Accounting Policies of AVI Polymers Ltd. Company

Mar 31, 2024

Note : 1. Significant accounting policies

(a) Statement of compliance

The Standalone Financial Statements comply in all material respects with Indian Accounting
Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) read with
Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and other relevant provisions
of the Act, as amended.

(b) Basis of preparation

The financial statements have been prepared on historical cost basis except for certain financial
instruments measured at fair value. The Standalone Financial Statements have been prepared on
accrual and going concern basis.

(c) Use of estimates and judgments

The preparation of financial statements in conformity with Ind AS requires management to make
judgments, estimates and assumptions, that affect the application of accounting policies and the
reported amounts of assets, liabilities and disclosures of contingent assets and liabilities at the
date of these financial statements and the reported amounts of revenues and expenses for the
years presented. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to
accounting estimates are recognised in the period in which the estimate is revised and future
periods affected.

In particular, information about significant areas of estimation uncertainty and critical judgments
in applying accounting policies that have the most significant effect on the amounts recognized
in the financial statements are included in following notes :

i) Recoverability/recognition of deferred tax assets and Estimation of Tax expenses and Liability

ii) Assets and obligations relating to employee benefits

iii) Impairment of Financial Assets such as Trade Receivables

(d) Revenue recognition

Revenue is recognised when control of goods is transferred to a customer in accordance with the
terms of the contract. The control of the goods is transferred upon delivery to the customers
either at factory gate of the Company or specific location of the customer or when the goods are
handed over to the freight carrier, as per the terms of the contract. A receivable is recognised by
the Company when the goods are delivered to the customer as this represents the point in time
at which the right to consideration becomes unconditional, as only the passage of time is required
before payment is due.

Revenue is measured based on the consideration to which the Company expects to be entitled
as per contract with a customer. The consideration is determined based on the price specified in
the contract and revenue is only recognised to the extent that it is highly probable that a
significant reversal will not occur. Contracts with customers are for short-term, at an agreed price
basis having contracted credit period ranging up to 180 days. The contracts do not grant any
rights of return to the customer. Returns of goods are accepted by the Company only on an
exception basis. Revenue excludes any taxes or duties collected on behalf of the government
which are levied on sales such as goods and services tax.

Interest income from financial assets is recognised using the effective interest rate method. The
effective interest rate is the rate that exactly discounts estimated future cash receipts through
the expected life of the financial asset to the gross carrying amount of a financial asset. When
calculating the effective interest rate, the Company estimates the expected cash flows by
considering all the contractual terms of the financial instrument (for example, prepayment,
extension, call and similar options) but does not consider the expected credit losses.

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Mar 31, 2015

(a) Basis of Accounting:

The financial statements are prepared under historical cost convention and to comply in all material respect with the notified accounting standards issued by The Institute of Chartered Accountant of India.

(b) Use of Estimates

The preparation of financial statements is in conformity with Generally Accepted Accounting Principle which require estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liability on the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from this estimate and differences between actual results and estimates are recognized in the period in which the results are known / materialize.

(c) Fixed Assets:

Fixed Assets are stated at cost less accumulated depreciation. The cost of fixed asset comprise of its purchase price and any directly attributable cost of bringing the assets in an operational condition for its intended use.

(d) Depreciation:

Depreciation has been provided at the rates and in the manner prescribed in Schedule II of the Companies act, 2013 on WDV Method. Depreciation on addition or on sale/ disposal of assets is calculated pro-rata from the date of such addition or sale/ disposal as the case may be.

(e) Valuation of Inventories:

Inventory of goods are valued at Cost or Market Price whichever is lower.

(f) Investment:

Long term investments are stated at cost. Provision of diminution in the value of Long term investments is made only if such decline is other than temporary in nature in the opinion of the Management.

(g) Revenue Recognition:

(i) Revenue is recognized to the extent that is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

(ii) Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods are transferred to the customer and is stated net of trade discounts, excise duty, sales return, value added tax, claims etc.

(iii) Revenue is recognized on a time proportion basis taking into account the amount outstanding and the applicable rate of interest.

(h) Employee Benefits:

The amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognized as an expense during the period when the employees render the services. Further, the Company does not have any policy of providing post- employment benefits to any of its employee and hence the provision of such expenses is not required to be made in the financial statements.

