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Accounting Policies of Centerac Technologies Ltd. Company

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.


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.

 
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