The financial statements are prepared under the historical cost
convention, on the basis of a going concern and as per the applicable
accounting standards. The Company follows mercantile system of
accounting and recognises income and expenditure on accrual basis.
The company has followed prudential norms prescribed by the R.B.I in
respect of Income Recognition, capital Adequacy and Provision for Bad
and Doubtful Debts.
2 Inter Branch Transfers
Inter Branch Transfers of currency are at cost.
3 Valuation of Inventories Currencies in stock are valued at cost.
4 Fixed Assets and Depreciation
Fixed assets are stated at cost less Depreciation on Written Down Value
Method at the rates and in the manner specified in the Schedule XIV to
the Companies Act, 1956. No depreciation is provided on assets sold
during the year.
Investments are held on long term basis and valued at cost. Diminution
in the value of investments is not provided for, as the management is
of the opinion that the diminution is of temporary nature.
6 Revenue Recognition
Interest on loans and advances are recognized on accrual basis. In
respect of loans under litigation, it is the company''s policy to
recognize interest on realization basis.
7 Retirement Benefits
Contribution to Provident Fund is funded as a percentage of salary.
Adequate provisions have been made in the accounts for the liability
for Gratuity of employees.
8 Impairment of Assets
The Company has not provided for impairment of any assets.