1.  Basis for Accounting:
 
 Accounts are prepared under the historical cost convention. The Company
 has materially complied with account standards as recommended by the
 Institute of Chartered Accountants Of India
 
 2.  Depreciation:
 
 Depreciation is charged on all the assets on Straight Line basis (SLM)
 at the rates and manner rescribed in schedule XIV of the Companies Act,
 1956 as amended upto date.
 
 3.  Inventories:
 
 Inventories of shares and securities are carried at cost.
 
 4.  Revenue Recognition as per AS 9:
 
 (a) Revenue from Sale is recognized at the time when transaction is
 entered into.
 
 (b) Revenue from Interest is recognized on time proportion basis except
 interest on certain loans amounting to Rs.41,19,997 on which the
 Company charges no Interest.
 
 (c) Revenue from Dividend is recognized when right to receive the same
 is established.
 
 (d) Revenue from Capital Market Transactions is recorded at the point
 of squaring up of transactions.
 
 5.  Accounting for Fixed Assets as per AS 10:
 
 Fixed Assets are stated at cost less depreciation. Costs comprised of
 cost of acquisition and all attributable costs of bringing the assets
 to condition for their intended use.
 
 6.  Accounting for Retirement Benefits Of Employers as per AS 15:
 
 Not applicable to the company since there are No Employees eligible for
 Retirement Benefits
 
 7.  Segment Reporting under Accounting Standard (AS) 17:
 
 Not applicable to the Company as Company operates only one segment of
 Business i.e. Finance
 
 8.  Related party disclosure as per Accounting Standard (AS) 18:
 
 The list of related parties as identified by the management are as
 under
 
 The Company has identified all related parties. No provision for
 doubtful debts or advances is required to be made and no amounts have
 been written off or written back during the year in respect of debts
 due from or to related parties.
 
 9.  Lease Accounting as per Accounting Standard 19:
 
 Not applicable to the Company since no lease transaction took place
 during the year
 
 10.  Consolidated Financial Statement as per Accounting Standard (AS)
 21 Not applicable as the Company does not have any subsidiary.
 
 11.  Accounting for Taxes on Income as per Accounting Standard (AS) 22:
 
 Income tax expenses is accrued in accordance with AS-22 Accounting for
 taxes on Income which includes Deferred Taxes. Deferred Income taxes
 reflects the impact of current year timing differences & timing
 difference of earlier years.Deferred tax assets are recognized only to
 the extent that there is reasonable virtual certainity that sufficient
 future taxable income will be available.
 
 12.  Accounting Of Intangible Assets as per Accounting Standard (AS)
 26:
 
 The Company has amortized Goodwill of Rs. 20,000/- as per Accounting
 Standard 26
 
 13.  Deferred Revenue Expenditure:
 
 Expenses for increase in Authorised Share Capital have been written off
 1/10 of the aggreagate during the year
 
 14.  Financial Reporting of Interest in Joint Venture as per Accounting
 Standard (AS -27)
 
 Not applicable as the Company does not have any Joint Venture
 
 15.  Impairment of Assets as per Accounting Standard (AS- 28):
 
 Since carrying amount of assets does not exceeds recoverable amount,
 there is no need for provision of impairment of the assets as per
 Accounting Standard 28.
 
 16.  Provisions, Contingent Liabilities and Contingent Assets (AS- 29):
 
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Assets are neither recognized nor disclosed in the financial
 statements.Contingent Liabilities, if material, are disclosed by way of
 notes.