Intellvisions Software

A) RELATED PARTY TRANSACTIONS:
 
 In accordance with the Accounting Standard 18, following transactions
 were carried out with related parties
 
 i.  DIRECTOR REMUNERATION; Rs. 37,12,400/-
 
 Except above remuneration paid to the Directors, there are no other
 transactions to be reported under the related party transactions.
 
 B) SEGMENT REPORTING:
 
 PRIMARY
 
 The Company has identified two geographic segments based upon its
 operations of Business i.e. at India and Dubai.
 
 
 Segment Information for the year ended 31s1 March, 2009 is as under:
 
 C) EARNING PER SHARE:
 
 The Basic Earnings Per Share have been computed by dividing the Net
 Profit After Tax for the year by the Weighted Average Number of Equity
 Shares outstanding during the year; whereas the Diluted Earnings Per
 Share is not separately considered as Equity Warrants outstanding as on
 31 March, 2009 are refunded before the signing of Audit Report. The
 relevant details as described above are as follows:
 
 D) VIEW 24*7, HANDHELD TERMINAL, R&D AND OTHER PRE-OPERATIVE
 EXPENDITURE INCLUDES:
 
 VIEW 24*7 PROJECT :
 
 Company had ventured for a Digital Signage project viz. View 24 * 7 and
 it had acquired various locations for the purpose of Digital Signage
 and Display. All expenses incurred to make project operative has been
 capitalized to the tune of Rs. 3,45,41,023/- as Intangible asset and
 the same shall be amortized over a period of 5 years commencing from
 the year under review.
 
 HANDHELD TERMINAL DEVELOPMENT :
 
 During the year, Company has incurred Nil (Previous Year Rs.
 14,09,670/-) towards Handheld terminal.  As the project has not
 commenced any Commercial Operations, the development costs shall be
 apportioned over its useful life from the date of its Commercial
 Commencement.
 
 TRINETRA PROJECT :
 
 During F.Y. 2007-08 it was decided to amortize Development Expenses and
 Expenses relating to Trinetra Project aggregating to Rs. 30,50,427/-
 over a period of two years commencing from 1sl January 2008.
 Accordingly an amount of Rs. 15,25,216/- has been written off during
 the year under review.  Hence a sum of Rs. 4,93,643/- is remaining to
 be amortized under Development Cost - Trinetra Project and sum of Rs
 6,50,263/- remains to be amortized under Development Expenses Under
 Current Assets.
 
 PRE-OPERATIVE EXPENDITURE :
 
 Dubai Office started operations from 01.07.2007. As per Management
 perception total pre-operative expenses amounting to Rs. 32,25,341/-
 has been decided to be written off over a period of two years
 commencing from 01.07.2007. Accordingly a sum of Rs. 16,12,671/- has
 been written off during the year under review. A sum of Rs. 4,03,168/-
 remains to be written off under the head Pre-operative Expenses under
 Current Assets.
 
 E) CONTINGENT LIABILITIES :
 
 There are Bank Guarantees of Rs. 90.14 Lac given as performance
 guarantee to M.S.E.D & B.S.N.L.
 
 Excise matter in dispute amounting to Rs. 23.57 Lacs for the period
 from February, 2007 to January, 2008. Company has preferred an appeal
 before Tribunal.
 
 Another Excise matter in dispute amounting to Rs. 205.26 Lacs for the
 period from April, 2004 to January, 2007 for which Dept has preferred
 an appeal before Tribunal.
 
 F) EMPLOYEE BENEFITS :
 
 CONTRIBUTION TO GRATUITY FUNDS:
 
 The Company adopted Accounting Standard 15 (revised 2005) - Employee
 benefits (As 15) from 01s April, 2008. Pursuant to the adoption, the
 transitional obligations of the Company amounting to Rs. 3,03,234/- has
 been adjusted (reduction) from the balance in the General Reserve as of
 01s1 April, 2008.
 
 The details of the Companys Gratuity Fund for its employees are given
 below which is certified by the actuary and relied upon by the
 Auditors.
 
 Contributions are made to Recognized Provident Fund which covers al!
 eligible Employees. However both the employees and Company make
 predetermined contributions to Provident Fund. The Contributions are
 made normally based on a certain proportion of the employees salary.
 Amount recognized as expense in respect of these defined contribution
 plan is Rs. 6,72,017/- (March 31 ^, 2008 - Rs. 5,23,763/-).
 
 G) LEASES:
 
 1.  The Company has taken offices, factory and other equipments under
 cancelable and non-cancelable operating leases.
 
 Rent and Hire Charges for such Operating Lease recognized in the Profit
 & Loss Account for the period ended March 31s, 2009 amounts to Rs.
 1,21,40,672/- (March 31s1, 2008-Rs. 1,01,56,106/-) and capitalized
 towards 24*7 project Rs. 61,59,714/- (March 31si, 2008 - Rs.
 42,37,603/-).
 
 2. The Company has sub-leased out machinery on operating lease. The
 lease is non cancelable for tenure of 3 years. Rent income on installed
 machines from such operating leases recognized in the profit & loss
 account for the current year is Rs. 42,34,644/-.
 
 H) Previous Years figures have been restated, reclassified and
 regrouped where ever necessary The figures have been rounded off to 
 the nearest rupee.