Accounting Policies of Shree Rajiv Lochan Oil Extraction Ltd. Company

Mar 31, 2025

1) SIGNIFICANT ACCOUNTING POLICIES:

1.1. CORPORATE INFORMATION

Shree Rajiv Lochan Oil Extraction Limited, (The Company) is a Private Limited Company incorporated under the Companies Act, having CIN L15143CT1994PLC005981.

1.2. BASIS OF PREPARATION

The financial statements have been prepared to comply in all material respects with the notified accounting standards by Companies Accounting Standards Rules, 2006 and the relevant provisions of the Companies Act, 2013 ("the Act”).

The financial statements have been prepared under the historical cost convention on an accrual basis in accordance with accounting principles generally accepted in India. The accounting policies have been consistently applied by the Company and are consistent with those used in previous year.

1.3. USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the result of operations during the reporting period end. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Significant estimate used by the management in the preparation of these financial statements include computation of percentage completion for projects in progress, project cost, revenue and saleable area if any, estimates of the economic useful lives of fixed assets, provisions for bad and doubtful debts. Any revision to accounting estimates if any is recognized prospectively.

1.4. FIXED ASSETS AND DEPRECIATION

a) Fixed Assets are stated at cost (Gross Block) less accumulated depreciation and impairment losses, if any. Cost comprise the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Borrowing costs relating to acquisition of fixed assets which take substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use.

b) Depreciation on fixed assets held in India is provided at to the extent of depreciable amount on Written Down Value (WDV) method based on the useful life of the assets as prescribed in part C of Schedule II of the Companies Act.

1.5. IMPAIRMENT OF ASSETS

Management periodically assesses using external and internal sources whether there is an indication that an asset may be impaired. Impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. The impairment loss if any is to be expensed is determined as the excess of the carrying amount over the higher of the asset’s net sale price or present value as determined above.

1.6. INVESTMENTS

Investments that are readily realizable and intended to be held for more than a year are classified as NonCurrent Investment. All other investments are classified as Current Investment

(i) Non Current Investment:

a) Non current investments if any are stated at cost. However, provision for diminution is made to recognize any decline, other than temporary, in the value of investments.

b) Any diminution in the carrying amount and any reversals of such diminutions are recognized in the revenue.

(ii) Current Investment:

Current investments if any are stated at the lower of cost or fair value.

1.7. INTEREST TO/FROM COMPANIES / INTER CORPORATE BORROWINGS

Interest is charged to/from corporate companies (other than wholly owned subsidiary companies) at

average borrowing cost on the loan advanced. In case of Inter Corporate Deposit to wholly owned

subsidiaries, interest is charged considering commercial expediency and agreed stipulations.

1.8. TAXES ON INCOME

a) Current Tax is the amount of tax on the accounting income for the year determined in accordance with the normal provisions of Income Tax Act, 1961. Provision of income tax for the year has been made in view of profit after considering depreciation as per Income Tax Act, 1961.

b) Deferred tax resulting from timing differences between the book and the tax profits is accounted for, at the current rate of tax, to the extent that the timing differences are expected to crystallize. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future; however where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets/liabilities are reviewed as at each balance sheet date.

c) Calculation of Net Deferred Tax Liability is as below :
Opening Balance of Deferred Tax (Asset)/Liability	-	7207.35
Add : Deferred Tax(Asset)/Liability for the current year	-	404.00
Deferred Tax (Asset)/Liability as on 31-03-2025	-	7611.35

1.9. REVENUE RECOGNITION

Revenue on account of sales is recognized in the accounts on completion of sales which generally coincides with the delivery/dispatch of goods.

1.10. EMPLOYEES BENEFITS A. Employee Benefits:

All employees’ benefits payable wholly within twelve months of rendering the service are classified as staff welfare and they are recognized in the period in which the employee renders the related service. The Company recognizes the undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered as a liability (accrued expense) after deducting any amount already paid.

The Company’s Liability in respect of accumulated leave salary is provided for in the Profit and Loss Account based on actual un -encased leave liability if any determined at the end of the year.

1.11. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

i) Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

a) the Company has a present obligation as a result of a past event.

b) a probable outflow of resources is expected to settle the obligation and

c) The amount of the obligation can be reliably estimated.

Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

ii) Contingent Liability is disclosed in the case of

a) a present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation.

b) a possible obligation, unless the probability of outflow of resources is remote.

iii) Contingent Assets are neither recognized nor disclosed.

