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Accounting Policies of Haldyn Glass Ltd. Company

Mar 31, 2014

1. Basis of Preparation of Financial Statements

The Financial Statements have been prepared under historical cost convention in accordance with the generally accepted accounting principles [GAAP] prevalent in India and the mandatory Accounting Standards as notified by the Companies [Accounting Standards] Rules, 2006 as adopted consistently by the Company, the provisions of the Companies Act, 2013 [to the extent applicable] read with the General Circular No. 08/2014 dated 4th April 2014 issued by the Ministry of Corporate Affairs and the provisions of the Companies Act, 1956 [to the extent applicable] as amended from time to time. The Company follows mercantile system of accounting and recognises significant items of Income and Expenditure on accrual basis.

2. Use of estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reported period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from estimates. Differences between the actual results and estimates are recognized in the period in which the results are known/ materialized.

3. Fixed Assets

Fixed Assets are stated at cost [net of recoverable taxes], including the amount added on revaluation less accumulated depreciation and impairment loss, if any. Intangible Assets are stated at cost of acquisition less accumulated amortisation. The expenditure during construction period and the cost of financing till the Assets are put to use is allocated to the cost of Building and Plant and Machineries. The foreign exchange differences in respect of liabilities for the acquisition of imported assets are recognized and charged to the Statement of Profit & Loss.

4. Depreciation

The Company is providing depreciation on Fixed Assets on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 except in respect of Captive Power Plant where depreciation is provided on Written Down Value Method. ERP Software is amortised under straight line method over a period of 6 years and Furnaces are depreciated under straight line method over a period of 5 years being their respective estimated useful lives. Depreciation on leasehold improvements are charged over the period of lease.

5. Investments

Long-term investments are stated at cost. Provision for diminution in the value of such investments is made only if the decline is of a permanent nature. Current investments are valued at lower of cost or market value.

6. Inventories

Inventories are valued at lower of cost or market value. Cost comprises of all costs of purchase [net of CENVAT], cost of conversion and other costs incurred in bringing the inventory to their present location and condition. Cost of raw materials, stores and spares, packing materials and other products are determined on FIFO method. Cost of work in Progresses & Finished Goods are determined on absorption costing method.

7. Revenue Recognition

Sales are net of trade discounts and excludes Sales tax and Vat recovered, but inclusive of excise duty recovered. Revenue from sale of goods is recognized when the substantial risks and rewards is transferred to the buyer and where no uncertainty exists as to its realization.

Dividend Income is recognized when the right to receive the same is established. Interest income is recognized on time proportionate basis.

Complied by: Dion Global Solutions Limited

Haldyn Glass Limited

8. Foreign Exchange Transactions

Transactions in Foreign Currencies are recorded at the exchange rate prevailing on the date of transaction. Premium on Forward Cover Contracts in respect of import of Materials is charged to the Statement of Profit and Loss over the period of the Contract. Foreign Currency Monetary items of Loans, Current Assets and Current Liabilities as at the Balance Sheet date are converted to Rupees at the Exchange Rate on that date. The resultant net loss or income is accounted in the Statement of Profit and Loss.

9. Excise Duty

Excise duty is accounted on the basis of payments made in respect of goods cleared and provision made for goods lying in Excise Bonded Warehouse.

Sales Tax and Modvat/Cenvat credit availed on raw material and other expenses during the year is adjusted against the cost of Raw Material and respective expenses.

10. Employee retirement Benefits Short term employee benefits:

All short term employee benefits such as salaries, wages, bonus, allowances, medical, ex-gratia which fall due within 12 months of the period in which the employee renders the related services which entitles him to avail such benefits and non-accumulating compensated absences (like sick leave and maternity leave) are recognised on an undiscounted basis and charged to the Statement of Profit and Loss.

Defined contribution plan:

Company''s contributions paid / payable during the year to Provident Fund are charged to Statement of Profit and Loss.

Defined Benefit Plan:

Company''s liability under the Payment of Gratuity Act is determined by actuarial valuation made at the end of each financial year. Liability for leave encashment is determined by actuarial valuation based on accumulated leave credit allowed to be carried forward and outstanding to the employees as on the Balance Sheet date.

