Accounting Policies of Triveni Glass Ltd. Company

Mar 31, 2024

1. Corporate Information

Triveni Glass Limited ( the Company'' or ''TGL'') was incorporated in 1971 with the object to manufacture laminated safety glass for automobiles. TGL had the capacity to manufacture all types of flat glass - Float. Sheet (clear & tinted), Figured (clear & tinted). Reflective, Mirrors, Table Tops.

The Company is publicly traded on BSE Limited.

2. Basis or preparation

These financial statements arc prepared in accordance with Indian Accounting Standards (Ind AS) prescribed under section 133 of the Companies Act. 2013 read with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and the amendment issued thereafter.

These financial statements have been prepared on accrual and going concern basis and the historical cost convention, except for the certain financial instruments which have been measured at fair value as required under relevant Ind AS.

The company has adopted all the Ind AS and the adoption w as carried out in accordance with Ind AS 101: First time adoption of Indian Accounting Standards. The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under section 133 of the Act. read w ith rule 7 of the Companies (Accounts) Rules. 2014 (IGAAP), which w as the previous GAAP.

Accounting policies have been applied consistently except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

All the amounts included in the financial statements are reported in lakhs of Indian ’ (“''”) except per share data and unless stated otherwise.

3. Significant accounting policies

a) Revenue recognition

i) Revenue is measured at the fair value of the consideration received or receivable taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government.

ii) Interest income is recognized as it accrues in Statement of Profit and Loss, using the effective interest rate (EIR) which is the rate that exactly discounts the estimated future cash receipts through the expected life of the financial instrument or a shorter period, w here appropriate, to the net carrying amount of the financial asset

iii) Dividend income is recognized when the right to receive payment is established, which is generally when dividend are declared in general meeting.

b) Property, Plant and Equipment

Recognition and measurement

Property, plant and equipment including Capital work in progress is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Cost includes purchase price including non-refundable taxes, directly attributable cost in relation of such asset and estimated cost of dismantling/ restoration if any.

The cost of replacing part of the Property, plant and equipment and borrowing costs are capitalized if the recognition criteria are met. When significant parts of property, plant and equipment are required to be replaced in intervals, the Company recognizes such parts as separate component of assets with specific useful lives and provides depreciation over their useful life. Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably. The earn ing amount of the replaced part is derecognized. All other repair and maintenance costs are recognized in the Statement of Profit and Loss as incurred.

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Statement of Profit and Loss when the asset is derecognized.

Assets are depreciated to the residual values on a straight-line basis over the estimated useful lives prescribed in Schedule 11 of Companies Act, 2013 on a pro-rata basis from the date the asset is ready to put to use.

The asset''s residual values and useful lives are reviewed at each financial year end or whenever there are indicators for impairment and adjusted prospectively.

Capital work-in-progress

Costs of property, plant and equipment under construction are disclosed under capital work-in-progress, if any.

c) Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets in accordance w ith notified Indian Accounting Standard 23 "Borrow ing costs". A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use or sell. All other borrow ing costs are charged to the Statement of Profit and Loss as incurred.

d) Impairment of assets

At each reporting date, the Company assesses whether there is any indication that an asset may be impaired, based on internal or external factors. If any such indication exists, the Company estimates the recoverable amount of the asset or the cash generating unit. If such recoverable amount of the asset or cash generating unit to which the asset belongs is less than its carry ing amount, the carry ing amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss. If. at the reporting date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount. Impairment losses previously recognized are accordingly reversed in the statement of profit and loss.

e) Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is treated as current when it is:

• Expected to be realized or intended to be sold or consumed in normal operating cycle.

• It is held primarily for the purpose of trading.

• Expected to be realized within twelve months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

A liability'' is current when:

• It is expected to be settled in nonnal operating cycle.

It is held primarily for the purpose of trading.

• It is due to be settled within twelve months after tire reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities, if any .

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

0 Inventories

Inventories are valued at cost or net realizable value, whichever is lower. Cost of inventories is determined using the weighted average cost method and includes purchase price, and all direct costs incurred in bringing the inventories to their present location and condition.

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

g) Retirement and other employee benefits

Short term employee benefits are recognized in the period during which the services have been rendered by the employee.

The Company’s post-employment benefits include defined benefit plan and defined contribution plans.

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions to a statutory authority and will have no legal or constructiv e obligation to pay further amounts. The Company contributions to defined contribution plans are recognized in Statement of Profit & Loss when the related services are rendered. The Company has no further obligations under these plans beyond its periodic contributions. The Company''s contribution to prov ident fund and employee state insurance schemes is charged to the statement of profit and loss.

