1.1 Corporate Information

Petro Carbon and Chemicals Limited (the company) is a limited company domiciled in India and incorporated under
the provisions of the Indian Companies Act. The corporate identification number of the company is
L24110WB2007PLC120212. The company has been converted to Public Company from Private Company on 23rd
February 2024. The company is in the business of manufacturing Calcined Petroleum Coke at West Bengal.

1.2 Basis of Preparation of Accounts

The financial statements of the company have been prepared in accordance with generally accepted accounting
principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material
respects with the accounting standards specified under section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been
prepared on an accrual basis and under the historical cost convention on accrual basis.

1.3 Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires management to make estimates and
assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, revenues and
expenses and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and
assumptions used in the accompanying financial statements are based upon management’s evaluation of the relevant
facts and circumstances as of the date of financial statements which in management’s opinion are prudent and
reasonable. Actual results may differ from the estimates used in preparing the accompanying financial statements.
However, accounting estimates could change from period to period. Appropriate changes in estimates are made as
the Management becomes aware of changes in circumstances surrounding the estimates. Any revision to accounting
estimates is recognised prospectively in current and future periods and, if material, their effects are disclosed in the
notes to the financial statements.

1.4 Functional and Presentation Currency

These financial statements are presented in Indian Rupees, the company’s functional currency. All Financial information
presented in Indian Rupee has been rounded off to the nearest lakh as per the requirements of Schedule III of the Act
unless otherwise stated.

1.5 Rounding of amounts

All financial information presented in Indian Rupees has been rounded to the nearest Lakhs with two decimals.

1.6 Current and Non-current classification:

The Company presents assets and liabilities in the balance sheet based on current / non-current classification.

An asset is classified as current when it satisfies any of the following criteria:

i. it is expected to be realized in, or is intended for sale or consumption in, the Company’s normal operating cycle;

ii. it is held primarily for the purpose of being traded;

iii. it is expected to be realized within 12 months after the reporting date;

iv. it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12
months after the reporting date.

A liability is classified as current when it satisfies any of the following criteria:

i. it is expected to be settled in the Company’s normal operating cycle;

ii. it is held primarily for the purpose of being traded;

iii. it is due to be settled within 12 months after the reporting date; or

iv. The Company does not have an unconditional right to defer settlement of the liability for at least 12 months after
the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the
issue of equity instruments do not affect its classification.

Current assets/liabilities include current portion of non-current financial assets/liabilities respectively. All other assets/
liabilities are classified as non-current. Deferred tax are classified as non-current.

1.7 Operating cycle

Based on the nature of the operations and the time between the acquisition of assets for processing and their realization
in cash or cash equivalents, the Company has ascertained its operating cycle less than twelve months for the purpose
of current non-current classification of assets and liabilities.

1.8 Property, Plant and Equipment

Property, Plant and Equipment are carried at cost less accumulated depreciation. The total cost of assets comprises
its purchase price, freight, duties, taxes (net of claims) and any other incidental expenses directly attributable to
bringing the asset to the working condition for its intended use and interest on loans attributable to the acquisition of
assets up to the date of commissioning of assets.

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 the replaced part is derecognised.

Expenditure incurred after the property, plant and equipment have been put into operation, such as repairs and
maintenance, are charged to the Statement of Profit and Loss in the year in which the costs are incurred. Major shut¬
down and overhaul expenditure is capitalised as the activities undertaken improves the economic benefits expected to
arise from the asset.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item
of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount
of the asset and is recognised in Statement of Profit and Loss.

Expenditure during construction period

In case of new projects and substantial expansion of existing units, expenditure incurred including trial production
expenses net of revenue earned, and attributable interest and financing costs, prior to commencement of commercial
production/completion of project are capitalised. Costs associated with the commissioning of an asset and any obligatory
decommissioning costs are capitalised where the asset is available for use but incapable of operating at normal levels
until a year of commissioning has been completed. Revenue (net of cost) generated from production during the trial
period is capitalised. Assets in the course of construction are capitalised in the assets under Capital work in progress.
At the point when an asset is operating at management’s intended use, the cost of construction is transferred to the
appropriate category of property, plant and equipment and depreciation commences.

