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Accounting Policies of Triveni Glass Ltd. Company

Mar 31, 2016

i) Contingent liabilities:

(a) The Company received Show-cause cum Demand Notices in routine way regarding non-admissibility of Modvat credit due to technical defects in documentation. Most of the defects are curable and are allowed at the first or second stage of hearing. As on 31.03.2016, such show-cause cum demand notices proposing to disallow modvat credit stood at Rs. 111.00 lacs (2014-15 Rs. 111.00 lacs).

(b) The Commissioner Central Excise reconfirmed demand of Rs 20.96 crores and imposed equal penalty thereon after adjudicating the case. He also imposed penalties on Directors and Senior Officers of the Company. We had filed appeal against the order along with the stay application for waiver or pre deposit before Central Excise Tribunal New Delhi who have allowed unconditional stay. The case has now been transferred to newly constituted bench of CESTAT at Allahabad.

(c) Sales Tax Department has created a demand of Rs. 107.21 lacs (2014-Rs.107.21 lacs) disputing the rate of tax on Tinted Glass and other sales tax matters, which the company has not admitted. However, the Hon’ble High Court of Allahabad has disallowed our appeals against higher rates of Tax on tinted glass and we have filed SLP against the same before Hon’ble supreme Court.

(d) Modvat credit on capital goods availed during installation of Float Glass plant to the extent of Rs. 7.26 Crores was disallowed by Jurisdictional Deputy Commissioner and equal penalty was imposed by wrongly treating Float Glass as a separate and independent unit while the fact is otherwise. Float Glass Plant is an expansion of the then factory and the department itself has endorsed Float Glass Plant in our Central Excise License (Registration Certificate) as expansion. Against, the order of the Commissioner (Appeals), we have filed appeal before CESTAT, New Delhi, which has completely waived pre-deposit of 100% of the required amount. Now the case will be heard and decided on merits in due course.

(e) There are three (3) EPCG licenses wherein in case of the main license for input of 2nd hand figured glass though the export obligations have been completed by us but some documents have not been filled with DGFT Kanpur. Hence a liability of Rs 117 lacs plus interest Rs 309 lacs as on 31st of March 2016 is disputed. In case of another license the duty amount due is Rs 79 lacs plus interest Rs 179 lacs total Rs 258 lacs. In case of third license which is for frosting machine the liability is about Rs 10 lacs. In case of advance licenses the duty amount due is Rs 107 lacs and another Rs 280 lacs is due on account of interest and penalty. As our case is before BIFR hence we have requested in our debt restructuring proposal for waiver of interest and penalty amount. In case of the advance licenses, once our balance exports made during the years 1995-2005 are accepted by DGFT Kanpur then these advance licenses obligations will also get fulfilled and there will not be any liability on this account and therefore the final liability is only on second and third EPCG licenses that is Rs 79 lacs which may arise.

(f) Recently the company has also filled appealed before Tribunal against order passed by appellate Commissioner Allahabad for Rs 788191/- and Rs 421831/- demanding duty on sound delivery charges against government supplies.

(g) Our request for remission on Duty of Finished goods has been rejected by the Assistant Commissioner, thus creating a demand of Rs 43237/- and equal penalty thereon. We have filed appeal against the said order.

(h) Being aggrieved with the order of Commissioner Appeals confirming demand of Rs 130372 and imposing equal penalty thereon for allegedly charging higher prices from depot as compared to expected prices. We have filed appeal before Central Excise Tribunal Delhi which has directed us to deposit the balance amount till the case is finally decided the amount has been adjusted against the input credit available with us.

(i) A penalty of Rs. 6767637 has been imposed by Central Excise department for utilizing CENVAT credit subsequently earned for payment of excise duty at Rajamundry. Appeal against the same is pending before CESTAT, Bangalore.

(j) The company has received notice for arrear payment of Rs. 198 lacs from Allahabad Sales Tax Department out of which Rs. 107 Lacs relates to the rate of tax on tinted glass which is sub judice and is pending before Hon’ble Supreme Court. Balance dues pertaining to various years are being checked and reconciled.


