The Financial Statements are consistently prepared under the historical cost convention, on the accrual basis of accounting and comply with the accounting standard issued by the Institute of Chartered Accountants of India (to the extent applicable) and in accordance with the generally accepted accounting principles, the accounting standard specified in the Companies (Accounting Standards) Rules, 2006 notified by the Central Government and other provision of the Companies Act, 1956.

1.2 Use of Estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The estimates and assumptions used in accompanying financial statements are based upon management's evaluation of relevant facts and circumstances as of the date of the financial statements. Actual results may differ from the estimates and assumptions used in preparing the accompanying financial statements. Any differences of actual results to such estimates are recognized in the period in which the results are known/ materialized.

1.3 Revenue recognition:

a) Interest income is recognized on accrual basis before the assets becomes NPA. However, during the year under review no loan/advance has been classified as NPA.

b) Dividend income is recognized when the right to receive the payment is established.

1.4 Fixed assets and Depreciation:

Fixed Assets are stated at cost less accumulated depreciation thereon. The cost of fixed assets ' comprises cost of acquisition and any attributable cost of bringing the asset to its working condition for its intended use. The company provides pro-rata deprecation from the date on which assets is . acquired / put to use. In respect of assets sold, pro-rata deprecation is provided upto the date on which assets is sold.

On all assets except below depreciation has been provided on Written down value Method as prescribed in Schedule XIV to the Companies Act, 1956.

a) Assets costing Rs. 5000/- or less are fully depreciated in the year of purchase

b) Improvements to leased assets are depreciated overthe period of lease.

1.5 Investments:

The investments are made to enhance the company business interest. All investments held by the Company are classified as currents or non-current, based on management intention at the time of purchase. Long-term investments are carried on the cost.

1.6 Impairment of Assets:

Management periodically assesses using, external, and internal' sources, whether there is an indication that an asset may be impaired. Impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the higher of the asset's net sales price or present value as determined above. During the year under consideration, there was no indication, either internal or external as to the impairment of any of the assets. .

1.7 Taxation:

Income Tax expenses comprises current tax (i.e. amount of tax for the period determined in accordance with the income-tax law), deferred tax charge or credit (reflecting the tax effect of timing differences between accounting income and taxable income for the period).

Current Tax:

Provision for current tax is made on the basis of estimated taxable income for the accounting year in accordance with the Income Tax Act, 1961.

Deferred Tax:

Deferred Tax, as required in AS-22 issued by ICAI is recognized subject to consideration of prudence in respect of deferred tax assets, on timing differences being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

1.8 Provision for Contingencies:

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation ora present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent assets are not recognized in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an economic benefit will arise, the asset, and related income are recognized in the period in which the change occurs.

1.9 Earning per share:

The company reports earning per share in accordance with Accounting Standard AS-20 issued by The Institute of Chartered Accountants of India (ICAI). It has been computed by dividing net profit aftertax by the weighted average number of equity shares outstanding during the year.

1.10 Cash Flow Statement:

Cash flow are reported using the indirect method, thereby profit before tax is adjusted for the effects of transactions of a non- cash nature and any deferrals or accruals of past of future cash receipts or payments. The cash flows from regular revenue generating financing and investing activities of the company are segregated.