Accounting Policies of Modern Shares & Stock Brokers Ltd. Company

Mar 31, 2024

Note 2 Summary of significant accounting policies

(i) Statement of Compliance

“The Financial Statements of the Company
have been prepared in accordance with Indian
Accounting Standards (Ind AS) as per Companies
(Indian Accounting Standards) Rules 2015 as
amended and notified under Section 133 of the
Companies Act, 2013 (“the act”) in conformity
other accounting principles generally accepted
in India and issued by the Institute of Chartered
Accountants of India.

In addition, the guidance note/announcements
issued by Institute of Chartered Accountants
of India are also applied along with compliance
with the other statutory promulgations require a
different treatment.

The financial statements for the year ended
March 31, 2023 of the Company is prepared in
compliance with Ind AS.”

(ii) Basis of preparation

“The financial statements have been prepared
on the historical cost basis except for certain
financial assets and liabilities that are measured
at fair values at the end of each reporting period.

Fair value measurements under Ind AS are
categorised into Level 1,2, or 3 based on the degree
to which the inputs to the fair value measurements
are observable and the significance of the inputs
to the fair value measurement in its entirety, which
are described as follows:

• Level 1 inputs are quoted prices (unadjusted)
in active markets for identical assets or
liabilities that the Company can access at
reporting date.

• Level 2 inputs are inputs, other than quoted
prices included within level 1, that are
observable for the asset or liability, either
directly or indirectly; and

• Level 3 inputs are unobservable inputs for
the valuation of assets or liabilities”

(iii) Presentation of financial statements:

“The Balance Sheet and the Statement of Profit
and Loss are prepared and presented in the
format prescribed in the Schedule III to the
Companies Act, 2013 (“the Act”). The Statement
of Cash Flows has been prepared and presented
as per the requirements of Ind AS 7 “Statement
of Cash Flows”. The disclosure requirements
with respect to items in the Balance Sheet and
Statement of Profit and Loss, as prescribed in
the Schedule III to the Act, are presented by way
of notes forming part of the financial statements
along with the other notes required to be disclosed
under the notified accounting Standards and
the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015.

Amounts in the financial statements are presented
in absolute Indian Rupees rounded off to two
decimal places as permitted by Schedule III to
the Companies Act, 2013. Per share data are
presented in Indian Rupee to two decimal places.”

(iv) Revenue Recognition:

a) Dividend and Interest Income

“Dividends are recognised in Statement of
profit and Loss only when the right to receive
payment is established, it is probable that
the economic benefits associated with the
dividend will flow the Company and the
Amount of the dividend can be measured
reliably.

Interest income from investments is
recognised when it is certain that the
economic benefits will flow to the Company
and the amount of income can be measured
reliably. Interest income is accrued on a
time basis, by reference to the principal
outstanding and at the effective interest rate
applicable.”

b) Fees and Commission Income

Fee based income are recognised when
they become measurable and when it is
probable to expect their ultimate collection.
Commission and brokerage income
earned on secondary market operations
are accounted on trade dates. Brokerage
on mutual fund and IPO syndication are
accounted on receipt basis.

c) Net gain or fair value change

Any differences between the fair values
of the financial assets classified as fair
value through the profit or loss, held by
the Company on the balance sheet date is
recognised as an unrealised gain/loss in
the statement of profit and loss. In cases
there is a net gain in aggregate, the same
is recognised in “Net gains or fair value
changes” under revenue from operations
and if there is a net loss the same is disclosed
“Expenses”, in the statement of profit and
loss.

(v) Property Plant and Equipment

PPE is recognised when it is probable that future
economic benefits associated with the item
will flow to the Company and the cost of the
item can be measured reliably. PPE is stated at
original cost net of tax/duty credits availed, if any,
less accumulated depreciation and cumulative
impairment, if any. Cost includes all direct cost
related to the acquisition of PPE and, for qualifying
assets, borrowing costs capitalised in accordance
with the Company’s accounting policy.

An item of Property, Plant and Equipment is
derecognised on disposal or when no future
economic benefits are expected from its use or
disposal. The gain or loss arising on derecognition
is recognised in the Statement of Profit and Loss.

“Depreciation is provided on a written down
value basis from the date the asset is ready
for its intended use or the date it is put to use,
whichever is earlier. In respect of assets sold,
depreciation is provided upto the date of disposal.
As per the requirement of Schedule II of the
Companies Act, 2013, the Company has
evaluated the useful lives of the respective fixed

assets which are as per the provisions of Part C
of the Schedule II of the Act for calculating the
depreciation”

The estimates of useful lives of tangible assets are
as follows :

Leasehold improvement & premises are amortized
on a straight line basis over the estimated useful
lives of the assets or the period of lease, whichever
is shorter.

vi) Intangible Assets

“Intangible assets are recognised when it is
probable that the future economic benefits
that are attributable to the asset will flow to the
enterprise and the cost of the asset can be
measured reliably. Intangible assets are stated at
original cost net of tax/duty credits availed, if any,
less accumulated amortisation and cumulative
impairment. Direct expenses and administrative
and other general overhead expenses that are
specifically attributable to acquisition of intangible
assets are allocated and capitalised as a part of
the cost of the intangible assets.

Intangible assets are amortised on straight line
basis over the estimated useful life. The method
of amortisation and useful life are reviewed at the
end of each accounting year with the effect of any
changes in the estimate being accounted for on a
prospective basis.

An intangible asset is derecognised on disposal,
or when no future economic benefits are
expected from use or disposal. Gains or losses
arising from derecognition of an intangible asset
are recognised in profit or loss when the asset is
derecognised”

(vii) Impairment of tangible and intangible assets

“As at the end of each accounting year, the
Company reviews the carrying amounts of its PPE
and intangible assets to determine whether there
is any indication that those assets have suffered
an impairment loss. If such indication exists, the
PPE, investment property and intangible assets
are tested for impairment so as to determine
the impairment loss, if any. Goodwill and the
intangible assets with indefinite life are tested for
impairment each year.

