NOTE 1. SIGNIFICANT ACCOUNTING POLICIES a) Basis of brparation The Financial Statements are brpared under the historical cost convention on accrual basis of accounting to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions thereof. Accounting policies have been consistently applied by the Company and are consistent with those used in the brvious year. b) Fixed Assets i) Fixed assets are carried at the cost of acquisition less accumulated debrciation except freehold land carried at cost. The cost of fixed assets include taxes (net of tax credits as applicable), duties, freight and other incidental expenses related to the acquisition and installation of the respective assets. Interest on borrowed funds attributable to the qualifying assets up to the period such assets are put to use, is included in the cost of fixed assets. ii) Capital work in progress includes expenditure during construction period incurred on projects under implementation. Ni) Project expenses are allocated to respective fixed assets on completion of the project i.e. when it is ready for commercial production. Specified items of expenditure that can be identified for any particular asset are allocated directly to related assets head. Where such direct allocation is not possible, allocation is made on the basis of method most appropriate to a particular case. Sales and other income earned before the completion of the project are reduced from project expenses. iv) Assets identified and evaluated technically as obsolete and held for disposal are stated at lower of book value and estimated net realizable value/salvage value. c) Debrciation/Amortization Tangible Assets i) Debrciation on fixed assets is provided on Straight Line Method (SLM) as per useful life and in themanner brscribed in Schedule II of the Companies Act, 2013 except for certain assets where useful life is based on evaluation supported by technical advice given as under: a) Carpeted roads-other than RCC i) Auto SBU - 15 years ii) Float SBU - 25 years b) Fences (Boundry walls)-Float SBU - 25 years c) Plant and Machinery i) Tooling, Utility, Forklifts, Testing Equipments - 20 years ii) Continuous Process Plant and Electrical Installations forming part thereof - 18 years iii) Float Glass Melting Furnace - 15 years iv) Other parts of fixed assets - 25 years. (Where cost of a part of asset is significant to total cost of the asset) d) Electrical installations-Auto SBU - 25 years ii) Leasehold land is debrciated over the period of lease. iii) Fixed assets not rebrsented by physical assets owned by the Company are amortized over a period of five years. Intangible Assets Computer Software and E-Mark charges are amortized over a period of five years proportionately when such assets are available for use. d) Inventories Inventories are valued at lower of cost or net realizable value except waste which is valued at estimated realisable value as certified by the Management. The basis of determining cost for various categories of inventories are as follows: e) Investments Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long term investments. Current investments are carried at the lower of cost or fair value. Long term investments are carried at cost less permanent diminution in value, if any. f) Revenue Recognition Sales are recognised on transfer of significant risks and rewards which takes place on dispatch of goods to the customer. Sales are stated gross of excise duty as well as net of excise duty; excise duty being the amount included in the amount of gross turnover. Sales exclude VAT/Sales tax and are net of returns and transit insurance claims short received. Earnings from investments, are accrued or taken into revenue in full on receipts. Profit/loss on sale of raw materials and stores stand adjusted in their consumption accounts. g) Government Grants Central Investment Subsidy and DG set subsidy is treated as Capital Reserve. Export incentives are credited to the Statement of Profit and Loss. h) Leases Lease arrangements, where the risks and rewards incidental to ownership of an asset substantially vest with the lessor, are recognized as an operating lease and lease rentals thereon are charged to the Statement of Profit and Loss. i) Employee Benefits Contribution to Defined Contribution Scheme such as Provident Fund etc. are charged to the Statement of Profit and Loss as incurred. The Company has a scheme of Superannuation Fund in Float SBU towards retirement benefits where the Company has no liability other than its annual contribution. The Gratuity Fund benefits are administered by a Trust recognised by Income Tax Authorities through the Group Gratuity Schemes. The liability for gratuity at the end of each financial year is determined on the basis of actuarial valuation carried out by the Insurer's actuary on the basis of projected unit crEdit method as confirmed to the Company. Company's contributions are charged to the Statement of Profit and Loss. Profits and losses arising out of