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Accounting Policies of Sam Industries Ltd. Company

Mar 31, 2015

I. BACKGROUND:

SAM INDUSTRIES LIMITED was incorporated on 17TH February 1994 and commenced its business operation on 5TH October 1994. The Company is presently doing the business of operating lease of Welding Electrodes, Real estate & Investment business. However the company has discontinued the business of Soya.

A. System of Accounting

a. The financial statements have been prepared and presented under the historical cost conventions using the accrual basis of accounting and complied with all the mandatory accounting standards as specified in Companies (Accounting Standard) Rules 2006, pronouncements of ICAI as applicable and the relevant provisions of the Companies Act 2013, and guidelines issued by the Securities and Exchange Board of India.

b. All the 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 schedule III to the Companies Act, 2013. Based on the nature of the product and time between the acquisition of assets for processing and their realization in cash & cash equivalent, the company has ascertained its operating cycle to be less than 12 months.

B. Revenue Recognition

a. Sales are inclusive of excise duty and VAT Collected and are net of trade discounts, if any.

b. Dividend income is recognized in the year when the right to received the payment is established.

c. Interest income is recognized on time proportionate basis.

d. Non commitment charges are accounted on fulfillment of time of contract only.

e. Lease Rent Income is accounted on accrual basis.

f. Sales of Real Estate business is recognised on actual sale on legal transfer or giving possession of plots on receiving full payments.

C. Fixed Assets and Intangible Assets

Fixed assets are stated at cost of acquisition or construction, less accumulated depreciation. Cost includes inward freight, duties, taxes and incidental expenses related to acquisition and installation of the asset. Borrowing costs related to the acquisition or construction of the qualifying fixed assets for the assets for the period upto the completion of their acquisition or constructions are capitalized.

Intangible assets are recorded at the consideration paid for acquisition.

D. Depreciation and Amortization

a. Depreciation on fixed assets has been provided for under straight-line method in the manner prescribed in Schedule II of the Companies Act, 2013, over the useful life of the asset.

b. Intangible assets are amortized over their estimated useful lives on a straight line basis, commencing from the date the assets is available to the company for its use.

E. Valuation of Inventories

a. Raw material, stores and spares, fuel and packing materials are valued at cost (FIFO), including freight.

b. Finished goods are valued at market value or cost whichever is less. The by - Products are valued at net realizable value.

c. Stock of land of Real Estate division is valued on cost after capitalizing the expenses incurred on development of land.

d. The excise duty in respect of closing stock of finished goods is included as part of inventory. The amount of CENVAT Credit in respect of material consumed for sale is deducted from the cost of material.

F. Investment

Trade Investments are investments made to enhance the Company's business interests. Investments are either classified as current or long term based on the management's intention. Current Investments are carried at the lower of cost and fair value. Long term investments are carried at cost and provisions recorded to recognize any decline, other than temporary, in the carrying value of each investment.

G. Preliminary & Public Issue Expenses

Preliminary and public issue expenses are to be written off over a period of ten years.

H. Retirement benefits

The company's Contribution to provident funds is made to the recognized provident funds and is charged to the profit and loss account. The company has taken a gratuity policy from LIC of India and premium paid for the year has been debited to profit and loss account. The liability towards leave encashment has been ascertained by actuarial valuation using projected unit credit method done at the end of the financial year.

I. Lease Rent / Operating Lease

(i) The payment of lease rent for office premises taken on leave and license basis are recognized as expenditure in the profit and loss account on a Straight Line basis.

(ii) Lease Rental Income is accounted on accrual basis.

J. Impairment of Assets

An asset is treated as impaired when the carrying cost of the assets 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.

K. Foreign currency transaction

Foreign exchange transactions are recorded at the rates of exchange on the date of respective transaction. The assets and liabilities designated in foreign currency are converted into the rupee at the rates of exchange prevailing as on the balance sheet date or at the contracted rate and corresponding adjustment is being made to the relevant income/expense and assets/liability.

L. Segment Accounting

The company has disclosed business segment as the primary segment. The segments have been identified after taking in to account the type of product, the differing risk and returns and internal reporting systems. The Segments identified by the company are as under:

1) Soya Division

2) Welding Division

3) Investment Division

4) Real Estate Division The company for the segment reporting has followed the following accounting policies.

a) Segment revenue includes sales and other income directly identifiable with or allocable to a particular segment.

b) Segment expenses that are directly identifiable with allocable to a segment are considered for determining the segment results. The expenses, which relates to the company as a whole and not allocable to a particular segment are included under un-allocable expenses.

c) Income, which relates to the company, as a whole and not allocable to a segment is included under un- allocable income.

d) i) Segment assets include those assets which are directly identifiable with respective segments and employed by a segment in its operating activities but does not include income tax assets.

ii) Segment liabilities include those liabilities directly identifiable to a segment and operating liability that result from operating activities of a segment, but does not include income tax liabilities and financial tax liabilities.

M. Taxation

The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the company. Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing differences that result between the profits offered for income tax and the profit as per the financial statements.

N. Borrowing Cost

Borrowing Cost that is attributable to the acquisition of qualifying assets is capitalized as part of such cost till the said assets put to use. All other borrowing cost is charged to revenue account.

O. Provision Contingent Liability & 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 outflow of recourses. Contingent liability are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

P. Earnings per Share

Basic earnings per share is computed by dividing net profit or loss for the period attributable to equity shareholders by the weighted average number of shares outstanding during the year. Diluted earnings per share amounts are computed after adjusting the effects of all dilutive potential equity shares. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share, and also the weighted average number of equity shares, which could have been issued on the conversion of all dilutive potential shares. In computing dilutive earnings per share, only potential equity shares that are dilutive and that decrease profit per share are included.

Q. Cash Flows

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


Mar 31, 2014

A. System of Accounting

a. The financial statements have been prepared and presented under the historical cost conventions using the accrual basis of accounting and complied with all the mandatory accounting standards as specified in Companies (Accounting Standard) Rules 2006, pronouncements of ICAI as applicable and the relevant provisions of the Companies Ac''1956, and guidelines issued by the Securities and Exchange Board of India.

b. All the 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 schedule VI to the Companies Act, 1956. Based on the nature of the product and time between the acquisition of assets for processing and their realization in cash & cash equivalent, the company has ascertained its operating cycle to be less than 12 months.

B. Revenue Recognition

a. Sales are inclusive of excise duty and VAT Collected and are net of trade discounts, if any.

b. Dividend income is recognised in the year when the right to received the payment is established.

c. Interest income is recognised on time proportionate basis.

d. Non commitment charges are accounted on fulfillment of time of contract only.

e. Lease Rent Income is accounted on accrual basis.

f. Sales of Real Estate business is recognised on actual sale on legal transfer or giving possession of plots on receiving full payments.

C. Fixed Assets and Intangible Assets

Fixed assets are stated at cost of acquisition or construction, less accumulated depreciation. Cost includes inward freight, duties, taxes and incidental expenses related to acquisition and installation of the asset. Borrowing costs related to the acquisition or construction of the qualifying fixed assets for the assets for the period upto the completion of their acquisition or constructions are capitalized.

Intangible assets are recorded at the consideration paid for acquisition.

D. Depreciation and Amortization

a. Depreciation on fixed assets has been provided for under straight-line method at the rates prescribed in Schedule XIV of the Companies Act, 1956, on a pro-rata basis.

b. Intangible assets are amortization over their estimated useful lives on a straight line basis, commencing from the date the assets is available to the company for its use.

E. Valuation of Inventories

a. Raw material, stores and spares, fuel and packing materials are valued at cost (FIFO), including freight.

b. Finished goods are valued at market value or cost whichever is less. The by - Products are valued at net realizable value.

c. Stock of land of Real Estate division is valued on cost after capitalizing the expenses incurred on development of land.

d. The excise duty in respect of closing stock of finished goods is included as part of inventory. The amount of CENVAT Credit in respect of material consumed for sale is deducted from the cost of material.

F. Investment

Trade Investments are investments made to enhance the Company''s business interests. Investments are either classified as current or long term based on the management''s intention. Current Investments are carried at the lower of cost and fair value. Long term investments are carried at cost and provisions recorded to recognize any decline, other than temporary, in the carrying value of each investment.

G. Preliminary & Public Issue Expenses

Preliminary and public issue expenses are to be written off over a period of ten years.

H. Retirement benefits

The company''s Contribution to provident funds is made to the recognized provident funds and is charged to the profit and loss account. The company has taken a gratuity policy from LIC of India and premium paid for the year has been debited to profit and loss account. The liability towards leave encashment has been ascertained by actuarial valuation using projected unit credit method done at the end of the financial year.

I. Lease Rent / Operating Lease

(i) The payment of lease rent for office premises taken on leave and license basis are recognized as expenditure in the profit and loss account on a Straight Line basis.

(ii) Lease Rental Income is accounted on accrual basis.

J. Impairment of Assets

An asset is treated as impaired when the carrying cost of the assets 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.

K. Foreign currency transaction

Foreign exchange transactions are recorded at the rates of exchange on the date of respective transaction. The assets and liabilities designated in foreign currency are converted into the rupee at the rates of exchange prevailing as on the balance sheet date or at the contracted rate and corresponding adjustment is being made to the relevant income/expense and assets/liability.

L. Segment Accounting

The company has disclosed business segment as the primary segment. The segments have been identified after taking in to account the type of product, the differing risk and returns and internal reporting systems. The Segments identified by the company are as under:

1) Soya Division

2) Welding Division

3) Investment Division

4) Real Estate Division

The company for the segment reporting has followed the following accounting policies.

a) Segment revenue includes sales and other income directly identifiable with or allocable to a particular segment.

b) Segment expenses that are directly identifiable with allocable to a segment are considered for determining the segment results. The expenses, which relates to the company as a whole and not allocable to a particular segment are included under un-allocable expenses.

c) Income, which relates to the company, as a whole and not allocable to a segment is included under un-allocable income.

d) i) Segment assets include those assets which are directly identifiable with respective segments and employed by a segment in its operating activities but does not include income tax assets.

ii) Segment liabilities include those liabilities directly identifiable to a segment and operating liability that result from operating activities of a segment, but does not include income tax liabilities and financial tax liabilities.

M. Taxation

The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the company. Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing differences that result between the profits offered for income tax and the profit as per the financial statements.

N. Borrowing Cost

Borrowing Cost that is attributable to the acquisition of qualifying assets is capitalized as part of such cost till the said assets put to use. All other borrowing cost is charged to revenue account.

O. Provision Contingent Liability & 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 outflow of recourses. Contingent liability are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

P. Earnings per Share

Basic earnings per share is computed by dividing net profit or loss for the period attributable to equity shareholders by the weighted average number of shares outstanding during the year. Diluted earnings per share amounts are computed after adjusting the effects of all dilutive potential equity shares. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share, and also the weighted average number of equity shares, which could have been issued on the conversion of all dilutive potential shares. In computing dilutive earnings per share, only potential equity shares that are dilutive and that decrease profit per share are included.

Q. Cash Flows

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


Mar 31, 2012

A. System of Accounting

a. The financial statements have been prepared and presented under the historical cost conventions using the accrual basis of accounting and complied with all the mandatory accounting standards as specified in Companies (Accounting Standard) Rules 2006, pronouncements of ICAI as applicable and the relevant provisions of the Companies Ac'1956, and guidelines issued by the Securities and Exchange Board of India.

b. All the 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 schedule VI to the Companies Act, 1956. Based on the nature of the product and time between the acquisition of assets for processing and their realization in cash & cash equivalent, the company has ascertained its operating cycle to be less than 12 months.

B. Revenue Recognition

a. Sales are inclusive of excise duty and VAT Collected and are net of trade discounts, if any.

b. Dividend income is recognized in the year when the right to received the payment is established.

c. Interest income is recognizes on time proportionate basis.

d. Non commitment charges are accounted on fulfillment of time of contract only.

C. Fixed Assets and Intangible Assets

Fixed assets are stated at cost of acquisition or construction, less accumulated depreciation. Cost includes inward freight, duties, taxes and incidental expenses related to acquisition and installation of the asset. Borrowing costs related to the acquisition or construction of the qualifying fixed assets for the assets for the period up to the completion of their acquisition or constructions are capitalized.

Intangible assets are recorded at the consideration paid for acquisition.

D. Depreciation and Amortization

a. Depreciation on fixed assets has been provided for under straight-line method at the rates prescribed in Schedule XIV of the Companies Act, 1956, on a pro-rata basis.

b. Intangible assets are amortization over their estimated useful lives on a straight line basis, commencing from the date the assets is available to the company for its use.

E. Valuation of Inventories

a. Raw material, stores and spares, fuel and packing materials are valued at cost (FIFO), including freight.

b. Finished goods are valued at market value or cost whichever is less. The by - Products are valued at net realizable value.

c. Stock of land of Real Estate division is valued on cost after capitalizing the expenses incurred on development of land.

d. The excise duty in respect of closing stock of finished goods is included as part of inventory. The amount of CENVAT Credit is respect of material consumed for sale is deducted from the cost of material.

F. Investment

Trade Investments are investments made to enhance the Company's business interests. Investments are either classified as current or long term based on the management's intention. Current Investments are carried at the lower of cost and fair value. Long term investments are carried at cost and provisions recorded to recognize any decline, other than temporary, in the carrying value of each investment.

G. Preliminary & Public Issue Expenses

Preliminary and public issue expenses are to be written off over a period of ten years.

H. Retirement benefits

The company's Contribution to provident funds is made to the recognized provident funds and is charged to the profit and loss account. The company has taken a gratuity policy from LIC of India and premium paid for the year has been debited to profit and loss account. The liability towards leave encasement has been ascertained by actuarial valuation using projected unit credit method done at the end of the financial year.

I. Lease Rent / Operating Lease

The payment of lease rent for office premises taken on leave and license basis are recognized as expenditure in the profit and loss account on a Straight Line basis.

J. Impairment of Assets

An asset is treated as impaired when the carrying cost of the assets 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.

K. Foreign currency transaction

Foreign exchange transactions are recorded at the rates of exchange on the date of respective transaction. The assets and liabilities designated in foreign currency are converted into the rupee at the rates of exchange prevailing as on the balance sheet date or at the contracted rate and corresponding adjustment is being made to the relevant income/expense and assets/liability.

L. Segment Accounting

The company has disclosed business segment as the primary segment. The segments have been identified after taking in to account the type of product, the differing risk and returns and internal reporting systems. The Segments identified by the company are as under:

1) Soya Division

2) Welding Division

3) Investment Division

4) Real Estate Division

The company for the segment reporting has followed the following accounting policies.

a) Segment revenue includes sales and other income directly identifiable with or allocable to a particular segment.

b) Segment expenses that are directly identifiable with allocable to a segment are considered for determining the segment results. The expenses, which relates to the company as a whole and not allocable to a particular segment are included under un-allocable expenses.

c) Income, which relates to the company, as a whole and not allocable to a segment is included under un-allocable income.

d) i) Segment assets include those assets which are directly identifiable with respective segments and employed by a segment in its operating activities but does not include income tax assets.

ii) Segment liabilities include those liabilities directly identifiable to a segment and operating liability that result from operating activities of a segment, but does not include income tax liabilities and financial tax liabilities.

M. Taxation

The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the company. Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing differences that result between the profits offered for income tax and the profit as per the financial statements.

N. Borrowing Cost

Borrowing Cost that is attributable to the acquisition of qualifying assets is capitalized as part of such cost till the said assets put to use. All other borrowing cost is charged to revenue.

O. Provision Contingent Liability & 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 outflow of recourses. Contingent liability are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

P. Earnings per Share

Basic earnings per share is computed by dividing net profit or loss for the period attributable to equity shareholders by the weighted average number of shares outstanding during the year. Diluted earnings per share amounts are computed after adjusting the effects of all dilutive potential equity shares. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share, and also the weighted average number of equity shares, which could have been issued on the conversion of all dilutive potential shares. In computing dilutive earnings per share, only potential equity shares that are dilutive and that decrease profit per share are included.

Q. Cash Flows

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows froMregular revenue generating, financing and investing activities of the Company are segregated.


Mar 31, 2010

1A. System of Accounting

The financial statements have been prepared and presented under the historical cost conventions using the accrual basis of accounting and complied with all the mandatory accounting standards as specified in Companies (Accounting } Standard) Rules 2006, pronouncements of ICAI as applicable and the relevant provisions of the Companies Act, 1956.

1B. Revenue Recognition

a. Sales are inclusive of excise duty and VAT Collected and are net of trade discounts, if any.

b. Dividend income is recognised in the year when the right to received the payment is established.

c. Interest income is recognised on time proportionate basis.

d. Non commitment charges are accounted on fulfillment of time of contract only.

1C. Fixed Assets and Intangible Assets

Fixed assets are stated at cost of acquisition or construction, less accumulated depreciation. Cost includes inward freight, duties, taxes and incidental expenses related to acquisition and installation of the asset. Borrowing costs related to the acquisition or construction of the qualifying fixed assets for the assets for the period upto the completion of their acquisition or constructions are capitalized. Intangible assets are recorded at the consideration paid for acquisition.

1D. Depreciation and Amortization

a. Depreciation on fixed assets has been provided for under straight-line method at the rates prescribed in Schedule XIV of the Companies Act, 1956, on a pro-rata basis.

b. Intangible assets are amortization over their estimated useful lives on a straight line basis, commencing from the date the assets is available to the company for its use.

1E. Inventories

a. Raw material, stores and spares, fuel and packing materials are valued at cost (FIFO), including freight.

b. Finished goods are valued at market value or cost whichever is less.The by - Products are valued at net realizable value.

c. Stock of land of Real Estate division is valued on cost after capitalizing the expenses incurred on development of land.

d. The excise duty in respect of closing stock of finished goods is included as part of inventory. The amount of CENVAT Credit is respect of material consumed for sale is deducted from the cost of material consumed.

1F. Investment

Trade Investments are investments made to enhance the Companys business interests. Investments are either classified as current or long term based on the managements intention. Current Investments are carried at the lower of cost and fair value. Long term investments are carried at cost and provisions recorded to recognise any decline, other than temporary, in the carrying value of each investment.

1G. Preliminary & Public Issue Expenses

Preliminary and public issue expenses are to be written of over a period often years.

1H. Retirement benefits

The companys Contribution to provident funds is made to the recognized provident funds and is charged to the profit and loss account. The company has taken a gratuity policy from LIC of India and premium paid for the year has been debited to profit and loss account. The liability towards leave encashment has been ascertained by actuarial valuation using projected unit credit method done at the end of the financial year.

2. Lease Rent / Operating Lease

The payment of lease rent for office premises taken on leave and license basis are recognized as expenditure in the profit and loss account on a Straight Line basis.

3. Impairment of Assets

An asset is treated as impaired when the carrying cost of the assets 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.

4. Foreign currency transaction

Foreign exchange transactions are recorded at the rates of exchange on the date of respective transaction. The assets and liabilities designated in foreign currency are converted into the rupee at the rates of exchange prevailing as on the balance sheet date or at the contracted rate and corresponding adjustment is being made to the relevant income/expense and assets/liability

5. Segment Accounting

The company has disclosed business segment as the primary segment. The segments have been identified after taking in to account the type of product, the differing risk and returns and internal reporting systems. The Segments identified by the company are as under:

1) Soya Division

2) Welding Division

3) Investment Division

4) Real Estate Division

5) Biotech Division

The company for the segment reporting has followed the following accounting policies.

a) Segment revenue includes sales and other income directly identifiable with or allocable to a particular segment.

b) Segment expenses that are directly identifiable with allocable to a segment are considered for determining the segment results. The expenses, which relates to the company as a whole and not allocable to a particular segment are included under un-allocable expenses.

c) Income, which relates to the company, as a whole and not allocable to a segment is included under un-allocable income.

d) i) Segment assets include those assets which are directly identifiable with respective segments and employed by a segment in its operating activities but does not include income tax assets.

ii) Segment liabilities include those liabilities directly identifiable to a segment and operating liability that result from operating activities of a segment, but does not include income tax liabilities and financial tax liabilities.

6. Taxation

The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the company. Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing differences that result between the profits offered for income tax and the profit as per the financial statements.

7. Borrowing Cost

Borrowing Cost that is attributable to the acquisition of qualifying assets is capitalized as part of such cost till the said assets put to use. All other borrowing cost is charged to revenue.

8. Provision Contingent Liability & 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 outflow of recourses. Contingent liability are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

9. Earnings per Share

Basic earnings per share is computed by dividing net profit or loss for the period attributable to equity shareholders by the weighted average number of shares outstanding during the year. Diluted earnings per share amounts are computed after adjusting the effects of all dilutive potential equity shares. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share, and also the weighted average number of equity shares, which could have been issued on the conversion of all dilutive potential shares. In computing dilutive earnings per share, only potential equity shares that are dilutive and that decrease profit per share are included.

10. Cash Flows

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


Mar 31, 2009

1. System of Accounting

a. The financial statements have been prepared under the historical cost conventions in accordance with the generally accepted accounting principles.

b. The accounts of the company are prepared using accrual method of accounting except for dividend that is accounted for on receipt basis.

2. Sales

Sales are inclusive of excise duty and VAT Collected and are net of trade discounts, if any.

3. Fixed Assets

Fixed assets are stated at historical cost to the company and include financing cost relating to acquisition of fixed assets up to the date the asset is put to use.

4. Depreciation

Depreciation on fixed assets has been provided for under straight-line method at the rates prescribed in Schedule XIV of the Companies Act, 1956, on a pro-rata basis.

5. Inventories

a. RRaw material, stores and spares, fuel and packing materials are valued at cost (FIFO), including freight.

b. Finished goods are valued at market value or cost whichever is less. The by Products are valued at net realizable value.

c. Stock of land of Real Estate division is valued on cost after capitalizing the expenses incurred on development of land.

6. Investment

Investments are valued at cost and provision has been made towards diminution in the market value of such investments.

7. Amortization

Preliminary and public issue expenses are to be written of over a period of the ten years.

8. Retirement benefits

Retirement benefits are dealt with in the following manner.

Contribution to provident funds is made to the recognized provident funds and is charged to the profit and loss account. The company has taken a gratuity policy from LIC of India and premium paid for the year has been debited to profit and loss account. The liability towards leave encashment has been ascertained by actuarial valuation using projected unit credit method done at the end of the financial year.

9. Central Value Added Tax (CENVAT)

CENVAT claimed on capital goods is reduced from the cost of plant and machinery capital work in progress. CENVAT claimed on purchase of raw material and others is reduced from the cost of such material.

10. Lease Rent

The payment of lease rent for office premises taken on leave and license basis are recognized as expenditure in the profit and loss account.

11. Impairment of Assets

An asset is treated as impaired when the carrying cost of the assets 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 periods is reversed if there has been upward change in the estimate of the recoverable amount.

12. Foreign currency transaction

Foreign exchange transactions are recorded at the rates of exchange on the date of respective transaction. The assets and liabilities designated in foreign currency are converted into the rupee at the rates of exchange prevailing as on the balance sheet date or at the contracted rate and corresponding adjustment is being made to the relevant income/expense and assets/liability

13. Segment Accounting

The company has disclosed business segment as the primary segment. The segments have been identified after taking in to account the type of product, the differing risk and returns and internal reporting systems. The Segments identified by the company are as under:

1) Soya Division

2) Welding Division

3) Investment Division

4) Real Estate Division

5) Biotech Division

The company for the segment reporting has followed the following accounting policies.

a) Segment revenue includes sales and other income directly identifiable with or allocable to a particular segment.

b) Segment expenses that are directly identifiable with allocable to a segment are considered for determining the segment results. The expenses, which relates to the company as a whole and not allocable to a particular segment are included under un-allocable expenses.

c) Income, which relates to the company, as a whole and not allocable to a segment is included under un-allocable income.

d) i) Segment assets include those assets which are directly identifiable with respective segments and employed by a segment in its operating activities but does not include income tax assets.

ii) Segment liabilities include those liabilities directly identifiable to a segment and operating liability that result from operating activities of a segment, but does not include income tax liabilities and financial tax liabilities

14. Taxation

The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the company. Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing differences that result between the profits offered for income tax and the profit as per the financial statements.

15. Borrowing Cost

Borrowing Cost that is attributable to the acquisition of qualifying assets is capitalized as part of such cost till the said assets put to use. All other borrowing cost is charged to revenue.

16. Provision Contingent Liability & 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 outflow of recourses. Contingent liability are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

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