Accounting Policies of Excel Glasses Ltd. Company

Mar 31, 2015

1.1 ACCOUNTING SYSTEM/ REVENUE RECOGNITION:

a) Financial statements are prepared as a going concern on accrual basis under Historical cost convention and in accordance with the generally accepted accounting principles.

b) All expenses and income to the extent ascertainable with reasonable certainly are accounted for on accrual basis.

c) Interest on overdue debts/insurance and other claims to the extent considered recoverable are accounted in the year of claims. However, claims whose recovery cannot be ascertained with reasonable certainty are accounted on acceptance/receipt basis.

d) The presentation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affects the reported amounts of assets and liabilities, and the disclosures of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

e) Sales exclude trade discounts, rejections and breakages.

1.2 FIXED ASSETS:

Fixed Assets are stated at cost less depreciation. All major modifications/additions including expenses, interest during construction period to fixed assets, which result in increasing the operational efficiency of the assets, are capitalized.

A fixed asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit & Loss Account in the year in which an asset is identified as impaired. If at the balance sheet date there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

Expenditure during construction period is included under Capital Work In Progress and the same is allocated to the respective Fixed Asset on the completion of its construction.

1.3 DEPRECIATION:

(a) Depreciation on Building, Plant & Machinery including furnace, electrical installation and water system during the period is provided on Straight Line Method (SLM) at the rates specified in Schedule XIV of the Companies Act, 1956 from the date of assets put to commercial use.

(b) Depreciation on other assets is provided on Written Down Value Method (WDV) at the rates specified in Schedule XIV of the Companies Act, 1956.

(c) Each Individual Fixed Assets costing below Rs.5000 are fully depreciated in the year of acquisition.

(d) No depreciation has been provided in the current year, this is mainly because the company has been under a lock-out and no assets are operational hence no measure can be used to calculate the amount of depreciation on the assets and their residual life.

1.4 INVENTORIES:

Raw materials, packing materials and fuel are valued at cost determined on weighted average basis. Stores and spare parts are valued at cost. Loose tools and Moulds are valued at residual value. Finished goods are valued at lower of cost or market value. Stock-in-process i.e. molten glass is valued at cost.

1.5 INVESTMENTS:

All investments are of long term nature and are valued at cost.

1.6 RETIREMENT BENEFITS:

i. Provident Fund and Pension Fund: Contribution to Provident Fund and Pension Fund as per the requirements of the applicable laws are charged to revenue in the period they are incurred.

ii. Gratuity: Gratuity payable to Employees is accounted on accrual basis.

iii. Leave Encashment: Leave Encashment is accounted for on cash basis.

1.7 FOREIGN CURRENCYTRANSACTIONS:

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Current Assets and Current Liabilities are reinstated at period-end exchange rates and the profit/loss so determined and the realized exchange gains and losses are recognized in the profit and loss account.

1.8 BORROWING COSTS:

Interest and other cost in connection with the borrowing of the funds to the extent related / attributed to the acquisition / construction of qualifying fixed assets are capitalized up to the date when such assets are ready for its intended use and other borrowing costs are charged to revenue.

1.9 LEASE/HIREPURCHASETRANSACTIONS:

The actual cost of the assets acquired under the hire purchase transactions is capitalized while the annual finance charges are charged to revenue accounts. In respect of assets taken on lease, the value thereof is not capitalized but contracted lease rental are charged to revenue accounts on accrual basis.

1.10 TAXATION:

Provision for current tax is determined in accordance with the Income Tax Act, 1961. The Deferred Tax for timing differences between the book and tax profits for the period is accounted for, using the tax rates and laws that have been substantively enacted as of the Balance Sheet date.

Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future. Deferred tax assets are reviewed at each balance sheet date and written down or written up to reflect the amount that is reasonable / virtual certain as the case may be to be realized.

1.11 EARNING PER SHARE (EPS):

Earnings per share are computed by dividing profit after tax with the number of shares outstanding at the year end.

1.12 PROVISION AND CONTINGENT LIABILITIES:

A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation. Contingent liabilities, unless the possibility of the outflow of resources embodying economic benefits is remote, are disclosed separately in Notes to Accounts and / or provided for depending upon the management's perception as to whether the said liability is likely to materialize or not. Contingent assets are not recognized or disclosed in the financial statements.

