Notes to Accounts of Shanti Guru Industries Ltd.

Mar 31, 2023

Provision, Contingent Liability and Contingent Assets

Provision is recognised in respect of present obligation requiring settlement by outflow of resources and of which
reliable estimate of the amount of obligation could be made.

Contingent liability is not recognised and is disclosed unless the possibility of outflow of resources embodying
economic benefit is remote. Present obligation arising from past events and the existence of which is subject to
occurrence or non-occurrence of an in certain future event is disclosed.

3.8 Cash Flow statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of
ransact.ons of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and

of income or expenses associated with investing or financing cash flows. The cash flows are segregated into
operating, investing and financing activities. ° °

3.9 Borrowing Cost

!“ ^a!!^d °^thf^er C°^Jⁿ connection wi^ borrowing of funds to the extent related / attributed to the acquisition

use Oth T ^{q fymg 333615} ^ ^caP^{italized U}P^{t0 th}e date when such assets are ready for its intended
use. Other borrowing costs are charged to Profit and Loss Account.

3.10 Earnings Per Share

Basic Earnings per share is calculated by dividing the Net profit or loss after tax attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year. Diluted EPS is
determined by adjusting the Profit or loss attributable to equity shareholders and the weighted average number of
equity shares outstanding for the effects of all dilutive potential equity shares.

3.11 Income Tax

The tax provision is considered as stipulated in IND AS 12 and includes current and deferred tax liability The
company recognizes the accumulated deferred tax asset based on accumulated time difference using current tax
ra e. Both the current tax and deferred tax liability relating to items recognized outside the profit or loss is
recognized either in “Other Comprehensive Income” or directly in “Equity” as the case may be.

3.12 Segment Reporting

The Company s Operating segment is identified based on nature of activity, risks and returns. The Company is
primarily engaged in Trading of all kinds of tradeable and marketable goods - Operating Segment.

3.13 Impairment ofNon-financial Assets

(«) The carrying values of non-fmancial assets are reviewed for impairment at each Balance Sheet date, if there is

any indication of impairment based on internal and external factors.

(a) Non-fmancial assets are treated as impaired when the carrying amount of such asset exceeds its recoverable
value. After recognition of impairment loss, the depreciation / amortization for the said assets is provided for
remaining useful life based on the revised carrying amount, less its residual value if any, on straight line basis.

(ih) An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as
impaired.

(iv) An impairment loss is reversed when there is an indication that the impairment loss may no longer exist or
may have decreased.

3.14 Financial Instruments

A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or
eqmty instrument of another entity. Financial assets and financial liabilities are recognized when the Company
becomes a party to the contractual provisions of the relevant instrument and are initially measured at fair value.
Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities
(other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted

from the fair value of the financial assets or financial liabilities at fair value through profit or loss are recognized
immediately in nrnfit nr Ihqc ^w

3.15 Financial Assets

(i) Financial assets comprise of investments in Equity, Trade Receivables, Cash and Cash Equivalents and Other
Financial Assets.

(ii) Depending on the business model (i.e) nature of transactions for managing those financial assets and its
contractual cash flow characteristics, the financial assets are initially measured at fair value and subsequently
measured and classified at:

a) Amortized cost; or

b) Fair value through Other Comprehensive Income (FVTOCI); or

c) Fair value through Profit or Loss (FVTPL)

d) Amortized cost represents carrying amount on initial recognition at fair value plus or minus
transaction cost.

(iii) The Company classifies its financial assets for measurement as below:-

a. Trade receivables, Loan and advances given toemployees and related parties, deposits and other

advances recoverable in cash or kind - Amortized Cost

b. Investment in Equity instruments - FVTOCI

(iv) The company derecognises a financial asset when the contractual rights to the cash flows from the asset
expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset
to another party. On derecognition of a financial asset or part thereof, the difference between the carrying amount
measured at the date of recognition and the consideration received including any new asset obtained less any new
liability assumed shall be recognized in the statement of profit and Loss.

(v) The company assesses at each balance sheet date whether the financial asset or group of financial assets is
impaired. IND AS 109 requires expected credit losses to be measured through a loss allowance. The company
recognizes lifetime expected losses for trade receivables that do not constitute a financing transaction. For all
other financial assets, expected credit losses are measured at an amount equal to 12 month expected credit losses
or at an amount equal to lifetime expected losses, if the credit risk on the financial asset has increased
significantly since initial recognition.

3.16 Financial Liability

(i) Financial liabilities comprise of Borrowings from Banks, Trade payables, Derivative financial instruments,
financial guarantee obligation and other financial liabilities.

(ii) The Financial Liabilities comprising Borrowings, trade payables, interest accrued, Unclaimed/

Disputed dividends, security deposits and other financial liabilities not for trading are measured at
Amortized Costs

(iii) Financial liabilities are derecognised when and only when it is extinguished (i.e) when the obligation
specified in the contract is discharged or cancelled or expired.

