Accounting Policies of Integrated Hitech Ltd. Company

Mar 31, 2024

1. Basis of Preparation of Financial Statements:

The accounting policies are applied consistently to all the periods presented in the financial statements. 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 III to the Companies Act, 2013.

The financial statements are presented in INR, the functional currency of the Company. Rounding of
amounts All amounts disclosed in the financial statements and notes have been rounded off to the nearest
lakhs as per the requirement of Schedule III, unless otherwise stated.

2. Use of Estimates and judgments:

The preparation of the financial statements requires the Management to make, judgments, estimates and
assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at
the date of the financial statements and the reported amounts of revenue and expenses during the reporting
period. The recognition, measurement, classification or disclosure of an item or information in the financial
statements is made relying on these estimates. The estimates and judgements used in the preparation of the
financial statements are continuously evaluated by the management and are based on historical experience
and various other assumptions and factors (including expectations of future events) that the management
believes to be reasonable under the existing circumstances. Actual results may differ from those estimates.
Any revision to accounting estimates is recognised prospectively in current and future periods.

Critical accounting judgements and key source of estimation uncertainty

The Company is required to make judgements, estimates and assumptions about the carrying amount of
assets and liabilities that are not readily apparent from other sources. The estimates and associated
assumptions are based on historical experience and other factors that are considered to be relevant. The
estimates and underlying assumptions are reviewed on an on-going basis.

(a) Estimation of current tax expenses and payable

3. Property, plant and equipment (PPE)

Property, plant and equipment is stated at acquisition cost net of accumulated depreciation and accumulated
impairment losses, if any.

The cost of an item of property, land and equipment comprises its purchase price, including import duties
and non-refundable purchase taxes, after deducting trade discounts and rebates, any directly attributable
costs of bringing the asset to its working condition for its intended use and estimated costs of dismantling
and removing the item and restoring the item and restoring the site on which it is located.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are
_included in the Statement of Profit and Loss._

4. Fair Value Measurement

The Company measures financial instruments, such as, derivatives, investments at fair value at each balance
sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The fair value measurement is
based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

(a) In the principal market for the asset or liability, or

(b) In the absence of a principal market, in the most advantageous market for the asset or liability

All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorised within the fair value hierarchy, described as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:

(i) Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

(ii) Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable

(iii) Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of
each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as

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5. Cash and Cash Equivalents:

Cash and Cash equivalents include cash and Cheque in hand, bank balances, demand deposits with banks
and other short-term highly liquid investments that are readily convertible to known amounts of cash &
which are subject to an insignificant risk of changes in value where original maturity is three months or less.

6. Foreign Currency Transactions: NIL

7. Revenue Recognition:

Rendering of Services

Income from services rendered is recognised based on invoices raised for service provided on an accrual
basis.

Revenue is measured at fair value of the consideration received or receivable, after deduction of any
discounts, any taxes or duties collected on behalf of the government which are levied on sales such as Goods
& Service taxe (GST) and service tax.

Interest

Revenue is recognised on a time proportion basis taking into account the amount outstanding and the
interest rate applicable and based on Effective interest rate method.

Dividend

8. Employee Benefits:

Employee Beenfits: - The Company doesnot falls with in the applicability of Employee Benefit plans.

9. Taxes on Income:

Income tax comprises current and deferred tax. Income tax expense is recognized in the statement of profit
and loss except to the extent it relates to items directly recognized in equity or in other comprehensive
income.

Current tax is based on taxable profit for the year. Taxable profit is different from accounting profit due to
temporary differences between accounting and tax treatments, and due to items that are never taxable or tax
deductible. Tax provisions are included in current liabilities. Interest and penalties on tax liabilities are
provided for in the tax charge. The Company offsets, the current tax assets and liabilities (on a year on year
basis) where it has a legally enforceable right and where it intends to settle such assets and liabilities on a net
basis or to realise the assets and liabilities on net basis.

Deferred income tax is recognized using the balance sheet approach. Deferred income tax assets and
liabilities are recognized for deductible and taxable temporary differences arising between the tax base of
assets and liabilities and their carrying amount in financial statements. Deferred income tax asset are
recognized to the extent that it is probable that taxable profit will be available against which the deductible
temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.
Deferred tax assets are not recognised where it is more likely than not that the assets will not be realised in
the future.

The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the
deferred income tax asset to be utilized. Deferred income tax assets and liabilities are measured at the tax
rates that are expected to apply in the period when the asset is realized or the liability is settled, based on tax
rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in
equity.

Minimum Alternative Tax (''MAT'') credit is recognised as an asset only when and to the extent there is
convincing evidence that the Company will pay normal income-tax during the specified period. The
Company reviews the same at each balance sheet date and writes down the carrying amount of MAT credit
entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal
income-tax during the specified period.

10. Borrowing Cost:

General and specific borrowing costs that are directly attributable to the acquisition, construction or
production of qualifying assets are capitalized as a part of Cost of that assets, during the period till all the
activities necessary to prepare the Qualifying assets for its intended use or sale are complete during the
period of time that is required to complete and prepare the assets for its intended use or sale. Qualifying
assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.

Other borrowing costs are recognized as an expense in the period in which they are incurred.

11. Earnings Per Share:

Basic earnings per shares are calculated by dividing the net profit or loss after tax 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 earnings per share, the net profit or loss for the period attributable to the
equity shareholders and the weighted average number of shares outstanding during the period is adjusted
for the effects of all dilutive potential equity shares.

12. Leases:

Where the Company is Lessee

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased
item, are classified as operating leases. Operating lease payments are recognized as an expense in the
Statement of Profit and Loss on accrual basis as per the terms of agreements entered with the counter parties.

Where the Company is Lessor

Leases in which the Company does not transfer substantially all the risks and benefits of ownership of the
asset are classified as operating leases. Assets subject to operating leases are included in property, plant and
equipment. The Company recognizes lease rentals from the property leased out, on accrual basis as per the
terms of agreements entered with the counter parties. Costs, including depreciation, are recognized as an
expense in the Statement of Profit and Loss.

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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.

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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.

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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: