Mar 31, 2014
A. ACCOUNTING POLICIES AND METHOD OF ACCOUNTING :
(01) Accounts are prepared on accrual basis as a going concern under
historic cost convention, in accordance with the requirements of the
State Financial Corporations Act, 1951 and the rules framed thereunder
and generally accepted accounting principle.
(02) REVENUE RECOGNITION :
(a) The Corporation recognizes income by way of interest, penalty and
other charges after realization of cheques as intimated by banks.
Adequate provision is made in the year end in respect of income to be
recognized on mercantile basis on all standard assets. The provisions
are reversed on frst day of the new financial year. Interest income
includes penal interest received.
(b) In view of the prudential norms prescribed by RBI/SIDBI, no income
is recognized in respect of Non Performing Assets (NPA). Income on such
assets shall be recognized as and when received. Provision for NPA has
been made as per the norms prescribed by SIDBI.
(c) Amount received from the loanees are credited in the books in the
following order :
[1] Penalty & other charges
[2] Interest
[3] Principal
(d) Where the unit of the loanee is sold or collateral security is
sold, the amount realized is frst credited towards principal and if
there is any surplus, it is credited towards other dues. However, where
the amount realized in respect of the units which were written off in
previous year/years and subsequently sold, the amount is credited to
Bad Debts Recovery A/c. under the group of Other Income.
(e) In case of loanees under OTS, amount received from the loanee is
frst apportioned as per normal practice as under :
[1] Penalty & other charges
[2] Interest
[3] Principal
At the time of issuance of No Due Certifcate, the effect of OTS scheme
is given whereby amount credited to interest/penalty account during
recovery period of OTS which otherwise was principal recovery as per
OTS scheme is being given effect. The shortfall in principal account is
compensated by crediting interest income and write off of the same
amount.
(03) FIXED ASSETS :
Fixed assets including the assets given on lease are recorded at the
cost of acquisition including incidental expenses in connection
thereto. All fixed assets are stated at cost less depreciation and in
case of leased assets, after taking into consideration the lease
adjustments account.
All leased assets are shown at Rs. 1/- book value since lease terms of
all the assets have expired.
(04) DEPRECIATION :
Depreciation of all assets is provided under Written Down Value Method
in accordance with rates prescribed under Income Tax Act 1961.
Furniture & Fixtures : 10%
office Equipments : 15%
Motor cars : 15%
office Building : 10%
Residential building : 5%
Computers : 60%
In case of additions to fixed assets, depreciation is provided for full
year where additions are made on or before 30th September and
depreciation is provided@50% of the rates for assets acquired after
this date during the year.
(05) EMPLOYEE BENEFITS :
(a) Salaries and non monetary benefits are accrued in the year in which
the services are rendered by the employees.
(b) For gratuity and leave encashment liabilities, Corporation took
policies with Life Insurance Corporation of India, which takes care of
liabilities on both the counts. The entire premium paid to LIC is
charged to Statement of Profit & Loss.
(06) INVESTMENTS :
Investment is valued in accordance with SIDBI guidelines (investment
classification & valuation). All investments are classified in one
category viz. "Available for sale" for the purpose of valuation and
accordingly provision has been made for permanent diminution in the
value wherever applicable and temporary diminution in value if any, is
not considered for the purpose of provisioning.
(07) BORROWING COST :
Borrowing cost is recognized as expense and charged to Statement of
Profit & Loss.
(08) WRITE OFFS :
While writing off loans, the Corporation takes into consideration the
following where
A] Assets of the loanees are lost
B] Loanees are not in existence
C] To the extent of defcit on sale of loanee assets
D] The units are closed and no recovery is forthcoming
E] Waiver/sacrifce on account of One Time Settlement/any other
settlement.
(09) TAXATION :
Deferred Tax Asset is not recognized in view of Corporation not being
virtually certain of realizing adequate Profits in the foreseeable
future.
(10) IMPAIRMENT OF ASSETS :
A substantial portion of Corporation''s assets comprise of ''financial
assets'' to which Accounting Standard-28 "Impairment of assets" is not
applicable. In respect of assets to which Standard applies, in the
opinion of the management, there are no indications, internal or
external, which could have the effect of impairing the value of the
assets to any material extent as at 31st March, 2014 requiring
recognition in terms of the said standard.
