Format

A) Financial Statements
ABC Company
Balance Sheet as at
(Amount in NRs.)
As at As at
Particulars Notes
31 Asadh 20XX 31 Asadh 20YY
A Assets
1 Non-current assets
(a) Fixed assets 5
(i) Tangible assets
(ii) Intangible assets
(iii) Capital work-in-progress
(iv) Intangible assets under development
(b) Non-current investments 6
(c) Deferred tax assets (net)
(d) Long-term loans and advances 7
(e) Other non-current assets 8
2 Current assets
(a) Current investments 9
(b) Inventories 10
(c) Trade receivables 11
(d) Cash and bank balances 12
(e) Short-term loans and advances 13
(f) Other current assets 14
Total Assets - -
B Equity and liabilities
1 Shareholders funds
(a) Share capital 15
(b) Reserves and surplus 16
2 Non-current liabilities
(a) Long-term borrowings 17
(b) Deferred tax liabilities (net)
(c) Long-term provisions
3 Current liabilities
(a) Short-term borrowings 18
(b) Trade payables 19
(c) Other current liabilities 20
(d) Short-term provisions
Total equity and liabilities - -
The accompanying notes form an integral part of these financial statements
ABC Company
Statement of Profit and Loss for the year ended
(Amount in NRs.)
For year ended For year ended
Particulars Note
1 Income
(a) Revenue from operations 21
(b) Income from interconnection usage (gross)
(c) Other income 22
Total income - -
2 Expenses
(a) Network operating cost 23
(b) Government charges 24
(f) Other direct expenses 25
(g) Employee benefits expense 26
(h) Administration expenses 27
(i) Sales and marketing expenses 28
(j) Maintenance cost 29
(j) Other expenses 30
Total expenses - -
Earnings before finance costs, exceptional items,
3 - -
extraordinary items, interest, tax, depreciation and
4 Finance costs 31
5 Depreciation and amortisation expenses
6 Charity and donation
7 Profit/(loss) before tax - -
8 Tax expense:
(a) Current tax expense for current year
(b) Current tax expense relating to prior years
(c) Net current tax expense
(d) Deferred tax
9 Profit/(loss) for the year - -
10 Earnings per share
(a) Basic and diluted

ABC Company
Statement of Cash Flow for the year ended
(Amount in NRs.)
Particulars Note
A Cash flow from operating activities
1 Net Profit/(loss) before tax
Adjustments for:
(a) Depreciation and amortisation expenses
(b) Provision for impairment of fixed assets and intangibles
(c) Amortisation of share issue expenses and discount on
shares
(d) (Profit)/loss on sale/write off of assets
(e) Expense on employee stock option scheme
(f) Finance costs
(g) Interest income
(h) Dividend income
(i) Liabilities / provisions no longer required written back
(j) Provision for doubtful trade and other receivables, loans
and advances
(k) Other provisions
(l) Other non-cash charges
(m) Net unrealised exchange (gain)/loss
Operating cash flow before working capital changes - -
2 Changes in working capital
Adjustments for changes in operating assets:
(a) (Increase)/decrease in inventories
(b) (Increase)/decrease in trade receivables
(c) (Increase)/decrease in short-term loans and advances
(d) (Increase)/decrease in long-term loans and advances
(e) (Increase)/decrease in other current assets
(f) (Increase)/decrease in other non-current assets
Adjustments for changes in operating liabilities:
(a) Increase/(decrease) in trade payables
(b) Increase/(decrease) in other current liabilities
(c) Increase/(decrease) in other long-term liabilities
(d) Increase/(decrease) in short-term provisions
(e) Increase/(decrease) in long-term provisions
Cash generated from operations - -
Net income tax (paid)/refunds
Net cash flow from/(used in) operating activities (A) - -
B Cash flow from investing activities
(a) Purchase of tangible assets
(b) Purchase of intangible assets
(c) Proceeds from sale of fixed assets
(d) Purchase of long-term investments
(e) Proceeds from sale of long-term investments
(f) Loans given
(g) Loans realised
(h) Interest received
(i) Dividend received
Net cash flow from / (used in) investing activities (B) - -
ABC Company
Statement of Cash Flow for the year ended
(Amount in NRs.)
Particulars Note
C Cash flow from financing activities
(a) Proceeds from issue of equity shares
(b) Proceeds from issue of preference shares
(c) Redemption/buy back of preference/equity shares
(d) Proceeds from issue of share warrants
(e) Share application money received/(refunded)
(f) Proceeds from long-term borrowings
(g) Repayment of long-term borrowings
(h) Net increase/(decrease) in working capital borrowings
(i) Proceeds from other short-term borrowings
(j) Repayment of other short-term borrowings
(k) Interest and other finance charges paid
(l) Dividends paid
(m) Tax on dividend
(n) Receipt of long-term borrowings
Net cash flow from / (used in) financing activities (C) - -
Net increase / (decrease) in Cash and bank balances (A+B+C) - -
Cash and bank balances at the beginning of the year
Cash and balances at the end of the year
B) Notes to the financial statements for the year ended . (For illustrative purpose only)
1. Corporate information
2. Basis of preparation
The financial statements of ABC Company have been prepared in accordance with
generally accepted accounting principles practiced in Nepal (Nepal GAAP). The financial
statements have been prepared to comply in all material respects with the accounting
standards notified under Nepal Accounting Standards (NAS) and the relevant provisions
of the Companies Act, 2063. The financial statements have been prepared under the
historical cost convention and on accrual basis, unless stated otherwise. The accounting
policies have been consistently applied are consistent with those used in the previous year.
The financial statements are prepared on the assumption of going concern.
3. Summary of significant accounting policies
3.1 Use of estimates

