CHAPTER:1 

   
INTRODUCTION TO THE COMPANY:  
   
 
 
OMEGAON INTERNET PRIVATE LIMITED 
 
Omegaon  Internet  Private  Limited is a Private incorporated on 21 March 2016. It is classified 
as  a  Non-Government  company  and  is  registered  at  the  Registrar  of  Companies,  Bangalore. 
Its authorized share capital is Rs.1,000,000 and its paid-up capital is Rs.100,000.It is involved 
in Business activities n.e.c. 
 
Omegaon  Internet  Private  Limited’s  Annual  General  Meeting(AGM)  was  last  held  on  29 
September  2018  and  as  per  records  from  Ministry  of  Corporate  Affairs(MCA),  its  balance 
sheet was the last filed on 31 March 2018. 
 
Directors of Omegaon Internet Private Limited are Sreekanth Eragadindla, Gowdvarti Vinay. 
 
Omegaon Internet Private Limited’s Corporate Identification Number (CIN) 
U74900KA2016PTC087119  and  its  registration  number  are  87119.  Its  Email  address  is 
shriandkate@gmail.com  and  its  registered  address  is  4th  Floor  , No.22, Salarpuria Towers-1, 
Hosur Road, Koramangala, Bengaluru 
Banglore KA 560095 IN,-,. 
 
Current status of Omegaon Internet Private Limited is-Active 
   
   
 
 
 
  
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
Company Details 
 
CIN U74900KA2016PTC087119 
 
Company Active 
Status 
 
RoC RoC-Bangalore 
 
Registration 87119 
Number 
 
Company Company Limited by Shares 
Category  
 
Company Non-Government Company   
Sub Category 
 
Class of Private 
Company 
 
Date of 21 March 2016 
Incorporation 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
INTRODUCTION TO UPI (Unified Payments Interface) 
   
Unified  Payments  Interface  (UPI)  is  an  instant  real-time  payment  system  developed  by  the 
National  Payments  Corporation  of  India  facilitating  inter-bank  transactions.  The  interface  is 
regulated  by  the  Reserve  Bank  of  India  and  works  by  instantly  transferring  funds  between 
two bank accounts on a mobile platform. 
 
Product type: instant real-time interbank paytm. 
 
The  letter  written  by  Mark  Isakowitz,  Vice  President,  Government Affairs and Public Policy, 
Google  USA  and  Canada,  said,  “UPI  was  thoughtfully  planned  and  critical  aspects  of  its 
design  led  to  its  success.  First,  UPI  is  an  interbank  transfer  system  (there  are  now  over  140 
member  banks,  after  initially  launching  with  9  participating  banks).  Second,  it  is  a  real-time 
system.  Third,  it  is  “open”-meaning  technology  companies  can  build  applications  that  help 
users directly manage transfers into and out of their accounts held at banks.” 
 
It  further  added,  “The  approach  in  India attained amazing results for banks, consumers, other 
players  within  the  payment  ecosystem  and  India’s  central  bank.  Adoption  of  the  system  was 
rapid,  growing  from  100,000  monthly  transactions,  to  77  million,  to  480  million,  to  1.15 
billion  monthly  transactions  in  the  first  four  years.  After  just  three  years,  the  annual  run rate 
of  transactions  flowing  through  UPI  is  about  10  percent  of  India’s  GDP,  including  800 
million transactions valued at approximately $19 billion.” 
 
In  August  this  year,  the  board of governors of the Federal Reserve published a paper where it 
proposed  to  develop  a  new  inter-bank  24x7  real-time  gross  settlement  service,  which  would 
support faster payments in the US. 
 
Google  has  also  shared  details  of  its  learnings  from  the  UPI  of  India  to  the Federal Reserve. 
One  of  the  learnings  that  it  shared  was  about  partnering between government and industry to 
grow the ecosystem. 
 
UPI  was  launched  in  December  2016.  Since  then  148  public  and  private  sector  banks, 
regional  rural  banks  and  cooperative  banks  have  been  offering  payment  services  through the 
UPI platform. 
 
There  are  48  different  mobile  apps  that  work  on  the  UPI  platform  and  offer  digital  payment 
services  on  a  real-time  basis in India. Google Pay, PayTM, Phone Pay, Bharat Pay, BHIM are 
some of the most popular digital payment apps that use the UPI platform 

 
 
 
 
 
1) So, What Is UPI? 
The  Unified Payment Interface (UPI) can be thought of as an email ID for your money. It will 
be  a  unique  identifier  that  your  bank  uses  to  transfer  money  and  make  payments  using  the 
IMPS  (Immediate  Payments  Service).  IMPS  is  faster than NEFT and lets you transfer money 
immediately  and  unlike  NEFT,  it  works  24×7.  This  means  that online payments will become 
much easier without requiring a digital wallet or credit or debit card. 
 
2) Who is behind UPI? 
Unified  Payment  Interface  is  an  initiative  by  the  National  Payments  Corporation  of  India’s 
(NPCI),  set  up  with  the  support  of  the  Reserve  Bank  of  India  and  the  Indian  Banks 
Association  (IBA). The NCPI operates the Rupay payments infrastructure that – like Visa and 
MasterCard – allows different banks to interconnect and transfer funds. 
 
3) How Does UPI Work? 
Currently,  if  you  want  to  make  a  bank  payment  online,  you  have  to  enter  their  account 
number,  account  type,  Bank  name,  and  IFSC  code.  Even  if  you  have  all these details, typing 
it  all  in,  particularly  on  a  phone, is a painful process. Most banks take up to 12 hours to add a 
new payee and only then you can make the transfer. 
 
The  idea  behind  the  UPI  is  to  do  away  with  all  of  this.  The  interface  will  allow  account 
holders  across  banks  to  send  and  receive  money  from  their  smartphones  using  just  their 
Aadhaar unique identity number, mobile phone number or virtual payments address 
 
4) What I can do with UPI? 
UPI  will  simplify your online payments. Now, we have to use NEFT, IMPS or a digital wallet 
such  as  MobiKwik  or Paytm to make a quick payment to the service providers. With the UPI, 
you  simply need to enter your details and get a billing request on your phone – which you can 
accept or reject right away. 
 
Taxi  aggregators  like  Uber  and  Ola,  food  ordering  services  like  Zomato  and  FoodPanda, 
online  grocery  shops  like  Big Basket will be able to take advantage of the UPI system. Going 
forward,  such  companies  should  be  able  to  register  its  identifier  on  the  UPI  system  and 
receive  funds  from  a  customer’s  bank  account  through  the  UPI.  Most  of  the  similar  tech 
companies are now banking on mobile wallets. without entering bank account details. 
 
5) What will happen to mobile wallets? 
This  is  a  burning  question  asked  by  most  of  the  industry  watchers  every  since  UPI  was 
launched. Mobile wallet companies were worried and there is a reason for that. 

 
The  RBI  has  allowed  banks  to  become  Payment  Service  Providers  of  UPI  service,  keeping 
mobile  wallets  out  of  the  service.  So,  UPI  has  come  as  a  boon  for  banks  whicH  were  loose 
ground  to  mobile  wallets  like  PayTM,  Freecharge,  Mobikwik,  Oxigen  in Citrus Pay. Though 
mobile  wallets have been urging the banking regulator to include them as service providers, it 
has not relented so far. 
 
I  think  popular  mobile  wallets  like  PayTM  that  have good customer base can still keep using 
it  for  quick  recharges  and  movie  tickets.  Cashback  offers  can  keep  them  hooked  to  the 
platform a little longer. 
 
B.INTRODUCTION TO DIGITAL PAYMENTS 
 
Payments: What they are, How they Work, and their Benefits and Problems 
In  recent  months,  all  of us have heard extensively about the “war on cash”, the move to make 
India  and  other  countries  “cashless  economies”  and  the  general  trend  among  policymakers 
worldwide  to  move  the  economies  of  the  world  to  a  digital  and  Information  enabled 
paradigm. 
 
In  this  context,  it  is  worth  noting  that  the  emphasis  laid  on  digital  payments  and  the 
digitization  of  commerce has implications for individuals, businesspersons, governments, and 
anyone and everyone who is a participant in the economy. 
 
Thus,  it  is  important  to  understand  what  digital  payments  and  how  they  work  and  how  they 
benefit  the  economy  as  well as the associated problems that accrue from using such modes of 
transactions and commercial dealings. 
 
Digital  Payments  are  payments  that  are  conducted  over  the  internet and mobile channels and 
hence,  any  payment  that  is  sent  online  or  through  mobile  computing  and  internet-enabled 
devices can be called such. 
 
This  means  that  for  digital  payments  to  take  place,  the  sender  of  the  payment  must  have  a 
bank  account,  an  online  banking  method,  a  device  from  which  he  or  she  can  make  the 
payment,  and  a  medium  of  transmission  meaning  that  either  he  or she should have signed up 
to  a  provider  or an intermediary such as a bank or a service provider. We will come to the last 
part in a bit. 
 
Apart  from  the  sender  having  such  means,  the  receiver  of  the  payment  too  must  have  these 
ways  to  accept  payments.  This  means  that  there  must  be  a  medium  of  transmission  between 
the  sender  and  the  receiver  wherein  the  former  instead  of  paying  the  latter  in  cash  and 
physical  format pays in digital format, meaning that the transaction happens over eCommerce 
or mCommerce modes of transmission. 
 

 
Finally,  digital  payments  are  an  evolutionary  step  towards  the  “business  at  the  speed  of 
thought”  model  that pioneers such as Bill Gates have always predicted would be the next step 
in  our  move  from  physical  to  digital  and  hence,  despite  the  challenges  and  doubts,  one must 
indeed take steps to move towards it. 
 
Having  said  that,  there  is  also  a  case  to  be  made  for  proceeding  gradually  instead  of  the 
“shock therapy” and “big bang” method that has been pushed without adequate preparation. 
 
 
 
 
INTRODUCTION TO OMAGA PAY: 
 
 
Preplan Your Investments 
Determine  which  amount  you  are  willing  to  invest  and  find  out  how  much  cryptocurrency 
you can purchase. 
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Terms & Conditions 
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Stay  safe  and  protected  when  you  purchase  Bitcoins  with  OmegaPay,  as  your  purchases  are 
protected by our Terms of Service policy. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
INTRODUCTION TO THE TOPIC: 
  
CASH FLOW STATEMENT (Inflow And Outflow)  
 
 
1. Cash  flow  statement  is  a  statement  which  shows  the  sources  of  cash  inflow  and  uses 
of  cash out-flow of the business concern during a particular period of time. “cash flow 
statement,  also  known  as  statement  of  cash  flows  is  a  financial  statement  that  shows 
how  changes  in  balance  sheet  accounts  and  income  affect  cash  and  cash  equivalents, 
and breaks the analysis down to operating, investing, and financing activities.” 
 
2. To  provide  information  about  the  cash  inflows  and  cash  outflows  from  operating, 
financing and investing activities of the firm.  
 
3.   To  show  the  impact  of  the  operating,  financing  and  investing  activities  on  cash 
resources.  
 
4. To explain the causes for changes in cash balance.  
 
5.   To  identify  the  financial  needs  and  help  in  forecasting  future  cash  flows.  Objectives 
Of Study. 
 
6. Importance  of  Study  This  Project  will  help  company  to  find  it’s  weakness  and 
strength,  and  also  the  areas  where  they  can  improve.  It  will  help  company  to  decide 
the  future  direction  of  the  company.  It  will  help  the  company  in  improving  its 
financial  position.  It  gave me the opportunity to apply theoretical knowledge obtained 
from college in a practical manner in the actual business environment. 
 
7. LIMITATIONS OF STUDY Cash flow statement cannot replace the income statement 
or  the  fund  flow  statement.  Each  of them has a separate functions to perform. Being a 
vast  topic  it  is  not  possible  to  cover  all  the  matters  and  aspects  related  to  analyzing 
financial  statements.  Cash  flow  statement  cannot  be  equated  with  the  income 
statement.  The  data  undertaken  is  of last two years , therefore we fail to get the whole 
financial history of the organization. 
 
8. Scope of Cash Flows Statement  
1. Cash flow is a financial statement that presents information about the company's. 
  2.  The  general  form  of  the  cash  flow  statement  shows three categories, namely: cash 
flow  from  operating  activities,  cash flows from investing activities & cash flows from 
financing activities.  

 
 3.  Operating  activities  are  the  principal  revenue-producing  activities  of  the  company 
and other activities that are not investing activities and financing activities. 
  4.  Investment  activity  is  the  acquisition  and  disposal  of  long-term  assets  and  other 
investments that do not include cash equivalents. 
 
1. Importance of cash flow  
 
  *The  statement  cash  flow  is  based  upon,  to  get  the  information  about  the  cash  receipts  and 
cash payments during a period 
*The preparation of cash flow statement is very much useful to management.  
* It is one of the three main financial statements  
a) Balance sheet. 
b) Income statement  
c) Cash flow statement. 
1.   Needs  of  cash  flow  Statement  1)  Knowledge  Of  Magnitude  :  -  The  cash  flow 
statements  provide  us  information  regarding  cash  generated  and  used  in  operating, 
investing  and  financing  activities.  2)  Tool Of Planning : - Cash flow statement is used 
as  the  basis  for  projection  of  future  investment  and  financing  plans  of  enterprise  by 
management.  3) Tool Of Historical Analysis :- The financial decision taken in the past 
can be evaluated on the basis of information supplied by cash flow statement. 
2. Types  of  Cash  Flow  Activities  1.  Operating  activities:-  Involve  the  cash  effects  of 
transactions  that  enter  into  the  determination  of  net  income.  2.  Investing  activities:- 
Concern  with  buying  and  selling  property,  plant  and  equipment.  3.  Financing 
activities:  -  Include  issuance  and  reacquisition  of  a  firm's  debt  and  capital  stock,  and 
dividend 
3.   From  sale  of  goods  and  services  to  customers.  Payment  of  employee  benefit 
expenses.  Receipt  from  royalties,  fees,  commissions  and  other  revenues.  Pay 
operating  expenses.  Payment  of  taxes.  Operating  Activities  Sale  of  property,  plant, 
Equipment,  long-term  investments.  Receipt  from  Interest  and  dividends.  Investing 
Activities  Purchase  of  property,  plant,  equipment  and  non-current  investments. 
Proceeds  from  issue  of  preference  or  equity  shares.  Proceeds  from  Issuance  of 
Debts/Bonds.  Redemption  of  preference  shares,  buy  back  of  equity  shares.  Payment 
of  dividends  and  interest. Procurement of loans. Financing Activities Classification of 
Cash inflows and Cash Outflows Activities 
9.  Research  Methodology  Method  of  Data  Collection  1.  Primary  Data  Collection:-  2. 
Secondary Data Collection 
 
 
 
 
 

 
 
 
CASH  FLOW  STATEMENT(To  Understand  Cash  Flow  Of  The  Company 
Payments) 
 
a.Revenue Stream 
b.Expenses 
c.Licensing Fee 
d.Compliances 
 
 
● STATEMENT OF THE PROBLEM: 
   
PROBLEM AND SOLUTION  
 
1.Cash vs Cashless 
 
  1.Table  of  Contents  •  Cash  economy  •  Advantages  •  Disadvantages  •  Demonetization 
effect  •  Survey  •  Cashless  economy  •  Advantages  •  Disadvantages  •  Government  launches  • 
Conclusion  Cash  Economy  •  Paper  money  and  coins  •  No  electronic  payments • Universally 
accepted  •  Hassle-free  •  No  internet  or  fingerprint  required  •  Only  one  wall•  Before 
demonetization,  86%  cash  in  India  was  in  the  form  of 1000 and 500 rupee notes. • It cost the 
central  bank  Rs.3917  crore  to print Rs. 500 notes and Rs. 2000 crore to print Rs.1000 notes. • 
Manufacturing  of  coins  cost  a  lot  to  government  of  India  as  the  value  of  metal  of  one  rupee 
coin  is  70  paisa  when  melted,  so  more  care  is  to  be  taken.  •  Total  cost  is  approx.  Rs.12  per 
transaction  which  included  the  cost  of  insurance and dispensing cash at ATMs. Notes Cost of 
printing(Rs)  2000  4.72  1000(old)  4.06  500(old)  3.58  50  1.80  20  1.50  5  .  Advantages  • 
Interchangeability:-  Cash  is  interchangeable.  You  don’t  need  a  connection,  an  application  or 
an  account  to  exchange  cash.  •  2.Merchant  cost:-  No  merchant  cost  as  merchant  needs  a 
working  internet  connection  to  accept  digital  payments  .Before  demonetization,  on  debit 
cards,  they  need  to  pay  0.75%  per  transaction  below  Rs.2000  and  1%  for  transaction  above 
Rs.  2000.  •  Language  compatibility:-  As  many  of  the  apps  don’t  have  an  Indian  language 
interface  and  there  is  a  part  of  the  population  in  India  which  still  isn’t  able  to read and write 
English language but physical notes are a visual medium of exchange. 
 
2.  Disadvantages  •  At an individual level, cash is inconvenient to carry and manage. It cannot 
be  traced  or  insured  as  cash  once  lost  or  stolen  cannot  be  recovered.  •  Cash  is  expensive  to 
print,  inspect,  move,  store  and  guard.  •  Monitoring  of  tax  compliance  is  difficult  for  the 
government.  •  Cash  transactions  are  not  trackable  in  nature,  thus  providing  no  transparency. 
This leads to corrupt practices and financial crimes.  Terrorism is strengthened due to infusing 
of fake currency. 

 
 
3.  Effect  of  Demonetization  on  India  •  Cash  collected  by  banks  is  Rs.  8,00,000  crore  in 
November  2016.  •  Cash  deposited  in  Jan  Dhan  accounts  is  Rs. 27,000 crore, average weekly 
deposits  rose  3200%  in  two  weeks  since  November  9, 2016. • Before demonetization around 
350  million  debit  card  and  29  million credit cards are in use. • Unable to find ways to change 
black  money  to  white  money,  people  let  the  ill-gotten wealth flow into rivers or burn/destroy 
old  notes  •  Bonanza  for  some;  maids,  servants,  drivers  etc.  paid  for  up  to  six  months  in 
advance . • Both online and offline retailers can’t find customer due to shortage of notes. 
 
4.  Cashless  Economy  Boosted  by  Demonetization  •  NO  CASH  –  scenario  boosted  cashless 
payments  in  the  last  three  months.  •  Paytm  has  touched  a  record  5 million transactions a day 
and  is  on  the  way  to  processes  over  USD  240  Billion.  •  Over  28,50,000  offline  merchant 
across  India  accept  paytm.  •  The  highest  increase  in  usage  was seen in Chennai, followed by 
Ahmedabad,  Hyderabad,  Kolkata  and  Bangalore.  •  More  than  8,00,000  merchants  procured 
swipe machines. 
5.Survey  by  Indian  Express  Cashless  Economy  •  No  paper  money  or  coins.  •  Everything  is 
electronic.  •  Payment  via  E-wallets.  •  NEFT-  National  electronic  fund  transfer  •  EPS- 
Electronic payment system • Fingerprints • Smart cards/ microchips 
*  Advantages  •  No  need  to  carry cash. • Save from thieves:- Carrying a small card is enough. 
•  Through  e-payment,  every  single  expense  will  be  recorded  in  your  bank  statement  or 
e-wallet.  • E-payments also solve the problem of change. • Banks are likely to be in favor of a 
cashless  society  as  it  saves  them the cost of printing, inspecting, storing and guarding money. 
Cost  also  includes  the  security  and  labor  involved  in  processing  and  transporting.  • 
Monitoring of tax compliance is easy for the government. 
*  Disadvantages  •  Only  34.8%  of  population  has  access  to  the  internet  (even  after  digital 
India  campaign).  •  392.2 million customers are still using 2G network because of which 6 out 
of  10  transactions  fail  due to low speed on 2G connectivity. • Only 90 million people have 4g 
mobile  and  LTE  enabled.  •  Language  compatibility:-  Apart  from  a  few  companies,  no 
e-commerce  company  tried  going  the  Indian  language  way.There’s  part  of  the  population  in 
India  which  still  isn’t  able  to read and write, let alone being able to read and write in English. 
•  Making  digital  payments  is  costlier  either  for  the  merchant  or  the  customer or both. • Time 
taken  for  a  transaction:-  If  you  have  driven  through  a  toll  boot  and  transaction  is  in  process, 
then  because  of  low  connectivity  there  will  be  problems  with  both  customer  and  the 
merchant. 
6.  Encouraging  Cashless  Transactions  •  Giving  an  indirect  tax  rebate  for  using  cashless 
methods  of  payment  which  brings  parity  between  cash  and  cashless.  Even  online, merchants 
can  be  incentivized  to  charge  less  for  digital  payments  and  more  for  cash  on  delivery.  • 
Digital  Payments  businesses  have  tried  their  hand  with  cashbacks  and  lower  rates  for  digital 
purchases  have  already  encouraged  digital  payments. Incentives could be given to businesses 
which they can transfer to customers. • The government’s initiative to scrutinize large  
cash  transactions  and  demand  PAN  cards  and  IDs  will  keep  on  discouraging  cash 
transactions.Launched by govt. to promote digital payment 

 
7.  •  Cash might be more expensive for the government because of tax evasion, corruption and 
the  need  to  keep  recirculating  old,  spoilt  currency  and  enabling  transfers  but digitalization is 
very  expensive  for  citizens.  What  is  happening  here  is  a  transfer  of  cost  of  money  from 
government  to  citizens  and  a  massive  collection  of  data.  •  The  idea  to  force  people  into 
adopting  cashless  payments  is  foolish  and  unnecessary.  People  are  hurting  and  there  are  no 
means of meeting that demand in the near term. • The important thing is to give people choice 
and switch people to cashless gradually.   
 
 
2.APPLICATION TRANSACTION 
 
*App Transaction using BHIM 
 
BHIM  (Bharat  Interface  for  Money)  is  a  mobile  payment  App  developed  by  the  National 
Payments  Corporation  of  India  (NPCI),  based  on  the  Unified  Payments  Interface  (UPI). 
Named  after  B.  R.  Ambedkar  and  launched  on  30  December  2016,it  is  intended  to  facilitate 
e-payments  directly  through  banks  as  part  of  the  2016  Indian  banknote  demonetisation  and 
drive towards cashless transaction 
The  app  supports  all Indian banks which use UPI, which is built over the Immediate Payment 
Service  (IMPS)  infrastructure  and  allows  the  user  to  instantly  transfer  money  between  bank 
accounts of any two parties It can be used on all mobile devices. 
 
