Accounting Policies of Apex Buildsys Ltd. Company

Mar 31, 2015

The financial statements have been prepared in accordance with applicable accounting standards issued by The Institute of Chartered Accountants of India and the relevant requirements of the Companies Act, 2013. Significant accounting policies applied in preparing and presenting these financial statements are set out below:

1.1 Basis of Accounting

The financial statements are prepared on a going concern basis under the historical cost convention on the accrual basis of accounting, in accordance with the Indian Generally Accepted Accounting Principles (GAAP) and comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014, to the extent applicable, as adopted consistently by the Company. The financial statements have been prepared in Indian rupees.

1.2 Revenue Recognition

i. Revenue from sale of goods is recognized when all significant risks and rewards of ownership are transferred to the buyer (usually at the point of dispatch to customers). Sales are inclusive of excise duty (whereable applicable) and exclusive of sales tax and sales return. Service charges are accounted for on accrual basis.

ii. Revenue from contracts is recognised on the percentage completion method based on billing schedules agreed with the client on a progressive completion basis. Material & resources supplied by client are included as cost of construction and as revenue at market price. Price escalation claims and additional claims including those under arbitration are recognised as revenue when they are reasonably ascertained.

iii. Revenue comprises of income from entertainment inclusive of Cineplex operation

iv. Dividend income is considered on receipt basis.

v. Other Incomes are accrued as earned except where the receipt of income is uncertain.

1.3 Fixed Assets

i) Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. Cost includes any borrowing costs directly attributable to the acquisition / construction of Fixed assets that necessarily take a substantial period of time to get ready for their intended use.

ii) Exchange difference arising on account of liabilities incurred for acquisition or construction of fixed assets is adjusted to the carrying amount of related Fixed Assets.

1.4 Capital Work-in-Progress

Costs of assets not ready for use and advances paid towards the acquisition of fixed assets before the year-end and

expenditure during construction period, that is directly or indirectly related to construction, including borrowing costs are included under Capital Work-in-Progress.

1.5 Depreciation

i) Depreciation on fixed assets other than intangible assets is provided on straight-line basis over the estimated useful life of each asset as determined by the management. Pursuant to this policy, depreciation is provided at the following rates which are in line with the corresponding rates prescribed in Schedule II of the Companies Act, 2013:

Assets Category Useful life of Asset

1 April 2014 onwards Prior to 1 April 2014

DATA PROCESSING MACHINES 3 Years (31.67%) 16.21% (COMPUTERS)

OFFICE EQUIPMENT 3 Years (19.00%) 4.75%

FURNITURE AND FIXTURE 10 Years (9.50%) 6.33%

VEHICLE 8 Years (11.88%) 9.50%

Factory Building 30 Years (3.17%) 3.34%

PLANT & MACHINERY 15 Years (6.33%) 4.75%

The appropriateness of depreciation/ amortisation is reviewed by the management in each financial year.

Losses arising from retirement or gains or losses arising from disposal of fixed assets which are carried at cost are recognised in the Statement of Profit and Loss.

ii) Costs of Lease hold land is amortized over lease term on a straight - line basis.

1.6 Impairment

Fixed Assets are tested for impairment if there is any indication of their possible impairment. An impairment loss is recognized where the carrying amount of a fixed asset (or cash generating unit) exceeds its recoverable amount, i.e. higher of value in use and net selling price. Impairment loss recognized in one period can get reversed fully or partly in a subsequent year.

1.7 Investments

Investments are classified into long-term investments and current investments. Long-term investments are stated at cost. Provision for diminution in the value of a long-term investments is made if such diminution is other than temporary. Current investments are carried at the lower of cost and fair value and provisions are made to recognize the decline in the carrying value.

1.8 Inventories

i) Raw materials, work in process, finished goods, packing material and stores are valued at the lower of cost and net realizable value.

ii) Cost of inventories of items that are not ordinarily interchangeable or are meant for specific projects is assigned by specific identification of their individual cost. Cost of other inventories is ascertained on the First In First Out Method. In determining the cost of work in process and finished goods, fixed production overheads are allocated on the basis of normal capacity of production facilities.

1.9 Employees Benefits

i) Contribution to Provident Fund, a defined contribution plan, is accounted for on accrual basis. The Company continues to make contributions to provident fund plan administered by the Government of India.

ii) The liability of the company for gratuity, a defined retirement benefit plan, is determined by actuarial valuation carried out by an independent actuary.

