Accounting Policies of Centerac Technologies Ltd. Company

Mar 31, 2024

a) Basis of Preparation

The Financial Statements of the Company have been prepared in accordance with Indian Accounting
Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 as amended and
notified under Section 133 of the Companies Act 2013 (the ''Act'') and other relevant provisions of
the Act. These Financial Statements are prepared on an accrual basis under the historical cost
convention or amortised cost, except for certain financial assets and liabilities that are measured at
fair value as required by relevant Ind AS.

All assets and liabilities have been classified as current and non-current as per company''s normal
operating cycle. The company has considered an operating cycle of 12 months based on nature of
services rendered and time elapsed between deployment of resources and realization in cash and
cash equivalents of the consideration for such services rendered. The statement of cash flows has
been prepared under Indirect Method.Thesestandalone financial statements have been prepared in
Indian Rupee which is the functional currency of the Company.

b) Use of Estimates

The preparation of these standalone financial statements in conformity with the recognition and
measurement principles of IND AS requires the management of the company to make estimates and
assumptions that affect the reported balances of assets and liabilities, disclosure of contingent
liabilities as at the date of the financial statements and the reported amounts of income and
expense for the period presented.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which estimates are revised and future periods are
affected.

c) Revenue recognition

The company provides Information Technology Support service and recognizes revenue only when
the Company satisfies performance obligation by transferring promised goods or services to the
customer at consideration which the Company is expected to be entitled to in exchange for those
goods or services.

Interest income is recognised on a time proportion basis taking into account the amount outstanding
and the applicable interest rates. Interest income from a financial asset is recognized when it is
probable that the economic benefits will flow to the Company and the amount of income can be
measured reliably. Interest income from a financial asset is recognized using the effective interest
rate (EIR), which is the rate that exactly discounts estimated future cash receipts through the
expected life of the financial asset to that asset''s net carrying amount on initial recognition.

Dividend Income is recognised when the right to receive the payment is established. Incomes from
investments are accounted on an accrual basis.

d) Property Plant & Equipment

Property plant and equipment are stated at cost comprising of purchase price and any initial directly
attributable cost of bringing the asset to its working condition for its intended use less accumulated
depreciation (other than freehold Land ) and impairment loss if any The carrying amount of an item
of Property Plant & Equipment is derecognised upon disposal or when no future economic benefit is
expected to arise from its continued use.Any gain or loss arising on the derecognition of an item of
Property Plant & Equipment is determined as the difference between the net disposal proceeds and
the carrying amount of the item and is recognised in Statement of Profit and Loss.Intangible assets
are stated at cost less accumulated amortisation and accumulated Impairment loss, if any.
Intangible assets are amortised on a straight-line basis over the period of its economic useful life.

e) Depreciation

Depreciation on Property, Plant and Equipment (other than intangible assets) is provided on the
"Straight Line Method" over the useful lives of assets as prescribed under Part C of Schedule II of the
Companies Act, 2013. The estimated useful life and residual values are reviewed at the end of each
reporting period with the effect of any change in estimate accounted for on a prospective basis.

f) Impairment of Non-Financial Assets

The Carrying value of assets/cash generating units at each Balancesheet date are reviewed for
impairment.If any indication of impairment exists,the recoverable amount of such assets is
estimated and impairment is recognized if the carrying amount of these assets exceeds their
recoverable amount.The recoverable amount is the greater of the net selling price and their value in

use .Value in use is arrived by discounting the future cash flows to their present value based on
appropriate discount factor.When there is an indication that an impairment loss recognized for an
asset in earlier accounting periods no longer exists or may have decreased such reversal of
impairment loss is recognized in the statement of Profit and Loss.

g) Financial Assets Financial Liabilities and equity instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the
contractual provisions of the instruments.

Financial assets and financial 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 assets or financial liabilities.

