Home  »  Company  »  Omega Inter.Tech  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Omega Interactive Technologies Ltd. Company

Mar 31, 2015

I BASIS OF ACCOUNTING

These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy there to in use.

II USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

III FIXED ASSETS

Fixed assets are recorded at cost of acquisition or at revalued figures. Cost includes purchase cost together with all incidental charges and other related costs.

IV DEPRECIATION ON TANGIBLE FIXED ASSETS

Depreciation on fixed assets is calculated on a straight-line basis over the useful life of the assets as prescribed under Part C of Schedule II of the Companies Act 2013. The useful lives for the fixed assets are as follows:

Assets Life

Computers 3 years

Furniture & Fixtures 10 years

Office Equipments 5 years

Air Conditioners 5 years

V INCOME TAX

"Tax expense comprises both current and deferred tax at the applicable enacted/ substantively enacted rates. Current tax represents the amount of income tax payable/ recoverable in respect of the taxable income/ loss for the reporting period. Provision for current tax is made on the basis of estimated taxable income for the current accounting period in accordance with the provisions of The Income Tax Act, 1961. Deferred tax represents the effect of "timing differences" between taxable income and accounting income for the reporting period that originate in one period and capable of reversal in one or more subsequent periods. Deferred Tax Assets on unabsorbed Depreciation and brought forward losses are recognised only on Virtual Certainty.

VI EARNINGS PER SHARE

"Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) 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 equity shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

VII CASH AND CASH EQUIVALENT

Cash and Cash equivalents in the cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.

VIII REVENUE RECOGNITION

Revenue (income) is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:

Interest Revenue is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate.


Mar 31, 2014

1.1 Basis of preparation of financial statements :

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention, on the accrual basis of accounting and accounting standards issued by the central government in Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956 to the extent applicable.

1.2 Use of Estimates :

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention, on the accrual basis of accounting and accounting standards issued by the central government in Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956 to the extent applicable.

1.3 Fixed Assets and Depreciation :

Fixed Assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and all attributable cost of bringing the asset to its working condition for its intended use. Depreciation on Fixed Assets has been provided on written down value method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

1.4 Revenue Recognition :

Revenue (income) is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:

Interest Revenue is recognized on a time proportion basis taking into account the amount outstanding and the apLong term investments are carried at cost with provision for diminution being made to recognise a decline, other than temporary, in their value. Such diminution is determined for each investment individually on the basis of the expected benefits to the company. However the exact quantum of benefits is dependent upon a number of future events, hence the provision for decrease in value of the investments is made on the basis of management''s best estimates.

1.5 Investments :

Long term investments are carried at cost with provision for diminution being made to recognise a decline, other than temporary, in their value. Such diminution is determined for each investment individually on the basis of the expected benefits to the company. However the exact quantum of benefits is dependent upon a number of future events, hence the provision for decrease in value of the investments is made on the basis of management''s best estimates.

1.6 Taxes on income :

Tax expense comprises both current and deferred tax at the applicable enacted/ substantively enacted rates. Current tax represents the amount of income tax payable/ recoverable in respect of the taxable income/ loss for the reporting period. Provision for current tax is made on the basis of estimated taxable income for the current accounting period in accordance with the provisions of The Income Tax Act, 1961. Deferred tax represents the effect of "timing differences" between taxable income and accounting income for the reporting period that originate in one period and capable of reversal in one or more subsequent periods. Deferred Tax Assets on unabsorbed Depreciation and brought forward losses are recognised only on Virtual Certainty.

1.7 Provisions and contingencies :

A provision is recognized when the Company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are disclosed when the Company has a possible or present obligation where it is not probable that outflow of resources will be required to settle it. Contingent assets are neither recognized nor disclosed.

1.8 Earning Per Share :

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) 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 equity shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

1.9 Cash and Cash Equivalents :

Cash and Cash equivalents in the cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.


Mar 31, 2013

1.1 Basis of preparation of financial statements:

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention, on the accrual basis of accounting and accounting standards issued by the central government in Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956 to the extent applicable.

1.2 Use of Estimates:

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention, on the accrual basis of accounting and accounting standards issued by the central government in Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956 to the extent applicable.

