i.  The Financial Statements are prepared on Accrual Basis under
 Historic Cost Convention and in accordance with the Revised Schedule VI
 to The Companies Act, 1956 and the Accounting Standards specified by
 the Institute of Chartered Accountants of India with proper
 explanations relating to material departures. The Company being a
 Non-Banking finance Company follows the guidelines as prescribed by the
 Reserve Bank of India to the extent applicable to it.
 
 ii.  Fixed Assets are stated at cost including any acquisition
 expenses. Accounting standard 6 provides for provision of depreciation
 as per Company''s Act, however as a measure of prudence depreciation
 in books is provided at higher rates on written down value basis and
 the accounting of fixed assets in books of accounts is done as per
 provision of Income Tax Act, 1961 as Block of Assets. The difference in
 depreciation as per Company''s Act and as per Income Tax Act, is not
 material.
 
 iii. Investments - Investments are stated at cost. Income from
 Investments is included together with the related tax credit in the
 Profit & Loss Account.
 
 iv.  Loans and advances which are recoverable on demand or stipulation
 in cash or kind or for value to be received are classified as short
 term. The interests on Loan amounts given are provided whenever it is
 receivable.