Notes to Accounts of Pearl Polymers Ltd.

Mar 31, 2025

P. Provisions & Contingencies

A provision arising from claims, litigation, assessment, fines, penalties, etc. is recognized when the Company has
a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the
amount of the obligation. These are reviewed at each balance sheet date and adjusted to reflect current management
estimates. Contingent liabilities are disclosed in respect of possible obligations that have arisen from past events and
the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of the enterprise. When there is a possible obligation or present obligation where
the likelihood of an outflow is remote, no disclosure or provision is made.

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by
the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. A
contingent asset is disclosed, where an inflow of economic benefits is probable.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party,
the receivable is recognized as an asset, if it is virtually certain that reimbursement will be received and the amount of
the receivable can be measured reliably.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the
passage of time is recognized as a finance cost.

Q. Income Taxes

Income tax comprises current tax and deferred tax. Income tax expense is recognized in the statement of profit and loss
except to the extent it relates to items directly recognized in equity or in other comprehensive income.

Current Tax

Current tax for the current and prior periods are measured at the amount expected to be recovered from or paid to
the taxation authorities based on the taxable income for the period. The tax rates and tax laws used to compute the
current tax amount are those that are enacted or substantively enacted by the reporting date and applicable for the
period. The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to
set off the recognized amounts and where it intends either to settle on a net basis or to realize the asset and liability
simultaneously.

Deferred Tax

Deferred tax is recognized using the balance sheet approach. Deferred tax assets and liabilities are recognized for
deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying
amount in standalone financial statements, except when the deferred tax arises from the initial recognition of goodwill or
an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profits
or loss at the time of the transaction.

Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the
deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.

Deferred tax liabilities are recognized for all taxable temporary differences.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset
is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted
at the reporting date.

*This information as required to be disclosed under Micro and Small Enterprises Development Act, 2006
has been determined to the extent such parties have been identified on the basis of information available
with the company during the year.

47 The Company is engaged in the trading of PET bottles & jars and there is no separate reportable segment
as per the Accounting Standard 17 on ''Segment Reporting'' notified in the Companies (Accounting
Standard) Rules, 2006.

48 During the year, Provision for Income Tax has been made on the basis of Income Tax Act, 1961.

49 Disclosure for operating leases under Accounting Standard 19 "Lease". The Company has taken various
residential flats/godowns/office premises (including furniture and fittings, there in as applicable) under
operating lease or leave and license agreements. These are generally not non-cancellable and range
between 11 months and 10 years under leve and license, or longer for other leases and are renewable by
mutual consent on mutually agreeable terms. The Company has given refundable interest free security
deposits in accordance with the agreed terms. No contingent rents are recognized in the P&L Account.

50 Other statutory information

(i) The Company does not have any Benami property, where any proceeding has been initiated or
pending against the Group for holding any Benami property.

(ii) The Company does not have any transactions with companies struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC
beyond the statutory period,

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial
year.

(v) The Company has not been declared wilful defaulter by any bank or financial institution or government
or any government authority.

(vi) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies),
including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

- (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the company (Ultimate Beneficiaries) or

- (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Group
shall:

- (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Funding Party (Ultimate Beneficiaries) or

- (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(viii) The Company has not any such transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act,
1961

(ix) The company do not have any working capital/term loan from Banks or any other financial institutions
during the year.

Explanations given where the change in the ratio is more than 25% as compared to the preceding year.
Note :

a) Due to operating losses incurred during the year.

b) Due to reduction in credit period of sales..

c) Due to better management of working capital for business.

52 Previous Year figures have been regrouped/reclassified, wherever considered necessary to conform to
current year''s classification.

For Goel Goyal and Co. For and on behalf of the board of directors

CHARTERED ACCOUNTANT

(FRN No.020934C)

Udit Seth Varun Seth

Chairman & Managing Director Whole Time Director
CA NIKHIL GOEL DIN-00005403 DIN-00017552

Partner

Membership No. 537710

Sanjeev Rikhi Aman Thakran

Place: New Delhi Chief Financial Officer Company Secretary

Dated: 30th May 2025 M.No.66476

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Mar 31, 2024

36	Contingent Liabilities		F.Y. 2023-24 (Rs. in lacs)		F.Y. 2022-23 (Rs. in lacs)
	In respect of demands for Excise Duty * * includes: The Company had received for its unit at Ma-had show cause notice from:-Dy. Commissioner of Central Excise. Mahad Division issued SCN for producing & clearing both dutiable and non dutiable product under Notification No. 4/1997 Dated 01.03.1997 for Rs. 360.59 lacs for the period from March 1997 to June 1997. It appears that Appeal of department is set aside by CESTAT and department has filed appeal before Supreme Court in same matter for earlier period. This case was in call book and has been heard now by Commissioner of Central Excise, Raigad on 11.12.2013 and order is awaited. Joint Commissioner of Central Excise has given notice fir for excess availment of cenvat credit on the supply of pet chips by SOUTH ASIAN PETRO CHEM. against invoices from 16.07.2004 to 14.08.2004. Duty recoverable Rs. 7,18,752/- (duty Rs.704659/- EC Rs.14093/-). Department has filed Appeal before CESTAT against dropping of Ed Cess of Rs. 14,093/-. Entire duty demanded has been paid on receipt of notice, hence liability is restricted to penalty at Rs.500000/- and ED Cess at Rs.14093/-only.	366.13		366.13

Asst. Commissioner has issued show cause notice relating to supplementary invoices raised from January 2001 to April 2003 and payment of differential duty by the Company. Demand of Rs. 40,000/- approx raised by the department for delay in payment of differential duty.

