1. Basis of accounting .
I) The company generally adopts the accural concepts in the prepartion
of the account while the interest on debentures, dividend income on
investment are accounted on receipt basis.
II) Income onNon-Performing Assets (NPAs) as defined under the
prudential norms of the Reserve bank of India for Non-Banking Financial
company (NBFCs) issued on 31/01/1998 is accounted on receipts basis.
2. Fixed Assets :
Fixed Assets are stated at cost acquisition inclusive of
freight,duities.taxes and incidental expenses. ¦ •
The cost of land development which was treated as land development
expenditure under the head capital work-in progress last year is
being Capitalised under heads.
Investment are valued at cost
Closing stock of shares.and securities is valued ai cost or market
price whichever is lower on category-wise basis. The classification of
shares and securites into Investment and stock-in-trade is based on the
intention of management and other relvent circumstances.
Stock of Mango Plantation,Cashew Plantation , standing bio-stock and
vegetables and crops are valued at estimited net realizable value at
cost cannot separately determined. In respect of Mango Plantation and
cashew plantation estimateed realizable value is ascertained based on
5. Deperication ;
The company has been charging deperication on straight line method as
per rates and in the manner specified in Schedule XIV to the
Compannaies Act, 1956. In the case of livestock. value therof is
depericated over their remaining estimared life once the earning
capacity of the animals starts declining.Deperication has not been
provided on Agro related activities.
6. Hire Purchase stock :
Hire purchase stock do not include unmatured;Finance charges.
7. Revenue recognition.
i) Lease rental income received/receivable for the year is accounted as
per agreement with lessee
ii) Finance charges on hire purchase business are computed on reducing
iii) Income from bill discounted is net of rediscounting charges.
iv) Hire purchase and lease management fess are recognised as income on
execution of respective agreement on finalizationof the. transaction to
v) Interest on overdue lease rentals/hire purchase installment is
including in interest income at the time of receipt.
vi) Interest on debentures.government securities and dividend income is
accounted on receipt basis.
i , vii) Service income is recognized on completion of services.
viii) Sale of software is recognized on the transfer of ownership and
title of the software.
8. Provision on Interest on Secured Loan
No provision for interest has been made on secured loan taken from
Central Bank of India by way of cash credit & working capital term Joan
as it has been not quantified by the management and the impact of the
same on the profit and loss has not been determined.
9. Provision for non-performing Assets
The company has not made any provision for Non-performing Assets as per
the RBI guidelines.
10 Contingent Liabilities ;
No provision for contingent liabilities has been made during the year