Impairment loss is recognised when the carrying
amount of an asset exceeds its recoverable
amount. Recoverable amount is determined:

(i) in the case of an individual asset, at the higher
of the net selling price and the value in use; and

(ii) in the case of a cash generating unit (the
smallest identifiable Company of assets that
generates independent cash flows), at the higher
of the cash generating unit’s net selling price and
the value in use.

Recoverable amount is the higher of fair value
less costs of disposal and value in use. In
assessing value in use, the estimated future
cash flows are discounted to their present value
using a pretax discount rate that reflects current
market assessments of the time value of money
and the risks specific to the asset for which the
estimates of future cash flows have not been
adjusted. If recoverable amount of an asset (or
cash generating unit) is estimated to be less than
its carrying amount, such deficit is recognised
immediately in the Statement of Profit and Loss
as impairment loss and the carrying amount of
the asset (or cash generating unit) is reduced
to its recoverable amount. For this purpose,
the impairment loss recognised in respect of a
cash generating unit is allocated first to reduce
the carrying amount of any goodwill allocated to
such cash generating unit and then to reduce the
carrying amount of the other assets of the cash
generating unit on a pro-rata basis.

When an impairment loss subsequently reverses,
the carrying amount of the asset (or cash
generating unit), except for allocated goodwill, is
increased to the revised estimate of its recoverable
amount.”

(viii) Employee benefits

a) Short-term employee benefits

Short-term employee benefits are expensed
as the related service is provided. A liability
is recognised for the amount expected
to be paid if the Company has a present
legal or constructive obligation to pay this
amount as a result of past service provided
by the employee and the obligation can be
estimated reliably.

b) Contribution to provident fund and ESIC

Company’s contribution paid/payable
during the year to provident fund and ESIC
is recognised in the Statement of profit and
loss.

c) Gratuity (Funded):

The Company’s liability towards gratuity
scheme is determined by independent
actuaries, using the projected unit credit
method. The present value of the defined
benefit obligation is determined by
discounting the estimated future cash
outflows by reference to market yields at the
end of the reporting period on government
bonds that have terms approximating to the
terms of the related obligation. Past services
are recognised at the earlier of the plan
amendment / curtailment and recognition
of related restructuring costs/ termination
benefits. The net interest cost is calculated
by applying the discount rate to the net
balance of the defined benefit obligation
and the fair value of plan assets. This cost is
included in employee benefit expense in the
Statement of profit and loss. Gratuity liability
is funded with Life Insurance Corporation of
India.

“Remeasurement gains/losses -
Remeasurement of defined benefit plans,
comprising of actuarial gains / losses,

return on plan assets excluding interest
income are recognised immediately in the
balance sheet with corresponding debit
or credit to Other Comprehensive Income
(OCI). Remeasurements are not reclassified
to Statement of profit and loss in the
subsequent period.

d) Superannuation fund

The Company makes contribution to
the Superannuation scheme, a defined
contribution scheme, administered by Life
Insurance Corporation of India, which are
charged to the Statement of profit and loss.
The Company has no obligation to the
scheme beyond its contributions.

e) Leave encashment / compensated
absences / sick leave -

The Company provides for the encashment/
availment of leave with pay subject to
certain rules. The employees are entitled to
accumulate leave subject to certain limits for
future encashment / availment. The liability
is provided based on the number of days of
unutilized leave at each balance sheet date
on the basis of an independent actuarial
valuation.

(ix) Leases

The determination of whether an agreement is, or
contains, a lease is based on the substance of the
agreement at the date of inception.

(i) Finance leases:

A. Leases where the Company has
substantially transferred all the risks
and rewards of ownership of the
related assets are classified as finance
leases. Assets under finance lease
are capitalised at the commencement
of the lease at the lower of the fair
value or the present value of minimum
lease payments and a liability is
created for an equivalent amount.
Each lease rental paid is allocated
between the liability and the interest
cost, so as to obtain a constant periodic
rate of interest on the outstanding
liability for each period.

B. Assets given under a finance lease
are recognised as a receivable at an
amount equal to the net investment in
the lease. Lease income is recognised
over the period of the lease so as to
yield a constant rate of return on the net
investment in the lease.

(ii) Operating leases:

The leases which are not classified as
finance lease are operating leases.

A. Lease rentals on assets under operating
lease are charged to the Statement of
Profit and Loss on a straight line basis
over the term of the relevant lease.

B. Assets leased out under operating
leases are continued to be shown under
the respective class of assets. Rental
income is recognised on a straight line
basis over the term of the relevant lease

(x) Financial instruments :

A financial instrument is any contract that gives
rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.

a) Recognition and initial measurement -

Financial assets and financial liabilities are
recognised when the Company becomes
a party to the contractual provisions of the
instruments. Financial assets and financial
liabilities are initially measured at fair
value. Transaction costs that are directly
attributable to the acquisition or issue of
financial assets and financial liabilities (other
than financial assets and financial liabilities
at FVTPL) are added to or deducted from
the fair value of the financial assets or
financial liabilities, as appropriate, on initial
recognition. Transaction costs directly
attributable to the acquisition of financial
assets or financial liabilities at FVTPL are
recognised immediately in Statement of
profit and loss.

b) Classification and Subsequent
measurement of financial assets

On initial recognition, a financial asset is
classified as measured at

- Amortised cost;

- FVOCI - debt instruments;

- FVOCI - equity instruments;

- FVTPL
Amortised cost -

Financial assets are subsequently measured
at amortised cost using the effective interest
rate (EIR) if these financial assets are held
within a business model whose objective
is to hold these assets in order to collect
contractual cash flows and the contractual
terms of the financial asset give rise on
specified dates to cash flows that are solely
payments of principal and interest on the
principal amount outstanding.

