A.  Corporate Information: Ushakiran Finance Limited is a Non- Banking
 Finance Company listed on the Bombay Stock Exchange. It is engaged in
 the business of Financing, investments etc.,
 
 B.  Basis of Accounting:
 
 The financial statements are prepared on the basis of historical cost
 convention and the accounts are prepared in accordance with the
 generally accepted accounting policies and accounting standards
 notified undet1 section 211 (3C) Companies (Accounting Standards)
 Rules, 2006 and provisions of the Companies Act, 1956 as adopted
 consistently by the Company, unless otherwise stated.
 
 C.  Use of Estimates:
 
 Estimates and assumptions used in the preparation of the financial
 statements are based on management''s, evolution of the relevant facts
 and circumstances as of the date of the Financial statements which may
 differ from the actual results at a subsequent date.
 
 D.  Prudential Norms:
 
 The company compiles its Financial Statements in accordance with the
 prudential norms prescribed by the Reserve Bank of India in respect of:
 
 a) Income recognition. ''
 
 b) Provisioning for standard, substandard, doubtful and loss Assets:
 
 c) Accounting for Investments.
 
 E.  Revenue Recognition:
 
 Income from interest is accounted on due basis, subject to income
 recognition and prudential norms of Reserve Bank of India as mentioned
 above, interest income on Non-performing, doubtful/loss assets etc.,
 are recognized as and when the amount is received and appropriated
 towards interest. Dividend Income is accounted when the right to
 receive the dividend is established.
 
 F.  Expenses:
 
 All the expenses are accounted on accrual basis.
 
 G.  Fixed Assets:
 
 Fixed Assets are stated at cost of acquisition.
 
 H.  Depreciation:
 
 Depreciation has been provided on written down vaiue method as per
 Schedule XIV of the Companies Act, 1956.
 
 I.  Investments:
 
 Investments (Long Term) are stated at cost of acquisition.
 
 The diminution in the value of quoted investments has been provided, if
 such decline is other than temporary in the opinion of management.
 
 J. inventories:
 
 Shares and Securities held as Stock-in-Trade are vatued scrip wise at
 cost or market value whichever is lower.
 
 K. Provisions, Contingent Liabilities and Contingent Assets:
 
 Provisions involving substantial degree of estimation iri
 measuremenfare 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 Liabili- ties are not recognized but are
 disclosed in the notes to accounts. Con* tingent Assets are neither
 recognized nor disclosed in the financial state- ments.
 
 L. Retirement and other employee benefits:
 
 All employees benefits due wholly within a year of rendering services
 are classified as short term benefits. These benefits like salaries,
 wages short term compensation absences, expected cost of bonus,
 ex-gratia are recognized as expenses on accrual basis of undiscounted
 amounts in the Profit and Loss Account. Retirement benefits to the
 Employees will be provided as and when the relevant acts are applicable
 to the Company.
 
 M. Accounting for taxes on income: .
 
 (a) Current Tax is determined as the amount of tax payable in respect
 of its taxable income as per the provisions of the Income Tax Act,
 1961.
 
 (b) Deferred tax is recognized, subject to consideration of prudence in
 respect of deferred tax asset, on timing difference, being the
 difference between taxable income and accounting income that originate
 in one period and are capable of reversal in one or more subsequent
 periods and measured using relevant enacted tax rates.
 
 N. Earnings per Share:
 
 Basic earnings per share is computed and disclosed using the weighted
 average number of equity shares outstanding during the year. DHutive
 earnings per share is computed and disclosed using the weighted average
 number of equity and dilutive equivalent shares outstanding during the
 year, except when the results would be anti-dilutive.