SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS

(Forming part of the final accounts for the year 2014-2015)

A SIGNIFICANT ACCOUNTING POLICIES

1) General

A. Accounts have been brpared on historical cost basis following the mercantile system of accounting.

B. All expenses and income, to the extent considered payable and receivable respectively are accounted for on accrual basis, subject to the following heads, which have been accounted for on cash basis:

a. Accrued hire charges in cases where number of due installments exceed 12 months.

b. Interest on Loans and Advances considered as sticky by the management.

c. Penal interest chargeable on delayed installments of hire charges and payable in respect of delayed payment of taxes.

2) Use of Estimates

Preparation of financial statements requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities and reported amounts of income and expenditure during the period. Actual results might differ from such estimates. Difference between the actual results and estimates are recognized in the period in which the results are known.

3) Fixed Assets

Fixed assets are stated at cost. Taxes, duties, freight and other expenses incidental to acquisition or installments thereof are included in the cost.

Amount spent during the year on acquisition of an application software rendering benefit of enduring nature has been capitalized and treated as an intangible fixed asset.

4) Debrciation

Debrciation has been provided for following Straight Line Method, at the rates and in the manner specified in Section 123 read with Schedule II of the Companies Act, 2013.

Due to revision of useful life as brscribed in Schedule Ii of the Companies Act, 2013, the rates of debrciation on company's assets have got changed. Cumulative effect of so retrospectively enhanced debrciation allowance amounting to Rs. 5,18,749/, has been separately disclosed in the relevant schedule and charged to revenue this year, in compliance to the guidance contained in AS 6.

5) Inventories

Inventories of shares have been valued at lesser of cost ascertained following first in first out method and the respective market values of individual shares.

Stock on hire has been valued at cost.

6) Investments

All Investments have been stated at cost.

Provision for diminution in shares of private limited companies, wherever so, has been ignored in view of the long term nature of such investments and existence of adequate underlying assets.

Market value of quoted mutual funds has been separately disclosed in the relevant note.

Long term deposits for securing finance or for deriving other such benefits have been classified as Investments.

Dividend and capital gain from sale of shares held as investments and Interest income from security deposits of investment nature have been disclosed separately in the relevant note.

7) Provision for NPA under Hire Purchase and Loans & Advances

Company is a R.B.I. approved non deposit taking N.B.F.C. of asset size less than Rs. 100 crore. It follows the policy of making provision for the Non performing assets in respect of its Hire -Purchase and Loans & Advances assets in accordance with the 'provisioning norms'; and accounting for the hire and interest incomes following the 'income recognition and prudential norms' as laid down by the R. B. I. for such companies having asset size exceeding Rs. 100 crore.

8) Staff Benefits

There is no quantifiable contractual obligation to pay the retirement benefits to company's directors and other staff hence they would be accounted for in the year they are actually paid.

IB) NOTES ON ACCOUNTS

1. There is a contingent liability upon the company due to Income tax department's appeal before Rajasthan High Court seeking disallowance of company's claim for deduction u/s 80 HHC totaling Rs. 117.83 lac in respect of a. yr. 9596 and 9697.

2. In the opinion of the Board of Directors, Current Assets, Loans & Advances have a value on realization in ordinary course of business at least to the amount at which they are stated.

3. Balance standing to the debit or credit of Sundry debtors, Sundry creditors, Unsecured loans and Loans & advances are subject to their confirmation.

5. Previous year figures have been regrouped and rearranged wherever considered necessary.

6. There is no creditor relating to trade or expenses which has intimated its identity as a S.S.I. Unit and payment to whom is outstanding for a period exceeding 6 months.

Transactions Executed in normal course of business at arms length price

Subject to our Audit report of even date

For Sharma Naresh & Associates

Chartered Accountants

NARESH SHARMA

(Proprietor)

M. No. 071485

For and on Behalf of the Board

PANNA LAL BAID

(Chairman and MD) (DIN: 00009897)

MANOJ KUMAR JAIN

(Chief Financial Officer)

NAMRATA SAJNANI

(Company Secretary)

PLACE: Jaipur

DATE : 16-05-2015