(11) EVENTS OCCURING AFTER THE BALANCE SHEET DATE :
Material adjusting events (that provides evidence of condition that
existed at the balance sheet date) occurring after the balance sheet
date are recognized in the financial statements. Non adjusting events
(that are indicative of conditions that arose subsequent to the balance
sheet date) occurring after the balance sheet date that represents
material change and commitment affecting the financial position are
disclosed in the report of the Board of Directors.
(12) PROVISION :
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources
even though the amount cannot be determined with certainty and
represents only a best estimate in the light of available information.
Contingent liabilities are not recognized but are disclosed in the
notes. Contingent assets are neither recognized nor disclosed in the
financial statements.
Mar 31, 2013
(01) Accounts are prepared on accrual basis as a going concern under
historic cost convention, in accordance with the requirements of the
State Financial Corporations Act, 1951 and the rules framed there under
and generally accepted accounting principle.
(02) REVENUE RECOGNITION :
(a) The Corporation recognizes income by way of interest, penalty and
other charges after realization of cheques as intimated by banks.
Adequate provision is made _ in the year end in respect of income to be
recognized on mercantile basis on all standard assets. The provisions
are reversed on first day of the new financial year. Interest income
includes penal interest received.
(b) In view of the prudential norms prescribed by RBI/SIDBI, no income
is recognized in respect of Non Performing Assets (NPA). Income on such
assets shall be recognized as and when received. Provision for NPA has
been made as per the norms prescribed by SIDBI.
(c) Amount received from the loanees are credited in the books in the
following order:
[1] Penalty & other charges
[2] Interest
[3] Principal
(d) Where the unit of the loanee is sold or collateral security is
sold, the amount realized is first credited towards principal and if
there is any surplus, it is credited towards other dues. However, where
the amount realized in. respect of the units which were written off in
previous year/years and subsequently sold, the amount is credited to
Bad Debts Recovery A/c. under the group of Other Income.
(e) In case of loanees under OTS, amount received from the loanee is
first apportioned as per normal practice as under:
[1] Penalty & other charges
[2] Interest
[3] Principal
At the time of issuance of No Due Certificate, the effect of OTS scheme
is given whereby amount credited to interest/penalty account during
recovery period of OTS which otherwise was principal recovery as per
OTS scheme is being given effect. The shortfall in principal account is
compensated by crediting interest income and write off of the same
amount.
(03) FIXED ASSETS :
Fixed assets including the assets given on lease are recorded at the
cost of acquisition including incidental expenses in connection
thereto. All fixed assets are stated at cost less depreciation and in
case of leased assets, after taking into consideration the lease
adjustments account.
All leased assets are shown at Re.1/- book value since lease terms of
all the assets have expired.
In case of additions to fixed assets, depreciation is provided for full
year in case all additions are made on or before 30th September and
depreciation is provided @ 50% of the rates for assets acquired after
this date during the year. In case of sale of fixed assets, profit or
loss on fixed assets is recognized on the same lines.
(05) EMPLOYEE BENEFITS :
(a) Salaries and non monetary benefits are accrued in the year in which
the services are rendered by the employees.
(b) For gratuity and leave encashment liabilities, Corporation took
policies with Life Insurance Corporation of India, which takes care of
liabilities of both the accounts. The entire premium paid to LIC is
charged to Statement of Profit & Loss.
(06) INVESTMENTS :
Investment is valued in accordance with SIDBI guidelines (investment
classification & valuation). All investments are classified in one
category viz. "Available for sale" for the purpose of valuation and
accordingly provision has been made for diminution in the value
wherever applicable.
(07) BORROWING COST :
Borrowing cost is recognized as expense and charged to Statement of
Profit & Loss.
(08) WRITE OFFS :
While writing off loans, the Corporation takes into consideration the
following where
A] Assets of the loanees are lost
B] Loanees are not in existence
C] To the extent of deficit on sale of loanee assets
D] The units are closed and no recovery is forthcoming
E] Waiver/sacrifice on account of One Time Settlement/any other
settlement.
(09) TAXATION :
Deferred Tax Asset is not recognized in view of Corporation not being
virtually certain of realizing adequate profits in the foreseeable
future.
(10) IMPAIRMENT OF ASSETS :
A substantial portion of Corporation''s assets comprise of ''financial
assets'' to which Accounting Standard-28 "Impairment of assets" is
not applicable. In respect of assets to which Standard applies, in the
opinion of the management, there are no indications, internal or
external, which could have the effect of impairing the value of the
assets to any material extent as at 31st March, 2013 requiring
recognition in terms of the said standard.
