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Audited Financial Result
Un Audited Financial Result
Share Holding Details
Accounting Policies
 
Code Of Conduct
Fair Practices Code
NOTES ON ACCOUNTS
  
1.Contingent Liabilities
 
(Rs. in Lacs)
Sl.No.
31.3.2008
31.3.2007
A)Guarantees given to Sales Tax and other authorities, on behalf of the Company. (against pledge of Fixed Deposits)
4.77
4.77
B)Other disputed demands not acknowledged as debts  
 i) Property Tax
40.92
36.09
 ii)Electricty Charges
50.73
50.73
  
2.
Going Concern

The company is making turnaround which is reflected from the reduction in the accumulated losses which at the close of the year amounts to Rs.3670.87 Lacs (Previous Year Rs.5659.00 Lacs). The Company is confident that with the continuning profitability in the years to come it would be possible to wipe of the losses resulting in a positive Net Worth. The Company has liquidateed the liability towards public deposits and with no fresh exposure to hire purchase/leasing business, funds generated were utilized to pay off other liabilities and accordingly the accounts, have been prepared on a going concern basis.
 
3.
a)

The Company, although in the current year has earned profits yet in view of accumulated losses in excess of its Paid up Capital and Reserves excluding revaluation reserves, could not comply with the Reserve Bank of India guidelines prescribed for Non Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998 with regard to maintenance of minimum Capital Adequacy Ratio as per Regulation 10;(ii) The credit / investment (including investment in real estates) exposures had become in excess of prescribed limits.

 
b)
Reserve Bank of India has since withdrawn the prohibitory order issued under Section 45-MB(2) of Reserve Bank of India Act,1934. The Company has been advised to bring the Net Owned Fund to the required minimum level at the earlist.
 
c)
The Company has no plans to accept fresh public deposits in future, Reserve Bank of India has been requested to change its existing category "A" i.e. Deposit Accepting Non Banking Finance Company to category "B" i.e. Non Accepting Deposits Non Banking Finance Company.
 
d)
In terms of Reserve Bank of India's Notification No. RBI/2006-07/200/DNBS/ PDCC No.85/03.02.089 dated December 6, 2006 for continuation of business of NBFI, the Company has to apply for a fresh certificate of registration under Section 45-1A of the Reserve Bank of India Act,1934. Subject to issuance of fresh certificate of registration, the Company continues to correspond to the classification as per the existing NBFCs norms.
 
4.
Keeping in view of the accumulated losses, no transfer has been made to the Statutory Reserve Fund, as required under section 45-1C of the Reserve Bank of India Act, 1934, as amended by the Reserve Bank of India (Amendment) Act, 1977.
  
5.
The Company in view of repayment of loan, has withdrawn the Corporate Guarantee given in favour of Punjab National Bank for the facility granted to India Lease Development Limited, a company under the same management.
  
6.
Long Term Investments are to be valued at cost in terms of Accounting Standard-13 "Accounting for Investments" issued by the Institute of Chartered Accountants of India and as recommended by Reserve Bank of India's guidelines, subject to provision for diminution in value, other than temporary, in nature. However considering the long term nature and other related matters, investments in quoted companies amounting to Rs. 817.01 Lacs (Previous Year Rs. 817.01 Lacs) have been valued at cost and the temporary short fall of Rs.234.84 Lacs (Previous Year Rs. 271.88 Lacs) has not been provided for.
       
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