The preparation of the financial statements in conformity with Nepal GAAP requires the
management to make judgment, estimates and assumptions that affect the reported amounts
of assets and liabilities, disclosure of contingent liabilities as at the date of the financial
statements, and the reported amounts of revenue and expenses during the reported period.
Actual results could differ from those estimates, but that difference is not expected to be
significant. Although these estimates are based upon managements best knowledge of
current events and actions, uncertainty about these assumptions and estimates could result
in the outcomes requiring a material adjustment to the carrying amounts of assets and
liabilities in future periods. The figures are rounded off to nearest Nepalese rupees.
3.2 Tangible assets

Tangible assets are stated at cost of acquisition/constructive inclusive of incidental
expenses related to such acquisition/construction, net of accumulated depreciation and
accumulated impairment losses, if any. The cost of constructed assets includes the cost of
materials, direct labor and other related costs. Subsequent costs are included in the assets
carrying amount or recognized as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow and the cost of the item
can be measured reliably. The carrying amount of the replaced part is derecognized. All
other repair and maintenance costs are recognized in the statement of profit and loss as
incurred. Capital work in progress is valued at cost.
Tangible assets on lease, where all significant risks and rewards of ownership are
effectively retained by the lessor, are classified as operating leases. Expenditures incurred
for renovation and improvement of leased assets on operating lease whose economic
benefit is expected to accrue for more than one accounting period are capitalized under
leasehold tangible assets. Amortization of capitalized leased assets is computed on the
straight line method over the useful life of the assets.
Gains and losses arising from retirement or disposal of the tangible assets are determined
as the difference between the net disposal proceeds and the carrying amount of the asset
and are recognized in the statement of profit and loss on the date of retirement or disposal.
Asset that have been decommissioned or has been identified as damaged beyond economic
repair or rendered useless due to obsolescence are written off wherever identified.
Depreciation on tangible assets is provided on the straight line method based on useful
lives of respective assets as estimated by the management. The assets residual values and
useful lives are reviewed at each financial year end or whenever there are indicators for
review, and adjusted prospectively. Freehold land is not depreciated.
Estimated useful lives of the assets are as follows:
Useful life Depreciation

Description of assets
(in years) rate (in %)
Leasehold land Period of lease
Building, structures and other erections of
20 5
immovable nature
Computer, data processing equipment,
4 25
furniture, fixtures and office equipment
Automobiles, bus and mini-bus 5 20
Plant and machinery, GSM/CDMA equipment,
6.67 15
billing equipment, BTS and other equipment
Note: the depreciation rate above is as per the Income Tax Act, 2058 and for illustrative
purpose only.
3.3 Intangible assets

Identifiable intangible assets are recognized when the asset is under control, it is probable
that future economic benefits attributed to the asset will flow and the cost of the asset can
be reliably measured.
At initial recognition, the separately acquired intangible assets are recognized at cost.
Following initial recognition, the intangible assets are carried at cost less any accumulated
amortization and accumulated impairment loss, if any.
Amortization is recognized in the statement of profit and loss on a straight line basis over
the estimated useful lives of intangible assets from the date they are available for use.
Changes in the expected useful life or the expected pattern of consumption of future
economic benefits embodied in the asset is accounted for by changing the amortization
period or method, as appropriate, and are treated as changes in accounting estimates.
(i) Software
Software is capitalized at the amounts paid to acquire the respective license for use
and is amortized over the period of license. The expenditure incurred on software
and related implementation costs are capitalized to intangible assets where it is
reasonably estimated that the software has an enduring useful life.
(ii) Licenses
Acquired licenses (including spectrum) are initially recognized at cost.
Subsequently, licenses are measured at cost less accumulated amortization and
accumulated impairment loss, if any. Amortization is recognized in the statement
of profit and loss on a straight line basis over the unexpired period of the license
commencing from the date when the related network is available for intended use
in the respective jurisdiction. Intangible assets under development are valued at
cost.
3.4 Impairment of assets

Impair-able fixed assets on cash generating unit concept are identified at the year-end for
the purpose of arriving at impairment loss thereon, if any, being the difference between the
carrying value and recoverable value of relevant assets. Impairment loss when crystalizes
is charged to revenue for the year.
3.5 Capital work-in-progress

The expenditures incurred in acquisition and installation of new telecommunication
systems and equipment till the date of commissioning or in construction of civil works till
the date of completion is taken to capital work-in-progress. The value of capital work-in-
progress includes stock of equipment lying in store or in transit for the purpose of used in
the installation. The value also includes the balances with contractors and suppliers of the
systems and equipment for the value to be received. The equipment are capitalized upon
commissioning and the civil works are capitalized upon handling over for use.
3.6 Investment
Investment, which are readily realizable and intended to be held for not more than one year
from the date on which such investments are made, are classified as current investments.
All other investments are classified as non-current investments.
On initial recognition, all investments are measured at cost. The cost comprises of purchase
price and directly attributable acquisition charges such as brokerage, fees and duties.
Current investments are carried in the financial statements at lower of cost and fair value
determined on an individual investment basis. Non-current investments are valued at cost.
On disposal of investment, the difference between its carrying amount and net disposal
proceeds is charged or credited to the statement of profit and loss.
3.7 Cash and bank balances

Cash and bank balances comprise cash-in-hand, cash-in-transit (bank transfers and cheques
in collection which are collected in the subsequent period), and deposits with banks in
various forms of deposit accounts which may or may not bear interest, but which are not
of the nature of investment.
3.8 Inventories
Inventories are valued at the lower of cost and net realizable value. Cost is determined on
first in first out (FIFO) basis. Net realizable value is the estimated selling price in the
ordinary course of business, less estimated costs of completion and the estimated costs
necessary to make the sale. Obsolete and slow-moving inventory based on management
estimates of the usability of inventory are provided for.
3.9 Revenue recognition and receivables

