Mar 31, 2014
1.1 Basis of accounting and preparation of financial statements
The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles ("GAAP"), the mandatory
Accounting Standards issued by the Institute of Chartered Accountants
of India and prescribed by the Companies (Accounting Standards) Rules,
2006, the provisions of the Companies Act, 1956 and the guidelines
prescribed by the Securities and Exchange Control Board of India(SEBI).
The Company has been consistent in its accounting policies. Change in
the accounting policies, however is disclosed separately.
1.2 USE OF ESTIMATES
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known / materialise.
1.3 Inventories
Finished Goods are valued at lower of cost plus appropriate share of
production overheads or net realisable value which ever is less. Raw
materials and Consumable stores and stock of traded goods, are valued
on first in first out (FIFO) basis. Glass Cut Pieces are valued at
average rate of raw material of respective thickness and quality.
1.4 cash and cash equivalents (for purposes of cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are shortterm balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
1.5 cash flow statement
The Cash Flow Statement is prepared by the indirect method set out in
Accounting Standard (AS-3) on Cash Flow Statements and presents the
cash flows by operating, investing and financing activities of the
Company.
1.6 Depreciation and amortisation Depreciation has been provided on the
straight-line method as per the rates prescribed in Schedule XIV to the
Companies Act, 1956. Depreciation on additions and deletions to Fixed
Assets is provided on pro-rata basis for the number of days the asset
has been put to use.
1.7 Revenue recognition
Sales are recognised, net of returns and trade discounts, on transfer
of significant risks and rewards of ownership to the buyer, which
generally coincides with the delivery of goods to customers. Sales are
net off Excise Duty, Sales tax and value added tax. Export Sales are
accounted by converting the Foreign Currency amount at the rate of
exchange fixed by the Customs Authority. On realization of export
proceeds, the difference between the amount realized and the amount
booked is charged off / back to Statement of Profit and Loss as Loss /
Gain due to exchange rate difference.
1.8 other income
Interest income is accounted on the basis of proportionate period of
investment, considering the amount of investment and the rate of
interest. Dividend income is accounted when the right to receive it is
established. Liabilities no longer required are written back to income.
1.9 Tangible fixed assets
The Fixed assets are stated at cost, inclusive of inward freight,
duties and taxes (Net off input credits claimed), installation and
commissioning expenses, incidental expenses incurred for the assets to
be gainfully put to use, less accumulated depreciation. Where the
assets are installed and commissioned, but fail to deliver the required
results to the satisfaction of the Company''s management, the same are
not capitalized and are carried forward to the next year as Capital
WIP. Revenue expenses incurred in connection with project
implementation in so far as such expenses relate to the period prior to
the commencement of commercial activity are treated as pre operative
expenses to be charged off after the commencement of commercial
activity.
The Company revalued its Land and Buildings as on 31st March, 2011. The
revalued assets are carried at the revalued amounts less accumulated
depreciation and impairment losses, if any. Increase in the net book
value on such revaluation is credited to "Revaluation reserve account"
except to the extent such increase is related to and not greater than a
decrease arising from a revaluation / impairment that was previously
recognised in the Statement of Profit and Loss, in which case such
amount is credited to the Statement of Profit and Loss. Decrease in
book value on revaluation is charged to the Statement of Profit and
Loss except where such decrease relates to a previously recognised
increase that was credited to the Revaluation reserve, in which case
the decrease is charged to the Revaluation reserve to the extent the
reserve has not been subsequently reversed / utilised. Whenever a
revalued asset is sold or disposed off, the balance revaluation reserve
pertaining to such asset is reversed and transferred to General
Reserve.
Fixed assets retired from active use and held for sale are stated at
the lower of their net book value and net realisable value and are
disclosed separately in the Balance Sheet.
Capital work-in-progress:
Projects undertaken by the Company where assets are not ready for their
intended use and other capital work-in-progress are carried at cost,
comprising direct cost, related incidental and allocable expenses and
attributable interest.
1.10 Intangible assets
Intangible assets are carried at cost less accumulated amortisation and
impairment losses, if any.
1.11 Foreign currency transactions and translations Initial recognition
Transactions in foreign currencies entered into by the Company are
accounted at the exchange rates applied by the customs authorities to
the respective transactions.
Measurement of foreign currency monetary items at the Balance Sheet
date
"Foreign currency monetary items (other than derivative contracts) of
the Company and its net investment in non-integral foreign operations
outstanding at the Balance Sheet date are restated at the year end at
the exchange rates prevailing on that date. Revenue and expenses are
translated at the exchange rates prevailing during the year. Exchange
differences arising out of these translations are charged to the
Statement of Profit and Loss."