(i) Taxation:

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized subject to the consideration of prudence in respect of deferred tax assets on timing differences, being the difference between the taxable incomes and accounting income that originate in, one period and are capable of reversal in one or more subsequent period.

In accordance with Accounting Standard 22 "Accounting for taxes on Income" issued by The Institute Of Chartered Accountants Of India, Company has not accounted for deffered Tax. Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income e will be available against which such deferred tax assets can be realized.

(j) Provisions, Contingent Assets and Contingent Liabilities:

Contingent Liabilities as defined in Accounting Standard 29 on "Provisions, Contingent Liabilities and Contingent Assets" are disclosed by way of notes to the account. Provision is made if it is probable that an outflow of future economic benefits will be required for an item previously dealt with as a contingent liability.

(k) Purchase & Expenses :

(i) The major item of expenses are accounted for on time pro rata basis and necessary provision for the same are made.

(ii) Purchases are accounted at invoice value. The other components like freight, octroi, transport charges are shown separately. Rebate and discount received on purchase are netted of from purchases.

(l) Impairment of Assets:

The management of the Company is of the opinion that there are no Fixed Assets to be impaired for the period, as identified by the sources of information, mentioned in the Accounting Standard-28 "Impairment of Assets" issued by the ICAI.

(m) Balances of Debtors and Creditors are subject to confirmation to be obtained. In the opinion of the board, current assets, loans and advances have value on realization in the ordinary course of business at least equal to the amount at which they are stated. The provision for other known liabilities is adequate and not in excess of what is required.

(n) Previous year's figures have been regrouped or rearranged wherever required to be made for better presentation of financial statements. Figures are rounded off to the nearest rupee.

(o) Earningsper Share:

The Company reports basic & diluted earnings per share in accordance with Accounting Standard 20, "Earning Per Share" issued by the ICAI. Basic earnings per share is computed by dividing the net profit after tax available to equity shareholders by the weighted average number of equity shares outstanding during the year.

(p) Segment Reporting:

The Company has only one segment of activity, namely trading.

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Mar 31, 2014

(a) Basis of Accounting:

The financial statements are prepared under historical cost convention and to comply in all material respect with the notified accounting standards by the Companies Accounting standard Rules - 2006 and the relevant provision of Companies Act, 1956.

(b) Use of Estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principle require estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liability on the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from this estimate and differences between actual results and estimates are recognized in the period in which the results are known / materialize.

(c) Fixed Assets:

Fixed Assets are stated at cost less accumulated depreciation. The cost of fixed asset comprise of its purchase price and any directly attributable cost of bringing the assets in an operational condition for its intended use.

(d) Depreciation:

Depreciation has been provided at the rates and in the manner prescribed in Schedule XIV of the Companies act, 1956 on WDV Method. Depreciation on addition or on sale/ disposal of assets is calculated pro-rata from the date of such addition or sale/disposal as the case may be.

(e) Valuation of Inventories:

Inventory of goods are valued at Cost or Market Price whichever is lower.

(f) Investment:

Long term investments are stated at cost. Provision of diminution in the value of Long term investments is made only if such decline is other than temporary in nature in the opinion of the Management.

(g) Revenue Recognition:

The sales are shown net of discount on sales, sale return, rate differences and all other items of Income and expenses are recognized on accrual basis.

(h) Employee Benefits:

The amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognized as an expense during the period when the employees render the services. Further, the Company does not have any policy of providing post-employment benefits to any of its employee and hence the provision of such expenses is not required to be made in the financial statements.

(i) Taxation:

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized subject to the consideration of prudence in respect of deferred tax assets on timing differences, being the difference between the taxable incomes and accounting income that originate in, one period and are capable of reversal in one or more subsequent period.

In accordance with Accounting Standard 22 "Accounting for taxes on Income" issued by The Institute Of Chartered Accountants Of India, Company has not accounted for deffered Tax. Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income e will be available against which such deferred tax assets can be realized.

(j) Provisions, Contingent Assets and Contingent Liabilities:

Contingent Liabilities as defined in Accounting Standard 29 on "Provisions, Contingent Liabilities and Contingent Assets" are disclosed by way of notes to the account. Provision is made if it is probable that an outflow of future economic benefits will be required for an item previously dealt with as a contingent liability.

