1) Contingent liability not provided for:
 
                                                     (Rs. in lacs)
 
 Particulars                  As at 31 March 2011   As at 31 March 2010
 
 Disputed claims against the 
 Company not acknowledged 
 as debts                              381                453
 
 VAT matters under Appeal              349                349
 
 Income Tax matters under Appeal     2,047                970
 
 ESI matter under appeal               514                NIL
 
 2) Warrants issued with debentures to the shareholders in 2006-07 have
 lapsed on 8 January 2010 with no options of conversion being exercised.
 
 3) Debenture Redemption Reserve, if required, will be created in
 accordance with the Circular No.9/2002 dated 18 April 2002, issued by
 Department of Company Affairs, Ministry of law, Justice & Company
 Affairs, Government of India & Section 117 C of Companies Act.
 
 4) (a) The Company assesses all receivables for their recoverability
 and accordingly, makes provisions for non performing assets
 as considered necessary. Further, with effect from the previous year,
 the Company has enhanced its provisioning norms by accelerating
 provision to an early stage based on past experience, emerging trends
 and estimates. however, the Company ensures that the said provisions
 are not lower that the provisions stipulated in the applicable Reserve
 Bank of India Guidelines. The impact of such provisions in excess of
 Reserve Bank of India norms during the year amounted to Rs. 3,877 lacs.
 
 (b) General provision, amounting to Rs. 1,890 lacs, is also made by the
 Company @ 0.25% on the standard assets outstanding and disclosed under
 Provisions in the schedule-8 in the financial statements as required
 by the Reserve Bank of India.
 
 5) The Company is engaged primarily in the business of financing and
 accordingly there are no separate reportable segments as per Accounting
 Standard-17 as prescribed by Companies (Accounting Standards) Rules,
 2006, dealing with Segment Reporting.
 
 6) Employee Stock Option Plan:
 
 The Board of Directors at its meeting held on 14 October 2009, approved
 an issue of Stock Options up to a maximum of 5% of the issued equity
 capital of the Company aggregating to 18,29,803 equity shares in a
 manner provided in the SEBI (Employee Stock Option Scheme and Employee
 Stock Purchase Scheme) Guidelines 1999 subject to the approval of the
 shareholders under Section 81(1A) of the Companies Act, 1956. The
 shareholders of the Company vide their special resolution passed
 through postal ballot on 15 December 2009 approved the issue of Equity
 Shares of the Company under one or more Employee Stock Option
 Scheme(s).
 
 Method used for accounting for share based payment plan
 
 The Company has elected to use intrinsic value method to account for
 the compensation cost of stock options to employees of the Company.
 Intrinsic value is the amount by which the quoted market price of the
 underlying share exceeds the exercise price of the option.
 
 The fair value of options used to compute proforma net profit and
 earnings per share have been estimated on the date of grant using the
 Black – Scholes Model.
 
 7) The disclosures required in terms of Paragraph 13 of the Non
 Banking Financial (Deposit Accepting or holding) Companies Prudential
 Norms (Reserve Bank) Directions, 2007 are given in the Annexure forming
 part of these Financial Statements.
 
 8) Previous years figures have been regrouped, wherever necessary, to
 make them comparable with those of the current period.