FVOCI - debt instruments -

The Company measures its debt instruments
at FVOCI when the instrument is held within
a business model, the objective of which is
achieved by both collecting contractual cash
flows and selling financial assets; and the
contractual terms of the financial asset meet
the SPPI test.

FVOCI - equity instruments -

The Company subsequently measures all
equity investments at fair value through profit
or loss, unless the Company’s management
has elected to classify irrevocably some
of its equity instruments at FVOCI, when
such instruments meet the definition
of Equity under Ind AS 32 Financial
Instruments and are not held for trading.
Financial assets are not reclassified
subsequent to their initial recognition, except
if and in the period the Company changes its
businessmodelformanagingfinancialassets.
All financial assets not classified as
measured at amortised cost or FVOCI
are measured at FVTPL. This includes all
derivative financial assets.

Subsequent measurement of financial
assets

Financial assets at amortised cost are
subsequently measured at amortised
cost using effective interest method. The
amortised cost is reduced by impairment
losses. Interest income, foreign exchange
gains and losses and impairment are
recognised in Statement of profit and loss.
Any gain and loss on derecognition is
recognised in Statement of profit and loss.

Debt investment at FVOCI are subsequently
measured at fair value. Interest income under
effective interest method, foreign exchange
gains and losses and impairment are
recognised in Statement of profit and loss.
Other net gains and losses are recognised
in OCI. On derecognition, gains and losses
accumulated in OCI are reclassified to
Statement of profit and loss.

For equity investments, the Company makes
an election on an instrument-by-instrument
basis to designate equity investments
as measured at FVOCI. These elected
investments are measured at fair value with
gains and losses arising from changes in fair
value recognised in other comprehensive
income and accumulated in the reserves.
The cumulative gain or loss is not reclassified
to Statement of profit and loss on disposal
of the investments. These investments in
equity are not held for trading. Instead, they
are held for strategic purpose. Dividend
income received on such equity investments
are recognised in Statement of profit and
loss.

Equity investments that are not designated
as measured at FVOCI are designated
as measured at FVTPL and subsequent
changes in fair value are recognised in
Statement of profit and loss.

Financial assets at FVTPL are subsequently
measured at fair value. Net gains and losses,
including any interest or dividend income,
are recognised in Statement of profit and
loss.

c) Financial liabilities and equity instruments

Classification as debt or equity -

Debt and equity instruments issued by the
Company are classified as either financial
liabilities or as equity in accordance with the
substance of the contractual arrangements
and the definitions of a financial liability and
an equity instrument.

Equity instruments -

An equity instrument is any contract that
evidences a residual interest in the assets of
an entity after deducting all of its liabilities.
Equity instruments issued by Company
are recognised at the proceeds received.
Transaction costs of an equity transaction
are recognised as a deduction from equity.

Financial liabilities -

Financial liabilities are classified as
measured at amortised cost or FVTPL. A
financial liability is classified as at FVTPL
if it is classified as held-fortrading or it is a
derivative or it is designated as such on initial
recognition. Other financial liabilities are
subsequently measured at amortised cost
using the effective interest method. Interest
expense and foreign exchange gains and
losses are recognised in Statement of profit
and loss. Any gain or loss on derecognition
is also recognised in Statement of profit and
loss.

d) Derecognition
Financial assets

The Company derecognises a financial asset
when the contractual rights to the cash flows
from the financial asset expire, or it transfers
the rights to receive the contractual cash
flows in a transaction in which substantially
all of the risks and rewards of ownership of
the financial asset are transferred or in which
the Company neither transfers nor retains
substantially all of the risks and rewards of
ownership and does not retain control of
the financial asset. If the Company enters
into transactions whereby it transfers assets

recognised on its balance sheet, but retains
either all or substantially all of the risks
and rewards of the transferred assets, the
transferred assets are not derecognised.

Financial liabilities

A financial liability is derecognised when
the obligation in respect of the liability
is discharged, cancelled or expires. The
difference between the carrying value of the
financial liability and the consideration paid
is recognised in Statement of profit and loss.

e) Offsetting

Financial assets and financial liabilities are
offset and the net amount presented in the
balance sheet when, and only when, the
Company currently has a legally enforceable
right to set off the amounts and it intends
either to settle them on a net basis or to
realise the asset and settle the liability
simultaneously.

f) Derivative financial instruments

Derivatives are initially recognised at fair
value at the date the contracts are entered
into and are subsequently remeasured
to their fair value at the end of each
reporting period. The resulting gain/loss is
recognised in Statement of profit and loss.

Derivatives embedded in non-derivative host
contracts are treated as separate derivatives
when their risks and characteristics are not
closely related to those of the host contracts
and the host contracts are not measured at
FVTPL.

g) Impairment of financial instruments

Equity instruments are not subject to
impairment under Ind AS 109.

The Company recognises lifetime expected
credit losses (ECL) when there has been
a significant increase in credit risk since
initial recognition and when the financial
instrument is credit impaired. If the credit risk
on the financial instrument has not increased
significantly since initial recognition, the

Company measures the loss allowance
for that financial instrument at an amount
equal to 12 month ECL. The assessment of
whether lifetime ECL should be recognised
is based on significant increases in the
likelihood or risk of a default occurring since
initial recognition. 12 month ECL represents
the portion of lifetime ECL that is expected
to result from default events on a financial
instrument that are possible within 12
months after the reporting date.

When determining whether credit risk of a
financial asset has increased significantly
since initial recognition and when estimating
expected credit losses, the Company
considers reasonable and supportable
information that is relevant and available
without undue cost or effort. This includes
both quantitative and qualitative information
and analysis, including on historical
experience and forward-looking information.

