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COMMERCIAL PROCEDURES/ASSET ACCOUNTING CONCEPTS

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L2 : COMMERCIAL PROCEDURES/ASSET ACCOUNTING
CONCEPTS
Objective
The main objective of the company (BSNL) is to increase the tele-density in the
country by providing 895.19 lakhs of Telephone connections before 2009-2010.
For this the company needs enormous financial investment besides the internal
resources. The other objectives of BSNL are:
Provide telephone on demand by March 2003
Provide telephone in all villages by December 2002
Raise telephone density to 7 by 2005 and 15 by 2010
Provide Bandwidth on demand
Build Customers confidence through Quality and reliable service
Provide world class telecom infrastructure
Mobilization Management and Accounting of the financial objects more
effectively requires skill and better accounting system. There have been
phenomenal changes in the telecom sector during the recent past and the BSNL
is pushed into competitive market along with Private Operators in providing
telecom service. Being a company, BSNL has to adopt Companies Act 1956 and
follow the scientific Accounting System with Clear Accounting Concept.
Accounting Concept
The Financial Statements of Bharat Sanchar Nigam Limited are prepared under
the historical cost convention and on accrual basis in accordance with Indian
Generally Accepted Accounting Principles and in accordance with the provisions
of the Companies Act 1956. The salient features of BSNL are enlisted below:
1. The Accounts are prepared under historical convention adopting
the Accrual method of accounting concept.
2. Depreciation is calculated under ‘Written Down Method’.
3. Maintenance of Books of Accounts as per Company Act on realistic
basis. This means that the transactions are recorded in the books of
accounts only when the actual transactions take place.
4. Preparation and Maintenance of Separate Accounts in Cash, TRA,
Works and Claims Sections on monthly basis with complete supporting
schedules.

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5. Effective Budget Control and Collection account Management with
fund flow and cash flow Statements.

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L2 : COMMERCIAL PROCEDURES/ASSET ACCOUNTING CONCEPTS Objective The main objective of the company (BSNL) is to increase the tele-density in the country by providing 895.19 lakhs of Telephone connections before 2009-2010. For this the company needs enormous financial investment besides the internal resources. The other objectives of BSNL are: Provide telephone on demand by March 2003 Provide telephone in all villages by December 2002 Raise telephone density to 7 by 2005 and 15 by 2010 Provide Bandwidth on demand Build Customers confidence through Quality and reliable service Provide world class telecom infrastructure Mobilization Management and Accounting of the financial objects more effectively requires skill and better accounting system. There have been phenomenal changes in the telecom sector during the recent past and the BSNL is pushed into competitive market along with Private Operators in providing telecom service. Being a company, BSNL has to adopt Companies Act 1956 and follow the scientific Accounting System with Clear Accounting Concept. Accounting Concept The Financial Statements of Bharat Sanchar Nigam Limited are prepared under the historical cost convention and on accrual basis in accordance with Indian Generally Accepted Accounting Principles and in accordance with the provisions of the Companies Act 1956. The salient features of BSNL are enlisted below: 1. The Accounts are prepared under historical convention adopting the Accrual method of accounting c ...
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