actuarial valuations are recognised in the Statement of Profit and Loss as income or expense. The Company provides for the encashment of leave as per certain rules. The employees are entitled to accumulated leave subject to certain limits, for future encashment/ availment. The liability is provided based on the number of days of unutilised leave at each balance sheet date on the basis of actuarial valuation using projected unit credit method. Liability on account of short term employee benefits comprising largely of compensated absences, bonus and other incentives is recognized on an undiscounted accrual basis. Termination benefits are recognised as an expense in the Statement of Profit and Loss. j) Foreign Exchange Transactions Transactions in foreign currency are recorded at the exchange rates brvailing on the date of transactions. Monetary assets and liabilities denominated in foreign currency are restated at the brvailing year end rates. The resultant gain/loss upon such restatement along with the gain/loss on account of foreign currency transactions are accounted in the Statement of Profit and Loss. The Company accounts for the exchange differences arising on reporting of long term foreign currency monetary items in line with notification no. G.S.R. 225(E) dated March 31, 2009 and subsEquent clarification via circular no 25/2012 dated August 9, 2012 issued by the Ministry of Corporate Affairs, Government of India. k) Derivative Instruments The Company uses derivative financial instruments such as forward exchange contracts, currency swaps etc. to hedge its risk associated with foreign currency fluctuations relating to the firm commitment. The brmium or discount arising at the inception of such contracts is amortised as expense or income over the life of the contract. Derivative contracts outstanding at the balance sheet date are marked to market and resulting profit/loss, if any, is provided for in the Financial Statements. Any profit or loss arising on cancellation of instrument is recognised as income or expense for the period l) Taxation Current tax is determined as the amount of tax payable in respect of taxable income in accordance with relevant tax rates and tax laws. 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. Deferred tax assets are recognised only to the extent there is virtual certainty and convincing Evidence that there will be sufficient future taxable income available to realise such assets. m) Impairment of Assets Regular review is done to determine whether there is any indication of impairment of the carrying amount of the Company's fixed assets. If any such indication exists, impairment loss i.e. the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in the books of accounts. In case there is any indication that an impairment loss recognised for an asset in prior accounting periods no longer exists or may have decreased, the recoverable value is reassessed and the reversal of impairment loss is recognized as income in the Statement of Profit and Loss. n) Provisions and Contingencies A provision is recognised when the Company has a brsent obligation as a result of a past event and it is probable that an outflow of resources would be required to settle the obligation and in respect of which a reliable estimate can be made. A disclosure of contingent liability is made when there is a possible obligation or a brsent obligation that will probably not require outflow of resources or where a reliable estimate of the obligation cannot be made. NOTE 3. The Company has not considered necessary to provide for diminution in investment in equity shares of Subsidiary Companies, as investment is long term and diminution in value is temporary. NOTE 4. The balance of Rs. 543 Lakhs (Rs. 884 Lakhs) in 'Foreign Currency Monetary Item Translation Difference Account' is after adjustment of Rs. 1171 Lakhs (Rs. 973 Lakhs) recognised as expense for the year pursuant to option exercised by the Company in line with Notification No. G.S.R. 225(E) dated March 31, 2009 and subsEquent clarification via Circular No. 25/2012 dated August 9, 2012 issued by the Ministry of Corporate Affairs, Government of India. NOTE 5. Exceptional item of Rs. 204 Lakhs (Rs. 429 Lakhs) rebrsents expenses on account of compensation to employees and related payments. NOTE 6. Details of Investments made, Loans and Advances given and Guarantees given covered under Section 186 (4) of the Companies Act, 2013. NOTE 7. Previous year's figures have been regroup respect of brvious year. NOTE 8. Figures have been rounded off to Rs. lakhs. As per our report of even date attached For Jagdish Sapra & Co. Chartered Accountants (Firm Registration No. 001378N) Jagdish Sapra Partner Membership No. 009194 For and on behalf of the Board B. M. Labroo Chairman Sanjay Labroo Managing Director & Chief Executive Officer Shailesh Agarwal Chief Financial Officer Gopal Ganatra Chief-GRC, General Counsel & Company Secretary Place : New Delhi Dated : 24th May, 2016 |