1.10 Foreign Exchange Transactions

Transactions in foreign currency are recorded at the exchange rates prevailing at the date of the transaction. In case of liabilities incurred for the acquisition or construction of fixed assets, the loss or gain on restatement of liabilities (at the rates prevailing at the year end) or on settlement is included in the carrying amount of the related fixed assets. In the case of other foreign currency denominated monetary assets and liabilities, the loss or gain arising as above is charged or credited to the profit & loss account of the year of restatement /settlement.

1.11 Income Tax

i) Income taxes are computed using the tax effect accounting method where taxes are accrued in the same period, as the related revenue and expenses to which they relate. The differences that result between profit offered for income tax and the profit before tax as per financial statements are identified and deferred tax assets or deferred tax liabilities are recorded for timing differences, namely differences that originate in one accounting period and are capable of reversal in future. Deferred tax assets and liabilities are measured using tax rates and tax laws enacted or substantively enacted by the balance sheet date.

ii) Deferred tax assets are recognized only if there is reasonable certainty that they will be realized. Should the company have unabsorbed depreciation or carried forward losses under taxation laws, a much stricter test, viz, virtual certainty of realization, is to be applied for recognition of any deferred tax assets. Deferred tax assets are reviewed for the continuing appropriateness of their recognition as assets at each balance sheet date and written down or written-up to reflect the amount that is reasonably /virtually certain (as the case may be) of realization.

1.12 Extraordinary and exceptional items

i) Income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the company are classified as extraordinary items. Specific disclosure of such events/transactions is made in the financial statements. Similarly, any external event beyond the control of the company, significantly impacting income or expense, is also treated as extraordinary item and disclosed as such.

ii) On certain occasions, the size, type or incidence of an item or expense, pertaining to the ordinary activities of the company, is such that its disclosure improves an understanding the performance of the company. Such income or expense is classified as an exceptional item and accordingly disclosed in the notes to accounts.

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Mar 31, 2014

The financial statements have been prepared in accordance with applicable accounting standards issued by The Institute of Chartered Accountants of India and the relevant requirements of the Companies Act, 1956. Significant accounting policies applied in preparing and presenting these financial statements are set out below:

1.1 Basis of Accounting

The Financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under section 211 (3C) of the Companies Act, 1956 ("the Act") (which continue to be applicable in respect of Section 133 of the Companies Act , 2013 ("the 2013 Act") in terms of general circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs ) and relevant provisions of the Act/2013 Act as applicable.

1.2 Revenue Recognition

i. Revenue from sale of goods is recognized when all significant risks and rewards of ownership are transferred to the buyer (usually at the point of dispatch to customers). Sales are inclusive of excise duty (whereable applicable) and exclusive of sales tax and sales return. Service charges are accounted for on accrual basis.

ii. Revenue from contracts is recognised on the percentage completion method based on billing schedules agreed with the client on a progressive completion basis. Material & resources supplied by client are included as cost of construction and as revenue at market price. Price escalation claims and additional claims including those under arbitration are recognised as revenue when they are reasonably ascertained.

iii. Revenue comprises of income from entertainment inclusive of Cineplex operation

iv. Dividend income is considered on receipt basis.

v. Other Incomes are accrued as earned except where the receipt of income is uncertain.

1.3 Fixed Assets

i. Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation . Cost includes any borrowing costs directly attributable to the acquisition / construction of Fixed assets that necessarily take a substantial period of time to get ready for their intended use.

ii. Exchange difference arising on account of liabilities incurred for acquisition or construction of fixed assets is adjusted to the carrying amount of related Fixed Assets.

1.4 Capital Work-in-Progress

Costs of assets not ready for use and advances paid towards the acquisition of fixed assets before the year-end and expenditure during construction period, that is directly or indirectly related to construction, including borrowing costs are included under Capital Work-in-Progress.

1.5 Depreciation

i) Depreciation on Building , Plant and Machinery and Other Fixed assets is provided as per straight line method in accordance with the rates specified in Schedule XIV of the Companies Act, 1956. Depreciation is charged on pro- rata basis for assets purchased / sold during the year.

ii) Costs of Lease hold land is amortized over lease term on a straight - line basis.

1.6 Impairment

Fixed Assets are tested for impairment if there is any indication of their possible impairment. An impairment loss is recognized where the carrying amount of a fixed asset (or cash generating unit) exceeds its recoverable amount, i.e. higher of value in use and net selling price. Impairment loss recognized in one period can get reversed fully or partly in a subsequent year.

1.7 Investments

Investments are classified into long-term investments and current investments. Long-term investments are stated at cost. Provision for diminution in the value of a long-term investments is made if such diminution is other than temporary. Current investments are carried at the lower of cost and fair value and provisions are made to recognize the decline in the carrying value.

