ACCOUNTING POLICIES & NOTES ON ACCOUNTS

Schedule -27

A. Accounting Policies
1. General :-

Accounting Policies not specifically referred to otherwise be consistent and in consonance with
generally accepted accounting principles.
2. Revenue Recognition :Expenses and Income considered payable and receivable respectively are accounting for on accrual
basis except discounts claims relates and retirement benefits in respect of leave encashment which
cannot be determined with certainty during the year and interest.
3. Fixed Assets :Fixed assets are stated at their original cost of acquisition including taxes freight and other incidental
expenses related to acquisition and installation of the concerned assets less depreciation till date.
4. Depreciation :Depreciation on Fixed Assets has been provided on WDV line method, on the WDV of Fixed Assets as
per the rates, provided in Schedule XIV of the Companies Act, 1956 Further, in case of addition,
depreciation has been provided on pro-rata basis commencing from the date on which the asset is
commissioned.
5. Investments :Investments are stated at cost.
6. Inventories :Inventories are valued as under :1.
2.
3.
4.

Raw Material
Finished Goods
Glass in Furnace
Scrap

: At Cost on FIFO Basis

: At Cost or Market value which is less.
: On the basis of estimation of the Directors
: On the basis of estimation of the Directors

7. Miscellaneous Expenditure :No Preliminary Expenses was incurred during the year.
8. Retirement Benefits :The company has not taken a policy from Life Insurance Corporation of India for the payment of
gratuity. The gratuity has not been provided in books on accrual basis. The leave encashment is
accounted for as and when the liability for it become due for payment.
9.

Excise Duty :Excise duty is charged on ad-volerum basis and is accounted for when the goods are cleared from
factory site.

10.Taxes on Income:Provision for current tax is made on the basis of estimated taxable income for the current accounting
year in accordance with the Income Tax Act, 1961. The deferred tax for timing differences between
the book and tax profits for the year is accounted for, using the tax rates and laws that have been
substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences
are recognised to the extent there is reasonable certainty that these would be realised in future.

(B) Notes on Accounts

1. The SSI status of the creditors is not known to the company, hence the information is not given.
2. Salaries includes directors remuneration on account of salaryRs.1800000/-(Previous Year Rs.500000/)
3. Sundry Creditors, Sundry Debtors, Loans & Advances and Unsecured Loans have been taken at their
book value subject to confirmation and reconciliation.
4. Consumption of consumables and raw material have been arrived by adding purchases to Opening
Stock and deducted closing stock therefrom.
5. Payments to Auditors:Auditors Remuneration

2012-13

2011-12

Audit Fees

35000.00

10000.00

Tax Audit Fees

25000.00

7500.00

Company Law Matters

10000.00

4500.00

Service Tax

8652.00

0.00

78652.00

22000.00

Total

6. Loans and Advances are considered good in respect of which company does not hold any security
other than the personal guarantee of persons.
7. Excise duty has not been taken into accounted for valuation of finished goods looking at factory site in
view of accounting policy No. 9. The same has no impact as Profit & Loss Account.
8. No provision for leave encashment has been made, in view of accounting policy No. 8. The impact of
the same on Profit & Loss is not determined.
9. Advance to others includes advances to concerns in which directors are interested:

Name of concern
Farukhi Glass Industries

Current Year
Closing
Maximum
Balance
Balance
0.00
0.00

Previous Year
Closing
Maximum
Balance
Balance
3722527.00
29529491.00

10. Other income include Rs.550268.10 on account of interest on FDR (P.Y. Rs.275174.00)
11. Major components of Deferred tax
Particulars

As at
31.03.2013
(Rs.)

As at
31.03.2012
(Rs.)

A) Deferred Tax Liability

Depreciation

Total
B) Deferred Tax Assets
Total

8537535.75

8854618.00

573585.30

317082.25

8537535.75

Net Deferred Tax liabilities/(assets) (A-B)

8854618.00

573585.30

317082.25

7963950.45

8537535.75

12. Addition Information pursuant to para 3 and 4 of Parts II of Schedule VI of the Companies Act, 1956
are Nil except given below :(A) LICENCED AND INSTALLED CAPACITY
As At 2013
(a) Licensed Capacity
(b) Installed Capacity

Not Applicable
Not Applicable

As At 31.3.2012
Not Applicable
Not Applicable

(B) QUANTITATIVE DETAILS OF OPENING STOCK TURNOVER, PRODUCTION/ PURCHASES,

CLOSING STOCK
Current Year
Particulars
Opening Stock
Production
Receipt for replacement
Sales/Dispatch
Rejections/Samples
Closing Stock

Previous Year

Qty
(Pcs)
6792182
159566253

Total
(Amount)
14127739.00

Qty
(Pcs)
1610004
26978914

Total
(Amount)
3124808.00

147408544

429467030.00

21796736

63132578.00

18949891

40732566.00

6792182

14127739.00

(C) RAW MATERIAL CONSUMED

Particulars

Quartz
Soda Ash
Broken Glass
Chemicals

Quantity
Amount
(Qty 'MT'.)
(Rs.)
2012-2013
13024.150
16350691.87
4914.590
95194493.11
12927.525
48639054.96
19866842.48

Quantity
Amount
(Qty 'MT')
(Rs.)
2011-2012
1688.448
1665851.65
749.319
15224522.00
2718.175
9252027.27
905082.00

180051082.42

27047482.92

Total

(D) % of imported & indigenous raw material & consumables

2012-2013
2011 - 12
%
Amount
%
Amount
Imported
0.00
0.00
2.61
778155.00
Indigenous
100.00
178752375.93 97.39
29072550.92
(E) Value of Imports
Raw Material
Finished Goods

Nil
Nil

778155.00
Nil

(F) Expenditure in Foreign Currency

Nil

Nil

(G) Earning in Foreign Exchange

Nil

Nil

Signature to schedule 1 to 26
In terms of Our Separate Audit Report of Even Date Attached.
P G M A & ASSOCIATES
Chartered Accountants
(Registration No.007865C)

PRAVEEN KUMAR GARG

PARTNER
Membership No.: 077089
Place: AGRA
Date: 01/09/2013

For PARAS GLASS WARE PRIVATE LIMITED

(SANJAY PRAKASH MITTAL)

DIRECTOR

(SANJEEV PRAKASH MITTAL)

DIRECTOR