The Company derecognizes a financial asset only when the contractual rights to the cash flows from
the financial asset expire or when the Company transfers its contractual rights to receive the cash
flows of the financial asset and substantially all the risks and rewards of ownership of the financial
asset are transferred to another entity.

The Company derecognizes a financial liability when its contractual obligations are discharged or
cancelled or expired. The Company also derecognizes a financial liability when its terms are modified
and the cash flows under the modified terms are substantially different.

h) Classification and Subsequent Measurement: Financial Assets:

The Company classifies financial assets as subsequently measured at amortised cost, fair value
through other comprehensive income ("FVOCI") or fair value through profit or loss ("FVTPL") on the
basis of following:

1) the entity''s business model for managing the financial assets; and

2) the contractual cash flow characteristics of the financial assets.

i) Financial Assets at Amortised Costs:

A financial asset is subsequently measured at amortized cost if these financial assets are held within
a business whose objective is to hold financial assets in order to collect contractual cash flows,
andthe contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.

j) Financial Assets at Fair Value through Other Comprehensive Income:

A financial asset is 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
flowson specified dates that are solely payments of principal and interest on the principal amount
outstanding and 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.

k) Financial Assets at Fair Value through Profit or Loss:

Financial assets are measured at Fair value through Profit & Loss unless they are measured at
amortised cost or at Fair value through other comprehensive income.

The transaction cost directly attributable to the acquisition of financial asset and liability at fair value
through profit or loss are immediately recognized in the statement of profit and loss

l) Classification and Subsequent Measurement: Financial Liabilities:

Financial liabilities are classified as either financial liabilities at FVTPL or ''other financial liabilities''.

m) Financial Liabilities at FVTPL:

Financial liabilities are classified as at FVTPL when the financial liability is held for trading or are
designated upon initial recognition as FVTPL. Gains or Losses on liabilities held for trading are
4recognized in the Statement of Profit and Loss.

n) Other Financial Liabilities:

Other financial liabilities are measured at amortised cost using the effective interest method. During
the Financial Year 2022-23, the Company has issued 5,00,000 5% Optionally Convertible Debentures
("OCD") of FV 10/- each and the same had been accounted in the Books of Accounts using split
accounting as prescribed underapplicable Ind AS by splitting the respective Equity and Debt
Components of theOCDs. The said Equity and Debt Components of the OCDs were reflecting under
Other Equity and Unsecured Loans, respectively, in the Financial Statements for the Financial Year
2022-23.

As per the clarification provided by the management, during the Current Financial Year 2023-24, the
Company has received the consent letters from the allottees of OCDs for availing the option for
redemption of Debentures on completion of 2 years on 06/04/2024 instead of conversion of the OCDs
into Equity Shares. Pursuant to the said consent from the allottees, the Board of Directors vide its
Resolution dated 26/10/2023, approved the restructuring of the OCDs to Non-Convertible Debentures

due for redemption on 06/04/2024. Necessary adjustments entries to close the OCDs and transfer the
amounts to Non-Convertible Debentures Account have been passed in the Books of Accounts.

The NCDs were not due for redemption as on 31/03/2024. However, the tenure expired on
06/04/2024 and as on date of signing the Financial Statements, the NCDs were not redeemed.

o) Equity Instruments:

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

p) Impairment of Financial Assets:

The Company recognizes loss allowance using expected credit loss model for financial assets which
are measured at amortised cost and FVTOCI debt instruments, if any. Expected credit losses are
weighted average of credit losses with the respective risks of default occurring as the weights. Credit
loss is the difference between all contractual cash flows that are due to the Company in accordance
with the contract and all the cash flows that the Company expects to receive, discounted at original
effective rate of interest.

For Trade Receivables, in view of the Company''s credit policy and past history of not so significant
default in Trade Receivables, instead of 5recognizing allowance for expected credit loss based on
provision matrix, which uses an estimated default rate, the Company makes provision for doubtful
debts based on specific identification. The Company continuously monitors defaults of customers
and other counter parties and makes necessary adjustments for loss allowance, if required.

q) Foreign Currency Transactions

Transactions denominated in foreign currencies is normally recorded at the exchange rate prevailing
on the date of transaction. Monetary items denominated in foreign currencies at the year end are
restated at the year-end rates.

Non-monetary items, if any, that are measured at historical cost denominated in a foreign currency
are translated using the exchange rate as at the date of initial transaction.

Exchange differences on monetary items are recognised in profit or loss in the period in which they
arise.

r) Employee Benefits
Short term employee benefits

All employee benefits payable wholly within twelve months of rendering service are classified as
short-term employee benefits. Benefits such as salary, wages etc. are accounted for in the year in
which the related services are rendered by the employees.

Long-term employee benefits

Defined Contribution Plan:

Contributions to Defined contribution plans are recognized as expense when employees have
rendered services entitling them to such benefits.

Defined benefit plan

For Defined benefit plans the cost of providing benefits is determined using the Projected Unit Credit
Method with actuarial valuations being carried out at each Balance Sheet date. Remeasurement,
comprising actuarial gains and losses is reflectedimmediately in the Balance Sheet with a charge or
credit to retained earnings throughOther Comprehensive Income (OCI). Past service cost is
recognised immediately forboth vested and the non-vested portion. The retirement benefit
obligation recognised in the BalanceSheet represents the present value of the defined benefit
obligation.

s) Fair Value measurements of Financial Instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot
be measured based on quoted prices in active markets (Net Assets Value in case of units of Mutual
Funds), their fair value is measured using valuation techniques including the Discounted Cash Flow
(DCF) model. The inputs to these models are taken from observable markets where possible, but
where this is not feasible, a degree of judgement is required in establishing fair values. Judgements
include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in
assumptions about these factors could affect the reported fair value of financial instruments.

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Mar 31, 2011

1. BASIS FOR PREPARATION OF FINANCIAL STATEMENTS:

The Financial Statements are prepared in accordance with the Accounting Principles generally accepted in India and comply with the Accounting Standards specified by the Institute of Chartered Accountants of India (ICAI) and the relevant provisions of the company''s Act, 1956.

2. METHOD OF ACCOUNTING

The Financial Statements are based on historical costs and are prepared on Accrual basis except for provision for Retirement Benefits and where impairment is made.

3. FIXED ASSETS

All the Fixed Assets are capitalised at cost of acquisition and installation which includes taxes, duties (net of tax credits as applicable) and other identifiable direct expenses. Interest on borrowed funds attributable to the qualifying assets upto the

Such Fixed Assets except freehold land have been valued at cost less depreciation.

Impairment Loss is provided to the extent carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an asset''s net selling price and its value in use. Vaiue in use is the present value of estimated cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Net Selling Price is the amount obtainable from a sale of an asset in an arm''s length transaction between knowledgeable, willing parties, less the cost of disposal.

4. DEPRECIATION

Except for items on which 100% depreciation rates are applicable, depreciation is provided on Straight Line Method for the period of use of the assets in the manner and at the rates prescribed in Schedule XIV of the Companies Act, 1956.

5. INVESTMENTS

Investments, being long term, are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is not temporary in the opinion of the management.

Investments are capitalized at cost plus expenses by applying specific identifications identification method.

6. VALUATION OF INVENTORIES :

Traded Goods are valued at lower of the cost and net realisable value.

Due allowance is estimated and made for defective and obsolete items, wherever considered necessary.

7. RORROWING COST :

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to the Profit and Loss Account in the year in which they are incurred.