(11) EVENTS OCCURING AFTER THE BALANCE SHEET DATE :
Material adjusting events (that provides evidence of condition that
existed at the balance sheet date) occurring after the balance sheet
date are recognized in the financial statements. Non adjusting events
(that are indicative of conditions that arose subsequent to the balance
sheet date) occurring after the balance sheet date that represents
material change and commitment affecting the financial position are
disclosed in the report of the Board of Directors.
(12) PROVISION :
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources
even though the amount cannot be determined with certainty and
represents only a best estimate in the light of available information.
Contingent liabilities are not recognized but are disclosed in the
notes. Contingent assets are neither recognized nor disclosed in the
financial statements.
Mar 31, 2012
(01) Accounts are prepared on accrual basis as a going concern under
historic cost convention, in accordance with the requirements of the
State Financial Corporations Act, 1951 and the rules framed thereunder
and generally accepted accounting principle.
(02) REVENUE RECOGNITION :
(a) The Corporation recognizes income by way of interest, penalty and
other charges after realization of cheques as intimated by banks.
Adequate provision is made in the year end in respect of income to be
recognized on mercantile basis on all standard assets. The provisions
are reversed on frst day of the new fnancial year. Interest income
includes penal interest received.
(b) In view of the prudential norms prescribed by RBI/SIDBI, no income
is recognized in respect of Non Performing Assets (NPA). Income on such
assets shall be recognized as and when received. Provision for NPA has
been made as per the above norms.
(c) Amount received from the loanees are credited in the books in the
following order :
[1] Penalty & other charges [2] Interest [3] Principal
(d) Where the unit of the loanee is sold or collateral security is
sold, the amount realized is frst credited towards principal and if
there is any surplus, it is credited towards other dues. However, where
the amount realized in respect of the units which were written off in
previous year/years and subsequently sold, the amount is credited to
Bad Debts Recovery A/c. under the group of Other Income.
(e) In case of loanees under OTS, amount received from the loanee is
frst apportioned as per normal practice as under :
[1] Penalty & other charges [2] Interest [3] Principal
At the time of issuance of No Due Certifcate, the effect of OTS scheme
is given whereby amount credited to interest/penalty account during
recovery period of OTS which otherwise was principal recovery as per
OTS scheme is being given effect. The shortfall in principal account is
compensated by crediting interest income and write off of the same
amount.
(03) FIXED ASSETS :
Fixed assets including the assets given on lease are recorded at the
cost of acquisition including incidental expenses in connection
thereto. All fxed assets are stated at cost less depreciation and in
case of leased assets, after taking into consideration the lease
adjustments account.
All leased assets are shown at Re.1/ book value since lease terms of
all the assets have expired.
(04) DEPRECIATION :
(a) Depreciation of all assets is provided on Written Down Value Method
as per rates prescribed in the Income Tax Act 1961.
Furniture & Fixtures : 10%
Offce Equipments : 15%
Motor cars : 15%
Land & Building : 10%
Computers : 60%
In case of additions to fxed assets, depreciation is provided for full
year in case all additions are made on or before 30th September and
depreciation is provided @ 50% of the rates for assets acquired after
this date. In case of sale of fxed assets, proft or loss on fxed assets
is recognized on the same lines.
(05) EMPLOYEE BENEFITS :
(a) Salaries and non monetary benefts are accrued in the year in which
the services are rendered by the employees.
(b) For gratuity and leave encashment liabilities, Corporation took
policies with Life Insurance Corporation of India, which takes care of
liabilities of both the accounts. The entire premium paid to LIC is
charged to Statement of Revenue.
Corporation has charged to Revenue an amount of Rs. 5,68,00,000/
pertaining to earlier years which was hitherto shown as Current Assets.
(06) INVESTMENTS :
Investment are valued in accordance with SIDBI guidelines (investment
classifcation & valuation). All investments are classifed in one
category viz. "Available for sale" for the purpose of valuation and
accordingly provision has been made for diminution in the value
wherever applicable.
(07) BORROWING COST :
Borrowing cost is recognized as expense and charged to Proft & Loss
account. Interest on non guaranteed priority sector bonds amounting Rs.
12,65,000/ is not provided as concerned bondholders are still persuaded
to agree the restructuring accepted by other bondholders.
