Accounting Policies of Technopack Polymers Ltd. Company

Mar 31, 2025

(a) Basis of Preparation

The financial statements have been prepared in accordance with the applicable Accounting
Standards notified under the Companies (Accounting Standards) Rules, 2021 and other
accounting principles generally accepted in India. These financial statements comply in all
material respects with the relevant provisions of the Companies Act, 2013.

The Company is listed on the SME Platform of Name of Exchange - e.g., NSE EMERGE / BSE
SME and, as per the Ministry of Corporate Affairs (MCA) Notification dated 16th February
2015, is exempted from the mandatory adoption of Indian Accounting Standards (Ind AS).
Accordingly, the Company has prepared its financial statements under the prevailing
Accounting Standards (AS) framework as applicable to Small and Medium-sized Companies.

The financial statements have been prepaspecial chars che remove red on a going concern
basis under the historical cost convention, unless otherwise stated.

(b) Use of Accounting Estimates

The preparation of financial statements in conformity with Indian GAAP requires
management to make judgments, estimates, and assumptions that affect the reported
amounts of assets, liabilities, income, expenses, and the accompanying disclosures as at the
reporting date.

These estimates and underlying assumptions are based on management’s best knowledge of
current events and circumstances and are reviewed on an ongoing basis. Revisions to
accounting estimates, if any, are recognized prospectively in the period in which the
estimates are revised and in future periods affected.

Due to the inherent uncertainties involved in making estimates, actual results may differ
from those estimates.

(c) Revenue Recognition

(As per AS 9 - “Revenue Recognition", under Companies (Accounting Standards) Rules, 2021,
applicable to companies not covered under Ind AS)

Revenue is recognized when it is reasonably certain that ultimate collection will occur, and
when significant risks and rewards of ownership of goods or services have been transferred
to the buyer, as per the terms of the contract.

Sale of Goods: Revenue from sale of goods is recognized when the goods are delivered and
the property in goods passes to the buyer, typically on dispatch or delivery, depending on
the agreed terms.

Other Operating Revenue: Any ancillary operating revenue is recognized on accrual basis
when the right to receive is established.

Interest Income: Recognized on a time proportion basis, using the effective interest rate
method.

Other Income: Recognized on accrual basis, unless the collection is uncertain.

All revenue is recognized net of Goods and Services Tax (GST) and other applicable indirect
taxes.

(d) Investments

(As per AS 13 - "Accounting for Investments” under Companies (Accounting Standards)
Rules, 2021)

Investments are classified as Current or Non-Current (Long-Term) based on the intended
holding period.

Non-Current / Long-Term Investments are carried at cost. A provision for diminution in
value is made if, in the opinion of the management, such decline is other than temporary in
nature.

Current Investments are carried at the lower of cost and fair value, determined individually
for each investment.

On disposal of an investment, the difference between the carrying amount and the net sale
proceeds is recognized as income or expense in the Statement of Profit and Loss.

(As per AS 10 - "Property, Plant and Equipment" under Companies (Accounting Standards) Rules,
2021)

Property, plant and equipment are stated at historical cost, net of accumulated depreciation
and impairment losses, if any. Historical cost includes: Purchase price, Import duties and
non-refundable taxes, Directly attributable costs to bring the asset to its working condition
for intended use. Subsequent expenditures are capitalized only if they result in enhanced
future economic benefits from the asset. Otherwise, such costs are recognized in the
Statement of Profit and Loss as incurred.

Assets individually costing Rs.5,000 or less are depreciated at 100% in the year of
acquisition.

Depreciation is provided using the Written Down Value (WDV) method in accordance with
the rates and useful lives specified in Schedule II of the Companies Act, 2013 or based on
management''s best estimate where different.

General Machinery: 18.10% WDV (15-year useful life)

Camera / Label Printer: 25.89% WDV

Low-use assets (e.g., furniture, office equipment): Custom rates per management estimate
Assets purchased close to year-end are depreciated proportionately.

The useful life and residual value of assets are reviewed annually and adjusted, if
appropriate.

Capitalization of Machinery Not Yet Put to Use

The following assets were capitalized during the year ended 31st March 2025 but were not
ready for intended use as at the Balance Sheet date. Accordingly, no depreciation has been
charged on these assets during the year:

CCM2 Machinery (Feb ''25)

CCM3 Machinery (Technopack)

PMV Machine (Feb ''25)

These assets are carried at cost under Property, Plant and Equipment and will be
depreciated commencing from the date they are available for use as per the Company''s
accounting policy in line with AS 10.

Disposal of Machinery (PET & CAP OLD):

The Company sold its PET & CAP OLD machinery during the financial year 2024-25. The
asset was used only up to 30th September 2024, and accordingly, depreciation was charged
on a pro-rata basis up to that date. The machinery was derecognized from the books upon
sale, and the gain arising on disposal (i.e., excess of sale proceeds over the net carrying
value) has been recognized under "Other Income" in the Statement of Profit and Loss in
accordance with the provisions of AS 10 - Property, Plant and Equipment.

(f) Inventories

(As per AS 2 - “Valuation of Inventories" under Companies (Accounting Standards) Rules, 2021)

Inventories are valued at the lower of cost and net realizable value (NRV). Cost is determined
using the First-In First-Out (FIFO) method.

