The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting /standards notified under Sec 211(3C) of the Companies act 1956 which continues to be applicable in respect of Section 133 of the Companies Act, 2013, in terms of General Circular 15/2013 dated Sept 13,2013 of the Ministry of Corporate Affairs and the relevant provisions of the Companies Act, 1956/2013 Act, as applicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

1.1 Use of Estimates:

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize.

2. Income Recognition:

Revenue is being recognized in accordance with the Guidance Note on Accrual Basis of Accounting & Accounting Standard on Revenue Recognition issued by the Institute of Chartered Accountants of India and also as per Non Banking Financial Companies, RBI Direction, 1998. Accordingly, wherever there are uncertainties in the realization of income, the same is not accounted for till such time the uncertainty is resolved. The income is also not recognized on Non Performing Assets of the Company, as identified under RBI Directions, 1998.

2.1 Income from Hypothecated Loans:

In respect of Hypothecated Loan agreements, the income is being accounted on accrued basis by applying the implicit rate in the transactions on the amount financed for the period of agreement. Income on Non performing Hypothecated loans (NPA) are not recognized during the year.

2.2 Income from Delayed Payment Charges, Service Charges, Processing charges, Over Due Interest, Penal Interest etc., are accounted on receipt basis.

2.3 Dividend Income if any is accounted for on receipt basis.

2.4 Interest Income from Mortgaged Land Loans / Inter Corporate Loans: Interest Income on loans given is recognized on accrual basis except when there is uncertainties about the recovery exists. Interest income on Non Performing Mortgaged Land Loan Accounts (NPA) is not recognized during the year.

3 Expenses:

The company provides for all expenses on accrual basis.

4 Fixed Assets: (Tangible & Intangible):

All Fixed assets have been valued at historical costs in accordance with the accounting standards issued by I.C.A.I.

5 Depreciation:

Depreciation on Fixed Assets have been provided on the basis of useful life as estimated by the Management on technical advice, in the absence of certain details of each item under different kinds of fixed assets is not readily available.

6 Investments:

(a) The Company changed its accounting policy in respect of Investment in property during financial year 2011 -12. Investment in Capital Asset (i.e Land at Gulbarga) revalued and held as stock in trade effective 31st March, 2012, on the basis of valuation report given by approved value. This change of accounting policy results into creation of revaluation reserve to the extent of Rs.381/58 lakhs.

(b) Long term unquoted / quoted investments in snares are stated at cost & provision for diminution in the value of Long Term Investments is made only if, such decline is other than temporary, in the opinion of the management.

7 Hypothecated Loans:

Hypothecated Loans are stated at net of unmetered / unsacred finance charges.

8 Provision for Taxation:

Provision for taxation has been made after considering disallowances, exemptions and deductions as per the laws laid down and interpreted by various authorities.

9 Contingent Liabilities:

Liabilities though contingent in nature are provided for, if there are reasonable prospects of such liabilities maturing. Other contingent liabilities not acknowledged as debt, are disclosed by way of a note.

10 Stock of Shares: .

The stock of shares held as Long term investments have been valued as per Non Banking Financial companies, RBI Directions, 1998 and Accounting Standard - 13 on Accounting for investments issued by ICAI and the same is as certified by the management.

11 Retirement Benefits:

Since the Company does not provide any kind of retirement benefits to any of its employees, no provision is made for retirement benefits by the Company.

12 Other Accounting Policies:

These are consistent with the generally accepted accounting practices.

13 Repossessed Hypothecated Stock:

The repossessed stock has not been valued & accounted in the books of accounts of the Company. However, the Company maintains separately a Seized Vehicles Register, recording the date of seizure, release and sale of Seized Vehicle in it.

14. Stock in Trade (Investment in Property):

Investment in Land at Gulbarga ii treated as Stock in trade effective from 31st March, 2012, at fair market value! certified by approved value, resulting into creation of revaluation reserve to the extent of Rs.381/58 lakhs.

15. Impairment of Assets:

The carrying values of assets/ cash generating units at each balance sheet date are reviewed for impairment. If |any indication of impairment exists, the recoverable amount of such assets its estimated and impairment is recognized, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognized for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss, except in case of revalued assets.

16. Provisions and Contingencies:

A provision is recognized when the Company has a present obligation as a result of past events and it is profitable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in Note 6. Contingent assets are not recognized in the financial statements.