Treatment of exchange differences
Exchange differences arising on settlement / restatement of foreign
currency monetary assets and liabilities of the Company are recognised
as income or expense in the Statement of Profit and Loss.
Accounting for Forward Contacts Premium on forward exchange contracts,
which are not intended for trading or speculation purposes, are
amortised over the period of the contracts. Exchange differences on
such contracts are recognised in the Statement of Profit and Loss
during the year when a transaction takes place and also as at the
Reporting date for the balances carried forward in the books of
account.
1.12 Government grants, subsidies and export incentives
Government grants and subsidies are recognised when there is reasonable
assurance that the Company will comply with the conditions attached to
them and the grants / subsidy will be received. Government grants whose
primary condition is that the Company should purchase, construct or
otherwise acquire capital assets are presented by deducting them from
the carrying value of the assets. The grant is recognised as income
over the life of a depreciable asset by way of a reduced depreciation
charge.
1.13 Investments
"Long-term investments (excluding investment properties), are carried
individually at cost less provision for diminution, other than
temporary, in the value of such investments. Current investments are
carried individually, at the lower of cost and fair value. Cost of
investments include acquisition charges such as brokerage, fees and
duties."
1.14 Employee benefits
Employee benefits include provident fund, gratuity fund, compensated
absences and medical expense reimbursements.
Defined contribution plans
The Company''s contribution to Provident Fund and Gratuity Fund are
considered as defined contribution plans and are charged as an expense
as they fall due based on the amount of contribution required to be
made.
Defined benefit plans
For defined benefit plans in the form of Gratuity and Compensated
Absences, the cost of providing benefits is determined on the actuarial
valuation basis. The actuarial valuation being carried out at each
Balance Sheet date, Actuarial gains and losses are recognised in the
Statement of Profit and Loss in the period in which they occur. Past
service cost is recognised to the extent that the benefits are already
vested and otherwise is amortised on a straight-line basis over the
average period until the benefits become vested. The retirement benefit
obligation recognised in the Balance Sheet represents the present value
of the defined benefit obligation as adjusted for unrecognised past
service cost, as reduced by the fair value of scheme assets. Any asset
resulting from this calculation is limited to past service cost, plus
the present value of available refunds and reductions in future
contributions to the schemes.
Short-term employee benefits
"The undiscounted amount of short-term employee benefits expected to be
paid in exchange for the services rendered by employees are recognised
during the year when the employees render the service. These benefits
include performance incentive and compensated absences which are
expected to occur within twelve months after the end of the period in
which the employee renders the related service. The cost of such
compensated absences is accounted as under :
(a) in case of accumulated compensated absences, when employees render
the services that increase their entitlement of future compensated
absences; and
(b) in case of non-accumulating compensated absences, when the absences
occur."
Long-term employee benefits
Compensated absences which are not expected to occur within twelve
months after the end of the period in which the employee renders the
related service are recognised as a liability at the present value of
the defined benefit obligation as at the Balance Sheet date less the
fair value of the plan assets out of which the obligations are expected
to be settled.
1.15 Borrowing costs
Borrowing costs include interest, amortisation of ancillary costs
incurred and exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to the
interest cost. Costs in connection with the borrowing of funds to the
extent not directly related to the acquisition of qualifying assets are
charged to the Statement of Profit and Loss. Borrowing costs, allocated
to and utilised for qualifying assets, pertaining to the period from
commencement of activities relating to construction / development of
the qualifying asset upto the date of capitalisation of such asset is
added to the cost of the assets. Capitalisation of borrowing costs is
suspended and charged to the Statement of Profit and Loss during
extended periods when active development activity on the qualifying
assets is interrupted.
1.16 Segment reporting
The Company identifies primary segment based on the dominant source,
nature of risks and returns and the internal organisation and
management structure. The operating segments are the segments for which
separate financial information is available and for which operating
profit/loss amounts are evaluated regularly by the executive Management
in deciding how to allocate resources and in assessing performance.
"The accounting policies adopted for segment reporting are in line with
the accounting policies of the Company. Segment revenue, segment
expenses, segment assets and segment liabilities have been identified
to segments on the basis of their relationship to the operating
activities of the segment. Revenue, expenses, assets and liabilities
which relate to the Company as a whole and are not allocable to
segments on reasonable basis have been included under "unallocated
revenue / expenses / assets / liabilities"."