Cost includes all costs of purchase, conversion, and other costs incurred in bringing the
inventories to their present location and condition.

Net Realizable Value (NRV) is the estimated selling price in the ordinary course of business,
less the estimated costs of completion and the costs necessary to make the sale.

The opening and closing inventory quantities, including any shortages or production losses,
are taken, valued, and certified by the management based on physical verification conducted
at or near the reporting date.

(g) Taxation

(As per AS 22 - “Accounting for Taxes on Income", under Companies (Accounting Standards) Rules,
2021)

Tax expense for the period comprises both current tax and deferred tax, and is recognized in
the Statement of Profit and Loss.

Current Tax is the amount of income tax payable on the taxable income for the year,
determined in accordance with the provisions of applicable tax laws.

Deferred Tax is recognized on all timing differences between the accounting income and
taxable income, subject to the principle of prudence for recognizing deferred tax assets
(DTAs).

Deferred Tax Assets are recognized and carried forward only when there is reasonable
certainty of availability of future taxable income against which such assets can be realized.
DTAs arising from unabsorbed depreciation and carry forward of losses are recognized only
if there is virtual certainty, supported by convincing evidence, of future taxable income.

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

The Company reassesses unrecognized deferred tax assets, if any, at each Balance Sheet date.
Offsetting:

Current tax assets and liabilities are offset only when there is a legally enforceable right to
set off, and the Company intends to settle on a net basis.

Deferred tax assets and liabilities are offset when they relate to the same governing taxation
laws and the Company has a legally enforceable right to set off current tax assets against
current tax liabilities.

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Mar 31, 2024

2. Significant accounting policies

(a) Basis of Preparation

Financial Statements have been prepared in compliance with the Accounting Standards notified by the Central Government in exercise of the power conferred under the Companies Act. 2013. read with the Rule 7 of Companies (Accounts) Rules, 2014 in respect of section 133 of the Companies Act. 2013 (the “Act") under historical cost convention on accrual basis All the assets and liabilities have been classified as current or non-current as per Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act 2013 Based on the nature of activities, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

(b) Use of Accounting Estimates

The preparation of the financial statements is in conformity with Indian GAAP (Generally Accepted Accounting Principles) which requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities as on the date of the financial statements. The estimates and assumptions made and applied in preparing the financial statements are based upon managements best knowledge of current events and actions as on the date of financial statements.

However due to uncertainties attached to the assumptions and estimates made actual results could differ from those estimates Any revision to accounting estimates is recognized prospectively in current and future periods.

(c) Revenue Recognition

(As per AS 9 ‘Revenue Recognition")

Revenue from sale of goods is recognized when significant risk and rewards of ownership of the goods have been passed to the buyer and it is reasonable to expect ultimate collection. Sale of goods is recognized net of GST and other taxes as the same is recovered from customers and passed on to the government.

(d) Investments

(As per AS 13 ‘Accounting for Investments")

Non-Current/ Long-term Investments are stated at cost Provision is made for diminution in the value of the investments, if. in the opinion of the management the same is considered to be otherthan temporary in nature. On disposal of an investment, the difference between carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss

Current investments are carried at lower of cost and fair value determined on an individual basis On disposal of an investment the difference between carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss.

(As per AS 10 ''Property. Plant & Equipment'')

Property, plant and equipment are stated at historical cost less accumulated depreciation, and accumulated impairment loss, if any. Historical cost comprises of the purchase price including duties and non-refundable taxes, borrowing cost if capitalization criteria are met, directly attributable expenses incurred to bring the asset to the location and condition necessary for it to be capable of being operated in the manner intended by management and initial estimate of decommissioning, restoring and similar liabilities.

Subsequent costs related to an item of property, pi ant and equipment are recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably The carrying amount of any component accounted for as a separate asset is derecognized when replaced All other repairs and maintenance are recognized in statement of profit and loss during the reporting period when they are incurred An item of property plant and equipment is derecognized on disposal or when no future economic benefits are expected from its use or disposal The gains or losses arising from de-recognition are measured as the difference between the net disposal proceeds and the

carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

Depreciation

Property, plant and equipment individually costing Rs. 5.000 or less are depreciated at 100% in the year in which such assets are ready to use Depreciation is calculated using the Written Down Value method over their estimated useful lives.

(f) Inventories

(As per AS 2 ''Valuation of Inventories'')

Opening & Closing Stocks as well as Quantitative details of the item traded, manufactured and shortage & production losses if any. are as taken, valued and certified by the Management. Inventories are valued at lower of Cost determined on RFO basis or Net Realizable Value

Cost comprises of all costs of purchase and other costs incurred in bringing the inventories to their present location and condition

Net realizable value is the estimated selling price in the ordinary course of business, less estimated cost necessary to make the sale

(g) Taxation

(As per AS 22 ''Accounting forTaxes on Income)

Tax expense for the period comprising current tax and deferred tax. are included in the determination of the net profit or loss for the period Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the taxation laws prevailing in the respective jurisdictions.

Deferred tax is recognized for all the timing differences, subject to the consideration of prudence in respect of deferred tax assets Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

At each Balance Sheet date the company reassesses unrecognized deferred tax assets, if any.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle the asset and the liability on a net basis.

Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing current tax and where the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same governing taxation laws.