Accounting Policies of Pet Plastics Ltd. Company

Mar 31, 2024

1 MATERIAL ACCOUNTING POLICIES:

1.1 Corporate Information

Pet Plastics Limited (“the Company") is a public limited Company incorporated in India with its registered office in Panchratna
Building-2, 323, Charni Road, Opera House, Mumbai, Maharashtra 400004. The Company is listed on the BSE Limited (BSE).

The functional and presentation currency of the Company is Indian Rupee (“?") which is the currency of the primary economic
environment in which the Company operates and all values are rounded to the nearest lakhs (? 00,000), except when otherwise
indicated, amount in zero (0.00) represents amount below ? 500.

The audited standalone financial statements of the Company were subject to review and recommendation of Audit Committee and
approval of Board of Directors. On 30th May, 2024, the Board of Directors of the Company approved and recommended the
audited financial statements for consideration and adoption by the shareholders in its Annual General Meeting..

1.2 a) Basis of Accounting:

The standalone financial statements have been prepared to comply in all material aspects with the Accounting Standards notified
under Section 133 of Companies Act, 2013 (the “Act") as per Companies (Indian Accounting Standards (Ind AS) Rules, 2015 and
other relevant provisions of the Act and rules framed thereunder.

The standalone financial statements have been prepared on a historical cost convention and accrual basis, except for certain
financial assets and liabilities measured at fair value and plan assets towards defined benefit plans, which are measured at fair value.

The accounting policies are applied consistently to all the periods presented in the standalone financial statements.

b) Current non-current classification:

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle (twelve
months) and other criteria set out in the Schedule III to the Act.

1.3 Use of Estimates:

The preparation of standalone financial statement requires estimates and assumptions to be made and that affect the reported
amount of assets and liabilities on the date of the standalone financial statements and the reported amount of revenues and
expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the
results are known/materialised.

1.4 Property Plant and Equipment:

The Company has applied for the one time transition exemption of considering the carrying cost on the transition date i.e. 01 April
2016 as the deemed cost under Ind AS. Hence regarded thereafter as historical cost.

Freehold land is carried at cost. All other items of property, plant and equipment are stated at cost less depreciation and
impairment, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

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 carrying amount of any component accounted for as a separate asset is derecognised when replaced. All
other repairs and maintenance are charged to the Statement of Profit and Loss during the reporting period in which they are
incurred.

Depreciation is provided under the straight line method at the rates and in the manner prescribed in Part C of Schedule II to the
Companies Act, 2013, over their useful life., and management believe that useful life of assets are same as those prescribed in Part
C of Schedule II to the Act, except in case of Factory Building and Plant and Machinery at Factory premises, which has been
considered as certified by a Government Approved Valuer.

Useful life considered for calculation of depreciation for various assets class are as follows-

Asset Class Useful Life

Office Equipments 5 years

The residual values are not more than 5% of the original cost of the asset. The assets residual values and useful lives are reviewed,
and adjusted if appropriate, at the end of each reporting period.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its
estimated recoverable amount.

1.5 Investments and other financial assets:

Initial recognition

In the case of financial assets, not recorded at fair value through profit or loss (FVTPL), financial assets are recognised initially at
fair value plus transaction costs that are directly attributable to the acquisition of the financial asset. Purchases or sales of financial
assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way
trades) are recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in following categories:

(a) Financial Assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business model with an
objective to hold these assets 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. Interest
income from these financial assets is included in finance income using the effective interest rate ("EIR") method. Impairment gains
or losses arising on these assets are recognised in the Statement of Profit and Loss.

(b) Financial Assets measured at fair value through other comprehensive income (FVTOCI)

Financial assets are measured at fair value through other comprehensive income (FVTOCI) if these financial assets are held within
a business model with an objective to hold these assets in order to collect contractual cash flows or to sell these 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. Movements in the carrying amount are taken through OCI, except for the
recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognised in the
Statement of Profit and Loss.

Financial assets that do not meet the criteria for amortised cost or FVTOCI are measured at fair value through profit or loss

(FVTPL).

Impairment of Financial Assets

In accordance with Ind AS 109, the Company applies the expected credit loss ("ECL") model for measurement and recognition of
impairment loss on financial assets and credit risk exposures.