1.17 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year. Diluted earnings per share is computed by dividing the profit
/ (loss) after tax (including the post tax effect of extraordinary
items, if any) as adjusted for dividend, interest and other charges to
expense or income relating to the dilutive potential equity shares, by
the weighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of equity
shares which could have been issued on the conversion of all dilutive
potential equity shares. Potential equity shares are deemed to be
dilutive only if their conversion to equity shares would decrease the
net profit per share from continuing ordinary operations. Potential
dilutive equity shares are deemed to be converted as at the beginning
of the period, unless they have been issued at a later date. Dilutive
potential equity shares are determined independently for each period
presented. The number of equity shares and potentially dilutive equity
shares are adjusted for share splits / reverse share splits and bonus
shares, as appropriate.
1.18 Taxes on income
"Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly, MAT
is recognised as an asset in the Balance Sheet when it is probable that
future economic benefit associated with it will flow to the Company.
Deferred tax is recognised on timing differences, being the differences
between the taxable income and the accounting income that originate in
one period and are capable of reversal in one or more subsequent
periods. Deferred tax is measured using the tax rates and the tax laws
enacted or substantially enacted as at the reporting date. Deferred tax
liabilities are recognised for all timing differences. Deferred tax
assets in respect of unabsorbed depreciation and carry forward of
losses are recognised only if there is virtual certainty that there
will be sufficient future taxable income available to realise such
assets. Deferred tax assets are recognised for timing differences of
other items only to the extent that reasonable certainty exists that
sufficient future taxable income will be available against which these
can be realised. Deferred tax assets and liabilities are offset if such
items relate to taxes on income levied by the same governing tax laws
and the Company has a legally enforceable right for such set off.
Deferred tax assets are reviewed at each Balance Sheet date for their
realisability."
1.19 Impairment of assets
The carrying values of assets / cash generating units at each Balance
Sheet date are reviewed for impairment. If any indication of impairment
exists, the recoverable amount of such assets is estimated and
impairment is recognised, if the carrying amount of these assets
exceeds their recoverable amount. The recoverable amount is the greater
of the net selling price and their value in use. Value in use is
arrived at by discounting the future cash flows to their present value
based on an appropriate discount factor. When there is indication that
an impairment loss recognised for an asset in earlier accounting
periods no longer exists or may have decreased, such reversal of
impairment loss is recognised in the Statement of Profit and Loss,
except in case of revalued assets.
1.20 Provisions and contingencies
A provision is recognised when the Company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions (excluding retirement
benefits) are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and
adjusted to reflect the current best estimates. Contingent liabilities
are disclosed in the Notes. Contingent Assets are neither recognised
nor disclosed in the financial statements.
Mar 31, 2012
1.1 Basis of accounting and preparation of financial statements
The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles ("GAAP"), the mandatory
Accounting Standards issued by the Institute of Chartered Accountants
of India and prescribed by the Companies (Accounting Standards) Rules,
2006, the provisions of the Companies Act, 1956 and the guidelines
prescribed by the Securities and Exchange Control Board of India(SEBI).
The Company has been consistent in its accounting policies. Change in
the accounting policies, however is disclosed separately.
1.2 Use of Estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future re- sults
could differ due to these estimates and the differences between the
actual results and the estimates are recognized in the periods in which
the results are known / materialize.
1.3 Inventories
Finished Goods are valued at lower of cost plus appropriate share of
production overheads or net realizable value whichever is less. Raw
materials and Consumable stores and stock of traded goods, are valued
on first in first out (FIFO) basis. Glass Cut Pieces are valued at
average rate of raw material of respective thickness and quality.
1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to in significant risk of changes in value.
1.5 Cash flow statement
The Cash Flow Statement is prepared by the indirect method set out in
Accounting Standard (AS-3) on Cash Flow Statements and presents the
cash flows by operating, investing and financing activities of the
Company.
1.6 Depreciation and amortization
Depreciation has been provided on the straight-line method as per the
rates prescribed in Schedule XIV to the Companies Act, 1956.
Depreciation on additions and deletions to Fixed Assets is provided on
pro-rata basis for the number of days the asset has been put to use.
1.7 Revenue recognition
Sales are recognized, net of returns and trade discounts, on transfer
of significant risks and rewards of ownership to the buyer, which
generally coincides with the delivery of goods to customers. Sales are
net off Excise Duty, Sales tax and value added tax. Export Sales are
accounted by converting the Foreign Currency amount at the rate of
exchange fixed by the Customs Authority. On realization of export
proceeds, the difference between the amount realized and the amount
booked is charged off / back to Statement of Profit and Loss as Loss /
Gain due to exchange rate difference.
1.8 Other income
Interest income is accounted on the basis of proportionate period of
investment, considering the amount of investment and the rate of
interest. Dividend income is accounted when the right to receive it is
established.
