a.  Change in accounting policy
 
 Presentation and disclosure of financial statements
 
 During the year ended March 31, 2012, the 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 recognition and measurement
 principles followed for preparation of financial statements. However,
 it has significant impact on presentation and disclosures made in the
 financial statements. The company has also reclassified the figures
 for the previous year in accordance with the requirements applicable in
 the current year. [Refer note 36]
 
 b.  Current / Non-current classification of assets / liabilities
 
 Pursuant to applicability of revised Schedule VI on presentation of
 financial statements for the financial year ended March 31, 2012; the
 Company has classified all its assets / liabilities into current /
 non-current portion based on the time frame of 12 months from the date
 of financial statements. Accordingly, assets/liabilities expected to be
 realised /settled within 12 months from the date of financial
 Statements are classified as current and other assets/ liabilities are
 classifies as noncurrent.
 
 c.  Use of estimates
 
 The preparation of financial statements in conformity with Indian GAAP
 requires the management to make estimates and assumptions that affect
 the reported amounts of revenues, expenses, assets and liabilities and
 the disclosure of contingent liabilities, at the date of the financial
 statements and results of operations during the reporting year end.
 Although these estimates are based on the management''s best knowledge
 of current events and actions, actual results could differ from these
 estimates. Any revision to the accounting estimates are recognized in
 current and future years.
 
 d.  Tangible fixed assets
 
 Fixed assets, are stated at cost, less accumulated depreciation and
 accumulated impairment losses, if any. The cost comprises of purchase
 price and directly attributable cost for bringing the asset to its
 working condition for the intended use.
 
 Any trade discounts and rebates are deducted in arriving at the purchase
 price.
 
 Subsequent expenditure related to an item of fixed asset is added to
 its book value only if it increases the future benefits from the
 existing asset beyond its previously assessed standard of performance.
 All other expenses on existing fixed assets, including day to day
 repair and maintenance expenditure and cost of replacing parts, are
 charged to the statement of profit and loss for the period during which
 such expenditure is incurred.
 
 Gains or losses arising from derecognition of fixed assets are measured
 as the difference between the net disposal proceeds and the carrying
 amount of the asset and are recognized in the statement of profit or
 loss when the asset is derecognized.
 
 e.  Intangible fixed assets
 
 Intangible fixed assets are stated at cost less accumulated
 amortization and impairment losses, if any. Cost comprises the purchase
 price and any attributable cost of bringing the asset to its working
 condition for its intended use.
 
 f.  Depreciation on tangible fixed assets
 
 Depreciation on fixed assets is provided on Straight Line Method (SLM)
 by using the rates arrived at based on the useful lives estimated by
 the management, which are greater than or equal to the rates prescribed
 under the Schedule XIV to the Companies Act, 1956.
 
 Leasehold improvements are amortized on SLM over the primary period of
 lease subject to a maximum of 60 months. All fixed assets individually
 costing Rs 5,000 or less are fully depreciated in the year of
 installation. Depreciation on assets acquired /sold during the year is
 recognized on a prorata basis in the statement of profit and loss till
 the date of sale or from the date of acquisition.
 
 g.  Depreciation on intangible assets
 
 Amortization is provided on Straight Line Method (SLM), which reflects
 the management''s estimate of the useful life of the intangible asset.
 The company has used the following rate to, provide depreciation on the
 intangible assets.
 
 Amortization on assets acquired/sold during the year is recognized on
 prorate basis in the statement of profit and loss till the date of
 acquisition/sale.
 
 h.  Impairment of assets
 
 The company assesses at each balance sheet date if there is an
 indication of impairment of any asset. If any indication exists, the
 company estimates the recoverable amount of the asset. The recoverable
 amount of an asset is greater of net selling price and value in use of
 the asset. Where the carrying amount of an asset is more than its
 recoverable amount, the asset is considered impaired and is written
 down to it''s recoverable amount.. The value in use is the estimated
 future cash flows discounted to their present value at pre-tax discount
 rate which reflects current market assessment of the time value of
 money and risk specific to the asset.
 
 After impairment, depreciation is provided on the revised carrying
 amount of the asset over its remaining useful life.
 
