1.  Basis of preparation
 
 The financial statements have been prepared to comply in all material
 respects with the Notified Accounting Standard by Companies Accounting
 Standards Rules, 2006 and the accounting of the effects for the Scheme
 has been done in accordance with the terms of the Scheme as approved by
 the High Court and the relevant provisions of the Companies Act, 1956
 (''the Act'').  The financial statements have been prepared under the
 historical cost convention on an accrual basis, except for dividend
 from mutual fund units recognised on receipt basis and valuation of
 unquoted units of mutual funds at net asset value, which is in
 accordance with Non-Banking Financial (Non-deposit accepting or
 holding) Companies Prudential Norms (Reserve Bank) Direction 2007
 (''NBFC Regulation''). The accounting policies have been consistently
 applied by the Company and are consistent with those used in the
 previous year.
 
 2.  Use of estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the results of operations during the
 reporting period end. Although these estimates are based upon
 management''s best knowledge of current events and actions, actual
 results could differ from these estimates.
 
 3.  Fixed assets and Depreciation
 
 Tangible Assets
 
 Fixed assets are stated at cost less accumulated depreciation and
 impairment losses, if any. Cost comprises the purchase price and any
 other directly attributable costs of bringing the asset to its working
 condition for its intended use.
 
 Leasehold improvements are depreciated on straight line basis over
 shorter of useful lives or primary period of lease agreements of 5
 years.
 
 Intangible Assets
 
 Intangible assets include domain names, trademarks, copyrights and
 computer software, which are acquired, capitalized and amortized on a
 straight-line basis over the estimated useful lives of 5 years.
 
 Depreciation
 
 Depreciation is provided using Straight Line Method at the rates
 prescribed under Schedule XIV of the Companies Act, 1956.
 
 Tangible assets and intangible assets costing Rs 5,000 or less
 individually are fully depreciated / amortized in the year of purchase.
 
 Impairment
 
 The carrying amounts of assets are reviewed at each balance sheet date
 if there is any indication of impairment based on internal/external
 factors. An impairment loss is recognized wherever the carrying amount
 of an asset exceeds its recoverable amount. The recoverable amount is
 the greater of the assets net selling price and value in use. In
 assessing value in use, the estimated future cash flows are discounted
 at the pre tax discount rate reflecting current market assessment of
 time value of money and risks specific to asset.
 
 After impairment, depreciation is provided on the revised carrying
 amount of the asset over its remaining useful life.
 
 A previously recognised impairment loss is increased or reversed
 depending on changes in circumstances. However the carrying value after
 reversal is not increased beyond the carrying value that would have
 prevailed by charging usual depreciation if there was no impairment.
 
 4.  Revenue recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 Interest income
 
 Interest income is recognised on the time proportionate basis.
 
 In case of non performing assets interest income is recognised on
 receipt basis as per NBFC Prudential norms.
 
 Interest income on retail loans
 
 Income from retail finance operations is accounted for by applying the
 Internal Rate of Return (IRR), implicit in the agreement on the
 diminishing balance of the financed amount, so as to provide a
 constant periodic rate of return on the net investment outstanding on
 the agreements.
 
 Interest on retail portfolio buyout is recognised on accrual basis at
 agreed rate of interest on diminishing balance of outstanding loan.
 
 In case of non performing assets interest income is recognised on
 receipt basis as per NBFC prudential norms.
 
 Pre EMI interest received from customers is recognised as income on
 accrual basis.
 
 Income on discounted instruments
 
 Income on discounted instruments is recognised over the tenor of the
 instrument on straight line basis.
 
 Interest income on discounted instruments is recognised on a time
 proportion accrual basis.
 
 Upfront fees on loans
 
 Upfront fees on loans are recognised as and when they are due.
 Processing fees, Subvention income (net of service tax)on retail loans
 Processing fees received from customers and Subvention income received
 from manufacturers and dealers is recognised as income over the tenor
 of the loan agreements. The unamortized balance is being disclosed as
 part of current liabilities.  However, if the agreement is foreclosed /
 transferred through assignment, balance of processing fees and
 subvention income is recognised as income at the time of such
 foreclosure / transfer through assignment.
 