Mar 31, 2015

1. Fixed Assets:

(a) Fixed Assets are shown at historical cost except for certain land, building and Plant and Machinery, which are shown at revalued amount.

(b) In respect of projects involving construction, related pre-operation expenses upto commencement of production form part of the value of the assets capitalized

2. Depreciation:

(a) Depreciation is charged in the accounts under straight-line method at the rates specified in schedule XIV of the Companies Act, 1956.

(b) Depreciation on additions to/deductions from Fixed Assets during the year is charged on pro-rata basis from/upto the month in which the asset is available for use/disposal.

(c) Assets costing up to Rs. 5000/- are fully depreciated in the year of capitalization

3. Borrowing Cost

Borrowing cost attributable to the Fixed Assets during their construction are capitalized. Other borrowing costs are recognized as an expense in the period in which they are incurred.

4. Inventories:

(i) Raw material, fuel, packing materials and stores are valued at cost, on weighted average basis or market price whichever is lower.

(ii) Finished goods are valued at lower of cost or net realizable value.

5. Investment:

Investments are intended for long-term and are carried at cost. Provision is made for diminution, other than temporary, in the value of such investments.

6. Retirement Benefits:

Retirement benefits are dealt in the following manner:

(a) Provident fund is accounted on accrual basis with contributions made to recognized fund.

(b) Gratuity and superannuation liabilities are determined on the basis of actuarial valuations done at the end of the year and accordingly contributions are made to recognized fund set-up for the purpose.

(c) Leave encashment benefit on retirement is determined on the basis of actuarial valuation and such liability is provided in the accounts.

7. Foreign Exchange transactions:

(a) Foreign Currency transactions are initially recorded at the rates of exchange ruling on the date of transaction.

(b) Foreign Currency Loans/Deposits/Liabilities are reported with reference to the rates of exchange ruling at the year end and the difference resulting from such translations as well as due to payment/ discharge of liabilities in foreign currency related to fixed assets / capital work- in-progress is adjusted in their carrying cost and that related to current assets are recognized as revenue/expenditure during the year.

(c) Export Sales in Foreign Currency are accounted for at the exchange rate prevailing at the time of realization. Expenditure in Foreign Currency is accounted for at the Exchange Rate prevailing at the time of expenditure.

8. Income recognition

Sale of goods is recognized on dispatches to customers.

Interest is recognized on time proportion basis, dividend is recognized when right to receive payment is established.


Mar 31, 2014

1. Fixed Assets:

(a) Fixed Assets are shown at historical cost except for certain land, building and Plant and Machinery, which are shown at revalued amount.

(b) In respect of projects involving construction, related pre-operation expenses upto commencement of production form part of the value of the assets capitalized

2. Depreciation:

(a) Depreciation is charged in the accounts under straight-line method at the rates specified in schedule XIV of the Companies Act, 1956.

(b) Depreciation on additions to/deductions from Fixed Assets during the year is charged on pro- rata basis from/upto the month in which the asset is available for use/disposal.

(c) Assets costing up to Rs. 5000/- are fully depreciated in the year of capitalization

3. Borrowing Cost

Borrowing cost attributable to the Fixed Assets during their construction are capitalized. Other borrowing costs are recognized as an expense in the period in which they are incurred.

4. Inventories:

(i) Raw material, fuel, packing materials and stores are valued at cost, on weighted average basis or market price whichever is lower.

(ii) Finished goods are valued at lower of cost or net realizable value.

5. Investment:

Investments are intended for long-term and are carried at cost. Provision is made for diminution, other than temporary, in the value of such investments.

6. Retirement Benefits:

Retirement benefits are dealt in the following manner:

(a) Provident fund is accounted on accrual basis with contributions made to recognized fund.

(b) Gratuity and superannuation liabilities are determined on the basis of actuarial valuations done at the end of the year and accordingly contributions are made to recognized fund set-up for the purpose.

(c) Leave encashment benefit on retirement is determined on the basis of actuarial valuation and such liability is provided in the accounts.

7. Foreign Exchange transactions:

(a) Foreign Currency transactions are initially recorded at the rates of exchange ruling on the date of transaction.