1.9 Tangible fixed assets
The Fixed assets are stated at cost, inclusive of inward freight,
duties and taxes (Net off input credits claimed), installation and
commissioning expenses, incidental expenses incurred for the assets to
be gainfully put to use, less accumulated depreciation. Where the
assets are installed and commissioned, but fail to deliver the required
results to the satisfaction of the Company's management, the same are
not capitalized and are carried forward to the next year as Capital
WIP. Revenue expenses incurred in connection with project impel-
mutation in so far as such expenses relate to the period prior to the
commencement of commercial activity are treated as pre operative
expenses to be charged off after the commencement of commercial
activity. The Company revalued its Land and Buildings as on 31st
March, 2011. The revalued assets are carried at the revalued amounts
less accumulated depreciation and impairment losses, if any. Increase
in the net book value on such revaluation is credited to "Revaluation
reserve account" except to the extent such increase is related to and
not greater than a decrease arising from a revaluation / impairment
that was previously recognized in the Statement of Profit and Loss, in
which case such amount is credited to the Statement of Profit and Loss.
Decrease in book value on revaluation is charged to the Statement of
Profit and Loss except where such decrease relates to a previously
recognized increase that was credited to the Revaluation reserve, in
which case the decrease is charged to the Revaluation reserve to the
extent the re- serve has not been subsequently reversed / utilized.
Whenever a revalued asset is sold or disposed off, the balance
revaluation reserve pertaining to such asset is reversed and
transferred to General Reserve.
Fixed assets retired from active use and held for sale are stated at
the lower of their net book value and net realizable value and are
disclosed separately in the Balance Sheet.
Capital work-in-progress:
Projects under which assets are not ready for their intended use and
other capital work-in-progress are carried at cost, comprising direct
cost, related incidental and allocable expenses and attributable
interest.
1.10 Intangible assets
Intangible assets are carried at cost less accumulated amortization and
impairment losses, if any.
1.11 Foreign currency transactions and translations
Initial recognition
Transactions in foreign currencies entered into by the Company are
accounted at the exchange rates applied by the customs authorities to
the respective transactions. Measurement of foreign currency monetary
items at the Balance Sheet date
"Foreign currency monetary items (other than derivative contracts) of
the Company and its net investment in non-integral foreign operations
outstanding at the Balance Sheet date are restated at the year end at
the exchange rates prevailing on that date. Revenue and expenses are
translated at the exchange rates prevailing during the year. Exchange
differences arising out of these translations are charged to the
Statement of Profit and Loss."
Treatment of exchange differences
Exchange differences arising on settlement / restatement of foreign
currency monetary assets and liabilities of the Company are
recognized as income or expense in the Statement of Profit and Loss.
1.12 Government grants, subsidies and export incentives
Government grants and subsidies are recognized when there is reasonable
assurance that the Company will comply with the conditions attached to
them and the grants / subsidy will be received. Government grants whose
primary condition is that the Company should purchase, construct or
otherwise acquire capital assets are presented by deducting them from
the carrying value of the assets. The grant is recognized as income
over the life of a depreciable asset by way of a reduced depreciation
charge.
1.13 Investments
Long-term investments (excluding investment properties), are carried
individually at cost less provision for diminution, other than
temporary, in the value of such investments. Current investments are
carried individually, at the lower of cost and fair value. Cost of
investments include acquisition charges such as broker- age, fees and
duties.
1.14 Employee benefits
Employee benefits include provident fund, gratuity fund, compensated
absences and medical expense reimbursements.
Defined contribution plans
The Company's contribution to Provident Fund and Gratuity Fund are
considered as defined contribution plans and are charged as an expense
as they fall due based on the amount of contribution required to be
made.
Defend benefit plans
For defined benefit plans in the form of Gratuity and Compensated
Absences, the cost of providing benefits is determined on the actuarial
valuation basis. The actuarial valuations being carried out at each
Balance Sheet date, Actuarial gains and losses are recognized in the
Statement of Profit and Loss in the period in which they occur. Past
service cost is recognized to the extent that the benefits are already
vested and otherwise is amortized on a straight-line basis over the
average period until the benefits become vested. The retirement benefit
obligation recognized in the Balance Sheet represents the present value
of the defined benefit obligation as adjusted for unrecognized past
service cost, as reduced by the fair value of scheme assets. Any asset
resulting from this calculation is limited to past service cost, plus
the present value of available refunds and reductions in future
contributions to the schemes. Short-term employee benefits The
undiscounted amount of short-term employee benefits expected to be paid
in exchange for the services rendered by employees are recognized
during the year when the employees render the service. These benefits
include performance incentive and compensated absences which are
expected to occur within twelve months after the end of the period in
which the employ- ee renders the related service. The cost of such
compensated absences is accounted as under :
(a) in case of accumulated compensated absences, when employees render
the services that increase their entitlement of future compensated
absences; and
(b) in case of non-accumulating compensated absences, when the absences
occur. Long-term employee benefits
Compensated absences which are not expected to occur within twelve
months after the end of the period in which the employee renders the
related service are recognized as a liability at the present value of
the defined benefit obligation as at the Balance Sheet date less the fair
value of the plan assets out of which the obligations are expected to
be settled.
