1.  Basis of preparation of Financial Statements:
 
 a) The financial statements have been prepared under the historical
 cost convention, in accordance with the generally accepted accounting
 principles and the provisions of the Companies Act, 1956 and Housing
 Finance Companies, (NHB) Directions, 2010. Accounting Standards (AS)
 referred to in the notes are as issued by the Institute of Chartered
 Accountants of India.
 
 b) Accounting policies not specifically referred to otherwise are
 consistent with the generally accepted accounting principles followed
 by the Company.
 
 c) The preparation of financial statements requires Management to make
 estimates and assumptions that effect the reported amounts of assets
 and liabilities on the date of financial statements and the reported
 amount of revenues and expenses during the reporting period. Difference
 between the actual results and estimates are recognised in the period
 in which the results are known / materialised.
 
 2.  Interest on Housing Loan :
 
 Repayment of housing loans is by way of Equated Monthly Instalments
 (EMI) comprising principal and interest. Interest is calculated each
 year on the outstanding balance at the beginning of the Company''s
 financial year or on monthly reducing balance in terms of financing
 scheme opted by the borrower.  EMI commences once the entire loan is
 disbursed. Pending commencement of EMI, pre-EMI monthly interest is
 payable.
 
 3.  Interest & other related Financial Charges:
 
 Interest accrued on Cumulative Fixed Deposits and payable at the time
 of maturity is clubbed with the principal amount on the date of
 periodical rest when interest is credited in Fixed Deposit account in
 accordance with the particular deposit scheme. Interest and other
 related financial charges are recognized as an expense for the period
 for which they are incurred as specified in Accounting Standard (AS 16)
 on Borrowing Costs.
 
 4.  Revenue Recognition:
 
 a) Interest on performing assets is recognized on accrual basis and on
 non-performing assets on realisation basis as per the guidelines
 prescribed by the National Housing Bank. The interest income (payment)
 is adjusted for gain (loss) on corresponding hedge contracts / interest
 swap derivatives, wherever executed.
 
 b) Dividend income on investments, processing fees and penal interest
 income on delayed EMI/PEMI are recognised on receipt basis.
 
 c) Income from other services is recognised on accrual basis.
 
 5.  Foreign Exchange Transactions:
 
 Transactions in foreign currencies are recorded at the rates prevailing
 on the dates of the transactions.  Monetary items denominated in
 foreign currency are stated at contracted rates as those are covered by
 forward contracts. Premium for forward contracts is recognised as
 expenditure over the life of the contract.
 
 6.  Provision for Contingencies:
 
 Provision for Contingencies has been made for diminution in investment
 value and on non-performing housing loans and other assets as per the
 Prudential Norms prescribed by the National Housing Bank.  The Company
 also makes certain additional provision to meet unforeseen
 contingencies.
 
 7.  Investments:
 
 All Investments are stated at cost as per Accounting Standard (AS 13)
 on Accounting for Investments and the guidelines issued by the
 National Housing Bank. Investment in unquoted shares being long term
 investment is stated at cost and provision for diminution is made only
 if such diminution is other than temporary. Investments in mutual funds
 and quoted shares are in the nature of current Investments and full
 provision for diminution in the value of said Investments is made.
 
 8.  Fixed Assets:
 
 Fixed Assets are stated at cost inclusive of expenses incidental
 thereto. All cost, including financing cost till the asset is put to
 use are capitalised. Depreciation on fixed assets is provided on
 straight-line method at the rates prescribed under Schedule XIV to the
 Companies Act, 1956.
 
 9.  Impairment of Assets:
 
 An Asset is treated as impaired when the carrying cost of the Asset
 exceeds its recoverable value. An impairment loss is charged to the
 Profit & Loss Account in the year in which an asset is identified as
 impaired.  The impairment loss recognised in earlier accounting periods
 is reversed if there has been a change in the estimate of recoverable
 amount as specified in Accounting Standard (AS 28) on Impairment of
 Assets.
 
 10. Intangible Assets:
 
 Intangible Assets comprise of software and are stated at cost incurred
 on purchases and for bringing the same to its working condition and are
 amortised as per the provisions of the Companies Act, 1956.
 
 11. Special Reserve:
 
 The Company creates Special Reserve every year out of its profits in
 terms of Section 36(1) (viii) of the Income Tax Act, 1961 read with
 Section 29C of the National Housing Bank Act, 1987.
 
 12. Prepaid Expenses:
 
 Financial Expenses incurred during the year which provides benefit in
 several accounting years and Brokerage paid on long term fixed deposits
 has been treated as revenue expense only for the period relating to the
 current year and balance is treated as prepaid expense to be adjusted
 on pro-rata time basis in the future accounting years.
 
 13. Employees Retirement Benefits:
 
 a.  Company''s contribution in respect of Employees'' Provident Fund is
 made to Government Provident Fund and is charged to Profit & Loss
 Account
 
 b.  Gratuity and Leave Encashment payable at the time of retirement are
 charged to Profit & Loss Account on the basis of actuarial valuation as
 required under AS-15.
 
 14. Earnings per share:
 
 The earnings per share has been computed as per Schedule O in
 accordance with Accounting Standard (AS 20) on, Earnings Per Share
 and is also shown in the Profit & Loss Account.
 
 15. Income Tax:
 
 Income Tax provision based on the present tax laws in respect of
 taxable income for the year and the deferred tax is treated in the
 accounts based on the Accounting Standard (AS 22) on Accounting for
 Taxes on Income. The Deferred Tax assets and liabilities for the year,
 arising out of timing difference, are reflected in the Profit and Loss
 account. The cumulative effect thereof is shown in the Balance Sheet.
 Deferred Tax assets, if any, are recognised only if there is a
 reasonable certainty that the assets will be realized in future.
 
 16. Housing and Other Loans :
 
 Housing Loans include outstanding amount of Housing Loan and Project
 Loan disbursed directly or indirectly to individual and other
 borrowers. Other loans include mortgage loan, non residential property
 loan, plot loan for self construction where construction has not began
 in last two years and loan against the lease rental income from
 properties in accordance with directions of National Housing Bank
 (NHB). EMI and installments due from borrowers against the housing
 loans are shown as current assets as loans and advances.
 
 17. Securitised Assets:
 
 Securitised Assets are derecognised in the books of the Company based
 on the principle of transfer of ownership interest over the assets.
 De-recognition of securitised assets and recognition of gain or loss
 arising on such securitisation is based on the Guidance Note on
 Accounting for Securitisation issued by the Institute of Chartered
 Accountants of India.