a) Basis of Preparation of Financial Statements
 
 The financial statements have been prepared with the Generally Accepted
 Accounting Principles in India (Indian GAAP) to comply in all material
 respects with the accounting standards notified by Companies
 (Accounting Standards) Rules, 2006 (as amended) and the relevant
 provisions of the Companies Act, 1956 and the Directions of the
 National Housing Bank. The financial statements have been prepared
 under the historical cost convention on an accrual basis. The
 accountings policies have been consistently applied by the Company and
 are consistent with those used in the previous period.
 
 b) Use of Estimates
 
 The preparation of the financial statements requires the management to
 take reasonable estimates and assumption that affect the reported
 amount of assets, liabilities and disclosure of contingent liabilities
 as at the date of the financial statements. Management believes that
 these estimates are reasonable and prudent. However, actual results may
 differ from estimates.
 
 c) Housing Loans And Investments
 
 Housing loans are classified into Performing and
 Non-Performing assets in terms of guidelines laid down by the
 National Housing Bank. Non Performing Housing loans are further
 classified as sub-standard, doubtful and loss assets based on the
 Housing Finance Companies (NHB) Directions, 2001 as amended till 10th
 June, 2010.  Investments are accounted and valued at cost plus
 incidental expenditure incurred in connection with acquisition.
 Investments are classified into two categories i.e. Non-Trade
 (Long-term investments) and Trade (Current investments).
 
 Provisions for non-performing assets and investments are done on a
 yearly review in accordance with the directives/ guidelines laid down
 by the National Housing Bank. Permanent diminution in the value of the
 non-trade investments is reviewed and necessary provisioning is done in
 the accounts in accordance AS-14 on Accounting for Investments.
 Trade Investments are valued at lower of cost or market value.
 
 d) Cash Flow Statements
 
 Cash flow statement of the company reports cash flows during the period
 classified by operating, investing and financial activities.
 
 e) Revenue Recognition
 
 Repayment of housing loans is by way of Equated Monthly Installments
 (EMI) comprising of principal and interest.  Interest is calculated on
 the outstanding loan balance (including all interest and fees for
 defaults) at the beginning of every year and on loan disbursed during
 the year from the beginning of the month in which the loan has been
 disbursed till year end at applicable slab rates.
 
 Interest on Housing Loans which are classified as Non- performing
 assets is recognised on realisation as per the directives/ guidelines
 laid down by National Housing Bank.
 
 Fees and other income on loan application and subsequent sanction
 thereof and income from investments are recognised on cash basis as and
 when received.
 
 f) Fixed Assets
 
 Fixed Assets are stated at cost including all incidental expenses
 incurred for bringing the asset to its current position, less
 depreciation at rates prescribed in Schedule XIV to the Companies Act,
 1956, subject to provisions of Accounting Standard 26 Intangible
 Assets.
 
 g) Depreciation
 
 Depreciation is provided on written down value method in accordance
 with section 205(2) of the Companies Act, 1956 at the rates specified
 in schedule XIV to the Companies Act, 1956 on pro-rata basis with
 reference to the period of put to use of such assets. Assets costing
 less than Rs. 5,000/- per item are depreciated at 100% in the year of
 purchase.
 
 h) Employee Benefits
 
 All short-term employee benefits are recognised at their undiscounted
 amount in the accounting period in which they are incurred.
 
 Retirement Benefits in the form of gratuity and leave salary is
 accounted in the year of payment.
 
 i) Leases
 
 Lease rentals in respect of assets taken under operating leases are
 charged to profit and loss account on a straight line basis over the
 lease term.
 
 j) Income Taxes
 
 Provision for current tax is made for the tax liability payable on
 taxable income after considering the allowances, deductions and
 exemptions and disallowances if any determined in accordance with the
 prevailing tax laws.
 
 The differences between the taxable income and the net profit or loss
 before tax for the period as per the financial statements are
 identified and the tax effect on the timing differences is
 recognised as deferred tax asset or deferred tax liability. The tax
 effect is calculated on the accumulated timing differences at the end
 of the accounting period based on the tax rates and laws, enacted or
 substantively enacted as of the balance sheet date.
 
 k) Impairment of Assets
 
 The carrying amounts of assets are reviewed at each Balance Sheet date
 to determine whether there is any indication of impairment. If any such
 indication exists, the recoverable amount is estimated at the higher of
 net realisable value and value in use. Impairment loss is recognised
 wherever carrying amount exceeds the recoverable amount.
 
 I) Provisions, Contingent Liabilities & Contingent Assets
 
 The Company creates a provision when there is a present obligation as a
 result of an obligating event that probably requires an outflow of
 resources and a reliable estimate can be made of the amount of the
 outflow.
 
 Contingent liabilities are disclosed in respect of possible obligations
 that arise from past events but their existence is confirmed by the
 occurrence or non-occurrence of one or more uncertain future events not
 within the control of the company.
 
 Contingent Assets are neither recognised nor disclosed in the Financial
 Statements as a matter of prudence.