1.Retirement Benefits .
 
 The company accountants gratuity on payment basis. The company does not
 have any policy of ^ leave encashment ,and there are no other retirment
 benefits provided by the companyto employees.
 
 2.  Contingment Liabilities not provided for :
 
 Disputed tax liabilities in respect of which appeals are pending before
 appellaate authorities.
 
 3.  In respect of lease transaction, the management is of the opinion
 that the same are operating lease as there is no contractual compulsion
 on the part of the leassor to transfer the leased assets to the lessees
 at the end of the lease period and contract provides for premature
 under certain circumstances. Accordingly,the company has provided
 deperication as per the rates and in the manner sepciied in schedule
 XIV to the Companies Act, 1956.
 
 4 .a) The company accounts for interest on overdue installments on cash
 basis instead of on accural basis as per Accounting Standard 9-Revenue
 Recognition as quantification of these amounts is not done. The impact
 of the same on the loss for the year could not be ascertained as amount
 to be accounted on accrual basis has not been determined.
 
 b) No Provision for liabilities for gratuity has been made as required
 by Accounting Standard 15- Accounting for Retirement benefits is the
 financial Statements of Employers issued by the Institue of Chartered
 Accountants of India,as none of the employees has put in qualifying
 period of service. The impact of the non-provisionon the loss for year
 has not been detemined as liability as per acturial valuation has not
 been ascertained.  
 
 5.  No provision for diminution in value of investment has been
 considered necessary,as in the opinion of the management it is of
 temporary nature and is due to generally depressed market conditions. .
 
 6.  The Company has taken cultivation right on land belonging to
 directors and their relatives.  As the companys principal activity is
 that of Non-banking financial company, the balance sheet and profit and
 loss account for agro activities have been shown separately.
 
 7.  Fixed deposit of Rs.81000/- (previos year Rs.81000/) are under lien
 with central Bank of India.
 
 8.  In the opinion of the management, all the current assets, loans and
 advances which are shown in the financial statements have realizable
 value in the ordinary course of business at least equivalent to the
 amount at which they are stated.
 
 9. Figures in brackets, wherever given, are for previous year.
 
 10.  During the year the management has transferred leased assets &
 debtors under deed of settlement with one of the party.
 
 10. Previous years figures have been rearranged or regrouped wherever
 necessary.
 
 11. The balance sheet abstract and the companys general business
 profile pursuant to part VI of schedule VI to the companies Act, 1956
 is given in annexure A