(iv) Upon de-recognition of its financial liabilities or part thereof, the difference between the carrying amount of a
financial liability that has been extinguished or transferred to another party and the consideration paid including
any non-cash assets transferred or liabilities assumed is recognized in the Statement ofProfit and Loss.

3.17 Fair Value Measurement

(i) Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date.

(ii) The fair value of an asset or a liability is measured / disclosed using the assumptions that the market
participants would use when pricing the asset or liability, assuming that the market participants act in the
economic best interest.

(iii) All assets and liabilities for which fair value is measured are disclosed in the financial statements are
categorised within fair value hierarchy based on the lowest level input that is significant to the fair value
measurement as a whole. The fair value hierarchy is described as below:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities
Level 2: Valuation techniques for which the lowest level inputs that are significant to the
fair value measurement are directly or indirectly observable.

Level 3. Valuation techniques for which the lowest level inputs that are significant to the
fair value measurement are unobservable.

(iv) For assets and liabilities that are recognised in the Balance sheet on a recurring basis, the company determines
whether transfers have occurred between levels in the hierarchy by reassessing categorisation at the end of each
reporting period (i.e) based on the lowest level input that is significant to the fair value measurement as a whole.

(v) For the purpose of fair value disclosures, the company has determined the classes of assets and liabilities
based on the nature, characteristics and risks of the assets or

liabilities and the level of the fair value hierarchy as explained above.

(vi) The basis for fair value determination for measurement and / or disclosure purposes is detailed below:

Investments in Equity ~ _r .

. • , The fair

value is determined by reference to their quoted prices at the reporting date. In the absence of the quoted price, the
fair value of the equity is measured using generally accepted valuation techniques.

Non-derivative financial liabilities

The fair value of non-derivative financial liabilities viz, borrowings are determined for disclosure purposes
calculated based on the present value of future principal and interest cash flows, discounted at the market rate of
interest at the reporting date.

3.18 Significant Estimates and Judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and liabilities and the accompanying disclosures,
and the disclosure of contingent liabilities.

Actual results could vary from these estimates. The estimates and underlying assumptions are reviewed on an on¬
going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the
revision effects only that period or in the period of the revision or future periods, if the revision affects both
current and future years. Accordingly, the management has applied the following estimates / assumptions /
judgements in preparation and presentation of financial statements:

(i) Property, Plant and Equipment, Intangible Assets and Investment Properties

The residual values and estimated useful life of PPEs, Intangible Assets and Investment Properties are assessed by
technical team duly reviewed by the management at each reporting date. Wherever the management believes that
the assigned useful life and residual value are appropriate, such recommendations are accepted and adopted for
computation of depreciation/amortisation. Also, management judgement is exercised for classifying the asset as
investment properties or vice versa.

(ii) Current Taxes

Calculations of income taxes for the current period are done based on applicable tax laws and management’s
judgement by evaluating positions taken in tax returns and interpretations of relevant provisions of law.

(iii) Contingent Liabilities

Management judgement is exercised for estimating the possible outflow of resources, if any, in respect of
contingencies / claims / litigations against the Company as it is not possible to predict the outcome of pending
matters with accuracy.

(iv) Impairment of Trade receivables

The impairment for financial assets are done based on assumptions about risk of default and expected loss rates.
The assumptions, selection of inputs for calculation of impairment are based on management judgement
considering the past history, market conditions and forward looking estimates at the end of each reporting date.

(v) Impairment of Non-financial assets (PPE/Intangible Assets / Investment Properties)

The impairment of non-financial assets is determined based on estimation of recoverable’amount of such assets.
The assumptions used in computing the recoverable amount are based on management judgement considering the
timing of future cash flows, discount rates and the risks specific to the asset.

(vi) Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities could not be measured based on quoted prices in
active markets, management uses valuation techniques including the Discounted Cash Flow (DCF) model, to
determine its fair value. The inputs to these models are taken from observable markets where possible, but where
this is not feasible, a degree of judgement is exercised in establishing fair values. Judgements include
considerations of inputs such as liquidity risk, credit risk and volatility.

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Mar 31, 2015

1 Background

RCL Retail Limited was originally incorporated as private limited company on 29.09.2010 in the State of Tamilnadu which was subsequently converted to public company as on 23.03.2011 having its registered office in Chennai. The Company is engaged in the business of trading of food and processed foods.

2. Terms / rights attached to eauity shares

The Company has only one class of shares referred to as equity shares having a par value of Rs.10. Each holder of equity shares is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Company declares dividend in Indian rupees and pays dividend to shareholders outside India in foreign currency based on the rates prevailing on the date of such remittances, with respect to other shareholders, dividend is paid in Indian rupees.