1.3 Fixed Assets and Depreciation:

Fixed Assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and all attributable cost of bringing the asset to its working condition for its intended use. Depreciation on Fixed Assets has been provided on written down value method at the rates prescribed in Schedule XIV of the Companies Act, 1956.,

1.4 Revenue Recognition:.

Revenue (income) is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:

Interest Revenue is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate.

1.5 Investments:

Long term investments are carried at cost with provision for diminution being made to recognise a decline, other than temporary, in their value. Such diminution is determined for each investment individually on the basis of the expected benefits to the company. However the exact quantum of benefits is dependent upon a number of future events, hence the provision for decrease in value of the investments is made on the basis of management''s best estimates.

1.6 Taxes on income:

Tax expense comprises 6oth current and deferred tax at the applicable enacted/ substantively enacted rates. Current tax represents the amount of income tax payable/ recoverable in respect of the taxable income/ loss for the reporting period.

Provision for current tax is made on the basis of estimated taxable income for the current accounting period in accordance with the provisions of The Income Tax Act, 1961.

Deferred tax represents the effect of "timing differences" between taxable income and accounting income for the reporting period that originate in one period and capable of reversal in one or more subsequent periods. Deferred Tax Assets on unabsorbed Depreciation and brought forward losses are recoanised only on Virtual Certainty.

1.7 Provisions and continoencies:

A provision is recognized when the Company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the. obligation. Contingent liabilities are disclosed when the Company has a possible or present obligation where it is not probable that, outflow of resources will be required to settle it. Contingent assets are neither recognized nor disclosed.

1.8 Earning Per Share:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) 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 equity shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

1.9 Cash and Cash Equivalents:

Cash and Cash equivalents in the cash flow statement comprise cash at bank and in hand and..short term investments with an original maturity of three months or less.

2.1 Provision for deferred tax

No deferrd tax asset is accounted in books on the brought forward losses as there is no virtual certainity supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be rpalised.

3.1 Amalgamation of Mykindasite International Private Limited and Malvern Trading Private Limited with the company.


Mar 31, 2012

1.1 sasis of preparation of financial §tatementt;

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (".GAAP") under the historical cost convention, on the accrual basis of accounting and accounting standards issued by the central government in Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956 to the, extent applicable.

1.2 Use of Estimates;

The financial statements are prepared in accordance .with^fndian Generally Accepted Accounting

Principles ("GAAP") under the historical cost convention4; on the accrual basis of accounting and accounting standards issued by the central government in Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956 to the extent applicable.

1.3 Fixed Assets and Depreciation:

Fixed Assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and all attributable cost of bringing the asset to its working condition for its intended use. Depreciation on Fixed Assets has been provided on written down value method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

1.4 Revenue Recognition;

Revenue (income) is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following .specific recognition criteria must also be met before revenue is recognized:

Interest Revenue is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate.

1.5 Investments:

Long term investments are carried at cost with provision for diminution being made to recognise a decline, other than temporary, in their value. Such diminution is determined for each investment individually on the basis of the expected benefits to the company. However the exact quantum of benefits is dependent upon a number of future events, hence the provision for decrease in value of the investments is made on the basis of management's best estimates.

1.6 Taxes on income:

Tax expense comprises both current and deferred tax at the applicable enacted/ substantively enacted rates. Current tax represents the amount of income tax payable/ recoverable in respect of the taxable income/ loss for the reporting period. Provision for current tax is made on the basts of estimated taxable income for the current accounting period in accordance with the provisions of The Income tax Act, 1961. Deferred tax represents the effect of "timing differences" between taxable income and accounting income for the reporting period that originate in one period and capable of reversal in one or more subsequent periods. Deferred Tax Assets on unabsorbed Depreciation and brought forward losses are recoanised onlv on Virtual Certaintv.

1.7 Provisions and contingencies;

A provision is recognized when the Company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are disclosed when the Company has a possible or present obligation where it is not probable that outflow of resources will be required to settle it. Contingent assets are neither recognized nor disclosed.

1.8 Earning Per Share:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) 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 equity shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

1.9 Cash and Cash Equivalents; ;¦

Cash and Cash equivalents in the cash flow statement compare cash at bank and in hand and short- term investments with an original maturity of three months^ less.