(b) Foreign Currency Loans/Deposits/Liabilities are reported with reference to the rates of exchange ruling at the year end and the difference resulting from such translations as well as due to payment/ discharge of liabilities in foreign currency related to fixed assets / capital work- in-progress is adjusted in their carrying cost and that related to current assets are recognized as revenue/expenditure during the year.

(c) Export Sales in Foreign Currency are accounted for at the exchange rate prevailing at the time of realization. Expenditure in Foreign Currency is accounted for at the Exchange Rate prevailing at the time of expenditure. 8. Income recognition Sale of goods is recognized on dispatches to customers.

Interest is recognized on time proportion basis, dividend is recognized when right to receive payment is established.


Mar 31, 2013

1. Fixed Assets:

(a) Fixed Assets are shown at historical cost except for certain land, building and Plant and Machinery, which are shown at revalued amount.

(b) In respect of projects involving construction, related pre-operation expenses upto commencement of production form part of the value of the assets capitalized.

2. Depreciation:

(a) Depreciation is charged in the accounts under straight-line method at the rates specified in schedule XIV of the Companies Act, 1956.

(b) Depreciation on additions to/deductions from Fixed Assets during the year is charged on pro-rata basis from/upto the month in which the asset is available for use/disposal.

(c) Assets costing up to Rs. 5000/- are fully depreciated in the year of capitalization.

3. Borrowing Cost

Borrowing cost attributable to the Fixed Assets during their construction are capitalized. Other borrowing costs are recognized as an expense in the period in which they are incurred.

4. Inventories:

(i) Raw material, fuel, packing materials and stores are valued at cost, on weighted average

basis or market price whichever is lower. (ii) Finished goods are valued at lower of cost or net realizable value.

5. Investment:

Investments are irttenfded fortohg*term and are carried at cost. Provision is made for diminution, other Ifeiptfmporary, in the value of such inve^tr&eatS; oc,

6. Retirement Benefits: V1 Retirement benefits are dealt In the following manner:

(a) Provident fund isaccounted on accrual basis with contributions made to recqgnizedfund.

(b) Gratuity and superannuation liabilities are determined on tr^e basis of actuarial valuations done at the end of the, year and according^ contributions are made to recognized fund set- up for the purpose.

(c) Leave encashment feenefit on retirement is determined on the basis; of actuarial valuation and such liability is provided in the accounts.

7. Foreign Exchange transaiclidns:

(a) Foreign Currency transactions are initially recorded at the rates of exchange^rujing on the date of transaction.

(b) Foreign Currency Loans/Deposits/Liabilities are reported with reference to the rales of exchange ruling at the year end and the difference resulting from such translations £!s well as due to payment/ discharge of liabilities in foreign currency related to fixed assets / capital worK-ip-prpgress js adjusted; in their carrying cost and,that related to current assets are recognized as revenue/expenditure during the year.

(c) Export Sales in Foreign Currency are accounted for at the exchange rate prevailing at the timeOf reaHzatioh:: Expenditure in Foreign Currency is accounted for at the Exchange Rate prevailing at ttie timeof expenditure.

8. Income recognition

Sale of goods is recognized on dispatches to customers.

Interest is recognized on time proportion basis, dividend is recognized when right to "Y receivepaymint is established.


Mar 31, 2012

1. Fixed Assets:

(a) Fixed Assets are shown at historical cost except for certain land, building and Plant and Machinery, which are shown at revalued amount.

(b) In respect of projects involving construction, related pre-operation expenses upto commencement of production form part of the value of the assets capitalized.

2. Depreciation:

(a) Depreciation is charged in the accounts under straight-line method at the rates specified in schedule XIV of the Companies Act, 1956.

(b) Depreciation on additions to/deductions from Fixed Assets during the year is charged on pro-rata basis from/upto the month in which the asset is available for use/disposal.

(c) Assets costing up to Rs. 5000/- are fully depreciated in the year of capitalization.

3. Borrowing Cost

Borrowing cost attributable to the Fixed Assets during their construction are capitalized. Other borrowing costs are recognized as an expense in the period in which they are incurred.