The expected credit losses on these financial
assets are estimated using a provision matrix
based on the Company’s historical credit
loss experience, adjusted for factors that are
specific to the debtors, general economic
conditions and an assessment of both the
current as well as the forecast direction of
conditions at the reporting date, including
time value of money where appropriate.
Lifetime ECL represents the expected credit
losses that will result from all possible default
events over the expected life of a financial
instrument.

Loss allowances for financial assets
measured at amortised cost are deducted
from the gross carrying amount of the
assets. For debt securities at FVOCI, the loss
allowance is recognised in OCI and carrying
amount of the financial asset is not reduced
in the balance sheet.

h) Write offs

The gross carrying amount of a financial
asset is written off when there is no realistic
prospect of further recovery. This is generally
the case when the Company determines that
the debtor/ borrower does not have assets

or sources of income that could generate
sufficient cash flows to repay the amounts
subject to the write-off. However, financial
assets that are written off could still be
subject to enforcement activities under the
Company’s recovery procedures, taking
into account legal advice where appropriate.
Any recoveries made are recognised in
Statement of profit and loss

xi) Cash and bank balances:

Cash and bank balances also include fixed
deposits, margin money deposits, earmarked
balances with banks and other bank balances
which have restrictions on repatriation. Short term
and liquid investments being subject to more
than insignificant risk of change in value, are not
included as part of cash and cash equivalents.

xii) Borrowing costs:

Borrowing costs net of any investment income
from the temporary investment of related
borrowings, that are attributable to the acquisition,
construction or production of a qualifying asset
are capitalised as part of cost of such asset till
such time the asset is ready for its intended use or
sale. A qualifying asset is an asset that necessarily
requires a substantial period of time to get ready
for its intended use or sale. All other borrowing
costs are recognised in profit or loss in the period
in which they are incurred.

(xiii) Taxation - Current and deferred tax:

Income tax expense comprises of current tax
and deferred tax. It is recognised in Statement of
profit and loss except to the extent that it relates
to an item recognised directly in equity or in other
comprehensive income.

A. Current tax :

Current tax comprises amount of tax payable
in respect of the taxable income or loss for
the year determined in accordance with
Income Tax Act, 1961 and any adjustment to
the tax payable or receivable in respect of
previous years. The Company’s current tax
is calculated using tax rates that have been
enacted or substantively enacted by the end
of the reporting period.

B. Deferred tax :

Deferred tax assets and liabilities are
recognized for the future tax consequences
of temporary differences between the
carrying values of assets and liabilities and
their respective tax bases. Deferred tax
liabilities and assets are measured at the tax
rates that are expected to apply in the period
in which the liability is settled or the asset
realised, based on tax rates (and tax laws)
that have been enacted or substantively
enacted by the end of the reporting period.
The measurement of deferred tax liabilities
and assets reflects the tax consequence
that would follow from the manner in which
the Company expects, at the end of the
reporting period, to recover or settle the
carrying amount of its assets and liabilities.

Deferred tax assets are recognized to the
extent that it is probable that future taxable
income will be available against which the
deductible temporary difference could
be utilized. Such deferred tax assets and
liabilities are not recognised if the temporary
difference arises from the initial recognition
of assets and liabilities in a transaction that
affects neither the taxable profit nor the
accounting profit. The carrying amount of
deferred tax assets is reviewed at the end
of each reporting period and reduced to
the extent that it is no longer probable that
sufficient taxable profits will be available to
allow all or part of the asset to be recovered.

---

Mar 31, 2015

1. Basis of preparation of financial statements:

The financial statements of the company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014 and guidelines issued by Securities and Exchange Board of India (SEBI). The financial statements have been prepared on accrual basis and under historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous years, except for the change in accounting policy explained below if any.

2. Use of Estimates:

The preparation of financial statements in confirmatory with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of Contingent Liabilities, at the end of the reporting period. Although these estimates are based on the Management's best knowledge of current events and actions, uncertainty about these assumptions, and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

3. Revenue Recognition:

Brokerage on equities/derivative transactions are accounted on trade date basis. Interest on Fixed deposits with banks and other services income are accounted on accrual basis where as dividend income and brokerage on mutual fund and IPO syndication are accounted on receipt basis.

4. Fixed Assets & Depreciation:

Fixed assets are stated at cost net of recoverable taxes, less accumulated depreciation. Cost comprises of cost of acquisition or construction including borrowing costs attributable for bringing the assets to their intended use.

Till the year ended 31 March 2014, Schedule XIV to the Companies Act, 1956, prescribed requirements concerning depreciation of fixed assets. From the current year, Schedule XIV has been replaced by Schedule II to the Companies Act, 2013. Unless stated otherwise, the impact mentioned for the current year is likely to hold good for future years also.

Depreciation on assets costing less than Rs 5,000/-

Till year ended 31 March 2014, to comply with the requirements of Schedule XIV to the Companies Act, 1956, the company was charging 100% depreciation on assets costing less than Rs 5,000/ - in the year of purchase. However, Schedule II to the Companies Act 2013, applicable from the current year, does not recognize such practice. Hence, to comply with the requirement of Schedule II to the Companies Act, 2013, the company has changed its accounting policy for depreciations of assets costing less than Rs 5,000/-. As per the revised policy, the company is depreciating such assets over their useful life as assessed by the management. The management has decided to apply the revised accounting policy prospectively from accounting periods commencing on or after 1 April 2014.

The change in accounting for depreciation of assets costing less than Rs 5,000/- did not have any material impact on financial statements of the company for the current year.

5. Intangible Assets:

Intangible assets are stated at cost of acquisition less accumulated amortization. Computer software and web-site are amortized over a period of three years; Trade mark is amortized over a period of seven years.

6. Impairment of Assets:

The Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the assets. If the carrying amount of fixed assets / cash generating unit exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cash flows.