*This information as required to be disclosed under Micro and Small Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company during the year.

45 The Company is engaged in the manufacture of PET bottles & jars and there is no separate reportable segment as per the Accounting Standard 17 on ‘Segment Reporting’ notified in the Companies (Accounting Standard) Rules. 2006

46 During the year, Provision for Income Tax has been made on the basis of Income Tax Act, 1961.

⁴⁷ Disclosure for operating leases under Accounting Standard 19 “Lease”. The Company has taken various residential flats/godowns/office premises (including furniture and fittings, there in as applicable) under operating lease or leave and license agreements. These are generally not non-cancellable and range between 11 months and 10 years under leve and license, or longer for other leases and are renewable by mutual consent on mutually agreeable terms. The Company has given refundable interest free security deposits in accordance with the agreed terms. No contingent rents are recognized in the P&L Account.

48 Other statutory information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property.

(ii) The Company does not have any transactions with companies struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(vi) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

- (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

- (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Group shall:

- (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

- (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(viii) The Company has not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

(ix) The company do not have any working capital/term loan from Banks or any other financial institutions

during the year.

Explanations given where the change in the ratio is more than 25% as compared to the preceding year. Note :

a) Due to repayment of debt

b) Due to increase in earnings during the year.

c) Due to better management of working capital for business.

50 Previous Year figures have been regrouped/reclassified, wherever considered necessary to conform to current year’s classification.

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Mar 31, 2023

P. Provisions & Contingencies

A provision arising from claims, litigation, assessment, fines, penalties, etc. is recognized when the Company has a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. These are reviewed at each balance sheet date and adjusted to reflect current management estimates. Contingent liabilities are disclosed in respect of possible obligations that have arisen from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise. When there is a possible obligation or present obligation where the likelihood of an outflow is remote, no disclosure or provision is made.

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. A contingent asset is disclosed, where an inflow of economic benefits is probable.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset, if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Q. Income Taxes

Income tax comprises current tax and deferred tax. Income tax expense is recognized in the statement of profit and loss except to the extent it relates to items directly recognized in equity or in other comprehensive income.

Current Tax

Current tax for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities based on the taxable income for the period. The tax rates and tax laws used to compute the current tax amount are those that are enacted or substantively enacted by the reporting date and applicable for the period. The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis or to realize the asset and liability simultaneously.

Deferred Tax

Deferred tax is recognized using the balance sheet approach. Deferred tax assets and liabilities are recognized for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount in standalone financial statements, except when the deferred tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profits or loss at the time of the transaction.

Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.

Deferred tax liabilities are recognized for all taxable temporary differences.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

The Company is engaged in the manufacture of PET bottles & jars and there is no separate reportable

45 segment as per the Accounting Standard 17 on ''Segment Reporting'' notified in the Companies (Accounting Standard) Rules. 2006

46 During the year, Provision for Income Tax has been made on the basis of Income Tax Act, 1961.

Disclosure for operating leases under Accounting Standard 19 “Lease”. The Company has taken various residential flats/godowns/office premises (including furniture and fittings, there in as applicable) under operating lease or leave and license agreements. These are generally not non-cancellable and range

47 between 11 months and 10 years under leve and license, or longer for other leases and are renewable by mutual consent on mutually agreeable terms. The Company has given refundable interest free security deposits in accordance with the agreed terms. No contingent rents are recognized in the P&L Account.

48 Other statutory information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property.

(ii) The Company does not have any transactions with companies struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(vi) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

- (a) directly or indirectly lend or invest in other persons or entities identified in any manner

whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

- (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Group shall:

- (a) directly or indirectly lend or invest in other persons or entities identified in any manner

whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

- (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(viii) The Company has not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

(ix) The company do not have any working capital/term loan from Banks or any other financial institutions during the year.

Explanations given where the change in the ratio is more than 25% as compared to the preceding year. Note :

a) Decreased due to operating loss.

b) Due to increase in sales.

c) Due to better collection of receivables.

d) Due to better management of trade payables.

e) Due to sale of B2B Business in last year.

f) Due to profit on slump sale of B2B Business in last year and operating loss in the current year.

50 Previous Year figures have been regrouped/reclassified, wherever considered necessary to conform to

current year’s classification.

For Nikhil Goel & Associates On Behalf of the Board

CHARTERED ACCOUNTANT

(FRN No.020934C)

Udit Seth Varun Seth

Chairman & Managing Director Whole Time Director DIN-00005403 DIN-00017552

CA NIKHIL GOEL

Proprietor

Membership No. 537710 Sanjeev Rikhi Aman Thakran

Place: New Delhi Chief Financial Officer Company Secretary

Dated: 30th May, 2023 M.No.66476

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Mar 31, 2016

Terms/Rights attached to Equity Shares

The Company has only one class of Equity Shares havi ng a face value of Rs. 10/- per share. Each holder of equity is entitled to one vote per share. In the event of liquidation of the Company, the holder''s of equity shares would be entitled to receive remaining assets of the Company, after distribution of all Preferential amount. The distribution will be in proportion to the number of equity shares held.

I Term Loans_

(i) Term Loan of Rs. 266.71 lakhs (Previous Year Rs. 510.58 lakhs) is secured by way of exclusive charges on machines installed at company''s all units. The above said loan is further secured by personal guarantees of Mr. Chand Seth and Mr. Varun Seth, Directors of the Company. Repayments - in quarterly installments till 10.6.2019. Rate of interest as on 31.03.2016 was 13.50% p.a and current Rate of Interest is12.50% p.a.

(ii) Term Loan of Rs. 600 lakhs (Previous Year Nil) is secured by way of first charge on immovable property situated at Baddi (Himanchal Pradesh). The Company is in the process of creating mortgage on the said property to secure the above said loan. The above said loan is further secured by personal guarantees of Mr. Chand Seth and Mr. Varun Seth, Directors of the Company. Repayments - in monthly installments till 24.09.2020. Current Rate of interest is 11.70% p.a.

Loan Repayable on demand from Banks (secured)_

Working Capital Loans from Banks are secured by hypothecation of inventories and Book Debts and are further secured by first charge on Company''s immovable property at Mahad, Jigani, and Pantnagar. The above said loans are further secured by personal guarantees of M r.Chand Seth &

Mr. Varun Seth, Directors of the Company.

40 Related party disclosures

Name of relative parties and related party relationship

Key Management Personnel

Mr.Chand Seth - Chairman & Managing Director

Mr.Varun Seth - Whole Time Director

Mr. Ramesh Mehra - Whole Time Director

Relatives of Key Management personnel and their enterprises

where transactions have taken place

Mrs. Suneeta Seth

Mr. Amit Seth

Mr. Udit Seth

Related parties where control exists

Pearl Flats India Ltd

Pacific Pearl Finance & Leasing Ltd

Pearl Telefonics Ltd ( Formerly Sinclair Exports Ltd)

Theta Investments Pvt Ltd_

^1. The Company is engaged in the manufacture of PET bottles & jars and there is no separate reportable segment as per the Accounting Standard 17 on ''Segment Reporting'' notified in the Companies (Accounting Standard) Rules. 2006

2.1n view of loss during the year, provision for Income Tax has not been made. |

3. The Company had made an insurance claim of Rs. 191.3 9 lakhs, on an estimated basis pending settlement, in respect of fire at one of it''s unit in 201415. During the year, the claim is finally settled at Rs. 124.75 lakhs resulting to a loss of Rs. 66.64 Lacs on settlement of the said fire claim.

4. a) Disclosure for operating leases under Accounting Standard 19 "Lease". The Company has taken various residential flats/god owns/office premises (including furniture and fittings, there in as applicable) under operating lease or leave and license agreements. These are generally not non-cancellable and range between 11 months and 3 years under leave and license, or longer for other leases and are renewable by mutual consent on mutually agreeable terms. The Company has given refundable interest free security deposits in accordance with the agreed terms. No contingent rents are recognized in the P& L Account.

b) The Company does not have leased facilities under the non-cancellable operation lease during the year. Le ase rent amounting to Rs. Nil (previous year Rs. 43.12 lakhs) has been charged to Profit & Loss Account during the year.

5. Previous Year figures have been regrouped/reclassified, wherever considered necessary to conform to current year''s c lassification._

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Mar 31, 2015

1. Terms/Rights attached to Equity Shares

The Company has only one class of Equity Shares having a face value of Rs. 10/- per share. Each holder of equity is entitled to one vote per share. In the event of liquidation of the Company, the holder's of equity shares would be entitled to receive remainning assets of the Company, after distribution of all Prefrential amount. The distribution will be in proportion to the number of equity shares held.

2. Loan Repayable on demand from Banks (secured)

Working Capital Loans from Banks are secured by hypothecation of inventories and Book Debts and are further secured by first charge on Company's immovable property at Mahad, Jigani, and Pantnagar. The above said loans are further secured by personal guarantees of Mr.Chand Seth & Mr. Varun Seth, Directors of the Company.

lodgment of counter guarantees of the Company 73.48 67.98

* Provided by way of Margin Money Rs. 18.37 lakhs (Previous Year Rs. 17 lakhs)

In respect of Service Tax 0.04 0.04

In respect of demands for Excise Duty * 807.07 807.46

The Company has received for its unit at Mahad show cause notice from Excise Department for Rs. 3.61 lacs for disallowance of CENVAT credit on shrink films for the year 2013-14. for Rs. 3.24 lakhs.

The Company had received for its unit Mahad show cause notice from Excise Department for Rs.50.10 lacs against Excise Duty not Paid on freight Charged separately in invoices covered period from October 2008 to July 2013.

non-dutiable products under notification 4/97 dated 1.03.97. The Company period had been adjudicated in Company's favour by CESTAT, DELHI

The Company had received for its unit at Mahad show cause notice from Excise Department for Rs. 72.65 lacs for disallowing cenvat credit on SHRINK FILMS / SHRINK SLEEVES ,as the same has been wrongly classified by supplier under CH 4901.90 instead of CH 3 920.19 for the period from August 2001 to Feb 2006

Excise Department for Rs.10.00 lakhs for penalty and deposited Rs.2.50 lakhs under protest.