OBJECTIVE OF THE STUDY on CASH FLOW STATEMENT 
Objective  Information  about  the  cash  flows  of  an  enterprise  is  useful  in  providing  users  of 
financial  statements  with  a  basis  to  assess  the  ability  of  the  enterprise  to  generate  cash  and 
cash  equivalents  and  the  needs  of  the  enterprise  to  utilise  those  cash  flows.  The  economic 
decisions  that  are  taken  by  users  require  an  evaluation  of  the  ability  of  an  enterprise  to 
generate  cash  and  cash  equivalents  and  the  timing  and  certainty  of  their  generation.  The 
Standard deals with the provision of information about the historical changes in cash and cash 
equivalents  of  an  enterprise  by  means  of  a  cash  flow  statement  which  classifies  cash  flows 
during the period from operating, investing and financing activities. 
It  provides  useful  information  about  an  entity’s  activities  in  generating  cash  through 
operations and its ability: 
►to repay debt; 
►distribute dividends; 
►reinvest to maintain or expand operating capacity; 
►about its financing activities, both debt and equity; 
►and  about  its  investing  or  spending  of  cash.Provide  information  to  help  present  and 
potential investors and creditors and other users in assessing: 
►liquidity; 
►financial flexibility; 

 
►profitability; 
►and risk. 
 
 
CASH FLOW STATEMENT METHODOLOGY  
Methods of preparing cash flow statement 
 
FASB  Statement  No.  95  allows  the  preparer  a  choice  of  the  direct  or  the  indirect  method  of 
cash  flow  statement  presentation,  although  the  FASB  prefers  the  direct  method.  The 
difference lies in the presentation of the operating cash flow information. 
1. Direct method: 
Companies  that  use  the  direct  method  are  required,  at  a  minimum,  to  report  separately  the 
following classes of operating cash receipts and payments: 
Receipts: 
Cash collected from customers 
Interest and dividends received 
Other operating cash receipts, if any 
Payments: 
Cash  paid  to  employees  and  suppliers  of  goods  or  services  (including suppliers of insurance, 
advertising, etc.) 
Interest paid 
Income taxes paid 
Other operating cash payments, if any 
Companies  are  encouraged  to  further  break  down  any  operating  cash  receipts  and  payments 
that they consider meaningful. 
2. Indirect method. 
The  indirect  method, by contrast, reports operating cash flow based on changes in the balance 
sheet  (the  distribution  of  assets  and  liabilities)  from  period  to  period  as  they  relate  to  net 
income.  Thus,  instead  of  reporting  the  total  cash  received  from  customers,  an  indirect 
statement  only  lists  the  change  in  cash  received  from  the  previous  period.  The  net cash flow 
reported  should  be  the  same  as  in  the  direct  method,  but  in  the  indirect  method  the  level  of 
detail tends to be less. 
The key elements of the operating activities section using the indirect method are as follows: 
Net income 
Depreciation and amortization 
Deferred income taxes 
Interest income 
Change in accounts receivable 
Change in accounts payable 
Change in inventories 
Net gains from the sale of investments or assets 

 
A  few  additional  categories  are  used  in some circumstances. Each category is either added or 
subtracted  from  net  income  depending  on  whether  it  corresponds  to  an  inflow  or  outflow  of 
cash.  When  all  of  these  factors  are  combined,  they  equal  the  net  operating  cash  flow  for  the 
period. 
As  an  alternative,  some  cash  flow  statements  using  the indirect method report operating cash 
flow  as  a  single  line  item  and  present  the  reconciliation details elsewhere in a supplementary 
schedule.  According  to  FASB  standards,  the  direct  method  also  requires  a  supplementary 
schedule  that  essentially  incorporates  the  indirect  measures  into  the  statement.  Due  to  this 
added  burden,  the  majority  of  companies  tend  to  use  the  indirect  method  only,  despite  the 
FASB’s  stated  preference  for  the  direct.  Figure  I  shows  a  modified  statement  of  cash  flows 
from the Coca-Cola Company using the indirect method. 
Regardless  of  whether  the  direct  or  the  indirect  method  is  used,  the  operating  section  of  the 
cash  flow  statement  ends  with  net  cash  provided  (used)  by  operating  activities.  This  is  the 
most  important  line  item on the cash flow statement. A company has to generate enough cash 
from  operations  to  sustain  its  business  activity.  If  a  company  continually  needs  to  borrow  or 
obtain  additional  investor  capitalization  to  survive,  the  company’s  long-term  existence  is  in 
jeopardy. 
 
SCOPE OF THE CASH FLOW STATEMENTS STUDY 
 
1.  Consolidated  cash  flow  is  a  financial  statement  that  presents  information  about  the 
company's cash receipts and disbursements during the accounting period. 
2.  The  purpose  of  cash  flow  statement  is  to  provide  information  on  sources  and  uses of cash 
and  cash  equivalents  during  the  period of accounting and cash reconciliation at the beginning 
of the period with cash at the end of the period plus the cash equivalent balances. 
3.  The  general  form  of  the  cash  flow  statement  shows  cash  receipts  and  disbursements  are 
divided  into  three  categories,  namely:  cash  flow  from  operating  activities,  cash  flows  from 
investing activities and cash flows arising from financing activities. 
4.  Operating  activities  are  the  principal  revenue-producing  activities  of  the  company 
(principal  revenue  producing  activities)  and  other  activities  that  are  not  investing  activities 
and  financing  activities.  Cash  flows  from  operating  activities  can  be  reported with the use of 
two methods, either directly or indirectly. 
5.  Investment  activity  is  the  acquisition  and  disposal  of  long-term  assets  and  other 
investments that do not include cash equivalents. 
 
 
 
 
 
 

 
LIMITATION AND LITERATURE REVIEW 
 
LIMITATIONS OF CASH FLOW STATEMENTS 
a) Fails to Present Net Income: 
Cash  Flow  Statement  actually  fails  to  present  the  net  income  of  a  firm  for  a  period  since  it 
does  not  consider  non-cash  items  which  can  easily be ascertained by an Income Statement. It 
can be used as a supplement to Income Statement. 
(b) Fails to Assess the Liquidity and Solvency Position: 
Practically,  cash  flow  statement  does  not  help  to  assess  liquidity  or  solvency  position  of  a 
firm.  Proper  liquidity  position  cannot  be  assessed  from  the  cash  flow  statement  which 
presents  only  the  cash  position  at  the  end  of  the  period.  It  only  helps  how  much  amount  of 
obligation can be met, i.e. Cash Flow Statement does not represent the real liquidity position. 
(c)  Neither a Substitute of Funds Flow Statement nor Income Statement:Cash Flow Statement 
is  neither  a  substitute  of  Funds  Flow  Statement  nor  a  substitute  of  Income  Statement.  The 
functions  which  are  performed  by  a  Funds  Flow  Statement  or  Income  statement  cannot  be 
done by a Cash Flow Statement. 
 
 
(d) Not to Assess Profitability: 
Practically,  cash  flows  from  operation  does  not  help  to  assess the profitability of a firm since 
it neither considers the costs nor revenues. 
(e) Does not Conform with the Companies Act: 
The  provisions  which  are  made  by  the  Companies  Act  is  in  conformity  with  Profit  and Loss 
Account  and  Balance  Sheet  are  not  in  conformity  with  Cash  Flow  Statement  which  is 
prepared as per AS 3. 
(f) Does not Assess Future Cash Flows: 
Since  Cash  Flow  Statement  is prepared on the basis of historical cost and, as such, it does not 
help to know the future/projected cash flows. 
(g)  Inter-Industry  Comparison  not  Possible:Since  Cash  Flow  Statement does not measure the 
economic  efficiency  of  a  firm  in  comparison  with  other  inter-industry  comparison  is  not 
possible,  e.g.  a  firm  having  less  capital  investment  will  have  less  cash  flow  than  the  firm 
which has more capital investment having a higher cash flow. 
 
 
LITERATURE REVIEW OF CASH FLOW STATEMENT: 
 
Introduction 
 
The  previous  chapter  has  discussed  the  enquiry  of  the  study,  highlighted  the  overviews 
background  of  the  company.This chapter looks at the concept of cash flow statement as given 
by  other  authors  and  researchers  with  importance  to  accountability,  profit  measurement, 

 
solvency,  ambiguity,  and  disclosure  and  their  specific  relevance  for  proper  financial 
management  of  commercial  company  .one  of  the  aims and objectives of this dissertation was 
to  review  conceptual  thought  and  theoretical  frameworks  related  to  cash  flow  analysis. 
Developing  a  critical  review of cash flow literature and any related issues help the researcher, 
manager  and  any  potential  reader  to  better  understand  the  subject  and  also  provide  a 
framework  for data analysis. Governance as stated in the UK charity commission standard for 
good  governance  code  is  “the  systems  and  processes  concerned  with  ensuring  the  overall 
direction, effectiveness, supervision and accountability of an organization.” 
This  chapter  begins  with  a  clarified  concept  of  cash  flow  as  stated  by  the  Financial 
Accounting  Standard  Board  (FASB)  and  also  develop  and  update  and  utility  of  cash  flow 
when  managing  commercial  activities.  How  the  better  knowledge  on  that  topic  helps  in 
business decision making nowadays. 
2.1  Expansion  of  the  reporting  standard:The  Financial  Accounting  Standards  Board  (FASB) 
introduced  Statement  of  Financial  Accounting  Standards  No.  95  which  is  the  Statement  of 
Cash  Flows  in  November  1987.  The  requirement of FASB 95 regarding a full set of financial 
statements  classified  cash  flow  as  the  fourth  required  financial  statement  (along  with  a 
balance  sheet,  income  statement,  and  statement  of  retained  earnings).  This  statement 
established  standards  for  cash  flow  reporting,  and  dated out the Accounting Principles Board 
(APB)  Opinion  No.  19,  Reporting  Changes  in  Financial  Position.  In  March  1971,  the  APB 
Opinion  No.19  gave  chances  to  enterprises  to  report  cash  flow  information  in  a  statement of 
changes  in  financial  position  commonly  called a funds statement. During that time, there was 
no formal or universally accepted definition to catalogue each statement even though the term 
“funds”  was  not  sufficiently  defined  (Alves  et  al  2008).  Every  single  industry  however  had 
different  funds  constitution  to  others  since  the  statement  referred  to  changes  in  funds.  The 
term  funds  referred  sometimes  to  cash  for  some  company  meanwhile  some  used  cash  and 
short  term  investment  and  some  used  quick  asset,  some  used  working  capital.  The relevance 
and  the  valuation  of  funds  statement  has  been  recognised  in  most  companies  but  the  lack  of 
consistency  in  format and focus from one firm to another was responsible for the main reason 
that  the FASB obviously took up the matter and with extensive commentary from accountants 
and  any  other  interested  parties,  adopted  the  standards  espoused  in  FASB  95.it  effectively 
took  place  in  1988  had  not  encouraged  the  use  of  the  world  “funds”  because  it  had  been 
stated with so much (Alves et al 2008). 
2.2 Cash flow statement 
A  cash  flow  statement  is  an important indicator of financial health because it is possible for a 
company  to  show  profits  while  not  having  enough  cash  to sustain operations. It is a financial 
report  that  shows  to  the  user  the  source  of  a  company’s  cash  and  how  it  was  spent  over  a 
specific  period  of  time.  A  cash  flow statement counters the ambiguity regarding a company’s 
solvency  that  various  accrual  accounting  measures  create.  It  also  categorizes the sources and 
uses  of  cash  to  provide  the  reader  with  an  understanding  of  the  amount  of  cash  a  company 
generates  and  uses  in  its  operations,  as  opposed  to  the  amount  of  cash  provided  by  sources 
outside  the  company,  such  as  borrowed  funds  or  funds  from  stockholders.  The  cash  flow 
statement  also  tells  the  reader  how  much money was spent on items that do not appear on the 

 
income  statement,  such  as  loan  repayments,  long-term  asset  purchases,  and  payment  of  cash 
dividends (Ryan 2007). 
2.3 Requirements for cash flow statement 
Thornton  (2008)  indicated  that  FASB  95  requires  a  statement  of  cash  flows  to  classify  cash 
receipts  and  cash  payments  in  accordance  with  the prescribed format whether they start from 
operating  activities,  investing  activities,  or  financing  activities.  The  provisions  given  by 
FASB are as follows on the presentation of cash flow statement are: 
–  it  provides  that  the  cash  flows  statement  should  be  prepared  under  either  direct  or  indirect 
method and provides examples of how to use each method when preparing statements. 
–  It  also  provides  that  under  the  core  concept,  cash  is  stated  as  “cash  and  cash  equivalents”. 
while  cash  is  the  most  liquid  assets  within  the  asset  portion  of  a  company’s  balance  sheet 
including  currency  and  bank  deposits,  on  the  other  hand  cash  equivalents  are  assets  that  are 
ready  to  be  converted  into  cash,  such  as  money  market  holding,  short  term  government 
bonds,  bills,  marketable  securities  and  commercial  paper.  Other  sources  of  investments  such 
as stocks, bonds, futures contracts, and so forth are not considered cash. 
2.4 Cash and profitability concepts 
2.4.1 Cash 
Cash  is  one  of  the  most  important  aspects  of  running  any large or small business. It is one of 
the  single  most  important  reasons  why  many  businesses  fail  regardless  of  how  good  the 
business  is.  The  physical  aspect  of  cash  can  be  any  currency,  coins  on  hand,  bank  balances, 
negotiable  money  and  so  forth.  Managing  cash  flow  therefore  is  vitally  important  in  the soft 
running, survival and success of a business (Atrill P. 2004). 
The  use  of  some  examples  have  illustrated  how  cash  flow  can  make  the  difference  between 
success  and  failure.  The  meaning  of  failure  in  this  case  is  insolvency  that  is,  the  company is 
unable  to  pay  its  debts.  The  term  bankrupt  is  sometimes  used  to  describe that situation, even 
though  it  is  only  an  individual  who  can  be  declared  bankrupt.  But sometimes both terms can 
be confusing. 
2.4.2 Significance of non-cash transactions 
Also  known  as  profitability,  non-cash  transactions  are  not  included  in  the  statement  of  cash 
flows,  but  often  they  need  to  be  disclosed  elsewhere in the financial statements. Examples of 
these types of transactions include: 
Conversion of bonds to stock 
Acquisition of assets by assuming liabilities. 
When  there  are  some  few  of  such  transaction,  it  may be fairly recommended to include them 
on  the  same  page  as  the  statement  of  cash  flows  but  in  a  separate  schedule  at  the  bottom  of 
the  statement  of  cash  flows.  Otherwise,  the  transactions  may  be  reported  elsewhere  in  the 
financial  statements,  clearly  referenced  to  the  statement  of  cash  flows.  Some  other 
transactions  are  generally  reported in combination with statement of cash; these include stock 
dividends, stock splits, and appropriation of retained earnings. 
 
 
 

 
2.6 Classifications/ Presentation of cash flow statement 
Nearly  all  business transactions completed during the fiscal year impact cash flow in one way 
or  another,  and  in  summary  form  they  are  factored  into  the  year’s  cash  flow  statement. 
Exactly  where  on  the  statement  depends  on  the  nature  of  the  transaction.  As  noted, the three 
essential  categories  of  cash  flow  are  operating  activities,  investing  activities,  and  financing 
activities. The components of each of these will be addressed separately. 
2.6.1 Operating activities 
Operating  activities  are  the  fundamental  transactions  that  keep  the  business  running.  Most 
notably,  they  include  incoming  revenue (also known as net income) from the sale of goods or 
services  and  most  kinds  of  outgoing  payments.  Cash  flow  from  operating  activities  doesn’t 
include  principal  paid  on  or  received  from  loans,  and  only  includes  transactions  that  were 
completed  during  the  period.  This  simply  means  that  an  operating  transaction  is  not 
considered  cash  flow  until  the  cash  is  actually  received  or  paid,  as  opposed  to  just  being 
recorded  as  accounts  receivable  or  payable.  In  general,  if  an  activity  would  appear  on  the 
company’s  income  statement,  it  would  be  a  candidate  for  the  operating  section  of  the  cash 
flow  statement.  Net  changes  in  balance  sheet  categories  from  period  to  period also represent 
cash  flow;  thus,  a  net  decrease  in  accounts receivable from year to year normally suggests an 
increase  in  cash  flow  for  that  period.  Sometimes  goods  or  services  are  paid  for  prior  to  the 
period  in  which  the  benefit  is  matched  to  revenue  (recognized).  This  results  in  a  deferred  or 
prepaid  expense.  Items  such  as  insurance  premiums  that  are  paid  in  advance  of the coverage 
period  are  classified  as  prepaid.  Sometimes  goods  or  services  are  received  and  used  by  the 
company  before  they  are  paid  for,  such  as telephone service or merchandise inventory. These 
items  are  called  accrued  expenses,  or  payables,  and  are  recognized  on  the  income  statement 
as  an  expense  before  the  cash  flow  occurs.  Operating  activities  include  the  production,  sales 
and  delivery  of  the company’s product as well as collecting payment from its customers. This 
could  include  purchasing  raw  materials,  building  inventory,  advertising,  and  shipping  the 
product. 
Under IAS 7, operating cash flows include: 
● Receipts from the sale of goods or services 
● Receipts for the sale of loans, debt or equity instruments in a trading portfolio 
● Interest received on loans 
● Dividends received on equity securities 
● Payments to suppliers for goods and services 
● Payments to employees or on behalf of employees 
● Interest  payments  (alternatively,  this  can  be reported under financing activities in IAS 
7, and US GAAP) 
● Items  which  are  added  back  to  [or  subtracted  from,  as  appropriate]  the  net  income 
figure  (which  is  found  on  the  Income  Statement)  to  arrive  at  cash  flows  from 
operations generally include: 
● Depreciation (decline in value of assets and loss of tangible asset value over time) 
● Deferred tax 
● Amortization (loss of intangible asset value over time) 

 
Any  gains  or  losses  associated  with  the  sale  of  a  non-current  asset,  because  associated  cash 
flows  do  not  belong  in  the  operating  section.(unrealized  gains/losses  are  also  added  back 
from the income statement 
2.6.2 Investing activities 
2.Investment  activities represent the cash flow from the purchase of long term assets ( such as 
property  and  equipment)  required  to  make  or  sell  goods  and  services.  Investment  activities 
also  include  purchases  of  stocks  or  other  securities, loans made to other businesses.  A major 
issue  that  potential  investors have with the investing activities section is that the money listed 
here  represents  activities  paid  for  in  cash.  In  other  words,  it  includes  only  the  principal  or 
book  value  of  the  investment.  So,  if  an  example  of  a  company  that  wanted  to  purchase  $5 
million  dollars  worth  of  equipment  with  only  $1  million  cash  and  $4  million  in  financing, 
only  the  $1  million  will  show  up  under  investing  activities.  Interest  and  depreciation  are 
classified  as  operating  cash  flow,  as  are  net  gains  or  losses  on  investments.  Because of these 
distinctions,  cash  flow  from  investment  activities  is  typically more complex to calculate than 
that from other categories. Examples of investing activities are 
Purchase  or  Sale  of  an  asset  (assets  can  be  land,  building,  equipment,  marketable  securities, 
etc.) 
Loans made to suppliers or received from customers 
2.6.3 Financing activities. 
Financing  activities  consist  of  transactions  affecting  a  company’s  liabilities  and  shareholder 
equity.  Mainly  involving  how  the  company  obtains  capital  and  enhances  the  value  of  its 
stock,  they  include  such  things  as  issuing  bonds,  payments  on  debt,  paying  dividends,  and 
issuing and buying back stock. 
Financing  activities include the inflow of cash from investors such as banks and shareholders, 
as  well  as  the  outflow of cash to shareholders as dividends as the company generates income. 
Other  activities  which  impact  the  long-term  liabilities  and  equity  of  the  company  are  also 
listed in the financing activities section of the cash flow statement. 
Under IAS 7, 
Proceeds from issuing short-term or long-term debt 
Payments of dividends 
Payments for repurchase of company shares 
Repayment of debt principal, including capital leases 
For  non-profit  organizations,  receipts  of  donor-restricted  cash  that  is  limited  to  long-term 
purposes 
Items under the financing activities section include: 
Dividends paid 
Sale or repurchase of the company’s stock 
Net borrowings 
Payment of dividend tax 
Disclosure of non-cash activities 
Under  IAS  7,  noncash  investing  and  financing  activities  are  disclosed  in  the  footnotes  to the 
financial  statements.  Under  US  Generally  Accepted Accounting Principles (GAAP), noncash 

 
activities  may  be  disclosed  in  a  footnote  or  within  the  cash  flow  statement  itself.  Noncash 
financing activities may include 
Leasing to purchase an asset 
Converting debt to equity 
Exchanging non cash assets or liabilities for other noncash assets or liabilities 
Issuing shares in exchange for assets 
Wrongly  recommends  the  direct  method  but  allows  either  method.  The  International 
Accounting  Standard  Committee  (IASC)  considers  the  indirect  method  less  clear  to  users  of 
financial  statements.  Cash  flow  statements  are  most  commonly  prepared  using  the  indirect 
method, which is not especially useful in projecting future cash flows. 
The  cash  flow  statement was previously known as the flow of funds statement. The cash flow 
statement reflects a firm’s liquidity. 
The  balance  sheet  is  a  snapshot  of  a  firm’s  financial  resources  and  obligations  at  a  single 
point  in  time,  and  the  income  statement  summarizes  a  firm’s  financial  transactions  over  an 
interval  of  time.  These  two  financial  statements  reflect  the  accrual  basis  accounting  used  by 
firms  to  match  revenues  with  the  expenses  associated  with  generating  those  revenues.  The 
cash  flow  statement  includes  only  inflows  and  outflows  of  cash  and  cash  equivalents;  it 
excludes  transactions  that  do  not  directly  affect  cash  receipts  and  payments.  These  noncash 
transactions  include  depreciation  or  write-offs  on  bad  debts  or  credit  losses  to  name  a  few. 
The  cash  flow  statement  is  a  cash  basis report on three types of financial activities: operating 
activities,  investing activities, and financing activities. Noncash activities are usually reported 
in footnotes. 
The  cash  flow  statement is intended to provide information on a firm’s liquidity and solvency 
and its ability to change cash flows in future circumstances 
provide additional information for evaluating changes in assets, liabilities and equity 
improve  the  comparability  of  different  firms’  operating  performance  by  eliminating  the 
effects of different accounting methods 
indicate the amount, timing and probability of future cash flows 
The  cash  flow  statement  has  been  adopted  as  a  standard  financial  statement  because  it 
eliminates  allocations,  which  might  be  derived  from  different  accounting  methods,  such  as 
various timeframes for depreciating fixed assets. 
2.7.Cash and Cash Equivalent  
2.7.1 Cash inflows and cash outflows 
2.7  Cash  and  Cash  EquivalentThe  concept  of  cash  flow  can  be  broadly  divided  into  two 
categories,  namely  the  inflow  and  outflow.  The  cash  inflow,  which  is  also  known  as  inward 
cash  flow  or  just  cash  flow,  is generated as a result of financing, ventures and sales. The cash 
outflow  which  is  also  known  as  onward  flow  of  cash  is  seen as a result of many factors such 
as  purchases,  investments,  salaries  and  administrative  expenditures.  The  importance  of  cash 
flow  statement  was  realized  in  the  wake  of  the  2007  recession  cycle.  Business  organizations 
have  realized  the  importance  of  cash  flow  analysis,  and  have  started  regular  audits  of  cash 
outflows  as  well  as  inflows.  This  study  of  inflow  and  outflow  tends  to  play  a  highly 
instrumental role on general financial planning and financial management.  