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Mar 31, 2014

1.1 ACCOUNTING SYSTEM / REVENUE RECOGNITION:

a) Financial statements are prepared as a going concern on accrual basis under Historical cost convention and in accordance with the generally accepted accounting principles.

b) All expenses and income to the extent ascertainable with reasonable certainly are accounted for on accrual basis.

c) Interest on overdue debts/insurance and other claims to the extent considered recoverable are accounted in the year of claims. However, claims whose recovery cannot be ascertained with reasonable certainty are accounted on acceptance/receipt basis.

d) The presentation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affects the reported amounts of assets and liabilities, and the disclosures of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

e) Sales exclude trade discounts, rejections and breakages.

1.2 FIXED ASSETS:

Fixed Assets are stated at cost less depreciation. All major modifications/additions including expenses, interest during construction period to fixed assets, which result in increasing the operational efficiency of the assets, are capitalized.

A fixed asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit & Loss Account in the year in which an asset is identified as impaired. If at the balance sheet date there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

Expenditure during construction period is included under Capital Work In Progress and the same is allocated to the respective Fixed Asset on the completion of its construction.

1.3 DEPRECIATION:

(a) Depreciation on Building, Plant & Machinery including furnace, electrical installation and water system during the period is provided on Straight Line Method (SLM) at the rates specified in Schedule XIV of the Companies Act, 1956 from the date of assets put to commercial use.

(b) Depreciation on other assets is provided on Written Down Value Method (WDV) at the rates specified in Schedule XIV of the Companies Act, 1956.

(c) Each Individual Fixed Assets costing below Rs.5000 are fully depreciated in the year of acquisition.

1.4 INVENTORIES:

Raw materials, packing materials and fuel are valued at cost determined on weighted average basis. Stores and spare parts are valued at cost. Loose tools and Moulds are valued at residual value. Finished goods are valued at lower of cost or market value. Stock-in-process i.e. molten glass is valued at cost.

1.5 INVESTMENTS:

All investments are of long term nature and are valued at cost.

1.6 RETIREMENT BENEFITS:

I. Provident Fund and Pension Fund: Contribution to Provident Fund and Pension Fund as per the requirements of the applicable laws are charged to revenue in the period they are incurred.

II. Gratuity: Gratuity payable to Employees is accounted on accrual basis.

III. Leave Encashment: Leave Encashment is accounted for on cash basis.

1.7 FOREIGN CURRENCY TRANSACTIONS:

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Current Assets and Current Liabilities are reinstated at period-end exchange rates and the profit/loss so determined and the realized exchange gains and losses are recognized in the profit and loss account.

1.8 BORROWING COSTS:

Interest and other cost in connection with the borrowing of the funds to the extent related / attributed to the acquisition / construction of qualifying fixed assets are capitalized up to the date when such assets are ready for its intended use and other borrowing costs are charged to revenue.

1.9 LEASE/HIRE PURCHASE TRANSACTIONS:

The actual cost of the assets acquired under the hire purchase transactions is capitalized while the annual finance charges are charged to revenue accounts. In respect of assets taken on lease, the value thereof Is not capitalized but contracted lease rental are charged to revenue accounts on accrual basis.

1.10 TAXATION:

Provision for current tax are determined in accordance with the Income Tax Act, 1961. The Deferred Tax for timing differences between the book and tax profits for the period is accounted for, using the tax rates and laws that have been substantively enacted as of the Balance Sheet date.

Deferred tax assets are recognsied only to the extent there is reasonable certainty that the assets can be realised in future. Deferred tax assets are reviewed at each balance sheet date and written down or written up to reflect the amount that is reasonable / virtual certain as the case may be to be realised.

1.11 EARNNG PER SHARE (EPS):

Earning per share is computed by dividing profit after tax with the number of shares outstanding at the year end.

1.12 PROVISION AND CONTINGENT LIABILITIES:

A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation. Contingent liabilities, unless the possibility of the outflow of resources embodying economic benefits is remote, are disclosed separately in Notes to Accounts and / or provided for depending upon the management''s perception as to whether the said liability is likely to materialize or not. Contingent assets are not recognized or disclosed in the financial statements.

