Regarding Nidhi Companies

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....l, 2002 Subject:- Regarding Nidhi Companies G.S.R. 309(E).- In exercise of the powers conferred by sub-section (1) of section 637A of the Companies Act, 1956 (1 of 1956), and in supersession of Notification of the Government of India, Ministry of Law, Justice and Company Affairs (Department of Company Affairs) No. GSR 556(E) dated 26-7-2001, except as respects things done or omitted to be do....

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....ts (a) Mortgage Loan:   Nature of asset Provision required   Standard Asset No provision   Sub-standard Asset 10% of the aggregate outstanding amount   Doubtful Asset 25% of the aggregate outstanding amount   Loss Asset 100% of the aggregate outstanding amount Explanation - In this direction,- (1) "Standard Asset" ....

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....hree years or where as per the opinion of the Nidhi or its internal auditor or by the inspecting authority during the course of its inspection a shortfall in the recovery of the loan account is expected because the documents executed may become invalid if subjected to legal process or for any other reason; (5) "Non-Performing Asset" will be that borrowal account where interest income and/or ins....

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.... after the due date of repayment specified at the time of grant of such loans. If the loan is not recovered or the security is not sold within the given time, the company should make 100% provision against current year's profit and loss account to the extent of unrealised amount or aggregate outstanding amount of loan as applicable. No income shall be recognised on such loans outstanding after the....