 
Ideally,  during  the  business  cycle,  money  flows  in  than  flows  out.  This  allows  manager  to 
build  up  cash  balances  with  which  to  plug  cash  flow  gaps,  seek  expansion  and  reassure 
lenders and investors about the health of their business. 
A  point  to  note  is  that  income  and  expenditure cash flows rarely occur together, with inflows 
often  filling  behind.  The  aim  of  this  knowledge  was  to  speed  up  the  inflows  and  slow  down 
the outflows. 
Cash inflows key elements 
1. Payment for goods or services from your customers. 
2. Receipt of a bank loan. 
3. Interest on savings and investments. 
4. Shareholder investments. 
5. Increased bank overdrafts or loans. 
Cash outflows key elements 
1. Purchase of stock, raw materials or tools. 
2. Wages, rents and daily operating expenses. 
3. Purchase of fixed assets – PCs, machinery, office furniture, etc. 
4. Loan repayments. 
5. Dividend payments. 
6. Income tax, corporation tax, VAT and other taxes. 
7. Reduced overdraft facilities. 
Many  of  your  regular  cash  outflows,  such  as  salaries,  loan  repayments  and  tax,  have  to  be 
made  on  fixed  dates.  You  must  always  be  in  a  position  to  meet  these  payments  in  order  to 
avoid large fines or a disgruntled workforce. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 CHAPTER-2 
 
INDUSTRY PROFILE AND COMPANY PROFILE 
 
OmegaOn  is  FinTech  startup  company  that  aims  to  build  a  technology  which  can  let anyone 
make online payments. 
Categories Internet, Mobile Apps, Payments 
Headquarters Regions Asia-Pacific (APAC) 
Founded Date Feb 26, 2017 
Founders Sreekanth Eragadindla 
Operating Status Active 
Funding Status Seed 
Last Funding Type Debt Financing 
IPO Status Private 
Company Type For Profit 
Website www.omegaon.in 
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Contact Email omegaoninternetpvtltd@gmail.com  
OmegaOn  is  a  FinTech  company  that  aims  to  bring  digital  payments  into  mainstream.  The 
company has launched an innovative solution to make simpler payments via PhotoClickPay. 
 
OVERVIEW 
OmegaOn  aims  to  be  the  ultimate  destination  for  the  users  across  India  to  all  bill  payments 
and other online services using the e-commerce. 
Website http://www.omegaon.com 
Industry Computer Software 
Company size 11-50 employees 
Type Privately Held 
Founded 2016 
 
 
 
 
 
 
 
 
 
 

 
 
 
OMEGAON AWARDS AND ACHIEVEMENTS 
 
AWARDS: 
1. Best  startup  Award  ANDHRA  PRADESH-MARCH  2016  Received  10  lakhs  cash 
Prize 
2. Best startup Idea given by 19SPRING SPRINGBOARD -MARCH 2016  
Provided free office space for 1 year 
3. Best startup Award received from TELANGANA- JUNE 2017 
 
 
ACHIEVEMENTS: 
1. Patent rights for photo click pay  
2. UPI licence  
3. Payment integration in IOT (Internet Of Things) 
4. Payment integration in Electrical Vehicles 
5. Building own microprocessor which contain complete payments  
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 CHAPTER-3 
 
Theoretical Background of Cash flow Statement: 
 
Definition of Cash Flow: 
 
A  revenue  or  expense  stream  that  changes  a  cash  account  over  a  given  period  cash  inflow 
usually  arise  from one of the three activities (i.e.) financing, operations or investing- although 
this  also  accurse  as  a  result  of  donations  or  gifts  in  the  case  of  personal  finance.  Cash  out 
flow  results  are  due  to  the  expenses  or  investments.  This  is  common  for  both  business  and 
personal finance.  
 
An  accounting  statement  called  the  statement  of  cash  flow  shows  the  amount  of  cash 
generated  and  used  by  a  company  in  a  given  period.  It  is  calculated  by  adding  non  cash 
charges (such as depreciation) to net income after taxes.  
Cash  flow  can  be  attributed  to  a  specific  project,  or  to  a  business  as  a  whole.  Cash  flow  can 
be used as an indication of a company’s financial strength.  
 
According  to  Investopedia  explains  cash  flow7  there  are  some  explanations  of  cash  flow 
pointed as the following:  
 
1)  In  business  as  in  personal  finance,  cash  flow  is  essential  to  solvency.  They  can  be 
presented  as  a  record  of  something  that  has  happened  in  the  past  such  as  the  sale  of  a 
particular  product  or  forecasted  into  the  future  representing  what  a  business  or  a  person 
expects  to  take  in  and  to  spend.  Cash  flow  is  crucial  to  an  entity's  survival.  Having  ample 
cash  on  hand  will  ensure  that  creditors,  employers,  and  others  can  be  paid  on  time.  If  a 
business  or  person  does  not  have  enough  cash  to  support  its/  his  operations,  it’s  said  to  be 
insolvent and a likely candidate for bankruptcy if the insolvency continues.  
 
2)  The  statement  of  a  business  cash  flow  is  often  used  by  analysts  to  gauge  financial 
performance.  Companies  with  ample  cash  on  hand  are  able  to  invest  the  cash  back  into  the 
business in order to generate more cash and profit. 
 
  
 
 
 
*These  non-cash  transactions  include  depreciation  or  write-offs  on  bad  debts  or credit losses 
to  name  a  few.  The  cash  flow  statement  is  a  Cash  Basis  Report  on  three  types  of  financial 
activities: operating activities, investing activities and financing activities. Non-cash activities 
are  usually  reported  in  footnotes.  The  cash  flow  statement  has  been  adopted  as  a  standard 

 
financial  statement  because  it  eliminates  allocations,  14  which  might  be  derived  from 
different  accounting  methods,  such  as  various  timeframes  for  depreciating  fixed  assets.  The 
cash flow statement is intended to: 
1. provide information on a firm's liquidity and solvency and its ability to change cash flow in 
future circumstances;  
2. provide additional information for evaluating changes in assets, liabilities and equity;  
3.  Improve  the  comparability  of  different  firms'  operating  performance  by  eliminating  the 
effects of different accounting methods;  
4.  indicate  the  amount, timing and probability of future cash flows; The below table shows us 
the process and Cash Flow Statements Clearly 
 
 

 
 
Importance of Cash Flow Statements: 
The  importance  of  cash  flow  statement  is  that  it  is  used  to  measure  the  cash  position  of  the 
business  i.e.  the  inflow  and  outflow  of  cash  and  cash  equivalents  in  the  business  for  an 
accounting  year  and  it  also  helps  the  business  to  know  the  availability  of  cash  in  their 
business. 
 
Why is Cash Flow Statement Important 
Cash  Flow  Statement  importance  is  that  it measures the cash inflows or cash outflows during 
a  given  period  of  time. Such details of the cash position of the company can not only help the 
company  or  the  financial  analyst  to  plan  for  the  short term or long term but also in analyzing 
the optimum level of cash and working capital needed in the company. 
 
 
 

 
Procedure for Preparing a Cash Flow Statement  
Cash-flow  statement  shows  the  impact  of  various  transactions  on  the  cash position of a firm. 
It  is  prepared  with  the  help  of  financial  statements,  i.e.  balance  sheet  and  profit  and  loss 
account  and  some  additional  information.  A  cash-flow  statement  starts  with  the  opening 
balance  of  cash  -  and  balance  of  cash  in  hand  and  cash  balance  at  bank  -  all  the  inflows  of 
cash  are  added  to  the  opening  balance  and  outflows  of  cash  are  deducted  from  the  resultant 
total.  The  balance,  i.e.  opening  balance  of  cash  and  bank  balance  plus inflows of cash minus 
outflows  of  cash  is  reconciled  with  the  closing  balance  of cash. The preparation of cash flow 
statement involves determining of:  
a) Inflows of cash  
b) Outflows of cash 
 
a) Sources of Cash-Flows: The main sources of cash in-flows are: 
1) Cash flow from operations 
2) Increase in existing liabilities or creation of new liabilities  
3) Reduction in or sale of Assets  
4) Non-Trading Receipts 
 
b) Application of Cash  
1) Cash lost in operation  
2) Decrease in or discharge of liabilities 
3) Increase in or purchase of assets  
4) Non-Trading Payments. Generally, Cash-flow statement is prepared in two forms:  
a) Report Form  
b) T Form or an Account Form or Self-Balancing Type 
 
Presentation of a Cash Flow Statement  
 
1.  The  cash flow statement should report cash flows during the period classified by operating, 
investing and financing activities.  
 
2.  An  enterprise  presents  its cash flows from operating, investing and financing activities in a 
manner  which  is  most  appropriate  to  its  business.  Classification  by  activity  provides 
information  that  allows  users  to  assess  the  impact  of  those activities on the financial position 
of  the  enterprise  and  the  amount  of  its  cash  and  cash  equivalents.  This information may also 
be used to evaluate the relationships among those activities.  
 
3.  A  single  transaction  may  include  cash  flows  that  are  classified  differently.  For  example, 
when  the  instalment  paid  in  respect  of  a  fixed  asset  acquired  on  deferred  payment  basis 
includes both interest and loan, the interest element is classified under financing activities and 
the loan element is classified under investing activities. 

 
 
Advantages of Cash Flow Statement: 
 
The advantages of Cash Flow Statement are: 
 
(a) Ascertaining Liquidity and Profitability Positions: 
Cash  Flow  Statement  helps  the  management  to  ascertain  the  liquidity  and  profitability 
position  of  a  firm.Liquidity  means  one’s  ability  to  pay  the  obligation  as  soon  as  it  becomes 
due. 
Since  Cash  Flow  Statement  presents  the  cash  position  of  a  firm  at  the  time  of  making 
payment  it  directly helps to ascertain the liquidity position, the same is also applicable in case 
of profitability. 
One  can  understand  from  Cash  Flow  Statement  that  how  efficiently  the  firm  is  paying  its 
obligation  in  various  forms  of  expense  and  liability.  At  the  same-time,  as  the  cash  earning 
capacity  of  a  firm  can  be  ascertained  from  this  statement,  profitability  position  depends  also 
on cash earning capacity. 
 
(b) Ascertaining Optimum Cash Balance: 
Cash  Flow  Statement  helps  also  to  ascertain  the  optimum  cash balance of a firm. If optimum 
cash  balance  can  be  determined,  it  is  possible  for  a  firm  to  ascertain  the  idle  and/or  excess 
and/or  shortage  of  cash  position.  After  ascertaining  the  cash  position,  the  management  can 
invest  the  surplus  cash,  if  any,  or  borrow  funds  from  outside sources accordingly to meet the 
cash deficit. 
 
(c) Cash Management:  
Proper  management  of  cash  is  possible  if  cash  flow  statement  is  properly  prepared.  The 
management can prepare an estimate about the various 
inflows  of  cash  and  outflows  of  cash  so  that  it  becomes  very  helpful  for  them to make plans 
for the future. 
 
(d) Capital Budgeting Decisions: 
Since  capital  budgeting  relates  to  the  decision  of  capital  expenditure  in  various  forms  on  a 
long-term basis cash flow timing is very important for this purpose. 
 