 Fees and commission income
 
 Fees and commission income is recognised as and when they are due.
 Income from Assignment of loans and receivables.
 
 In case of assignment of loans the loans are derecognized as all the
 rights, title, future receivable and interest thereof are assigned to
 the purchaser. On derecognition, the difference between the book value
 of loans assigned and the consideration received as reduced by the
 estimated provision for loss/ expenses and incidental expense related
 to the transaction is recognized as gain or loss arising on assignment.
 
 Income on retained interest in the assigned asset, if any, is accounted
 on accrual basis.
 
 Dividend income
 
 Dividend income is recognised when the shareholders'' right to receive
 payment is established by the balance sheet date.  Dividend from the
 units of mutual funds is recognized on receipt basis in accordance with
 the NBFC Regulation.
 
 Profit/Loss on sale of investments
 
 Profit or loss on sale of investments is determined on the basis of
 the weighted average cost method.
 
 Advisory fees
 
 Revenue from investment advisory services are recognised on pro-rata
 basis over the period of contract as and when services are rendered or
 in accordance with the arrangements entered into with the parties
 receiving such investment advisory services.
 
 5.  Investments
 
 Investments that are readily realisable and intended to be held for not
 more than a year are classified as current investments.  All other
 investments are classified as long-term investments. Current
 investments are carried at lower of cost and fair value determined on
 an individual investment basis. Long-term investments are carried at
 cost. However, provision for diminution in value is made to recognise a
 decline other than temporary in the value of the investments.
 
 Unquoted investments in units of mutual funds are stated at net asset
 value.
 
 6.  Foreign currency transactions
 
 (i) Initial Recognition
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency at the date of the
 transaction.
 
 (ii) Conversion
 
 Foreign currency monetary items are reported using the closing rate.
 Non-monetary items which are carried in terms of historical cost
 denominated in a foreign currency are reported using the exchange rate
 at the date of the transaction.
 
 (iii) Exchange Differences
 
 Exchange differences arising on the settlement of monetary items or on
 reporting Company''s monetary items at rates different from those at
 which they were initially recorded during the year, or reported in
 previous financial statements, are recognised as income or as expenses
 in the year in which they arise.
 
 7.  Retirement and other employee benefits
 
 (i) The Company''s employee benefits cover provident fund, gratuity and
 leave encashment.
 
 (ii) Provident fund is a defined contribution scheme and the Company
 has no further obligation beyond the contributions made to provident
 fund authorities. Contributions are charged to the profit and loss
 account in the year in which they accrue.
 
 (iii) Gratuity liability is a defined benefit obligation and is
 recorded based on actuarial valuation on projected unit credit method
 made at the end of the financial year. The gratuity liability and the
 net periodic gratuity cost is actuarially determined after considering
 discount rates, expected long term return on plan assets and increase
 in compensation levels. All actuarial gains/losses are immediately
 charged to the profit and loss account and are not deferred.
 
 (iv) The Company has provided for leave encashment liability at year
 end on account of unavailed earned leave as per the actuarial valuation
 as per the Projected Unit Credit Method.
 
 8.  Borrowing costs
 
 Borrowing costs consists of interest and other cost that an entity
 incurs in connection with borrowing of funds. Borrowing costs are
 recognized as an expense in the period in which these are incurred.
 
 9.  Segment Reporting Policies
 
 Identification of segments
 
 The Company has organized its operations into three major businesses:
 Retail Financial Services, Wholesale credit & Treasury and Investment
 Advisory. The analysis of geographical segments is based on the areas
 in which major operating divisions of the Company operate.
 
 Allocation of common costs
 
 Common allocable costs are allocated to each segment according to the
 relative contribution of each segment to the total common costs.
 
 Unallocated items
 
 It includes income and expense items which are not allocated to any
 business segment.
 
 10.  Leases
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased asset are classified as
 operating leases. Operating lease payments are recognized as an expense
 in the profit and loss account on a straight line basis over the lease
 period.
 