11. Lease

Operating Lease rentals are charged to the Statement of Profit & Loss.

12. Borrowing cost

Borrowing costs that are attributable to qualifying assets are capitalised. All other borrowing costs are charged to the Statement of Profit and Loss.

13. Provisions and contingent liabilities and contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the Notes on Accounts. Contingent assets are neither recognised nor disclosed in the financial statements.

14. Impairment of assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit & Loss in the year in which asset is identified as impaired.

15. Income tax and Deferred tax

Provision for Income Tax comprises current taxes and deferred taxes. Current tax is determined as the amount of tax payable in respect of taxable income for the period.

Deferred tax is recognised on timing differences between the accounting income & the taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

Deferred tax assets are recognised and carried forward to the extent that there is a reasonable/virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

Terms and rights attached to equity shares

(i) The Company has only one class of Equity Shares having a par value of '' 1 per share. Each holder of Equity Shares is entitled to one vote per share.

(ii) They are entitled to dividend if proposed by the Board of Directors and approved by the shareholders in the ensuing Annual General Meeting.

(iii) In the event of liquidation the equity shareholders are entitled to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to their share holding.

Nature of Security and terms of Loan

- Working capital facilities from Banks are secured by hypothecation of entire current assets of Company, present and future, on Pari Passu basis along with a second charge on the entire fixed assets of the Company.

- Working capital loans carry interest rate ranging from 0.5% to 3.5% above Bank''s base rate, payable on monthly rests.

* The fixed deposits consists Rs. 45.94 lacs (PY Rs. Nil ) pledged against pending litigations filed by the Company.

i) Assumptions relating to future salary increases, attrition, interest rate for discount and overall expected rate of return on Assets have been considered based on relevant economic factors such as inflation, market growth & other factors applicable to the period over which the obligation is expected to be settled.

ii) The Company expects to contribute Rs.2 Lacs to gratuity fund in 2014-15.


Mar 31, 2013

1. Basis of Preparation of financial Statements

The Financial Statements have been prepared under historical cost convention in accordance with the generally accepted accounting principles [GAAP] prevalent in India and the mandatory Accounting Standards as notifed by the Companies [Accounting Standards] Rules, 2006 as adopted consistently by the Company and the provisions of the Companies Act, 1956 as amended from time to time. The Company follows mercantile system of accounting and recognises signifcant items of Income and Expenditure on accrual basis.

2. Use of estimates

The preparation of fnancial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the fnancial statements and the reported amount of revenues and expenses during the reported period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from estimates. Differences between the actual results and estimates are recognized in the period in which the results are known/ materialized.

3. fixed assets

Fixed Assets are stated at cost [net of recoverable taxes], including the amount added on revaluation less accumulated depreciation and impairment loss, if any. Intangible Assets are stated at cost of acquistion less accumulated amortisation. The expenditure during construction period and the cost of fnancing till the Assets are put to use is allocated to the cost of Building and Plant and Machineries. The foreign exchange differences in respect of liabilities for the acquisition of imported assets are recognized and charged to Proft & Loss Account.

4. Depreciation

The Company is providing depreciation on Fixed Assets on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 except in respect of Captive Power Plant where depreciation is provided on Written Down Value Method. ERP Software is amortised under straight line method over a period of 6 years and Furnaces are depreciated under straight line method over a period of 5 years being their respective estimated useful lives.

5. Investments

Long-term investments are stated at cost. Provision for diminution in the value of such investments is made only if the decline is of a permanent nature.

6. Inventories

Inventories are valued at lower of cost or market value. Cost comprises of all costs of purchase [net of CENVAT], cost of conversion and other costs incurred in bringing the inventory to their present location and condition. Cost of raw materials, stores and spares, packing materials and other products are determined on FIFO method. Cost of work in Processes & Finished Goods are determined on absorption costing method.

7. revenue recognition

Sales are net of trade discounts and excludes Sales tax and Vat recovered, but inclusive of excise duty recovered. Revenue from sale of goods is recognized when the substantial risks and rewards is transferred to the buyer and where no uncertainty exists as to its realization.