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. Under the defined benefit retirement plan, the Company prov ides retirement obligation in the form of Gratuity. Under the plan, a lump sum payment is made to eligible employees at retirement or termination of employment based on respective employee salary and years of experience with the Company.

The Company has funded employee expenses on the basis of prudent estimation. The annual expense is booked in profit and loss account.

Foreign currency transactions

Functional and presentation currency

The Company''s financial statements are presented in INR, which is also the Company''s functional currency. Presentation currency is the currency in which the financial statement of the company is presented. Functional currency is the currency of the primary economic env ironment in which an entity operates and is normally the currency in which the entity primarily generates and expends cash.

Transactions and Balances

Transactions in foreign currencies are initially recorded by the Company at the functional currency spot rates at the date the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. Differences arising on settlement or translation of monetary items are recognized in Statement of Profit or Loss. Exchange differences arising on settlement, or restatement as at reporting date, of long term foreign currency monetary items, at rates different from those at which they were initially recorded, in so far as it relates to acquisition of depreciable capital asset are added to or deducted from cost of such capital asset and depreciated or amortized over remaining useful life of the asset.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognized in OCI or profit or loss are also recognized in OCI or profit or loss, respectiv ely).

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.

h) Income Taxes

The income tax expense comprises of current and deferred income tax. Income tax is recognized in the statement of profit and loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity, in which case the related income tax is also recognized accordingly, if an}''.

Current tax

The current tax is calculated on the basis of tax rates, laws and regulations, which have been enacted or substantively enacted as at the reporting date. The payment made in excess/(shortfall) of the company''s income tax obligation for the period are recognized in the balance sheet as current income tax assets/liabilities. Any interest related to accrued liabilities for potential tax assessment are not included in income tax charge or (credit) but are rather recognized within finance cost.

Minimum Alternate Tax ("MAT”) credit entitlement is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in guidance note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of profit and loss and shown as MAT credit entitlement. The Company reviews the same at each balance sheet date and writes down the earn ing amount of MAT credit entitlement to the extent it is not reasonably certain that the Company will pay normal income tax during the specified period.

Deferred tax

Deferred tax is recognized using balance sheet approach, on temporary differences arising between the tax bases of assets and liabilities and their earning value in the financial statements. However deferred tax are not recognized if it arises from initial recognition of asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss.

Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which the temporary'' difference can be utilized. The unrecognized deferred tax assets / carrying amount of deferred tax assets are reviewed at each reporting date for recoverability and adjusted appropriately.

Deferred tax is determined using tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.

Deferred tax assets and deferred tax liabilities are offset against each other and the resultant net amount is presented in the balance sheet, if and only when,

(a) The company currently has a legally enforceable right to set off current income tax assets and liabilities and.

(b) When it relates to income tax levied by the same taxation authority and where there is an intention to settle the current income tax balance on net basis.

i) Extraordinary Items

Under IGAAP the nature and the amount of each extraordinary- item should be separately disclosed in the statement of profit and loss in a manner that its impact on current profit or loss can be perceiv ed. Under IND AS 1. any items of income or expense relating to extraordinary items will be present under respective head instead of show ing separately under extraordinary items.

j) Provisions, contingent liabilities and contingent assets Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time (i.e. unwinding of discount) is recognized as a finance cost.

Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent Assets/Liabilities

Contingent liability is disclosed for:

? - Possible obligations which w ill be confirmed only by future events not wholly w ithin the control of the Companyor,

? - Present obligations arising from past events where it is not probable that an outflow of resources w ill be required to

settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent assets are not recognized in the financial statements since this may result in the recognition of income that may never be realized. Such asset is disclosed in notes to account to balance sheet.

k) Earnings per equity share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the w eighted average number of equity shares outstanding during the period. The w eighted average number of equity'' shares outstanding during the period is adjusted for events including a bonus issue.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity- shares.

l) Fair value Measurement

The company measures financial instruments at fair value at each reporting date. Fair value is the price that would be received to sell an asset or paid to transfer a liability- in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability- takes place either:

• In the principal market for the asset or liability-.

• In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the company.

The fair value of an asset or a liability- is measured using the assumptions that market participants would use when pricing the asset or liability-, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability- to generate economic benefits by using the assets in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The company uses valuation techniques that are appropriate in the circumstances and for which sufficient data arc available to measure the fair value, maximizing the use of relevant observable inputs and maximizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured and disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level inputs that is significant to the fair value measurement as a whole:

• Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability-, either directly (i.e., as prices) or indirectly (i.e., derived from prices)

• Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobserv able inputs)

For assets and liabilities that arc recognized in the financial statements on a recurring basis, the company determines whether transfers have occurred between levels in the hierarchy by reassessing categorization at the end of each reporting period.