1.8 Inventories

i) Raw materials, work in process, finished goods, packing material and stores are valued at the lower of cost and net realizable value.

ii) Cost of inventories of items that are not ordinarily interchangeable or are meant for specific projects is assigned by specific identification of their individual cost. Cost of other inventories is ascertained on the First In First Out Method. In determining the cost of work in process and finished goods, fixed production overheads are allocated on the basis of normal capacity of production facilities.

1.9 Employees Benefits

i) Contribution to Provident Fund, a defined contribution plan, is accounted for on accrual basis. The Company continues to make contributions to provident fund plan administered by the Government of India.

ii) The liability of the company for gratuity, a defined retirement benefit plan, is determined by actuarial valuation carried out by an independent actuary.

1.10 Foreign Exchange Transactions

Transactions in foreign currency are recorded at the exchange rates prevailing at the date of the transaction. In case of liabilities incurred for the acquisition or construction of fixed assets, the loss or gain on restatement of liabilities (at the rates prevailing at the year end) or on settlement is included in the carrying amount of the related fixed assets. In the case of other foreign currency denominated monetary assets and liabilities, the loss or gain arising as above is charged or credited to the profit & loss account of the year of restatement /settlement.

1.11 Income Tax

i) Income taxes are computed using the tax effect accounting method where taxes are accrued in the same period, as the related revenue and expenses to which they relate. The differences that result between profit offered for income tax and the profit before tax as per financial statements are identified and deferred tax assets or deferred tax liabilities are recorded for timing differences, namely differences that originate in one accounting period and are capable of reversal in future. Deferred tax assets and liabilities are measured using tax rates and tax laws enacted or substantively enacted by the balance sheet date.

ii) Deferred tax assets are recognized only if there is reasonable certainty that they will be realized. Should the company have unabsorbed depreciation or carried forward losses under taxation laws, a much stricter test, viz, virtual certainty of realization, is to be applied for recognition of any deferred tax assets. Deferred tax assets are reviewed for the continuing appropriateness of their recognition as assets at each balance sheet date and written down or written-up to reflect the amount that is reasonably /virtually certain (as the case may be) of realization.

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Mar 31, 2012

The financial statements have been prepared in accordance with applicable accounting standards issued by the Institute of Chartered Accountants of India and the relevant presentational requirements of the Companies Act, 1956. A summary of important accounting policies applied are set out below;

A.1 BASIS OF ACCOUNTING

Financial statements are prepared under historical cost convention and on the basis of a going concern.

A.2 REVENUE RECOGNITION

i) Revenue comprises of income from entertainment inclusive of Cineplex operation and other Income.

ii) Dividend income is considered on receipt basis.

iii) Revenue from sale of goods is recognized when all significant risks and rewards of ownership of goods are transferred to the buyer.

A.3 FIXED ASSETS

Fixed assets are recorded at cost of acquisition. They are stated at historical cost less accumulated depreciation.

A.4 DEPRECIATION

Depreciation has been provided as per straight line method at the rates prescribed in Schedule XIV of the Companies Act, 1956. Depreciation on addition / disposal during the year has been provided on prorata basis.

A.5 IMPAIRMENT

Fixed Assets are tested for impairment if there is any indication of their possible impairment. An impairment loss is recognized where the carrying amount of a fixed asset (or cash generating unit) exceeds its recoverable amount, i.e. higher of value in use and net selling price. Impairment loss recognized in one year can get reversed fully or partly in a subsequent year.

A.6 INVENTORIES

i) Value of inventories of items that are not ordinarily interchangeable or are meant for specific projects is assigned by specific identification of their individual cost and net realizable value.

ii) Inventories are valued at cost or Net Realizable Value whichever is lower on FIFO basis.

A.7 INVESTMENTS

Investments are classified into non current investments and current investments. Non current investments are stated at cost. Provision for diminution in the value of a non current investment is made if such diminution is other than temporary. Current investments are carried at the lower of cost and fair value and provisions are made to recognize the decline in the carrying value.

A.8 EMPLOYEE BENEFITS

i) Contribution to Provident Fund is accounted for on accrual basis. The company continues to make Contribution to Provident Fund plan administered by the government of India.

ii) Gratuity and leave encashment are charged to profit & loss account through provision for accruing liabilities based on assumptions that such benefits are payable to eligible employees at the end of accounting year.

A.9 FOREIGN EXCHANGE TRANSACTION

Transactions in foreign currency are recorded at the exchange rates prevailing at the dates of the respective transactions.