Revenue is recognized to the extent that it is probable that the economic benefits will flow
and the revenue can be reliably measured. Revenue is measured at the consideration
received/receivable, excluding discounts, rebates, and value added tax (VAT),
telecommunication service charge. Revenue arrangements against specific criteria are
assessed, i.e. whether it has exposure to the significant risks and rewards associated with
the sale of goods or the rendering of services, in order to determine if it is acting as a
principal or an agent. Receivables and debtors balances are stated at book balance, net of
provisions for doubtful debts made.
(i) Service revenues

Service revenues include amounts invoiced for usage charges, sale of prepaid
recharge cards, fixed monthly subscription charges and very small aperture
terminal (VSAT), internet usage charges, bandwidth services, roaming charges,
activation fees, processing fees and fees for value added services. Service revenues
also include revenues associated with access and interconnection for usage of the
telephone network by other operators for local, domestic long distance and
international calls and data messaging services.
Service revenues from the internet and VSAT business comprise revenues from
registration, installation and provision of internet and VSAT services.
Revenues from national and international long distance operations comprise

revenue from voice services which are recognized on provision of services while
revenue from bandwidth services (including installation) is recognized over the
period of arrangement.
Deferred revenue includes amount received in advance from customers which

would be recognized over the periods when the related services are expected to be
rendered.
(ii) Equipment sales

Equipment sales consist primarily of revenues from sale of telecommunication
equipment and related accessories to customers. Revenue from equipment sales
transactions are recognized when the significant risks and rewards of ownership are
transferred to the buyer and when no significant uncertainty exists regarding
realization of consideration.
(iii) Investing and other activities

Income on account of interest and other activities are recognized on an accrual
basis.
(iv) Dividend income

Dividends are accounted for when the right to receive the payment is established.
(v) Provision for doubtful debts

Amounts outstanding for more than 90 days in case of active subscribers, roaming
receivables, receivables for data services and for entire outstanding from
deactivated customers net off security deposits or in specific cases where the
management is of the view that the amounts from certain customers are not
recoverable, are provided for.
For receivables due from other operators/service providers on account of their

national long distance (NLD) and international long distance (ILD) traffic for voice
and interconnect usage charges (IUC), amounts outstanding for more than 120 days
from the date of billing, net of any amounts payable to the operators or in specific
cases where the management is of the view that the amounts from these operators
are not recoverable, are provided for.
3.10 Subscriber/customer deposit

Subscriber/customer deposit are the deposits collected for the various types of services that
are of refundable nature and these deposits may be refunded at the time of termination of
services. Since the termination of the services is not expected, these advances are presented
under long-term borrowings.
3.11 License fees, spectrum/frequency charges

Fees on license and spectrum/frequency is computed as per the licensing agreement,
frequency policy at the prescribed rate and is expensed as incurred.
3.12 Foreign currency
(i) Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying
to the foreign currency amount the exchange rate between the reporting currency
and the foreign currency at the date of the transaction.
(ii) Conversion
Foreign currency monetary items are re-translated using exchange rates prevailing
at the reporting date using the closing rate. Non-monetary items which are carried
in terms of historical cost denominated in a foreign currency are reported using the
exchange rate at the date of the transaction; and non-monetary items which are
carried at fair value or other similar valuation denominated in a foreign currency
are reported using the exchange rates that existed when the values were determined.
(iii) Exchange differences

Exchange differences arising on the settlement of monetary items or on restatement
of monetary items at rates different from those at which they were initially recorded
during the year, or reported in previous financial statements, are recognized as
income or as expenses in the year in which they arise.
3.13 Taxes
(i) Current income tax

Current income tax is measured and provision for current tax is made at the amount
expected to be paid to the tax authorities in accordance with Income Tax Act, 2058.
(ii) Deferred tax
Deferred income taxes reflects the impact of current year timing differences
between taxable income and accounting income for the year and reversal of timing
differences of earlier years. Deferred tax is measured based on the tax rates and the
tax laws enacted or substantively enacted at the balance sheet date. Deferred tax
assets are recognized and reviewed at each balance sheet date, only to the extent
that there is reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized. In situations, where
depreciation or carry forward tax losses has been unabsorbed, all deferred tax assets
are recognized only if there is virtual certainty supported by convincing evidence
that they can be realized against future taxable profits. At each balance sheet date,
unrecognized deferred tax assets of earlier years are re-assessed and recognized to
the extent that it has become reasonably or virtually certain, as the case may be,
that future taxable income will be available against which such deferred tax assets
can be realized.
3.14 Borrowing costs

Borrowing costs consist of interest and other costs that are incurred in connection with the
borrowing of funds. Borrowing costs directly attributable to the acquisition, construction
or production of an asset that necessarily takes a substantial period of time to get ready for
its intended use or sale are capitalized as part of the cost of the respective assets. The
interest cost incurred for funding a qualifying asset during the construction period is
capitalized based on actual investment in the asset at the interest rate for specific
borrowings. All other borrowing costs are expensed in the period they occur.
3.15 Earnings per share

The earnings considered in ascertaining earnings per share (EPS) comprise the net profit
after tax attributable to equity shareholders. The number of shares used in computing basic
EPS is the weighted average number of shares outstanding during the year. The weighted
average number of equity shares outstanding during the year are adjusted for events of
bonus issue; bonus element in a rights issue to existing shareholders; share split; and
reverse share split (consolidation of shares).The diluted EPS is calculated on the same basis
as basic EPS, after adjusting for the effects of potential dilutive equity shares unless impact
is anti-dilutive.
3.16 Provisions and contingencies