4. Inventories:

(i) Raw material, fuel, packing materials and stores are valued at cost, on weighted average basis or market price whichever is lower. (ii) Finished goods are valued at lower of cost or net realizable value.

5. Investment:

Investments are intended for long-term and are carried at cost. Provision is made for diminution, other than temporary, in the value of such investments.

6. Retirement Benefits:

Retirement benefits are dealt in the following manner:

(a) Provident funds are accounted on accrual basis with contributions made to recognized fund.

(b) Gratuity and superannuation liabilities are determined on the basis of actuarial valuations done at the . end of the year and accordingly contributions are made to recognized fund set-up for the purpose.

(c) Leave encashment benefit on retirement is determined on the basis of actuarial valuation and such liability is provided in the accounts.

7. Foreign Exchange transactions:

(a) Foreign Currency transactions are initially recorded at the rates of exchange ruling at the date of transaction.

(b) Foreign Currency Loans/Deposits/Liabilities are reported with reference to the rates of exchange ruling at the year end and the difference resulting from such translations as well as due to payment/ discharge of liabilities in foreign currency related to fixed assets / capital work-in-progress is adjusted in their carrying cost and that related to current assets are recognized as revenue/expenditure during the year.

(c) Export Sales in Foreign Currency are accounted for at the exchange rate prevailing at the time of realization. Expenditure in Foreign Currency is accounted for at the Exchange Rate prevailing at the time of expenditure.

8. Income recognition

Sale of goods is recognized on dispatches to customers.

Interest is recognized on time proportion basis, dividend is recognized when right to receive payment is established.


Mar 31, 2010

1. Fixed Assets :

(a) Fixed Assets are shown at historical cost except for certain land, building and Plant and Machinery, which are shown at revalued amount.

(b) In respect of projects involving construction, related pre-operation expenses upto commencement of production form part of the value of the assets capitalized.

2. Depreciation :

(a) Depreciation is charged in the accounts under straight-line method at the rates specified in schedule XIV of the Companies Act 1956.

(b) Depreciation on additions to/deductions from Fixed Assets during the year is charged on pro-rata" basis from/upto the month in which the asset is available for use/disposal.

(c) Assets costing upto Rs. 5000/- are fully depreciated in the year of capitalization.

3. Borrowing Cost

Borrowing cost attributable to the Fixed Assets during their construction are capitalized. Other borrowing costs are recognized as an expense in the period in which they are incurred.

4. Inventories :

(i) Raw material, fuel, packing materials and stores are valued at cost, on weighted average basis or market price whichever is lower.

(ii) Finished goods are valued at lower of cost or net realizable value.

5. Investment:

Investments are intended for long-term and are carried at cost. Provision is made for diminution, other than temporary, in the value of such investments.

6. Retirement benefits:

Retirement benefits are dealt in the following manner:

(a) Provident funds are accounted on accrual basis with contributions made to recognized fund.

(b) Gratuity and superannuation liabilities are determined on the basis of actuarial valuations done at the end of the year and accordingly contributions are made to recognized fund set-up for"the purpose.

(c) Leave encashment benefit on retirement is determined on the basis of actuarial valuation and such liability is provided in the accounts.

7. Foreign Exchange transactions :

(a) Foreign Curency transactions are initially recorded at the rates of exchange ruling at the date of transaction.

(b) foreign Currency Loans/Deposits/Liabilities are reported with reference to the rates of exchange ruling at the year end and the difference resulting from such translations as well as due to payment/ discharge of liabilities in foreign currency related to fixed assets / capital work-in-progress is adjusted in their carrying cost and that related to current assets are recognized as revenue/expenditure during the year.

(c) Export Sales in Foreign Currency are accounted for at the exchange rate prevailing at the time of realization. Expenditure in Foreign Currency is accounted for at the Exchange Rate prevailing at the time of expenditure.

8. Income recognition

Sale of goods is recognized on dispatches to customers.

Interest is recognized on time proportion basis, dividend is recognized when right to receive payment is established.

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