Pet Plastics Ltd Forensic Report - SOIC x StockScans Report

as of Aug 2026

Pet Plastics Ltd’s record shows seven consecutive unqualified audit opinions, but those clean opinions sit alongside repeated auditor resignations, a loss-making year driven by exceptional items, and a proposed ₹50 crore loan to a promoter-connected entity that is more than double annual turnover. The company is also seeking shareholder approval to borrow up to ₹200 crore while reporting no financial liabilities at all.

Key findings

  1. Company proposes ₹50 crore promoter loan while reporting a ₹20.20 crore loss Critical - The FY2025-26 annual report proposes an unsecured, repayable-on-demand loan of ₹50 crore to Penganga Sakhar Karkhana Private Limited, a party related by common directorship with Managing Director Abhinath Shinde, equal to 210.16% of annual consolidated turnover of ₹23.79 crore. This comes after five straight years of “no related party transactions” disclosures, while the FY2025-26 report proposes related party transactions aggregating ₹101.02 crore for FY2026-27. In FY2023-24, the company wrote down ₹3.99 crore of promoter-group advances by 87.5%, selling them for ₹50 lakh.
  2. Statutory auditor resigned mid-term for the second time in four years Major - M/s. Maheshwari & Co. resigned on 14 August 2025, roughly two years before its five-year term was to end. The Board appointed M/s. N K Mittal & Associates to fill the casual vacancy on 29 September 2025, and now recommends a five-year term through FY2030-31. The FY2022-23 and FY2021-22 CARO reports both note that the statutory auditor resigned during the year, with the auditor considering issues raised by the outgoing auditors.
  3. Seven clean opinions, but repeated Emphasis of Matter and FY2026 cash losses of ₹14.17 crore Major - The auditor issued unqualified opinions for FY2019-20 through FY2025-26, with no Key Audit Matters communicated from FY2022-23 onward. However, the FY2025-26 report states the company incurred cash losses of ₹14.17 crore, and every year from FY2021-22 through FY2024-25 carried an Emphasis of Matter on unreconciled balances and merchant trading. The secretarial audit has been qualified every year, including five qualifications in FY2024-25 and a trading suspension since March 2018 noted in FY2020-21.
  4. Subsidiary acquired by converting a loan, held six months, sold at a ₹5.98 crore loss Major - The company converted a pre-existing ₹11.71 crore inter-corporate loan into equity of Exuberant Systems Private Limited on September 30, 2025, making it a subsidiary with no fresh capital infusion. It sold the entire stake to ANS Buggy LLP on March 31, 2026 for ₹4.68 crore, booking a net loss of ₹5.98 crore, and as of that date had neither a subsidiary nor an associate. A new subsidiary, Penganga Sakhar Karkhana Private Limited, was acquired on August 10, 2026.
  5. FY2025-26 loss of ₹13.97 crore driven by ₹8.26 crore of exceptional items Major - The standalone loss before exceptional items was ₹4.54 crore, which became ₹13.97 crore after ₹8.26 crore of exceptional losses, versus a profit of ₹14.53 lakh in FY2024-25. The exceptional items comprised a ₹7.02 crore loss on the subsidiary sale and a ₹1.23 crore loss on factoring transactions. The company has not recognised deferred tax assets in any year from FY2021-22 through FY2024-25, citing prudence.
  6. Promoter control changed via a 75.10% open offer and ₹40 crore warrant issue, with no director remuneration for years Major - Promoter Abhinath Shinde increased his holding from 14.08% to 57.18% through share purchases in June 2025, triggering a mandatory open offer for up to 75.10% of voting capital. The Board approved a preferential issue of up to 4 crore convertible warrants at ₹10 each, aggregating ₹40 crore, on 14 August 2026. Neither the Managing Director nor any Whole-time Director received remuneration in any year from FY2019-20 through FY2025-26, and all Independent Directors’ IICA registrations expired after FY2019-20.
  7. Sustained regulatory non-compliance across seven years, including BSE suspension and SEBI penalties Major - The company was suspended from trading on BSE from March 2018 until June 1, 2022. The FY2020-21 secretarial audit reported seven qualifications, including promoters’ shares not in demat form and violation of Section 139 on auditor rotation. The FY2024-25 secretarial audit reported four qualifications, including failure to maintain a Structured Digital Database under SEBI PIT Regulations, and the FY2025-26 audit reported three, including a pending compliance process on the name change to Bharatam Ventures Limited. The company paid a SEBI penalty of ₹65,722 in FY2019-20.

What to watch

Bottom line: This is a record of clean audit opinions attached to a company whose financial statements repeatedly disclose unreconciled balances, whose auditor has resigned twice in four years, and whose reported loss is driven by transactions structured around a subsidiary held for six months. The risk is concentrated in related-party dealings and undisclosed debt capacity: a ₹50 crore loan to a promoter-connected entity, a ₹40 crore warrant issue, and a prior borrowing approval whose current drawdown remains undisclosed. Watch the shareholder votes at the 41st AGM and whether the company draws on that borrowing capacity.