Provisions are recognized when a present obligation is observed as a result of past event;
it is more likely than not that an outflow of resources will be required to settle the
obligation, in respect of which a reliable estimate can be made. Provisions are not
discounted to its present value and are determined based on best estimate required to settle
the obligation at the balance sheet date. These estimates are reviewed at each balance sheet
date and adjusted to reflect the current best estimates.
Fees and charges as required by licenses and corresponding acts have been provisioned for.
A contingent liability is a possible obligation that arises from past events whose existence
will be confirmed by the occurrence or non-occurrence of one or more uncertain future
events not wholly within the control or a present obligation that is not recognized because
it is not probable that an outflow of resources embodying economic benefits will be
required to settle the obligation or the amount of the obligation cannot be measured with
sufficient reliability. Information on contingent liabilities is disclosed in the notes to the
financial statements, unless the possibility of an outflow of resources embodying economic
benefits is remote.
3.17 Royalty fees and rural telecommunication development fund (RTDF) contribution
In accordance with the license terms, royalty fees are required to be paid as a percentage
of gross annual revenue subject to minimum amount to the Government of Nepal (GON)
as prescribed and annual contribution towards rural telecommunication development fund
(RTDF) as a percentage of gross annual revenue to Nepal Telecommunications Authority
(NTA). Both the royalty fee and contribution towards RTDF are charged to statement of
profit and loss, as incurred.
3.18 License fees and spectrum/frequency fees

License fees are payable at the time of awarding of the various types of services in
accordance with its respective terms and conditions and spectrum/frequency fees are
payable to Government of Nepal (GON) for use of radio frequency for the various types of
services, licensed by Nepal Telecommunications Authority (NTA).
3.19 Employee benefits
(i) Provident fund

Contributions to provident fund are made on a monthly basis at the applicable rates,
which are charged against revenue. Contributions to provident fund together with
the employees contributions are deposited with approved retirement fund.
(ii) Gratuity
Liability for gratuity benefits payable to employees is determined at the year-end
on accrual basis and provided for. Gratuity payable on termination/ retirement of
their services is provided as per provisions of Labor Act, 2048.
(iii) Leave encashment
Leave encashment including accumulated leave payable to employees is
determined at the year-end and accounted on accrual basis, to carry forward a
maximum of one-third of the accumulated un-availed leave.
(iv) Employees bonus

Employees bonus is provided as per the provisions of Bonus Act, 2030.
3.20 Changes in accounting policies and estimates

Changes in accounting policies and estimates are made to comply with the relevant
reporting standards and for better presentation. Changes, if any, are disclosed in specific
sections.
4. Notes to the accounts

ABC Company
Schedule to the financial statements as at
Schedule -5
Fixed assets
Gross Block
Balance Acquisitions Effect of foreign Balance

