NOTE: 1

1.1 Basis of Preparation:

The Financial statements have been prepared in accordance with the accounting principles generally accepted in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the Accounting standards notified under the Companies (Accounting Standards) Rules, 2014, (as amended) and the relevant provisions of the Companies Act 2013. The financial statements have been prepared on accrual basis under historical cost convention.

1.2 The Accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

Presentation & Disclosure of Financial Statements

The company has carried out classification of Assets and Liabilities into Current and Non-current based on their residual maturity profile as per the requirement of Revised Schedule III to the Companies Act, 2013.

2.1 Contingent liabilities: -

Claim against the Company not acknowledged as debt since the Management is of the opinion that liability will not crystallize:

2.2 Estimated amount of contract remaining to be executed on capital account and not provided for (net of advances) Rs. 2.89 lacs. (Previous year Rs. Nil)

2.3 Disclosure as regards Employee Benefits as required under AS-15 (revised).

(a) Defined Contribution plan:

Company’s contribution to Provident Fund - Rs 7.49 lacs (P.Y. Rs 7.24 lacs)

(b) Defined Benefit plan:

The following table spells out the status of defined benefit plan:

The Company expects to contribute Rs 10.03 lacs to employee gratuity fund with LIC of India for the financial year 2017-18.

2.4 Hypothecation / Mortgage loan stock and Trade Receivables are secured by hypothecation of assets financed.

2.5 The balance of Trade Receivables, Advances Recoverable and Trade Payables are subject to confirmation. Necessary adjustments, if any, will be made on settlement / reconciliation of accounts.

2.6 Based on information available with the Company, there are no amounts payable to suppliers who are registered under Micro, Small and Medium Enterprises Development Act, 2006 as at 31 ^st March, 2018. Hence, the information required under Micro, Small and Medium Enterprises Development Act 2006 is not disclosed.

2.7 SEGMENT INFORMATION:

The Company is principally engaged in the business of only one broad segment of fund based financing activity. Accordingly, there are no reportable segments as per Accounting Standard - 17 issued by the ICAI on “Segment Reporting”.

2.8 The Board has recommended dividend @ 25% amounting to Rs 86.25 lacs, excluding dividend distribution tax, on equity shares, subject to approval of shareholders in the Annual General Meeting.

2.9 EARNINGS PER SHARE:

a) The amount used as the Numerator in calculating Basic and Diluted Earnings Per Share is the Net Profit for the year disclosed in the Profit and Loss Statement.

b) The weighted average number of Equity Shares used as the Denominator in calculating both Basic and Diluted Earnings Per Share are 34.50 lacs (P.Y. 34.50 lacs)

2.10 The previous year figures have been recast / regrouped wherever considered necessary to make them comparable with current year.

2.11 Schedule to the Balance Sheet (As required in terms of Paragraph 9BB of Non-Banking Financial Companies Prudential Norms (Reserve Bank), Directions, 1998):