(08) WRITE OFFS :
While writing off loans, the Corporation takes into consideration the
following where
A] Assets of the loanees are lost
B] Loanees are not in existence
C] To the extent of defcit on sale of loanee assets
D] The units are closed and no recovery is forthcoming
E] Waiver/sacrifce on account of One Time Settlement/any other
settlement.
(09) TAXATION :
Deferred Tax Asset is not recognized in view of Corporation not being
virtually certain of realizing adequate profts in the foreseeable
future.
(10) IMPAIRMENT OF ASSETS :
A substantial portion of Corporation's assets comprise of Rs.fnancial
assets' to which Accounting Standard 28 "Impairment of assets" is not
applicable. In respect of assets to which Standard applies, in the
opinion of the management, there are no indications, internal or
external, which could have the effect of impairing the value of the
assets to any material extent as at 31st March, 2012 requiring
recognition in terms of the said standard.
(11) EVENTS OCCURING AFTER THE BALANCE SHEET DATE :
Material adjusting events (that provides evidence of condition that
existed at the balance sheet date) occurring after the balance sheet
date are recognized in the fnancial statements. Non adjusting events
(that are indicative of conditions that arose subsequent to the balance
sheet date) occurring after the balance sheet date that represents
material change and commitment affecting the fnancial position are
disclosed in the report of the Board of Directors.
(12) PROVISION :
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outfow of resources
even though the amount cannot be determined with certainty and
represents only a best estimate in the light of available information.
Contingent liabilities are not recognized but are disclosed in the
notes. Contingent assets are neither recognized nor disclosed in the
fnancial statements.
Mar 31, 2010
[01] Accounts are prepared on accrual basis as a going concern under
historic cost convention, in accordance with the requirements of the
State Financial Corporations Act, 1951 and the rules framed there
under, and generally accepted accounting principle.
[02] REVENUE RECOGNITION :
[a] The Corporation recognises income by way of interest, penalty and
other charges after realisation of cheques as intimated by banks.
Adequate provision is made in the year end in respect of income to be
recognised on mercantile basis on all standard assets. The provisions
are reversed on first day of the new financial year. Interest income
includes penal interest received.
[b] In view of the prudential norms prescribed by RBI/SIDBI, no income
is recognised in respect of Non Performing Assets (NPA). Income on such
assets shall be recognised as and when received. Provision for NPA has
been made as per the above norms.
[c] Amount received from the loanees are credited in the books in the
following order:-
[1] Penalty & other charges [2] Interest [3] Principal
[d] Where the unit of the loanee is sold or collateral security is
sold, the amount realised is first credited towards principal and if
there is any surplus, it is credited towards other dues. However, where
the amount realised in respect of the units which were written off in
previous year/years and subsequently sold, the amount is credited to
Bad Debts Recovery A/c. under the group of Other Income.
[e] In case of loanees under OTS, amount received from the loanees is
first apportioned as per normal practice as under:
[I] Penalty & other charges [ii] Interest [iii] Principal
At the time of issuance of No Due Certificate , the effect of OTS
scheme is given, whereby amount credited to interest/penalty account
during recovery period of OTS which otherwise was principal recovery as
per OTS scheme is being given effect. The shortfall in principal
account is compensated by crediting interest income and write off of
the same amount.
[03] FIXED ASSETS:
Fixed assets including the assets given on lease are recorded at the
cost of acquisition including incidental expenses in connection
thereto. All fixed assets are stated at cost less depreciation and in
case of leased assets after taking into consideration the lease
adjustments account.
All leased assets are shown at Re. 1/- book value since lease terms of
all the assets have expired
[04] DEPRECIATION:
[a] Depreciation of all assets is provided in accordance with the
Written Down Value Method as per following rates
Furniture & Fixtures 15%
Office Equipments 25%
Motor Cars 20%
Land & Building 10%
Computers 60%
In case of additions to fixed assets, depreciation is provided for full
year in case all additions are made on or before 30th September and
depreciation is provided @ 50% of the rates for assets acquired after
this date. In case of sale of fixed assets, profit or loss on fixed
assets is recognized.
[05] EMPLOYEE BENEFITS :
(A) Salaries and non monetary benefits are accrued in the year in which
the services are rendered by the employees.
(B) The Corporation has taken a policy under Group Gratuity Scheme with
Life Insurance Corporation of India for payment of gratuity to its
employees and the premium thereof is charged to Profit and Loss
account. Besides, the shortfall between gratuity amount received from
LIC and actual amount paid to the employees is also charged to Profit
and Loss Account. However Corporation has not made provision for
gratuity as per Project Unit Credit Method, loss to that extent are
understated.