Capital work-in-progress

Capital work-in-progress includes cost of property, plant and equipment under installation/under development as at
the balance sheet date. Capital Expenditures on tangible assets for research and development is classified under
property, plant and equipment and is depreciated on the same basis as other property, plant and equipment. Property,
plant and equipment not ready for their intended use as on the balance sheet date are disclosed as “Capital work-in¬
progress”. Such items are classified to the appropriate category of property, plant and equipment when completed and
ready for their intended use. Advances given towards acquisition/ construction of property, plant and equipment
outstanding at each balance sheet date are disclosed as Capital Advances under “Long-Term Loans and Advances”

1.9 Intangible Assets

Intangible assets that are acquired by the Company, which have finite useful lives, are measured at cost less accumulated
amortization. Costs include expenditure that is directly attributable to the acquisition of the intangible assets. Intangible
Asset under development includes cost of development of new intangible assets to complete the assets as at the
balance sheet date.

Subsequent expenditure on intangible asset is capitalized only when it increases the future economic benefits embodied
in the specific asset to which it relates. All other expenditure are recognized in profit or loss as incurred.

Amortization is recognized in profit or loss on a straight-line basis over the estimated useful lives of intangible assets
from the date that they are available for use.

1.10 Impairment of Assets:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is
charged for when an asset is identified as impaired. The impairment loss recognized in prior accounting period is
reversed if there has been a change in the estimate of recoverable amount.

1.11 Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current
investments. All other investments are classified as long-term investments. Current investments are carried at lower of
cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However,
provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

1.12 Investments in Subsidiaries

A subsidiary is an entity controlled by the Company. Control exists when the Company has power over the entity, is
exposed, or has rights to variable returns from its involvement with the entity and has the ability to affect those returns
by using its power over the entity. Power is demonstrated through existing rights that give the ability to direct relevant
activities, those which significantly affect the entity’s returns.

The Company has accounted for its equity instruments in Subsidiaries at cost, less accumulated impairment, if any.
The cost comprises the price paid to acquire investment and directly attributable cost.

1.13 Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the
revenue can be reliably measured.

Sale of Goods

Revenue from sale of goods is recognized on transfer of all significant risks and rewards related to the ownership of such
goods to the buyer. Sales are stated net of trade discount, sales return, claims, duties and GST. Revenue is recognized
only when it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from sale of Electrical
Energy is recognised when delivered and measured periodically based on the bilateral contractual arrangements.

Interest income

Interest income is recognized on time proportion basis on interest rates implicit in the transaction.

Other Income

Insurance claims are accounted for on acceptance based on certainty of realisation. Other income is recognized
based on the contractual obligations on accrual basis. However Incomes and expenses, which are uncertain in nature,
are provided on acceptance basis.

1.14 Inventories

Inventories are valued at lower of cost and estimated net realizable value. Net realisable value represents the estimated
selling price for inventories less all estimated costs of completion and costs necessary to make the sale.

In case of finished goods, costs are calculated at direct material cost, conversion and other costs incurred to bring the
inventories to their present location and condition.

The basis of determining cost for various categories of inventories are as follows:

i) Raw Materials : Weighted Average Cost Method

ii) Packing Bags : Weighted Average Cost Method

iii) Stores & Spares : FIFO Method

1.15 Depreciation and Amortisation

Pursuant to enactment of Companies Act, 2013 (“the Act”) the company has reviewed and revised the estimated useful life
of the Property Plant and Equipment. Depreciation on Property Plant and Equipment is provided to the extent of depreciable
amount on the Straight Line Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule
II to the Companies Act, 2013 representing the management’s estimate of the useful life of these assets and following
consistency with previous year. Depreciation on additions to Property Plant and Equipment is provided on a pro-rata basis
from the date of put to use. The company has estimated residual value of the assets to be 5% of the cost of the asset.

Leasehold land and building is amortized over the period of lease.

