Sun Retail Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

2. Significant Accounting Policies
Basis of Preparation of Financial Statements

The Financial Statements of the Company have been prepared and presented in accordance with the Generally Accepted Accounting
Principles in India (''Indian GAAP''). It comprises the Accounting Standards notified u/s 133 read with section 469 of the Companies
Act, 2013. The accounting policies have been framed, keeping in view the fundamental accounting assumptions of Going Concern,
Consistency and Accrual, and also the basic considerations of Prudence, Substance over form, and Materiality. Based on the nature
of products and the time between acquisition of assets and their realisation in cash and cash equivalents, the Company has
ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities. These
financial statements have been prepared on historical cost basis except certain items like Financial Leases and Defined Benefit Plans
are measured at fair value.

Use of Estimates

The preparation of financial statements requires the management to make certain estimates and assumptions that affect the
amounts reported in the financial statements and notes thereto. The management believes that these estimates and assumptions
are reasonable and prudent but the actual results may differ from them. They are reviewed on an on-going basis and any revision to
accounting estimates is recognised prospectively in current and future periods. Accounting estimates and assumptions that have a
significant effect on the amounts reported in the financial statements include:

i) Net Realisable value of items of Inventories

ii) Useful life and Residual value of Property, Plant and Equipment and Intangible Assets

iii) Defined Benefit obligations

iv) Deferred Tax asset or liability

v) Provisions for Trade Receivables

vi) Other Provisions and Contingencies

Property, Plant and Equipments

Property, plant and equipments are initially recognised at cost. Cost includes purchase price, taxes and duties and other costs
directly attributable to bringing the asset to the working condition for its intended use. However, cost excludes duties and taxes
wherever credit of such duties and taxes is availed. It is thereafter carried at its cost less accumulated depreciation and accumulated
impairment losses, if any.

Depreciation is provided under the ''Straight-line'' method as per the useful life specified in Schedule II to the Companies Act, 2013.
Residual values of assets are measured at not more than 5% of their original cost. For assets added or disposed during the year,
depreciation is charged on pro-rata basis from the date of addition or till the date of disposal. Depreciation on fixed assets is
calculated on WDV Basis .

Intangible Assets

Intangible assets which are purchased and have a finite useful life are measured at cost, less accumulated amortisation and
accumulated impairment losses, if any. Cost includes expenditure that is directly attributable to the acquisition of the intangible
asset. Subsequent expenditure on intangible assets is capitalised only when it increases the future economic benefits embodied in
the specific asset to which it relates. All other expenditure is recognised in the statement of profit and loss as incurred.

Investments

Long-term investments are valued at cost less provision for diminution in value, if the diminution is other than temporary. Current
investments are valued at lower of cost and fair value. Gain or loss arising on the sale of investments is computed as a difference
between carrying amount and the proceeds from sale, net of any expenses. Such gain or loss is recognised in the Statement of Profit
and Loss.

Inventories

Inventories are valued at the lower of cost and net realisable value. Cost is computed on a ''First In First Out'' basis.

Cost of raw materials and stores and spares includes cost of purchase and other costs incurred in bringing the inventories to their
present location and condition. The aforesaid items are valued atnet realisable value if the finished products in which they are to be
incorporated are expected to be sold at a loss. Cost of finished goods and work-in-progress include all costs of purchases, conversion
costs and other costs incurred in bringing the inventories to their present location and condition. The net realisable value is the
estimated selling price in the

ordinary course of business less the estimated costs of completion and estimated costs necessary to make the sale.

Cash and cash equivalents

All highly liquid financial instruments, which are readily convertible into known amount of cash that are subject to an insignificant
risk of change in value and having original maturities of three months or less from the date of purchase are considered to be cash
equivalents.

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Mar 31, 2024

NOTE: 1.1 -SIGNIFICANT ACCOUNTING POLICIES
Company Over View

Sun Retail Limited ("the company”) is a listed company domiciled in India and incorporated
under the provisions of the Companies Act, 1956. The company is engaged in the business of
trading into refined/filtered edible oils. The company is listed on Bombay Stock Exchange.

Basis for Preparation of Financial statements

These financial statements have been prepared in accordance with the generally accepted
accounting principles in India, based on going concern under the historical cost convention and
also on accrual basis. These financial statements comply, in all material aspects, with the
provisions the Companies Act, 2013 (to the extent applicable) and also accounting standards
prescribed by the Companies (Accounting Standards) Rules, 2006, which continue to be
applicable in respect of Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs.

All assets and liabilities have been classified as current or non-current as per the Company''s
normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013.
All the divisions of the Company have normal operating cycle of less than twelve months; hence
a period of twelve months has been considered for bifurcation of assets and liabilities into
current and non-current as required by Schedule III to the Companies Act, 2013 for preparation
of Financial Statements The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year, except for the change in accounting
policy explained below.

Use of Estimates

The preparation of financial statements is conformity with generally accepted accounting
principles require management to make assumptions and estimates, which it believes are
reasonable under the circumstances that affect the reported amounts of assets and liabilities
on the date of financial statements and the reported amounts of revenue and expenses during
the period. Actual results could differ from those estimates. Difference between the actual
results and estimates are recognized in the period in which the results are known /materialized.

Inventories

The inventories as at year end have been taken, valued & certified by the Directors of the
company. As informed by the Management, the valuation of the inventories has been made at
Cost (FIFO Method).

Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit or (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 based on the
available information.

Fixed assets

Fixed Assets are stated at cost less depreciation. Cost comprises of cost of acquisition and any
attributable cost of bringing the assets to the condition for its intended use. Gains or losses
arising from de-recognition of fixed assets 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 and Amortization

Depreciation on fixed assets is calculated on a WDV basis using the rates arrived at based on
the useful lives estimated by the management, or those prescribed under the Schedule II to
the Companies Act, 2013, whichever is higher. The company has used the following useful life
of assets to provide depreciation on its fixed assets.

Asset	Useful Life
Computer	3 Years
Office Equipment	5 Years
Factory Building	30 Years
Vehicle	10 Years
Software	3 Years

Impairment of Losses

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value.
An impairment loss is charged to the Profit and Loss Account in the year in which an asset is
identified as impaired. The impairment loss recognized in prior accounting period is reversed if
there has been any change in the estimate of recoverable amount.

Revenue Recognition

The principles of revenue recognition are given below:

• General systems of accounting is mercantile, accordingly the income/expenditure are
recognized on accrual basis on reasonable certainty concept.

• Sales of goods traded accounted net off Indirect Taxes as applicable.

• Dividend income is recognized when right to receive payment is established.

Amount due to Micro, Small and Medium Enterprise

a. Based on information available with the company in respect of MSME (as defined in the
Micro, Small and Medium Enterprises Development Act, 2006) there are no delays in
payment of dues to such enterprise during the year.

b. The identification of Micro, Small and Medium Enterprise Suppliers as defined under
"The Micro, Small and Medium Enterprises Development Act, 2006” is based on the
information available with the management. As Certified by the management, the
amounts overdue as on March 31, 2024 to Micro, Small and Medium Enterprises on
account of principal amount together with interest, aggregate to Rs. Nil

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Mar 31, 2018

Basis for Preparation of Financial statements

These financial statements have been prepared in accordance with the generally accepted accounting principles in India, on the basis of going concern under the historical cost convention and also on accrual basis. These financial statements comply, in all material aspects, with the provisions the Companies Act, 2013 (to the extent applicable) and also accounting standards prescribed by the Companies (Accounting Standards) Rules, 2006, which continue to be applicable in respect of Section 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs.

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. All the divisions of the Company have normal operating cycle of less than twelve months, hence a period of twelve months has been considered for bifurcation of assets and liabilities into current and noncurrent as required by Schedule III to the Companies Act, 2013 for preparation of Financial Statements The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

Use of Estimates

The preparation of financial statements is conformity with generally accepted accounting principles require management to make assumptions and estimates, which it believes are reasonable under the circumstances that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

Inventories

The inventories as at year end have been taken, valued & certified by the Directors of the company. As informed by the Management, the valuation of the inventories has been made at Cost (FIFO Method).

Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit or (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 based on the available information.

Fixed assets

Fixed Assets are stated at cost less depreciation. Cost comprises of cost of acquisition and any attributable cost of bringing the assets to the condition for its intended use. Gains or losses arising from de-recognition of fixed assets 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.

In the case of asset purchased on 08th December, 2017 Sale deed was not ready as on the date of signing of the report but consideration was paid so asset has been recognized in the books as it was ready to use and depreciation has been calculated accordingly.

Depreciation and Amortization

Depreciation on fixed assets is calculated on a SLM basis using the rates arrived at based on the useful lives estimated by the management, or those prescribed under the Schedule II to the Companies Act, 2013, whichever is higher. The company has used the following rates to provide depreciation on its fixed assets.

(ln the case of New Plant & Machinery purchased as on 08th December, 2017 the useful life of the asset has been considered as per the valuation report and accordingly useful life of the Plant & Machinery has been considered 5 Years, 8 Years & 10 Years.)

Impairment of assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been any change in the estimate of recoverable amount.

Revenue Recognition

The principles of revenue recognition are given below:

- General systems of accounting is mercantile, accordingly the income/expenditure are recognized on accrual basis on reasonable certainty concept. .

- Sales of goods traded accounted net off VAT receivable and payable.

- Dividend income is recognized when right to receive payment is established.

Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Liabilities which are of contingent nature are not provided but are disclosed at their estimated amount in the notes forming part of the accounts.

Investments

Investments that are readily realizable and intended to be held for not more than a year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments. Current investments are measured at cost or market value whichever is lower, determined on an individual investment basis. Long Term Investments are stated at cost. Provision for diminution in the value of long term investment is made only if such a decline is other than temporary.

Event occurring after the Balance Sheet Date

No significant events which could affect the financial position as on 31st March, 2018, to a material extent have been reported by the management, after the Balance Sheet date till the signing the report.

Prior period Items

Prior period expenses/income is accounted for under respective heads. Material items, if any, are disclosed separately by way of note.

Preliminary Expense

Preliminary expenses as well as Pre - Operative expenses have been written off l/5th in the period from 1st April, 2017 to 31st March, 2018.

Earning Per Share

The earning considered in ascertaining the Company’s Earnings Per Share (EPS) comprises the net profit after tax. The number of shares used in computing Basic and diluted EPS is weighted average number of shares outstanding during the year as per the guidelines of AS-20 and calculation of EPS is shown in notes to account.