NOTE: 1

1.1 Basis of Preparation:

The Financial statements have been brpared in accordance with the accounting principles generally accepted in India (Indian GAAP). The company has brpared these financial statements to comply in all material respects with the Accounting standards notified under section 133 of the Companies Act 2013, read together with Rule 7 of the Companies (Accounts) Rules, 2014. The financial statements have been brpared on accrual basis under historical cost convention.

1.2 The Accounting policies adopted in the brparation of financial statements are consistent with those of brvious year.

Presentation & Disclosure of Financial Statements

The company has carried out classification of Assets and Liabilities into Current and Non-current based on their residual maturity profile as per the requirement of Schedule III to the Companies Act, 2013.

b. FIXED ASSETS AND DEbrCIATION:

a) Fixed assets are stated at the cost of acquisition and installation.

b) Debrciation on Fixed Assets is provided on Straight Line method in the manner brscribed in Schedule II of the Companies Act, 2013 (as amended).

c) The Company has revised debrciation rate on fixed assets as per useful lives specified in Schedule II of the Companies Act 2013. The carrying value of fixed assets (net of deferred tax) whose useful life has been completed on 31st March 2014, has been recognized in the opening balance of retained earnings. The consequential impact on the debrciation charged and on the results as above is not material

c. IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of assets exceeds the recoverable value. An impairment loss is charged to the Profit and Loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

d. HYPOTHECATION LOAN STOCK:

Recoverable under Hypothecation Loan stock are exclusive of Unmatured Interest after deducting amount received / receivable during the year.

e. REPOSSESSED ASSETS

Repossessed assets rebrsent assets taken back from customers but pending for realization and valued at termination value or estimated realizable value, whichever is lower.

f. INVESTMENTS:

Non Current Investments are stated at cost of acquisition less provision made for the decline, other than temporary, in the value of investments.

Current Investments are stated at lower of cost of acquisition or fair value, determined by category of investment.

Premium paid on purchase of Govt. securities to be held till maturity for the purpose of SLR requirement is amortized in the year of purchase.

g. PROVISION FOR NON PERFORMING ASSETS:

(a) Provision / write off for Non Performing Assets is made as per the prudential norms issued by the Reserve Bank of India.

(b) Interest income to the extent remaining unrealized on assets classified as NPA is reversed in Profit & Loss account by debit / reducing 'Interest on loan account' with corresponding credit to the customer account. Such reversal is credited to 'Interest on loan account' to the extent of realization in the subsequent year.

h. EMPLOYEE BENEFITS:

Defined contribution plan: Provident fund contribution is charged to Profit and Loss Account as incurred.

Defined Benefit plan: The Company has an employee gratuity fund managed by LIC of India. The brsent value of the obligation under this plan is determined based on the actuarial valuation using the projected unit credit method. Actuarial gain or loss is charged to Profit and Loss account.

i. TAXES ON INCOME.

(a) Current tax is determined on the basis of taxable income computed in accordance with the provisions of the Income Tax Act, 1961.

(b) Deferred tax is recognized on timing differences, being the difference between taxable income and accounting income that originates in one period and is capable of reversal in one or more subsequent periods. Where there is unabsorbed debrciation or carried forward losses, Deferred Tax Assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Such assets are reviewed at each Balance Sheet date to reassess realization.

(c) Deferred Tax Assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date.

j. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions involving substantial degree of estimation in measurement are recognized when there is a brsent obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

k. USE OF ESTIMATES:

The brsentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

l. CASH & CASH EQUIVALENTS:

Cash & Cash Equivalents for the purposes of cash flow comprises of cash at bank & in hand and short term fixed deposits with an original maturity of three months or less.

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