1.15 Borrowing costs
Borrowing costs include interest, amortization of ancillary costs
incurred and exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to the
interest cost. Costs in connection with the borrowing of funds to the
extent not directly related to the acquisition of qualifying assets are
charged to the Statement of Profit and Loss. Borrowing costs, allocated
to and utilized for qualifying assets, pertaining to the period from
commencement of activities relating to construction / development of
the qualifying asset up to the date of capitalization of such asset is
added to the cost of the assets. Capitalization of borrowing costs is
suspended and charged to the Statement of Profit and Loss during
extended periods when active development activity on the qualifying
assets is interrupted.
1.16 Segment reporting
The Company identifies primary segments based on the dominant source,
nature of risks and returns and the internal organization and
management structure. The operating segments are the segments for which
separate financial information is available and for which operating
profit/loss amounts are evaluated regularly by the executive Management
in deciding how to allocate resources and in assessing performance.
The accounting policies adopted for segment reporting are in line with
the accounting policies of the Company. Segment revenue, segment
expenses, segment assets and segment liabilities have been identified to
segments on the basis of their relationship to the operating activities
of the segment.
Revenue, expenses, assets and liabilities which relate to the Company
as a whole and are not allocable to segments on reasonable basis have
been included under "unallocated revenue / expenses / assets /
liabilities
1.17 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year. Diluted earnings per share is computed by dividing the profit
/ (loss) after tax (including the post tax effect of extraordinary
items, if any) as adjusted for dividend, interest and other charges to
expense or income relating to the dilutive potential equity shares, by
the weighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of equity
shares which could have been issued on the conversion of all dilutive
potential equity shares. Potential equity shares are deemed to be
dilutive only if their conversion to equity shares would decrease the
net proft per share from continuing ordinary operations. Potential
dilutive equity shares are deemed to be converted as at the beginning
of the period, unless they have been issued at a later date.
Dilutive potential equity shares are determined independently for each
period presented. The number of equity shares and potentially dilutive
equity shares are adjusted for share splits / reverse share splits and
bonus shares, as appropriate.
1.18 Taxes on income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly, MAT
is recognized as an asset in the Balance Sheet when it is probable that
future economic benefit associated with it will flow to the Company
Deferred tax is recognized on timing differences, being the differences
between the taxable income and the ac- counting income that originate
in one period and are capable of reversal in one or more subsequent
periods. Deferred tax is measured using the tax rates and the tax laws
enacted or substantially enacted as at the reporting date. Deferred
tax liabilities are recognized for all timing differences. Deferred tax
assets in respect of un- absorbed depreciation and carry forward of
losses are recognized only if there is virtual certainty that there
will be sufficient future taxable income available to 'realize such
assets. Deferred tax assets are recognized for timing differences of
other items only to the extent that reasonable certainty exists that
sufficient future taxable income will be available against which these
can be realized. Deferred tax assets and liabilities are offset if such
items relate to taxes on income levied by the same governing tax laws
and the Company has a legally enforceable right for such set off.
Deferred tax assets are reviewed at each Balance Sheet date for their
reliability. "
1.19 Joint venture operations
The accounts of the Company reflect its share of the Assets,
Liabilities, Income and Expenditure of the Joint Venture Operations
which are accounted on the basis of the audited accounts of the Joint
Ventures on line- by-line basis with similar items in the Company's
accounts to the extent of the participating interest of the Company as
per the Joint Venture Agreements, wherever applicable.
1.20 Impairment of assets
The carrying values of assets / cash generating units at each Balance
Sheet date are reviewed for impairment. If any indication of
impairment exists, the recoverable amount of such assets is estimated
and impairment is recognized, if the carrying amount of these assets
exceeds their recoverable amount. The recoverable amount is the greater
of the net selling price and their value in use. Value in use is
arrived at by discounting the future cash flows to their present value
based on an appropriate discount factor. When there is indication that
an impairment loss recognized for an asset in earlier accounting
periods no longer exists or may have decreased, such reversal of
impairment loss is recognized in the Statement of Profit and Loss,
except in case of revalued assets.
