Notes to Accounts of Modern Shares & Stock Brokers Ltd.

Mar 31, 2024

(xiv) Provisions, contingent liabilities and

contingent assets:

Provisions are recognised only when:

(i) an Company entity has a present obligation
(legal or constructive) as a result of a past
event; and

(ii) it is probable that an outflow of resources
embodying economic benefits will be
required to settle the obligation; and

(iii) a reliable estimate can be made of the
amount of the obligation

Provision is measured using the cash flows
estimated to settle the present obligation and
when the effect of time value of money is material,
the carrying amount of the provision is the present
value of those cash flows. Reimbursement
expected in respect of expenditure required to
settle a provision is recognised only when it is
virtually certain that the reimbursement will be
received

Contingent liability is disclosed in case of:

(i) a present obligation arising from past events,
when it is not probable that an outflow
of resources will be required to settle the
obligation; and

(ii) a present obligation arising from past events,
when no reliable estimate is possible

Contingent assets are disclosed
where an inflow of economic benefits
is probable. Provisions, contingent
liabilities and contingent assets are
reviewed at each Balance Sheet date.
Where the unavoidable costs of meeting the
obligations under the contract exceed the
economic benefits expected to be received
under such contract, the present obligation
under the contract is recognised and
measured as a provision.

xv) Statement of cash flows:

Statement of cash flows is prepared segregating
the cash flows into operating, investing and
financing activities.cash flow from operating
activities is reported using indirect method
adjusting the net profit for the effects of:

(i) changes during the period in operating
receivables and payables transactions of a
non-cash nature;

(ii) non-cash items such as depreciation,
provisions, deferred taxes, unrealised gains
and losses; and

(iii) all other items for which the cash effects are
investing or financing cash flows.

Cash and cash equivalents (including bank
balances) shown in the Statement of Cash Flows
exclude items which are not available for general
use as on the date of Balance Sheet.

(xvi) Earnings per share

Basic earnings per share is calculated by dividing
the net profit or loss for the period attributable
to equity shareholders by the weighted average
number of equity shares outstanding during the
period. Earnings considered in ascertaining the
Company’s earnings per share is the net profit
for the period after deducting dividends and any
attributable tax thereto for the period. The weighted
average number of equity shares outstanding
during the period and for all periods presented is
adjusted for events, such as bonus shares, other
than the conversion of potential equity 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
period attributable to equity shareholders and the
weighted average number of shares outstanding
during the period is adjusted for the effects of all
dilutive potential equity shares.

(xvii) Foreign currencies

(i) The functional currency and presentation
currency of the Company is Indian Rupee.
Functional currency of the Company and
foreign operations has been determined
based on the primary economic environment
in which the Company and its foreign
operations operate considering the currency
in which funds are generated, spent and
retained.

(ii) Transactions in currencies other than the
Company’s functional currency are recorded
on initial recognition using the exchange
rate at the transaction date. At each Balance
Sheet date, foreign currency monetary items
are reported at the prevailing closing spot

rate. Non-monetary items that are measured
in terms of historical cost in foreign currency
are not retranslated.

Exchange differences that arise on
settlement of monetary items or on reporting
of monetary items at each Balance Sheet
date at the closing spot rate are recognised
in the Statement of Profit and Loss in the
period in which they arise.

(ii) Financial statements of foreign operations
whose functional currency is different than
Indian Rupees are translated into Indian
Rupees as follows:

A. assets and liabilities for each Balance
Sheet presented are translated at the
closing rate at the date of that Balance
Sheet;

B. income and expenses for each income
statement are translated at average
exchange rates; and

C. all resulting exchange differences are
recognised in other comprehensive
income and accumulated in equity as
foreign currency translation reserve for
subsequent reclassification to profit
or loss on disposal of such foreign
operations.

(xviii) Dividend

Provision is made for the amount of any dividend
declared, being appropriately authorised and no
longer at the discretion of the entity, on or before
the end of the reporting period but not distributed
at the end of the reporting period.

