1 General
 
 The financial statements are prepared under the historical cost
 convention, on the basis of a going concern and as per the applicable
 accounting standards. The Company follows mercantile system of
 accounting and recognises income and expenditure on accrual basis.
 
 The company has followed prudential norms prescribed by the R.B.I in
 respect of Income Recognition, capital Adequacy and Provision for Bad
 and Doubtful Debts.
 
 2 Inter Branch Transfers
 
 Inter Branch Transfers of currency are at cost.
 
 3 Valuation of Inventories Currencies in stock are valued at cost.
 
 4 Fixed Assets and Depreciation
 
 Fixed assets are stated at cost less Depreciation on Written Down Value
 Method at the rates and in the manner specified in the Schedule XIV to
 the Companies Act, 1956. No depreciation is provided on assets sold
 during the year.
 
 5 Investments
 
 Investments are held on long term basis and valued at cost. Diminution
 in the value of investments is not provided for, as the management is
 of the opinion that the diminution is of temporary nature.
 
 6 Revenue Recognition
 
 Interest on loans and advances are recognized on accrual basis. In
 respect of loans under litigation, it is the company''s policy to
 recognize interest on realization basis.
 
 7 Retirement Benefits
 
 Contribution to Provident Fund is funded as a percentage of salary.
 Adequate provisions have been made in the accounts for the liability
 for Gratuity of employees.
 
 8 Impairment of Assets
 
 The Company has not provided for impairment of any assets.