(1) Significant Accounting Policies
 
 (A) INCOME: The Company follows the accrual system of accounting except
 of dividend received, overdue finance charges & income on
 non-performing assets which are accounted for on cash basis.
 
 (B) FIXED ASSETS: All Fixed Assets including assets given on lease are
 valued at cost less accumulated depreciation.
 
 (C) DEPRECIATION
 
 (a) Normal depreciation owned and leased assets is provided on straight
 line methods at the rates prescribed under Schedule XIV to the
 Companies Act, 1956.
 
 (b) Written down value of leased assets on the date of transfer after
 deducting any lease security or transfer price is treated on terminal
 depreciation for the year on behalf of such assets on expiry of lease
 period as the company fully recover the cost of assets.
 
 (D) INVESTMENT: Investment held by the company are classified into
 short & long term investment and the manner of their valuation &
 provision for depreciation are made as per RBI guidelines.
 
 (E) Payment in respect of Income-tax demands, made earlier, is shown as
 loans and advances, till the final outcome of the matter.
 
 (F) Provision on account of Non Performance Assets are made as per RBI
 guidelines.
 
 (G) Company's contribution to Provident Fund, ESI & Gratuity Provision
 are charged to Profit & Loss A/c.
 
 (H) Miscellaneous expenditure are written off over a period of ten
 accounting years.