(a) Basis of preparation
 
 The financial statements have been prepared in conformity with
 generally accepted accounting principles to comply in all material
 respects with the notifi ed Accounting Standards (AS) under Companies
 Accounting Standard Rules, 2006, as amended, the relevant provisions of
 the Companies Act, 1956 (the Act) and the guidelines issued by the
 Reserve Bank of India (RBI) as applicable to a Non Banking Finance
 Company (NBFC). The financial statements have been prepared under
 the historical cost convention on an accrual basis. The accounting
 policies have been consistently applied by the Company and are
 consistent with those used in the previous year.
 
 (b) 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 year end. Although these estimates are based upon
 managements best knowledge of current events and actions, actual
 results could differ from these estimates. Any revisions to the
 accounting estimates are recognised prospectively in the current and
 future years.
 
 (c) Fixed Assets, Depreciation/Amortisation and Impairment of assets
 
 Fixed Assets
 
 Fixed assets are stated at cost less accumulated
 depreciation/amortisation 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. Borrowing costs relating to
 acquisition of fi xed assets which takes substantial period of time to
 get ready for its intended use are also included to the extent they
 relate to the year till such assets are ready to be put to use.
 
 Windmills are amortised over the remaining life of the asset, the life
 of windmills are estimated to be 10 years
 
 Leasehold improvement is amortised over the lease term subject to a
 maximum of 60 months.
 
 All fi xed assets individually costing Rs. 5,000 or less are fully
 depreciated in the year of installation.
 
 Depreciation on assets sold during the year is recognised on a pro-rata
 basis to the Profit and loss account till the date of sale.
 
 Impairment of assets
 
 The carrying amount of assets is reviewed at each balance sheet date if
 there is any indication of impairment based on internal/external
 factors. An impairment loss is recognised 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
 to their present value using a pre-tax discount rate that reflects
 current market assessments of the time value of money and risks specifi
 c to the 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.
 
 (d) Investments
 
 Investments intended to be held for not more than a year are classifi
 ed as current investments. All other investments are classifi ed 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.
 
 (e) Provisioning / Write-off of assets
 
 Non performing loans are written off / provided for, as per management
 estimates, subject to the minimum provision required as per Non-
 Banking Financial (Deposit Accepting or Holding) Companies Prudential
 Norms (Reserve Bank) Directions, 2007. Delinquencies on assets
 securitised are provided for based on management estimates of the
 historical data.
 
 Provision on standard assets is made as per the notifi cation
 DNBS.PD.CC.No.207/ 03.02.002 /2010-11 issued by Reserve Bank of India.
 
 (f) Hypothecation loans
 
 Hypothecation loans are stated at the amount advanced including fi
 nance charges accrued and expenses recoverable, as reduced by the
 amounts received up to the balance sheet date and loans securitised.
 
 (g) Leases
 
 Where the Company is the lessor
 
 Assets given on operating leases are included in fi xed assets. Lease
 income is recognised in the Profit and Loss Account on a straight-line
 basis over the lease term. Costs, including depreciation are recognised
 as an expense in the Profit and Loss Account. Initial direct costs
 such as legal costs, brokerage costs, etc. are recognised immediately
 in the Profit and Loss Account.
 
 Where the Company is the lessee
 
 Leases where the lessor effectively retains substantially all the risks
 and benefi ts of ownership of the leased term, are classifi ed as
 operating leases. Operating lease payments are recognised as an expense
 in the Profit and Loss account on a straight-line basis over the lease
 term.
 
 (h) Foreign currency translation
 
 Initial recognition
 
 Transactions in foreign currency entered into during the year are
 recorded at the exchange rates prevailing on the date of the
 transaction.
 
 Conversion
 
 Monetary assets and liabilities denominated in foreign currency are
 translated in to Rupees at exchange rate prevailing on the date of the
 Balance Sheet.
 
 Exchange differences
 
 All exchange differences are dealt with in the Profit and loss
 account.
 