In respect of sales Tax * 19.49 19.49

In respect of sales tax demand for the year 2002-03 of its unit at Jigni of Rs. 9.88 lakhs ( Net of bank guarantee) 2011-12 for Assessment under section 143(3) 21.86 7.49

3. Related party disclosures

Name of relative parties and related party relationship

Key Management Personnel

Mr.Chand Seth - Chairman & Managing Director

Mr.Varun Seth - Whole Time Director

Mr. Ramesh Mehra - Whole Time Director

Relatives of Key Management personnel and their enterprises

where transactions have taken place

Mrs. Suneeta Seth

Mr. Amit Seth

Mr. Udit Seth

Related parties where control exists

Emperor T ravels & T ours Pvt Ltd

Pearl Apartments Ltd

Pearl Flats India Ltd

MRK Shares & Stocks Pvt Ltd

Pacific Pearl Finance & Leasing Ltd

Pearl Telefonics Ltd ( Formerly Sinclair Exports Ltd)

Theta Investments Pvt Ltd

4. The Company is engaged in the manufacture of PET bottles & jars and there is no seprate reportab;e segment as per the Accounting Standard 17 on 'Segment Reporting' notified in the Companies (Accounting Standard) Rules. 2006

5. Prsuant to the enactment of companies Act 2013. The Company has Applied the estimate useful lives as specified in schedulee II except in respect of certain assets as disclosed in Accounting Policies on depreciation & Intangibles. Accordingly, unamortised carrying value is being depreciated/amortised over the revised/remaining useful lives. The written down value of Fixed Assets whose life have expired as at 1st April, 2014 has been adjusted net of tax, in the opening balance of Profit and Loss Account amounting to Rs. 711.29 lacs.

6. In view of loss duraing the year,provision for income tax has not been made.

7. During the year, there was fine at one of company's unit due to shortcircuit. The company has filed insurance claim for loss of Stocks,Building, Furniture & Fixture and Machinery. Insurance claim of Rs. 191.39 lacs has been provided on estimated basis. Any short/excess on this account shall be considered at the time of settlement of claim.

8. a) Disclosure for operating leases under Accounting Standard 19" Lease". The Companyhas taken various residential flasts/godown/office premises (including furniture and fittings, there in as applicable) under operating lease or leave and license agreements. These are generally not non-cancellable and range between 11 months and 3 years under leve and license, or longer for other leases and are renewable by mutual consent on mutually agreeable terms. The Company has given refundable interest free security deposits in accordance with the agreed terms. No contingent rents are recognized in the P&L Account.

b) The Company has leased facilities under the non-cancellable operation lease. Lease rent amounting to Rs. 43.12 lakhs (previous year Rs. 94.96 lakhs) has been charged to Profit & Loss Account during the year.

9. Previous Year figures have been regrouped/reclassified, wherever considered necessary to conform to current year's classification. |

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Mar 31, 2014

1. Term Loans

(a) (i) Term Loan of Rs. 9.38 lakhs (Previous Year Rs. 95.30 lakhs) is secured by way of pari-passu first mortgage/charge created on all immovable and movable assets, both present and future (save and except book debts) in respect of property situated at Baddi. The above said loan is further secured by personal guarantees of Mr. Chand Seth, Director of the Company and Mr.Harish Seth. Repayments - in quarterly installments till 10.07.2014.Current Rate of Interest is 12% p.a.

(ii) Term Loan of Rs. 388.41 lakhs (Previous Year Rs. 615.03 lakhs) is secured by way of exclusive charges on machines installed at company''s all units. The above said loan is further secured by personal guarantees of Mr. Chand Seth, Director of the Company and Mr.Harish Seth. Repayments - in quarterly installments till 10.3.2016. Current Rate of Interest @ 13.75% p.a.

Repayments of above Term Loans are as follows:

(b) (i) From 1 to 2 years - Rs. 9.38 lakhs

(ii) From 1 to 2 years - Rs. 388.41 lakhs

2. Vehicles Loans

Vehicle loans are secured against hypothecation of respective vehicles. Repayment is as follow:

From 1 to 2 years - Rs. 20.86 lakhs, from 2 to 4 years Rs. 10.12 lacs and from 5 to 6 years Rs. 4.88 lacs

Last installment date: 05.01.2019

3. Deposits

Deposits repayable in more than one year are considered above.

Loan Repayable on demand from Banks (secured)

Working Capital Loans from Banks are secured by hypothecation of inventories and Book Debts and are further secured by first charge on Company''s immovable property at Okhla and second charge on Company''s erstwhile property at Gurgaon. The company is in the process of giving alternative securities to Working Capital Lendors against existing securities. The above said loans are further secured by personal guarantees of Mr.Chand Seth & Mr. Varun Seth, Directors of the Company.

Deposits (unsecured)

Deposits repayable with in a year are considered above. Public deposits period is from six months to three years. Current Rate of Interest @ 10% p.a. for six months & more than one year period and @ 11% p.a. for one year period.

Note-4

CONTINGENT LIABILITIES

In respect of guarantees executed by Banks against lodgment of counter 67.98 150.62 guarantees of the Company Provided by way of Margin Money Rs. 17 lakhs (Previous Year Rs. 37.16 lakhs)

In respect of Service Tax 0.04 0.04

In respect of demands for Excise Duty * 807.46 747.86

* includes:

The Company had received for its unit at Mahad show cause notice from Excise Department for Rs. 3.24 lakhs.

The Company had received for its unit at Mahad show cause notice from Excise Department for Rs. 360.00 lakhs for producing and clearing dutiable and non- dutiable products under notification 4/97 dated 1.03.97. The Company has preferred an appeal against the same. Similar case for a different period had been adjudicated in Company''s favour by CESTAT, DELHI At its unit at Mahad the Excise Department has filed an appeal against a demand of Rs. 72.72 lakhs which had been dropped by the Commissioner, Central Excise. (The original show cause notice was received on 17.2.2002 and related to imposition of Excise Duty on recovery of freight

Note-5

Purchases are net of incentives received.

