Home  »  Company  »  Omni Ax's Software  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Omni Ax's Software Ltd. Company

Mar 31, 2014

A) Basis of preparation

The Financial Statements have been prepared in accordance with the generally accepted accounting principles on accrual basis and comply with the accounting standards referred to in section 211 (3C) of the Companies Act, 1956 as adopted consistently by the company. The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis. The estimates and assumption used in these financial statements are based upon the management''s evaluations of the relevant facts and circumstances as of the date of the financial statements.

b) Revenue recognition

Revenue is recognised on transfer of significant risk and reward that can be reliably measured and there exists no significant uncertainty in its ultimate realisation. Revenue from software development is recognized based on software developed or man-hours spent as per specific terms of contracts. Income from interest on loans forming part of other income is recognized on accrual basis.

c) Fixed Assets

Fixed assets are stated at historical cost less accumulated depreciation. Cost includes all cost incurred to bring the asset to itsr working condition for its intended use.

d) Depreciation

Depreciation on fixed assets is provided on Straight Line Basis at the rates prescribed in schedule XIV to the Companies Act, 1956.

e) Taxes on Income

The Company makes necessary provision for Income Tax, taking into account the allowances and exemptions admissible under the Income Tax Act, 1961. Deferred Tax resulting from "timing difference" between book and tax profits is accounted for at the current rate of tax. Deferred Tax asset is recognised to the extent they are expected to crystallize in future.

f) Investments

Long-term investments are stated at cost and any decline, other than temporary, in the value of such investments, is charged to the Profit and Loss Account. Current investments are stated at lower of cost and market value.

g) Impairment

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit & Account in the year in which an asset is identified as impaired. In case of a change in recoverable value, impairment loss is reversed immediately. Based on available information there is no impairment of asset estimated during the year.

h) Miscellaneous Expenditure

Represents preliminary expenses amortized over a period of time. Public issue expenses are written off over a period of ten years. ROC fees for filing authorized capital which is not considered as revenue expenditure and is amortized over the period of five years.

i) Segment Report

Currently the company is engaged in development of software, which as per Accounting Standard -17 is considered as the only reportable business.

j) Deferred Tax

In accordance with Accounting Standard 22 (Accounting of Taxes on Income) issued by the Institute of Chartered Accountants of India , Deferred Tax liability/ (Asset) attributed to timing difference relating to depreciation has been recognized at Rs.12,421/- as on 31.03.2014 (Rs. 9,442 /- as on 31.03.2013) Deferred Tax Asset.

k) Employee Benefits

Short term benefits are charged off to the Profit & loss account in the year of rendering of services. The number of employees was less than10 during the year under review and hence it is reported that payment of Contribution/ Benefit Plan are not applicable to this Company.


Mar 31, 2013

A) Basis of preparation of financial statements

The Financial Statements have been prepared in accordance with the generally accepted accounting principles on accrual basis and comply with the accounting standards referred to in section 211 (3C) of the Companies Act, 1956 as adopted consistently by the company. The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis. The estimates and assumption used in these financial statements are based upon the management''s evaluations of the relevant facts and circumstances as of the date of the financial statements.

b) Revenue recognition

Revenue from software development is recognized based on software developed or time spent in person hours or person weeks and billed to customers as per the terms of specific contracts. Revenue from software development services comprises income from time and materials and fixed price contracts. Revenue is recognized in accordance with the terms of the contract with the customer. Revenue with respect to time-and material contracts is recognized as related services are performed. Revenue from fixed-price contracts is recognized in accordance with the percentage of completion method. Income from services is recognized on accrual basis. Service Income do not include Service Tax which is treated as a liability. Income from interest on loans forming part of other income is recognized on accrual basis.

c) Fixed Assets

Fixed assets are stated at historical cost less accumulated depreciation.

d) Depreciation

Depreciation on fixed assets is provided on Straight Line Basis at the rates prescribed in schedule XIV to the Companies Act, 1956. The expenditure incurred towards the acquisition of Assets for Research and Development have been capitalized and no depreciation has been provided for. Depreciation is provided on Assets sold up to the point of sale. Depreciation on Additions to fixed assets are provided on pro rata basis from the date of purchase up to 31st march 2013

e) Taxes on Income

The Company will make necessary provision for Income Tax, taking into account the allowances and exemptions under the Income Tax Act, 1961.Deferred Tax resulting from timing difference between book and tax profits is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected to crystallize.

f) Investments

Investments are classified as long-term investments and current investments. Long-term investments are stated at cost and any decline other than temporary, in the value of such investments is charged to the Profit and Loss Account. Current investments are stated at lower of cost and market value. All Investments are held in the name of the company. As on date of the Balance Sheet all investments made by the companies are long term investments only.

g) Impairment

At each balance sheet date, the Company reviews the carrying amounts of its fixed assets to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a Pre-tax discount rate that reflects the current market assessments of time value of money and the risks specific to the asset.

Reversal of impairment loss is recognized immediately as income in the profit and loss account.

h) Miscellaneous Expenditure represents preliminary expenses amortized over a period of ten years and public issue expenses to be written off over a period of ten years. The Filing fees to ROC in authorized capital which is not considered as revenue expenditure and is amortized over the period of five years.

i) Currently the company is engaged in development of software, which as per Accounting Standard – 17 is considered as the only reportable business.

j) Deferred Tax

In accordance with Accounting Standard 22 (Accounting of Taxes on Income) issued by the Institute of Chartered Accountants of India , Deferred Tax liability/ (Asset) attributed to timing difference relating to depreciation has been recognized at (Rs.9,442/-) as on 31.03.2013 (Rs. 52,019 /- as on 31.03.2012) Deferred Tax Asset.

Depreciation as per Books Rs. 1,03,004

Depreciation as per IT Act Rs. 75,152

Tax on the Timing Difference Rs. 9,442 (Net Deferred Tax)

k) Short Term employee benefits are charged off to the Profit & loss account in the year of rendering of services. The no. of employees were less than 50 during the year under review and hence it is reported that payment of Contribution/ Benefit Plan are not applicable to this Company.


Mar 31, 2011

A) Basis of preparation of financial statements

The Financial Statements have been prepared in accordance with the generally accepted accounting principles on accrual basis and comply with the accounting standards referred to in section 211 (3C) of the Companies Act, 1956 as adopted consistently by the company. The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis. The estimates and assumption used in these financial statements are based upon the management's evaluations of the relevant facts and circumstances as of the date of the financial statements.

b) Revenue recognition

Revenue from software development is recognized based on software developed or time spent in person hours or person weeks and billed to customers as per the terms of specific contracts.

Revenue from software development services comprises income from time and materials and fixed price contracts. Revenue is recognized in accordance with the terms of the contract with the customer. Revenue with respect to time-and material contracts is recognized as related services are performed. Revenue from fixed-price contracts is recognized in accordance with the percentage of completion method. Income from services is recognized on accrual basis. Service Income do not include Service Tax which is treated as a liability. Income from interest on loans forming part of other income is recognized on accrual basis.

c) Fixed Assets

Fixed assets are stated at historical cost less accumulated depreciation.

d) Depreciation

Depreciation on fixed assets is provided on Straight Line Basis at the rates prescribed in schedule XIV to the Companies Act, 1956. The expenditure incurred towards the acquisition of Assets for Research and Development have been capitalized and no depreciation has been provided for. Depreciation is provided on Assets sold up to the point of sale. Depreciation on Additions to fixed assets are provided on pro rata basis from the date of purchase up to 31st march.

e) Taxes on Income

The Company will make necessary provision for Income Tax, taking into account the allowances and exemptions under the Income Tax Act, 1961.Deferred Tax resulting from timing difference between book and tax profits is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected to crystallize.

f) Investments

Investments are classified as long-term investments and current investments. Long- term investments are stated at cost and any decline other than temporary, in the value of such investments is charged to the Profit and Loss Account. Current investments are stated at lower of cost and market value. All Investments are held in the name of the company. As on date of the Balance Sheet all investments made by the companies are long term investments only.

g) Impairment

At each balance sheet date, the Company reviews the carrying amounts of its fixed assets to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an asset's net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a Pre-tax discount rate that reflects the current market assessments of time value of money and the risks specific to the asset.

Reversal of impairment loss is recognized immediately as income in the profit and loss account.


Mar 31, 2010

A) Basis of preparation of financial statements

The Financial Statements have been prepared in accordance with the generally accepted accounting principles on accrual basis and comply with the accounting standards referred to in section 211 (3C) of the Companies Act, 1956 as adopted consistently by the company. The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis. The estimates and assumption used in these financial statements are based upon the managements evaluations of the relevant facts and circumstances as of the date of the financial statements.

b) Revenue recognition

Revenue from software development is recognized based on software developed or time spent in person hours or person weeks and billed to customers as per the terms of specific contracts.

Revenue from software development services comprises income from time and materials and fixed price contracts. Revenue is recognized in accordance with the terms of the contract with the customer. Revenue with respect to time-and material contracts is recognized as related services are performed. Revenue from fixed-price contracts is recognized in accordance with the percentage of completion method. Income from services is recognized on accrual basis. Service Income do not include Service Tax which is treated as a liability. Income from interest on loans forming part of other income is recognized on accrual basis.

c) Fixed Assets

Fixed assets are stated at historical cost less accumulated depreciation. Capital Work-in- Progress represents Development of Software unfinished.

d) Depreciation

Depreciation on fixed assets is provided on Straight Line Basis at the rates prescribed in schedule XIV to the Companies Act, 1956. The expenditure incurred towards the acquisition of Assets for Research and Development have been capitalized and no depreciation has been provided for. Depreciation is provided on Assets sold up to the point of sale. Depreciation on Additions to fixed assets are provided on pro rata basis from the date of purchase up to 31st march.

e) Taxes on Income

The Company will make necessary provision for Income Tax, taking into account the allowances and exemptions under the Income Tax Act, 1961.Deferred Tax resulting from timing difference between book and tax profits is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected to crystallize.

f) Investments

Investments are classified as long-term investments and current investments. Long-term investments are stated at cost and any decline other than temporary, in the value of such investments is charged to the Profit and Loss Account. Current investments are stated at lower of cost and market value. All Investments are held in the name of the company. As on date of the Balance Sheet all investments made by the companies are long term investments only.

g) Impairment

At each balance sheet date, the Company reviews the carrying amounts of its fixed assets to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an assets net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a Pre- tax discount rate that reflects the current market assessments of time value of money and the risks specific to the asset.

Reversal of impairment loss is recognized immediately as income in the profit and loss account.

 
Subscribe now to get personal finance updates in your inbox!