Accounting Policies of Integra Telecommunication & Software Ltd. Company

Mar 31, 2015

1. Going Concern

The accounts are being prepared on the going concern basis, i.e. the assets and liabilities are recorded on the basis that the Company will be able to use or realise its assets at least at the recorded amounts and discharge its liabilities in the usual course of business.

2. Basis of preparation of financial statements.

These financial statements are prepared in accordance with the Indian Generally Accepted accounting principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises of mandatory accounting standards as prescribed under section 133 of the Companies Act 2013 read with Rule 7 of the Companies ( Accounts) Rules 2014. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

3. Use of estimates

The preparation of the financial statements in conformity with GAAP requires the management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of incomes and expenses during that period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

4. Revenue Recognition

Revenue is recognized only when risks and rewards incidental to ownership are transferred to the customer, it can be reliable measured and it is reasonable to expect ultimate collection. Revenue is primarily derived from trading of software and hardware. Arrangements with customers are on a time and item basis.

5. Provisions and contingent Liabilities

A provision is recognized if as a result of a past event, the company has a present obligation that is reasonably estimable and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of the economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as a contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that may but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow is remote, no provision or disclosure is made.

6. Onerous Contracts

There is no Onerous Contracts entered by the Company.

7. Tangible Assets and Capital work in progress

Tangible assets are stated at cost, less accumulated depreciation and impairment, if any. Direct costs are capitalized until such assets are ready for use. There is no Capital work in progress at the reporting date.

8. Intangible Assets

There are no Intangible assets with the Company at the reporting date.

9. Depreciation and Amortization

Depreciation on tangible assets is provided on straight line basis over the useful life of the assets estimated by the management. Depreciation for assets purchased/ sold during a period is proportionately charged.

10. Impairment

The management periodically assesses, whether there is an indication that an asset may be impaired. An impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable amount. An impairment loss for an asset is reversed, if and only if, the reversal can be related to an objectively to an event occurring after the impairment loss was recognized.

11. Retirement Benefits to employees Gratuity

The company is not covered under Gratuity Plan.

Superannuation

The company is not covered under Superannuation Plan.

Provident fund

The company is not covered under Provident Fund.

12. Share based payments

The Company have not issued any stock-options so far and hence no share based payment during the reporting year.

13. Foreign Currency Transactions

There are no Foreign currency transactions during the year.

14. Forward and option contracts in foreign currencies

Since there are no Foreign exchange transactions forward and option contracts is not applicable

15. Income Taxes

Income taxes are accrued in the same year in which the related revenues and expenses arise. A provision is made for income tax based on the tax liability computed, after considering tax allowances and exemptions. The company does not recognizes Provisions for Deferred Tax assets/Liabilities.

16. Earnings per share

Basic earnings per share in computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period.

17. Investments

Current investments are carried at the lower of the cost and quoted/fair value of each investment individually. Non-Current investments are carried at cost less provisions recorded to recognize any decline, other than temporary, in the carrying value of each investment.

18. Cash and cash equivalents

Cash and cash equivalents comprise cash and cash deposit with banks and corporations.

19. Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of the transactions of a non cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the company are segregated.

20. Leases

No Lease agreement entered by or with the Company except lease for office premises.

21. Inventories

Items of Inventories are measured at lower of cost and net realizable value providing for obsolescence, if any.

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Mar 31, 2014

(i) Going concern

The accounts are being prepared on the going concern basis, i.e. the assets and liabilities are recorded on the basis that the Company will be able to use or realise its assets at least at the recorded amounts and discharge its liabilities in the usual course of business.

(ii) Basis of accounting

The financial statement are prepared to comply in all material aspects with Accounting standards as notified by the Companies (Accounting standards) rules 2006 issued by the central Government in exercise of power conferred under section 642(1) (a) and the relevant provision of Companies Act, 1956.The Financial statement have been prepared under the historical cost convention on accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

(iii) Presentation and disclosure of financial statement.

Presently the revised schedule VI notified under the Companies act, 1956, has become applicable to the Company, for preparation and presentation of its financial statements and financial statement have been prepared accordingly.

(iv) Fixed Assets

Fixed assets are stated at historical cost less accumulated depreciation. Cost includes purchase price and all other attributable cost to bring the assets its working condition for the intended use.

(v) Depreciation

Depreciation has been provided on straight line method at the rates prescribed under Schedule XIV to the Companies Act, 1956 on pro-rata basis. Assets costing below Rs. 5000 are written off in the year of purchase.

(vi) Investments

Investments are stated at cost.

(vii) Inventories

Inventories are valued at cost.

(viii) Deferred Taxation

The accounting treatment followed for taxes on income is not provided for deferred tax since there is no reasonable certainty that the assets will be realised in future.

(ix) Contingent Liabilities

Contingent Liability, if any, is disclosed by way of notes on accounts. Provision is made in account in respect of those contingencies which are likely to materialize in to liabilities after the year end till the adoption of accounts by Board of Directors and which have material effect on the position stated in the balance sheet.

(X) In the opin on of the Board, Investments and current assets have a value on realisation in the ordinary course of business, at least equal to the amount at which they are stated.

(xi) Earnings Per Share

Earnings Per Share (EPS) are computed on the basis of net profit after tax. The number of shares .used in computing basic EPS is weighted average number of shares outstanding during the year.