1 Overview of Company
The Company "Avi AnshTextile Limited" (formerly known as "Avi Ansh Textile Private Limited" )
(CIN:L17110DL2005PLC260403) was incorporated as a "Private Limited Company" under Company Act
on April, 27th 2005. The Company is converted into Public Limited company as on January 3rd 2024. The
company is engaged in the business of manufacturing and Trading of cotton yarn and Fabrics.
2 Significant accounting policies and notes on accounts:
(a) Basis of Preparation of Financial Statements:
The financial statements of the Company have been prepared on accrual basis under the historical cost
convention and going concern basis in accordance with Generally Accepted Accounting Principles in
India ('Indian GAAP') to comply with the Accounting Standards specified under Section 133 of the
Companies Act, 2013 read with Rule 3 of the Companies (Accounting Standards) Rules, 2021 and the
relevant provisions of the Companies Act, 2013
(b) Use of Estimates:
The preparation of financial statements is in conformity with Indian GAAP requires the management to
make estimates and assumptions considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the period. The management believes
that the estimates used in preparation of the financial statements are prudent and reasonable. Future
results could differ due to these estimates and the differences between the actual results and the estimates
are recognized in the periods in which the results are known / materialize.
(c) Revenue Recognition:
All income and expenses to the extent considered recoverable/payable with reasonable certainty are
accounted for on accrual basis. Interest earned/accrued is recognized on a time proportion basis taking
into account the amount outstanding and applicable interest Rate. Interest Income is included under the
head "other Income" in the statement of Profit and Loss. Profit/Loss on sale of fixed assets is recorded on
transfer of title from the company and is computed on the basis of difference between net sale consideration
and the written down value of the asset.
(d) Cash and Cash Equivalent:
Cash comprises cash in hand and demand deposits with banks Cash equivalents are short-term balances
(with an original maturity of three months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are subject to insignificant risk of
changes in value.
(e) Property, Plant & Equipment and Intangible Assets:
Property, plant and equipment, capital work in progress are stated at cost, net of accumulated depreciation
and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if
capitalization criteria are met and directly attributable cost of bringing the asset to its working condition
for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.
Subsequent expenditure related to an item of property, plant and equipment is added to its book value
only if it increases the future benefits from the existing asset beyond its previously assessed standard of
performance.
All other expenses on existing plant, property and equipment, including day-to-day repair and
maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for
the period during which such expenses are incurred. Items of stores and spares that meet the definition of
property, plant and equipment are capitalized at cost and depreciated over their useful life.
(f) Depreciation/Impairment of Assets:
Depreciation on property, plant and equipment including stores and spares transferred from inventory is
calculated on a written down value basis using the rates arrived at, based on the useful lives estimated by the
management, which are equal to the useful lives prescribed under Schedule II to the Companies Act, 2013.
Depreciation on the amount of adjustment to property, plant and equipment on account of capitalization
of insurance spares and critical spares transferred from stores and spares is provided over the remaining
useful lives of related assets.
The residual values, useful lives and methods of depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted prospectively, if appropriate. To calculate depreciation
on Fixed Assets, Tangible and Intangible, in a manner that amortizes the cost of the assets is provided on
the basis of written down value method at the rates on the basis prescribed in Part C of the schedule II of
the Companies Act, 2013.
(g) Impairment of Assets:
At each balance sheet date, the Company assesses whether there is any indication that an asset may be
impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying
amount of the asset exceeds its recoverable amount, an impairment loss is recognized in the statement of
profit and loss to the extent the carrying amount exceeds the recoverable amount.
(h) Inventory:
Company value its inventory on Cost or Net realizable Value, which ever is lower. Cost of inventories
comprises of purchase cost and other cost incurred in bringing inventories to their present location and
condition
(i) Taxes on income:
Income taxes are accounted for in accordance with Accounting Standard 22 on Accounting for Taxes on
Income. Tax expense comprises of both current and deferred tax. Deferred tax assets and liabilities are
recognized, subject to 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 and are measured using tax rates enacted or substantively enacted as at
the Balance Sheet date. The carrying amount of deferred tax assets and liabilities are reviewed at each
Balance Sheet date. Deferred Tax Asset on carry forward losses and unabsorbed depreciation, if any, are
recognized when it is virtually certain that there will be future taxable profit.
(j) Employee Benefits:
(i) Short term employee benefits are recognized as an expense at the undiscounted amount in the Profit and
loss account of the period in which the related services is rendered.
(ii) Long Term Employee benefits are recognised as and expenses as per the valuation of Actuarial and other
Professional for the Period in which such expenses are related.
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