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Sep 30, 2012

1.1 ACCOUNTING SYSTEM / REVENUE RECOGNITION:

a) Financial statements are prepared as a going concern on accrual basis under Historical cost convention and in accordance with the generally accepted accounting principles.

b) All expenses and income to the extent ascertainable with reasonable certainly are accounted for on accrual basis.

c) Interest on overdue debts/insurance and other claims to the extent considered recoverable are accounted in the year of claims. However, claims whose recovery cannot be ascertained with reasonable certainty are accounted on acceptance/receipt basis.

d) The presentation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affects the reported amounts of assets and liabilities, and the disclosures of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

e) Sales exclude trade discounts, rejections and breakages.

1.2 FIXED ASSETS:

Fixed Assets are stated at cost less depreciation. All major modifications/additions including expenses, interest during construction period to fixed assets, which result in increasing the operational efficiency of the assets, are capitalized.

A fixed asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit & Loss Account in the year in which an asset is identified as impaired. If at the balance sheet date there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

Expenditure during construction period is included under Capital Work In Progress and the same is allocated to the respective Fixed Asset on the completion of its construction.

1.3 DEPRECIATION:

(a) Depreciation on Building, Plant & Machinery including furnace, electrical installation and water system during the period is provided on Straight Line Method (SLM) at the rates specified in Schedule XIV of the Companies Act, 1956 from the date of assets put to commercial use.

(b) Depreciation on other assets is provided on Written Down

Value Method (WDV) at the rates specified in Schedule XIV of the Companies Act, 1956.

(c) Each Individual Fixed Assets costing below Rs.5000 are fully depreciated in the year of acquisition.

1.4 INVENTORIES:

Raw materials, packing materials and fuel are valued at cost determined on weighted average basis. Stores and spare parts are valued at cost. Loose tools and Moulds are valued at residual value. Finished goods are valued at lower of cost or market value. Stock-in-process i.e. molten glass is valued at cost.

1.5 INVESTMENTS:

All investments are of long term nature and are valued at cost.

1.6 RETIREMENT BENEFITS:

I. Provident Fund and Pension Fund: Contribution to Provident Fund and Pension Fund as per the requirements of the applicable laws are charged to revenue in the period they are incurred.

ii. Gratuity: Gratuity payable to Employees is accounted on accrual basis.

iii. Leave Encashment: Leave Encashment is accounted for on cash basis.

1.7 FOREIGN CURRENCYTRANSACTiONS:

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Current Assets and Current Liabilities are reinstated at period-end exchange rates and the profit/loss so determined and the realized exchange gains and losses are recognized in the profit and loss account.

1.8 BORROWING COSTS:

Interest and other cost in connection with the borrowing of the funds to the extent related / attributed to the acquisition / construction of qualifying fixed assets are capitalized up to the date when such assets are ready for its intended use and other borrowing costs are charged to revenue.

1.9 LEASE /HIRE PURCHASETRANSACTIONS:

The actual cost of the assets acquired under the hire purchase transactions is capitalized while the annual finance charges are charged to revenue accounts. In respect of assets taken on lease, the value thereof is not capitalized but contracted lease rental are charged to revenue accounts on accrual basis.

1.10 TAXATION:

Provision for current tax are determined in accordance with the Income Tax Act, 1961. The Deferred Tax for timing differences between the book and tax profits for the period is accounted for, using the tax rates and laws that have been substantively enacted as of the Balance Sheet date.

Deferred tax assets are recognsied only to the extent there is reasonable certainty that the assets can be realised in future. Deferred tax assets are reviewed at each balance sheet date and written down or written up to reflect the amount that is reasonable / virtual certain as the case may be to be realised.

1.11 EARNING PER SHARE (EPS):

Earning per share is computed by dividing profit after tax with the number of shares outstanding at the year end.

1.12 PROVISION AND CONTINGENT LIABILITIES:

A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation. Contingent liabilities, unless the possibility of the outflow of resources embodying economic benefits is remote, are disclosed separately in Notes to Accounts and / or provided for depending upon the management''s perception as to whether the said liability is likely to materialize or not. Contingent assets are not recognized or disclosed in the financial statements.