As per the practice consistently followed leave encashment is accounted
for on payment basis and no provision for the same is made which is not
in accordance with AS15" Employee benefits" issued by ICAI, Loss to
that extent are understated.
[06] INVESTMENTS:
Investments are valued in accordance with SIDBI guidelines (investment
classification & valuation). All investments are classified in one
category viz. "Available for sale" for the purpose of valuation and
accordingly provision has been made.
[07] BORROWING COST :
Borrowing cost are recognised as expenses and charged to Profit & Loss
account. Interest on non-guaranteed priority sector bonds amounting
Rs. 13.46 lacs is not provided as concerned bondholders are still
persuaded to agree to restructuring accepted by other bondholders.
[08] WRITE OFFS :
While writing off loans, the Corporation takes into consideration the
following where
A] Assets of the loanees are lost
B] Loanees are not in existence
C] To the extent of deficit on sales of loanee assets
D] The units are closed and no recovery is forthcoming
E] Waiver/sacrifice on account of One Time Settlement
[09] RELATED PARTY DISCLOSURE :
There are no transactions under the said clause except remuneration
paid to key management personnel as under:
Shri Arvind Agrawal, Managing Director
Remuneration paid Rs. 24304.00
Travelling and other allowance Rs. 118127.00
Medical Expenses Rs. 11319.00
During the year under reference, arrears of pay was paid to following
ex-chairpersons and ex Managing Director as under:
1. Smt. Netra Shenoy, IAS, Ex-Chairperson Rs. 2,83,710=00
2. Ms S K Sekhon, IAS, Ex-Chairperson Rs. 97,120=00
3. Shri PVTrivedi, IAS, ex-Managing Director Rs. 2,65,604=00
[10] TAXATION :
Deferred Tax Assets is not recognized in view of the Corporation not
being virtually certain of realizing adequate profits in the
foreseeable near future.
[11] Impairment of Assets :
A substantial portion of the Corporations assets comprise of
financial assets to which Accounting standard 28 "Impairment of
assets" is not applicable. In respect of assets to which Standard
applies, in the opinion of the management, there are no indications,
internal or external, which could have the effect of impairing the
value of the assets to any material extent as at 31st March,2010
requiring recognition in terms of the said standard.
[12] EVENTS OCCURING AFTER THE BALANCE SHEET DATE :
Material adjusting events (that provides evidence of condition that
existed at the balance sheet date) occurring after the balance sheet
date are recognized in the financial statements. Non adjusting events
(that are indicative of conditions that arose subsequent to the balance
sheet date) occurring after the balance sheet date that represents
material change and commitment affecting the financial position are
disclosed in the reports of the Board of Directors.
[13] PROVISION :
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources
even though the amount cannot be determined with certainty and
represents only a best estimate in the light of available information.
Contingent liabilities are not recognized but are disclosed in the
notes. Contingent assets are neither recognized nor disclosed in the
financial statements
Mar 31, 2009
[01] Accounts are prepared on accrual basis as a going concern under
historic cost convention, in accordance with the requirements of the
State Financial Corporations Act, 1951 and the rules framed there
under, and generally accepted accounting principle.
[02] REVENUE RECOGNITION :
[a] The Corporation recognises income by way of interest, penalty and
other charges after realisation of cheques as intimated by banks.
Adequate provision is made in the year end in respect of income to be
recognised on mercantile basis on all standard assets. The provisions
are reversed on first day of the new financial year. Interest income
includes penal interest received.
[b] In view of the prudential norms prescribed by RBI/SIDBI, no income
is recognised in respect of Non Performing Assets (NPA). Income on such
assets shall be recognised as and when received. Provision for NPA has
been made as per the above norms.
[c] Amount received from the loanees are credited in the books in the
following order:- [1] Penalty & other charges
[2] Interest [3] Principal
[d] Where the unit of the loanee is sold or collateral security is
sold, the amount realised is first credited towards principal and if
there is any surplus, it is credited towards other dues. However, where
the amount realised in respect of the units which were written off in
previous year/years and subsequently sold, the amount is credited to
Bad Debts Recovery A/c. under the group of Other Income.
[e] In case of loanees under OTS, amount received from the loanees is
first apportioned as per normal practice as under:
[I] Penalty & other charges [ii] Interest [iii] Principal
At the time of issuance of No Due Certificate , the effect of OTS
scheme is given whereby amount credited to interest/penalty account
during recovery period of OTS which otherwise was principal recovery as
per OTS scheme is being given effect. The shortfall in principal
account is compensated by crediting interest income and write off of
the same amount.