 An assessment is made at each Balance Sheet date about existence or
 decrease of previously recognized impairment losses.  If such
 indication exists, the company estimates the asset''s recoverable
 amount. A previously recognized impairment loss is increased or
 reversed depending on the changes in the 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.
 
 i.  Capital advance
 
 Capital advances are advances given for procurement of fixed assets.
 Company does not expect to realize them in cash and over a period of
 time these advances get converted into fixed assets which are
 non-current by nature. Therefore irrespective of when the fixed assets
 are expected to be received such advances are disclosed under
 long-term loans and advances.
 
 j. Borrowing costs
 
 Borrowing cost includes interest and exchange differences arising from
 foreign currency borrowings to the extent they are regarded as an
 adjustment to the interest cost. Ancillary and other borrowing costs
 are charged to statement of profit & loss in the year in which they are
 incurred.
 
 k. Investments
 
 Investments intended to be held for not more than one year from the
 date on which such investments are made, are classified as current
 investments. All other investments are classified as long-term
 investments.
 
 Current investments are carried in the financial statements 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 recognize a decline, other than temporary
 in the value of such investments.
 
 On disposal of an investment, the difference between its carrying
 amount and net disposal proceeds is charged or credited to the
 statement of profit and loss.
 
 l. Provision/write off of assets
 
 Nonperforming loans are written off / provided for, as per estimates
 of management, subject to the minimum provision required as per Non-
 Banking Financial (Deposit Accepting or Holding) Companies Prudential
 Norms (Reserve Bank) Directions, 2007.
 
 Provision on standard asset is made as required under Reserve Bank of
 India (RBI) notification No. DNBS.222/CGM (US- 2011) dated January
 17,2011.
 
 m. Loans
 
 Loans are stated at the amount advanced including finance charges
 accrued and expenses recoverable, as reduced by the amounts received
 up to the date of balance sheet and loans securitized.
 
 n. Leases
 
 Where the Company is the lessor
 
 Assets given on operating leases are included in fixed assets. Lease
 income is recognized in the statement of profit and loss on a
 straight-line basis over the lease term. Costs, including depreciation
 are recognized as an expense in the statement of profit and loss.
 Initial direct costs such as legal costs, brokerage costs, etc. are
 recognized immediately in the statement of profit and loss.
 
 Where the Company is the lessee
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased term, are classified as
 operating leases. Operating lease payments are recognized as an expense
 in the statement of profit and loss on a straight- line basis over the
 lease term.
 
 o. 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. The revenue recognisation are as under:
 
 (i) Income from financing activities is recognized on the basis of
 internal rate of return.
 
 (ii) Additional finance charges/additional interest are treated to
 accrue on realization due to uncertainty of its realization.
 
 (iii) Gain arising on securitization/direct assignment of assets is
 recognized over the tenure of agreements as per guideline on
 securitization of standard assets issued by RBI. Loss or expenditure in
 respect of securitization /assignment, if any, is recognized upfront.
 
 (iv) The prudential norms for income recognition prescribed under
 Non-Banking Financial (Deposit Accepting or Holding) Companies
 Prudential Norms (Reserve Bank) Directions 2007 are followed.
 
 (v) Income from services is recognized as per the terms of the contract
 on accrual basis.
 
 (vi) Interest Income on deposit accounts with banks is recognized on a
 time proportion basis taking into account the amount outstanding and
 the rate applicable.
 
 (vii) Dividend is recognized as income when right to receive payment is
 established by the date of balance sheet.
 
 (viii) Profit/loss on sale of investments is recognized at the time of
 actual sale/ redemption.
 
 p. Foreign currency translation
 
 Foreign currency transactions and balances
 
 Initial recognition: Foreign currency transactions are recorded in
 Indian rupee, by applying to the foreign currency amount the exchange
 rate between the Indian rupee and the foreign currency at the date of
 the transaction.
 
 Conversion : Foreign currency monetary items are retranslated to Indian
 rupees by using the exchange rate prevailing at the Balance Sheet date.
 
 Exchange differences: All exchange differences are dealt with in the
 statement of profit and loss.
 
 q. Income taxes
 
 Tax expense comprises of current tax and deferred tax. Current income
 tax is measured at the amount expected to be paid to the tax
 authorities in accordance with the Indian Income Tax Act, 1961.
 Deferred income taxes reflects 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. Deferred tax assets
 are recognized only to the extent there is reasonable certainty that
 sufficient future taxable income will be available against which such
 deferred tax assets can be realised. in situations where the Company has
 unabsorbed depreciation or carry forward tax losses, all deferred tax
 assets are recognized only if there is virtual certainty supported by
 convincing evidence that they can be realized against future taxable
 profits.
 
 The carrying cost of the 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 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
 realized. Any such write down is reversed to the extent it becomes
 reasonably certain or virtually certain, as the case may be, that
 sufficient future taxable income will be available.
 
