AKS Credits Limited was incorporated as on 19th March 1991 under the
 Companies Act, 1956 with the Registrar of Companies, Delhi & Haryana,
 New Delhi as a Private Limited Company. The Company was converted into
 a Public Limited Company and accordingly a fresh certificate of
 incorporation (consequent upon change of name on conversion to public
 limited Company) was issued by Registrar of Companies, Delhi & Haryana
 on 3rd May, 1993. The Company was incorporated with an Authorised
 Capital of Rs. 5.00 lacs which has been subsequently raised to
 Rs.350.00
 lakhs in various stages.  
 
 The Company initiated the hire-purchase activities in June 1991 when
 the first hire-purchase agreement was made. Thereafter the company
 entered into about 40 more HP agreements by the Financial year ending
 31/3/92. While continuing with the Hire-Purchase division in 1992-93,
 about 35 HP agreements during the year were signed. The company
 started the leasing business in March 93. The leasing and Hire
 Purchase business gained momentum in 1993-94 and thereby gaining
 considerable experience in these lines of business activities. The
 company diversified into investment into shares and other securities
 in December, 1993 and has invested in good primary market issues.
 Fund requirements of the Company has been estimated based on such
 experience, firm inquiries for leasing/hire-purchase finance in hand
 from its existing and prospective clients, existing infrastructure
 and keeping in view further growth and prospects of lease and
 hire-purchase financing on account of opening of
 Indian economy and financial reforms being introduced by the
 Government of India.
 
 Present Activities 
 
 Presently the company is engaged in the business of Hire-Purchase,
 Lease finance and Investment in securities. The major income of the
 Company during first two years of operations is from hire purchase
 and in the third year from the leasing business. Now the company's
 main thrust is on leasing business and the value of the gross leased
 assets as on 31.3.94 stood at Rs.148.90 lacs. Investment in shares
 has been started recently. The company is also providing lease
 syndication services by
 referring clients to other companies thereby earning professional
 charges for the same. Now the company proposes to expand the leasing,
 hire purchase and investment business.
 
 PROVISIONING POLICY
 
 The Company being in leasing finance business, lease rentals
 instalments, interest etc. are booked to the clients accounts on
 accrual basis and becomes due for payment. If remains unpaid, the
 amount due is treated as overdue and steps are taken to recover the
 same. If the instalments alongwith the interest remain unpaid for a
 year, the matter is reviewed and in the unlikely event of the amount
 so overdue not forthcoming, it is rephased or provided to be written
 off based on the view taken by the management/legal opinion/board of
 directors. However, even if provisions are made efforts for recovery
 are continued till
 such time the amount is recovered. There are no bad and doubtful
 debts till date.