Shri Venkatesh Refineries Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

Corporate Information

Shri Venkatesh Refineries Limited was incorporated on 28th February 2003 and is having Registered Office
at GAT No. 16, UMARDE Erandol, Jalgaon. The Company is engaged in the business of manufacturing as
well as marketing of Soyabean Oil, Cotteonseed Oil, Edible Oil, Cooking Oil and their by-products. It is also
involved in Production, Processing and Preservation of Soyabean Oil and Palm Oil.

NOTE ''1'' SIGNIFICANT ACCOUNTING POLICIES

A. Basis of Presentation

The accounts have been prepared using historical cost convention and on the basis of a going concern,
with revenues recognised and expenses accounted for on accrual (including for committed
obligations), in accordance with the accounting standard prescribed in the Companies (Accounting
Standards) Rules, 2006 issued by the Central Government, in consultation with the National Advisory
Committee on Accounting Standards, to the extent applicable. Insurance and other claims are
accounted for, as and when admitted by the appropriate authorities. Where changes in presentation
are made, comparative figures for the previous year are regrouped accordingly.

B. Classification of Assets and Liabilities as Current and Non-Current:

All assets and liabilities have been classified as current & non-current as per Company''s normal
operating cycle and other criteria set out in the Schedule III of the Companies Act, 2013. Based on the
nature of services and time between acquisition of assets for rendering of services and their
realization in cash and cash equivalents, operating cycle is less than 12 months. However, for the
purpose of current / non- current classification of assets and liabilities 12 months have been
considered as its operating cycle.

C. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to
make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses,
assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period.
Although these estimates are based on the management''s best knowledge of current events and
actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a
material adjustment to the carrying amounts of assets or liabilities in future periods.

D. Property Plant and Equipment
Tangible Fixed Assets:

a) "Property, plant and equipment are stated at cost of acquisition / construction (or revalued amounts
as the case maybe) less accumulated depreciation (amortization if applicable) and where applicable
accumulated impairment losses. Gross carrying amount of all property, plant and equipment are
measured using cost model (except land and building)."

b) Cost of an item of property, plant and equipment includes purchase price including non- refundable
taxes and duties, borrowing cost directly attributable to the qualifying asset, any costs directly
attributable to bringing the asset to the location and condition necessary for its intended use and the
present value of the expected cost for the dismantling/decommissioning of the asset.

c) Subsequent expenditure related to an item of fixed asset are added to its book value only if they
increase the future benefits from the existing asset beyond its previously assessed standard of
performance. Parts (major components) of an item of property, plant and Equipments having different
useful lives are accounted as separate items of property, plant and Equipments. Likewise, when a major
inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a
replacement if the recognition criteria are satisfied. All other repair and maintenance costs are
recognised in the statement of profit and loss as incurred.

d) Capital work-in-progress comprises of cost incurred on property, plant and equipment under
construction/acquisition that are not yet ready for their intended use at the Balance Sheet Date.

e) Property, plant and equipment are eliminated from financial statement either on disposal or when
retired from active use. Assets held for disposal are stated at net realizable value. Losses arising in case
of retirement of property, plant and equipment and gains or losses arising from disposal of property,
plant and equipment are recognised in the Statement of Profit and Loss in the year of occurrence.

f) After recognition as an asset, an item of property, plant and equipment whose fair value can be
measured reliably shall be carried at a revalued amount, being its fair value at the date of the
revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment
losses. Revaluations shall be made with sufficient regularity to ensure that the carrying amount does
not differ materially from that which would be determined using fair value at the end of the reporting
period. If an item of property, plant and equipment is revalued, the entire class of property, plant and
equipment to which that asset belongs shall be revalued.

g) "An increase in the carrying amount of an asset arising on revaluation should be credited directly to
owners'' interests under the heading of revaluation surplus However, the increase should be recognised
in the statement of profit and loss to the extent that it reverses a revaluation decrease of the same asset
previously recognised in the statement of profit and loss.

A decrease in the carrying amount of an asset arising on revaluation should be charged to the statement
of profit and loss. However, the decrease should be debited directly to owners'' interests under the
heading of revaluation surplus to the extent of any credit balance existing in the revaluation surplus in
respect of that asset."

E. Investments

Current investments are carried at lower of cost or fair value, computed category-wise. Non-Current
investments are stated at cost. Provision for diminution in the value of Non-Current investments is
made only if such a decline is other than temporary.