For tire purpose of fair value disclosures, the company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the lev el of the fair value hierarchy as explained abov e.

m) Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial Assets

Initial Recognition and Measurement

All financial assets arc recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.

Subsequent Measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

• Debt instruments at amortized cost

• Debt instruments at fair value through other comprehensive income (FVTOCI)

• Debt instruments, deriv ativ es and equity'' instruments at fair value through Profit& Loss (FVTPL)

• Equity’ instruments measured at fair value through other comprehensive income (FVTOCI)

Debt Instruments at Amortized Cost

The category applies to the Company''s trade receiv ables. other bank balances, security deposits etc. A ''debt instrument'' is measured at the amortized cost if both the following conditions are met:

a) The asset is held within a business model whose objectiv e is to hold assets for collecting contractual cash flows and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

This category is most relev ant to the Company. After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the Statement of Profit and Loss. The losses arising from impairment are recognized in the Statement of Profit and Loss.

Debt instrument at FVTOCI

A “debt instrument" is classified as at the FVTOCI if both of the following criteria are met:

a) The objective of the business model is achicv ed both by collecting contractual cash flows and selling the financial assets, and

b) The asset''s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income (OCI). However, the Company recognizes interest income, impairment losses & reversals in the Statement of Profit and Loss. On derecognition of the asset, cumulative gain or loss prev iously recognized in OCI is reclassified from the equity to Statement of Profit and Loss.

Interest earned whilst holding FVTOCI debt instrument is reported as interest income.

Debt instrument at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization at amortized cost or at FVTOCI, is classified at FVTPL.

Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the Statement of Profit and Loss.

Equity investments

All equity investments in scope of lnd AS 109 are measured at fair value. Equity instruments which are held for trading and contingent consideration recognized by an acquirer in a business combination to which lnd AS 103 applies are classified as at FVTPL. There are no such investments in the Company.

De-recognition:- A financial asset (or, where applicable, a part of a financial asset) is primarily derecognized (i.e. removed from the Company''s balance sheet) when:

a) The contractual rights to receive cash flows from the asset have expired, or

b) The Company has transferred its contractual rights to receive cash flows from the financial asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ''pass-through'' arrangement: and either (a) the Company has transferred substantially all the risks and rew ards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rew ards of the asset, but has transferred control of the asset.

Impairment of Financial Assets

In accordance with lnd AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the financial assets that are debt instruments and are initially measured at fair value w ith subsequent measurement at amortized cost e.g. Trade receivables etc.

The company follow s ''simplified approach'' for recognition of impairment loss allowance for trade receivables.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognizes impairment loss allow ance based on lifetime ECLs at each reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, twelve month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in the subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognizing impairment loss allow ance based on a twelve month ECL.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e.. all cash shortfalls), discounted at the original EIR.

Financial Liabilities

Initial Recognition and Measurement

Financial liabilities arc classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrow mgs or payables, as appropriate.

All financial liabilities are recognized initially at fair value and, in the case of loans and borrow ings and payables, net of directly attributable transaction costs. The Company''s financial liabilities include trade payables, security deposits, etc. Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below^;:

Financial liabilities at FVTPL

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the puipose of repurchasing in the near term.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in lnd AS 109 are satisfied. For liabilities designated as FVTPL. fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ losses are not subsequently transferred to Statement of Profit and Loss. However, the Company may transfer the cumulative gain or loss w ithin equity. All other changes in fair value of such liability are recognized in the Statement of Profit or Loss.

Financial Liabilities at Amortized cost

This category includes security deposit received, trade payables etc. After initial recognition, such liabilities are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in Statement of Profit and Loss when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the

E1R. The EIR amortization is included as finance costs in the Statement of Profit and Loss.

De-recognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from tire same lender on substantially different terms or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the Statement of Profit and Loss.

Reclassification of Financial Assets

The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The Company''s senior management determines change in the business model as a result of external or internal changes which are significant to the Company''s operations. Such changes are evident to external parties. A change in the business model occurs when the Company either begins or ceases to perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The Company does not restate any previously recognized gains, losses (including impairment gains or losses) or interest.

Offsetting of Financial Instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on net basis, to realize the assets and settle the liabilities simultaneously.

1. The company has reclassified the following categories from previous year''s balance sheet to give a uniform and just accounting presentation .

a. Other financial assets

b. Other current assets.

Overall, there is no change in total assets and liabilities of the company. It is only re-grouping as advised by the statutory auditors of the company.

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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.

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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.

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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.

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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.

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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.

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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.