1.21 Provisions and contingencies
A provision is recognized when the Company has a present obligation as
a result of past events and it is probable that an outflow of
resources will be required to settle the obligation in respect of which
a reliable estimate can be made. Provisions (excluding retirement
benefits) are not discounted to their present value and are deter- mined
based on the best estimate required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and
adjusted to reject the current best estimates. Contingent liabilities
are disclosed in the Notes. Contingent Assets are neither
recognized nor disclosed in the financial statements.
Mar 31, 2011
(a) Basis of Preparation of Financial Statements:
- The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles ("GAAP"), the mandatory
Accounting Standards issued by the Institute of Chartered Accountants
of India and prescribed by the Companies (Accounting Standards) Rules,
2006, the provisions of the Companies Act, 1956 and the guidelines
prescribed by the Securities and Exchange Board of India (SEBI). The
Company has been consistent in its accounting policies. Change in the
accounting policies, however is disclosed separately.
The management, while preparing the financial statements, has made
certain assumptions and estimates affecting the balances in assets,
liabilities, income and expenses, during the period under report; e.g.
Capitalization of Float Glass Plant at Jhagadia, Bharuch, provision for
contingencies, future obligations under retirement benefit. These
estimates and assumptions are subject to variation at different periods
and are thus adjusted accordingly in the financial statements of
respective reporting periods.
(b) Valuation of Inventory:
- Finished Goods are valued at lower of cost plus appropriate share of
production overheads or net realisable value which ever is less. Raw
Materials & Consumable Stores and Stock of Traded Goods are valued on
First In First Out (FIFO) basis. Glass cut pieces are valued at
average rate of raw material of respective thickness and quality. Glass
cullet is valued at average of cost of production of cullet generated
and average purchase price of cullet purchased and lying in stock.
(c) Cash Flow Statement:
- The Cash Flow Statement is prepared by the indirect method set out in
Accounting Standard (AS-3) on Cash Flow Statements and presents the
cash flows by operating, investing and financing activities of the
company.
- Cash and Cash Equivalents presented in the Cash Flow Statement
comprise of cash on hand and balances in current accounts with bank.
(d) Fixed Assets:
- The Fixed Assets are stated at cost, inclusive of inward freight,
duties and taxes (Net off Set offs claimed), installation and
commissioning expenses, incidental expenses incurred for the assets to
be gainfully put to use, less accumulated depreciation. Where the
assets are installed and commissioned, but fail to deliver the required
results to the satisfaction of the company's management, the same are
not capitalized and are carried forward to the next year as Capital
WIP. Revenue expenses incurred in connection with project
implementation in so far as such expenses relate to the period prior to
the commencement of commercial activity are treated as pre operative
expenses to be charged off after the commencement of commercial
activity. Intangible assets are recorded at the consideration paid for
acquisition.
(e) Depreciation on Fixed Assets:
- Depreciation is provided on straight line basis at the rates
specified in Schedule XIV to the Companies Act, 1956. Depreciation on
additions to Fixed Assets is provided on pro-rata basis for the number
of days the asset has been put to use.
(f) Revenue Recognition:
a. Income and Expenditure are generally accounted on accrual basis as
they are earned or incurred except in cases of uncertainties, as
envisaged by the management. Sales are recognized when goods are
removed from the Company's premises and are accounted, net off excise
duty, sales tax, VAT, sales returns and trade discounts/credits.
b. As regards free samples, the goods dispatched from the Plant to the
Marketing Division of the company are deemed to have been fully
distributed free of cost to prospective customers of the company.
c. Export Sales are accounted by converting the Foreign Currency
amount at the rate of exchange fixed by the Customs Authority. On
realisation of export proceeds, the difference between the amount
realised and the amount booked is charged off / back to Profit & Loss
Account as loss /gain due to exchange rate difference.
d. Interest income is accounted on the basis of proportionate period
of investment, considering the amount of investment and the rate of
interest.
e. Dividend income on investments is accounted, as and when the same
has accrued and become due to the company.
(g) Foreign Currency Transactions:
- Exchange differences are recorded on initial recognition in the
reporting currency, using the exchange rate at the date of the
transaction. At each balance sheet date, foreign currency monetary
items are reported using the closing rate.
- Exchange differences that arise on settlement of monetary items and /
or on reporting of the same at each balance sheet date, as per the
closing rate, are written off / back to Profit and Loss Account.
- Any premium or discount arising at the inception of the forward
exchange contract is recognized as income or expense over the life of
the contract.
