AVI Products India Ltd. कंपली की लेखा नीति

Mar 31, 2024

Note No. 1: SIGNIFICANT ACCOUNTING POLICIES
(I) Basis of Preparation of Financial Statements:

These financial statements have been prepared In accordance with the Indian Accounting Standards (hereinafter referred
to as the ''Ind AS'') as notified by Ministry of Corporate Affairs pursuant to section 133 of the Companies Act, 2013 read
with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards)
Amendment Rules, 2016. The financial statements have been prepared on accrual and going concern basis. The
accounting policies are applied consistently to all the periods presented in the financial statements.

The financial statements are presented in Rs in Thousands and all values are rounded to the nearest two decimals, except
when otherwise indicated.

(ii) Basis of Measurement

These financial statements are prepared under the historical cost convention unless otherwise indicated

(iii) Key Estimates and Assumptions

The preparation of financial statements requires management to make judgments, estimates and assumptions in the
application of accounting policies that affect the reported amounts of assets, liabilities, income and expenses. Actual
results may differ from these estimates. Continuous evaluation is done on the estimation and judgments based on
historical experience and other factors, including expectations of future events that are believed to be reasonable.
Information about critical judgments in applying accounting policies, as well as estimates and assumptions that have the
most significant effect to the carrying amounts of assets and liabilities within the next financial year, are as follows:

- Determination of the estimated useful lives of tangible assets and the assessment as to which component of the cost
may be capitalized - Note 1(v).

- Impairment of Property, Plant and Equipment''s - Note 2 of Financials

- Recognition and measurement of defined benefit obligations - Note 1(xiii)

- Recognition of deferred tax assets - Note 1(xv)

- Fair value of financial instruments - Note 1(iv)

- Provisions and Contingent Liabilities - Note 1(xvi)

(iv) Measurement of fair values

The Company''s accounting policies and disclosures require the measurement of fair values for financial instruments.
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, regardless of whether that price is directly observable or
estimated using another valuation technique.

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 asset 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 are
available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of
unobservable inputs.

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

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

• Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is

directly or indirectly observable

• Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is

Unobservable

(v) Property plant and equipment (PPE).

PPE are initially recognized at cost except the assets of the transferor company acquired in the amalgamation which was
recognized at book value by the company. The initial cost of PPE comprises its purchase price, including non-refundable
duties and taxes net of any trade discounts and rebates. The cost of PPE includes interest on borrowings (borrowing cost)
directly attributable to acquisition, construction or production of qualifying assets subsequent to initial recognition, PPE
are stated at cost less accumulated depreciation (other than freehold land, which are stated at cost) and impairment
losses, if any.

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 Company and the cost of the
item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized
when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they
are incurred.

Depreciation is provided on a pro-rata basis on Written Down value method based on estimated useful life prescribed
under Schedule II to the Companies Act, 2013 with the exception of the following:

- Assets costing Rs. 5,000 or less are fully depreciated in the year of purchase.

Estimated useful lives by major class of assets are as follows:

Plant and Equipment - 5 years
Motor Vehicles - 8 years

Computers - 3 years

Office Equipment - 5 years

Furniture & Fixtures - 10 years

The carrying values of property, plant and equipment are reviewed for impairment when events or changes in
circumstances indicate that the carrying value may not be recoverable.

The residual values, useful life and depreciation method are reviewed at each financial year-end to ensure that the
amount, method and period of depreciation are consistent with previous estimates and the expected pattern of
consumption of the future economic benefits embodied in the items of property, plant and equipment.

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Any gain or loss arising on disposal or retirement of an item of
property, plant and equipment is determined as the difference between sales proceeds and the carrying amount of the
asset and is recognized in profit or loss. Fully depreciated assets still in use are retained in financial statements.

(vi) Non - derivative Financial instruments

Financial assets and liabilities are recognized when the Company becomes a party to the contractual provisions of the
instrument. Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial
liabilities at fair value through profit or loss) are added to or deducted from the fair value measured on initial recognition
of financial asset or financial liability.

(vii) Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash
that are subject to an insignificant risk of change in value and having original maturities of three months or less from the
date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted
for withdrawal and usage

(viii) Financial assets at fair value through other comprehensive income (FVTOCI)

Financial assets are measured at fair value through other comprehensive income if these financial assets are held within
a business whose objective is achieved by both collecting contractual cash flows that give rise on specified dates to solely
payments of principal and interest on the principal amount outstanding and by selling financial assets.

The Company has made an irrevocable election to present subsequent changes in the fair value of equity investments
not held for trading in Other Comprehensive Income

(ix) Financial assets at fair value through profit or loss (FVTPL)

Financial assets are measured at fair value through profit or loss unless it is measured at amortised cost or at fair value
through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition
of financial assets and liabilities at fair value through profit or loss are immediately recognized in profit or loss.