[03] FIXED ASSETS :
Fixed assets including the assets given on lease are recorded at the
cost of acquisition including incidental expenses in connection
thereto. All fixed assets are stated at cost less depreciation and in
case of leased assets after taking into consideration the lease
adjustments account.
All leased assets are shown at Re. 1/- book value since lease terms of
all the assets have expired
[04] DEPRECIATION:
[a] Depreciation of all assets is provided for in accordance with the
Written Down Value Method as per following rates
Furniture & Fixtures 15%
Office Equipments 25%
Motor Cars 20%
Land & Building 10%
Computers 60%
In case of additions to fixed assets, depreciation is provided for full
year in case of all additions on or before 30th September and
depreciation is provided @ 50% of the rates for assets acquired after
this date. In case of sale of fixed assets, profit or loss on fixed
assets is recognized.
[05] EMPLOYEE BENEFITS :
(A) Salaries and non monetary benefits are accrued in the year in which
the services are rendered by the employees.
(B) The Corporation has taken a policy under Group Gratuity Scheme with
Life Insurance Corporation of India for payment of gratuity to its
employees and the premium thereof is charged to profit and loss
account. Besides, the shortfall between gratuity amount received from
LIC and actual amount paid to the employees is also charged to profit
and loss account. However, Corporation has not made provision for
gratuity as per Project Unit Credit Method, loss to that extent are
understated
As per the practice consistently followed leave encashment is accounted
for on payment basis and no provision for the same is made which is not
in accordance with AS15 "Employee benefits" issued by ICAI, Loss to
that extent are understated.
(C) During the current financial year Corporation has introduced a
scheme of voluntary retirement for its permanent employees effictive
from 12/05/2008 to 11/08/2008. The Voluntary retirement benefit of Rs.
10.29 crores was given to the employees of the corporation. The entire
expenditure is fully written off during this year.
[06] INVESTMENTS :
Investments are valued in accordance with SIDBI guidelines
(investment classification & valuation). All investments are classified
in one category viz. Available for sale for the purpose of valuation
and accordingly provision has been made.
[07] BORROWING COST :
Borrowing cost are recognised as expenses and charged to Profit & Loss
account. Interest on non-guaranteed priority sector bonds amounting Rs.
229.53 lacs is not provided as restructuring of said bonds is in
process.
[08] WRITE OFFS :
While writing off loans, the Corporation takes into consideration the
following where
A] Assets of the loanees are lost
B] Loanees are not in existence
C] To the extent of deficit on sales of loanee assets
D] The units are closed and no recovery is forthcoming
E] Waiver/sacrifice on account of One Time Settlement
[09] RELATED PARTY DISCLOSURE :
There are no transactions under the said clause except remuneration
paid to key management personnel as under:
Shri Arvind Agrawal, Managing Director
Remuneration Paid Rs. 635456/-
Travelling and other allowance Rs. 224682/- Medical Expense Rs.
145385/-
[10] TAXATION:
Deferred Tax Assets is not recognized in view of the Corporation not
being virtually certain of realizing adequate profits in the
foreseeable near future.
Provision for fringe benefit tax is made in accordance with the
provisions of the Income Tax act 1961.
(11) Impairment of Assets:
A substantial portion of the banks assets comprise of financial
assets to which Accounting standard 28 "Impairment of assets" is not
applicable. In respect of assets to which Standard applies, in the
opinion of the management, there are no indications, internal or
external, which could have the effect of impairing the value of the
assets to any material extent as at 31s March,2009 requiring
recognition in terms of the said standard.
(12) EVENTS OCCURING AFTER THE BALANCE SHEET DATE :
Material adjusting events (that provides evidence of condition that
existed at the balance sheet date) occurring after the balance sheet
date are recognized in the financial statements. Non adjusting events
(that are indicative of conditions that arose subsequent to the balance
sheet date) occurring after the balance sheet date that represents
material change and commitment affecting the financial position are
disclosed in the reports of the Board of Directors.
(13) PROVISION :
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources
even though the amount cannot be determined with certainty and
represents only a best estimate in the light of available information.
Contingent liabilities are not recognized but are disclosed in the
notes. Contingent assets are neither recognized nor disclosed in the
financial statements.
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