Particulars Reclassified as Revaluation Other
as at Additions Disposals through business currency exchange as at
held for sale increase adjustments
1 Shrawan 20YY combinations differences 32 Asadh 20XX
a) Land
Freehold -
Leasehold -
b) Buildings
Own use -
Given under operating lease -
c) Plant and Equipment
Owned -
Taken under finance lease -
d) Furniture and Fixtures
Owned -
e) Vehicles
Owned -
f) Office equipment
Owned -
g) Leasehold improvements
Owned -
h) Intangible assets
Owned -
i) Capital work-in-progress
Owned -
k) Intangible assets under development
Owned -
Total - - - - - - - - -
Previous year
ABC Company
Schedule -5
Fixed assets
Accumulated depreciation and impairment Net Block
Reversal of
Depreciation / Impairment
Balance impairment losses Balance Balance Balance
Particulars amortisation Eliminated on losses recognised Other
as at recognised in as at as at as at
expense for the disposal of assets in statement of adjustments
1 Shrawan 20YY Statement of 32 Asadh 20XX 32 Asadh 20XX 31 Asadh 20YY
year profit and loss
Profit and Loss
a) Land
Freehold - -
Leasehold - -
b) Buildings
Own use - -
Given under operating lease - -
c) Plant and Equipment
Owned - -
Taken under finance lease - -
d) Furniture and Fixtures
Owned - -
e) Vehicles
Owned - -
f) Office equipment
Owned - -
g) Leasehold improvements
Owned - -
h) Intangible assets
Owned - -
i) Capital work-in-progress
Owned - -
k) Intangible assets under development
Owned - -
Total - - - - - - - - -
Previous year
ABC Company
Schedule -6
Non-current investments (Amount in NRs.)
As at As at
Particulars
a) Investment in equity instrument
(i) of subsidiaries
(ii) of associates
(iii) of joint venture companies
(iv) of controlled special purpose entities
(v) of other entities (give details)
b) Investment in preference shares
(i) of subsidiaries
(ii) of associates
c) Investment in debentures or bonds
(i) of subsidiaries
(ii) of associates
d) Investment in government securities
e) Investment in partnership firms
f) Investment property (specify nature)
g) Other non-current investments (specify nature)
- -
Schedule -7
Long-term loans and advances (Amount in NRs.)
As at As at
Particulars
a) Capital advances
Secured, considered good
Unsecured, considered good
Doubtful
Less: Provision for doubtful advances
b) Security deposits
Doubtful
Less: Provision for doubtful deposits
c) Loans and advances to related parties
Doubtful
Less: Provision for doubtful loans and advances
d) Loans and advances to employees
Doubtful
e) Balances with government authorities
(i) VAT credit receivable
(ii) Others (please specify)
f) Other loans and advances
Doubtful
Less: Provision for other doubtful loans and advances
g) Prepaid expenses
h) Advance income tax
- -
Schedule -8
Other non-current assets (Amount in NRs.)
As at As at
Particulars
a) Long-term trade receivables
Doubtful
Less: Provision for doubtful trade receivables
b) Unamortised expenses
(i) Ancillary borrowing costs
(ii) Share issue expenses (where applicable)
(iii) Discount on shares (where applicable)
c) Accruals
(i) Interest accrued on deposits
(ii) Interest accrued on investments
(iii) Interest accrued on trade receivables
d) Others
(i) Insurance claims
(ii) Receivables on sale of fixed assets
(iii) Contractually reimbursable expenses
(iv) Others
- -
Schedule -9
Current investments (Amount in NRs.)
As at As at
Particulars
a) Investment in equity instrument
(i) of subsidiaries
(ii) of associates
b) Investment in preference shares
(i) of subsidiaries
(ii) of associates
c) Investment in debentures or bonds
(i) of subsidiaries
(ii) of associates
d) Investment in government securities
e) Investment in partnership firms
f) Investment property (specify nature)
g) Other non-current investments (specify nature)
- -
Schedule -10
Inventories (Amount in NRs.)
As at As at
Particulars
a) Stock-in-trade (acquired for trading)
Goods-in-transit
b) Stores and spares
Goods-in-transit
c) Loose tools
Goods-in-transit
d) Others (Specify nature)
Goods-in-transit
- -
Schedule -11
Trade receivables (Amount in NRs.)
As at As at
Particulars
a) Trade receivables
Doubtful
Less: Provision for doubtful trade receivables
- -
Schedule -12
Cash and cash equivalents (Amount in NRs.)
As at As at
Particulars
a) Cash on hand
b) Cheques, drafts on hand
c) Balances with banks
(i) In current accounts
-
-
-
-
-
-
-
-
-
(ii) In deposit accounts
-
-
-
-
-
-
-
-
d) Others (specify nature)
- -
Schedule -13
Short-term loans and advances (Amount in NRs.)
As at As at
Particulars
a) Loans and advances to related parties
Doubtful
b) Security deposits
Doubtful
Less: Provision for doubtful deposits
c) Loans and advances to employees
Doubtful
d) Prepaid expenses - Unsecured, considered good
Balances with government authorities - Unsecured,
e)
considered good
(i) VAT credit receivable
(ii) Others (please specify)
f) Inter-corporate deposits
Doubtful
g) Other loans and advances
Doubtful
- -
Schedule -14
Other current assets (Amount in NRs.)
As at As at
Particulars
a) Unbilled revenue
b) Unamortised expenses
(i) Ancillary borrowing costs
(ii) Share issue expenses (where applicable)
(iii) Discount on shares (where applicable)
c) Accruals
(i) Interest accrued on deposits
(ii) Interest accrued on investments
(iii) Interest accrued on trade receivables
d) Others
(i) Insurance claims
(ii) Receivables on sale of fixed assets
(iii) Contractually reimbursable expenses
(iv) Others (specify nature)
- -
Schedule -15
Share capital (Amount in NRs.)
As at As at
Particulars
a) Authorized share capital
Equity shares of ___ at ___ each
b) Issued share capital
Equity shares of ___ at NRs. ___ each
c) Subscribed but fully paid up
d) Subscribed but not fully paid up
- -
Details of shareholders (as per the share record book) holding more than __% shares in the Company
As at 31 Asadh 20XX As at 31 Asadh 20YY
Particulars
No. % holding No. % holding
Equity shares of NRs. ___ each fully paid up
.
.
.
.
Schedule -16
Reserves and surplus (Amount in NRs.)
As at As at
Particulars
a) Capital reserve
Opening balance
Add: Additions during the year
Less: Utilised / transferred during the year
Closing balance - -
b) General reserve
Opening balance
Add: Transferred from surplus in Statement of Profit and
Less: Utilised / transferred during the year for:
Less: Issuing bonus shares
Less: Others
Closing balance - -
c) Other reserve
Opening balance
Add: Additions during the year
Less: Utilised / transferred during the year
Closing balance - -
- -
Schedule -17
Long term borrowings (Amount in NRs.)
As at As at
Particulars
a) Term loans
(i) From banks and financial institutions
Secured
Unsecured
(ii) From other parties
Secured
Unsecured
b) Deferred payment liabilities
Secured
Unsecured
c) Loans and advances from related parties
Secured
Unsecured
d) Long-term maturities of finance lease obligations
Secured
Unsecured
e) Other loans and advances (specify nature)
Secured
Unsecured
- -
Schedule -18
Short term borrowings (Amount in NRs.)
As at As at
Particulars
a) Loans repayable on demand
(i) From banks
Secured
Unsecured
(ii) From other parties
Secured
Unsecured
b) Deferred payment liabilities
Secured
Unsecured
c) Loans and advances from related parties
Secured
Unsecured
d) Long-term maturities of finance lease obligations
Secured
Unsecured
e) Other loans and advances (specify nature)
Secured
Unsecured
- -
Schedule -19
Trade payables (Amount in NRs.)
As at As at
Particulars
a) Trade payables
b) Others (please specify)
- -
Schedule -20
Other current liabilities (Amount in NRs.)
As at As at
Particulars
a) Current maturities of long-term debt