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Mar 31, 2013

(a) Basis of Accounting:

The financial statements are prepared under historical cost convention and to comply in all material respect with the notified accounting standards by the Companies Accounting standard Rules - 2006 and the relevant provision of Companies Act, 1956.

(b) Use of Estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principle require estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liability on the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from this estimate and differences between actual results and estimates are recognized in the period in which the results are known / materialize.

(c) Fixed Assets:

Fixed Assets are stated at cost less accumulated depreciation. The cost of fixed asset comprise of its purchase price and any directly attributable cost of bringing the assets in an operational condition for its intended use.

(d) Depreciation:

Depreciation has been provided at the rates and in the manner prescribed in Schedule XIV of the Companies act, 1956 on WDV Method. Depreciation on addition or on sale/ disposal of assets is calculated pro-rata from the date of such addition or sale/ disposal as the case may be.

(e) Valuation of Inventories:

Inventory of goods are valued at Cost or Market Price whichever is lower.

(f) Investment:

Long term investments are stated at cost. Provision of diminution in the value of Long term investments is made only if such decline is other than temporary in nature in the opinion of the Management.

(g) Revenue Recognition:

The sales are shown net of discount on sales, sale return, rate differences and kasar and all other items of Income and expenses are recognized on accrual basis.

(h) Retirement Post retirement Benefits:

No Provision has been made for liabilities for retirement benefits including gratuity and leave encashment in respect of employees as required by the Accounting Standards -15 on Retirement Benefits.

(i) Taxation:

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized subject to the consideration of prudence in respect of deferred tax assets on timing differences, being the difference between the taxable incomes and accounting income that originate in, one period and are capable of reversal in one or more subsequent period.

In accordance with Accounting Standard 22 "Accounting for taxes on Income" issued by The Institute Of Chartered Accountants Of India, Company has not accounted for differed Tax. Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

(j) Provisions, Contingent Assets and Contingent Liabilities:

Contingent Liabilities as defined in Accounting Standard 29 on "Provisions, Contingent Liabilities and Contingent Assets" are disclosed by way of notes to the account. Provision is made if it is probable that an outflow of future economic benefits will be required for an item previously dealt with as a contingent liability.

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Mar 31, 2011

(a) SYSTEM OF ACCOUNTIN

(I) The accounts prepared on the historical cost bas s and on the accounting principles of a going concern.

(II) Accounting policies, not specifically referred to otherwise, are consistent and in consonance with generally accepted accounting principles.

(III) All expenditures and income to the extent considered payable and receivables respectively, are accounted for. on accrual basis

(b) FIXED ASSETS

Fixed assets are stated at cost of acquisition or cons|ruction. They are stated at historical cost ess accumulated. depreciation

(C) DEPRECIATION

Depreciation on fixes assets is provided on WDV method at rates and in the manner specified in Schedule IV of The Companies Act, 1956 read with the relevant circulars issued by the Department of Company Affairs.

(d) INVENTORIES

I Raw materials : At cost on First in First out method

II Finished Goods : At lower of absorption cost or net realisable value.

Packing materials : At cost on first in first out method

IV Semi finished goods : On estimate

(e) REVENUE RECOGNITION

1 During the year, the company has debited rate diff of Rs.2,00,00,000 due to non compliance of contact for suply of goods to Disman Pharmacuticals & chemicals Ltd. Ahmedabad.and recover Rs.7500000 from Ankita Chemical Corporation for non compliance of contract.

2 In the previous year figures, the sales is net of discount on Sales, Sales return Rate Difference and kasar. In addition it is also net of Bad Debt of Rs. 10675434 due from M/S.GTCI. Mobile Comm Tech Ltd, which is not as per accounting standard and accounting prudence and it has material effect on sales figure i.e. sales figure is understated by Rs.10675434.

Other income is recognised on accrual basis.

(f) CONTINGENT LIABILITIES

All liabilities have been provided for in the accounts except liabilities of a contingent nature which have been disclosed at their estimated value in the notes on accounts

(g) TAXATION

Provision is made for taxation on a yearly basis under the tax payable method, based on tax libility, as computed after taking credit for allowances and exemptions. In case of matters under appeal, due to disaillowance or otherwise full provision is made when the said liabilities are accepted.