(e) Superiority over Accrual Basis of Accounting: 
No  doubt,  Cash  Flow  Statement  or  cash  basis  of  accounting  is  more  reliable  or  dependable 
than  accrual  basis  of  accounting  as  a  number  of  technical  adjustments  are  made  in  the  latter 
case. Cash flow accounting is free from such snags. 
 
(f) Planning and Coordination: 
Cash  Flow  Statement  is  prepared  on  an  estimated  basis  meant  for  the  succeeding/next  year 
which  helps  the  management  to  know  how  much  funds  are  required  for  what  purposes,  how 

 
much  cash  is  generated  from  internal  sources,  how  much  cash  can  be  procured  from  outside 
the  business.  It  helps  also  to  prepare  cash  budgets.  Thus,  the management can prepare plans, 
coordinate various activities with the help of this statement. 
 
(g)  Movement  of  Cash:A  Cash  Flow  Statement  presents  the  management  the  flows  in  and 
flows out of cash for various purposes on the basis of which future estimates can be prepared. 
 
(h) Performance appraisal: 
By  comparing  the  actual  Cash  Flow  Statement  with  the  projected  Cash Flow Statements, the 
management  can  evaluate  or  appraise  the  performances  regarding  cash.  If  any  unfavourable 
variance is found, the reason for such variation is located and rectified accordingly. 
 
Dis-Advantages of Cash Flow Statement: 
 
Cash  Flow  Statement  is,  no  doubt,  an  important tool in financial management which exhibits 
the  movement  of  funds in various ways of a firm. It assists the management to understand the 
amount  of  capital  blocked-up  in  a  specific  segment  of  a  firm.  Although  the  cash  flow 
statement performs as an important tool, it is not free from snags. 
 
(a) Fails to present Net Income: 
Cash  flow  statement  actually  fails  to  present  the  net  income  of  a  firm  for  a  period  since  it 
does  not  consider  non-cash  items  which  can  easily be ascertained by an Income Statement. It 
can be used as a supplement to Income Statement. 
 
(b) Fails to Assess the Liquidity and Solvency Position: 
Practically  cash  flow  statement  does  not  help  to  assess  liquidity  or  solvency  position  of  a 
firm.  Proper  liquidity  position  cannot  be  assessed  from  the  cash  flow  statement  which 
presents  only  the  cash  position  at  the  end  of  the  period.  It  only  helps  how  much  amount  of 
obligation can be met i.e. cash flow statement does not represent the real liquidity position. 
 
(c)  Neither  a  substitute  of  Funds  Flow  Statement  nor  Income  Statement: 
Cash  flow  statement  is  neither  a  substitutes  of  funds  flow  statement  nor  a  substitute  of 
income  statement.  The  functions  which  are  performed  by  a  funds  flow  statement  or  Income 
statement cannot be done by a cash flow statement. 
 
(d) Not to Assess Profitability: 
Practically,  cash  flows  from  operation  does  not  help  to  assess the profitability of a firm since 
it neither considers the costs nor revenues. 
 
(e) Does not Conform with Companies Act: 

 
The  provision  which  are  made  be  the  companies’  Act  is  in  conformity  with  Profit  and  Loss 
Account  and Balance Sheet and not in conformity with cash flow statement which is prepared 
as per AS- 3. 
 
(f)  Does  not  Assess  Future  Cash  Flows:Since  cash  flow  statement is prepared on the basis of 
historical cost and, as such, it does not help to know the future/projected cash flows. 
 
(g) Inter-Industry Comparison not possible: 
Since  cash  flow statement docs not measure the economic efficiency of a firm, in-comparison 
with  other  inter-industry  comparison  is  not  possible,  e.g.,  a  firm  having  less  capital 
investment  will  have  less  cash  flow than the firm which have more capital investment having 
a higher cash  
 
 
 
 
 
 
 
 
 
 
   
 
   

 
 Omegaon Interent Private Limited
(CIN:U74900KA2016PTC087119)
Regd. Off: #22, 4th Floor, Salarpuria Towers-1, Hosur Road, Koramangala, Bengaluru - 560 095
Balance Sheet as at March 31, 2019
(Amount `)
Note As at As at
Particulars
No. March 31, 2019 March 31, 2018
I EQUITY AND LIABILITIES

(1) Shareholders' Funds

(a) Share Capital 3 1,00,000 1,00,000
(b) Reserves and Surplus 4 92,279 (1,55,006)
1,92,279 (55,006)

(2) Non-Current Liabilities

(a) Long Term Borrowings 5 32,00,030 -
(b) Deferred Tax Liabilities (Net) 6 21,936 (1,684)
32,21,966 (1,684)
(3) Current Liabilities
(a) Short Term Borrowings 7 7,12,378 -
(b) Trade Payables 8 7,823 -
(c) Other Current Liabilities 9 8,65,628 5,42,600
(d) Short Term Provisions 10 68,100 70,781
16,53,929 6,13,381

Total 50,68,174 5,56,691

II ASSETS
(1) Non-Current Assets
(a) Property, Plant and Equipment 11
(i) Tangible Assets 5,69,185 66,241
(ii) Intangible Assets 42,431 68,770
(b) Non-Current Investments 12 17,50,000 2,80,000
23,61,616 4,15,011

(2) Current Assets

(a) Inventories 13 1,73,432 -
(b) Trade receivables 14 24,13,020 -
(c) Cash and Cash Equivalents 15 2,789 1,10,113
(d) Short-Term Loans and Advances 16 1,17,317 31,567
27,06,558 1,41,680

Total 50,68,174 5,56,691

Significant Accounting Policies 2

Other Notes to Financial Statements 25
Notes and Other Explanatory information form an integral part of Financial Statements

As per our report of even date annexed

for M T N & Associates for and on behalf of Board of Directors of
Chartered Accountants Omegaon Interent Private Limited
Firm Registration No.: 018784S

Tharakanadha Maddipatla Sreekanth Eragadindla Gowdvarti Vinay

Sole-proprietor Director Director
Membership No.: 242578 (DIN: 07403353) (DIN: 08440512)

Place: Bengaluru Place: Bengaluru

Date: August 30, 2019 Date: August 30, 2017
 Omegaon Interent Private Limited
(CIN:U74900KA2016PTC087119)
Regd. Off: #22, 4th Floor, Salarpuria Towers-1, Hosur Road, Koramangala, Bengaluru - 560 095
Statement of Profit and Loss for the year ended on March 31, 2019
(Amount in `)
Note For year ended For year ended
Particulars
No. March 31, 2019 March 31, 2018
I Revenue from Operations 17 1,16,03,290 1,07,94,109
IIOther Income 18 55,602 60,309
III
Total Revenue (I + II) 1,16,58,892 1,08,54,418
IVExpenses
(a) Cost of materials/services consumed 19 69,43,821 84,42,659
(b) Changes in Inventories 20 (1,73,432) -
(c) Employee Benefit Expenses 21 24,75,988 8,73,647
(d) Finance Costs 22 3,76,810 -
(e) Depreciation and Amortisation 11 1,10,632 1,23,797
(f) Other Expenses 23 15,86,823 11,25,368
Total Expenses 1,13,20,642 1,05,65,471
V Profit before exceptional, extraordinary items and tax (III - IV) 3,38,250 2,88,947

VI Extraordinary and Exceptional Items - -

VII Profit Before Tax (V - VI) 3,38,250 2,88,947

VIIITax Expense 24(d)

(1) Current Tax (68,100) (73,463)
(2) Deferred Tax (23,620) 1,684
(3) MAT Credit Entitlement 755 -

IX Profit / (Loss) For The Year After Tax (VII - VIII) 2,47,285 2,17,168

X Earning Per Equity Share 24

(1) Basic 24.73 21.72
(2) Diluted 24.73 21.72
Notes and Other Explanatory information form an integral part of Financial Statements

As per our report of even date annexed

for tambakad & goil for and on behalf of Board of Directors of
Chartered Accountants Omegaon Interent Private Limited
Firm Registration No.: 018784S

Tharakanadha Maddipatla Sreekanth Eragadindla Gowdvarti Vinay

Sole-proprietor Director Director
Membership No.: 242578 (DIN: 07403353) (DIN: 08440512)

Place: Bengaluru Place: Bengaluru

Date: August 30, 2019 Date: August 30, 2017
 Omegaon Interent Private Limited
(CIN:U74900KA2016PTC087119)
Regd. Off: #22, 4th Floor, Salarpuria Towers-1, Hosur Road, Koramangala, Bengaluru - 560 095

Notes to Financial Statements

1 Background of the Company and Nature of Operations:

• Omegaon Interent Private Limited ("the company") was incorporated on the March 21, 2016.

• The Company is engaged in the business of rendering IT and IT related services and
maintenance of vending machines.

2 Significant Accounting Policies:

a. Basis for Preparation of Financial Statements:
The financial statements are prepared under the historical cost convention, in accordance with
Indian Generally Accepted Accounting Principles (“GAAP”) on accrual basis. GAAP comprises
mandatory accounting standards as prescribed under section 133 of the Companies Act, 2013
(‘the Act’) read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act
(to the extent notified). These accounting policies have been consistently applied throughout the
year

b. Revenue Recognition:
• Sales revenues are recognized when goods are invoiced and dispatched to customers. Revenues
are recorded net of sales returns & trade discounts.

c. Expenditure
The accounts are prepared on historical cost basis following the accrual basis of accounting on
the principles of going concern.

d. Property, Plant and Equipment:

• Tangible assets are stated at cost less accumulated depreciation and impairment losses, if any.

• Direct costs related to assets acquisition are capitalized until the assets are ready for use

• Borrowing costs relating to acquisition of fixed assets which take a substantial period of time to
get ready for its intended use are also included to the extent they relate to the period till such
assets are ready for its intended use.

e. Depreciation and Amortisation:

• Depreciation on property, plant and equipment is provided in accordance with Companies Act,
2013 as per the useful lives of the assets stated below.
Computer Equipment : 3 Years
 Omegaon Interent Private Limited
(CIN:U74900KA2016PTC087119)
Regd. Off: #22, 4th Floor, Salarpuria Towers-1, Hosur Road, Koramangala, Bengaluru - 560 095

Notes to Financial Statements

2 Significant Accounting Policies: (Continued..)

f. Inventories:
• Raw material is valued at lower of cost or net reliasable vlaue.
• Cost includes direct material, work expenditure, labour cost and an appropriate portion of
overheads up to the respective stage/s of completion.
• Net realizable value is the estimated selling price in the ordinary course of business, less
estimated costs of completion and estimated costs necessary to make the sale

g. Employee Benefits:
Short term employee benefits:
The employee benefits payable only within 12 months of rendering the services are classified as
short term employee benefits. Benefits such as salaries leave travel allowance, short term
compensated absences etc, and the expected cost of bonus is recognized in the period in which
the employee renders the related services.

h. Foreign Currency Transactions:

Revenue and expenditure in foreign currency are accounted at the exchange rate prevalent
when such revenue or expenditure is incurred. Exchange differences are recorded when the
amount actually received on sales or actually paid when expenditure is incurred is converted
into Indian Rupees. The exchange differences arising on foreign currency transactions are
recognized as income or expense in the period in which they arise. Current assets and current
liabilities denominated in foreign currency are translated at the exchange rate prevalent as at
the date of the balance sheet. The resulting difference is recorded in the Statement of profit and
loss. The Companny do not have any foreign currency transactions during the year.

i. Investments:
• Investments that are readily realisable and intended to be held for not more than a year from
the date on which such investments are made, are classified as current investments. All other
investments are classified as long-term investments.
• Provision for diminution in value is made to recognise a decline other than temporary in the
value of the long-term investments.
 Omegaon Interent Private Limited
(CIN:U74900KA2016PTC087119)
Regd. Off: #22, 4th Floor, Salarpuria Towers-1, Hosur Road, Koramangala, Bengaluru - 560 095

