I was visiting one of our partners in Odisha. The NGO told me that they are unable to get the Government projects since the Government is seeking a minimum fixed assets of Rs. 500000/- with the NGO.
The case goes like this:
1. The NGO has purchased 18.17 acres of land in 1986 for a sum of Rs. 33273/-
2. The market value of the land as on date is in excess of Rs. 50,00,000/-
Is it possible for them to revalue and reflect the value of land in the books or do they have to follow the principle of “cost or market price whichever is lower”
Thanks and regards,
B V Soma Sastry