Note-6

RELATED PARTY DISCLOSURES

Name of relative parties and related party relationship

Key Management Personnel

Mr.Chand Seth - Chairman & Managing Director

Mr.Varun Seth - Whole Time Director

Relatives of Key Management personnel and their

enterprises where transactions have taken place

Mrs. Suneeta Seth

Mr. Amit Seth

Mr. Udit Seth

Related parties where control exists

Amit Apartments Ltd

Emperor Travels & Tours Pvt Ltd

Gama Investments Pvt Ltd

Pearl Apartments Ltd

Pearl Flats India Ltd

MRK Shares & Stocks Pvt Ltd

Pacific Pearl Finance & Leasing Ltd

Pearl Telefonics Ltd (Formerly Sinclair Exports Ltd)

Theta Investments Pvt Ltd

Note-7

The Company is engaged in the manufacture of PET bottles & jars and there is no separate reportable segment as per the Accounting Standard 17 on ''Segment Reporting'' notified in the Companies (Accounting Standard) Rules. 2006

Note-8

During the year, Provision for Income Tax has been made on the basis of Books profits u/s 115 JB of Income Tax Act,1961.

Note-9

a) Disclosure for operating leases under Accounting Standard 19 "Lease". The Company has taken various residential flats/godowns/office premises (including furniture and fittings, there in as applicable) under operating lease or leave and license agreements. These are generally not non-cancellable and range between 11 months and 3 years under leve and license, or longer for other leases and are renewable by mutual consent on mutually agreeable terms. The Company has given refundable interest free security deposits in accordance with the agreed terms. No contingent rents are recognized in the P&LAccount.

b) The Company has leased facilities under the non-cancellable operation lease. Lease rent amounting to Rs. 94.96 lakhs

Note-10

Previous Year figures have been regrouped/reclassified, wherever considered necessary to conform to current year''s classification.

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Mar 31, 2013

Note-1

The Company is engaged in the manufacture of PET bottles & jars and there is no separate reportable segment as per the Accounting Standard 17 on ''Segment Reporting'' notified in the Companies (Accounting Standard) Rules. 2006

Note-2

During the year, current tax is provided under the Income Tax Act,1961 and the same is net of MAT credit entitlement of Rs. 176 lakhs for earlier years.

Note-3

(a) During the year, the company''s manufacturing unit at Gurgaon was closed and one time settlement was done with the labour.Plant & Machineries were transferred to company''s other units or disposed off. Land & Building was sold, under an agreement to sell. The possession of Land & Building was handed over on 15.03.2013 and the execution of sale deed is pending due to completion of formalities in this regard.

Note-4

As on 31st March, 2013, the Company has Investments of 54,92,960 Equity Shares (amounting to Rs. 545.40 lakhs) of Pearl Engineering Polymers Ltd, a Company under the same management. The unit is closed since March, 2011 and there is no revival plan now despite best effort of the Company over the period. In view of this, during the year,the Company has made a provision of Rs. 478.39 Lacs towards diminution in the value of said equity. The said amount is shown as exceptional item in the statement of Profit & Loss for the current year.

Note-5

a) Disclosure for operating leases under Accounting Standard 19 "Lease": The Company has taken various residential flats/godowns/office premises (including furniture and fittings, there in as applicable) under operating lease or leave and license agreements. These are generally not non-cancellable and range between 11 months and 3 years under leave and license, or longer for other leases and are renewable by mutual consent on mutually agreeable terms. The Company has given refundable interest free security deposits in accordance with the agreed terms. No contingent rents are recognized in the Statement of Profit & Loss.

b) The Company has leased facilities under the non-cancellable operation lease:Lease rent amounting to Rs. 94.96 lakhs (Previous year Rs. 95.19 lakhs) has been charged to Statement of Profit & Loss.

Note-6

Prior Year Comparatives

Previous Year figures have been regrouped/reclassified, wherever considered necessary to conform to current year''s classification.

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Mar 31, 2012

I. Term Loans

a) Term Loan of Rs.410.00(Rs. in lakhs) (previous year Rs.570.00(Rs. in lakhs) is secured by a first mortgage/charge on immovable properties situated at company's unit at Pantnagar (Uttrakhand). The above said loan is further secured by personal guarantee of Mr.Chand Seth and Mr.Harish Seth, Directors of the Company. Repayments - in quarterly installments till 1.7.2014.Current Rate of Interest @ 14.50% p.a.

b) i Term Loan of Rs.101.36(Rs. in lakhs) (previous Year-Rs.180.36(Rs. in lakhs) is secured by first charge on the assets situated at the Company's unit situated at Gurgaon (Haryana). The above said loan is further secured by personal guarantees of Mr. Chand Seth and Mr. Harish Seth, Directors of the Company. Repayments - in installments till 31.7.2013. Current Rate of Interest @ 12.50% p.a.

ii Term Loan of Rs.36.00 (Rs. in lakhs) (Previous Year Rs.60.00 (Rs. in lakhs) is secured by way of pari-passu first mortgage/charge created on all immovable and movable assets, both present and future (save and except book debts) in respect of property situated at Baddi. The above said loan is further secured by personal guarantees of Mr. Chand Seth and Mr.Harish Seth, Directors of the Company. Repayments - in equal quarterly installments till 1.9.2013. Current Rate of Interest @9.75% p.a.