Notes to Financial Statements

2 Significant Accounting Policies: (Continued..)

j. Taxation on Income:
• Deferred tax assets and liabilities are recognized for future tax consequences attributable to
temporary/ timing differences between the carrying amount of existing assets and liabilities,
as reported in the financial statements, and their respective tax base. Deferred tax assets and
liabilities are measured using enacted tax rates expected to apply to taxable income in the years
in which those temporary differences are expected to be recovered, settled or reversed. The
effect on deferred tax assets and liabilities as a result of a change in tax rates is recognized in the
Profit and Loss Account of the period that covers the enactment date. Reasonable allowances
are recorded for deferred tax assets that management believes will not be realized.
• The carrying amount of deferred tax assets are reviewed at each balance sheet date. The
company writes-down the carrying amount of a deferred tax asset to the extent that it is no
longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable
income will be available against which deferred tax asset can be realised. Any such write-down
is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may
be, that sufficient future taxable income will be available.

k. Provisions and Contingencies:

• Provision is recognized, when there is a present obligation as a result of a past ( or
obligating) event, and it is probable that an outflow of resources will be required to settle the
obligation, which can be reliably estimated. Provision is not discounted to its present value
and is determined based on the best estimate required to settle the obligation as at the balance
sheet date. Provisions are reviewed at each balance sheet date and adjusted to reflect the best
current estimate.
• Contingent Liabilities are recognized only when there is a possible obligation arising from
past events, due to occurrence or non-occurrence of one or more uncertain future events, not
wholly within the control of the Company, or where any present obligation cannot be
measured in terms of future outflow of resources, or where a reliable estimate of the obligation
cannot be made. Obligations are assessed on an ongoing basis and only those having a largely
probable outflow of resources are provided for.
• Contingent Assets are neither recognized nor disclosed in the financial statements.
 Omegaon Interent Private Limited
(CIN:U74900KA2016PTC087119)
Regd. Off: #22, 4th Floor, Salarpuria Towers-1, Hosur Road, Koramangala, Bengaluru - 560 095

Notes to Financial Statements

2 Significant Accounting Policies: (Continued..)

l. Earnings per share:

• In determining the earning per share, the company considers the net profit attributable to
equity share holders.
• The number of shares used in computing basic earnings per share is the weighted average
number of shares outstanding during the year.
• In computing the diluted earnings per share, weighted average number of shares outstanding

during the year is adjusted for the effects of all dilutive potential equity shares.

m. Leases:
• Assets acquired under finance leases, which effectively transfer to the Company substantially all
the risks and benefits incidental to the ownership of the leased asset, are capitalized at the lower
of the fair value and present value of the minimum lease payment at the inception of the lease
term and disclosed as leased assets.
• Lease payments are apportioned between the finance charges and reduction of the lease liability

so as to achieve a constant rate of interest on the remaining balance of the liability.

• Finance charges are charged directly against income.
• Capitalized leased assets are depreciated over the longer of the estimated useful life of the asset
or the lease term.
• Lease payments under an operating lease are recognized as an expense in the Statement of
Profit and Loss

n. Borrowings and Borrowing Costs:

• In pursuance to the compliance of Schedule III of the Companies Act, 2013, the borrowings
whose tenor is less than 36 months, are classified as Short-term Borrowings
• Borrowing costs attributable to the acquisition or construction of qualifying asset are capitalized
as part of cost of such asset.
• A qualifying asset is one which requires substantial period of time to get ready for its intended
use
• Other borrowing costs are recognised as an expense in the period in which they are incurred
 Omegaon Interent Private Limited
(CIN:U74900KA2016PTC087119)
Regd. Off: #22, 4th Floor, Salarpuria Towers-1, Hosur Road, Koramangala, Bengaluru - 560 095

Notes to Financial Statements

3 Share Capital As at March 31, 2019 As at March 31, 2018

No. of Shares Amount ` No. of Shares Amount `
Authorised Share Capital
Equity Shares of par value Rs. 10/- each 1,00,000 10,00,000 1,00,000 10,00,000

Issued, subscribed and fully paid up shares

Equity Shares of par value Rs. 10/- each 10,000 1,00,000 10,000 1,00,000

Total Issued, Subscribed and Fully Paid-up Share Capital 10,000 1,00,000 10,000 1,00,000

(a) Reconciliation of the shares outstanding at the beginning and at the end of the year:
As at March 31, 2019 As at March 31, 2018
Equity Shares of par value Rs. 10/- each No. of Shares Amount ` No. of Shares Amount `
Outstanding at the beginning of the year 10,000 1,00,000 10,000 1,00,000
Add: Issued during the period - - - -
Less: Extinguished during the period - - - -
Outstanding at the end of the year 10,000 1,00,000 10,000 1,00,000

(b) Terms/ Rights attached to shares

The Company has only one class of equity shares having par value of ` 10 per share. Each holder of equity
shares is entitled to one vote per share.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive assets of
the Company remaining after settlement of all liabilities. The distribution will be in proportion to the number
of equity shares held by the shareholders.

(c) Aggregate number of shares issued for consideration

other than cash during the period of five years
Nil
immediately preceeding the reporting date (i.e., March
31, 2019):

(d) Aggregate number and class of shares bought back

during the period of five years immediately preceeding Nil
the reporting date (i.e., March 31, 2019):

(e) Details of shareholders holding more than 5% shares in the company

As at March 31, 2019 As at March 31, 2018
Equity Shares of par value Rs. 10/- each No. of Shares % holding No. of Shares % holding
Mr. Sreekanth Eragadindla 8,000 80.00% 8,000 80.00%
Mr. Pulicherla Venkatesh 2,000 20.00% 2,000 20.00%
10,000 100% 10,000 100%
 Omegaon Interent Private Limited
(CIN:U74900KA2016PTC087119)
Regd. Off: #22, 4th Floor, Salarpuria Towers-1, Hosur Road, Koramangala, Bengaluru - 560 095

Notes to Financial Statements

(Amount in `) (Amount in `)
As at As at
March 31, 2019 March 31, 2018

4 Reserves and Surplus

Surplus in Statement of Profit and Loss

Balance as at beginning of the year (1,55,006) (3,72,174)
Add/(Less): Net Profit/ (Loss) after tax for the year 2,47,285 2,17,168
92,279 (1,55,006)
Less: Appropriations - -
Balance as at ending of the year 92,279 (1,55,006)

Total Reserves and Surplus 92,279 (1,55,006)

5 Long Term Borrowings

Secured Loans - -

Unsecured Loans
- from Directors 32,00,030
- from Other parties (Shri Ram Chit Finance) -

Total Long Term Borrowings 32,00,030 -

Note on Loan from Shri Ram Chit Finance

The amount of Rs. 8,88,648 avialed as unsecured loan sanctioned on date repaybale in 24
months with EMI of Rs. 39,000. Amount oustanding as on 31 March 2019 will be repaid in next
12 months. So, disclosed under current liabilities.

6 Deferred Tax Liabilities (Net)

(a) Property, Plant and Equipment : Impact of difference

21,936 (1,684)
between tax depreciation and book depreciation
(b) Impact of expenditure charged in statement of profit and loss
- -
in current year but allowed for tax purpose in later years
Gross deferred tax liabilities 21,936 (1,684)

Net Deferred Tax liabiities 21,936 (1,684)

 Omegaon Interent Private Limited
(CIN:U74900KA2016PTC087119)
Regd. Off: #22, 4th Floor, Salarpuria Towers-1, Hosur Road, Koramangala, Bengaluru - 560 095

Notes to Financial Statements

(Amount in `) (Amount in `)
As at As at
March 31, 2019 March 31, 2018
7 Short Term Borrowings

Secured - -

Unsecured
(a) Loans repayble on demand and otherwise
- from Banks (ICICI) 7,12,378 -
- from Other parties - -
(b) Loans and advances from related parties - -
7,12,378 -

Total Short Term Borrowings 7,12,378 -

8 Trade Payables

(i) total outstanding dues of Micro Enterprises and Small

-
Enterprises -
(ii) total outstanding dues of creditors other than Micro
Enterprises and Small Enterprises 7,823 -
Total Trade Payables 7,823 -

9 Other Current Liabilities

Current maturities payable in 12 months 2,35,628 -

Other Payables
- payable to auditors 60,000 -
- expenses payables 5,70,000 5,42,600
Total Other Current Liabilities 8,65,628 5,42,600

10 Short Term Provisions

Provision for Income Tax 68,100 70,781

Total Short term Provisions 68,100 70,781
 Omegaon Interent Private Limited
(CIN:U74900KA2016PTC087119)
Regd. Off: #22, 4th Floor, Salarpuria Towers-1, Hosur Road, Koramangala, Bengaluru - 560 095
(Amount in `)
Notes to Financial Statements
11 Property, Plant and Equipment
Gross Block Depreciation/ Amortisation Net Block
As at Additions Deletions As at As at Charge Deletions As at As at As at
Particulars April 1, 2018 during the year during the year March 31, 2019 April 1, 2018 for the year during the year March 31, 2019 March 31, 2019 March 31, 2018
(i) Tangible Assets
Computer Equipment 1,90,000 5,87,237 - 7,77,237 1,23,759 84,293 - 2,08,052 5,69,185 66,241
1,90,000 5,87,237 - 7,77,237 1,23,759 84,293 - 2,08,052 5,69,185 66,241

(ii) Intangible Assets

Software 79,000 - - 79,000 10,230 26,339 - 36,569 42,431 68,770
79,000 - - 79,000 10,230 26,339 - 36,569 42,431 68,770

Total 2,69,000 5,87,237 - 8,56,237 1,33,989 1,10,632 - 2,44,621 6,11,616 1,35,011

Previous Year 1,90,000 79,000 - 2,69,000 10,192 1,23,797 - 1,33,989 1,35,011 1,79,808
 Omegaon Interent Private Limited
(CIN:U74900KA2016PTC087119)
Regd. Off: #22, 4th Floor, Salarpuria Towers-1, Hosur Road, Koramangala, Bengaluru - 560 095

Notes to Financial Statements

(Amount in `) (Amount in `)
As at As at
March 31, 2017 March 31, 2016
12 Non-Current Investments

Investment in Term deposits with Banks 17,50,000 -

Investment in Shri Ram Chit - 2,80,000
Total Non-Current Investments 17,50,000 2,80,000

13 Inventories

Finished Goods 1,73,432 -

Total Inventories 1,73,432 -

14 Trade receivables

Trade receivables
- less than six months 24,13,020 -
- more than six months - -
Total Trade receivables 24,13,020 -

15 Cash and Cash Equivalents

Balance with Banks

- in Current Accounts 69 2,513
- deposits having maturity less than 12 months - 1,00,000
Cheques, drafts on hand - -
Cash on hand 2,720 7,600
Total Cash and Cash Equivalents 2,789 1,10,113

16 Short-Term Loans and Advances

Loans and Advances to related parties - -

Other loans and advances
- balances with government authorities
- unsecured, considered good 31,567
GST input tax credit 66,007
TDS for 2018-19 5,268
MAT Credit 755
- interest accrued on term deposits
- unsecured, considered good 45,287 -
Total Short Term Loans and Advances 1,17,317 31,567
 Omegaon Interent Private Limited
(CIN:U74900KA2016PTC087119)
Regd. Off: #22, 4th Floor, Salarpuria Towers-1, Hosur Road, Koramangala, Bengaluru - 560 095