Financial liabilities

Financial liabilities are measured at amortised cost using the effective interest method.

Equity instruments

1. An equity instrument is a contract that evidences residual interest in the assets of the Company after deducting all
of its liabilities. Equity instruments recognized by the Company are measured at the proceeds received net off direct
issue cost.

2. The Company has issued 7,22,230 ordinary equity shares of Face Value of Rs 10 each at a price of Rs 31 per share

during the current financial year i.e. 2023-24 for which the company has received total consideration of Rs
2,23,89,130/- out of which

Rs 1,51,66,830/- forms part of Securities Premium of the company.

Off setting of financial instruments

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

(x) Impairments of Non-financial assets

The carrying values of assets / cash generating units at each balance sheet date are reviewed for impairment if any
indication of impairment exists.

If the carrying amount of the assets exceed the estimated recoverable amount, impairment is recognized for such excess
amount. The impairment loss is recognized as an expense in the Statement of Profit and Loss, unless the asset is carried
at revalued amount, in which case any impairment loss of the revalued asset is treated as a revaluation decrease to the
extent a revaluation reserve is available for that asset

When there is indication that an impairment loss recognized for an asset in earlier accounting periods which no longer
exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss, to the
extent the amount was previously charged to the Statement of Profit and Loss.

(xi) Inventories:

Inventories are valued at lower of cost (on weighted average basis) and net realisable value after providing for
obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to their
present location and condition, including octroi and other levies, transit insurance and receiving charges. Net realisable
value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the
estimated costs necessary to make the sale.

(xii) Revenue recognition

Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflect
the consideration which the company expects to receive in exchange for those products or services.

Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discount, price
concessions and incentives, if any as specified in the contract with the customer. Revenue also excludes taxes collected
from customers.

Interest income from financial assets is recognized when it is probable that economic benefits will flow to the Company
and the amount of income can be measured reliably.

(xiii) Employee benefits
Short-Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee
benefits. Benefits such as salaries, performance incentives, etc., are recognized as an expense at the undiscounted
amount in the Statement of Profit and Loss of the year in which the employee renders the related service.

Defined benefit plans

The Company also provides for retirement benefits in the form of gratuity, compensated absences and medical benefits
including to the employees of subsidiary and group companies.

Post Employment Benefits

Payments made to a defined contribution plan such as Provident Fund and Family Pension maintained with Regional
Provident Fund Office are charged as an expense in the Statement of Profit and Loss as they fall due.

Terminal Benefits

All terminal benefits are recognized as an expense in the period in which they are incurred.

(xiv) Borrowing costs

Borrowing costs are interest and other costs that the Company incurs in connection with the borrowing of funds and is
measured with reference to the effective interest rate applicable to the respective borrowing. Borrowing costs that are
directly attributable to the acquisition of an asset that necessarily takes a substantial period of time to get ready for its
intended use are capitalised as part of the cost of that asset till the date it is put to use. Other borrowing costs are
recognized as an expense in the period in which they are incurred

(xv) Taxes on Income

Income tax expense comprises current and deferred tax and is recognized in the Statement of Profit and Loss except to
the extent that it relates to items recognized directly in equity or in OCI

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any
adjustment to the tax payable or receivable in respect of previous years. It is measured using tax rates enacted or
substantively enacted at the reporting date

Deferred Tax

Deferred income tax is recognized using the Balance Sheet approach. Deferred income tax assets and liabilities are
recognized for deductible and taxable temporary differences arising between the tax base of assets and liabilities and
their carrying amount, except when the deferred income tax arises from the initial recognition of an asset or liability in
a transaction that is not a business combination and affects neither accounting nor taxable proft or loss at the time of
the transaction.

Deferred tax assets are recognized only to the extent that it is probable that either future taxable profits or reversal of
deferred tax liabilities will be available, against which the deductible temporary differences, and the carry forward of
unused tax credits and unused tax losses can be utilised.

Deferred tax assets and liabilities are off set when there is a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the same taxation authority

As per the conservative accounting policy followed by the company, Defferred Tax Assets has not been recognised in the
Balance sheet during the year.

---

Mar 31, 2014

A Basis of preparation of Financial Statements:

a. The Financial Statements have been prepared under the historical cost convention in which the Accounting Standards specified to be mandatory by the Institute of Chartered Accountants of India and the provisions of Companies Act 1956.

b. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles followed by the Company.

c. Contingent liabilities, if any are taken as certified by the management and are disclosed separately in the notes to accounts.

B Inventories:

a Finished goods are valued at cost (net of local taxes).

Revenue & Expenses : All income and expenditure items unless otherwise stated are recognised on accrual b basis.

Material known liabilities are provided for on the basis of available information / estimates. Material items of prior period expenses, non recurring and extra ordinary expenses are disclosed separately.