A.10 INCOME TAX

Income taxes are computed using the tax effect accounting method where taxes are accrued in the same period, as the related revenue and expenses to which they relate. The differences that exist between profit offered for income tax and the profit before tax as per financial statements are identified and deferred tax assets or deferred tax liabilities are recorded for timing differences, namely, differences that originate in one accounting period and are capable of reversal in future. Deferred tax assets and liabilities are measured using tax rates and tax laws enacted or substantively enacted by the balance sheet date.

Deferred tax assets are recognized only if there is reasonable certainty that they will be realized. Should the company have unabsorbed depreciation or carried forward losses under taxation laws, a much stricter test, viz, virtual certainty of realisation, is to be applied for recognition of any deferred tax assets. Deferred tax assets are reviewed for the continuing appropriateness of their recognition as assets at each balance sheet date and written down or written-up to reflect the amount that is reasonably /virtually certain (as the case may be) of realization.

A.11 Borrowing Cost

Borrowing costs are attributable to the acquisition of qualifying assets are capitalized as part of cost of such assets till such time assets become ready for their intended use. All other borrowing costs are charged to Profit & Loss Account.

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Mar 31, 2010

The financial statements have been prepared in accordance with applicable accounting standards issued by the Institute of Chartered Accountants of India and the relevant presentational requirements of the Companies Act, 1956. A summary of important accounting policies applied are set out below;

1. BASIS OF ACCOUNTING

Financial statements are prepared under historical cost convention and on the basis of a going concern.

2. REVENUE RECOGNITION

i) Revenue comprises of income from entertainment inclusive of Cineplex operation and other Income.

ii) Dividend income is considered on receipt basis.

iii) Revenue from sale of goods is recognized when all significant risks and rewards of ownership of goods are transferred to the buyer.

3. FIXED ASSETS

Fixed assets are recorded at cost of acquisition. They are stated at historical cost less accumulated depreciation.

4. DEPRECIATION

Depreciation has been provided as per straight line method at the rates prescribed in Schedule XIV of the Companies Act, 1956. Depreciation on addition / disposal during the year has been provided on prorata basis.

5. IMPAIRMENT

Fixed Assets are tested for impairment if there is any indication of their possible impairment. An impairment loss is recognized where the carrying amount of a fixed asset (or cash generating unit) exceeds its recoverable amount, i.e. higher of value in use and net selling price. Impairment loss recognized in one year can get reversed fully or partly in a subsequent year.

6. INVENTORIES

i) Inventories are valued at cost or last quoted market prices, whichever is lower.

ii) Value of inventories of items that are not ordinarily interchangeable or are meant for specific projects is assigned by specific identification of their individual cost and net realizable value.

iii) Inventories are valued at cost or Net Realizable Value whichever is lower on FIFO basis

7. INVESTMENTS

Investments are classified into long-term investments and current investments. Long-term investments are stated at cost. Provision for diminution in the value of a long-term investment is made if such diminution is other than temporary. Current investments are carried at the lower of cost and fair value and provisions are made to recognize the decline in the carrying value.

8. EMPLOYEE BENEFITS

i) Contribution to Provident Fund is accounted for on accrual basis. The company continues to make Contribution to Provident Fund plan administered by the government of India.

ii) Gratuity and leave encashment are charged to profit & loss account through provision for accruing liabilities based on assumptions that such benefits are payable to eligible employees at the end of accounting year.

9. FOREIGN EXCHANGE TRANSACTION

Transactions in foreign currency are recorded at the exchange rates prevailing at the dates of the respective transactions.

10. INCOME TAX

Income taxes are computed using the tax effect accounting method where taxes are accrued in the same period, as the related revenue and expenses to which they relate. The differences that exist between profit offered for income tax and the profit before tax as per financial statements are identified and deferred tax assets or deferred tax liabilities are recorded for timing differences, namely, differences that originate in one accounting period and are capable of reversal in future. Deferred tax assets and liabilities are measured using tax rates and tax laws enacted or substantively enacted by the balance sheet date.

Deferred tax assets are recognized only if there is reasonable certainty that they will be realized. Should the company have unabsorbed depreciation or carried forward losses under taxation laws, a much stricter test, viz, virtual certainty of realisation, is to be applied for recognition of any deferred tax assets. Deferred tax assets are reviewed for the continuing appropriateness of their recognition as assets at each balance sheet date and written down or written-up to reflect the amount that is reasonably /virtually certain (as the case may be) of realization.

11. Borrowing Cost

Borrowing costs are attributable to the acquisition of qualifying assets are capitalized as part of cost of such assets till such time assets become ready for their intended use. All other borrowing costs are charged to Profit & Loss Account.