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Accounting Policies of Healthfore Technologies Ltd. Company

Mar 31, 2014

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The Financial statements of the company have been prepared on accrual basis, based on going concerned concept, under the historical cost convention and in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under Section 211 (3C) of the Companies Act, 1956 (which continue to be applicable in respect to Section 133 of the Companies Act, 2013 in tems of General Circular 15/2013 dated 13 September, 2013 of the Ministry of Corporate Affairs) and the relevant provisions of the Companies Act, 1956 or the Companies Act, 2013, as applicable.

The Company has prepared its financial statements in accordance with Revised Schedule VI as inserted by Notification- S.O. 447(E), dated 28.2.2011 (As amended by Notification No F.NO. 2/6/2008-CL-V, Dated 30.3.2011). However it has necessitated significant changes in the presentation of and disclosures in financial statements. The Company has reclassified its previous year figures to confirm to the classification as per the aforesaid Schedule.

b. USE OF ESTIMATES

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

c. REVENUE RECOGNITION

(i) Revenue from fixed price service contracts is recognized in proportion to the degree of completion of service by reference to and based on milestones/acts performed as specified in the contracts and in case of time and material service contracts, it is recognized on the basis of hours completed and material used.

(ii) Revenue from the sale of user licenses for software applications is recognized on transfer of the title in the user license.

(iii) Revenue from annual maintenance contracts is recognized proportionately over the period in which services are rendered.

(iv) Revenue from Software Consultancy and Support Services is recognized based on proportionate completion method as per specific agreements with the customers.

(v) Interest and other dues are accounted on accrual basis.

(vi) Revenue excludes Value added tax/sales tax and service tax.

(vii) Revenue in excess of billings on service contracts is recorded as unbilled receivables and is included in Other Current Assets. Billings in excess of revenue that is recognized on service contracts are recorded as deferred revenue until the above revenue recognition criteria are met and are included in current liabilities

d. FIXED ASSETS

Fixed assets are stated at cost inclusive of incidental expenses, less accumulated depreciation.

Advances paid towards the acquisition of fixed assets outstanding as of each balance sheet date and the cost of fixed assets not ready for use before such date are disclosed under capital work in progress.

e. RESEARCH AND DEVELOPMENT

Revenue expenditure on research and development is charged to Profit and Loss account and capital expenditure on development is shown as addition to fixed assets.

f. STOCK IN TRADE

Stocks of IT Products are valued at lower of Cost or Realisable Value. Cost is computed on ''Weighted Average Method''.

g. INTANGIBLE ASSETS

Intangible assets are recognized only if it is probable that the future economic benefits that are attributable to assets will flow to the enterprise and the cost of the assets can be measured reliably. The intangible assets are recorded at their acquisition cost.

Computer software which is not an integral part of the related hardware is classified as an intangible asset and is being amortized over the estimated useful life.

h. Depreciation of Amortisation

# 5 years for software developed or Software procured for further enhancement and 3 years for other software

Goodwill generated in the process of amalgamation (purchased method) is amortised over a period of five years. Goodwill generated in the process of consolidation is tested for Impairment.

Depreciation on additions/ deletions to fixed assets is provided on pro-rata basis from/up to the date the asset is put to use/ discarded. Assets costing Rs 5000 or less are fully depreciated in the year of acquisition.

Depending on estimated economic useful life of assets in commercial use, different depreciation rates are charged for the same class of assets. For example software licenses of one year is depreciated over the period of one year proportionally

i. INVESTMENTS

Investments are classified into long term investments and current investments. Investments which are intended to be held for one year or more are classified as long term investments and investments which are intended to be held for less than one year are classified as current investments. Long term investments are accounted at cost and any decline in the carrying value other than temporary in nature is provided for. Current investments are valued at cost or market / fair value, whichever is lower.

j EMPLOYEE BENEFITS

1 Provident fund is a defined contribution scheme and the contributions as required by the statute are charged to profit and loss account as incurred.