F. Depreciation

a) Depreciation is charged on Property Plant and Equipment except on Land, as per the Straight Line
Method on all the assets situated at the Company''s premises at GAT No. 16, UMARDE Erandol, Jalgaon.

b) Depreciation on additions/ deductions to Fixed Assets has been on Pro-rata basis as per their use
in the year.

c) Depreciation on the property, plant and equipment is provided over the useful life of the asset,
which is as follows:

Category of Asset Useful Life

Factory Building 30 Years

Office Building & Flat 60 Years

Plant and Machinery 25 Years

Equipment 10 Years

Computers 3 Years

Vehicles/Motor Cars 6 Years

G. Inventories

a) Raw Materials and Packing Materials are valued ''at Cost'' on FIFO basis. ''Cost'' includes all duties, taxes
and other expenses incurred to bring the inventories to their present location and condition, except
duties and taxes which are subsequently recoverable form the taxing authorities.

b) Finished goods produced by the Company are valued at lower of cost or net realisable value on FIFO
basis.

c) Semi-finished goods have been valued at Raw Material cost increased by a proportion of overheads
in consonance with the stage of completion as certified by the management.

d) Stock of goods purchased for resale purposes are valued at their acquisition cost inclusive of all
duties and taxes.

H. Revenue Recognition:

a) Revenue/Income and Cost/Expenditure are generally accounted for on accrual as they are earned or
incurred, except in case of significant uncertainties.

b) Sale of goods is recognized on transfer of property in goods or on transfer of significant risks and
reward of ownership to the buyer, which is generally on despatch of goods.

c) Interest income is recognized on a time proportion basis taking into account the amount outstanding
and the interest rate applicable. Dividend income is recognized when the right to receive payment is
established.

I. Employee Benefits

a) Short term employee benefits:

All employee benefits falling due within twelve months of rendering the service are classified as short¬
term employee benefits, which include benefits like salaries, short term compensated absences,
expected cost of performance incentives, ex-gratia etc. are recognized as expense in the period in which
the employee renders the related service.

b) Long term employee benefits:

Long term employee benefits including compensated absences that are not expected to occur within
twelve months after the end of the period in which the employee renders related services are
recognized as a liability at the present value of the defined benefit obligation based on actuarial
valuation (under projected unit credit method) carried out at the Balance Sheet Date.

c) Post Employment Benefits:

"i) Defined-contribution plans:

The Company has defined contribution plans (where Company pays pre-defined amounts and does not
have any legal or informal obligation to pay additional sums) for post employment benefits (viz.

Provident Fund), the Company''s contributions thereto are charged to Profit and Loss Account every
year."

"ii) Defined-benefit plan:

The Company has a defined benefit plan (viz., Gratuity) for employees, the liability for which is
determined on the basis of valuation carried out by an independent actuary (under projected unit
credit method) at the Balance Sheet date.”

iii) Actuarial gains and losses in respect of post-employment and other long term benefits are charged
to the Profit and Loss Statement.

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Mar 31, 2024

Background

Shri Venkatesh Refineries Limited was incorporated on 28th February 2003 and is having Registered Office at GAT No. 16, UMARDE Erandol, Jalgaon. The Company is engaged in the business of manufacturing as well as marketing of Soyabean Oil, Cotteonseed Oil, Edible Oil, Cooking Oil and their by-products. It is also involved in Production, Processing and Preservation of Soyabean Oil and Palm Oil.

NOTE''1'' SIGNIFICANTACCOUNTING POLICIESA. Basis of Presentation

The accounts have been prepared using historical cost convention and on the basis of a going concern, with revenues recognised and expenses accounted for on accrual (including for committed obligations), in accordance with the accounting standard prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government, in consultation with the National Advisory Committee on Accounting Standards, to the extent applicable. Insurance and other claims are accounted for, as and when admitted by the appropriate authorities.

Where changes in presentation are made, comparative figures for the previous year are regrouped accordingly.

B. Fixed Assets

a) Fixed Assets are recorded at cost of acquisition / construction less accumulated depreciation and impairment losses, if any. Cost comprises of the purchase price and any attributable cost of bringing the assets to its working condition for its intended use, but excluding Cenvat/Service tax/Value Added Tax credit availed.

b) Expenditure relating to existing fixed assets is added to the cost of the assets where it increases the performance/life of the assets as assessed earlier.

c) Fixed assets are eliminated from financial statements, either on disposal or when retired from active use. Generally, such retired assets are disposed off, soon thereafter.

d) Borrowing Cost directly attributable to acquisition / construction of fixed asset which necessarily take a substantial period of time to get ready for their intended use are capitalised.