In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding. During the year ended March 31, 2015, the Company has not declared any dividend.

3. Contingent Liabilities And Commitments: As at As at

i) Contingent Liabilites 31-Mar-15 31-Mar-14

Claims against the company not acknowledged as debts - -

ii) Commitments:

Estimated amount of contracts remaining to be executed on capital account - 87,411 and not provided for

4. Segment reporting

The Company is engaged in only one business namely trading of food and processed foods and the operations primarily cater to the needs of the domestic market. Accordingly there are no separate reportable segments according to AS 17 ''Segment Reporting'' issued under the Companies (Accounting Standards) Rules, 2006.

5. Related party transactions

a) Names of related parties and nature of relationship are as follows:

Nature of relationship Name of the related party

Associate company RCL Foods Limited

RCL Enterprise Private limited

Key management personnel (KMP) Nitesh R Lodha

b Details of related party transactions

6. Retirement benefits Gratuity Plan

Based on actuarial valuation necessary provision has been created in the books to meet the liability as per Accounting Standard 15 (R).

7. Previous years figures have been regrouped/rearranged wherever necessary.

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Mar 31, 2014

1 Background

RCL Retail Limited was originally incorporated as private limited company on 29.09.2010 in the State of Tamilnadu which was subsequently converted to public company as on 23.03.2011 having its registered office in Chennai. The Company is engaged in the business of trading of food and processed foods.

2. a) Terms / rights attached to equity shares

The Company has only one class of shares referred to as equity shares having a par value of Rs.10. Each holder of equity shares is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Company declares dividend in Indian rupees and pays dividend to shareholders outside India in foreign currency based on the rates prevailing on the date of such remittances, with respect to other shareholders, dividend is paid in Indian rupees.

In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding. During the year ended March 31, 2014, the Company has not declared any dividend.

Note b: Secured by hypothecation of Stock-in-Trade,supply bills & additional charge by way of equitable mortgage of land and building.

3 Contingent Liabilities And Commitments: As at As at 31-Mar-14 31-Mar-13 i) Contingent Liabilites

Claims against the company not - - acknowledged as debts

ii) Commitments:

Estimated amount of contracts remaining 87,411 - to be executed on capital account and not provided for 9 Segment reporting

The Company is engaged in only one business namely trading of food and processed foods and the operations primarily cater to the needs of the domestic market. Accordingly there are no separate reportable segments according to AS 17 ''Segment Reporting'' issued under the Companies (Accounting Standards) Rules, 2006.

4 Micro, Small and Medium Enterprises Development Act, 2006

The management has identified enterprises which have provided goods and services to the Company and which qualify under the definition of micro and small enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006. Accordingly, the disclosure in respect of the amount payable to such enterprises as at 31 March, 2014 has been made in the financial statements based on information received and available with the Company, to the extent identified by the management and relied upon by the auditors. The details of overdue amount and interest payable are set out below.

5 Retirement benefits Gratuity Plan

Based on actuarial valuation necessary provision has been created in the books to meet the liability as per Accounting Standard 15 (R).

6 Previous years figures have been regrouped/rearranged wherever necessary.

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Mar 31, 2013

1 Background

RCL Retail Limited was originally incorporated as private limited company on 29.09.2010 in the State of Tamilnadu which was subsequently converted to public company as on 23.03.2011 having its registered office in Chennai. The Company is engaged in the business of trading of food and processed foods.

2 Segment reporting

The Company is engaged in only one business namely trading of food and processed foods and the operations primarily cater to the needs of the domestic market. Accordingly there are no separate reportable segments according to AS 17 ''Segment Reporting'' issued under the Companies (Accounting Standards) Rules, 2006.

3 Value of Imports (On C.I.F Basis) - -

4 Earnings in Foreign Currency : - -

5 Expenditure in Foreign Currency : - -

6 Micro, Small and Medium Enterprises Development Act, 2006

The management has identified enterprises which have provided goods and services to the Company and which qualify under the definition of micro and small enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006. Accordingly, the disclosure in respect of the amount payable to such enterprises as at 31 March, 2012 has been made in the financial statements based on information received and available with the Company, to the extent identified by the management and relied upon by the auditors. The details of overdue amount and interest payable are set out below.

7 Retirement benefits

Gratuity Plan

Based on actuarial valuation necessary provision has been created in the books to meet the liability as per Accounting Standard 15 (R).

The following table sets out the status of the gratuity plan as required under AS 15 (Revised 2005). Reconciliation of opening and closing balances of the present value of the defined benefit obligation.

8 The Company completed a public issue of 58,05,000 equity shares of face value 10/- each for cash at a par aggregating to Rs.5,80,50,000. The Company completed the allotment of the above shares on 22nd Oct, 2012.

9 Previous years figures have been regrouped/rearranged wherever necessary.