b) Current maturities of finance lease obligations
c) Interest accrued but not due on borrowings
d) Interest accrued and due on borrowings
e) Income received in advance (Unearned revenue)
f) Unpaid dividends
Application money received for allotment of securities and
g)
due for refund and interest accrued thereon
h) Unpaid matured deposits and interest accrued thereon
i) Unpaid matured debentures and interest accrued thereon
j) Other payables
(i) Statutory remittances (Contributions to PF,
withholding taxes, excise duty, custom duty, VAT, etc.)
(ii) Telecommunication service charge payable
(iii) Royalty payable
(iv) Rural telecommunication development fund payable
(v) Radio spectrum fee payable
(vi) Microwave spectrum fee payable
(vii) License fee payable
(viii) Payables on purchase of fixed assets
(ix) Contractually reimbursable expenses
(x) Interest accrued on trade payables
(xi) Interest accrued on others
(xii) Trade/security deposits received
(xiii) Advances from customers
(xiv) Others (specify nature)
- -
ABC Company
Schedule -21
Revenue from operations (Amount in NRs.)
Particulars
a) Network service provider services
(i) Data connectivity
(ii) Corporate internet
(iii) Others (specify nature)
b) GSM cellular mobile services
(i) Local
(ii) Domestic trunk
(iii) International trunk
(iv) Roaming
(v) Pre-paid cards
(vi) Recharge cards
(vii) Data services
(viii) Activation charges
(ix) Others (specify nature)
c) CDMA services
(i) Local
(ii) Domestic trunk
(iv) Data services
(v) Pre-paid cards
(vi) Recharge cards
(vii) Activation charges
(viii) Others (specify nature)
d) VSAT user services
(i) Caller ID charges
(ii) Prepaid coupon charges
(iii) Form charges
(iv) Installation charges
(v) Rentals
(vi) Annual charges
e) Pre-paid calling card services
f) Basic telecommunications services
(i) Local
(ii) Domestic trunk
(iv) Leased circuits
(v) IN services
(vi) Internet
(vii) ADSL
(viii) SIP phone
(ix) Rentals
(x) Installation charges
(xi) Annual charges
(xii) Activation charges
(xiii) Others (specify nature)
Global mobile personal communications system (GMPCS)
g)
services
h) Rural telecommunication services
Particulars
i) International trunk telephone services
j) Limited mobility services
k) Rural VSAT user services
l) Basic telephone services
(i) Local telephone services
(ii) Domestic trunk telephone services
(iii) International long distance services
m) Rural internet service provider (ISP) services
n) Internet with email services
(i) Dailup
(ii) Wireless
(iii) Lease (corporate internet)
(iv) Cable
(v) IP telephone
(vi) Wifi-hot spot
(vii) Web-hosting
(viii) International voice
(ix) Rentals
(xi) Annual charges
o) International long distance (ILD) services
(i) Termination voice call
(ii) Originating voice call
(iii) Transit carriage charge
p) Value-added services
(i) SMS
(ii) MMS
(iii) PRBT/CRBT
q) Passive infrastructure income
- -
Schedule -22
Other income (Amount in NRs.)
Particulars
a) Equipment sales
b) Interest income
(i) Bank deposits
(ii) Loan given
c) Dividend income:
(i) from current investments
subsidiaries
joint ventures
associates
others
(ii) from long-term investments
subsidiaries
joint ventures
associates
others
d) Net gain on sale of:
current investments
long-term investments
Adjustments to the carrying amount of investments - reversal
e)
of reduction in the carrying amount of:
current investments
long-term investments
f) Net gain on foreign currency transactions and translation
Other non-operating income (net of expenses directly
g)
attributable to such income)
h) Provisions/liabilities no longer required - written back
Telecommunications network resource services and lease of
i)
network equipment
j) Others (specify nature)
- -
Schedule -23
Network operating cost (Amount in NRs.)
Particulars
a) Leased circuits, optical fibre and gateway charges
b) Rent (network equipments and BTS sites)
c) Power and fuel
d) Interconnection usage charges (gross)
e) E1/Port charges
f) Satellite segment/transponder charges
g) Passive infrastructure charges
h) Insurance charges (network equipments)
i) Outsourcing charges for network equipments
j) Outbound roaming cost
k) Roaming cost
l) Others (please specify)
- -
Schedule -24
Government charges (Amount in NRs.)
Particulars
a) License fee
b) License fee penalty, if any
c) Radio spectrum charges
d) Microwave spectrum charges
e) Royalty fees
f) Rural telecommunication development fund (RTDF)
g) Others (specify nature)
- -
Schedule -25
Other direct expenses (Amount in NRs.)
Particulars
a) Cost of simcard and scratch card
b) Cost of data card
c) Cost of wireless router
d) Cost of data vouchers
e) Cost of telephone wires
f) GPRS cost
g) SMS and PRBT/CRBT service charges
h) GSM membership fees
i) Management service fee
j) Consultancy charges (network equipment and BTS site)
k) Dismantling charges
l) Loading/unloading expenses (network equipment)
m) Others (please specify)
- -
Schedule -26
Employee benefits expense (Amount in NRs.)
Particulars
a) Salaries and wages
b) Contributions to provident and other funds
(i) Employee provident fund
(ii) CIT contribution
(iii) Gratuity
(iv) Leave encashment
(v) Pension
c) Expense on employee stock option (ESOP) scheme
d) Staff welfare expenses
e) Training, seminar, conferences
f) Staff recruitment expenses
g) Others (specify nature)
- -
Schedule -27
Administration expenses (Amount in NRs.)
Particulars
a) Rent (other than network equipment and BTS sites)
b) Lease rental
c) Rates and taxes
d) Insurance charges (other than network equipment)
e) Communication costs
f) Office Electricity
g) Travel and conveyance expenses
h) Legal and professional charges
i) Printing and stationery
j) Audit fees
k) Audit expenses
l) Outsourcing charges
m) Office Fuel and utlities
n) Freight and forwarding
o) Cafeteria and pantry
p) Newspaper and periodicals
q) Registration and renewal expenses
r) Security charges
s) Others (please specify)
- -
Schedule -28
Sales and marketing expenses (Amount in NRs.)
Particulars
a) Advertisement
b) Business promotion expenses
c) Sales commission
d) Sales discount
e) Commission to distributors
f) Hoarding board expenses
g) Provision for bad and doubtful debts
h) Bad debts written off
i) Outsourcing (billing services and customer care services)
j) Others (please specify)
- -
Schedule -29
Maintenance cost (Amount in NRs.)
Particulars
a) Annual maintenance charges
b) Network consumables
c) Repair and maintenance
(i) Buildings
(ii) Plant and machinery
(iii) Others
d) Outsourcing charges for maintenance activities
e) Others (please specify)
- -
Schedule -30
Other expenses (Amount in NRs.)
Particulars
a) Consumption of stores and spare parts
b) Consumption of loose tools
c) Consumption of packing materials
d) Donations and contributions
e) Bad trade and other receivables, loans and advances written
Net loss on foreign currency transactions and translation
f)
(other than considered as finance cost)
g) Amortisation of share issue expenses and discount on shares
h) Loss on fixed assets sold / scrapped / written off
i) Provision (please specify)
j) Prior period items (net)
k) Miscellaneous expenses
- -
Schedule -31
Finance costs (Amount in NRs.)
Particulars
a) Bank charges
b) Bank commission
c) Annual service charge, if any
d) Interest expense on:
(i) Borrowings
(ii) Trade payables
(iii) Others
- Interest on delayed / deferred payment of income tax
- Others (give details)
e) Other borrowing costs
Net (gain)/loss on foreign currency transactions and
f)
translation (considered as finance cost)
- -
ABC Company
C) Payments made in foreign currency
For year ended 31 Asadh 20XX

