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Accounting Policies of Centron Industrial Alliance Ltd. Company

Mar 31, 2015

1.1 BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 2013. The accounts of the company are prepared under the historical cost convention and in accordance with the applicable accounting standards. For reorganization of Profit & Loss, mercantile system of accounting is followed except Rebate & Discount on Sales/Purchases, where accounting is done on payment/ receipt basis..

1.2 USE OF ESTIMATES :

The Preparation of financial Statements in conformity with generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

1.3 INVENTORIES :

Inventories are valued on the following basis: Traded Goods : At Cost Shares : At Cost

1.4 DEPRECIATION AND AMORTISATION :

Depreciation on Fixed Assets has been provided on Straight Line Method based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. Depreciation on additions is charged for full year irrespective of period of use and no depreciation has been charged on deletions.

1.5 REVENUE RECOGNITION :

Sale of goods

Sales are recognized, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude sales tax and value added tax.

Export incentives receivable are accrued for when the right to receive the credit is established and there is no significant uncertainty regarding the ultimate collection of export proceeds.

1.6 OTHER INCOME

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

1.7 Tangible Assets :

Fixed assets, are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental expenses incurred up to that date. Exchange differences arising on restatement / settlement of long-term foreign currency borrowings relating to acquisition of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over the remaining useful life of such assets. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalized and depreciated over the useful life of the principal item of the relevant assets. Subsequent expenditure relating to fixed assets is capitalized only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

1.8 FOREIGN CURRENCY TRANSACTIONS AND TRANSLATIONS :

Transactions denominated in foreign currency are recorded at the exchange rate prevailing on the date of transactions. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the Profit and Loss account of the year.

Monetary assets and liabilities in foreign currency, which are outstanding as at the year - end, are translated at the closing exchange rate and the resultant exchange differences are recognized in the profit and loss account.

The premium or the discount on forward exchange contracts not relating to firm commitments or highly probable forecast transactions and not intended for trading or speculation purpose is amortized as expense or income over the life of the contract.

1.9 INVESTMENTS :

Long-term investments (excluding investment properties), are carried individually at cost less provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at the lower of cost and fair value. Cost of investments include acquisition charges such as brokerage, fees and duties.

Investment properties are carried individually at cost less accumulated depreciation and impairment, if any. Investment properties are capitalized and depreciated (where applicable) in accordance with the policy stated for Tangible Fixed Assets.

1.10EMPLOYEE BENEFITS :

Employee benefits include provident fund, superannuation fund, gratuity fund, compensated absences, long service awards and post-employment medical benefits. Defined contribution plans

The Company's contribution to provident fund and superannuation fund are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made.

1.11BORROWING COSTS :

Borrowing costs include interest, amortization of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilized for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset upto the date of capitalization of such asset is added to the cost of the assets. Capitalization of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

1.12EARNINGS PER SHARE :

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate.

1.13TAXES ON INCOME :

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognized for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realized. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their reliability.

Current and deferred tax relating to items directly recognized in equity are recognized in equity and not in the Statement of Profit and Loss.

1.14 IMPAIRMENT OF ASSETS :

The carrying values of assets / cash generating units at each Balance Sheet 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 at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is 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, except in case of revalued assets.

1.15 PROVISIONS AND CONTINGENCIES :

A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

1.16 RESEARCH AND DEVELOPMENT :

Expenditure on research phase is recognized as an expense when it is incurred. Expenditure on development phase is recognized as an intangible asset if it is likely to generate probable future economic benefits.

1.17 PROVISION FOR CURRENT AND DEFERRED TAX :

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized only if there is virtual certainty that there will be sufficient future taxable income available to realize such assets. Deferred tax assets are recognized for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realized. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their reliability. Current and deferred tax relating to items directly recognized in equity are recognized in equity and not in

c) The Company has one only class of shares referred to as equity shares having a par value of Re.1/-. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amount. The distribution will be proportional to the number of equity shares held by the shareholders


Mar 31, 2014

I. BASIS OF ACCOUNTING :

The financial statements are prepared in conformity with Generally Accepted Accounting Principles in India, the applicable Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 and the other relevant provisions of the Companies Act, 1956. The Accounts have been prepared on the basis of historical cost. The company follows the mercantile system of accounting for recognizing income and expenditure on accrual basis.

II. USE OF ESTIMATES :

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Difference between the actual and estimates are recognized in the period in which the results are known / materialized.

III. INVENTORIES :

Inventories are valued at the lower of cost ( on FIFO/ weighted average basis) and the net realisable value after providing for obsolescence and other losses, considered necessary.

IV. REVENUE RECOGNITION :

Income and Expenditure are recognized and accounted on accrual basis.

V. FIXED ASSETS : Tangible Assets :

Fixed Assets are recorded at cost of acquisition or construction / erection including taxes, duties, freight and other incidental expenses related to acquisition and installation. Interest incurred during construction period on borrowings to finance qualifying fixed assets is capitalized. Fixed Assets which are not in active use are scrapped and written off.

VI. DEPRECIATION :

Depreciation on all fixed assets has been provided on straight line method. The rates at which depreciation is provided are as prescribed by Schedule XIV to the Companies Act 1956.

VII . REVENUE RECOGNITION Sale of goods

Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude Sales tax and value added tax.

VIII. INVESTMENTS :

Investments are all long-term and are stated at cost of acquisition and related expenses.