Note 2.32 : Segment Reporting:

There is no separate reportable segment as per Ind AS 108 on ''Operating Segments'' in respect of the Company.
Note 2.33 : Lease

The Company has adopted Ind AS 116 with effect from April 01, 2019 and applied the standard to its leases
retrospectively in accordance with the requirements of the standard, the lease liability under operating lease has
been recognised on straight line basis.

Note 2.34 : Financial Risk Management

Company has operations in India. Whilst risk is inherent in the Company’s activities, it is managed through
an integrated risk management framework, including ongoing identification, measurement and monitoring,
subject to risk limits and other controls. This process of risk management is critical to the Company’s continuing
profitability and each individual within the Company is accountable for the risk exposures relating to his or her
responsibilities. The Company is exposed to credit risk, liquidity risk and market risk. It is also subject to various
operating and business risks.

A. Credit Risk

Credit risk is the risk that the Company will incurr a loss because its customers or counterparties fail to
discharge their contractual obligation. The Company manages and controls credit risk by setting limits
on the amount of risk it is willing to accept for individual counterparties, and by monitoring exposures in
relations to such limits.

The maximum exposure to credit risk for each class of financial instruments is the carrying amount of
that class of financial instruments presented in the financial statements. The Company’s major classes of
financial assets are cash and cash equivalents, loans, investment in mutual fund units, investment in equity
instruments, term deposits, trade receivables and security deposits.

Deposits with banks are considered to have negligible risk or nil risk, as they are maintained with high
rated banks / financial institutions as approved by the Board of directors. The management has established
accounts receivable policy under which customer accounts are regularly monitored. The Company has a
dedicated risk management team, which monitors the positions, exposures and margins on a continuous
basis.

B. Liquidity Risk

Liquidity risk is the risk that the entity will encounter difficulty in meeting the obligations associated with its
financial liabilities that are settled by delivering cash or another financial asset. The entity’s approach to
managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities
when they are due, under both normal and stressed conditions, without incurring unacceptable losses or
risking damage to the entity’s reputation.

Prudent liquidity risk management requires sufficient cash and marketable securities and availability of
funds through adequate committed credit facilities to meet obligations when due and to close out market
positions.

The Company has a view of maintaining liquidity with minimal risks while making investments. The Company
invests its surplus funds in short term liquid assets in bank deposits and liquid mutual funds. The Company
monitors its cash and bank balances periodically in view of its short term obligations associated with its
financial liabilities.

Refer Note no. 2.35 For analysis of maturities of financial assets and financial liabilities.

C. Market Risk

Market risk is the risk that the fair value or future Cash flows of a financial instrument will fluctuate because
of changes in market prices. The objective of market risk management is to manage and control market risk
exposures within acceptable parameters, while optimizing the return.

(i) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate
because of changes in foreign exchange rates.

Foreign currency risk management

In respect of the foreign currency transactions, the company does not hedge the exposures since the
management believes that the same is insignificant in nature and will not have a material impact on the
Company.

(ii) Interest rate risk

The Company is exposed to Interest risk if the fair value or future cash flows of its financial instruments
will fluctuate as a result of changes in market interest rates. Fair value interest rate risk is the risk of
changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates.

The Company’s interest rate risk arises from interest bearing deposits with bank. Management believe
that the interest rate risk attached to this financial assets are not significant due to the nature of this
financial assets.

(iii) Market price risks

The Company is exposed to market price risk, which arises from FVTPL investments. The management
monitors the proportion of these investments in its investment portfolio based on market indices.
Material investments within the portfolio are managed on an individual basis and all buy and sell
decisions are approved by the appropriate authority.

(b) Fair value of other financial assets and liabilities measured at amortised cost :

The carrying amounts of trade receivables, loans, other financial assets, trade payables, other financials
liabilities and cash and cash equivalents are considered to be the same as their fair values, due to short¬
term nature.

(c) Fair value hierarchy of financial assets and financial liabilities at fair value:

Fair value hierarchy :

This section explains the judgements and estimates made in determining the fair values of the financial
instruments that are :

(a) recognised and measured at fair value and

(b) measured at amortised cost and for which fair values are disclosed in the financial statements.

