Accounting Policies of Apex Ecotech Ltd. Company

Mar 31, 2025

1 Material accounting policies:

a. Basis of preparation

The financial statements of the company have been
prepared in accordance with the Generally Accepted
Accounting Principles in India (Indian GAAP). The
company has prepared these financial statements to
comply in all material respects with the Companies
(Accounts) Rules 2014 and the relevant provisions of
the Companies Act, 2013. The financial statements
have been prepared on an accrual basis and under
the historical cost convention. The accounting policies
adopted in the preparation of financial statements are
consistent with those of previous year.

b. Basis of Accounting

The financial statements are prepared under the
historical cost convention in accordance with the
Generally Accepted Accounting Principles in India and
the provisions of the Companies Act, 2013.

c. Uses of Estimates

The presentation of financial statements in conformity
with the Generally Accepted Accounting Principles
requires estimates and assumptions to be made that
affect the reported amount of assets and liabilities
(including contingent liabilities) on the date of the
financial statements and the reported amount of
revenues and expenses during the reporting period.
Difference between the actual results and estimates
are recognized in the period in which the results are
known/ materialized.

d. Inventories/Work in Progress/Raw Material

i. Finished goods, goods held for resale and packing
materials are stated at lower of cost and net
realizable value.

ii. Net realizable value is the estimated selling price
in the ordinary course of business, less estimated
costs of completion and to make the sale.

e. Revenue Recognition

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

Sale of Goods: - Revenue is recognized when the
significant risks and rewards of ownership of the goods
have passed to the buyer and is stated net of trade
discounts, returns and GST.

Sale of Services: - Revenue from sale of services is
recognized as the services are rendered based on
agreements/arrangements with customers.

f. Fixed Assets

i. Property, plant & equipment

PPE Fixed assets are stated at cost, less
accumulated depreciation. Cost comprises the
purchase price and any attributable cost of bringing
the asset to its working condition for its intended
use. Borrowing costs relating to acquisition of fixed
assets which takes substantial period of time to get
ready for its intended use are also included to the
extent they relate to the period till such assets are
ready to be put to use.

ii. Intangible Asset

Intangible assets acquired separately are measured
on initial recognition at cost. Following initial
recognition, intangible assets are carried at cost
less accumulated amortization and accumulated
impairment losses, if any. Gains or losses arising
from de-recognition of an intangible asset are
measured as the difference between the net
disposal proceeds and the carrying amount of the
asset and are recognized in the Statement of profit
and loss when the asset is de-recognized.

g. Depreciation and Amortization

Depreciation on Property, Plant and Equipment is
provided on Written Down Value Method (WDV) on the
basis of useful lives of the asset considering the nature,
estimated usage, operating conditions, past history
of replacement anticipated technological changes,
manufacturers'' warranties and maintenance support.

Taking into account these factors, the Company has
decided to retain the useful life hitherto adopted
for various categories of property, plant and
equipments,which might be different from those
prescribed in Schedule II of the Act.

h. Cash Flow Statement

Cash Flows are reported using indirect method, whereby
profit before tax is adjusted for effects of transactions
of non-cash nature and any deferral or accruals of any
past or future cash receipts or payments. The Cash
flows from regular revenue generating, financing and
investing activity of the company are segregated.

i. Deferred Taxes

Tax expense comprises of current and deferred taxes.
Current Income Tax is measured at the amount expected
to be paid to the tax authorities in accordance with the
Indian Income Tax Act. Deferred Income Taxes reflect
the impact of current year timing differences between
taxable income and accounting income for the year and
reversal of timing differences of earlier years.

Deferred Income Tax is measured based on the tax rates
and the tax laws enacted or substantively enacted at the
Balance Sheet date. Deferred tax assets are recognized
only to the extent that there is reasonable certainty
that sufficient future taxable income will be available
against which such deferred tax assets can be realized.
If the Company has unabsorbed depreciation or carry
forward tax losses, deferred tax assets are recognized
only if there is virtual certainty supported by convincing
evidence that such deferred tax assets can be realized
against future taxable profits.

At each Balance Sheet date the Company re-assesses
unrecognized deferred tax assets, if any. It recognizes
unrecognized deferred tax assets to the extent that it
has become reasonably certain or virtually certain, as the
case may be, that sufficient future taxable income will
be available against which such deferred tax assets can
be realized. The carrying amount of deferred tax assets
are reviewed at each balance sheet date. Accordingly
deferred tax asset is created having closing balance of
Rs. 12.20 Lakhs (Rs. 12.05 Lakhs in previous year) on
account effect of WDV of Property, Plant and Equipment,
disallowed items and carried forward of losses.

j. Earnings Per Share

Basic Earnings per Share are calculated by dividing the
net profit or loss for the period attributable to Equity
Shareholders (after deducting preference dividends
and attributable taxes, if any) by the weighted average
number of Equity Shares outstanding during the period.
Partly paid Equity Share, if any is treated as a fraction
of an Equity Share to the extent that they were entitled
to participate in dividends relative to a fully paid Equity
Share during the reporting period. The weighted average
number of Equity Shares outstanding during the period
is adjusted for events of bonus issue, bonus element in
a rights issue to existing shareholders, share split, and
reverse share split (consolidation of shares), if any.