Particulars Party/vendor/supplier
Amount in CCY Amount in NRs.
a) Equipment importation
(i)
(ii)
b) Satellite segment
(i)
(ii)
c) Dividend
(i)
(ii)
d) Salaries
(i)
(ii)
e) Management fee
(i)
(ii)
f) Other fees
(i)
(ii)
g) International service provider
(i)
(ii)
h) Transmission
(i)
(ii)
i) Internet bandwidth
(i)
(ii)
j) Others (specify nature)
(i)
(ii)
- -
ABC Company
D) Investment in telecommunication sector

(Amount in NRs.)
Equity Debt
Particulars Reinvestment Grand total
Local Foreign Total Local Foreign Total
of profits
(a) Upto previous year
(i) PSTN services - - -
(ii) GSM services - - -
(iii) CDMA services - - -
(iv) Internet services - - -
(v) NSP Services - - -
(vi) Others (specify nature) - - -
- - - - - - - -
(b) Addition during the year
- - - - - - - -
(c) Upto current year
- - - - - - - -
- - - - - - - -
ABC Company
E) Contribution to Government (Amount in NRs.)
For year ended 31 Asadh 20XX

Particulars Provisions during the Collections during Payments during the
Opening Closing
year the year year
a) Income tax
b) Value added tax (on sale/purchase of goods/services)
c) Royalty
d) Custom duty (on import/procurement of equipment/goods)
e) License fee
f) Ownership tax
g) Telecommunication service charge
h) RTDF contribution
i) Frequency fee
j) Dividend tax
k) Other government taxes and levies (please specify)
- -
Previous year
ABC Company
F) Operations revenue breakdown (Amount in NRs.)
For year ended

For year ended
Particulars 31 Asadh 20XX
31 Asadh 20YY
Revenue Royalty RTDF Contribution Frequency Fee
a) Network service provider services
(i) Data connectivity
- Domestic dedicated leased circuit
- Managed data services (VPN/CUG)
(ii) Corporate internet
(iii) Others (specify nature)
b) GSM cellular mobile services
(i) Local
- Off net
- On net
(ii) Domestic trunk
- Off net
- On net
- Off net
- On net
(iv) Roaming
- National
- International
(v) Pre-paid cards
(vi) Recharge cards
(vii) Data services
(viii) Activation charges
(ix) Others (specify nature)
c) CDMA services
(i) Local
- Off net
- On net
(ii) Domestic trunk
- Off net
- On net
For year ended
For year ended
31 Asadh 20YY
- Off net
- On net
(iv) Data services
(v) Pre-paid cards
(vi) Recharge cards
d) VSAT user services
(i) Caller ID charges
(ii) Prepaid coupon charges
(iii) Form charges
(iv) Installation charges
(v) Rentals
(vi) Annual charges
e) Pre-paid calling card services
f) Basic telecommunications services
(i) Local
- Off net
- On net
(ii) Domestic trunk
- Off net
- On net
- Off net
- On net
(iv) Leased circuits
(v) IN services
(vi) Internet
(vii) ADSL
(viii) SIP phone
(ix) Rentals
For year ended
For year ended
31 Asadh 20YY
(xi) Annual charges
Global mobile personal communications system
g)
(GMPCS) services
h) Rural telecommunication services
i) International trunk telephone services
j) Limited mobility services
k) Rural VSAT user services
l) Basic telephone services
(i) Local telephone services
(ii) Domestic trunk telephone services
(iii) International long distance services
m) Rural internet service provider (ISP) services
n) Internet with email services
(i) Dailup
(ii) Wireless
(iii) Lease (corporate internet)
(iv) Cable
(v) IP telephone
(vi) Wifi-hot spot
(vii) Web-hosting
(viii) International voice
- carriage services
- calling cards
(ix) Rentals
(xi) Annual charges
o) International long distance (ILD) services
(i) Termination voice call
(ii) Originating voice call
(iii) Transit carriage charge
p) Value-added services
For year ended
For year ended
31 Asadh 20YY
(i) SMS
(ii) MMS
(iii) PRBT/CRBT
q) Passive infrastructure income
- - - - -
Previous year
ABC Company
G) Related party transactions

(Amount in NRs.)
Entities where control exist/ Associates/ Joint ventures/ Others (specify nature)
Nature of transactions
Entity 1 Entity 2 Entity 3 Entity 4
a) Purchase of fixed assets
b) Sale of fixed assets
c) Purchase of investments
d) Sale of investments
e) Rendering of services
f) Receiving of services
g) Common on cost allocation charged by the Company
h) Fund transferred/ expenses incurred on behalf of others
i) Fund received/ expenses incurred on behalf of the
j) Employee related expenses incurred on behalf of others
k) Employee related expenses incurred on behalf of the
l) Remuneration
m) Donation
n) Security deposit/ advances paid
o) Security deposit/ advances received
p) Loan received
q) Loan given
r) Subscription to share capital
s) Interest charged by others
t) Interest charged by the Company
u) Dividend paid
v) Dividend received
w) Others (please specify)
ABC Company
H) Non-financial reporting
(A) Statement of non-financial information for cellular mobile services
1. Basic information
1.1 Name of license:

1.2 License no. and date of issue/migration:
1.3 Licensed service area:
1.4 License period:
1.5 Date of commencement of commercial service:
1.6 List of board of directors:
Previous year Current year