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivables. Simplified approach
does not require the Company to changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECL at
each reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines whether there has been a
significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12 month ECL is used to
provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period,
credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition,
then the entity reverts to recognising impairment loss allowance based on 12 month ECL.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the
cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR. Lifetime ECL are the expected
credit losses resulting from all possible default events over the expected life of a financial instrument. The 12 month ECL is a
portion of the lifetime ECL which results from default events that are possible within 12 months after the reporting date.

ECL impairment loss allowance (or reversal) recognised during the period is recorded as expense/ income in the Statement of
Profit and Loss.

De-recognition of Financial Assets

The Company de-recognises a financial asset only when the contractual rights to the cash flows from the asset expire, or it
transfers the financial asset and substantially all risks and rewards of ownership of the asset to another entity.

If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the
transferred asset, the Company recognizes its retained interest in the assets and an associated liability for amounts it may have to
pay.

If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues
to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.

Equity investments

All equity investments in the scope of Ind AS 109, Financial Instruments, are measured at fair value. For equity instruments (other
than inventories), the Company may make an irrevocable election to present the subsequent fair value changes in Other
Comprehensive Income (OCI). The Company makes such election on an instrument-by-instrument basis. The classification is
made on initial recognition and is irrevocable.

There is no recycling of the amounts from OCI to Statement of Profit or Loss, even on sale of investment.

Equity instruments included within the FVTPL (fair value through profit and loss) category are measured at fair value with all
changes in fair value recognised in the Statement of Profit or Loss.

Offsetting Financial Instruments

Financial assets are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

1.6 Financial Liabilities
Initial Recognition

Financial liabilities are classified, at initial recognition, as financial liabilities at FVTPL, loans and borrowings and payables as
appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of
directly attributable transaction costs.

Subsequent measurement
Financial liabilities at FVTPL

Financial liabilities at FVTPL include financial liabilities held for trading and financial liabilities designated upon initial recognition
as FVTPL. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near
term. Gains or losses on liabilities held for trading are recognised in the Statement of Profit and Loss.

Financial liabilities at amortised cost

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method.
Any difference between the proceeds (net of transaction costs) and the settlement or redemption of borrowings is recognised over
the term of the borrowings in the Statement of Profit and Loss.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral
part of the EIR. The EIR amortisation is included as finance costs in the Statement of Profit and Loss.

De-recognition of Financial Liabilities

Financial liabilities are de-recognised when the obligation specified in the contract is discharged, cancelled or expired. When an
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing
liability are substantially modified, such an exchange or modification is treated as de-recognition of the original liability and
recognition of a new liability. The difference in the respective carrying amounts is recognised in the Statement of Profit and Loss.

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently
enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and
settle the liabilities simultaneously.

1.7 Fair value measurement

The Company measures financial assets and financial liability at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset
or transfer the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is
measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market
participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by
using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and
best use. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are categorised within
the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a
whole:

- Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities;

- Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable;

- Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For assets and liabilities that are recognised in the standalone financial statements on a recurring basis, the Company determines
whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that
is significant to the fair value measurement as a whole) at the end of each reporting period.

The Company’s Valuation team determines the policies and procedures for both recurring fair value measurement, such as
derivative instruments and unquoted financial assets measured at fair value, and for non-recurring measurement.

1.8 Impairment of non-financial assets

Assessment is done at each Balance Sheet date to evaluate whether there is any indication that a non-financial asset may be
impaired. For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash inflows from
continuing use that are largely independent of the cash inflows from other assets or groups of assets, is considered as a cash
generating unit. If any such indication exists, an estimate of the recoverable amount of the asset/cash generating unit is made.
Assets whose carrying value exceeds their recoverable amount are written down to their recoverable amount. Recoverable amount
is higher of an asset’s or cash generating unit’s net selling price and its value in use. Value in use is the present value of estimated
future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. A
previously recognised impairment loss is increased or reversed depending on changes in circumstances. However, the carrying
value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was
no impairment.

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Mar 31, 2014

1. ACCOUNTING POLICIES:

i. The Company follows the mercantile system of Accounting recognizing both income and expenditure account on accrual basis.

ii. Financial statements are prepared in accordance with requirements of the Companies Act, 1956 under historical cost convention on accrual basis.

