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 jouJeçs
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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