 11.  Earnings per share
 
 Basic earnings per share are calculated by dividing the net profit for
 the period attributable to equity shareholders by the weighted average
 number of equity shares outstanding during the period.
 
 For the purpose of calculating diluted earnings per share, the net
 profit for the period attributable to equity shareholders and the
 weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.
 
 12.  Income taxes
 
 Income tax comprises of current and deferred tax. Current income tax is
 measured at the amount expected to be paid to the tax authorities in
 accordance with the Income Tax Act, 1961. Deferred income taxes refl
 ects the impact of current year timing differences between taxable
 income and accounting income for the year and reversal of timing
 differences of earlier years.
 
 Deferred tax is measured based on the tax rates and the tax laws
 enacted or substantively enacted at the balance sheet date.  The effect
 on deferred tax assets and liabilities of a change in tax rates is
 recognized in the income statement in the period of enactment of the
 change. Deferred tax assets are recognised only to the extent that
 there is reasonable certainty that sufficient future taxable income
 will be available against which such deferred tax assets can be
 realised. In situation where the Company has unabsorbed depreciation
 and carry forward tax losses, deferred tax assets are recognised only
 if there is virtual certainty supported by convincing evidence that
 such deferred tax assets can be realised against future taxable profi
 ts.
 
 At each balance sheet date the Company re-assesses unrecognised
 deferred tax assets. It recognises unrecognised deferred tax assets to
 the extent that it has become reasonably certain or virtually certain,
 as the case may be that sufficient future taxable income will be
 available against which such deferred tax assets can be realised.
 
 The carrying amount of deferred tax assets are reviewed at each balance
 sheet date. The Company writes-down the carrying amount of a deferred
 tax asset to the extent that it is no longer reasonably certain or
 virtually certain, as the case may be, that sufficient future taxable
 income will be available against which deferred tax asset can be
 realised. Any such write-down is reversed to the extent that it becomes
 reasonably certain or virtually certain, as the case may be, that suffi
 cient future taxable income will be available
 
 13.  Provisions
 
 A provision is recognized when the enterprise has a present obligation
 as a result of past event and it is probable that an outflow of
 resources will be required to settle the obligation, in respect of
 which a reliable estimate can be made. Provisions are not discounted to
 their present value and are determined based on management estimate
 required to settle the obligation at the balance sheet date. These are
 reviewed at each balance sheet date and adjusted to reflect the
 current management estimates.
 
 14.  Provision for doubtful assets
 
 After taking into account the time lag between an accounts becoming non
 performing, its recognition as such and realization of available
 security, following provisions and write off are made against overdue
 retail loans as under:
 
 15.  Cash collateral
 
 Cash collateral received on loan portfolio buyout is utilised towards
 any shortfall in monthly receipt of EMI. The Company is secured from
 provisioning requirements to the extent of cash collateral balance
 lying with the Company.
 
 16.  Loan origination cost
 
 Loan origination costs such as credit verification, front end sales
 and processing cost, agreement stamping, direct selling agents
 commission and valuation charges are recognised as expense over the
 average tenor of the loan agreements. Full month''s amortization is done
 in the month of booking of loan. The unamortized balance is being
 disclosed as part of loans and advances. However, if the case is
 foreclosed or transferred through assignment, the unamortised portion
 of the loan acquisition costs is recognised as charge to the Profit
 and Loss Account at the time of such foreclosure.
 
 17.  Commercial Papers
 
 Commercial paper is recognised at redemption value net of unamortized
 finance charges. The difference between redemption value and issue
 value is amortised on a time basis and is disclosed separately under fi
 nance charges.
 
 18.  Employee Stock Option Scheme (''ESOS'')
 
 Measurement and disclosure of the employee share-based payment plans is
 done in accordance with SEBI (Employee Stock Option Scheme and Employee
 Stock Purchase Scheme) Guidelines, 1999 and the Guidance Note on
 Accounting for Employee Share-based Payments issued by The Institute
 of the Chartered Accountants of India (''ICAI''). The Company measures
 compensation cost relating to employee stock options using the
 intrinsic value method. Compensation expense, if any, is amortised over
 the vesting period of the option on a straight line basis.