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Accounting Policies of Cistro Telelink Ltd. Company

Mar 31, 2014

1. GENERAL :

The Financial Statements have generally been prepared on the historical cost convention. Accounting policies not specifically referred to otherwise are in consonance with generally accepted accounting principals.

2. BASIS OF ACCOUNTING :

The company follows the mercantile system of accounting generally except otherwise stated herein below, if so.

3. FIXED ASSETS :

Fixed assets are stated at cost of less accumulated depreciation. No Depreciation has been provided during the year under consideration.

4. INVESTMENTS : Investments are stated at cost.

5. INVENTORIES :

Inventory is valued at cost or net realizable value whichever is less.

6. REVENUE AND EXPENDITURE RECOGNITION :

Revenue is recognized and expenditure is accounted for on their accrual except insurance claim, claims in respect of material purchased and sold which are accounted for on cash basis.

7. MISCELLANEOUS EXPENDITURE :

Miscellaneous Expenditure such as preliminary expenditure are amortized over a period of 5 years.

8. DEFER TAX :

The Deferred tax is recognized for all temporary differences subject to the consideration of prudence and at currently available rates. Deferred Tax assets are recognized only if there is virtual certainty that they will be realized.

9. FOREIGN CURRENY TRANSACTION : There is no such transaction during the year.


Mar 31, 2012

A. Method of Accounting : The financial statements are prepared under historical cost conventions as going concern and are consistent with generally accepted accounting principles on an accrual basis unless otherwise stated.

B. Use of Estimates : The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between actual results and estimates are recognised in the period in which the results are known / materialized.

C. Fixed Assets : Fixed assets are stated at cost (net of VAT and CENVAT of which credit is allowed) less accumulated depreciation and impairment, if any. Cost includes all expenses incurred to bring the asset to present location and condition. All direct expenses are capitalized until fixed assets are put to use.

D. Depreciation/Amortization : The Company has not charged depreciation on car during the year.

E. Investments : Investments are either classified as long term investment or short term investment based on management intention. Long Term investments are stated at cost. Management is of the view that value of Long Term Investment is equal to cost hence Provision for diminution in value of long term investment is not required.

F. Borrowing Cost : There is no fresh borrowing during the year.

G. Inventories : Inventory is valued at cost or net realizable value whichever is less.

H. Revenue Recognition / Sales : Sales revenue is recognized on transfer of the significant risk and

reward of ownership of the goods to the buyer and stated at net of discount, rebate and returns.

I. Employees Benefits : Provisions for Gratuity and Long term employee benefits are not made, because

there is no liabilities arise of this account.

J. Taxation : Since there is loss during the year hence Provision for current tax is Nil in accordance with

the provisions of the Income Tax Act 1961. Deferred tax assets arising on account of timing difference are recognized and carried forward to the extent there is virtual certainty that these would be realized in future. Because there is no virtual certainty that these would be realized in future hence provision for deferred tax assets is not made.

K. Provisions, Contingent Liabilities and Contingent Assets : Provisions involving substantial degree

of estimation in measurement that can be reliably ascertained are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes, when no reliable estimate is made or when there is present or past obligation that may, but probably will not, require an outflow of resources. Contingent Assets are neither recognized nor disclosed in the financial statements.

L. Impairment of Assets : An asset is treated as impaired when the carrying cost of the asset exceeds

its recoverable value. Recoverable amount is higher of net selling price or value in use. Management reviews the carrying cost of the assets at the end of each balance sheet date and is of the view that the recoverable value in the assets is more than the carrying amount and hence no provision for impairment of assets has been made.


Mar 31, 2010

A. Method of Accounting :

The financial statements are prepared under historical cost conventions as going concern and are consistent with generally accepted accounting principles on an accrual basis unless otherwise stated.

B. Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between actual results and estimates are recognised in the period in which the results are known / materialized.

C. Fixed Assets:

Fixed assets are stated at cost (net of VAT and CENVAT of which credit is allowed) less accumulated depreciation and impairment, if any. Cost includes all expenses incurred to bring the asset to present location and condition. All direct expenses are capitalized until fixed assets are put to use.

D. Depreciation/Amortisation :

The Company has not charged depreciation on car during the year.

E. investments:

Investments are either classified as long term investment or short term investment based on management intention. Long Term investments are stated at cost. Management is of the view that value of Long Term Investment is equal to cost hence Provision for diminution in value of long term investment is not required.

F. Borrowing Cost:

There is no fresh borrowing during the year.

G. inventories:

Inventory is valued at cost or net realizable value whichever is less.

H. Revenue Recognition / Sales :

Sales revenue is recognized on transfer of the significant risk and reward of ownership of the goods to the buyer and stated at net of discount, rebate and returns.

I. Employees Benefits :

Provisions for Gratuity and Long term employee benefits are not made, because there is no liabilities arise of this account.

J. Taxation:

Since there is loss during the year hence Provision for current tax is Nil in accordance with the provisions as per Income Tax Act 1961. Deferred tax assets arising on account of timing difference are recognized and carried forward to the extent there is virtual certainty that these would be realized in future. Because there is no virtual certainty that these would be realized in future hence provision for deferred tax assets is not made.

K. Provisions. Contingent Liabilities and Contingent Assets :

Provisions involving substantial degree of estimation in measurement that can be reliably ascertained are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes, when no reliable estimate is made or when there is present or past obligation that may, but probably will not, require an outflow of resources. Contingent Assets are neither recognized nor disclosed in the financial statements.

L. Impairment of Assets :

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. Recoverable amount is. higher of net selling price or value in use. Management reviews the carrying cost of the assets at the end of each balance sheet date and is of the view that the recoverable value in the assets is more than the carrying amount and hence no provision for impairment of assets has been made.

 
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