Dividend Income is recognized when the right to receive the same is established. Interest income is recognized on time proportionate basis.

8. foreign exchange transactions

Transactions in Foreign Currencies are recorded at the exchange rate prevailing on the date of transaction. Premium on Forward

Cover Contracts in respect of import of Materials is charged to the Statement of Proft and Loss over the period of the Contract. Foreign Currency Monetary items of Loans, Current Assets and Current Liabilities as at the Balance Sheet date are converted to Rupees at the Exchange Rate on that date. The resultant net loss or income is accounted in the Statement of Proft and Loss.

9. excise Duty

Excise duty is accounted on the basis of payments made in respect of goods cleared and provision made for goods lying in Excise Bonded Warehouse.

Sales Tax and Modvat/Cenvat credit availed on raw material and other expenses during the year is adjusted against the cost of Raw Material and respective expenses.

10. employee retirement Benefits

Short term employee benefits:

All short term employee benefts such as salaries, wages, bonus, allowances, medical, ex-gratia which fall due within 12 months of the period in which the employee renders the related services which entitles him to avail such benefts and non-accumulating compensated absences [like sick leave and maternity leave] are recognised on an undiscounted basis and charged to the Statement of Proft and Loss.

Defined contribution plan:

Company''s contributions paid / payable during the year to Provident Fund are charged to Statement of Proft and Loss.

Defined Benefit Plan:

Company''s liability under the Payment of Gratuity Act is determined by actuarial valuation made at the end of each fnancial year. Liability for leave encashment is determined by actuarial valuation based on accumulated leave credit allowed to be carried forward and outstanding to the employees as on the Balance Sheet date.

11. lease

Operating Lease rentals are charged to the Statement of Proft & Loss.

12. Borrowing cost

Borrowing costs that are attributable to qualifying assets are capitalised. All other borrowing costs are charged to the Statement of Proft and Loss.

13. Provisions and contingent liabilities and contingent assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outfow of resources. Contingent liabilities are not recognised but are disclosed in the Notes on Accounts. Contingent assets are neither recognised nor disclosed in the fnancial statements.

14. Impairment of assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Statement of Proft & Loss in the year in which asset is identifed as impaired.

15. Income tax and Deferred tax

Provision for Income Tax comprises current taxes and deferred taxes. Current tax is determined as the amount of tax payable in respect of taxable income for the period.

Deferred tax is recognised on timing differences between the accounting income & the taxable income for the year and quantifed using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

Deferred tax assets are recognised and carried forward to the extent that there is a reasonable/virtual certainty that suffcient future taxable income will be available against which such deferred tax asset can be realized.


Mar 31, 2012

1. Basis of Preparation of financial Statements

The Financial Statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956. The Company generally follows mercantile system of accounting and recognises significant items of Income and Expenditure on accrual basis.

2. Use of estimates

The presentation of financial statements require estimates and assumption to be made which affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of income and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known / materialised.

3. Fixed Assets

Fixed Assets are stated at cost [net of income and recoverable taxes], including the amount added on revaluation less accumulated depreciation and impairment loss, if any. The expenditure during construction period and the cost of financing till the Assets are put to use are allocated to the cost of respective assets.

4. Depreciation

The Company is providing depreciation on Fixed Assets on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 except in respect of Captive Power Plant where depreciation is provided on Written Down Value Method. ERP Software is depreciated over a period of 6 years and Furnaces are depreciated over a period of 5 years being their respective estimated useful lives.

5. Investments

Long-term investments are stated at cost. Provision for diminution in the value of such investments is made only if the decline is of a permanent nature.

6. Inventories

Inventories are valued at cost except for finished goods, which are valued at lower of cost or market value. Cost comprises of all costs of purchase [net of CENVAT], cost of conversion and other costs incurred in bringing the inventory to their present location and condition. Cost of raw materials, stores and spares, packing materials and other products are determined on FIFO method basis.

7. Sales

Sales include Excise duty and exclude Sales Tax.