1.12. CONTINGENT LIABILITIES NOT PROVIDED FOR: i) Claims against the company not acknowledge as debt		NIL
ii)	Uncalled liability on shares party paid	NIL
iii)	Arrears of fixed cumulative dividends	NIL
iv)	Estimate amount of contracts remaining to be executed on	NIL
v)	Capital account and not provided for. Other money for which the company is contingently liable	NIL

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Mar 31, 2024

1) SIGNIFICANT ACCOUNTING POLICIES:

1.1. CORPORATE INFORMATION

Shree Rajiv Lochan Oil Extraction Limited, (The Company) is a Private Limited Company incorporated under the Companies Act, having CIN L15143CT1994PLC005981.

1.2. BASIS OF PREPARATION

The financial statements have been prepared to comply in all material respects with the notified accounting standards by Companies Accounting Standards Rules, 2006 and the relevant provisions of the Companies Act, 2013 ("the Act”).

The financial statements have been prepared under the historical cost convention on an accrual basis in accordance with accounting principles generally accepted in India. The accounting policies have been consistently applied by the Company and are consistent with those used in previous year.

1.3. USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the result of operations during the reporting period end. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Significant estimate used by the management in the preparation of these financial statements include computation of percentage completion for projects in progress, project cost, revenue and saleable area if any, estimates of the economic useful lives of fixed assets, provisions for bad and doubtful debts. Any revision to accounting estimates if any is recognized prospectively.

1.4. FIXED ASSETS AND DEPRECIATION

a) Fixed Assets are stated at cost (Gross Block) less accumulated depreciation and impairment losses, if any. Cost comprise the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Borrowing costs relating to acquisition of fixed assets which take substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use.

b) Depreciation on fixed assets held in India is provided at to the extent of depreciable amount on Written Down Value (WDV) method based on the useful life of the assets as prescribed in part C of Schedule II of the Companies Act.

1.5. IMPAIRMENT OF ASSETS

Management periodically assesses using external and internal sources whether there is an indication that an asset may be impaired. Impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. The impairment loss if any is to be expensed is determined as the excess of the carrying amount over the higher of the asset’s net sale price or present value as determined above.

1.6. INVESTMENTS

Investments that are readily realizable and intended to be held for more than a year are classified as NonCurrent Investment. All other investments are classified as Current Investment

(i) Non Current Investment:

a) Non current investments if any are stated at cost. However, provision for diminution is made to recognize any decline, other than temporary, in the value of investments.

b) Any diminution in the carrying amount and any reversals of such diminutions are recognized in the revenue.

(ii) Current Investment:

Current investments if any are stated at the lower of cost or fair value.

1.7. INTEREST TO/FROM COMPANIES / INTER CORPORATE BORROWINGS

Interest is charged to/from corporate companies (other than wholly owned subsidiary companies) at

average borrowing cost on the loan advanced. In case of Inter Corporate Deposit to wholly owned

subsidiaries, interest is charged considering commercial expediency and agreed stipulations.

1.8. TAXES ON INCOME

a) Current Tax is the amount of tax on the accounting income for the year determined in accordance with the normal provisions of Income Tax Act, 1961. Provision of income tax for the year has been made in view of profit after considering depreciation as per Income Tax Act, 1961.

b) Deferred tax resulting from timing differences between the book and the tax profits is accounted for, at the current rate of tax, to the extent that the timing differences are expected to crystallize. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future; however where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets/liabilities are reviewed as at each balance sheet date.

c) Calculation of Net Deferred Tax Liability is as below :

Opening Balance of Deferred Tax (Asset)/Liability - 6886.35

Add : Deferred Tax(Asset)/Liability for the current year - 320.00

Deferred Tax (Asset)/Liability as on 31-03-2024 - 7206.35

1.9. REVENUE RECOGNITION

Revenue on account of sales is recognized in the accounts on completion of sales which generally coincides with the delivery/dispatch of goods.

1.10. EMPLOYEES BENEFITS A. Employee Benefits:

All employees’ benefits payable wholly within twelve months of rendering the service are classified as staff welfare and they are recognized in the period in which the employee renders the related service. The Company recognizes the undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered as a liability (accrued expense) after deducting any amount already paid.

The Company’s Liability in respect of accumulated leave salary is provided for in the Profit and Loss Account based on actual un -encased leave liability if any determined at the end of the year.

1.11. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

i) Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

a) the Company has a present obligation as a result of a past event.

b) a probable outflow of resources is expected to settle the obligation and

c) The amount of the obligation can be reliably estimated.

Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

ii) Contingent Liability is disclosed in the case of

a) a present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation.

b) a possible obligation, unless the probability of outflow of resources is remote.

iii) Contingent Assets are neither recognized nor disclosed.

1.12. CONTINGENT LIABILITIES NOT PROVIDED FOR:

i) Claims against the company not acknowledge as debt NIL

ii) Uncalled liability on shares party paid NIL

iii) Arrears of fixed cumulative dividends NIL

iv) Estimate amount of contracts remaining to be executed on NIL

Capital account and not provided for.

v) Other money for which the company is contingently liable NIL