To provide an indication about the reliability of the inputs used in determining fair value, the Company
has classified its financial instruments into the three levels prescribed under the accounting standard.
An explanation of each level follows underneath the table.

Note 2.39 (b) : Other Statutory Information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property

(ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.

(iii) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

(iv) The Company has not advanced or loaned or invested funds to any person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(v) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Parties) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vi) The Company has not made any such transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income during the year in the tax assessments under the Income Tax
Act,1961 (such as search or survey or any other relevant provision of the Income Tax Act, 1961).

(vii) The Company does not have any transactions with companies which has been struck off by ROC under
section 248 of the Companies Act, 2013.

Note 2.40: Previous year figures have been re-grouped and re-arranged wherever necessary.

As per our attached report of even date For and on behalf of the Board

For B D G & CO LLP

Chartered Accountants ^{Ashok T Kukreja (Chairman)} DIN: 00463526

FRN No: 119739W/W100900 Pankaj R Ved (Director) DIN: 00207079

Nikhil Rathod Anil S Manghnani (Whole-time Director) DIN: 00012806

^Partne^r r n Shenvi (Chief Financial Officer)

Membership No.161220

Pl_{ace :} M_umb_ai Vibha Axit Gandhi (Company Secretary)

Date : May 24, 2024

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Mar 31, 2015

1 Share Capital

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, 2015 the Board of Directors has proposed dividend @ 10% (previous year 10%).

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.

2 Contingent liabilities

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

b Contingent liability on account of property at Worli Naka towards property maintenance dues and market rent of the property, Rs.4,44,821/- (previous year Rs.3,62,626/-)

(b) Notes:

(i) Unallocated expenses comprise of staff cost, depreciation & general administrative expenses provided at an enterprise level.

(ii) Segment assets comprise of stock-in-trade, deposits with NSE and client accounts. Unallocated assets mainly comprise of fixed assets, investments and advances. Segment liabilities comprise of client accounts. Unallocated liabilities mainly include outstanding expenses, retirement benefits, statutory liabilities and loans.

3 The Company is a Minority Shareholder of Innovative B2B Logistics Solutions Limited (herein after referred to as B2B). The shares of B2B held by the Company was transferred to IL & FS Trust Company Limited - Trustee to the Innovative B2B Logistics Minority Shareholders Trust formed for the benefit and to protect the interest of the Minority Shareholders of B2B. In the event, if the new promoters namely India Value Fund (IVF) of B2B decides to exit by selling their stakes to other party/parties in future, all Minority Shareholders (Beneficial Owners of the Trust) shall get 50% of certain excess returns earned by IVF on sale of shares of B2B as one of the conditions agreed between B2B & Trustee. The necessary declaration for beneficial ownership in Form No II U/s 187(C) (2) of the Companies Act, 1956 has been filed by us with the company declaring the beneficial interest in the shares.

4 The Company is in possession of property at Kangra Mitra Mandal Co-op. Housing Society Ltd., at Worli Naka as tenant. However, the owner of the property has filed a suit against the Company demanding the property maintenance dues and market rent of the property / possession of the property. Being defendant, as directed by the Court, the Company has deposited the amount of Rs.4,44,821/- with the Court under protest pending disposal of the suit. With the legal recourse available to tenant, the Company expects to succeed the case.

5 Related Party Transactions:

As per Accounting Standard 18 - Related Party Transactions issued by the Institute of Chartered Accountants of India, the disclosures of transactions with related parties as defined in the Accounting Standard are given below:

List of Related Parties and Relationships

Person/companies having significant Mr.Narendra H.Advani influence over the Company Bhagwanti Exports Pvt. Ltd Hira Advani Holdings Pvt.Ltd Neelgagan Investments Pvt. Ltd Bhagwanti Tex Overseas Pvt Ltd

Key Management Personnel and Mr. Anil Sugno Manghnani

also person having significant Mr. Radhakrishna Shenvi influence over the company (part of the year)

