i) Basis of Preparation
 
 a) The financial statements have been prepared under the historical
 cost convention and on an accrual basis unless otherwise stated.
 
 b) The Company follows the directions prescribed by the Reserve Bank of
 India for Non-Banking Financial (Non-Deposit Accepting or Holding)
 Companies (NBFC-ND), provisions of the Companies Act, 1956 and the
 applicable Accounting Standards notified by the Central Government
 under the Companies (Accounting Standard) Rules, 2006.
 
 c) The preparation of financial statements requires the management to
 make estimates and assumptions considered in the reported amounts of
 assets and liabilities (including contingent liabilities) as on the
 date of the financial statements and the reported income and expenses
 during the reporting period. Management believes that the estimates
 used in the preparation of the financial statements are prudent and
 reasonable. Future results could differ from these estimates.
 
 ii) Assets on Finance
 
 a) Assets on Finance include assets given on Finance / Loan and amounts
 paid for acquiring financial assets including non-performing assets
 (NPAs) from other Banks / NBFCs.
 
 b) Assets on Finance represents amounts receivable under Finance / Loan
 agreements and is net of unmatured / unearned finance charges and
 amounts securitised / assigned and includes advances under such
 agreements.
 
 c) Repossessed assets are valued at lower of book value and estimated
 realisable value.
 
 iii) Revenue Recognition
 
 a) Income from Operations includes finance charges on Assets on Finance
 / Loan recognised on the basis of Internal Rate of Return method on
 individual agreements. In case of operating lease, rent income is
 accounted for on straight line basis over the period of the lease. In
 respect of NPAs acquired, recoveries in excess of consideration paid is
 recognised as income in accordance with RBI guidelines.
 
 b) In respect of receivables securitised prior to 1st February, 2006
 and receivables assigned bilaterally, the assets are de- recognised as
 all the rights, titles and future receivables are assigned to the
 purchaser. On de-recognition, the difference between the book value of
 the assets securitised / assigned and the discounted value of the
 receivables is taken to Profit and Loss Account. In terms of Reserve
 Bank of Indias Guideline, in respect of receivables securitised post
 1st February, 2006, gain arising thereon is amortised over the tenure
 of the related receivables and loss, if any, is charged to Profit and
 Loss Account during the year in which sale is effected.
 
 c) Upfront income (net) received is recognised upon execution of the
 respective contracts.
 
 d) Income from dividend is accounted for on receipt basis.
 
 e) Interest on Loans, Margins, Fixed Deposits, etc. are recognised on a
 time proportion basis taking into account the amount outstanding and
 the rate applicable.
 
 f) Income from power generation is recognised as per the terms of the
 relevant Power Purchase Agreements with the respective parties.
 
 g) All other items of income are accounted for on accrual basis.
 
 h) The Company follows a more stringent policy on non-performing assets
 classification and provisioning than the guidelines prescribed by the
 Reserve Bank of India for compliance by Non-Banking Financial
 (Non-Deposit Accepting or Holding) Companies (NBFC-ND). Accordingly,
 all contracts with 180 days past dues other than NPAs acquired are
 treated as loss assets and written off. Any subsequent recoveries out
 of such contracts is treated as income for the year during which the
 same is received.
 
 i) The Company makes provision of 0.25% on standard assets in
 accordance with RBI guidelines issued on 17th January, 2011.
 
 iv) Prudential Norms
 
 Subject to Para 1 (iii) (h) above, the Company has followed the
 Prudential Norms issued by Reserve Bank of India, as applicable, and
 revenue / assets have been represented (considering adjustments /
 write-off / net-off, as applicable) keeping in line therewith and
 management prudence.
 
 v) Fixed Assets
 
 a) Fixed Assets are stated at cost less depreciation and grants
 received against these assets, if any.
 
 b) Capital work-in-progress is stated at cost and includes advances
 given for acquisition of assets.
 
 c) Intangible Assets are stated at cost of acquisition less accumulated
 amortisation.
 
 vi) Depreciation and Amortisation
 
 Depreciation on Fixed Assets for own use and on Operating Lease has
 been provided on Straight Line Method on book value at the applicable
 rates and in the manner specified in Schedule-XIV to the Companies Act,
 1956. Depreciation on commercial vehicles given on operating lease is
 provided on Straight Line Method at rates based on economic life of the
 assets. Intangible Assets are amortised over the assets estimated
 useful life not exceeding six years.
 
 vii) Stock-in-Trade
 
 Stock-in-Trade comprises of real estate property held for sale and is
 valued at lower of cost or net realisable value.
 
 viii) Transactions in Foreign Currencies
 
 In respect of transactions covered by Forward Foreign Exchange
 Contract, the difference between the forward rate and exchange rate at
 the inception of contract is recognised as income or expense over the
 life of the contract.
 
 ix) Grants
 
 Grants, if any, received against specific assets are deducted from the
 gross value of assets concerned in arriving at its book value and
 grants related to revenue are credited to the related expenditure.
 
 x) Investments
 
 a) Investments that are intended to be held for more than a year, from
 the date of acquisition, are classified as long term investments and
 are carried at cost. However, provision for diminution in value of
 investments is made to recognise a decline, other than temporary.
 
 b) Investments other than long term investments are valued at lower of
 cost and fair value of each share individually.
 
 xi) Employee Benefits
 
 a) Short term employee benefits are recognised as expense at the
 undiscounted amount in the profit and loss account of the year in which
 the related service is rendered.
 
 b) Post employment and other long term employee benefits are recognised
 as expense in the profit and loss account for the year in which the
 employees have rendered services. The expenses are recognised at the
 present value of the amounts payable determined using the actuarial
 valuation techniques at the end of each financial year. Actuarial gains
 or losses in respect of post employment and other long term benefits
 are charged to the profit and loss account.
 
 xii) Taxes on Income
 
 Current tax is determined as the amount of tax payable in respect of
 taxable income for the year. Deferred tax is recognised, subject to
 consideration of prudence, on timing differences, being the difference
 between taxable income and accounting income that originate in one
 period and are capable of reversal in subsequent periods. Deferred tax
 assets arising on account of unabsorbed depreciation or carry forward
 of tax losses are recognised only to the extent that there is virtual
 certainty supported by convincing evidence that sufficient future
 taxable income will be available against which deferred tax assets can
 be realised.
 
 xiii) Impairment of Fixed Assets
 
 An asset is treated as impaired when the carrying cost of assets
 exceeds its recoverable value. An impairment loss is charged to the
 Profit and Loss Account in the year in which an asset is identified as
 impaired. The impairment loss recognised in prior accounting periods is
 reversed if there has been a change in estimate of recoverable amount.
 
 xiv) Provisions and Contingent Liabilities
 
 Provisions are recognised in accounts in respect of present probable
 obligations, the amount of which can be reliably estimated.
 
 Contingent liabilities are disclosed in respect of possible obligations
 that arise from past events but their existence is confirmed only by
 occurrence or non-occurrence of one or more uncertain future events not
 wholly within the control of the Company.