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Accounting Policies of Gamma Infoway Exalt Ltd. Company

Mar 31, 2011

A) Accounting convention:

The financial statements have been prepared in compliance with all material aspects of the Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government, to the extent applicable and in accordance with the relevant provisions of the Companies Act, 1956.

The financial statements are prepared on the basis of historical cost convention, and on the accounting principle of a going concern.

The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties.

b) Use of estimates:

The presentation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affects the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively.

c) Fixed assets:

Fixed assets are stated at cost less accumulated depreciation. Cost includes all cost incidental to acquisition, installation, commissioning, pre-operative expenses allocated to such assets.

d) Depreciation:

i. Depreciation on fixed assets has been provided on straight-line method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

ii. Fixed assets whose actual cost does not exceed Rs.5,000 jouJe§s are depreciated fully in the year of acquisitions.

e) Foreign currency transactions:

Foreign currency transactions are recorded at the exchange rates prevailing on the date of such transactions. Monetary assets and liabilities as at the Balance Sheet date are translated at the rates of exchange prevailing at the date of the Balance Sheet.

f) Borrowing cost:

Borrowing cost attributable to the acquisition and construction of qualifying assets up to the date of such acquisition or construction are capitalized as part of the cost of respective assets. Other borrowing costs are charged to revenue in the period in which they are incurred.

g) Revenue recognition:

Income arising on account dealing in Tele communication equipments is accounted on the accrual basis.

h) Retirement benefits:

No provision is made for present liability or future payment of gratuity. In the opinion of the management the same is not applicable to the company

i) Provisions, contingent liability and contingent assets:

The Company creates a provision when there is a present obligation as a result of a past event that probably requires 'an outflow of resources and a reliable estimate can be made of the amount of the obligation.


Mar 31, 2010

A) Accounting convention:

The financial statements have been prepared in compliance with all material aspects of the Accounting Standards prescribed in the Companies (Accounting Standards) Rules. 2006 issued by the Centra1 Governmen to the extent applicable and in accordance with the relevant provisions of the Compainies Act, 1956.

The financial statements are prepared on the basis of historical cost convention, and on the accounting principle of a going concern.

The Company follows mercantile system of accounting ano recognizes income and expenditure on accrual basis except those with significant uncertainties.

b) Use of estimates:

The presentation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affects the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively.

c) Fixed assets:

Fixed assets are stated at cost less accumulated depreciation. Cost includes all cost incidental to acquisition, installation, commissioning, pre-operative expenses allocated to such assets.

d) Depreciation:

i. Depreciation on fixed assets has been provided on straight-line method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

ii. Fixed assets whose actual cost does not exceed Rs.5,000 or less are depreciated fully in the year of acquisition.

f) Foreign currency transactions:

i. Foreign currency transactions are recorded at the exchange rates prevailing on the date of such transactions. Monetary assets and liabilities as at the Balance Sheet date are translated at the rates of exchange prevailing at the date of the Balance Sheet.

g) Borrowing cost:

Borrowing cost attributable to the acquisition and construction of qualifying assets up to the date of such acquisition or construction are capitalised as part of the cost of respective assets. Other borrowing costs are charged to revenue in the period in which they are incurred.

h) Revenue recognition:

Incomearising on account dealing in Tele ommunication equipments is accounted on the accrual basis.

i) Retirement benefits:

No provision is made for present liability or future payment of gratuity. In the opinion of the management the same is not applicable to the company

o) Provisions, contingent liability and contingent assets :

The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation.

 
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