1) Corporate Information
Centerac Technologies limited ("the Company") was incorporated on May 13, 1993. The Company is a public company limited by shares. The Company's registered office is at 307, Regent Chambers, Nariman Point, Mumbai-400021, Maharashtra. The company provides Information Technology Support service.
2) Significant Accounting Policya) 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. These standalone 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 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 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, and the 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 53recognized 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 the OCDs. 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 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 due for redemption within 31/03/2025. However, the tenure expired on 06/04/2024 and as on date of signing the Financial Statements, the NCDs were redeemed and transferred to the reserves
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 54 recognizing 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 benefitsDefined 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 reflected immediately in the Balance Sheet with a charge or credit to retained earnings through Other Comprehensive Income (OCI). Past service cost is recognised immediately for both vested and the non-vested portion. The retirement benefit obligation recognised in the Balance Sheet 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 can-not 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.
t) Provisions
The company estimates the provisions that have present obligations as a result of past events and it is probable that outflow of resources will be required to settle the obligations.
These provisions are reviewed at the end of each reporting period and are adjusted to reflect the current best estimates.
u) Contingent Liabilities
The company uses significant judgements to disclose contingent liabilities. Contingent Liabilities are disclosed when there is a possible obligation arising from past events the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made. Contingent Assets are neither recognized nor disclosed in the Financial Statements.
v) Provision for Income Tax and Deferred tax assets
The company uses estimates and judgements based on the relevant rulings in the areas of allocation of revenue cost, allowances and disallowances which is exercised while determining the provision for income tax. A Deferred Tax Asset is recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized. Accordingly the Company exercises its judgement to reassess the carrying amount of deferred tax assets at the end of each reporting period.
w) Earnings Per Share
The basic earnings per share is computed by dividing the net profit / (loss) attributable to the equity shareholders of the company by the weighted average number of equity shares outstanding during the reporting period.
Diluted earnings per share is computed by dividing the net profit / (loss) attributable to the equity shareholders for the year, as adjusted for the effects of potential dilution of equity shares, if any, by the weighted average number of equity and dilutive equity equivalent shares outstanding during the reporting period.
No provision for deferred tax asset is made on account of the business loss and unabsorbed depreciation carried forward under the Income Tax Act. The deferred tax assets have not been recognized as there is no reasonable certainty of sufficient taxable income being available against which such deferred tax assets can be realized.
The company has not made any provision for gratuity payable. There are no other employees who are eligible for Gratuity payment during the year. The liability as per actuarial valuation has not been determined.
The balances in Sundry Debtors and Trade Payables are as per the books of accounts for which the company
has not obtained confirmations from certain parties. The said balances are therefore subject to the confirmations and consequent reconciliation if any.
The company provides Information Technology Support service. Considering the overall nature the management is of the opinion that the entire operation of the company falls under one segment and as such there is no separate reportable segment for the purpose of disclosure as required as per IND AS 108
As per disclosure received from the management there are no contingent liabilities as on 31.03.2025.
3) Other disclosuresA. Details of Benami Property Held
No proceedings have been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder during the financial years ended 31 March 2024 and 31 March 2023.
B. Registration of charges or satisfaction with Registrar of Companies
The Company does not have any charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period.
C. Ultimate beneficiary, if any
The Company has not received any funds from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).
D. Undisclosed income
There are no transactions not recorded in the books of accounts.
E. Wilful defaulter disclosure
The Company has not been declared as wilful defaulter by any bank or financial Institution or other lender during the financial year ended 31 March 2025 and 31 March 2024.
F. Title deeds of Immovable Properties not held in name of the Company
The Company does not possess any immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the company).
G. Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in crypto currency or virtual currency during the financial years ended 31 March 2024 and 31 March 2023.
H. Relationship with struck off companies
The Company does not have any transactions with companies struck off under section 248 of Companies Act, 2013 during the financial year ended 31 March 2024 and 31 March 2023.
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