iii Term Loan of Rs.199.02(Rs. in lakhs) (Previous Year Rs.302.74 (Rs.in lakhs)is secured by way of pari-passu first mortgage/charge created on all immovable and movable assets, both present and future (save and except book debts) in respect of property situated at Baddi. The above said loan is further secured by personal guarantees of Mr. Chand Seth and Mr.Harish Seth, Directors of the Company. Repayments - in quarterly installments till 10.07.2014.Current Rate of Interest on Rs. 126.00 lakhs @ 9.75% p.a., on Rs. 29.00 lakhs @13% p.a. and on Rs.44.02 lakhs @ 12% p.a.

iv Term Loan of Rs.803.69(Rs.in lakhs) (Previous Year Rs.474.02(Rs.in lakhs)) is secured by way of exclusive charges on machines installed at Company's all units. The above said loan is further secured by personal guarantees of Mr. Chand Seth and Mr.Harish Seth, Directors of the Company. Repayments - in quarterly installments till 10.3.2016. Current Rate of Interest @ 13.50% p.a.

Repayments of above Term Loans are as follows:

a) From 1 to 2 years - Rs. 320.00 lakhs, From 2 to 3 years -Rs. 90.00 lakhs

b) i From 1 to 2 years - Rs. 101.36 lakhs ii From 1 to 2 years - Rs. 36.00 lakhs

iii From 1 to 2 years - Rs. 189.64 lakhs,From 2 to 3 years Rs.9.38 lakhs

iv From 1 to 2 years - Rs. 434.26 lakhs,From 2 to 3 years Rs.217.17 lakhs, From 3 to 4 years Rs.152.26 lakhs

II. Vehicles Loans

Vehicle loans are secured against hypothecation of respective vehicles. Repayments - in monthly installments till 15.12.2015

III. Deferred Sales Tax

Deferred sales tax is in respect of company's unit at Mahad. The repayment is in annual installments till 30.09.2012.

IV. Deposits

Deposits repayable in more than one year are considered above. Public deposits period is from six months to three years..Current Rate of Interest @ 10% p.a. for six months & more than one year period and 11% p.a. for one year period .

Loan Repayable on demand from Banks (secured)

Working Capital Loans from Banks are secured by hypothecation of inventories and Book Debts and are further secured by first charge on Company's immovable property at Okhla and second charge on Company's property at Gurgaon. The above said loans are further secured by personal guarantees of Mr.Chand Seth, Mr. Harish Seth, Directors of the Company, and Mr.Krishen Seth.

Note-1

Purchases are net of incentives received during the year from the suppliers.

Note-2

Related party disclosures

Name of relative parties and related party relationship

Key Management Personnel

Mr.Chand Seth - Chairman & Managing Director Mr.Harish Seth - Vice-Chairman & Managing Director Mr.Varun Seth - Whole Time Director

Relatives of Key Management personnel and their enterprises where transactions have taken place

Mrs Suneeta Seth Mrs Madhu Seth Mrs Rupali Seth Mr Udit Seth Mr Adhar Seth Mrs Ashna Chopra

Related parties where control exists

Amit Apartments Ltd

Beta Finance & Trading Pvt Ltd

Emperor Travels & Tours Pvt Ltd

Gama Investments Pvt Ltd

Pearl Apartments Ltd

Pacific Pearl Finance and Leasing Ltd

Pearl Engineering Polymers Ltd

Pearl International Tours & Travels Ltd

Theta Investments Pvt Ltd

Pearl Telefonics Ltd

Note-3

The Company is engaged in the manufacture of PET bottles & jars and there is no separate reportable segment as per the Accounting Standard 17 on 'Segment Reporting' notified in the Companies (Accounting Standard) Rules. 2006

Note-4

In view of loss, MAT is not applicable. Moreover, deduction is available u/s 80(IC) of the Income Tax Act, against taxable income of the Company. Hence, no provision for Income Tax has been made during the year.

Note-5

In accordance with the Central Capital Investments Subsidy Scheme 2003, the Company has received a Capital Subsidy of Rs. 30.00 lakhs during the year, in respect of its Pant Nagar Unit. The same has been credited to Capital Reserve Account

Note-6

As on 31st March, 2012, the Company has Investments of 5492960 equity shares (amounting to Rs. 545.40 lakhs) of Pearl Engineering Polymers Ltd, a Company under the same management, which is temporarily shut down since March 2011. No provision has been made for diminution of the value of the said investment since, in the opinion of the management, the enterprise value is much higher, and the going concern of the Company is not impacted at this stage.

Note-7

a) Disclosure for operating leases under Accounting Standard 19 "Lease".The Company has taken various residential flats/godowns/office premises (including furniture and fittings, there in as applicable) under operating lease or leave and license agreements. These are generally not non-cancellable and range between 11 months and 3 years under leave and license, or longer for other leases and are renewable by mutual consent on mutually agreeable terms. The Company has given refundable interest free security deposits in accordance with the agreed terms. No contingent rents are recognized in the P&L Account.

b) The Company has leased facilities under the non-cancellable operation lease. Lease rent amounting to Rs. 95.19 lakhs (Previous year Rs. 95.19 lakhs) has been charged to Profit & Loss Account

Note-8

Prior Year Comparatives

Till the year ended March 31. 2012, the Company was using pre-revised Schedule VI to the Companies Act, 1956, for preparation and presentation of its financial statements. During the year ended March 31, 2012, the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the Company. The Company has reclassified previous year's figures to confirm to this year classifications.