2 Gratuity liability is a defined obligation and is wholly unfunded. The company accounts for liability for future gratuity benefits based on actuarial valuation.

3 The employees of the company are entitled to compensated absences and leave encashment as per the policy of the company. The liability in this respect is provided, based on actuarial valuation

4 Actuarial gains and losses comprise experience adjustments and the effects of changes in the actuarial assumptions and are recognised immediately in the profit and loss account as income or expenses.

5 The undiscounted amount of short - term employee benefits expected to be paid in exchange for services rendered by an employee is recognised during the period when the employee renders the services.

k. TAXES ON INCOME

(i) Current tax is determined as the amount of tax payable in respect of taxable income for the year.

(ii) Deferred tax is recognised on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods, subject to the consideration of prudence in respect of deferred tax asset.

l. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

m. IMPAIRMENT OF INTANGIBLE ASSETS

An asset is impaired when the carrying amount of the asset exceeds its recoverable amount. An impairment loss is charged to the Profit and Loss account in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount.

n. BORROWING COST

Borrowing costs incurred for the acquisition or developing of qualifying assets are recognized as part of cost of such assets when it is considered probable that they will result in future economic benefits to the company. While other borrowing cost are expensed in period in which they are incurred

o. CASH FLOW STATEMENTS

Cash Flow is reported using indirect method, whereby net profits before tax is adjusted for the effects of transactions of a non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generation, investing and financing activities of the company are segregated.

p. FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the transaction. At the year end, all the monetary assets and liabilities denominated in foreign currency are restated at the closing exchange rate. Exchange differences resulting from the settlement of such transactions and from the restatement of such monetary assets and liabilities are recognized in the Profit and Loss Account.

q. PREPAID EXPENSE

Prepaid Expenses are recognized only where the amount of prepaid expense is in excess of Rs 20000/-.

r. PROVISION FOR BAD DEBTS

Provision for Bad and Doubtful debts have been created on case to case basis after assessing the recoverability aspect

s. INVESTMENTS IN ASSOCIATES

Company has holding of 27.33% in C2l BIZ Solutions Pvt. Ltd. , hence having significant influence as per AS-23. However as per AS-21 the company does not required to prepare Consolidated Financial Statement , hence investment has been accounted for in accordance with AS-13 (Accounting for Investment)

t. OPERATING CYCLE

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule VI to the Companies Act,1956. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - non current classification of assets and liabilities.

u. GOVERNMENT GRANT

Grants related to specific Fixed Assets are disclosed as a deduction from the value of concern Assets. Grants related to revenue are credited to the statement of profit and loss account. Grants in the nature of promoter''s contribution are treated as Capital Reserve.

v. SEGMENT ACCOUNTING

The following accounting policies have been followed for segment reporting:

Segment Revenue includes revenue from operations and other income directly identifiable with/allocable to the segment. Expenses that are directly identifiable with / allocable to segment are considered for determining the segment result. The expenses which relate to the company as a whole and not allocable to segment are included under unallocable expenses. Segment assets and liabilities include those directly identifiable to respective segments. Unallocable corporate assets & liabilities represent the assets and liabilities related to company as a whole and not allocable to any segment.


Mar 31, 2013

A. BASIS OF ACCOUNTING

The financial statements are prepared under the historical cost convention, on going concern basis and in terms of the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006 in compliance with Section 211(3C) of the Companies Act, 1956. The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis to the extent measurable and where there is certainty of ultimate realisation in respect of incomes. Accounting policies not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles in India.

The Company has prepared its financial statements in accordance with Schedule VI as inserted by Notification- S.O. 447(E), dated 28.2.2011 (As amended by Notification No F.NO. 2/6/2008-CL-V, Dated 30.3.2011). The Schedule does not impact recognition and measurement principle followed for the preparation of financial statement for accounting in subsidiaries companies. However it has necessitated significant changes in the presentation of and disclosures in financial statements. The Company has reclassified its previous year figures to confirm to the classification as per the aforesaid Schedule.

b. USE OF ESTIMATES

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

c. REVENUE RECOGNITION

(i) Revenue from fixed price service contracts is recognized in proportion to the degree of completion of service by reference to and based on milestones/acts performed as specified in the contracts and in case of time and material service contracts, it is recognized on the basis of hours completed and material used.

(ii) Revenue from the sale of user licenses for software applications is recognized on transfer of the title in the user license.

(iii) Revenue from annual maintenance contracts is recognized proportionately over the period in which services are rendered.

(iv) Revenue from Software Consultancy and Support Services is recognized based on proportionate completion method as per specific agreements with the customers.

(v) Interest and other dues are accounted on accrual basis.

(vi) Revenue excludes Value added tax/sales tax and service tax.

(vii) Revenue in excess of billings on service contracts is recorded as unbilled receivables and is included in trade accounts receivable. Billings in excess of revenue that is recognized on service contracts are recorded as deferred revenue until the above revenue recognition criteria are met and are included in current liabilities.

d. FIXED ASSETS

Fixed assets are stated at cost inclusive of incidental expenses, less accumulated depreciation.

Advances paid towards the acquisition of fixed assets outstanding as of each balance sheet date and the cost of fixed assets not ready for use before such date are disclosed under capital work in progress.

e. RESEARCH AND DEVELOPMENT

Revenue expenditure on research and development is charged to Profit and Loss account and capital expenditure on development is shown as addition to fixed assets.

f. STOCK IN TRADE

Stocks of IT Products are valued at lower of Cost or Realisable Value. Cost is computed on ''Weighted Average Method`.

g. INTANGIBLE ASSETS

Intangible assets are recognized only if it is probable that the future economic benefits that are attributable to assets will flow to the enterprise and the cost of the assets can be measured reliably. The intangible assets are recorded at their acquisition cost.

Computer software which is not an integral part of the related hardware is classified as an intangible asset and is being amortized over the estimated useful life.

h. DEPRECIATION/ AMORTISATION

Depreciation on fixed assets (other than Intangible) is provided on straight line method as per the following rates:

Goodwill generated in the process of amalgamation (purchased method) is amortised over a period of five years.

Goodwill generated in the process of consolidation is tested for Impairment.

Depreciation on additions/ deletions to fixed assets is provided on pro-rata basis from/up to the date the asset is put to use/ discarded. Assets costing Rs 5000 or less are fully depreciated in the year of acquisition.

Depending on estimated economic useful life of assets in commercial use, different depreciation rates are charged for the same class of assets.

i. INVESTMENTS

Investments are classified into long term investments and current investments. Investments which are intended to be held for one year or more are classified as long term investments and investments which are intended to be held for less than one year are classified as current investments. Long term investments are accounted at cost and any decline in the carrying value other than temporary in nature is provided for. Current investments are valued at cost or market / fair value, whichever is lower.

j EMPLOYEE BENEFITS

1. Provident fund is a defined contribution scheme and the contributions as required by the statute are charged to profit and loss account as incurred.

2. Gratuity liability is a defined obligation and is wholly unfunded. The company accounts for liability for future gratuity benefits based on actuarial valuation.

3. The employees of the company are entitled to compensated absences and leave encashment as per the policy of the company. The liability in this respect is provided, based on actuarial valuation.

4. Actuarial gains and losses comprise experience adjustments and the effects of changes in the actuarial assumptions and are recognised immediately in the profit and loss account as income or expenses.

5. The undiscounted amount of short – term employee benefits expected to be paid in exchange for services rendered by an employee is recognised during the period when the employee renders the services.

k. TAXES ON INCOME

(i) Current tax is determined as the amount of tax payable in respect of taxable income for the year.