7. Investments:

Securities acquired with the intention of holding them for long term are classified as long-term investments. Long-term investments are recorded at the cost of acquisition. Provision is made for diminution in value other than temporary. Current investments are valued at lower of cost or market value.

8. Stock in trade:

Stock in trade of shares is valued at lower of cost and fair/market value.

9. Retirement Benefits:-

Retirement benefits are accounted on accrual basis. Provident fund payments are made to Government Provident Fund Trust. Superannuation and gratuity liability is funded with Life Insurance Corporation of India. Provision for gratuity to employees is made on the basis of an actuarial valuation done during the year in compliance with the renewal of gratuity policy. Provision for leave encashment has been made on actual basis for accumulated leave balance of the employees as at year end.

10. Borrowing Costs:

Borrowing costs which are directly attributable to the acquisition/ construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. Other borrowing costs are recognized as an expense in the year in which they are incurred.

11. Foreign Currency Transactions:

Transactions in foreign currencies are recorded at the exchange rate prevailing at the time of occurrence of the transactions.

Monetary items denominated in foreign currency remaining unsettled at the end of the year are translated at the buying rates as at the last day of the year.

Any gains or losses on account of exchange difference either on settlement or translation are recognized in Profit and Loss Account except in case where it relates to the acquisition of fixed assets from a country outside India in which case it is adjusted to the carrying cost of such asset.

12. Taxes on Income:

Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income- tax Act, 1961.

Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to the differences between accounting income and taxable income for a period that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized and carried forward only if there is a reasonable/ virtual certainty of realization.

13. Derivatives:

In respect of futures contracts, the difference between the contract price and the settlement / square off price is accounted as profit/loss on trading. Provision is made in cases where the difference between the contract price and the market price on the date of the Balance Sheet is a loss.

In respect of option contracts, the option premium is recognized as income/expense on the exercise/ expiry date of the contract. In case of square off, the difference between the premium paid and received is accounted as income/ expense on the date of square off.

Provision is made in cases where the difference between the premium paid/ received and the premium prevailing on the Balance Sheet date is a loss.

The difference between the strike price and settlement price is recognized as income/ expense on the exercise/ expiry date of the contract.

14. Provision, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

15. Segment Accounting Policies:

(a) Segment assets and liabilities:

All Segment assets and liabilities are directly attributable to the segment.

Segment assets include all operating assets used by the segment and consist principally of stock in trade, sundry debtors and loans and advances. Segment assets and liabilities do not include share capital, reserves and surplus.

(b) Segment revenue and expenses:

Segment revenue and expenses are directly attributable to segment. It does not include provision for income tax.

16. Earnings Per Share

Basic earnings per share are calculated by dividing the net profit for the year attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted- average number of equity shares outstanding during the year. The weighted-average number of equity shares outstanding during the year and for all years presented is adjusted for events such as bonus issue; bonus element in a rights issue to existing shareholders; share split; and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.

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.

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Mar 31, 2014

1. Basis of preparation of financial statements:

a. The financial statements of the Company have been prepared in accordance with the generally accepted Accounting Principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 2013 (to the extent notified), the Companies Act 1956 (to the extant applicable) and guidelines issued by Securities and Exchange Board of India (SEBI). The financial statements have been prepared on accrual basis and under historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous years, except for the change in accounting policy explained below if any.

2. Use of Estimates:

The preparation of financial statements in confirmatory with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of Contingent Liabilities, at the end of the reporting period. Although these estimates are based on the Management''s best knowledge of current events and actions, uncertainty about these assumptions, and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

3. Revenue Recognition:

Brokerage on equities/derivative transactions are accounted on trade date basis. Interest on Fixed deposits with banks and other services income are accounted on accrual basis where as dividend income and brokerage on mutual fund and IPO syndication are accounted on receipt basis.

4. Fixed Assets & Depreciation:

Fixed Assets are stated at their original cost less accumulated depreciation till date. Depreciation is being charged on written down value basis at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956. Assets costing individually Rs.5,000 or less are fully depreciated in the year of purchase.

5. Intangible Assets:

Intangible assets are stated at cost of acquisition less accumulated amortization. Computer software and web- site are amortized over a period of three years; Trade mark is amortized over a period of seven years.

6. Impairment of Assets:

The carrying amount of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal or external factors. An asset is treated as impaired when the carrying cost of the asset 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 recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

7. Investments:

Securities acquired with the intention of holding them for long term are classified as long-term investments. Long- term investments are recorded at the cost of acquisition. Provision is made for diminution in value other than temporary. Current investments are valued at lower of cost or market value.

8. Stock in trade:

Stock in trade of shares is valued at lower of cost and fair/market value.

9. Retirement Benefits:-

Retirement benefits are accounted on accrual basis. Provident fund payments are made to Government Provident Fund Trust. Superannuation and gratuity liability is funded with Life Insurance Corporation of India. Provision for gratuity to employees is made on the basis of an actuarial valuation done during the year in compliance with the renewal of gratuity policy. Provision for leave encashment has been made on actual basis for accumulated leave balance of the employees as at year end.

10. Borrowing Costs:

Borrowing costs which are directly attributable to the acquisition/ construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. Other borrowing costs are recognized as an expense in the year in which they are incurred.

11. Foreign Currency Transactions:

Transactions in foreign currencies are recorded at the exchange rate prevailing at the time of occurrence of the transactions.

Monetary items denominated in foreign currency remaining unsettled at the end of the year are translated at the buying rates as at the last day of the year.

Any gains or losses on account of exchange difference either on settlement or translation are recognized in Profit and Loss Account except in case where it relates to the acquisition of fixed assets from a country outside India in which case it is adjusted to the carrying cost of such asset.

