1.  Accounting Convention
 
 The financial statements have been prepared under the historic cost
 convention in accordance with applicable standards and relevant
 presentational requirements of the Companies Act, 1956.
 
 2.  Fixed Assets .
 
 Fixed Assets are stated at cost less accumulated depreciation. Cost is
 inclusive of freight, duties and levies and other attributable cost of
 bringing to their working condition. In case of lease assets, which are
 repossessed/taken into custody, are removed from fixed assets and are
 shown under “Other Current Assets.
 
 3.  Depreciation
 
 Depreciation is provided as per written down value method as provided
 in Schedule XIV of the Companies Act, 1956.
 
 4.  Lease Accounting
 
 The Company applied the rate of depreciation as prescribed under
 Schedule XIV under Companies Act. 1956 on its existing lease assets.
 The difference between the applicable depreciation rate as stated above
 and that stipulated in the lease agreement is provided for when the
 primary lease period terminates.
 
 5.  Investments
 
 Investments are bifurcated into “Current investments and “Long
 Term investments.
 
 Current investments are valued at the lower of cost and market value of
 each investment individually.  Long Term investments are valued at
 cost. However, in case of Government approved Securities where the cost
 price is higher than the face value, the premium is amortized over the
 remaining period of maturity. Provision for diminution is made if there
 is permanent decline in the value and such reduction are determined and
 made for each investment individually.
 
 Unquoted shares are valued at cost of break-up value of the shares as
 per the last audited balance sheet of the Company concerned, whichever
 is less.
 
 Investments in Units of Mutual Funds which are not quoted in the market
 are valued at lower of cost or latest NAV/repurchase price declared by
 the Mutual Fund in respect of each particular scheme.  Commercial
 Papers and Treasury Bills are valued at carrying cost.
 
 Unquoted debentures depending on the tenor are treated as long term
 loans or other facilities for the purpose of income recognition and
 asset classification.
 
 6.  Stock on Hire Purchase
 
 Stock on hire purchase is valued at agreement value less amounts
 received/receivable. The amounts receivable from the hirers are
 reflected as Sundry Debtors. In case of stock on hire, which are
 repossessed/taken into custody are shown under Other Current
 Assets”.
 
 7.  Other Current Assets
 
 The above include leased assets and stock on hire repossessed/taken
 into custody/awarded and rights acquired which are shown as “Assets
 and Rights acquired/repossessed/awarded in satisfaction of claims and
 these are valued at lower of book value and estimated realisable value.
 
 8.  Revenue Recognition
 
 [i] Hire purchase finance charges are accounted for on accrual basis
 and are recognised so as to produce a constant percentage periodic
 return on the hire pruchase outstanding install ments.
 
 [ii] Lease rental, bill discounting charges and interest are accounted
 for on accrual basis.
 
 [iii] Income from non-performing assets is recognised in accordance
 with the guidelines to Non-banking Financial Companies on prudential
 norms for income etc. issued by the Reverse Bank of India as m odified
 from time to time. Further, provisions for Hire Purchase & Lease
 Assets, Loans and Advances and Other Current Assets are made in
 accordance with such guidelines.
 
 [ivj Art work, Insurance Agency Commission, Designing. Printing and
 Scanning etc. are accounted for on completion of job.
 
 9.  Management Fees/Processing charges
 
 Mangement fees / processing charges are considered as income in the
 year the asset has been given on lease / hire purchase.
 
 10.  Advertisement, Printing & Stationery & Brokerage
 
 Advertisement, Printing & Stationery & Brokerage, reimbursement of
 expenses for mobilisation of public deposits are charged to Profit and
 Loss Account in the year these are incurred asper guidelines provided
 in Accounting Standard 26 (AS-26).
 
 11.  Share Isseu and Promotional Expenses
 
 Share Issue and Promotional Expenses are charged to Profit and Loss
 Account in the year these are incurred as per guidelines provided in
 Accounting Standard 26 (AS-26).
 
 12.  Employees Benefits
 
 Short term employee benefits (benefits which are payable within 12
 months after the end of the period in which the employees rendered
 service) are measured at cost. The company does not have any defined
 obligation pertaining to post retirement medical benefits, pension and
 superannuation for existing I surviving employees. As such medical
 expenses are measured on cost to company basis.
 
 Long term employee (benefits which are payable after the end of 12
 months from the end of the period in which the employees renderd
 service) and post employment benefits (benefits which are payable after
 completion of employment i.e. gratuity and leave encashment) are
 measured on a discounted basis by the projected unit credit method on
 the basis of annual third party actuarial valuations.
 
 13.  Taxation
 
 Current tax is determined on tax payable in respect of taxable income
 for the period. Deferred tax is recognized subject to the consideration
 of prudence, on timing differences between taxable income and
 accounting income that orginiate in one period and are capable of
 reversal in one or more subsequent period. Deferred tax asset is
 recognized on unabsorbed depreciation and carry forward losses only if
 there is virtual certainity of realization in future. Deferred tax
 assets/liabilities are reviewed at each balance sheet date based on
 development during the year and available judicial pronouncements, to
 reassess realisation I liability.