NOTE 1: Significant Accounting Policies & Notes to Accounts
1 Corporate information/ Overview
Olatech Solutions Limited is a public limited company, incorporated in the year 2014. Company is engaged in IT, telecom, and enterprise software
solutions in the OSS/BSS space—network monitoring (NOC tools), AAA systems, data-center infrastructure management (DCIM), ERP/CRM, cloud
services, and digital marketing (SEO, SEM, SMM, AdWords, ORM, web/mobile development, media buying).
2 Significant accounting policies
(i) Basis of accounting and preparation of financial statements
These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) including
the Accounting Standards notified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and
the relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention on accrual
(ii) Use of Estimates
The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting
period. Although these estimates are based on the management’s best knowledge of current events and actions, uncertainty about these
assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future
(iii) Revenue recognition
Expenses and Income considered payable and receivable respectively are accounted for on accrual basis. Revenue 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.
(iv) Property, Plant & Equipment and Depreciation
Property, Plant & Machinery are stated at Cost, net of recoverable taxes, trade discount & rebates less accumulated depreciation & impairment
losses, if any. Such Cost includes Purchase Price, Borrowing Cost & any other cost directly attributable to bringing the assets to its working condition
for its intended use, net charges on foreign exchange contracts & adjustments arising from exchange rate variations attributable to the assets.
Depreciation is provided on WDV method by estimating the useful life of the assets at the rates/useful life prescribed in the manner specified in
Schedule II of Companies Act, 2013. Management has made separate disclosures for the same. Management has estimates the useful lives for
fixed assets as follows:-
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