12. Taxes on Income:

Current tax is determined as the amount of tax payable in respect of taxable income for the period computed in accordance with the relevant tax regulation. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to the differences between accounting income and taxable income for a period that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized and carried forward only if there is a reasonable/ virtual certainty of realization.

13. Derivatives:

In respect of futures contracts, the difference between the contract price and the settlement / square off price is accounted as profit/loss on trading. Provision is made in cases where the difference between the contract price and the market price on the date of the Balance Sheet is a loss.

In respect of option contracts, the option premium is recognized as income/expense on the exercise/ expiry date of the contract. In case of square off, the difference between the premium paid and received is accounted as income/ expense on the date of square off.

Provision is made in cases where the difference between the premium paid/ received and the premium prevailing on the Balance Sheet date is a loss.

The difference between the strike price and settlement price is recognized as income/ expense on the exercise/ expiry date of the contract.

14. Provision, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

15. Segment Accounting Policies:

(a) Segment assets and liabilities:

All Segment assets and liabilities are directly attributable to the segment.

Segment assets include all operating assets used by the segment and consist principally of stock in trade, sundry debtors and loans and advances. Segment assets and liabilities do not include share capital, reserves and surplus.

(b) Segment revenue and expenses:

Segment revenue and expenses are directly attributable to segment. It does not include provision for income tax.

---

Mar 31, 2013

1. Basis of preparation of financial statements:

a. The financial statements of the Company have been prepared in accordance with the generally accepted Accounting Principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis and under historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous years, except for the change in accounting policy explained below.

2. Use of Estimates:

The preparation of financial statements in confirmatory with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of Contingent Liabilities, at the end of the reporting period. Although these estimates are based on the Management''s best knowledge of current events and actions, uncertainty about these assumptions, and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

3. Revenue Recognition:

Brokerage on equities/derivative transactions are accounted on trade date basis. Interest on Fixed deposits with banks and other services income are accounted on accrual basis where as dividend income and brokerage on mutual fund and IPO syndication are accounted on receipt basis.

4. Fixed Assets & Depreciation:

Fixed Assets are stated at their original cost less accumulated depreciation till date. Depreciation is being charged on written down value basis at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956. Assets costing individually Rs.5,000 or less are fully depreciated in the year of purchase.

5. Intangible Assets:

Intangible assets are stated at cost of acquisition less accumulated amortization. Computer software and web- site are amortized over a period of three years; Trade mark is amortized over a period of seven years.

6. Impairment of Assets:

The carrying amount of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal or external factors. An asset is treated as impaired when the carrying cost of the asset 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 recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

7. Investments:

Securities acquired with the intention of holding them for long term are classified as long-term investments. Long- term investments are recorded at the cost of acquisition. Provision is made for diminution in value other than temporary. Current investments are valued at lower of cost or market value.

8. Stock in trade:

Stock in trade of shares is valued at lower of cost and fair/market value.

9. Retirement Benefits:-

Retirement benefits are accounted on accrual basis. Provident fund payments are made to Government Provident Fund Trust. Superannuation and gratuity liability is funded with Life Insurance Corporation of India. Provision for gratuity to employees is made on the basis of an actuarial valuation done at the year end. Provision for leave encashment has been made on actual basis for accumulated leave balance of the employees as at year end.

10. Borrowing Costs:

Borrowing costs''which are directly attributable to the acquisition/ construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. Other borrowing costs are recognized as an expense in the year in which they are incurred.

11. Foreign Currency Transactions:

Transactions in foreign currencies are recorded at the exchange rate prevailing at the time of occurrence of the transactions.

Monetary items denominated in foreign currency remaining unsettled at the end of the year are translated at the buying rates as at the last day of the year.

Any gains or losses on account of exchange difference either on settlement or translation are recognized in Profit and Loss Account except in case where it relates to the acquisition of fixed assets from a country outside India in which case it is adjusted to the carrying cost of such asset.

12. Taxes on Income:

Current tax is determined as the amount of tax payable in respect of taxable income for the period computed in accordance with the relevant tax regulation. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to the differences between accounting income and taxable income for a period that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized and carried forward only if there is a reasonable/ virtual certainty of realization.

13. Derivatives:

In respect of futures contracts, the difference between the contract price and the settlement / square off price is accounted as profit/loss on trading. Provision is made in cases where the difference between the contract price and the market price on the date of the Balance Sheet is a loss.

In respect of option contracts, the option premium is recognized as income/expense on the exercise/ expiry date of the contract. In case of square off, the difference between the premium paid and received is accounted as income/ expense on the date of square off. Provision is made in cases where the difference between the premium paid/ received and the premium prevailing on the Balance Sheet date is a loss.

The difference between the strike price and settlement price is recognized as income/ expense on the exercise/ expiry date of the contract.

14. Provision, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

15. Segment Accounting Policies:

(a) Segment''assets and liabilities:

All Segment assets and liabilities are directly attributable to the segment.

Segment assets include all operating assets used by the segment and consist principally of stock in trade, sundry debtors and loans and advances. Segment assets and liabilities do not include share capital, reserves and surplus.

(b) Segment revenue and expenses:

Segment revenue and expenses are directly attributable to segment. It does not include provision for income tax.

---

Mar 31, 2012

1. Basis of preparation of financial statements:

a. The financial statements of the Company have been prepared in accordance with the generally accepted Accounting Principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis and under historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous years, except for the change in accounting policy explained below.

b. During the year ended 31st March 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 of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

2. Use of Estimates:

The preparation of financial statements in confirmatory with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of Contingent Liabilities, at the end of the reporting period. Although these estimates are based on the Management's best knowledge of current events and actions, uncertainty about these assumptions, and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

3. Revenue Recognition:

Brokerage on equities/derivative transactions are accounted on trade date basis. Interest on Fixed deposits with banks and other services income are accounted on accrual basis where as dividend income and brokerage on mutual fund and IPO syndication are accounted on receipt basis.

