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.