(h) Investments :
Investments are stated at cost. Temporary diminution in value of
investments is not provided for.
(i) Employee Benefits:
a. Short Term Benefits:
All employee benefits payable wholly within twelve months of rendering
the service are classified as a short term employee benefits. Benefits
such as salaries, wages, contractual labour charges and short term
compensated absences etc. are recognised in the period in which the
employee/contractual labour renders the related service. Any other
payments under relevant labour statutes, wherever applicable, are
reimbursed to the outsourced agencies and charged off to the Profit &
Loss Account in the year of payment.
b. Post Retirement benefits:
Provident Fund
The contribution to Employee Provident Fund is charged off to Profit &
Loss account on accrual basis.
Gratuity
The Company has opted for Group Gratuity Scheme of LIC of India for its
staff members. The
Renewal premium is calculated as of 1st April of the year. The same is
debited to Profit & Loss Account as and when accrued. During the year
under review the company has provided gratuity liability as per the
actuarial valuation of gratuity as per AS 15 (Revised).
Leave Encashment
During the year under review the company has provided for Leave
Encashment as per the actuarial valuation of leave encashment as per AS
15 (Revised).
(j) Borrowing Costs:
- Borrowing costs that are attributable to the acquisition or
construction of an asset are capitalised as part of cost of such asset
till such time the asset is ready for its intended commercial use.
- Other borrowing costs are charged off to Revenue Account in the year
in which they are incurred.
(k) Earnings Per Share:
Basic and Diluted earnings per share is computed by dividing the net
profit attributable to equity shareholders for the year, by weighted
average number of equity shares outstanding during the year as required
by AS 20 Ã Earnings per Share.
(l) Investment in Joint Venture:
The company has entered into a Joint Venture Agreement with CGI
International, an internationally successful Company, manufacturing
Fire Resistant Glass. For this purpose, Sezal Firebaan Glass Private
Limited, was incorporated under the Companies Act, 1956. At present,
the Company holds 25,000 Equity Shares of the face Value of Rs.10/-
each in Sezal Firebaan Glass Private Limited i.e. 50% of the present
paid up capital of Sezal Firebaan Glass Private Limited.
(m) Taxes on Income :
- Current Tax is determined as the amount of tax payable in respect of
taxable income for the period.
- Deferred tax is recognised, subject to the consideration of prudence,
on timing differences, being the difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods.
(n) Provisions, Contingent Liabilities and Contingent Assets:
Provisions involving substantial degree of estimation in measurement
are recognised if 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. Contingent assets are neither recognised nor disclosed in the
financial statements.
(o) Impairment of Assets:
The carrying values of cash generating assets at each balance sheet
date are assessed for impairment of respective assets. If the
assessment indicates impairment, then the impairment loss i.e. excess
of carrying value of assets over its recoverable amount, is provided in
the books of account. In case impairment loss provided in prior
accounting periods is likely to be reversed, fully or partially, due to
reassessment of recoverable value of impaired assets, the same is
reversed and recognised in Profit & Loss Account as income.
Mar 31, 2010
(a) Basis of preparation of Financial Statements:
- The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles ("GAAP"), the mandatory
Accounting Standards issued by the Institute of Chartered Accountants
of India and prescribed by the Companies (Accounting Standards) Rules,
2006, the provisions of the Companies Act, 1956 and the guidelines
prescribed by the Securities and Exchange Board of India (SEBI). The
Company has been consistent in its accounting policies. Change in the
accounting policies, however is disclosed separately.
The management, while preparing the financial statements, has made
certain assumptions and estimates affecting the balances in assets,
liabilities, income and expenses, during the period under report; e.g.
Capitalization of Warehouse at Float Glass Plant at Jhagadia, Bharuch,
Provision for Contingencies, future obligations under Retirement
Benefit. These estimates and assumptions are subject to variation at
different periods and are thus adjusted accordingly in the financial
statements of respective reporting periods.
(b) Valuation of Inventory :
- Finished Goods are valued at lower of cost or net realisable value.
Raw materials & Consumable Stores, are valued on first in first out
(FIFO) basis. Glass Cut Pieces are valued at average rate of raw
material of respective thickness and quality.
(c) Cash Flow Statement :
- The Cash Flow Statement is prepared by the indirect method set out in
Accounting Standard (AS-3) on Cash Flow Statements and presents the
cash flows by operating, investing and financing activities of the
Company.
- Cash and cash equivalents presented in the Cash Flow Statement
consist of Cash on Hand and balances in Current Accounts with Bank.