C. Investments

Long Term Investments are stated at cost less provision, if any, for decline other than temporary

in their Value.

D. Depreciation

a) Depreciation is charged on fixed assets except on Land, as perthe Straight Line Method on all the assets situated at the Company’s premises at GAT No. 16, UMARDE Erandol, Jalgaon.

b) Depreciation on additions/ deductions to Fixed Assets has been on Pro-rata basis as per their use in the year.

E. Valuation of Inventories

a) Raw Materials and Packing Materials are valued ‘at Cost’ on FIFO basis. ‘Cost’ includes all duties, taxes and other expenses incurred to bring the inventories to their present location and condition, except duties and taxes which are subsequently recoverable form the taxing authorities.

b) Finished goods produced by the Company are valued at lower of cost or net realisable value on FIFO basis.

c) Semi-finished goods have been valued at Raw Material cost increased by a proportion of overheads in consonance with the stage of completion as certified by the management.

d) Stock of goods purchased for resale purposes are valued at their acquisition cost inclusive of all duties and taxes.

F. Recognition of Incomes:

a) Revenues/Incomes are generally accounted on accrual, as they are earned.

b) Sale of goods is recognized on transfer of property in goods or on transfer of significant risks and reward of ownership to the buyer, which is generally on despatch of goods.

G. Employee Benefits

Gratuity and Earned Privilege Leaves are the retirement benefits available to the employees and

the same have been determined on accrual basis and have been provided for in the books of

accounts.

H. Contingencies and Events Occurring after the date of Balance Sheet

Accounting for contingencies (gains and loss) arising out of contractual obligations are made only on the basis of mutual acceptances.

I. Foreign Currency Transactions

Transactions in foreign currency are recorded in Indian Rupees at the exchange rate prevailing on the date of the transactions. Exchange gains or losses on settlement, if any, are treated as income or expenditure respectively in the Profit and Loss Account except those relating to acquisition of fixed assets, if any, which are adjusted in the cost of such assets. Liabilities in foreign currency as well as receivables in foreign currency as on the date of the Balance Sheet have been restated at the rates of exchange prevailing as on the date of Balance Sheet. However, if the liabilities / receivable have been actually realized subsequently, the same have been recorded at that value.

J. Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognised in the period in which the results are known/materialised.

K. Accounting for Taxes on Income

a) Provision for taxation for the year under report includes provision for current tax as well as provision for deferred tax.

b) Provision for Current tax is made, based on tax estimated to be payable as computed under the various provisions of the Income TaxAct, 1961.

c) Deferred tax is recognised, subject to prudence, on timing differences between taxable income and accounting income that originate during the year and are capable of being reversed in one or more subsequent periods. Deferred tax assets are recognised only to the extent that there is reasonable certainty that future taxable income will be available against which such deferred tax assets can be realised.

d) Deferred Tax Liabilities / Assets are quantified using the tax rates and tax laws enacted or substantively enacted as on the balance sheet date.

L. Impairment ofAssets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An asset is impaired when the carrying amount of the asset exceeds the recoverable amount. An impairment loss is charged to the Profit & Loss Account in the year in which an asset is identified as impaired. An impairment loss recognised in prior accounting periods is reversed if there has been change in the estimate of the recoverable amount.

M. Borrowing Costs

Interest and other borrowing costs attributable to qualifying assets are capitalised. Other interest and borrowing cost are charged to revenue.

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Mar 31, 2023

Background

Shri Venkatesh Refineries Limited was incorporated on 28th February 2003 and is having Registered Office at GAT No. 16, UMARDE Erandol, Jalgaon. The Company is engaged in the business of manufacturing as well as marketing of Soyabean Oil, Cotteonseed Oil, Edible Oil, Cooking Oil and their by-products. It is also involved in Production, Processing and Preservation of Soyabean Oil and Palm Oil.

NOTE''1'' SIGNIFICANTACCOUNTING POLICIESA. Basis of Presentation

The accounts have been prepared using historical cost convention and on the basis of a going concern, with revenues recognised and expenses accounted for on accrual (including for committed obligations), in accordance with the accounting standard prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government, in consultation with the National Advisory Committee on Accounting Standards, to the extent applicable. Insurance and other claims are accounted for, as and when admitted by the appropriate authorities.