 (i) Revenue recognition
 
 Revenue is recognised to the extent that it is probable that the
 economic benefi ts will flow to the Company and the revenue can be
 reliably measured.
 
 i.  Income from financing activities is recognised on the basis of
 internal rate of return.
 
 ii. Income recognised and remaining unrealised after installments
 become overdue for six months or more in case of secured/unsecured
 loans and twelve months or more in case of financial lease
 transactions are reversed and are accounted as income when these are
 actually realised.
 
 iii. Additional finance charges / additional interest are treated to
 accrue only on realisation, due to uncertainty of realisation and are
 accounted accordingly.
 
 iv. Gains arising on securitisation/direct assignment of assets is
 recognised over the tenure of agreements as per guideline on
 securitisation of standard assets issued by RBI, loss, if any is
 recognised upfront.
 
 v.  Income from services is recognised as per the terms of the contract
 on an accrual basis.
 
 vi. Interest income on fi xed deposits/margin money, call money (CBLO),
 certifi cate of deposits, pass through certifi cates, subordinate debts
 and treasury bills is recognised on a time proportion basis taking into
 account the amount outstanding and the rate applicable.
 
 vii.  Dividend is recognised as income when right to receive payment is
 established by the date of balance sheet.
 
 viii.  Profit/loss on the sale of investments is recognized at the
 time of actual sale/redemption.
 
 ix. Income from operating lease is recognized as rentals, as accrued on
 straight line basis over the period of the lease.
 
 (j) Employee benefi ts
 
 Provident Fund
 
 All the employees of the Company are entitled to receive benefi ts
 under the Provident Fund, a defi ned 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 benefi ts other
 than its annual contribution and recognises such contributions as an
 expense in the year it is incurred.
 
 Gratuity
 
 The Company provides for the gratuity, a defi ned benefi t 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 benefi ts based on an external actuarial valuation on
 projected unit credit method carried out for assessing liability as at
 the reporting date.
 
 Leave Encashment
 
 Short term compensated absences are provided for based on estimates.
 Long term compensated absences are provided for based on actuarial
 valuation. The actuarial valuation is done as per projected unit credit
 method as at the reporting date.
 
 Actuarial gains/losses are immediately taken to Profit and loss
 account and are not deferred.
 
 (k) Income tax
 
 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 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 situations where the
 Company has unabsorbed depreciation or carry forward tax losses, all
 deferred tax assets are recognised only if there is virtual certainty
 supported by convincing evidence that they can be realised against
 future taxable Profits.
 
 The un-recognised deferred tax assets are re-assessed by the Company at
 each balance sheet date and are recognised 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 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 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 sufficient future taxable income will be available.
 
 (l) Segment reporting policies
 
 Identification of segments:
 
 The Companys operating businesses are organised and managed separately
 according to the nature of products and services provided, with each
 segment representing a strategic business unit that offers different
 products and serves different markets. The analysis of geographical
 segments is based on the areas in which major operating divisions of
 the Company operate.
 
 Unallocated items:
 
 Unallocated items include income and expenses which are not allocated
 to any reportable business segment.
 
 Segment Policies :
 
 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.
 
 (m) Earnings per share
 
 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.
 
 For the 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 year are
 adjusted for the effects of all dilutive potential equity shares.
 
 (n) Provisions
 
 A provision is recognised when the company has a present obligation as
 a result of past event; it is probable that 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 its present
 value and are determined based on 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.
 
 (o) Cash and cash equivalents
 
 Cash and cash equivalents in the cash flow statement comprise cash at
 bank and in hand, cheques on hand, remittances in transit and short
 term investments with an original maturity of three months or less.
 
 (p) Equity shares and Debentures issue expenses
 
 Issue expenses incurred on issue of equity shares are charged on a
 straight line basis over a period of 10 years.
 
 Public issue expenses, other than the brokerage, incurred on issue of
 debentures are charged off on a straight line basis over the weighted
 average tenor of underlying debentures. The brokerage incurred on issue
 of debentures is treated as expenditure in the year in which it is
 incurred.
 
 (q) Ancillary cost of borrowings
 
 Ancillary cost of borrowings are charged to Profit & Loss account in
 the year in which they are incurred.
 
 (r) Employee stock compensation costs
 
 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 ICAI. The
 Company measures compensation cost relating to employee stock options
 using the intrinsic value method. Compensation expense is amortised
 over the vesting period of the option on a straight line basis.