, service tax, excise
duty and sales during trial run period, adjusted for discounts.

(b) Claims for damages etc. against the contractors/service providers are
recognized on due basis, as and when the certainty to receive the claim is
ascertained.

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

(10) Employee Benefits:

(a) The undiscounted amount of short-term employee benefits expected to be
paid in exchange for the services rendered by employees are recognized
as an expense during the period when the employees render the
services. These benefits include performance incentive and compensated
absences.

(b) A defined contribution plan is a post-employment benefit plan under
which the Company pays specified contributions to a separate entity. The
Company makes specified monthly contributions towards Provident Fund,
State Government Schemes. The Company’s contribution is recognized
as an expense in the Profit and Loss Statement during the period in which
the employee renders the related service.

(11) Borrowing Costs:

(a) Borrowing costs that are attributable to the acquisition or construction of
qualifying assets are capitalized as part of the cost of such assets. 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
the Profit and Loss Statement in the period in which they are incurred.

(12) Income Taxes

(a) Tax expense comprises of current tax and deferred tax. Current tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Income-tax Act, 1961 using the applicable tax rates.
Deferred income tax reflects the current period timing differences between

taxable income and accounting income for the period and reversal of timing
differences of earlier years/period.

(b) Deferred tax assets are recognized only to the extent that there is a
reasonable certainty that sufficient future income will be available except
that deferred tax assets, in case there are unabsorbed depreciation or
losses, are recognized if there is virtual certainty that sufficient future
taxable income will be available to realize the same.

(c) Deferred tax assets and liabilities are measured using the tax rates and tax
law that have been enacted or substantively enacted by the Balance Sheet
date.

(13) Earnings / (Loss) per share:

(a) Basic earnings/(loss) per share are calculated by dividing the net profit /
(loss) for the period attributable to equity shareholders (after deducting
preference dividends and attributable taxes, if any) by the weighted
average number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during the period
are adjusted for any bonus shares issued during the year and also after the
balance sheet date but before the date the financial statements are
approved by the board of directors.