IX. TAXATION

Current Tax is determined as the amount of tax payable to the taxation authorities in respect of taxable income for the period.

c) The Company has one only class of shares referred to as equity shares having a par value of Re.1/-. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amount. The distribution will be proportional to the number of equity shares held by the shareholders


Mar 31, 2013

I. BASIS OF ACCOUNTING :

The financial statements are prepared in conformity with Generally Accepted Accounting Principles in India, the applicable Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 and the other relevant provision of the Companies Act, 1956. The Accounts have been prepared on the basis of historical cost. The company follows the mercantile system of accounting for recognizing income and expenditure on accrual basis.

II. USE OF ESTIMATES :

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Difference between the actual and estimates are recognized in the period in which the results are known / materialized.

III. INVENTORIES :

Inventories are valued at the lower of cost ( on FIFO/ weighted average basis) and the net realisable value after providing for obsolescence and other losses, considered necessary.

IV. REVENUE RECOGNITION :

Income and Expenditure are recognized and accounted on accrual basis.

V. FIXED ASSETS :

Tangible Assets :

Fixed Assets are recorded at cost of acquisition or construction / erection including taxes, duties, freight and other incidental expenses related to acquisition and installation. Interest incurred during construction period on borrowings to finance qualifying fixed assets is capitalized. Fixed Assets which are not in active use are scrapped and written off.

VI. DEPRECIATION :

W.e.f. F. Y. 2011-12 Depreciation on all fixed assets has been provided on straight line method. The rates at which depreciation is provided are as prescribed by Schedule XIV to the Companies Act 1956.

VII . REVENUE RECOGNITION Sale of goods

Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude Sales tax and value added tax.

VIII. INVESTMENTS :

Investments are all long-term and are stated at cost of acquisition and related expenses.

IX. TAXATION

Current Tax is determined as the amount of tax payable to the taxation authorities in respect of taxable income for the period.


Mar 31, 2012

I. BASIS OF ACCOUNTING :

The financial statements are prepared in conformity with Generally Accepted Accounting Principles in India, the applicable Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 and the other relevant provision of the Companies Act, 1956. The Accounts have been prepared on the basis of historical cost. The company follows the mercantile system of accounting for recognizing income and expenditure on accrual basis.

II. USE OF ESTIMATES :

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Difference between the actual and estimates are recognized in the period in which the results are known / materialized.

III. REVENUE RECOGNITION :

Income and Expenditure are recognized and accounted on accrual basis.

IV. FIXED ASSETS :

Tangible Assets :

Fixed Assets are recorded at cost of acquisition or construction / erection including taxes, duties, freight and other incidental expenses related to acquisition and installation. Interest incurred during construction period on borrowings to finance qualifying fixed assets is capitalized. Fixed Assets which are not in active use are scrapped and written off.

V. DEPRECIATION :

W.e.f. F. Y. 2011-12 Depreciation on all fixed assets has been provided on written down method. The rates at which depreciation is provided are as prescribed by Schedule XIV to the Companies Act 1956.

VI. INVESTMENTS :

Investments are all long-term and are stated at cost of acquisition and related expenses.

VII. TAXATION

Current Tax is determined as the amount of tax payable to the taxation authorities in respect of taxable income for the period.

c) The Company has one only class of shares referred to as equity shares having a par value of Rs.10/-. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amount. The distribution will be proportional to the number of equity shares held by the shareholders.








Mar 31, 2010

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared on the historical cost convention basis in accordance with the generally accepted accounting principles and the Accounting standards referred to in Section 211 (3C) of the Companies Act, 1956 except as stated in Para 4 (vi) (d) of the auditors report.

2. REVENUE RECOGNITION

Income and Expenditure are recognized and accounted on accrual basis.

3. FIXED ASSETS

(i) Fixed assets are stated at cost of acquisition or construction. (ii) Depreciation is provided for :

(a) In respect of office equipment on straight line method at the rates specified in schedule XIV to the Companies Act, 1956.

(b) In respect of other assets as on 31-3-2010, on written down value method at the rates and on the basis specified in schedule XIV to the Companies Act, 1956. In view of Amendment to the schedule XIV to the Companies Act, 1956 the Company has applied revised rates of depreciation on written down value as on 31.03.93 and also on additions during the year. Items individually costing Rs.5000/- or less acquired during the year and written down value of such items acquired in earlier years have been depreciated at 100% in terms of the said Amendment to schedule XIV.

4. INVESTMENTS

Investments are stated at cost of acquisition.

5. VALUATION OF INVENTORIES

(i) Steel scrap is valued at net estimated realizable value.

(ii) There are no other items of inventory as all have been written off as on 31-03-2010.

6. FOREIGN EXCHANGE FLUCTUATIONS

Liabilities on account of purchase in foreign currency , if any, outstanding at the close of the year are expressed in Indian Currency at the appropriate Rate of Exchange prevailing at the close Of the year. The loss on such conversion if any is charged to Revenue.

7. EXPORT BENEFITS

The Company accounts for estimated benefit, if any, on account of Exports in the year of receipt of such benefit.

8. RETIREMENT BENEFITS

Companys contribution paid/payable during the year towards employees provident fund is charged to the Profit and Loss Account. Gratuity payable for the year is calculated and charged to Profit & Loss Account on the basis of internal estimates of management.

9. ENCASHMENT OF PL

Company is accounting for encashment of Privilege Leave on Payment basis.

 
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