Where changes in presentation are made, comparative figures for the previous year are regrouped accordingly.

B. Fixed Assets

a) Fixed Assets are recorded at cost of acquisition / construction less accumulated depreciation and impairment losses, if any. Cost comprises of the purchase price and any attributable cost of bringing the assets to its working condition for its intended use, but excluding Cenvat / Service tax/ValueAdded Tax credit availed.

b) Expenditure relating to existing fixed assets is added to the cost of the assets where it increases the performance/life of the assets as assessed earlier.

c) Fixed assets are eliminated from financial statements, either on disposal or when retired from active use. Generally, such retired assets are disposed off, soon thereafter.

d) Borrowing Cost directly attributable to acquisition / construction of fixed asset which necessarily take a substantial period of time to get ready for their intended use are capitalised.

C. Investments

Long Term Investments are stated at cost less provision, if any, for decline other than temporary

in theirValue.

D. Depreciation

a) Depreciation is charged on fixed assets except on Land, as perthe Straight Line Method on all the assets situated at the Company’s premises at GAT No. 16, UMARDE Erandol, Jalgaon.

b) Depreciation on additions/ deductions to Fixed Assets has been on Pro-rata basis as per their use in the year.

E. Valuation of Inventories

a) Raw Materials and Packing Materials are valued ‘at Cost’ on FIFO basis. ‘Cost’ includes all duties, taxes and other expenses incurred to bring the inventories to their present location and condition, except duties and taxes which are subsequently recoverable form the taxing authorities.

b) Finished goods produced by the Company are valued at lower of cost or net realisable valueon FIFO basis.

c) Semi-finished goods have been valued at Raw Material cost increased by a proportion of overheads in consonance with the stage of completion as certified by the management.

d) Stock of goods purchased for resale purposes are valued at their acquisition cost inclusive of all duties and taxes.

F. Recognition of Incomes:

a) Revenues/Incomes are generally accounted on accrual, as they are earned.

b) Sale of goods is recognized on transfer of property in goods or on transfer of significant risks and reward of ownership to the buyer, which is generally on despatch of goods.

G. Employee Benefits

Gratuity and Earned Privilege Leaves are the retirement benefits available to the employees and

the same have been determined on accrual basis and have been provided for in the books of

accounts.

H. Contingencies and Events Occurring after the date of Balance Sheet

Accounting for contingencies (gains and loss) arising out of contractual obligations are made only on the basis of mutual acceptances.

I. Foreign Currency Transactions

Transactions in foreign currency are recorded in Indian Rupees at the exchange rate prevailing on the date of the transactions. Exchange gains or losses on settlement, if any, are treated as income or expenditure respectively in the Profit and Loss Account except those relating to acquisition of fixed assets, if any, which are adjusted in the cost of such assets. Liabilities in foreign currency as well as receivables in foreign currency as on the date of the Balance Sheet have been restated at the rates of exchange prevailing as on the date of Balance Sheet. However, if the liabilities / receivable have been actually realized subsequently, the same have been recorded at that value.

J. Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognised in the period in which the results are known/materialised.

K. Accounting for Taxes on Income

a) Provision for taxation for the year under report includes provision for current tax as well as provision for deferred tax.

b) Provision for Current tax is made, based on tax estimated to be payable as computed under the various provisions of the Income TaxAct, 1961.

c) Deferred tax is recognised, subject to prudence, on timing differences between taxable income and accounting income that originate during the year and are capable of being reversed in one or more subsequent periods. Deferred tax assets are recognised only to the extent that there is reasonable certainty that future taxable income will be available against which such deferred tax assets can be realised.

d) Deferred Tax Liabilities / Assets are quantified using the tax rates and tax laws enacted or substantively enacted as on the balance sheet date.

L. Impairment ofAssets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An asset is impaired when the carrying amount of the asset exceeds the recoverable amount. An impairment loss is charged to the Profit & Loss Account in the year in which an asset is identified as impaired. An impairment loss recognised in prior accounting periods is reversed if there has been change in the estimate of the recoverable amount.

M. Borrowing Costs

Interest and other borrowing costs attributable to qualifying assets are capitalised. Other interest and borrowing cost are charged to revenue.