Accounting Policies of Omni Ax's Software Ltd. Company

Mar 31, 2024

2. SIGNIFICANT ACCOUNTING POLICIES

3. Basis of Preparation of Financial Statements:

These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter
referred to as the ''Ind AS'') as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies
Act, 2013 (''the Act'') read with the Companies (Indian Accounting standards) Rules as amended from time to time
and other related provisions of the Act.

The financial statements of the Company are prepared on the accrual basis of accounting and Historical cost
convention except for the following material items that have been measured at fair value as required by the
relevant Ind AS:

4. Certain financial assets and liabilities are measured at Fair value (Refer note no. 5 below)

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.

5. 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.

Estimation of current tax expenses and payable - Refer note no. - 17

6. Functional and Presentation Currency

The functional and presentation currency of the company is Indian rupees. This financial statement is presented
in Indian rupees.

All amounts disclosed in the financial statements and notes are rounded off to lakhs the nearest INR rupee in
compliance with Schedule III of the Act, unless otherwise stated.

Due to rounding off, the numbers presented throughout the document may not add up precisely to the totals and
percentages may not precisely reflect the absolute figures.

7. 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, Plant 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.

8. Current and Non - Current Classification

An asset or a liability is classified as Current when it satisfies any of the following criteria:

i. It is expected to be realized / settled, or is intended for sales or consumptions, in the Company''s Normal
Operating Cycle;

ii. It is held primarily for the purpose of being traded.

iii. It is expected to be realized / due to be settled within twelve months after the end of reporting date;

iv. The Company does not have an unconditional right to defer the settlement of the liability for at least
twelve months after the reporting date.

All other assets and liabilities are classified as Non - Current.

For the purpose of Current / Non - Current classification of assets and liabilities, the Company has ascertained
its operating cycle as twelve months. This is based on the nature of services and the time between the
acquisition of the assets or liabilities for processing and their realization in Cash and Cash Equivalents.

9. Financial Instruments:

Financial assets

Financial assets are recognized when the Company become a party to the contractual provisions of the
instruments.

Derecognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial
asset expire, or it transfers rights to receive cash flows from an asset, it evaluates if and to what extent it has
retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the
risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the
transferred asset to the extent of the Company''s continuing involvement. In that case, the Company also
recognises an associated liability. The transferred asset and the associated liability are measured on a basis that
reflects the rights and obligations that the Company has retained.

Financial Liabilities

Initial Recognition measurement

Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the
instruments. Financial liabilities are initially recognised at fair value net of transaction costs for all financial
liabilities not carried at fair value through profit or loss.

The Company''s financial liabilities includes trade and other payables.

Subsequent Measurement

Financial liabilities measured at amortised cost are subsequently measured at using EIR method. Financial
liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value
recognised in the Statement of Profit and Loss.

Financial Guarantee Contracts Financial guarantee contracts issued by the Company are those contracts that
requires a payment to be made or to reimburse the holder for a loss it incurs because the specified debtors fails
to make payment when due in accordance with the term of a debt instrument. Financial guarantee contracts are
recognized initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the
issuance of the guarantee.

De-recognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms,
or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the
derecognition of the original liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognized in the statement of profit or loss.

Offsetting of Financial Instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet if there is
a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net
basis, to realise the assets and settle the liabilities simultaneously.

10. Fair Value Management

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:

11. 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
explained above.

12. Inventory

Inventories are valued at the lower of cost and net realisable value. Cost is computed on a weighted average
basis.

13. Cash and Cash Equivalents

Cash and Cash equivalents include cash and Cheque in hand, bank balances, 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.

14. Foreign Currency Transactions- Nil

15. Revenue Recognition
Rendering 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 tax
(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

Dividend Income is recognized when right to receive the same is established

16. Employee Benefits

Employee Benefits: - The Company does not fall within the applicability of Employee benefit plans.

17. 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 is 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
and belongs to prior years.

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.

18. 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 those 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.

19. 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.

20. 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.

---

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.