1.10 Presenatation and disclosure of finanacial statements

During the year ended 31st March 2012, the revised schedule VI notified under the Companies Act 1956, has become applicable to the company, for preparation and presentation of its financial statements. The adoption of revised schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosure made in the financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.


Mar 31, 2011

A. Accounting Conventions:

The Company follows mercantile system of accounting and recognises Income and Expenditure on accrual basis. The accounts have been prepared under the historical cost convention and conform to the statutory provisions and practices prevailing in the industry. Accounting policies not referred to otherwise are consistent with generally accepted Accounting Principles.

B. Fixed Assets:

Fixed Assets are stated at cost less depredation.

C. Depreciation:

Depreciation on assets is provided on Written Down Value method at the rates and in the manner specified in Schedule XIV to the Companies Act 1956.

D. Long term investments are carried at cost with provision for diminution bang made to recognise a decline, other than temporary, in their value. Such diminution is determined for each investment individually on the basis of the expected benefits to the company. However the exact quantum of benefits is dependent upon a number of future events, hence the provision for decrease in value of the investments is made on the basis of management's best estimates.

E. Preliminary, Shares Issue and Other Expenditure on raising Capital are amortised equally over a period of ten years.

F. Income:

(a) Income from Information Technology Services & Software Development is accounted for on the basis of services rendered, software developed and billed to clients on acceptance.

(b) In respect of other heads of income the Company follows the practice of accounting of such income on accrual basis.

G. Employee Benefits

Contributions to defined contribution schemes such as Provident Fund and Family Pension Fund are charged to the profit and loss account as incurred. The Company also provides retirement/ post retirement benefits in the form of gratuity. Gratuity liability is determined on the basis of an actuarial valuation.

H. Taxation

Provision for Incomes tax Is made, after considering exemptions and deductions available, at the rates applicable under the Income-Tax Act, 1961. The deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the year) is recognised using current tax rates. Deferred tax assets are recognised only to the extent there is virtual certainty of realisation. Such assets are reviewed as at each Balance Sheet date to reassess realisation.


Mar 31, 2010

A. Accounting Conventions:

The Company follows mercantile system of accounting and recognises Income and Expenditure on accrual basis. The accounts have been prepared under the historical cost convention and conform to the statutory provisions and practices prevailing in the industry. Accounting policies not referred to otherwise are consistent with generally accepted Accounting Principles.

B. Fixed Assets:

Fixed Assets are stated at cost less depreciation.

C. Depreciation:

Depreciation on assets is provided on Written Down Value method at the rates and in the manner specified in Schedule XIV to the Companies Act 1956.

D. Long term investments are carried at cost with provision for diminution being made to recognise a decline, other than temporary, in their value. Such diminution is determined for each investment individually on the basis of the expected benefits to the company. However the exact quantum of benefits is dependent upon a number of future events, hence the provision for decrease in value of the investments is made on the basis of management's best estimates.

E. Preliminary, Shares Issue and Other Expenditure on raising Capital are amortised equally over a period of ten years

F. Income:

(a) Income from Information Technology Services & Software Development is accounted for on the basis of services rendered, software developed and billed to clients on acceptance.

(b) In respect of other heads of income the Company follows the practice of accounting of such income on accrual basis.

G. Employee Benefits

Contributions to defined contribution schemes such as Provident Fund and Family Pension Fund are charged to the profit and loss account as incurred. The Company also provides retirement/ post retirement benefits in the form of gratuity. Gratuity liability is determined on the basis of an actuarial valuation.

H. Taxation

Provision for Income tax is made, after considering exemptions and deductions available, at the rates applicable under the Income-Tax Act, 1961. The deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the year) is recognised using current tax rates. Deferred tax assets are recognised only to the extent there is virtual certainty of realisation. Such assets are reviewed as at each Balance Sheet date to reassess realisation.

I. Foreign Currency Transactions

Sales and Purchases are generally recorded at the ruling rates on the transaction date. Foreign currency assets and liabilities are restated at rates ruling at the year end and the difference is recognised in the Profit & Loss Account. Exchange difference relating to fixed assets is adjusted in the cost of the assets. Any other exchange differences are dealt with in the Profit & Loss Account.

 
Subscribe now to get personal finance updates in your inbox!