NOTE - 1 : SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS (A) SIGNIFICANT ACCOUNTING POLICIES

(1) Nature of Operation

The company is engaged in providing loan against security of vehicles, investment in shares & mutual fund, and finance business concerns, individuals, companies, etc, as per the directions brscribed by the Reserve Bank Of India (RBI) for Non-Banking Financial Companies (NBFC).

(2) Basis of Preparation

The financial statements have been brpared to comply in all material respects with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India,the relevant provision of the Companies Act, 2013 and the guidelines issued by the RBI as applicable to Non-Deposit accepting

NBFC.

The financial statements have been brpared under the historical cost convention on an accrual basis unless otherwise stated. The accounting policies have been consistently applied by the Company and are consistent with those used in the brvious year.

(3) Fixed Assets and Debrciation

Fixed assets are stated at Cost less Debrciation.

Debrciation on Fixed Assets is provided to the extent of debrciable amount on the Written down Value (WDV) Method. Debrciation is provided based on useful life of the assets as brscribed in schedule II to the Companies Act, 2013.

(4) Revenue Recognition

I. Income from operation rebrsents earnings from Loan against security of vehicles arrived at by amortising the installment containing the interest, as and when these become due, as per the related agreement. Such amortisation being based on Even Sbrad Method on individual agreements.

II. Additional Interest for Delayed payment and rebate allowed on timely payment are recognised as and when received / paid.

III. As a part of prudent financial management, the Company had decided to progessively follow the international accepted accounting principles on revenue recognition, provisioning and assets classification. These principles stipulate de-recognition income on 5 (Five) installment dues progressive provisioning and recognition of the contracts with 365 days past dues as loss assets. These principles are more stringent than the guidelines brscribed by the Reserve Bank of India for compliance.

In accordance with these prudent accounting policies, all contracts with 365 days past dues treated as loss assets and written off as bad debts. Any subsequent recoveries made out of these contracts will be treated as income for the year during which the same is received

IV. Prudential Norms

Subject to Para III above, the Company has followed the Prudential Norms issued by Reserve Bank of India, as applicable, and revenue / assets have been rebrsented (considering adjustments / written -off / net - off, as applicable) keeping in line therewith and management prudence.

V. Dividend income on investment is accounted for when the company's right to receive dividend is establised.

VI. The Company makes provision of 0.25% on Standard Assets in accordance with RBI Guidelines issued on 17th January, 2011.

(5) Expenses

All the expenses have been accounted for on accrual basis.

(6) Investment Valuation

Investment being Long term Investments are stated at cost. Provisions for dimunition in value of investments are made only when such dimunition is permanent in nature.

(7) Income Tax

a) Provision for Current Income Tax is made on the basis of relevant provisions of the Income Tax Act, 1961 as applicable to the financial year.

b) Deferred Tax on timing differences is measured based on the Tax Rates and the Tax laws enacted or substantively enacted as on the Balance Sheet date. Deferred Tax Assets are recognized only  to the extent that there is virtual certainty with convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

(8) Gratuity

The company has been legally advised that Payment of Gratuity Act, 1972 is not applicable to the company during the year.

(B) NOTES TO THE ACCOUNTS

(1) As required by schedule III, the Company has classified assets and liabilities into current and non- current based on the operating cycle. An operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. Since the normal operating cycle is not determinable, the operating cycle has been considered as 12 months and the Assets & Liabilities are segregated between Current & Non Current on the basis of management's decision.

(2) Loan against security of vehicles

Loan against security of vehicle are valued at agreement value less Installment received and Unmatured interest.

9) Expenditure in Foreign Currency for  Directors' Foreign Travelling Expenses - 1.14 lakhs

(10) Pursuant to the Enactment of the Companies Act 2013, the Company has applied the estimated useful lives as specified in Schedule II. Accordingly the unamortized carrying value is being debrciated/ amortized over the revised/remaining useful lives. The written down value of fixed assets whose lives has expired as at 1st April, 2014 has been Charged in Profit & Loss Account as Extra Ordinary Items amounting to " 68,958/-.

(11) Previous year figures have been regrouped and re-arranged, wherever necessary, to confirm to the current year's classification