4. Fixed Assets & Depreciation:

Fixed Assets are stated at their original cost less accumulated depreciation till date. Depreciation is being charged on written down value basis at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956. Assets costing individually Rs.5,000 or less are fully depreciated in the year of purchase.

5. Intangible Assets:

Intangible assets are stated at cost of acquisition less accumulated amortization. Computer software and web-site are amortized over a period of three years; Trade mark is amortized over a period of seven years.

6. Impairment of Assets:

The carrying amount of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal or external factors. An asset is treated as impaired when the carrying cost of the asset 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 recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

7. Investments:

Securities acquired with the intention of holding them for long term are classified as long-term investments. Long-term investments are recorded at the cost of acquisition. Provision is made for diminution in value other than temporary. Current investments are valued at lower of cost or market value.

8. Stock in trade:

Stock in trade of shares is valued at lower of cost and fair/market value.

9. Retirement Benefits:-

Retirement benefits are accounted on accrual basis. Provident fund payments are made to Government Provident Fund Trust. Superannuation and gratuity liability is funded with Life Insurance Corporation of India. Provision for gratuity to employees is made on the basis of an actuarial valuation done at the year end. Provision for leave encashment has been made on actual basis for accumulated leave balance of the employees as at year end.

10. Borrowing Costs:

Borrowing costs which are directly attributable to the acquisition/ construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. Other borrowing costs are recognized as an expense in the year in which they are incurred.

11. Foreign Currency Transactions:

Transactions in foreign currencies are recorded at the exchange rate prevailing at the time of occurrence of the transactions.

Monetary items denominated in foreign currency remaining unsettled at the end of the year are translated at the buying rates as at the last day of the year.

Any gains or losses on account of exchange difference either on settlement or translation are recognized in Profit and Loss Account except in case where it relates to the acquisition of fixed assets from a country outside India in which case it is adjusted to the carrying cost of such asset.

12. Taxes on Income:

Current tax is determined as the amount of tax payable in respect of taxable income for the period computed in accordance with the relevant tax regulation. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to the differences between accounting income and taxable income for a period that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized and carried forward only if there is a reasonable/ virtual certainty of realization.

13. Derivatives:

In respect of futures contracts, the difference between the contract price and the settlement / square off price is accounted as profit/loss on trading. Provision is made in cases where the difference between the contract price and the market price on the date of the Balance Sheet is a loss.

In respect of option contracts, the option premium is recognized as income/expense on the exercise/ expiry date of the contract. In case of square off, the difference between the premium paid and received is accounted as income/ expense on the date of square off.

Provision is made in cases where the difference between the premium paid/ received and the premium prevailing on the Balance Sheet date is a loss.

The difference between the strike price and settlement price is recognized as income/ expense on the exercise/ expiry date of the contract.

14. Provision, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

15. Segment Accounting Policies:

(a) Segment assets and liabilities:

All Segment assets and liabilities are directly attributable to the segment.

Segment assets include all operating assets used by the segment and consist principally of stock in trade, sundry debtors and loans and advances. Segment assets and liabilities do not include share capital, reserves and surplus.

(b) Segment revenue and expenses:

Segment revenue and expenses are directly attributable to segment. It does not include provision for income tax.

No shares out of the issued, subscribed and paid up shares have been issued for a consideration other than cash, bonus etc. in past 5 years.

The Company has only one class of shares referred to as equity shares having par value of Rs.10. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended March 31, 2012 the Board of Directors has proposed dividend @ 10% (previous year 5%).

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining asset of the Company, after distribution of all preferential amounts. However, no such pereferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Company has not received any instruction from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence, disclosures if any, relating to amounts unpaid as at the year end together with interest payable as required under the said Act have not been given.

Contingent liabilities on account of guarantees issued by Banks in favour of National Securities Clearing Corporation Limited Rs.100Lacs. (previous year Rs.100Lacs.)

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Mar 31, 2011

1. Basis of Accounting:

The financial statements have been prepared under the historical cost convention in accordance with the accrual basis of accounting and the generally accepted accounting principles and the provisions of the Companies Act, 1956, as adopted consistently by the Company.

2. Use of Estimates:

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known/ materialize.

3. Revenue Recognition:

Brokerage on equities/derivative transactions are accounted on trade date basis. Portfolio Management Services fee is recognized at the applicable rate on the transaction value of the investments made. Interest on Fixed deposits with banks and other services income are accounted on accrual basis where as dividend income and brokerage on mutual fund syndication are accounted on receipt basis.

4. Fixed Assets & Depreciation:

Fixed Assets are stated at their original cost less accumulated depreciation till date. Depreciation is being charged on written down value basis at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956. Assets costing individually Rs.5,000 or less are fully depreciated in the year of purchase.

5. Intangible Assets:

Intangible assets are stated at cost of acquisition less accumulated amortization. Computer software and web-site are amortized over a period of three years; Trade mark is amortized over a period of seven years.

6. Impairment of Assets:

The carrying amount of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal or external factors. An asset is treated as impaired when the carrying cost of the asset 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 recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

7. Investments:

Securities acquired with the intention of holding them for long term are classified as long-term investments. Long-term investments are recorded at the cost of acquisition. Provision is made for diminution in value other than temporary. Current investments are valued at lower of cost or market value.

8. Stock in trade:

Stock in trade of shares is valued at lower of cost and fair/market value.

9. Retirement Benefits:- Retirement benefits are accounted on accrual basis. Provident fund payments are made to Government Provident Fund Trust. Superannuation and gratuity liability is funded with Life Insurance Corporation of India. Provision for gratuity to employees is made on the basis of an actuarial valuation done at the year end. Provision for leave encashment has been made on actual basis for accumulated leave balance of the employees as at year end.