C Sales :

a Sales excludes Sales Tax.

---

Mar 31, 2012

A. Basis of preparation of Financial Statements:

a. The Financial Statements have been prepared under the historical cost convention in which the Accounting Standards specified to be mandatory by the Institute of Chartered Accountants of India and the provisions of Companies Act 1956.

b. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles followed by the Company.

c. Contingent liabilities, if any are taken as certified by the management and are disclosed separately in the notes to accounts.

B. Inventories:

a. Finished goods are valued at cost (net of local taxes).

b. Revenue & Expenses : All income and expenditure items unless otherwise stated are recognised on accrual basis.

c. Material known liabilities are provided for on the basis of available information / estimates. Material items of prior period expenses, non recurring and extra ordinary expenses are disclosed separately.

C. Sales : a. Sales excludes Sales Tax.

D. No managerial remuneration or sitting fees have been paid to or provided for any directors of the company.

E. Previous years figures are regrouped and rearranged wherever necessary as per Schedule VI.

F. Out of the loans and advances given, advance amount of Rs. NIL (P.Y. Rs. 1,129,547/-) is doubtful of recovery and no provision is made for those advance.

G. In the opinion of the Board, the Current Assets, Loans and Advances (Except mentioned in point no 4 above) are approximately of the value stated, if realised in ordinary course of business. The provision for all known liabilities is adequate and not in excess of the amounts reasonably necessary.No personal expenses have been debited to the Profit and Loss Account.

H. Sundry Debtors, Creditors, Loans, Advances are subject to confirmationand reconciliation, if any.

I. The Company does not have a full time Company Secretary as required under Section 383A of the Companies Act,1956. The Company is taking necessary steps to comply with the same.

J. Debts due by company in which Director is interested:

---

Mar 31, 2010

A Basis of preparation of Financial Slalements:

a The Financial Slalement have been prepared under the historical cost convention in which the Accounting Standard specified to be mandatory by the Institute of Chartered Accountants of India and the provisions of Companies Act 1956

b Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles followed by the Company

c Contingens liabilities, if any are taken as certified by the management and are disclosed separately in the notes to accounts.

B Fixed Assets and Depreciation :

a Fixed Assets are stated at cost of acquisition/construction less accumulateddepreciation.

b Depreciation has been provided in the accounts on straight line at the rates provided in Schedule XIV of the Companies Act.1956

c Depreciation on addition to fixed assets is calculated prorata from the date of such addition/put to use.

d The Leasehold Land has been obtained from Maharashtra Industrial Development Corporation for a term of 95 years The cost of the Leasehold land has been amortised over the Balance period of the Lease and is included in Depreciation.

C Inventories

a Raw Materials and packing materials are valued at cost.

b Manufactured speciality chemicals are valued at net realisable value, other finished goods and semi finished goods have been valued at lower of cost or net realisable value. Cost is computed on reverse method i.e. net realisable value less estimated percentage of Profit.

There has been contravention of Accounting Standard 2 (Revised) "Valuation of lnventories".Quantification of the same is not possible since the cost of purchase, costs of conversion and other costs cannot be derived as most of the items in stock consists of opening stock.

The goods lying in the bonded warehouse are valued excluding excise. If the value of excise is included, the value of inventories will increase by Rs.5,21,075/-. This also is in contravention of Accounting Standard 2 (Revised) in respect of "Valuation of Inventories".However, the same will have no impact on profit.

c In respect of trading activities, stock is valued at cost or market value whichever is lower.

The goods lying in the custom bonded warehouse are valued excluding custom duty. If the value of duty is included. the alue of inventory will increase by Rs.85,647/- This also is in contravention of Accounting Standard 2 (Revised) in respect of "Valuation of Inventories". However, the same will have no impact on profit.

D Revenue & Expenses: All income and expenditure items unless otherwise stated are recognised on accrual basis. Material known liabilities are provided for on the basis of available information / estimates Material items of prior period expenses, non recurring and extra ordinary expenses are disclosed separately.

E Sales.

Sales include excise duty and Sales Tax but excludes discounted commission

F Excise Dury :

Excise duty is accounted for as and when paid on clearance of goods from the bonded premises.No Provision is mad for excise duty in respect of Finished goods lying in bonded premises

G Custom Duly:

Custom duty is accounted for as and when paid on clearance of goods from the bonded premises. No Provision is made for Custom duty in respect of goods lying in bonded premises.

H Foreign Currency Transaction :

Open transaction of import/export in foreign currency are accounted for at exchange ratio prevaling at the year end. Gains/losses arising out of subsequent fluctuation in the rales are accounted for on realisation.

I Retirement benefits/Encashment of leave :

The company has already made sufficient provision in respect of gratuity. Management is of opinion that provision it sufficient hence no further provision is required