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Sep 30, 2010

1. ACCOUNTING SYSTEM / REVENUE RECOGNITION:

a) Financial statements are prepared as a going concern on accrual basis under Historical cost convention and in accordance with the generally accepted accounting principles.

b) All expenses and income to the extent ascertainable with reasonable certainly are accounted for on accrual basis.

c) Interest on overdue debts/insurance and other claims to the extent considered recoverable are accounted in the year of claims. However, claims whose recovery cannot be ascertained with reasonable certainty are accounted on acceptance/ receipt basis.

d) The presentation of financial statements in conformity with generally accepted accounting principles (GAAP) requires man- agement to make estimates and assumptions that affects the reported amounts of assets and liabilities, and the disclosures of contingent liabilities on the date of the financial statements. Actual results could differ-from those estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

e) Gross Sales include excise duty and sales tax; exclude trade discounts, rejections and breakages.

2. FIXED ASSETS:

Fixed Assets are stated at cost less depreciation. All major modifications/additions to fixed assets, which result in increasing the operational efficiency of the assets, are capitalized.

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

3. EXPENDITURE DURING CONSTRUCTION PERIOD:

Expenditure during construction period is included under Capital Work In Progress and the same is allocated to the respective Fixed Asset on the completion of its construction.

4. DEPRECIATION:



(a) Depreciation on Building, Plant & Machinery including furnace, electrical installation and water system in use during the period is provided on Straight Line Method (SLM) at the rates specified in Schedule XIV of the Companies Act, 1956.

(b) Depreciation on other assets is provided on Written Down Value Method (WDV) at the rates specified in Schedule XIV of the Companies Act, 1956.

(c) Fixed Assets costing below Rs.5000 are fully depreciated in the year of acquisition.

5. INVENTORIES:

Raw materials, packing materials and fuel are valued at cost determined on weighted average basis. Stores and spare parts are valued at cost. Loose tools and Moulds are valued at residual value. Finished goods are valued at lower of cost or market value. Stock-in-process i.e. molten glass is valued at cost.

6. INVESTMENTS:

All investments are of long term nature and are valued at cost.

7. RETIREMENT BENEFITS:

i. Provident Fund and Pension Fund: Contribution to Provident Fund and Pension Fund as per the requirements of the applicable laws are charged to revenue in the year they are incurred.

ii. Gratuity: Gratuity payable to Employees is accounted on accrual basis.

iii. Leave Encashment: Leave Encashment is accounted for on cash basis.

8. FOREIGN CURRENCY TRANSACTIONS:

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Current Assets and Current Liabilities are reinstated at period-end exchange rates and the profit/loss so determined and the realized exchange gains and losses are recognized in the profit and loss account.

9. BORROWING COSTS:

Interest and other cost in connection with the borrowing of the funds to the extent related / attributed to the acquisition / construction of qualifying fixed assets are capitalized up to the date when such assets are ready for its intended use and other borrowing costs are charged to revenue.

10. LEASE / HIRE PURCHASE TRANSACTIONS:

The actual cost of the assets acquired under the hire purchase transactions is capitalized while the annual finance charges are charged to-revenue accounts. In respect of assets taken on lease, the value thereof is not capitalized but contracted lease rental are charged to revenue accounts on accrual basis.

11. TAXATION:

Provision for current tax and fringe benefit tax are determined in accordance with the Income Tax Act, 1961. The Deferred Tax for timing differences between the book and tax profits for the period is accounted for, using the tax rates and laws that have been substantively enacted as of the Balance Sheet date.

Deferred tax assets are recognsied only to the extent there is reasonable certainty that the assets can be realised in future, however, where there is unabsorbed depreciation or carry forward loss under taxation laws, deferred tax assets only if there is virtual / reasonable certainty of realisation of such assets. Deferred tax assets are reviewed at each balance sheet date and written down or written up to reflect the amount that is reasonable / virtual certain as the case may be to be realised.

12. PROVISION AND CONTINGENT LIABILITIES:

A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation. Contingent liabilities, unless the possibility of the outflow of resources embodying economic benefits is remote, are disclosed separately in Notes to Accounts and / or provided for depending upon the managemenfs perception as to whether the said liability is likely to materialize or not. Contingent assets are not recognized or disclosed in the financial statements.