2. FIXED ASSETS:

Fixed Assets are stated at historical cost less accumulated depreciation.

3. REVENUE RECOGNITION:

Company''s earning is from Manufacturing of Raw Materials to Finish Goods i.e. Export Conversion, Manufacturing, Trading, Re-packaging, Re-labeling and Export Service Provider Activity from Kandla Special Economic Zone.

4. INVENTORIES:

Inventories are valued as under:

1) Raw materials:

Stores & Spares and other materials are valued at weighted average cost.

2) Process Stock:

Valued at cost of materials plus labour & other related overheads.

3) Finished Goods:

Valued at lower of cost or net reliable value.

5. INVESTMENTS:

Tong term investments are made through the company Factoring Business Division.

6. DEPRECIATION:

i) Depreciation on the Assets of the company have been provided on straight line method basis as per the rates prescribed under schedule XIV of the Companies Act, 1956.

ii) Depreciation on all the assets acquired / disposed off during the year is provided on prorata basis from the date of addition/deletion.

7. RETIREMENT BENEFITS:

i. Number or Employees in receipt of or entitled to receive remuneration aggregating to Rs.6,00,000/- if employed through out the year or Rs.50,000/- per month if employed for part of the year- 0.00 (Previous year- 0.00)

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Mar 31, 2013

1. ACCOUNTING POLICIES:

i. The Company follows the mercantile system of Accounting recognizing both income and expenditure account on accrual basis.

ii. ''Financial statements are prepared in accordance with requirements of the Companies Act, 1956 under historical cost convention on accrual basis.

2. FIXED ASSETS:

Fixed Assets are stated at historical cost less accumulated depreciation.

3. REVENUE RECOGNITION:

Company''s earning is from Manufacturing of Raw Materials to Finish Goods i.e. fixport Conversion, Manufacturing, Trading, Re-packaging, Re-labeling and Export Service Provider Activity from Kandla Special Economic Zone. D

4. INVENTORIES:

Inventories are valued as under:

1) Raw materials:

Stores & Spares and other materials are valued at weighted average cost.

2) Process Stock:

Valued at cost of materials plus labour & other related overheads.

3) Finished Goods:

Valued at lower of cost or net reliable value.

5. INVESTMENTS: .

Long term investments are made through the company Factoring Business Division.

6. DEPRECIATION:

i) Depreciation on the Assets of the company have been provided on straight line method basis as per the rates prescribed under schedule XIV of the Companies Act. 1956.

ii) Depreciation on all the assets acquired / disposed off during the year is provided on prorata basis from the date of addition/deletion.

7. RETIREMENT BENEFITS:

i. Number or Employees in receipt of or entitled to receive remuneration aggregating to Rs.6,00,000/- if employed through out the year or Rs.50,000/- per month if employ ;d for part of the year - 0.00 (Previous year - 0.00)

ii. Since there are no company employees, hence the question of paying & providing retirement benefit does not arise.

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Mar 31, 2011

1. ACCOUNTING POLICIES:

i. The Company follows the mercantile system of Accounting recognizing both income and expenditure account on accrual basis. ii. Financial statements are prepared in accordance with requirements of the Companies Act, 1956 under historical cost convention on accrual basis.

2. FIXED ASSETS:

Fixed Assets are stated at historical cost less accumulated depreciation.

3. REVENUE RECOGNITION:

Company's earning is from Manufacturing of Raw Materials to Finish Goods i.e. Export Conversion, Manufacturing, Trading, Re-packaging, Re-labeling and Export Service Provider Activity from Kandla Special Economic Zone.

4. INVENTORIES: Inventories are valued as under:

1) Raw materials:

Stores & Spares and other materials are valued at weighted average cost.

2) Process Stock:

Valued at cost of materials plus labour & other related overheads.

3) Finished Goods:

Valued at lower of cost or net reliable value.

5. INVESTMENTS:

Long term investments are made through the company Factoring Business Division.

6. DEPRECIATION:

i) Depreciation on the Assets of the company have been provided on straight line method basis as per the rates prescribed under schedule XIV of the Companies Act, 1956.

ii) Depreciation on all the assets acquired / disposed off during the year is provided on pro-rata basis from the date of addition/deletion.