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Mar 31, 2011

1 Contingent Liabilities As at As at 31st March 2011 31st March 2010 (Rs. in '000) (Rs. in '000)

a) Bills discounted - 911

b) In respect of guarantees - 15219 executed by Banks against lodgement of counter guarantees of the Company *Provided by way of Margin Money Rs.Nil Previous Year -Rs 39,15 ('000))

c) In respect of Service Tax 4 4

d) In respect of demands 72887 72071 for Excise Duty* *includes:

- The Company had received for its unit at Mahad show cause notice from Excise Department for Rs. 3,60,00('000) for producing and clearing dutiable and non-dutiable products under notification 4/97 dated 1.03.97. The Company has preferred an appeal against the same. Similar case for a different period had been adjudicated in Company's favour by CESTAT, DELHI.

- At its unit at Mahad the Excise department has filed an appeal against a demand of Rs.72,72('000) which had been dropped by the Commissioner, Central Excise. (The original show cause notice was received on 17.2.2002 and related to imposition of Excise Duty on recovery of freight charges, detention charges etc separately by the company and non-inclusion of the same)

- The Company had received for its unit at Gurgaon Demand Notice from Excise Department for Rs.10,00('000) for penalty and deposited Rs. 2,50('000) under protest

2 Purchases are net of the incentives received during the year from the suppliers.

3 Current Assets, Loans and Advances :

In the opinion of the Board, the Current Assets, Loans and Advances have a value on realization in the ordinary course of business, atleast equal to the amount stated in the Balance Sheet.

4 Balances of Sundry Debtors, Loans & Advances and Sundry Creditors are subject to confirmation by the parties.

6 The Company is engaged in the manufacture of PET bottles & jars and there is no separate reportable segment as per the Accounting Standard 17 on 'Segment Reporting' notified in the Companies (Accounting Satandard) Rules, 2006.

7 Related party Disclosures:

i) In accordance with the Accounting Standard on " Related Party Disclosures" (AS-18), the disclosures in respect of related parties and transactions with the related parties, carried out in the normal course of the business, as identified and certified by the management, are as follows:-

a) Key Management Personnel

Mr. Chand Seth - Chairman & Managing Director

Mr. Harish Seth - Vice Chairman & Managing Director

Mr. Varun Seth - Whole Time Director

b) Relatives of Key Management personnel and their enterprises where transactions have taken place.

Mrs. Suneeta Seth

Mrs. Madhu Seth

Mrs. Rupali Seth

Mr. Udit Seth

Mr.Adhar Seth

Mrs. Ashna Chopra

c) Other related parties where control exists

Amit Apartments Ltd

Beta Finance & Trading Pvt Ltd

Emperor Travels & Tours Pvt Ltd

Gama Investments Pvt Ltd

Pearl Apartments Ltd

Pacific Pearl Finance and Leasing Ltd

Pearl Engineering Polymers Ltd

Pearl International Tours & Travels Ltd

Theta Investments Pvt Ltd

8 Employees Benefits

a)The Company has adopted Accounting Standard (AS)-15, "Employees Benefits" notified in the Companies (Accounting Standards) Rules, 2006.

9 In view of deduction available u/s 80(IC) of the Income Tax Act, provision for Income Tax has been made on the basis of Book Profit u/s 115JB of the Income Tax Act.

10 As on 31st March, 2011, the Company has Investments of 54,92,960 equity shares (amounting to Rs.54,540('000) of Pearl Engineering Polymers Ltd, a Company under the same management, which is temporarily shut down since March 2011. No provision has been made for diminution of the value of the said investment since,in the opinion of the management, the enterprise value is much higher, and the going concern of the Company is not impacted at this stage.

11 (a) Disclosure for operating leases under Accounting Standard 19 "Lease". The Company has taken various residental flats/godowns/office premises (including furniture and fittings, there in as applicable) under operating lease or leave and licence agreements. These are generally not non-cancellable and range between 11 months and 3 years under leave and license, or longer for other leases and are renewable by mutual consent on mutually agreeableterms. The Company has given refundable interest free security deposits in accordance with the agreed terms. No contingent rents are recognised in the P&L Account.

12 Previous Year figures have been recasted / rearranged, wherever considered necessary to conform to current year's presentation.

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Mar 31, 2010

As at As at 31st March 2010 31st March 2009 (Rs. in ‘000) (Rs. in ‘000)

1 Estimated amount of contracts remaining to be executed on Capital account and not provided for (Net of Advances) 9404 8402

2 Contingent Liabilities

a) Bills discounted 911 -

b) In respect of guarantees executed by Banks against lodgement of counter guarantees of the Company 15219 12185 Provided by way of Margin Money Rs.39,15(000) (Previous Year- Rs. 38,05 (000))

c) In respect of Service Tax 4 -

d) In respect of Sales Tax - 4288

e) In respect of demands for Excise Duty;* 72071 70679 *includes:

- The Company had received for its unit at Mahad show cause notice from Excise Department for Rs. 3,60,00(‘000) for producing and clearing dutiable and non-dutiable products under notification 4/ 97 dated 1.03.97. The Company has preferred an appeal against the same. Similar case for a different period had been adjudicated in Companys favour by CESTAT DELHI.