(i) (i)
(ii) (ii)
(iii) (iii)
(iv) (iv)
(v) (v)
1.7 List of key personnel/designation:

(i) (i)
(ii) (ii)
(iii) (iii)
(iv) (iv)
(v) (v)
2. Subscriber details:
Opening Closing
GSM
- Pre-paid
- Post paid
CDMA
- Pre-paid
- Post paid
Total subscribers
3. Traffic details
3.1 Usage - minutes/numbers:
Off net Off net

On net Total
(originating) (terminating)
Voice (MoU)
Video (MoU)
SMS (Nos.)
MMS (Nos.)
3.2 Data Usage (in MB):
3.3 Total bandwidth (Mbps) sold through leased circuits:
3.4 Number of towers:
Owned Leased
Ground base tower (GBT)
Roof top tower (RTT)
Roof top pole (RTP)
3.5 Transmission capacity details:
Length in route (kilometer)

OFC
- Owned
- Leased
Microwave
- Owned
- Leased
Satellite
(B) Statement of non-financial information for basic telecommunications services

1.4 License period:

(i) (i)
(ii) (ii)
(iii) (iii)
(iv) (iv)
(v) (v)

(i) (i)
(ii) (ii)
(iii) (iii)
(iv) (iv)
(v) (v)
Direct exchange lines Number of subscribers

PSTN
- Urban
- Rural
WLL
- Urban
- Rural
VSAT
- Urban
- Rural
Total
3. Traffic details
3.1 Usage - minutes/numbers:
Off net Off net

On net Total
(originating) (terminating)
Voice (usage)
Others (please specify)
3.2 Data Usage (in MB):
3.4 Transmission capacity details:
Length in route (kilometer)

OFC
- Owned
- Leased
Microwave
- Owned
- Leased
Satellite
(C) Statement of non-financial information for internet (with email) services

1.4 License period:

(i) (i)
(ii) (ii)
(iii) (iii)
(iv) (iv)
(v) (v)

(i) (i)
(ii) (ii)
(iii) (iii)
(iv) (iv)
(v) (v)
Opening Closing
Internet broadband
Internet (other than broadband)
IP telephony
Others (please specify)
3. Network information
3.1 Capacity details:
(a) Capacity leased in (bandwidth in Mbps):

(b) Capacity leased out (bandwidth in Mbps):
(D) Statement of non-financial information for network service provider services

1.3 License period:

(i) (i)
(ii) (ii)
(iii) (iii)
(iv) (iv)
(v) (v)

(i) (i)
(ii) (ii)
(iii) (iii)
(iv) (iv)
(v) (v)
2. Traffic details
2.1 Details of transmission capacity available:
Details
(i) OFC
- Owned (length in route, kilometer)
- Leased (length in route, kilometer)
(ii) Microwave
- Owned
- Leased
(iii) Satellite
(iv) Internet bandwidth
- Total owned capacity (bandwidth in Mbps)
- Capacity leased in (bandwidth in Mbps)
- Capacity leased out (bandwidth in Mbps)
2.2 Voice usage minutes (carriage):

2.3 Managed data service (VPN/CUG) (total bandwidth):

(E) Statement of non-financial information for international long distance service
1.1 Name of License

1.2 License No. and date of issue/migration
1.3 License Period
1.4 Date of Commencement of commercial service

(i) (i)
(ii) (ii)
(iii) (iii)
(iv) (iv)
(v) (v)

(i) (i)
(ii) (ii)
(iii) (iii)
(iv) (iv)
(v) (v)
2. Traffic details
2.1 Details of transmission capacity (in Mbps) available:
(a) Total capacity:

(b) Captive consumption:
(c) Capacity contracted out:
2.2 Voice usage minutes (ILD):
(a) Incoming:
(b) Outgoing:

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A) Financial Statements

The accompanying notes form an integral part of these financial statements

3. Summary of significant accounting policies

3.1 Use of estimates

3.2 Tangible assets

Estimated useful lives of the assets are as follows:

Useful life Depreciation

3.3 Intangible assets

3.4 Impairment of assets

3.5 Capital work-in-progress

3.7 Cash and bank balances

3.9 Revenue recognition and receivables

(i) Service revenues

Revenues from national and international long distance operations comprise

Deferred revenue includes amount received in advance from customers which

(ii) Equipment sales

(iii) Investing and other activities

(iv) Dividend income

(v) Provision for doubtful debts

For receivables due from other operators/service providers on account of their

3.10 Subscriber/customer deposit

3.11 License fees, spectrum/frequency charges

3.12 Foreign currency

(i) Initial recognition

(iii) Exchange differences

(i) Current income tax

3.14 Borrowing costs

3.15 Earnings per share

3.16 Provisions and contingencies

3.18 License fees and spectrum/frequency fees

3.19 Employee benefits

(i) Provident fund

(iv) Employees bonus

3.20 Changes in accounting policies and estimates

4. Notes to the accounts

Balance Acquisitions Effect of foreign Balance

C) Payments made in foreign currency

For year ended 31 Asadh 20XX

D) Investment in telecommunication sector

E) Contribution to Government (Amount in NRs.)

For year ended 31 Asadh 20XX

F) Operations revenue breakdown (Amount in NRs.)

For year ended

G) Related party transactions

(A) Statement of non-financial information for cellular mobile services

1.1 Name of license:

1.6 List of board of directors:

Previous year Current year

1.7 List of key personnel/designation:

Previous year Current year

3.1 Usage - minutes/numbers:

Off net Off net

3.2 Data Usage (in MB):

3.3 Total bandwidth (Mbps) sold through leased circuits:

3.4 Number of towers:

3.5 Transmission capacity details:

Length in route (kilometer)

1.1 Name of license:

1.6 List of board of directors:

Previous year Current year

1.7 List of key personnel/designation:

Previous year Current year

Direct exchange lines Number of subscribers

3.1 Usage - minutes/numbers: