Accounting Policies of Vandan Foods Ltd. Company

Mar 31, 2025

Corporate Information

Vandan Foods Limited is a Limited Company, incorporated under the provisions of
Companies Act, 2013 and having CIN : U15137GJ2015PLC085394. Vandan Foods
Limited (Formerly known as Vandan Foods Pvt. Ltd.) was incorporated on 15/12/2015.
Company is primarily engaged in manufacture and Trading of Castor Oil, Castor Oil
Cake, Castor Dry Oil Cake and Spent. Company is having its place of business at 503,
Wall Street-1, Opp. Orient Club, Nr. Gujarat College, Ahmedabad. Gujarat-380006 and
Manufacturing unit at Survey No-2554/2 and Survey No-2537/2/1, Nr. Sitapur Village,
Motap-Dhinoj Road, Dhinoj, Ta.-Chanasma, Dist.-Patan-384225. The factory structure
consists of Plant & Machineries, Shed, Warehouse for Storage, Admin Office, Dispatch
Section, Laboratory Room, Security Cabin etc. The key material used for manufacturing
of Castor Oil Castor Oil Cake, Castor Dry oil Cake and Spent is The Castor Seeds. The
materials are available easily from local market as well as agents for materials. Their
will possibilities for entering into long term contracts with the suppliers to ensure
seamless availability raw material The Company is also engaged in trading of
Agriculture Produces.

? Basis of preparation of financial statements

a. Accounting Convention: -

These financial statements of the Company have been prepared in accordance with
Generally Accepted Accounting Principles in India ("Indian GAAP"). Indian GAAP
comprises mandatory accounting standards as prescribed under Section 133 of the
Companies Act, 2013 ("the Act") read with the Rule 7 of the Companies (Accounts)
Rules, 2014. The financial statements have been prepared on an accrual basis and
under the Historical Cost Convention. And the Companies (Accounting Standards)
Amendment Rules 2016 and the relevant provisions of the Companies Act, 2013.

b. Functional and Presentation Currency

The functional and presentation currency of the company is Indian rupees. This
financial statement is presented in Indian rupees.

•All amounts disclosed in the financial statements and notes are rounded off to Lakhs
the nearest INR rupee in compliance with Schedule III of the Act, unless otherwise
stated.

Due to rounding off, the numbers presented throughout the document may not add up
precisely to the totals and percentages may not precisely reflect the absolute figures.

c. Use of Estimates and Judgments

The preparation of financial statement in conformity with accounting standard requires
the Management to make estimates, judgments, and assumptions. These estimates,
judgments and assumptions affects the application of accounting policies and the
reported amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of financial statement and reported amounts of revenue and
expenses during the period. Accounting estimates could change form period to period
Actual result could differ from those estimates. As soon as the Management is aware of
the changes, appropriate changes in estimates are made. The effect of such changes are
reflected in the period in which such changes are made and if material their effect are
disclosed in the notes to financial statement.

Estimates and underlying assumptions are reviewed at each balance sheet date.
Revisions to accounting estimates are recognised in the period in which the estimate is
revised and in future periods affected

d. Current and Non - Current Classification

An asset or a liability is classified as Current when it satisfies any of the following
criteria:

i. It is expected to be realized / settled, or is intended for sales or consumptions, in the
Company''s Normal Operating Cycle;

ii. It is held primarily for the purpose of being traded.

iii. It is expected to be realized / due to be settled within twelve months after the end of
reporting date;

iv. The Company does not have an unconditional right to defer the settlement of the
liability for at least twelve months after the reporting date.

All other assets and liabilities are classified as Non - Current.

For the purpose of Current / Non - Current classification of assets and liabilities, the
Company has ascertained its operating cycle as twelve months. This is based on the
nature of services and the time between the acquisition of the assets or liabilities for
processing and their realization in Cash and Cash Equivalents.

? Basis of Preparation

a) Property, Plant & Equipment and Intangible Assets:-

i. The company has adopted Cost Model to measure the gross carrying amount of
Property Plant & Equipment.

II. Tangible Property plant & Equioment are staled at cost of acquisition less accumulated
depredation. Cost Includes the purchase price and all other attributable costs Incurred
for bringing the asset to Its working condition for Intended use.

III. Intangible assets are stated at the consideration paid for acquisition and customisation
thereof less accumulated amortization.

iv. Cost of fixed assets not ready for use before the balance sheet date is disclosed as
Capital Work in Progress.

v. Cost of Intangible Assets not ready for use before the balance sheet date is disclosed as
Intangible Assets under Development

b) Depreciation / Amortisation : -

Depreciation has been provided under Written Down Value Method as per the useful
life prescribed under schedule 11 of the Companies Act, 2013 on single shift and Pro
Rata Basis to result in a more appropriate preparation or presentation of the financial
statements.

In respect of assets added/sold during the year, pro-rata depreciation has been
provided at the rates prescribed under Schedule II.

c) Impairment of Assets:-

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

d) Investments:-

• Long term investments are stated at cost. Provision for diminution in the value of long¬
term investment is made only if such decline is other than temporary.