- At its unit at Mahad the Excise department has filed an appeal against a demand of Rs.72,72(‘000) which had been dropped by the Commissioner, Central Excise. (The original show cause notice was received on 17.2.2002 and related to imposition of Excise Duty on recovery of freight charges, detention charges etc separately by the company and non-inclusion of the same)

- The Company had received for its unit at Gurgaon Demand Notice from Excise Department for Rs.10,00(000) for penalty and deposited Rs,2,50(000) under protest

3 Purchases are net of the incentives received during the year from the suppliers.

4 Current Assets, Loans and Advances :

In the opinion of the Board, the Current Assets, Loans and Advances have a value on realization in the ordinary course of business, atleast equal to the amount stated in the Balance Sheet.

5 The Company is engaged in the manufacture of PET bottles & jars and there is no separate reportable segment as per the Accounting Standard 17 on Segment Reporting notified in the Companies (Accounting Satandard) Rules, 2006.

6 Related party Disclosures:

i) In accordance with the Accounting Standard on " Related Party Disclosures" (AS-18), the disclosures in respect of related parties and transactions with the related parties, carried out in the normal course of the business, as identified and certified by the management, are as follows:-

a) Key Management Personnel

Mr. Chand Seth - Chairman & Managing Director

Mr. Harish Seth - Vice Chairman & Managing Director

Mr. Varun Seth - Whole Time Director

b) Relatives of Key Management personnel and their enterprises where transactions have taken place.

Mrs. Suneeta Seth

Mr. Udit Seth

c) Other related parties where control exists Amit Apartments Ltd

Beta Finance & Trading Pvt Ltd

Emperor Travels & Tours Pvt Ltd

Gama Investments Pvt Ltd

Pearl Apartments Ltd

Pacific Pearl Finance and Leasing Ltd

Pearl Engineering Polymers Ltd

Pearl International Tours & Travels Ltd

Theta Investments Pvt Ltd

8 Provision for Income Tax has been made on the basis of Book Profit u/s 115JB of the Income Tax Act. In view of the deduction available u/s 80-IC of the Income T ax Act, MAT credit availed amounting to Rs.123.81 lacs till the previous year has been reversed to the Profit & Loss A/c.

9 In accordance with the Central Capital Investment Subsidy Scheme 2003, the Company has received Capital Subsidy of Rs.30.00 lacs, during the year, in respect of its Baddi Unit. The same has been credited to Capital Reserve Account.

10 (a) Disclosure for operating leases under Accounting Standard 19 "Lease". The Company has taken various residental flats/godowns/office premises (including furniture and fittings, there in as applicable) under operating lease or leave and licence agreements. These are generally not non-cancellable and range between 11 months and 3 years under leave and license, or longer for other leases and are renewable by mutual consent on mutually agreeable terms. The Company has given refundable interest free security deposits in accordance with the agreed terms. No contingent rents are recognised in the P&L Account.

(b) The Company has leased facilities under non-cancellable operation lease. Lease rent amounting to Rs.56,62(000) (Previous Year Rs.Nil) has been charged to Profit & Loss Account.

11 Previous Year figures have been recasted / rearranged, wherever considered necessary to conform to current years presentation.

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Mar 31, 2009

1 Purchases are net of the incentives received during the year from the suppliers

2 Current Assets Loans and Advances:

In the opinion of the Board trie Current Assets Loans and Advances have a value on realization in the ordinarycourse of business atleast equal to the amount stated in the Balance Sheet.

3 Balances of Sundry Debtors Loans & Advances and Sundry Creditors are subject to confirmation by the parties

4 The Company is engaged in the manufacture of PET bottles & jars and there is no separate reportable segment as per the Accounting Standard 17 on Segment Reportingnotified in the Companies (Accounting Satandard) Rules 2006

5 Related party Disclosures:

i) In accordance with the Accounting Standard on " Related Party Disclosures" (AS-18) the disclosures in respect of related parties and transactions with the related parties carried out in the normal course of the business as identified and certified by the management are as follows:-

a) Key Management Personnel c) Other related parties where control exists

Mr Chand Seth - Chairman & Managing Director Amit Apartments Ltd Mr

Harish Seth - Vice Chairman & Managing Director Beta Finance & Trading Pvt Ltd

Mr Varun Seth - Whole Time Director Emperor Travels & Tours Pvt Ltd

Gama Investments Pvt Ltd

Pearl Apartments Ltd



b) Relatives of Key Management personnel and their enterprises where transactions have taken place

Pacific Pearl Finance and Leasing Ltd Pearl Engineering Polymers Ltd Pearl International Tours & Travels Ltd

Mr Krishen Seth Theta Investments Pvt Ltd Mrs Suneeta Seth Mr Udit Seth

6 The Company has earned taxable profits for the last Five years and barring unforeseen circumtances the management is hopeful that the Company would earn sufficient taxable income in subsequent years to wipeout unabsorbed depreciation and will be entitled to credit of taxes paid under section 115JB (MAT) of the Income Tax Act

7 Disclosure for operating leases under Accounting Standard 19 "Lease" The Company has taken various residental flats/ godowns/office premises (including furniture and fittings there in as applicable) under operating lease or leave and licence agreements These are generally not non-cancellable and range between 11 months and 3 years under leave and license or longer for other leases and are renewable by mutual consent on mutually agreeable terms The Company has given refundable interest free security deposits in accordance with the agreed terms No contingent rents are recognised in the P&LAccount

8 Previous Year figures have been recasted / rearranged wherever considered necessary to conform to current years presentation