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Accounting Policies of Integrated Hitech Ltd. Company

Mar 31, 2015

Financial Statements are prepared under historical cost convention method and comply with the mandatory Accounting Standards issued by The Institute of Chartered Accountant of India.

The significant accounting policies followed by the company are stated below.

A) INCOME AND EXPENDITURE :

a) Company follows accrual system of accounting in general.

b) Revenue from software development is recognized at the time of invoicing them to customers,

c) Capitalisation of Revenue Expenses

As the company is in development of new software and also in maintenance of existing software and revenue is derived from sale and service of upgraded existing software and most of the resources are utilized for development of new software, the revenue expenditures shown in the expenses of Profit & Loss Account under "operational and administrative expenses staff cost &, development expenses have been proportionally capitalized and disclosed as additions to "Computer peripherals and software" under Schedule 03 of "Fixed Assets".

B) FIXED ASSETS:

Fixed assets have been valued at cost less depreciation. Cost includes other attributable expenses relatable to the cost of acquisition.

C) DEPRECIATION:

a) Depreciation on fixed assets has been provided on straight line method at the rates prescribed in schedule XIV of The Companies Act 1956 including assets costing less than Rs.5000/-and charged on the basis of usage of the asset.

b) Depreciation on fixed assets added /disposed off during the year is provided on pro-rata basis with reference to the month of addition /disposal.

D) VALUATION OF CLOSING STOCK:

As there is no stock in trade, the question of valuation does not arise.

E) INVESTMENT IN SUBSIDIARIES;

As no commercial activity has commenced at both the subsidiary in Singapore & USA, the financial information relating to the subsidiaries are not furnished and consolidated financial information also not furnished..

F) MISCELLANEOUS EXPENDITURE

Miscellaneous Expenditure including preliminary expenses are written off over a period of ten years.


Mar 31, 2014

Financial Statements are prepared under historical cost convention method and comply with the mandatory Accounting Standards issued by The Institute of Chartered Accountant of India.

The significant accounting policies followed by the company are stated below.

A) INCOME AND EXPENDITURE :

a) Company follows accrual system of accounting in general.

b) Revenue from software development is recognized at the time of invoicing them to customers,

c) Capitalisation of Revenue Expenses

As the company is in development of new software and also in maintenance of existing software and revenue is derived from sale and service of upgraded existing software and most of the resources are utilized for development of new software, the revenue expenditures shown in the expenses of Profit & Loss Account under "operational and administrative expenses staff cost &, development expenses have been proportionally capitalized and disclosed as additions to "Computer peripherals and software" under Schedule 03 of "Fixed Assets".

B) FIXED ASSETS:

Fixed assets have been valued at cost less depreciation. Cost includes other attributable expenses relatable to the cost of acquisition.

C) DEPRECIATION:

a)Depreciation on fixed assets has been provided on straight line method at the rates prescribed in schedule XIV of The Companies Act 1956 including assets costing less than Rs.5000/-and charged on the basis of usage of the asset.

b) Depreciation on fixed assets added /disposed off during the year is provided on pro-rata basis with reference to the month of addition /disposal.

D) VALUATION OF CLOSING STOCK:

As there is no stock in trade, the question of valuation does not arise.

E) INVESTMENT IN SUBSIDIARIES;

As no commercial activity has commenced at both the subsidiary in Singapore & USA, the financial information relating to the subsidiaries are not furnished and consolidated financial information also not furnished..

F) MISCELLANEOUS EXPENDITURE

Miscellaneous Expenditure including preliminary expenses are written off over a period of ten years.






Mar 31, 2010

Financial Statements are prepared under historical cost convention method and comply with the mandatory Accounting Standards issued by The Institute of Chartered Accountant of India.

The significant accounting policies followed by the company are stated below :

A) INCOME AND EXPENDITURE :

a) Company follows accrual system of accounting in general.

b) Revenue from software development is recognized at the time of invoicing them to customers.

Operational, staff cost and developmental expenses amounting to Rs.5,40,777/- have been capitalized as software development and hence previous year figures are not comparable.

c) Capitalisation of Revenue Expenses

As the company is in development of new software and also in maintenance of existing software and revenue is derived from sale and service of upgraded existing software and most of the resources are utilized for development of new software, the revenue expenditures shown in the expenses of Profit & Loss Account under "operational and administrative expenses staff cost &, development expenses have been proportionally capitalized and disclosed as additions to "Computer peripherals and software" under Schedule 03 of "Fixed Assets".

B) FIXED ASSETS:

Fixed assets have been valued at cost less depreciation. Cost includes other attributable expenses relatable to the cost of acquisition.

C) DEPRECIATION:

a) Depreciation on fixed assets has been provided on straight line method at the rates prescribed in schedule XIV of The Companies Act 1956 including assets costing less than Rs.5000/-and charged on the basis of usage of the asset.

b) Depreciation on fixed assets added /disposed off during the year is provided on pro-rata basis with reference to the month of addition /disposal.

D) VALUATION OF CLOSING STOCK:

As there is no stock in trade, the question of valuation does not arise.

E) INVESTMENT IN SUBSIDIARIES;

As no commercial activity has commenced at both the subsidiary in Singapore & USA, the financial information relating to the subsidiaries are not furnished and consolidated financial information also not furnished.

F) MISCELLANEOUS EXPENDITURE

Miscellaneous Expenditure including preliminary expenses are written off over a period of ten years. 2. NOTES ON ACCOUNTS

a) Miscellaneous Expenditure (to the extent not written off or adjusted) comprise of preliminary expenses, registration fees etc.

b) The previous years figures have been recast/restated, where necessary to conform to current year classification.

c) Foreign currency expenditure: Nil

d) Earnings in Foreign currency: Rs. Nil.

e) Related party disclosure As per Accounting Standard 18, issued by The Institute of Chartered Accountants of India, the disclosure of transaction with the related parties are given below:

 
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