1.1 Change in Accounting Policy:
 
 Presentation and disclosure of Financial Statement
 
 During the year ended 31sl March, 2012 revised Schedule VI notified
 under the Companies Act, 1956 has become applicable to the Company for
 preparation and presentation of its financial statements. The adoption
 of revised Schedule VI does not impact recognisation and measurement
 principle followed for preparation of financial statements. However, it
 has significant impact on presentation and disclosure made in the
 financial statements. The Company has also re-classified the previous
 year figures in accordance with the requirement applicable in the
 current year.
 
 1.2 Accounting Convention:
 
 The Company prepares its financial statements in accordance with
 Generally Accepted Accounting Principles (GAAP) under historical cost
 convention on accrual basis (except dividend income) and also in
 accordance with requirements of the Companies Act, 1956. It follows the
 directions prescribed by Resen/e Bank of India for Non-Banking
 Financial Companies and as per the applicable accounting standards
 issued by the Institute of Chartered Accountants of India (ICAI).
 
 1.3 Fixed Assets:
 
 Fixed Assets are stated at historical cost less accumulated
 depreciation and impairments, if any. Direct costs are capitalized
 until fixed assets are ready for use.
 
 1.4 Depreciation:
 
 Depreciation on Fixed Assets both owned & leased is provided on
 Straight Line Method at the rates given in Schedule XIV of the
 Companies Act, 1956. Full depreciation is provided on the individual
 low cost»assets (below Rs. 5000).
 
 1.5 Current Assets:
 
 i.  Stock of shares & securities are stated at cost or net realizable
 value whichever is lower.
 
 ii.  Valuation of repossessed assets:
 
 Assets when repossessed are treated as Stock of Vehicles repossessed.
 Such stock is revalued as on year end and are stated at cost or net
 realizable value whichever is lower, and the difference between such
 valuation and the book value of the asset, if a loss, is written-off.
 
 1.6 Revenue Recognition: ''
 
 i.  Income from financing transactions is accounted for/on the basis of
 Internal Rate of Return method, as per Accounting Standard-19.
 
 ii.  Incomes from dividend are accounted for on receipt basis.
 
 iii. All other income is accounted for on accrual basis.
 
 1.7 Foreign Currency Transactions:
 
 i.  Foreign Exchange Transactions in respect of purchase and sale of
 Travellers Cheques and currencies are recorded at the exchange rate
 prevailing at the time of transaction.
 
 ii.  Closing Stock of foreign currency notes & coins and Travellers
 Cheques are valued at cost price or market price whichever is lower.
 
 1.8 Retirement Benefits:
 
 In accordance with the Payment of Gratuity Act, 1972, the Company
 provides for gratuity, a defined benefit retirement plan (''the Gratuity
 Plan'') covering eligible employees. The Gratuity Plan provides a
 lump-sum payment to vested employees at retirement, death,
 incapacitation or termination of employment, of an amount based on the
 respective employee''s salary and the tenure of employment with the
 Company.
 
 Liabilities with regard to the Gratuity Plan are determined by
 actuarial valuation at each Balance Sheet date using the projected unit
 credit method.
 
 1.9 The Statutory maintenance of minimum percentage of liquid assets is
 based on deposits liabilities as per directions given by Reserve Bank
 of India.
 
 1.10 Non-Performing Assets: Identification of Non-Performing Assets
 (NPAs) has been done as per the guidelines of Non- Banking Financial
 Companies (Prudential Norms) Directions, 1998 prescribed by the Reserve
 Bank of India. Company has written off the amount as per the guideline
 of RBI.