1.Retirement Benefits .
The company accountants gratuity on payment basis. The company does not
have any policy of ^ leave encashment ,and there are no other retirment
benefits provided by the companyto employees.
2. Contingment Liabilities not provided for :
Disputed tax liabilities in respect of which appeals are pending before
3. In respect of lease transaction, the management is of the opinion
that the same are operating lease as there is no contractual compulsion
on the part of the leassor to transfer the leased assets to the lessees
at the end of the lease period and contract provides for premature
under certain circumstances. Accordingly,the company has provided
deperication as per the rates and in the manner sepciied in schedule
XIV to the Companies Act, 1956.
4 .a) The company accounts for interest on overdue installments on cash
basis instead of on accural basis as per Accounting Standard 9-Revenue
Recognition as quantification of these amounts is not done. The impact
of the same on the loss for the year could not be ascertained as amount
to be accounted on accrual basis has not been determined.
b) No Provision for liabilities for gratuity has been made as required
by Accounting Standard 15- Accounting for Retirement benefits is the
financial Statements of Employers issued by the Institue of Chartered
Accountants of India,as none of the employees has put in qualifying
period of service. The impact of the non-provisionon the loss for year
has not been detemined as liability as per acturial valuation has not
5. No provision for diminution in value of investment has been
considered necessary,as in the opinion of the management it is of
temporary nature and is due to generally depressed market conditions. .
6. The Company has taken cultivation right on land belonging to
directors and their relatives. As the companys principal activity is
that of Non-banking financial company, the balance sheet and profit and
loss account for agro activities have been shown separately.
7. Fixed deposit of Rs.81000/- (previos year Rs.81000/) are under lien
with central Bank of India.
8. In the opinion of the management, all the current assets, loans and
advances which are shown in the financial statements have realizable
value in the ordinary course of business at least equivalent to the
amount at which they are stated.
9. Figures in brackets, wherever given, are for previous year.
10. During the year the management has transferred leased assets &
debtors under deed of settlement with one of the party.
10. Previous years figures have been rearranged or regrouped wherever
11. The balance sheet abstract and the companys general business
profile pursuant to part VI of schedule VI to the companies Act, 1956
is given in annexure A