8. Foreign Exchange Transactions

Transactions in Foreign Currencies are recorded at the exchange rate prevailing on the date of transaction. Premium on Forward Cover Contracts in respect of import of Materials is charged to the Statement of Profit and Loss over the period of the Contract. Foreign Currency Monetary items of Loans, Current Assets and Current Liabilities as at the Balance Sheet date are converted to Rupees at the Exchange Rate on that date. The resultant net loss or income is accounted in the Statement of Profit and Loss.

9. Excise Duty

Excise duty is accounted on the basis of payments made in respect of goods cleared and provision made for goods lying in Excise Bonded Warehouse.

10. Employee Retirement Benefits

Short term employee benefits:

All short term employee benefits such as salaries, wages, bonus, allowances, medical, ex-gratia which fall due within 12 months of the period in which the employee renders the related services which entitles him to avail such benefits and non-accumulating

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2012

Compensated absences [like sick leave and maternity leave] are recognised on an undiscounted basis and charged to the Statement of Profit and Loss.

Defined contribution plan:

Company's contributions to Provident Fund paid / payable during the year are charged to the Statement of Profit and Loss .

Defined Benefit Plan:

Company's liability under the Payment of Gratuity Act is determined by actuarial valuation made at the end of each financial year using the projected unit credit method. Liability for leave encashment is determined by actuarial valuation based on accumulated leave credit allowed to be carried forward and outstanding as on the Balance Sheet date.

11. Lease

Operating Lease rentals are charged to the Statement of Profit and Loss over the lease term.

12. Borrowing cost

Borrowing costs that are attributable to qualifying assets are capitalised. All other borrowing costs are charged to the Statement of Profit and Loss.

13. Intangible assets

Intangible assets are stated at cost of acquisition less accumulated amortisation.

14. Provisions and contingent liabilities and contingent assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the Notes on Financial Statements. Contingent assets are neither recognised nor disclosed in the financial statements.

15. Impairment of assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which asset is identified as impaired.


Mar 31, 2011

1. Basis of Preparation of Financial Statements

The Financial Statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956. The Company generally follows mercantile system of accounting and recognises significant items of Income and Expenditure on accrual basis.

2. Use of Estimates

The presentation of financial statements require estimates and assumptions to be made which affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of income and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known / materialised.

3. Fixed Assets

Fixed Assets are stated at cost [net of income], net of CENVAT, including the amount added on revaluation and accumulated depreciation. The expenditure during construction period and the cost of financing till the Assets are put to use is allocated to the cost of Assets for which the costs are incurred.

4. Depreciation

The Company is providing depreciation on Fixed Assets on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 except in respect of Captive Power Plant where depreciation is provided on Written Down Value Method. On straight line method, ERP Softwares are depreciated over a period of 6 years and Furnaces are depreciated over a period of 5 years being their respective estimated useful lives.

5. Investments

Long-term investments are stated at cost. Provision for diminution in the value of such investments is made only if the decline is of a permanent nature.

6. Inventories

Inventories are valued at cost except for finished goods, which are valued at lower of cost or market value. Cost comprises of all costs of purchase [net of CENVAT], cost of conversion and other costs incurred in bringing the inventory to their present location and condition.

7. Sales

Sales include Excise duty and Sales Tax.

8. Foreign Exchange Transactions

Transactions in Foreign Currencies are recorded at the exchange rate prevailing on the date of transaction. Premium on Forward Cover Contracts in respect of import of Materials is charged to the Profit and Loss Account over the period of the Contract. Foreign Currency Monetary items of Loans, Current Assets and Current Liabilities as at the Balance Sheet date are converted to Rupees at the Exchange Rate on that date. The resultant net loss or income is accounted in the Profit and Loss Account.

9. Excise Duty

Excise duty is accounted on the basis of payments made in respect of goods cleared and provision made for goods lying in Excise Bonded Warehouse.

10. Employee retirement Benefits

Short term employee benefits:

All short term employee benefits such as salaries, wages, bonus, allowances, medical, ex-gratia which fall due within 12 months of the period in which the employee renders the related services which entitles him to avail such benefits and non-accumulating compensated absences [like sick leave and maternity leave] are recognised on an undiscounted basis and charged to the Profit and Loss Account.

