NOTE 1 - BACKGROUND
Shanti Guru Industries Limited (Formerly known as RCL Retail Limited) was originally incorporated as
a private limited company on 29.09.2010 in the State of Tamil Nadu which was subsequently
converted to public company on 23.03.2011 having its registered office in Chennai. The Company is
engaged in the business of trading processed foods
NOTE 2 - BASIS OF PREPARATION AND PRESENTATION OF FINANCIAL STATEMENTS
i. The financial statements have been prepared in accordance with the Indian Accounting Standards
(IND AS) notified under the Companies (Indian Accounting Standards) Rules 2015 as amended from
time to time.
ii. The significant accounting policies used in preparing the financial statements are set out in Note
No. 4
NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES
3.1 Property, Plant and Equipment (PPE)
(i) Property, Plant and Equipment are stated at cost of acquisition net of accumulated depreciation/
amortization and impairment losses if any, except free hold land which is carried at cost less
impairment losses if any. The cost comprises purchase prices, borrowing cost if capitalization criteria
are met and directly attributable cost of bringing the asset to its working condition for the intended
use.
(ii) The Company identifies the significant parts of plant and equipment separately which are
required to be replaced at intervals. Such parts are depreciated separately based on their specific
useful lives. The cost of replacement of significant parts are capitalized and the carrying amount of
replaced parts are de-recognized. When each major inception/ overhauling is performed, its cost is
recognized in the carrying amount of the item of property, plant and equipment as a replacement if
the recognition criteria are satisfied. Any remaining carrying amount of the cost of the previous
inspection/ overhauling (as distinct from physical parts) is de- recognized.
(iii) Other expenses on fixed assets, including day-to-day repair and maintenance expenditure and
cost of replacing parts that does not meet the capitalization criteria in accordance with IND AS 16
are charged to the Statement of Profit and Loss for the period during which such expenses are
incurred.
(iv) PPEs are eliminated from the financial statements on disposal or when no further benefit is
expected from its use or disposal. Gains or losses arising from disposal of plant, property and
equipment are measured as the difference between the net disposal proceeds and the carrying
amount of such assets are recognized in the statement of profit and loss.
(v) Depreciation for plant and machinery has been provided on Written down value method.
(vi) The residual values, useful lives and methods of depreciation of property, plant and equipment
are reviewed at each reporting date and adjusted prospectively, if appropriate.
3.2 Current or Non-Current classification
An asset or liability is classified as current if it satisfies any of the following conditions:
i) Asset or liability is expected to be realized in the company's normal settlement cycle.
ii) Asset is intended for sale or consumption.
iii) Asset or liability is held primarily for the purpose of trading.
iv) Asset or liability is expected to be realized or settled within twelve months after reporting period.
3.3 Intangible assets
i) The cost of computer software that are installed are accounted at cost of acquisition of such assets
and are carried at cost less accumulated amortization and impairment, if any. Internally generated
software is not capitalized and the expenditure is reflected in the statement of profit and loss in the
year in which the expenditure is incurred.
ii) The residual values, useful lives and methods of depreciation of intangible assets are reviewed at
each reporting date and adjusted prospectively, if appropriate.
3.4 Inventories
(i) Inventories are valued at cost or net realizable value whichever is lower. Cost includes the cost
incurred in bringing the inventories to their present location and condition.
(ii) Raw materials, stores and spares are valued at cost or net realizable value whichever is lower.
Cost includes the cost incurred in bringing the inventories to their present location and condition.
For cost calculation of Raw materials as it is not ordinarily inter changeable specific identification
method is used. For cost calculation of stores and spares weighted average method is used.
(iii) For valuation of finished goods / stock-in-process, cost includes material, direct labour,
overheads (other than abnormal amount of wasted materials, storage costs, selling and
administrative overheads) wherever applicable.
3.5 Revenue Recognition
(i) Revenue is recognized to the extent that is probable that the economic benefits will flow to the
company and the revenue can be reliably measured.
(ii) Sale of products is recognized when the significant risk and reward of ownership of the goods
have been passed to the buyer. Revenue is measured at fair value of the consideration received or
receivable, after deduction of any taxes or duties collected on behalf of the government which are
levied on sales such as VAT, GST, etc.
(iii) Dividend income, if any, is recognized when the company's right to receive dividend is
established by the reporting date.
(iv) Interest income from financial assets is recognized at the effective interest rate applicable on
initial recognition.
(v) Scrap sales is recognized at the fair value of consideration received or receivable upon transfer of
significant risk and rewards. It comprises of invoice value of goods and after deducting applicable
taxes on sale.
3.6 Employee Benefits
The Company does not have any manufacturing activity. There are no permanent workers /
employees as at the end of the year. Accordingly there are no liabilities with respect to Bonus,
Gratuity, Provident Fund, Employees State Insurance, Leave Encashment and other retirement
benefits.
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