8. FOREIGN CURRENCY TRANSACTIONS:

a) Income and expenses in foreign currencies are recorded at the exchange rates prevailing on the date of the transactions.

b) Foreign Currency monetary assets and liabilities are translated at the exchange rates prevailing on the Balance Sheet date.

c) In respect of transactions covered by forward exchange contracts, the difference between the forward rate and the exchange rate on the date of the transaction is recognised as income or expense over the life of the contract Any profit or loss arising on cancellation or renewal of such a forward exchange contract is recognised as income or expense for the period.

d) Transactions not covered by forward contracts and outstanding at the year end are translated at exchange rates prevailing at the year end and the profit / loss so determined is recognized in the Profit and Loss Account.

9 AMORTISATION OF INTANGIBLE ASSETS :

Intangible Assets are stated at cost less accumulated amortisation. Intangible Assets are amortised over estimated useful life.

10. TAXATION :

a Provision for current income-tax is computed as per Total Income'' returnable under the Income-tax Act, 1961 taking into account available deductions and exemptions.

b In accordance with Accounting Standard 22 - Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India, the Deferred tax is recognized for all timing differences being the differences between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods.

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Mar 31, 2010

1 BASIS FOR PREPARATION OF FINANCIAL STATEMENTS:

The Financial Statements are prepared in accordance with the Accounting Principles generally accepted in India and comply with the Accounting Standards specified by the Institute of Chartered Accountants of India (ICAI) and the relevant provisions of the Companies Act, 1956

2 METHOD OF ACCOUNTING :

The Financial Statements are based on historical costs and are prepared on Accrual basis except for provision for Retirement Benefits and where impairment is made.

3. FIXED ASSETS:

All the Fixed Assets are capitalised at cost of acquisition and installation which includes taxes, duties (net of tax credits as applicable) and other identifiable direct expenses. Interest on borrowed funds attributable to the qualifying assets upto the date such assets are put to use, is included in the cost.

Such Fixed Assets except freehold land have been valued at cost less depreciation. Freehold Land has been shown at its Original Cost.

Impairment Loss is provided to the extent carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an assets net selling price and its value in use. Value in use is the present value of estimated cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Net Selling Price is the amount obtainable from a sale of an asset in an arms length transaction between knowledgeable, willing parties, less the cast of disposal.

4 DEPRECIATION :

Except for items on which 100% depreciation rates are applicable, depreciation is provided on Straight Line Method for the period of use of the assets in the manner and at the rates prescribed in Schedule XIV of the Companies Act, 1956.

5 INVESTMENTS :

Investments, being long term, are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is not temporary in the opinion of the management.

Investments are capitalized at cost plus expenses by applyir specific identification method.

6 VALUATION OF INVENTORIES :

Traded Goods are valued at tower of the cast and reslsioc value.

Due allowance is estimated and made for defective and obsolete items, wherever considered necessary.

7. BORROWING COST:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to the Profit and Loss Account in the year in which they are incurred.

8. FOREIGN CURRENCY TRANSACTIONS:

a) Income and expenses in foreign currencies are recorded at the exchange rates prevailing on the date of the transactions.

b) Foreign Currency monetary assets and liabilities are translated at the exchange rates prevailing on the Balance Sheet date.

c) In respect of transactions covered by forward exchange contracts, the difference between the forward rate and the exchange rate on the date of the transaction is recognised as income or expense over the life of the contract. Any profit or loss arising on cancellation or renewal of such a forward exchange contract is recognised as income or expense for the period.

d) Transactions not covered by forward contracts and outstanding at the year end are translated at exchange rates prevailing at the year end and the profit / loss-so determined is recognized in the Profit and Loss Account.

9 AMORTISATION OF INTANGIBLE ASSETS :

Intangible Assets are stated at cost less accumulated amortisation. Intangible Assets are amortised over estimated useful life.

10. TAXATION :

a. Provision for current income-tax is computed as per Total Income returnable under the Income-tax Act, 1961 taking into account available deductions and exemptions.

b. In accordance with Accounting Standard 22 - Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India, the Deferred tax is recognized for all timing differences being the differences bet weeeen taxable income and accounting income that originates in one period and are apable of reversal in one or more subsequent periods.