(d) Fixed Assets :
- The Fixed Assets are stated at cost, inclusive of inward freight,
duties and taxes (Net off set offs claimed), installation and
commissioning expenses, incidental expenses incurred for the assets to
be gainfully put to use, less accumulated depreciation. Where the
assets are installed and commissioned, if it fails to deliver the
required results to the satisfaction of the CompanyÃs Management, the
same are not capitalized and are carried forward to the next year as
Capital WIP. Revenue Expenses incurred in connection with project
implementation in so far as such expenses relate to the period prior to
the commencement of commercial activity are treated as pre operative
expenses to be charged off after the commencement of commercial
activity. Intangible assets are recorded at the consideration paid for
acquisition.
(e) Depreciation on Fixed Assets :
- Depreciation is provided on straight line basis at the rates
specified in schedule XIV to the Companies Act, 1956. Depreciation on
additions to Fixed Assets is provided on pro-rata basis for the number
of days the asset has been put to use.
(f) Revenue Recognition :
a. Income and Expenditure are generally accounted on accrual basis as
they are earned or incurred except in cases of uncertainties, as
envisaged by the Management. Sales are recognized when goods are
removed from the CompanyÃs premises and are accounted, net off Excise
Duty, Sales Tax, Vat, Sales Returns and Trade Discounts/ Credits.
b. As regards Free Samples, the goods dispatched from the Plant to the
Marketing Division of the Company are deemed to have been fully
distributed free of cost to intending customers of the Company.
c. Export Sales are accounted by converting the Foreign Currency
amount at the rate of exchange fixed by the Customs Authority. On
realization of export proceeds, the difference between the amount
realized and the amount booked is charged off/back to Profit & Loss
Account as loss /gain due to exchange rate difference.
d. Interest income is accounted on the basis of proportionate period
of Investment, considering the amount of Investment and the rate of
interest.
e. Dividend income on investments is accounted, as and when the same
has accrued and become due to the Company.
(g) Foreign Currency Transactions:
- Exchange differences are recorded on initial recognition in the
reporting currency, using the exchange rate at the date of the
transaction. At each Balance Sheet date, foreign currency monetary
items are reported using the closing rate.
- Exchange differences that arise on settlement of monetary items or on
reporting at each balance sheet date of the Companys monetary items at
the closing rate are adjusted in the cost of fixed assets specifically
financed by the borrowings to which the exchange differences relate.
- Any premium or discount arising at the inception of the forward
exchange contract is recognized as income or expense over the life of
the contract.
(h) Investments :
a. Investments are stated at cost. Temporary diminution in investments
is not provided for
(i) Employee benefits:
a. Short Term Employee Benefits:
All Employee benefits payable wholly within twelve months of rendering
the service are classified as a Short Term Employee Benefits. Benefits
such as salaries, wages, contractual labour charges and short term
compensated absences, etc is recognized in the period in which the
employee/contractual labour renders the related service. Any other
payments under relevant labour statutes, wherever applicable, are
reimbursed to the outsourced agencies and charged off to the Profit &
Loss Account in the year of payment.
b. Post Retirement Benefits: Provident Fund
The contribution to Employee Provident Fund is charged off to Profit &
Loss account on accrual basis
Gratuity
The Company has opted for Group Gratuity Scheme of LIC of India for its
staff membeRs. The Renewal premium is calculated as of 1st April of the
year. The same is debited to Profit & Loss account as and when accrued.
During the year under review the Company has provided Gratuity
liability as per the actuarial valuation of Gratuity as per AS 15
(Revised).
Leave Encashment :
During the year under review the Company has provided for Leave
Encashment as per the actuarial valuation of Leave Encashment as per AS
15 (Revised).
(j) Borrowing Costs:
- Borrowing costs that are attributable to the acquisition or
construction of an asset are capitalized as part of cost of such asset
till such time the asset is ready for its intended commercial use.
- Other Borrowing costs are charged off to Revenue account in the year
in which they are incurred.
(k) Earnings Per Share:
- Basic and Diluted Earnings Per Share is computed by dividing the net
profit attributable to Equity Shareholders for the year, by weighted
average number of Equity Shares outstanding during the year as required
by AS 20 Ã Earnings Per Share.
(l) Taxes on Income :
- Current Tax is determined as the amount of tax payable in respect of
taxable income for the period.
- Deferred tax is recognized, subject to the consideration of prudence,
on timing differences, being the difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods.
(m) Provisions, Contingent Liabilities and Contingent Assets:
- Provisions involving substantial degree of estimation in measurement
are recognized if 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. Contingent Assets are neither recognised nor disclosed in the
financial statements.