• Current investments are stated at lower of cost or market value. The determination of
carrying amount of such investment is done on the basis of specific identification.

e) Government Grants and Subsidies:-

The Company is entitled to receive any subsidy from the Government authorities or
any other authorities in respect of manufacturing or other facilities are dealt as

follows:

• Grants In the nature of subsidies which are non - refundable arc credited to the
respective accounts to which the grants relate, on accrual basis, where there is
reasonable assurance that the Company will comply with all the necessary conditions
attached to them.

• Grants In the nature of Subsidy which arc Refundable arc shown as Liabilities in the
Balance Sheet at the Reporting date.

f) Valuation of Inventory : -

Inventories of the raw material, work-in-progress, finished goods, packing material,
stores and spares, components, consumables and stock in trade are carried at lower of
cost and net realizable value. However, raw material and other items held for use in
production of inventories are not written down below cost if the finished goods in
which they will be incorporated arc expected to be sold at or above cost. The
comparison of cost and net realizable value is made on an item by item basis.

Cost of inventories included the cost incurred in bringing the each product to its
present location and conditions are accounted as follows:

2) Stock in Trade:- Cost included the purchase price and other direct or indirect
costs incurred in bringing the inventories to their present location and
conditions. Cost is determined on "FIFO Method".

All other inventories of stores and spares, consumables, project material at site are
valued at cost. The stock of waste or scrap is valued at net realizable value.

"Net Realizable Value” is the estimated selling price in the ordinary course of business,
less estimated costs of completion and estimated cost necessary to make the sales of
the products.

g) Revenue Recognition

Revenue is recognized when it is probable that economic benefit associated with the
transaction flows to the Company in ordinary course of its activities and the amount of
revenue can be measured reliably, regardless of when the payment is being made.
Revenue is measured at the fair value of consideration received or receivable, taking
into the account contractually defined terms of payments, net of its returns, trade
discounts and volume rebates allowed.

Revenue includes only the gross inflows of economic benefits, including the excise
duty, received and receivable by the Company, on its own account. Amount collected
on behalf of third parties such as sales tax, value added tax and goods and service tax
(GST) are excluded from the Revenue.

Sale of goods is recognized at the point of dispatch of goods to customers, sales are

exclusive of Sales tax. Vat. GST and Freight Charges If any. The revenue an
expenditure arc accounted on a going concern basis.

Interest Income is Recognized on a time proportion basis taking Into account the
amount outstanding and the rate applicable l.c. on the basis of matching concept ..

Dividend from investments in shares / units is recognized when the company.

As per a recent ICAI opinion, the benefit of DEPB is recognized in the year of export itself, provided no uncertainty exists. Other items of Income are accounted as
when the right to receive arises.

h) Accounting for effects of changes in foreign exchange rates

Transactions denominated in foreign currencies are normally recorded at the
exchange rate prevailing at the time of the transactions.

Any income or expenses on account of exchange difference either on settlement or on Balance sheet Valuation is recognized in the profit and loss account except in cases
where they relate to acquisition of fixed assets in which case they are adjusted to the
carrying cost of such assets.

Foreign currency transactions accounts are given in the notes of accounts.

Commodity Hedging: - The realized gain or loss in respect of commodity hedging
contracts, the principal period of which has expired during the year, is recognized in
profit and loss account. In respect of contracts, that are outstanding as on date of
Balance sheet are valued at prevailing market price and the resultant loss, if any, is
provided.

i) Related Party Disclosure

The Disclosures of Transaction with the related parties as defined in the related
parties as defined in the Accounting Standard are given in notes of accounts.

j) Cash flow:-

Cash flows are reported using the indirect method, whereby net profit before tax is
adjusted for the effects of transactions of a non-cash nature and any deferrals of past
or future cash receipts and payments. The cash flows from regular operating, investing
and financing activities of the company are segregated.

k) Earnings Per Share

The Company reports the basic and diluted Earnings per Share (EPS) in accordance
with Accounting Standard 20, "Earnings per Share”. Basic EPS is computed by dividing
the Net Profit or Loss attributable to the Equity Shareholders for the year by the
weighted average number of equity shares outstanding during the year. Diluted EPS is
computed by dividing the Net Profit or Loss attributable to the Equity Shareholders for

the year by the weighted average number where the results

year as adjusted for the effects of .all potential Equity • • •

arc Anti - Dilutive.

The weighted average number of Equity Shares issue share splits, and

adjusted for events such a Bonus issue, Bonus element g number of Equity

reverse share split (consolidation of shares) that have changed the number of Equity

Shares outstanding, without a corresponding change in resources.

l) Taxes on Income

1, Current Tax:- . benefits

Provision for current tax is made after taken into
admissible under the provisions of the Income Tax Act, •

2. Deferred Taxes:-

Deferred Income Tax is provided using the liability method on all temporary
difference at the balance sheet date between the tax basis of assets and
liabilities and their carrying amount for financial reporting purposes.

1. Deferred Tax Assets are recognized for all deductible temporary
differences to the extent that it is probable that taxable profit will be
available in the future against which this items can be utilized.

II Deferred Tax Assets and liabilities are measured at the tax rates that are
expected to apply to the period when the assets is realized or the liability is
settled, based on tax rates ( and the tax) that have been enacted or enacted
subsequent to the balance sheet date.

m) Discontinuing Operations

During the year the company has not discontinued any of its operations.