10. Borrowing Costs:

Borrowing costs which are directly attributable to the acquisition/ construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. Other borrowing costs are recognized as an expense in the year in which they are incurred.

11. Foreign Currency Transactions:

Transactions in foreign currencies are recorded at the exchange rate prevailing at the time of occurrence of the transactions.

Monetary items denominated in foreign currency remaining unsettled at the end of the year are translated at the buying rates as at the last day of the year.

Any gains or losses on account of exchange difference either on settlement or translation are recognized in Profit and Loss Account except in case where it relates to the acquisition of fixed assets from a country out side India in which case it is adjusted to the carrying cost of such asset.

12. Taxes on Income:

Current tax is determined as the amount of tax payable in respect of taxable income for the period computed in accordance with the relevant tax regulation. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to the differences between accounting income and taxable income for a period that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized and carried forward only if there is a reasonable/ virtual certainty of realization.

13. Derivatives:

In respect of futures contracts, the difference between the contract price and the settlement / square off price is accounted as profit/loss on trading. Provision is made in cases where the difference between the contract price and the market price on the date of the Balance Sheet is a loss.

In respect of option contracts, the option premium is recognized as income/expense on the exercise/ expiry date of the contract. In case of square off, the difference between the premium paid and received is accounted as income/ expense on the date of square off.

Provision is made in cases where the difference between the premium paid/ received and the premium prevailing on the Balance Sheet date is a loss.

The difference between the strike price and settlement price is recognized as income/ expense on the exercise/ expiry date of the contract.

14. Provision, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

15. Segment Accounting Policies:

(a) Segment assets and liabilities:

All Segment assets and liabilities are directly attributable to the segment. Segment assets include all operating assets used by the segment and consist principally of stock in trade, sundry debtors and loans and advances. Segment assets and liabilities do not include share capital, reserves and surplus.

(b) Segment revenue and expenses:

Segment revenue and expenses are directly attributable to segment. It does not include provision for income tax.

---

Mar 31, 2010

1. Basis of Accounting:

The financial statements have been prepared under the historical cost convention in accordance with the accrual basis of accounting and the generally accepted accounting principles and the provisions of the Companies Act, 1956, as adopted consistently by the Company.

2. Use of Estimates:

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known/ materialize.

3. Revenue Recognition:

Brokerage on equities / derivative transactions are accounted on trade date basis. Portfolio Management Services fees is recognized at the applicable rate on the transaction value of the investments made. Interest on Fixed deposits with banks and other services income are accounted on accrual basis where as dividend income is accounted on receipt basis.

4. Fixed Assets & Depreciation:

Fixed Assets are stated at their original cost less accumulated depreciation till date. Depreciation is being charged on written down value basis at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956 except machinery (generator) which is depreciated on straight-line method specified in Schedule XIV of the Companies Act, 1956. Assets costing individually Rs.5,000 or less are fully depreciated in the year of purchase.

5. Intangible Assets:

Intangible assets are stated at cost of acquisition less accumulated amortization. Computer software and web- site are amortized over a period of three years; Trade mark is amortized over a period of seven years.

6. Impairment of Assets:

The carrying amount of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal or external factors. An asset is treated as impaired when the carrying cost of the asset 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 recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

7. Investments:

Securities acquired with the intention of holding them for long term are classified as long-term investments. Long-term investments are recorded at the cost of acquisition. Provision is made for diminution in value other than temporary. Current investments are valued at lower of cost or market value.

8. Stock in trade:

Stock in trade of shares is valued at lower of cost and fair/market value.

9. Retirement Benefits:- Retirement benefits are accounted on accrual basis. Provident fund payments are made to Government Provident Fund Trust. Superannuation and gratuity liability is funded with Life Insurance Corporation of India. Provision for gratuity to employees is made on the basis of an actuarial valuation done at the year end. Provision for leave encashment has been made on actual basis for accumulated leave balance of the employees as at year end.

10. Borrowing Costs:

Borrowing costs which are directly attributable to the acquisition/ construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. Other borrowing costs are recognized as an expense in the year in which they are incurred.

11. Foreign Currency Transactions:

Transactions in foreign currencies are recorded at the exchange rate prevailing at the time of occurrence of the transactions.

Monetary items denominated in foreign currency remaining unsettled at the end of the year are translated at the buying rates as at the last day of the year.

Any gains or losses on account of exchange difference either on settlement or translation are recognized in Profit and Loss Account except in case where it relates to the acquisition of fixed assets from a country outside India in which case it is adjusted to the carrying cost of such asset.

12. Taxes on Income:

Current tax is determined as the amount of tax payable in respect of taxable income for the period computed in accordance with the relevant tax regulation. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to the differences between accounting income and taxable income for a period that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized and carried forward only if there is a reasonable/ virtual certainty of realization.

13. Derivatives:

In respect of futures contracts, the difference between the contract price and the settlement / square off price is accounted as profit/loss on trading. Provision is made in cases where the difference between the contract price and the market price on the date of the Balance Sheet is a loss.

In respect of option contracts, the option premium is recognized as income/expense on the exercise/ expiry date of the contract. In case of square off, the difference between the premium paid and received is accounted as income/ expense on the date of square off.

Provision is made in cases where the difference between the premium paid/ received and the premium prevailing on the Balance Sheet date is a loss.

The difference between the strike price and settlement price is recognized as income/ expense on the exercise/ expiry date of the contract.

14. Provision, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

15. Segment Accounting Policies:

(a) Segment assets and liabilities:

All Segment assets and liabilities are directly attributable to the segment. Segment assets include all operating assets used by the segment and consist principally of stock in trade, sundry debtors and loans and advances. Segment assets and liabilities do not include share capital, reserves and surplus.

(b) Segment revenue and expenses:

Segment revenue and expenses are directly attributable to segment. It does not include provision for income tax.