1.1 SYSTEM OF ACCOUNTING
 
 The financial statement are prepared under the historical cost
 convention on an accrual basis and are in accordance with the
 requirement of the companies Act, 1956
 
 1.2 REVENUE RECOGNITION
 
 a) Interest income is recognized on accrual basis except in case of
 nonperforming assets where it is recognized upon realization as per RBI
 Guidelines.
 
 b) Penal interest is recognized as income on realization.
 
 c) Dividend income is accounted on an accrual basis when the company’s
 right to receive the dividend is established.
 
 1.3 INVESTMENTS Investment is long term in nature and is valued at
 cost.
 
 1.4 FIXED ASSETS The company does not possess any Fixed Assets.
 
 1.5 TAXATION
 
 Income Taxes are accounted for in accordance with Accounting Standard
 22 on Accounting for Taxes on Income (AS-22) issued by the Institute
 of Chartered Accountants of India. Tax expenses comprise both current
 and deferred tax.
 
 Current Tax is determined as the amount of tax payable in respect of
 taxable income for the period using the applicable tax rates and tax
 laws. Deferred tax assets and liabilities are recognized, subject to
 consideration of prudence, 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
 and are measured using tax rates enacted or substantively enacted as at
 the Balance Sheet date. The carrying amount of deferred tax assets and
 liabilities are reviewed at each Balance Sheet date.
 
 1.6 Accounting policies are not specifically referred to otherwise are
 consistent and in accordance with generally accepted accounting
 principles.
 
 1.7 Foreign Currency converted into Indian Rupee is N.A..
 
 1.8 Contingent Liability is Nil. (Previous Year Nil).
 
 1.9 Debit balances of debtors are subjected to confirmation and
 reconciliation form respective parties. The final adjustment, if any,
 in the account of parties shall be known only after confirmation /
 reconciliation, the amount of which could not be ascertained.
 
 In compliance of Sec. 45 IC of the Reserve Bank of India Act, 1934, the
 company has transferred a sum of Rs.  87,943/- to Special reserve Fund.
 The reserve fund so created is available for utilization for specified
 purposes as may be prescribed by the Reserve Bank from time to time.
 
 1.10 Remuneration and perquisites to the directors is Rs. Nil.
 
 1.11 There are certain parties to whom advances in the nature of loans
 have been given by the company. As per management, principal and
 interest thereon is recoverable at a later date as per stipulations
 made with respective parties. As such, interest income is accounted for
 on yearly basis, but their recovery is deferred to a later date.
 
 1.12 There is no related party transaction as in accordance with
 Accounting Standard 18 issued by the institute of Chartered Accountants
 of India.
 
 1.13 Segment Reporting
 
 The Company operates in one segment only namely Finance, Investment and
 related consultancy. Therefore, information about segment reporting in
 line with AS -17 of ICAI has not been given.