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Accounting Policies of Hit Kit Global Solutions Ltd. Company

Mar 31, 2014

The financial statements have been prepared and presented under the historical cost convention using the accrual basis of accounting in accordance with the generally accepted accounting principles, applicable Accounting Standards as prescribed under the Companies (Accounting Standards) Rules, 2006 and provisons of the Companies Act, 1956.

Use of Estimates

The preparation of financial statements is conformity with the GAAP (generally accepted accounting principles) requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting year. Differences between actual results and estimates are recognized in the year in which the results are known / materialized.

Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation. Cost comprises of material cost, freight, duties, taxes, interest and other incidental expenses related to aquistion and installation.

Depreciation / Amortization

Depreciation has been provided for on straight-line method at the rates prescribed in Schedule XIV to the Companies Act, 1956.

Impairment

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to there Profit and Loss Account in the year in which an asset is identified as Impaired. The impairment loss recognised in prior accounting year is reversed if there has been a change in the estimate of recoverable amount.

Investments

Long term investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temparary. Inventories

Inventories are valued "at lower of cost and net realizable value".

Revenue Recognition

The company generally follows mercantile system of accounting and recognises significant terms of income and expenditure on accrual basis.

Revenue from Software & Retail Business consists primarily on account of sale of goods and is recognised on delivery to the clients.

Borrowing Cost

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised as a part of such assets. A qualifying asset is one that necessarily takes substantial year of time to get ready for intended use. All other borrowing costs are charged against revenue.

Research and Development

Expenditure incurred on Research & Development is charged to revenue and fixed assets in the year it is incurred as per nature of expenses.

Taxation

Tax liability is estimated considering the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable /virtual certainty that the asset will be realised in future.

Cash Flow Statement

Cash Flow Statement has been prepared in accordance with indirect method prescribed in Accounting Standard 3 issued by the Institite of Chartered Accountants of India.

Earning Per Share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earning per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilative potential equity shares.

Provision, Contigent Liabilities and Contigent Assets

Provisions involving substantial degree of estimation in measurement are recognised 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 recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2012

Basis of Presentation

The financial statements have been prepared and presented under the historical cost convention using the accrual basis of accounting in accordance with the generally accepted accounting principles, applicable Accounting Standards as prescribed under the Companies (Accounting Standards} Rules, 2006 anc provisons of the Companies Act, 1956.

Use of Estimates

The preparation of financial statements is conformity with the GAAP (generally accepted accounting principles) requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting period Differences between actual results and estimates are recognized in the period in whit Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation Cost comprises of material cost, freight, duties, taxes, interest and other incidental expenses related to aquiston and installation Depreciation I Amorti ation

Depreciation has been provided for on straight-line method at the rales prescribed in Schedule XIV to the Companies Act, 1956.

Impairment

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to there Profit and loss Accoun in the period in which an asset is identified as Impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

Investments

Long term investments are stated at cost of acquistion.

Inventories

Inventories are valued 'at lower of cost and net realizable value"

Revenue Recognition

The company generally follows mercantile system of accounting and recognises significant terms of income and expenditure on accrual basis.

Revenue from Software & Retail Business consists primarily on account of sale of goods and is recognised on delivery to the clients.

Borrowing Cost

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised as a part of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use All other borrowing costs are charged against revenue.

Research and Development

Expenditure incurred on Research & Development is charged to revenue and fixed assets in the period it is incurred as per nature of expenses.

Taxation

Tax liability is estimaied considenng the provisions of the Income Tax Act, 1961. Deferred tax resulting from 'timing differences' between book and taxable profii is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the 8alance Sheet date. The deferred tax asset is recognised and carried forward only lo the extent that there is a reasonable /virtual certainty that the asset will be realised in future.

Cash Flow Statement

Cash Flow Statement has been prepared in accordance with indirect method prescribed in Accounting Standard 3 issued by the Institute of Charterec Accountants of India.

Retirement Benefits

Liability for payment of Gratuity is accounted for on cash basis and future liability on accruing basis has, however, not been actuarially determined.

Earning Per Share

Basic earnings per share is calculated by dividing the net profit or loss for the penod attributable to equity shareholders by the weighted average number ol equity shares outstanding during the period.

For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilative potential equity shares.

Provision, Contigent Liabilities and Contigeni Assets

Provisions involving substantial degree of estimation in measurement are recognised 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 recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.


Jan 31, 2010

1) Basis of Presentation

The financial statements have been prepared and presented under the historical cost convention using the accrual basis of accounting in accordance with the accounting principles generally accepted in India and are in accordance with the applicable Accounting Standards, Guidance Notes and the relevant provisions of the Companies Act, 1956.

2) Use of Estimates

The preparation of financial statements is conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known / materialized.

3) Revenue Recognition: Revenue from Activity:

a.The company generally follows mercantile system of accounting and recognises significant terms of income and expenditure on accrual basis.

b.Revenue from Software & Retail Business consists primarily on account of sale of goods and is recognised on delivery to the clients.

4) Equipment and Depreciation (Fixed Assets)

a.Assets are stated at actual cost less accumulated depreciation. The actual cost capitalised includes material cost, freight, installation cost, duties and taxes, finance charges and other incidental expenses incurred during the construction/installation stage.

b. Depreciation has been provided for on straight-line method at the rates prescribed in Schedule XIV to the Companies Act, 1956 as amended by the Central Governments Notification No. GSR Nodf. 756(E) dated 16.12.1993.

5)lnvestments

Investments are stated at cost of acquisition.

6) Inventories

Inventories are valued at Cost.

7) Software Development Expenses

Software Development Expenses includes the cost of subcontracting consultancy and services. The software development expenses of internally developed software are charged to the Profit & Loss account for the year, in which the software development is completed and are shown as extra ordinary items.

8) Borrowing Cost

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised as a part of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged against revenue.

9) Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to there Profit and Loss Account in the period in which an asset is identified as Impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

10)Research and Development

Expenditure incurred on Research & Development is charged to revenue and fixed assets in the year it is incurred as per nature of expenses.

11)Taxation

Provisions for current tax are made after taking into consideration benefits admissible under the provisions of the Income Tax Ac t, 1961. Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable /virtual certainty that the asset will be realised in future. Provision for Income Tax includes provision for current Tax & Deferred Tax liabilities / Assets.

12)Provision, Contingent Liabilities and Contingent Assets.

Provisions involving substantial degree of estimation in measurement are recognised 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 recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

13)Retirement Benefits

Liability for payment of Gratuity is accounted for on cash basis and future liability on accruing basis has, however, not been actuarially determined.

14)Earning Per Share:

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilative potential equity shares.

15)Dues to Small Scale industrial undertaking.

As at January 31st, 2010 and January 31st 2009, the company has no outstanding dues exceeding Rs. 1 lakhs for more than 30 days to Small Scale Industrial Undertaking.

There are no Micro and Small Enterprises to whom the company owes dues, for more than 45 days as at January 31st 2010. This information as required to be disclosed under the micro , Small and Medium Enterprises development Act, 2006 has been determined to the extent such parties have been identified on the basis of Information available to the company.

 
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