(ii) Deferred tax is recognised on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods, subject to the consideration of prudence in respect of deferred tax asset.

l. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

m. IMPAIRMENT OF FIXED ASSETS

An asset is impaired when the carrying amount of the asset exceeds its recoverable amount. An impairment loss is charged to the Profit and Loss account in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount.

n. BORROWING COST

Borrowing costs incurred for the acquisition or developing of qualifying assets are recognized as part if cost of such assets when it is considered probable that they will result in future economic benefits to the company. While other borrowing cost are expensed in period in which they are incurred.

o. CASH FLOW STATEMENTS

Cash Flow is reported using indirect method, whereby net profits before tax is adjusted for the effects of transactions of a non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generation, investing and financing activities of the company are segregated.

p. FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the transaction. At the year end, all the monetary assets and liabilities denominated in foreign currency are restated at the closing exchange rate. Exchange differences resulting from the settlement of such transactions and from the restatement of such monetary assets and liabilities are recognized in the Profit and Loss Account.

q. PREPAID EXPENSE

Prepaid Expenses are recognized only where the amount of prepaid is in excess of Rs. 20000 /-. r. PROVISION FOR BAD DEBTS

Provision for Bad and Doubtful debts have been created on case to case basis after assessing the recoverability aspect.

s. INVESTMENTS IN ASSOCIATES

Company has holding of 27.48% in C2L BIZ Solutions Pvt. Ltd., hence having significant influence as per AS-23. However as per AS-21 the company does not required to prepare Consolidated Financial Statement, hence investment has been accounted for in accordance with AS-13 (Accounting for Investment).

t. OPERATING CYCLE

All assets and liabilities have been classified as current or non-current as per the Company`s normal operating cycle and other criteria set out in the Schedule VI to the Companies Act,1956. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current – non current classification of assets and liabilities.


Mar 31, 2012

A. BASIS OF ACCOUNTING

The financial statements are prepared under the historical cost convention, on going concern basis and in terms of the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006 in compliance with Section 211(3C) of the Companies Act, 1956. The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis to the extent measurable and where there is certainty of ultimate realisation in respect of incomes. Accounting policies not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles in India.

The Company has prepared its financial statements in accordance with Schedule VI as inserted by Notification- S.O. 447(E), dated 28.2.201 1 (As amended by Notification No F.NO. 2/6/2008-CL-V, Dated 30.3.201 1). The Schedule does not impact recognition and measurement principle followed for the preparation of financial statement for accounting in subsidiaries companies. However it has necessitated significant changes in the presentation of and disclosures in financial statements. The Company has reclassified its previous year figures to confirm to the classification as per the aforesaid Schedule.

b. USE OF ESTIMATES

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

c. REVENUE RECOGNITION

(i) Revenue from fixed price service contracts is recognized in proportion to the degree of completion of service by reference to and based on milestones/acts performed as specified in the contracts and in case of time and material service contracts, it is recognized on the basis of hours completed and material used.

(ii) Revenue from the sale of user licenses for software applications is recognized on transfer of the title in the user license.

(iii) Revenue from annual maintenance contracts is recognized proportionately over the period in which services are rendered.

(iv) Revenue from Software Consultancy and Support Services is recognized based on proportionate completion method as per specific agreements with the customers.

(v) Interest and other dues are accounted on accrual basis.

(vi) Revenue excludes Value added tax/sales tax and service tax.

(vii) Revenue in excess of billings on service contracts is recorded as unbilled receivables and is included in trade accounts receivable. Billings in excess of revenue that is recognized on service contracts are recorded as deferred revenue until the above revenue recognition criteria are met and are included in current liabilities.

d. FIXED ASSETS

Fixed assets are stated at cost inclusive of incidental expenses, less accumulated depreciation.