7. RETIREMENT BENEFITS:

i. Number or Employees in receipt of or entitled to receive remuneration aggregating to Rs.6,00,000/- if employed through out the year or Rs.50,000/- per month if employed for part of the year – 0.00 (Previous year – 0.00) ii. Since there are no company employees, hence the question of paying & providing retirement benefit does not arise.

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Mar 31, 2010

1. The Company "follows the mercantile system of Accounting recognizing Both income and expenditure account on accrual basis.

ii. Financial statements are prepared in accordance with requirements of the Companies Act, 1956 under historical cost convention on accrual basis.

2. FIXED ASSETS:

Fixed Assets are stated at historical cost less accumulated depreciation.

3. REVENUE RECOGNITION:

Companys earning is from Manufacturing of Raw Materials to Finish Goods i.e. Export Conversion, Manufacturing, Trading, Repackaging, Relabeling and Export Service Provider Activity from Kandla Special Economic Zone.

4. INVENTORIES:

Inventories are valued as under:

1) Raw materials:

Stores & Spares and other materials are valued at weighted average cost.

2) Process Stock:

Valued at cost of materials plus labour & other related overheads.

3) Finished Goods:

Valued at lower of cost or net reliable value.

5. INVESTMENTS:

Long term investments are made through the company Factoring Business Division.

6. DEPRECIATION:

i) Depreciation on the Assets of the company have been provided on straight line method basis as per the rates prescribed under schedule XIV of the Companies Act, 1956.

ii) Depreciation on all the assets acquired / disposed off during the year is provided on pro rata basis from the date of addition/deletion.

7. RETIREMENT BENEFITS:

i. Number or Employees in receipt of or entitled to receive remuneration aggregating to Rs.6,00,000/ if employed through out the year or Rs.50,000/ per month if employed for part of the year 0.00 (Previous year 0.00)

ii. Since there are no company employees, hence the question of paying & providing retirement benefit does not arise.

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Mar 31, 2003

I. The Company follows the mercantile system of Accounting recognizing both income and expenditure account on accrual basis.

ii. Financial statements are prepared in accordance with requirements of the Companies Act, 1956 under historical cost convention on accrual basis.

2. FIXED ASSETS:

Fixed Assets are stated at historical cost less accumulated depreciation.

3. REVENUE RECOGNITION:

Companys earning is from Manufacturing of Raw Materials to Finish Goods i.e. Export Conversion, Manufacturing, Trading, Re-packaging, Re-labeling and Export Service Provider Activity from Kandla Special Economic Zone.

4. INVENTORIES:

Inventories are valued as under:

1) Raw materials:

Stores & Spares and other materials are valued at weighted average cost.

2) Process Stock:

Valued at cost of materials plus labour & other related overheads.

3) Finished Goods:

Valued at lower of cost or net reliable value.

5. INVESTMENTS:

There are no investments made during the year, hence the same have not been reflected in the books.

6. DEPRECIATION:

i) Depreciation on the Assets of the company have been provided on straight line method basis as per the rates prescribed under schedule XIV of the Companies Act, 1956.

ii) Depreciation on all the assets acquired / disposed off during the year is provided on pro- rata basis from the date of addition/deletion.

7. RETIREMENT BENEFITS:

i. Number or Employees in receipt of or entitled to receive remuneration aggregating to Rs.6,00,000/- if employed through out the year or Rs.50,000/- per month if employed for part of the year - NIL (Previous year - NIL)

ii. Since there are no company employees, hence the question of paying & providing retirement benefit does not arise.

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Mar 31, 2002

1. ACCOUNTING POLICIES:

i. The Company follows the mercantile system of Accounting recognizing both income and expenditure account on accrual basis.

ii. Financial statements are prepared in accordance with requirements of the Companies Act, 1956 under historical cost convention on accrual basis.

2. FIXED ASSETS:

Fixed Assets are stated at historical cost less accumulated depreciation.

3. REVENUE RECOGNITION:

Companys earning is from Manufacturing of Raw Materials to Finish Goods i. e. Export Conversion, Trading, Re-packaging and Re-labeling Activity from Kandla Special Economic Zone.

4. INVENTORIES:

Inventories are valued as under: 1) Raw materials:

Stores & Spares and other materials are valued at weighted average cost.