 The un-recognized deferred tax assets are re-assessed by the company at
 each balance sheet date and are recognized to the extent 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 realized.
 
 r. Segment reporting
 
 The company prepares its segment information in conformity with the
 accounting policies adopted for preparing and presenting the financial
 statements of the company as a whole. The segments are identified based
 on the nature of product & market served. The income /expenses which
 are not allocated to any reportable segments are reported as un
 allocable segment.
 
 s. Employee stock compensation cost
 
 The measurement and disclosure of the employee share based payment
 plans is done in accordance with the 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 Chartered Accountants of India (ICAI).The company measures
 cost relating to employees stock option by intrinsic value method.
 Compensation expenses is amortized on straight line method over the
 period of vesting of options.
 
 t. Retirement and other employee benefits Provident fund
 
 All the employees of the company are entitled to receive benefits under
 the Provident Fund, a defined contribution plan in which both the
 employee and the company contribute monthly at a stipulated rate. The
 company has no liability for future Provident Fund benefits other than
 its annual contribution and recognizes such contributions as an expense
 in the year it is incurred.
 
 Gratuity
 
 The company provides for gratuity, a defined benefit retirement plan
 covering all employees. The plan provides for lump sum payments to
 employees upon death while in employment or on separation from
 employment after serving for the stipulated year mentioned under ''The
 Payment of Gratuity Act, 1972''. The Company accounts for liability of
 future gratuity benefits based on an external actuarial valuation on
 projected unit credit method carried out for assessing liability as at
 the reporting date.
 
 Leave benefits
 
 Accumulated leave, which is expected to be utilized within the next
 twelve months, is treated as short-term employee benefit.  The Company
 measures the expected cost of such absences as the additional amount
 that it expects to pay as a result of the unused entitlement that has
 accumulated at the reporting date.
 
 The Company treats accumulated leave expected to be carried forward
 beyond twelve months, as long-term employee benefit for measurement
 purposes. Such long-term compensated absences are provided for based on
 the actuarial valuation using the projected unit credit method at the
 reporting date. Actuarial gains/losses are immediately taken to the
 statement of profit and loss and are not deferred.
 
 u.  Earnings per share(EPS)
 
 Basic earnings per share is calculated by dividing the net profit or
 loss for the year attributable to equity shareholders (after deducting
 attributable taxes) by the weighted average number of equity shares
 outstanding during the year.
 
 Forth purpose of calculating diluted earnings per share, the net
 profit or loss for the year 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.
 
 v. Expenses on deposits / debentures
 
 Expenses for private placement of debentures/subordinated debt
 bonds/deposits are charged to statement of profit and loss in the year
 in which they are incurred.
 
 Expenses incurred on public issue of debentures other than brokerage are
 charged off on straight line basis over the weighted average tenor of
 the underlying debentures. The brokerage incurred on issue of debenture
 is treated as expenditure in the year in which it is incurred.
 
 w. Provisions
 
 A provision is recognized when the company has a present obligation as
 a result of past event. It is probable that an outflow of resources
 will be required to settle the obligation and a reliable estimate can
 be made of the amount of the obligation. Provisions are not discounted
 to their present value and are determined based on the best 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
 best estimates.
 
 x. Cash and cash equivalents
 
 Cash and cash equivalents are held for the purpose of meeting short-term
 cash commitments. Cash equivalents are short-term highly liquid
 investments that are readily convertible into known amounts of cash and
 which are subject to an insignificant risk of changes in value. Cash
 and cash equivalents include cash-in-hand, cash at bank, cheque in
 hand, remittances in transit and short-term investments with an original
 maturity period of three months or less.
 
 y. Derivative instruments
 
 In accordance with the ICAI guidelines and on principle of prudence,
 derivative contracts, other than foreign currency forward contracts
 covered under AS 11, are marked to market on a portfolio basis, and the
 net loss, if any, after considering the offsetting effect of gain on
 the underlying hedged item, is charged to the statement of profit and
 loss. However net gain, if any, after considering the offsetting effect
 of loss on the underlying hedged item, is ignored.
 
 z. Contingent liabilities
 
 A contingent liability is a possible obligation that arises from past
 events whose existence will be confirmed by the occurrence or
 non-occurrence of one or more uncertain future events, which are beyond
 the control of the company. A contingent liability also includes a
 present obligation that is not recognized because it is not probable
 that an outflow of resources will be required to settle the obligation.
 A contingent liability also arises where, a liability cannot be
 measured reliably. The company does not recognize a contingent
 liability in the accounts but discloses its existence in the financial
 statements.