Defined contribution plan:

Company's contributions paid / payable during the year to Provident Fund are charged to the Profit and Loss account.

Defined Benefit Plan:

Company's liability under the Payment of Gratuity Act is determined by actuarial valuation made at the end of each financial year using the Projected Unit Credit Method. Liability for leave encashment is determined by actuarial valuation based on accumulated leave, credit allowed to be carried forward and outstanding to the employees as on the Balance Sheet date.

11. Lease

Operating Lease rentals are charged to the Profit and Loss Account over the lease term.

12. Borrowing Cost

Borrowing costs that are attributable to qualifying assets are capitalised. All other borrowing costs are charged to the Profit and Loss account.

13. Intangible Assets

Intangible assets are stated at cost of acquisition less accumulated amortisation.

14. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the Notes on Accounts. Contingent assets are neither recognised nor disclosed in the financial statements.

15. Impairment of assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which asset is identified as impaired.


Mar 31, 2010

1. Basis of Preparation of Financial Statements

The Financial Statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956. The Company generally follows mercantile system of accounting and recognises significant items of Income and Expenditure on accrual basis.

2. Use of Estimates

The presentation of financial statements require estimates and assumptions to be made which affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of income and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known / materialised.

3. Fixed Assets

Fixed Assets are stated at cost [net of income], net of CENVAT, including the amount added on revaluation and accumulated depreciation. The expenditure during construction period and the cost of financing till the Assets are put to use is allocated to the cost of Building and Plant and Machinery.

4. Depreciation

The Company is providing depreciation on Fixed Assets on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 except in respect of Captive Power Plant where depreciation is provided on Written Down Value Method. ERP software is depreciated at the rate of 16.21% per annum for 6 years, being the useful life of the software in the view of the management.

5. Investments

Long-term investments are stated at cost. Provision for diminution in the value of such investments is made only if the decline is of a permanent nature.

6. Inventory

Inventory is valued at cost except for finished goods, which are valued at lower of cost or market value. Cost comprises of all costs of purchase [net of CENVAT], cost of conversion and other costs incurred in bringing the inventory to their present location and condition. Inventories [others] includes machinery scrap which are stated at Net Realisable Value.

7. Sales

Sales include Excise duty and Sales Tax.

8. Foreign Exchange Transactions

Transactions in Foreign Currencies are recorded at the exchange rate prevailing on the date of transaction. Premium on Forward Cover Contracts in respect of import of Materials is charged to the Profit and Loss Account over the period of the Contract. Foreign Currency Monetary items of Loans, Current Assets and Current Liabilities as at the Balance Sheet date are converted to Rupees at the Exchange Rate on that date. The resultant net loss or income is accounted in Profit and Loss Account.

9. Excise Duty

Excise duty is accounted on the basis of payments made in respect of goods cleared and provision made for goods lying in Excise Bonded Warehouse.

10. Employee retirement Benefits

Short term employee benefits:

All short term employee benefits such as salaries, wages, bonus, allowances, medical, ex-gratia which fall due within 12 months of the period in which the employee renders the related services which entitles the employee to avail such benefits and non-accumulating compensated absences [like sick leave and maternity leave] are recognised on an undiscounted basis and charged to the Profit and Loss Account.

Defined contribution plan:

Companys contributions paid / payable during the year to Provident Fund are charged to Profit and Loss account.

Defined Benefit Plan:

Companys liability under the Payment of Gratuity Act is determined by actuarial valuation made at the end of each financial year using the projected unit credit method. Liability for leave encashment is determined by actuarial valuation based on accumulated leave credit allowed to be carried forward and outstanding to the employees as on the Balance Sheet date.

11. Lease

Operating Lease rentals are charged to Profit & Loss Account over the lease term.

12. Borrowing Cost

Borrowing costs that are attributable to qualifying assets are capitalised. All other borrowing costs are charged to Profit and Loss account.

13. Intangible Assets

Intangible assets are stated at cost of acquisition less accumulated amortisation.

14. Provisions and Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the Notes on Accounts. Contingent assets are neither recognised nor disclosed in the financial statements.

15. Impairment of assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to Profit & Loss Account in the year in which asset is identified as impaired.

 
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