Notes to Financial Statements

(Amount in `) (Amount in `)
For year ended For year ended
March 31, 2019 March 31, 2018

17 Revenue from Operations

Operating income
Sale of goods and services 1,16,03,290 1,07,94,109
Total Revenue from Operations 1,16,03,290 1,07,94,109

18 Other Income

Interest on Fixed Deposit 50,319 -

Commission income 4,673 41,513
Income tax refund 610 -
Misc Income - 18,796
Total Other Income 55,602 60,309

19 Cost of materials/services consumed

Cost of services /materials consumed 69,43,821 84,42,659

Change in inventories 69,43,821 84,42,659

20 Changes in Inventories

Opening Stock Salary - -

Closing Stock Staffwelfare (1,73,432) -
Change in inventories (1,73,432) -

21 Employee Benefit Expenses

Salaries and Wages Salary 20,23,795 8,47,500

Staff Welfare Expenses 1,98,686 26,147
Staff Insurance Staffwelfare 2,53,507 -
Total Employee Benefit Expenses 24,75,988 8,73,647

22 Finance Costs

Interest on OD/CC 37,777 -

Nodal account charges 3,39,033 -
Total Finance Costs 3,76,810 -
 Omegaon Interent Private Limited
(CIN:U74900KA2016PTC087119)
Regd. Off: #22, 4th Floor, Salarpuria Towers-1, Hosur Road, Koramangala, Bengaluru - 560 095

Notes to Financial Statements

(Amount in `) (Amount in `)
For year ended For year ended
March 31, 2019 March 31, 2018

23 Other Expenses

Rent and Maintenance

- Building 6,23,181 4,64,953
Payment to auditors 60,000 50,000
Professional charges 2,09,619 -
Internet and Telephone expenses 1,98,345 2,71,942
Accomodation and hotel expenses 39,263
GST Late Fee 17,450
Repairs and maintenance 14,902 -
Printing and stationary 7,099 -
Selling and Marketing Expenses 32,018 2,85,072
Bank charges - 890
Travel Expenses 3,84,918 33,175
Misc. Expenses (Round off) 27 19,336
Total Other Expenses 15,86,823 11,25,368

24 Earning Per Equity Share

Profit / (Loss) For The Year After Tax (A) 2,47,285 2,17,168
Weighted Average Number of Equity Shares (B) 10,000 10,000
(B) adjusted for dilutive potential eq shares (C) 10,000 10,000
Basic EPS (A/B) 24.73 21.72
Diluted EPS (A/C) 24.73 21.72
 Omegaon Interent Private Limited
(CIN:U74900KA2016PTC087119)
Regd. Off: #22, 4th Floor, Salarpuria Towers-1, Hosur Road, Koramangala, Bengaluru - 560 095

Notes to Financial Statements

25 Other Notes to Financial Statements (Amount in `)

a. Contingent Liabilities and Commitments As at As at
March 31, 2019 March 31, 2018
Contingent Liabilites - -

Commitments - -

The company doesn't hae capital commitments and other commitments as at the year end.

For year ended For year ended

b. Professional and Technical Fee include auditors remuneration towards:
March 31, 2019 March 31, 2018
Statutory Audit 30,000 30,000
Tax Audit 25,000 -
Other Management services 5,000 -
60,000 30,000

For year ended For year ended

c. Foreign currency Earnings and Expenditure:
March 31, 2019 March 31, 2018
Earnings in Foreign Currency - -

Expenditure in Foreign Currency - -

d. Related party disclosure:

i) Name of related parties and description of relationship:
Name of Related Party Relationship
Mr. Eragadindla Sreekanth Director
Mr. C V Rajagopal Reddy Director (ceased w.e.f April 13, 2019)

ii) Transactions during the year with Related parties: (Amount in `)

For year ended For year ended
Nature of Transaction
March 31, 2019 March 31, 2018
Directors Remuneration:
Mr. Eragadindla Sreekanth 4,89,200 -

Unsecured Loans availed:

Mr. Eragadindla Sreekanth 19,50,000 -
Mr. C V Rajagopal Reddy 12,50,030 -

Unsecured Loans Repaid: - -

 Omegaon Interent Private Limited
(CIN:U74900KA2016PTC087119)
Regd. Off: #22, 4th Floor, Salarpuria Towers-1, Hosur Road, Koramangala, Bengaluru - 560 095

Notes to Financial Statements

25 Other Notes to Financial Statements (continued..,)

d. Related party disclosure:

iii) Details of amounts due to or due from related parties: (Amount in `)
As at As at
Particulars
March 31, 2019 March 31, 2018

Amount due payable:

Mr. Eragadindla Sreekanth 19,50,000 -
Mr. C V Rajagopal Reddy 12,50,030 -

Amount outstanding receivable: - -

f. There were no dues to Micro, Small and Medium enterprises at the end of the year.

g. There were no pending litigations on the compnay at the end of the year.

h. Material Events occurred after March 31, 2019 are taken into cognizance

i. The balances reported under Trade receivables, Trade payables and loans/advances are subject
to confirmation.

j. Previous year figures have been regrouped/ reclassified, wherever necessary to conform to the
current presentation.

for and on behalf of Board of Directors of

Omegaon Interent Private Limited

Sreekanth Eragadindla Gowdvarti Vinay

Director Director
(DIN: 07403353) (DIN: 08440512)

Place: Bengaluru
Date: August 30, 2017
 Omegaon Interent Private Limited
Notes to Income Tax Calculation
(Amount in `)
Schedule of Fixed Assets
(Statement of Depreciation provided as per Income Tax Act,1961)
Asset Gross Block Net Block
Rate of Opening Additions Total as on Current Year of Assets
Sl. No Asset Block Dep WDV >=180 Days <180 Days Deletions 31.03.2017 Depreciation 31.03.2019
Plant and Machinery -
1 Computers and Software 40.00% 1,41,488 1,37,178 4,50,059 - 7,28,725 2,01,478 5,27,247
Current Year Total 1,41,488 1,37,178 4,50,059 - 7,28,725 2,01,478 5,27,247
Name : Omegaon Interent Private Limited PAN : AACCO2976L
Address: Regd. Off: #22, 4th Floor, Salarpuria Towers-1, Hosur Road, Koramangala, Bengaluru - 560 095 P.Y : 2018-19
A.Y : 2019-20
DOI: 21 March 2019
STATEMENT SHOWING COMPUTATION OF INCOME
Amt In Rs Amt In Rs Amt In Rs
I Income from House Property:
II Income (loss) from Business
Net Profit as per Profit & Loss Account 3,38,250
Add : Inadmissible Expenses
Depreciation 1,10,632
Less : Income Considered seperately
Interest (50,319)
Less : Deductions as per Income Tax Act
Depreciation U/s 32 (2,01,478)
Income From Business 1,97,085

III Income from Other Sources

Interest 50,319
Income after inter head set off 2,47,404
Less: Set off of Business Loss -
Gross Total Income 2,47,404
Less: Deductions
Qualifying Deductible
Section Gross Amount
Amount Amount
-

Total Income 2,47,404

Rounded off to nearest Rs. 10 as per section 288A 2,47,400

STATEMENT SHOWING COMPUTATION OF TAX UNDER IT ACT

Tax on Total Income 61,850

Add : Surcharge -
Add : Education Cess @ 4% 2,474
64,324
 STATEMENT SHOWING COMPUTATION OF INCOME U/S 115 JB
Book Profits 3,38,250
Add: Items referred to in Clause (a) to (f) of Sub Section 2 -
3,38,250
Less: Items referred to in clause (i) to (vii) of Sub Section 2 -
. 3,38,250
Tax @ 18.5% Of Book Profit 62,576
Education Cess @ 4% 2,503
Total Tax Payable 65,079

STATEMENT SHOWING COMPUTATION OF TAX PAYABLE

As per Income tax Act 64,324

As Per MAT 65,079
Tax Payable 65,079
Less: MAT Credit Entitlement -
65,079
Add: Interest Under Section 234 A -
Interest Under Section 234 B 3,588
Interest Under Section 234 C 3,016 6,604
Total Tax Payable 71,683
Less: Advance Tax -
Less: TDS as per 26AS 5,267
Self Assessment Tax - 5,267
Tax Payable 66,420

Statement of MAT Credit carried forward

A.Y Particulars B/f Set Off C/f
2019-20 MAT Credi 755
Total - - 755

Statement showing TD for financial year 2018-19

Particulars Amt. in Rs.

TDS receivable as per 26AS
BLRI01705E ICICI Bank Ltd 5,032
MUMC16829B Cyberplat 235
TOTAL 5,267
As per books of accounts 5,268
Difference (1)
 Calcualation of Deferred Tax

Fixed Assets Closing Opening

WDV of depreciable assets under
Income Tax Act 5,27,247 1,41,488
Books of Accounts 6,11,616 1,35,011
Gross DTA Deductible Temporary Difference -21,936 1,684

Provision or sums payable for tax, duty, cess, payable and not paid till the date of filing of return.
Sec 43B - Gratuity Closing at Balance Sheet Date - -
Gross DTA Deductible Temporary Difference - -

Expenses on which TDS not deducted

-
-
Gross DTA Deductible Temporary Difference - -

Gross DTA -21,936 1,684

Gross DTL - -
Net DTL 21,936 1,684

Disclosure in Financial Statements:

Balance Sheet As per audited financial s
DTA -21,936 1,684
DTL - -
Profit and Loss Account 23,620
 
CHAPTER-5 
FINDINGS AND SUGGESTIONS  
 
CONCLUSION AND FUTURE DIRECTIONS FOR THE STUDY 
 
Conclusion  
Cash  flow  statements  and  accrual  accounting  statements  play  an  important  role  for  any 
company’s  financial  manager  for  making  future  and  present  decision  of  that company. Then, 
the  company's  financial  managers  take  into  consideration  about  the cash flow statements and 
accrual  accounting  statements  from  the  past  time  and  analyze  them  for  taking  the  best 
alternative for the present and future of their company with an open vision. 
 
  An  accounting  statement  is  called  as  the  statement  of  cash  flow  which shows the amount of 
cash  generated  and  used  by  a  company  in  a  given  period.  Having  ample  cash  on  hand  will 
ensure  that  creditors,  employers  and others can be paid on time. But accrual accounting is the 
opposite  of  cash  accounting,  which  recognizes  transaction  only when there is an exchange of 
cash.  The  need  for  this  method  arose  out  of  the  increasing  complexity  of  business 
transactions and a desire for more accrual financial information. Selling on credit and projects 
that  provide  revenue  streams  over  a  long  period  of  time  affect  the  company’s  financial 
condition at the point of the transaction.   
 
An enterprise should report cash flows from operating activities using either:  
1)  the  direct  method,  whereby  major  classes  of  gross  cash  receipts  and  gross  cash 
payments are disclosed;or  
2)the  indirect  method,  whereby  net  profit  or  loss  is  adjusted  for  the  effects  of 
transactions  of  a  non-cash  nature,  any  deferrals  or accruals of past or future operating 
cash  receipts  or  payments  and  items  of  income  or  expense  associated  with  investing 
or financing cash flows. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BIBLIOGRAPHY 
 
1.http://WWW.investopedia.com/exam-guide/cfa-level-1/financial-statements/cash-flow-dire
ct.asp 
2.http://WWW.accountingtools.com/cash-flows-direct-method 
3.http://accountingexplained.com/financial/statements/cash- 
flow-operating-activities-direct-method 
 
WEBSITES 
WWW.iosrjournals.org 
WWW.Account Learning.blogspot.com 
Shodhganga.inflibnet.ac.in 
WWW.Yourarticlelibrary.com 
WWW.answers.com