Accounting Policies of Coreintegra Consulting Services Ltd. Company

3 Significant Accounting Policies

a) Property, Plant and Equipments
i) Tangible Assets

An item is recognised as an asset, if and only if, it is probable that the future economic benefits associated with
the item will flow to the Company and its cost can be measured reliably. PPE are initially recognised at cost. The
initial cost of PPE comprises purchase price (including non-refundable duties and taxes but excluding any trade
discounts and rebates), borrowing costs if capitalization criteria are met and directly attributable cost of
bringing the asset to its working condition for the intended use. Following initial recognition, PPE are carried at
cost less accumulated depreciation and accumulated impairment losses, if any.

Subsequent costs are included in the asset’s carrying amount or recognised as separate assets, as appropriate,
only when it is probable that the future economic benefits associated with expenditure will flow to the
Company and the cost of the item can be measured reliably. When significant parts of property, plant and
equipment are required to be replaced at intervals, the Company recognises such components separately and
depreciates them based on their specific useful lives. All other repairs and maintenance are charged to
Statement of Profit and Loss at the time of incurrence.

Gains or losses arising from de-recognition of PPE are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the
asset is derecognized.

Depreciation on property, plant and equipment is calculated on a written down value method using the rates
arrived at based on the useful lives estimated by the management which are in line with the useful lives
prescribed in Schedule II of the Companies Act, 2013. / Ul \t AMc

The estimated useful lives of assets are as follows:

Asset Useful life

Computers- Servers & networks 6 years

Computers- End user devices 3 years

Vehicles 8 years

Furniture & Fittings 10 years

Office Equipments 5 years

Lease hold improvement are depreciated over its useful life.

The useful lives, residual values and depreciation method of PPE are reviewed, and adjusted appropriately, at-least as at
each reporting date so as to ensure that the method and period of depreciation are consistent with the expected pattern
of economic benefits from these assets. The effects of any change in the estimated useful lives, residual values and / or
depreciation method are accounted prospectively, and accordingly the depreciation is calculated over the PPE''s
remaining revised useful life. The cost and the accumulated depreciation for PPE sold, scrapped, retired or otherwise
disposed off are derecognised from the balance sheet and the resulting gains / (losses) are included in the Statement of
Profit and Loss within other expenses / other income,
ii) Intangible Assets

Intangibles in the form of software development is capitalised when it is identifiable, over which the Company has a
control, whose cost is measurable reliably and there is probability of earning future economic benefit from the same.
Internal development of intangible assets are capitalised either individually or as a knowledge bank in the form of
software, once their technical feasibility and ability to generate future economic benefits is established in accordance
with the requirement of Accounting Standard 26. Expenditure directly attributable to the development of an Intangible
asset in accordance with the requirements of Accounting Standard 26 are capitalized.

Intangible assets are measured on initial recognition at cost Following initial recognition, intangible assets are carried at
cost less accumulated amortization and accumulated impairment losses, if any.

Intangible assets are amortized on a straight-line basis over the estimated useful economic life. The Company amortizes
intangible assets (Technology related costs and software) over the best estimate of its useful life which is 5 years.

The costs related to planning and post implementation phases of development are expensed as incurred. Expenditure on
research activities are recognized in the Statement of Profit and Loss as incurred.

Development activities relate to production of new or substantially improved products and processes. Development
expenditure incurred on an individual project is recognized as an intangible asset when the Company can demonstrate all
the following:

The technical feasibility of completing the intangible asset so that it will be available for use or sale.

Its intention to complete the asset and its ability and intention to use or sell the asset.

- How the asset will generate future economic benefits.

- The availability of adequate resources to complete the development and to use or sell the asset

The ability to measure reliably the expenditure attributable to the intangible asset during development.

The amortization period and the amortization method are reviewed at least at each financial year end. If the expected
useful life of the asset is significantly different from previous estimates, the amortization period is changed accordingly. If
there has been a significant change in the expected pattern of economic benefits from the asset, the amortization method
is changed to reflect the changed pattern. Such changes are accounted prospectively in accordance with AS 5 - Net Profit
or Loss for the Period, Prior Period Items and Changes in Accounting Policies.

Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognized in the Statement of Profit and Loss when the asset is
derecognized.

b) Impairment of assets

Assets that are subject to depreciation and amortization are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable or when annual impairment testing for an asset
is required. Such circumstances include, though are not limited to, significant or sustained decline in revenues or
earnings and material adverse changes in the economic environment

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the
carrying amount of the Company''s assets. If any indication exists, an asset’s recoverable amount is estimated. An
impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount The
recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated futui e
cash flows are discounted to their present value based on an appropriate discount factor.

Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment
losses recognized for the asset no longer exists or has decreased. However, the increase in carrying amount of an asset
due to reversal of an impairment loss is recognized to the extent it does not exceed the carrying amount that would have
been determined (net of depreciation] had no impairment loss been recognized for the asset in prior years.

c) Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which
such investments are made, are classified as current investments. All other investments are classified as long-term
investments.

On initial recognition, all investments are measured at cost The cost comprises purchase price and directly attributable
acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual
investment basis. Long-term investments are carried at cost However, provision for diminution in value is made to
recognize a decline other than temporary in the value of the long term investments.

On disposal of an investment the difference between its carrying amount and net disposal proceeds is charged or
credited to the Statement of Profit and Loss.

d) Current and Deferred Tax

Tax expenses for the period, comprising current and deferred tax, are included in the determination of the net profit or
loss for the period. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with
the taxation laws.

Deferred tax is recognized for all the timing differences, subject to the consideration of prudence in respect of deferred
tax assets. Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable certainty
that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax
assets in relation to unabsorbed depreciation or business loss is recognised only when there is a virtual certainity about
its realisation. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or
substantively enacted as at balance sheet date. At each balance sheet date the Company re-assess unrecognized deferred
tax assets, if any.

Current income tax assets and liabilities are off-set against each other and the resultant net amount is presented in the
balance sheet, if and only when, (a) the Company currently has a legally enforceable right to set-off the current income
tax assets and liabilities, and (b) when it relates to income tax levied by the same taxation authority and where there is
an intention to settle the current income tax balances on net basis.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off recognised amounts aand
there is an intention to settle the assets and liabilities on net basis.