1.16 Borrowing Cost

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of such
Property, Plant and Equipment. A qualifying asset is one that takes substantial period of time to get ready for intended use. All
other borrowing costs are recognized as expense in the Statement of Profit and Loss during the period in which they arise.

1.17 Accounting for Taxes on Income

i) Current Taxes

Provision of current tax is determined on the basis of taxable income and tax credits computed in accordance with
the provisions of the Income Tax Act, 1961. Current tax assets and liabilities are offset only if, the Company has a
legally enforceable right to set off the recognised amounts.

ii) Deferred Taxes

Deferred tax assets and liabilities are recognized by computing the tax effect on timing difference which arise
during the year and reverse in the subsequent periods. Deferred tax assets are recognized 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.

1.18 Earnings Per Share
Basic EPS

The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding
during the period. The weighted average number of equity shares outstanding during the period is adjusted for events
such as buyback of shares and issue of equity shares, if any, that have changed the number of equity shares outstanding
at the year end.

Diluted EPS

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of
all dilutive potential equity shares.

1.19 Cash Flow Statement

Cash flows are reported using the indirect method as per Accounting Standard 3, whereby profit / (loss) before
extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals
of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the
company are segregated. The Company’s Cash comprises cash on hand, at bank and demand deposits with banks.

1.20 Foreign Currency Transactions

i) Foreign Currency Transactions are recorded in the reporting currency which is Indian Rupee, at exchange rates
prevailing on the date of such transactions.

ii) Monetary items denominated in foreign currencies at year end are restated at year end rates. In case of items
which are covered by forward exchange contracts, the difference between the year end rate and rate on the date
of the contract is recognized as exchange difference and the premium paid on forward contracts is recognized
over the life of the contract.

iii) Foreign Currency assets and liabilities at the year end are realigned at the exchange rates prevailing at the year end
and the difference on realignment is recognized in the statement of profit and loss/fixed assets as the case may be.

iv) Any income or expense on account of exchange difference either on settlement or on translation is recognized in
the Statement of Profit and Loss.

1.21 Employee Benefits
Gratuity

The Company has an obligation towards gratuity which is a defined benefit retirement plan covering eligible employees.
The plan provides for lump sum payment to vested employees at retirement, at death while in employment of an
amount equal to 15 divided by 26 days salary payable for each completed years of service. The normal age of retirement
is 60 years and vesting occurs upon the completion of five years of service. The maximum limit of Gratuity is Rs. 20
lacs. The Company accounts for the liability of gratuity benefits payable in future based on an independent actuarial
valuation, carried out as the year end.

Provident Fund

The eligible employees of the company are entitled to receive benefits under the provident fund, a defined contribution
plan, in which both the employees and the company make monthly contributions at a specified percentage of the
covered employee’s salary (currently 12% of employee’s salary). The contribution as specified under the law is paid to
the recognized provident fund.

Others

Short Term employee benefits are recognized as an expense at the undiscounted amount in the account of the period
in which the related services are rendered. Liabilities for wages and salaries that expected to be settled within twelve
months after the end of the period in which they arise.

1.22 Lease

Lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership or if
the asset is leased for substantially entire life of the asset. Title may or may not eventually be transferred.

A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to
ownership. The Company has leasehold land under the arrangement of finance lease as the ownership will be transferred
at the end of lease term.

At the inception of a finance lease, the lessee should recognize the lease as an asset and a liability. Such recognition
should be at amount equal to the fair value of the leased asset at the inception of the lease. However, if the fair value
of the leased asset exceeds the present value of the minimum lease payments from the standpoint of the lessee, the
amount recorded as an asset and a liability should be the present value of the minimum lease payments from the
standpoint of the lessee. In calculating the present value of the minimum lease payments, the discount rate is the
interest rate implicit in the lease, if it is practicable to determine; if not, the lessee’s incremental borrowing rate should
be used.

Lease payments should be apportioned between the finance charge and the reduction of the outstanding liability. The
finance charge should be allocated to periods during the lease term to produce a constant periodic rate of interest on
the remaining balance of the liability for each period. Finance Charges are recognised as finance cost in the statement
of profit & loss account.