Advances paid towards the acquisition of fixed assets outstanding as of each balance sheet date and the cost of fixed assets not ready for use before such date are disclosed under capital work in progress.

e. RESEARCH AND DEVELOPMENT

Revenue expenditure on research and development is charged to Profit and Loss account and capital expenditure on development is shown as addition to fixed assets.

f. STOCK IN TRADE

Stocks of IT Products are valued at lower of Cost or Realisable Value. Cost is computed on 'Weighted Average Method'.

g. INTANGIBLE ASSETS

Intangible assets are recognized only if it is probable that the future economic benefits that are attributable to assets will flow to the enterprise and the cost of the assets can be measured reliably. The intangible assets are recorded at their acquisition cost. Computer software which is not an integral part of the related hardware is classified as an intangible asset and is being amortized over the estimated useful life.

h. DEPRECIATION/ AMORTISATION

Depreciation on fixed assets (other than Intangible) is provided on straight line method as per the following rates:

Goodwill generated in the process of amalgamation (purchased method) is amortised over a period of five years. Goodwill generated in the process of consolidation is tested for Impairment.

Depreciation on additions/ deletions to fixed assets is provided on pro-rata basis from/up to the date the asset is put to use/ discarded. Assets costing Rs. 5,000 or less are fully depreciated in the year of acquisition.

Depending on estimated economic useful life of assets in commercial use, different depreciation rates are charged for the same class of assets.

i. INVESTMENTS

Investments are classified into long term investments and current investments. Investments which are intended to be held for one year or more are classified as long term investments and investments which are intended to be held for less than one year are classified as current investments. Long term investments are accounted at cost and any decline in the carrying value other than temporary in nature is provided for. Current investments are valued at cost or market / fair value, whichever is lower.

j EMPLOYEE BENEFITS

1 Provident fund is a defined contribution scheme and the contributions as required by the statute are charged to profit and loss account as incurred.

2 Gratuity liability is a defined obligation and is wholly unfunded. The company accounts for liability for future gratuity benefits based on actuarial valuation.

3 The employees of the company are entitled to compensated absences and leave encashment as per the policy of the company. The liability in this respect is provided, based on actuarial valuation

4 Actuarial gains and losses comprise experience adjustments and the effects of changes in the actuarial assumptions and are recognised immediately in the profit and loss account as income or expenses.

5 The undiscounted amount of short - term employee benefits expected to be paid in exchange for services rendered by an employee is recognised during the period when the employee renders the services.

k. TAXES ON INCOME

(i) Current tax is determined as the amount of tax payable in respect of taxable income for the year.

(ii) Deferred tax is recognised on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods, subject to the consideration of prudence in respect of deferred tax asset.

l. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

m. IMPAIRMENT OF FIXED ASSETS

An asset is impaired when the carrying amount of the asset exceeds its recoverable amount. An impairment loss is charged to the Profit and Loss account in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount.

n. BORROWING COST

Borrowing costs incurred for the acquisition of qualifying assets are recognized as part if cost of such assets when it is considered probable that they will result in future economic benefits to the company. While other borrowing cost are expensed in period in which they are incurred

o. CASH FLOW STATEMENTS

Cash Flow is reported using indirect method, whereby net profits before tax is adjusted for the effects of transactions of a non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generation, investing and financing activities of the company are segregated.

p. FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the transaction. At the year end, all the monetary assets and liabilities denominated in foreign currency are restated at the closing exchange rate. Exchange differences resulting from the settlement of such transactions and from the restatement of such monetary assets and liabilities are recognized in the Profit and Loss Account.

q. PREPAID EXPENSE

Prepaid Expenses are recognized only where the amount of prepaid is in excess of Rs. 20,000 /-

r. PROVISION FOR BAD DEBTS

Provision for Bad and Doubtful debts have been created on case to cases basis after assessing the recoverability aspect s. INVESTMENTS IN ASSOCIATES

Company has holding of 28.7% in C2L BIZ Solutions Pvt. Ltd. , hence having significant influence as per AS-23. However as per AS-21 the company does not required to prepare consolidated financial statement , hence investment has been accounted for in accordance with AS-13 (Accounting for Investment)

t. OPERATING CYCLE

All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule VI to the Companies Act,1956. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - non current classification of assets and liabilities.

u. The financial statement of the company has been prepared based on going concern on the basis of commitment provided by the promoter shareholders.

 
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