NOTE-21

1. Significant accounting Polices

(a) Basis of Accounting:

The financial statements are brpared 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 brparation 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 debrciation. 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) Debrciation:

Debrciation has been provided at the rates and in the manner brscribed in Schedule II of the Companies act, 2013 on WDV Method. Debrciation 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 brviously 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 brsentation of financial statements. Figures are rounded off to the nearest rupee.

(o) Earnings per 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.

2. NOTES FORMING PART OF ACCOUNTS

(a) As per the information and explanation given to us the Company does not have the policy of providing post employment benefits and hence no provision is made for liabilities for retirement benefits.

(b)The balances shown in the Balance sheet under the head of Creditors, Debtors and Loans and Advances are each subject to confirmation from respective parties and are subject to adjustment, if any, on receipt of confirmation

(c)The Company has not received any intimation from Suppliers regarding their status under Micro and Medium Enterprises Development Act, 2006 and hence disclosure , if any, relating to amounts unpaid as at year end together with interest paid/payable as required under the said Act have not been given.

(d)The Figures for the brvious year have been rearranged and regrouped wherever considered necessary so as to confirm to the current year classification.

(e)  The amounts have been rounded off nearest Rupee.

AS PER OUR REPORT OF EVEN DATE ATTACHED

FOR, S.S. DASANI AND CO.

CHARTERED ACCOUNTANTS

(ARPIT SHAH)

PARTNER

M. No.: 125043

FIRM Reg. No.116521W

FOR, AVI POLYMERS LIMITED

Mansukh Patel (Chairman & M.D.) DIN NO.:00162160

Dinesh Chauhan (Director) DIN NO.: 00977893

Monika Shah (Company Secretary)

Mishra Karan Rajkumar (CFO)

Place: Ahmedabad

Date: 29/05/2015