Relatives of Key Management Ms. Lavina Manghnani-(spouse)

personnel and persons having Mr. Praveen Manghnani-(brother)

significant influence over Ms. Sarla H. Advani-(mother)

the company Ms. Shalini N. Advani-(spouse)

Mrs. Roshan Advani Patheria -(sister)

Ms. Ranjana H. Advani-(sister)

Ms. Sheela R. Shenvi-(spouse)

Mr. Shamu N. Shenvi-(brother)

Mr. Ramachandra N. Shenvi- (brother) Ms. Tanushree Shenvi-(daughter)

Ms. Vidya Shenvi-(brother's wife)

Ms. Suchita Shenvi-(brother's wife)

Ms. Aarti Ramchandra Shenvi (brother's wife)

6 : Previous year figures have been re-grouped and re-arranged wherever necessary.

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Mar 31, 2014

Note 1.1: Share Capital

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 31,2014 the Board of Directors has proposed dividend @ 10% (previous year 10%).

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.

Note 1.2 Contingent liabilities

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

b Contingent liability on account of property at Worli Naka towards property maintenance dues and market rent of the property, Rs.3,62,626/- (previous year Rs.Nil.) (Also refer Note no. 2.23)

Note 1.3:

The Company is a Minority Shareholder of Innovative B2B Logistics Solutions Limited (herein after referred to as B2B). The shares of B2B held by the Company was transferred to IL & FS Trust Company Limited - Trustee to the Innovative B2B Logistics Minority Shareholders Trust formed for the benefit and to protect the interest of the Minority Shareholders of B2B. In the event, if the new promoters namely India Value Fund (IVF) of B2B decides to exit by selling their stakes to other party/parties in future, all Minority Shareholders (Beneficial Owners of the Trust) shall get 50% of certain excess returns earned by IVF on sale of shares of B2B as one of the conditions agreed between B2B & Trustee. The necessary declaration for beneficial ownership in Form No II U/s 187(C) (2) of the Companies Act, 1956 has been filed by us with the company declaring the beneficial interest in the shares.

Note 1.4:

The Company is in possession of property at Kangra Mitra Mandal Co-op. Housing Society Ltd., at Worli Naka as tenant. However, the owner of the property has filed a suit against the Company demanding the property maintenance dues and market rent of the property / possession of the property. Being defendant, as directed by the Court, the Company has deposited the amount of Rs.3,62,626/- with the Court under protest pending disposal of the suit. With the legal recourse available to tenant, the Company expects to succeed the case.

Note 1.5: Related Party Transactions:

As per Accounting Standard 18 - Related Party Transactions issued by the Institute of Chartered Accountants of India, the disclosures of transactions with related parties as defined in the Accounting Standard are given below:

List of Related Parties and Relationships

Person/companies having significant influence over the Mr. Narendra H.Advani Company Bhagwanti Exports Pvt. Ltd

Hira Advani Holdings Pvt. Ltd.

Neelgagan Investments Pvt. Ltd.

Bhagwanti Tex Overseas Pvt Ltd

Key Management Personnel and also person having significant influence Mr. Anil Sugno Manghnani over the company (DIN NO. 00012806)

Mr. Radhakrishna Shenvi (Din No. 01005410)

Mrs. Lavina Manghnani-(spouse)

Relatives of Key Management Mr. Praveen Manghnani-(brother) personnel and persons having significant influence Mrs. Sarla H. Advani-(mother) over the company Mrs. Shalini N. Advani-(spouse)

Ms. Roshan H. Advani-(sister)

Ms. Ranjana H. Advani-(sister)

Mrs.Sheela R. Shenvi-(spouse)

Mr. Shamu N. Shenvi-(brother)

Mr. Ramachandra N. Shenvi- (brother)

Ms. Tanushree Shenvi-(daughter)

Ms. Vidya Shenvi-(brother''s wife)

Ms. Suchita Shenvi-(brother''s wife)

Ms. Aarti Ramchandra Shenvi- (brother''s wife)

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Mar 31, 2013

Note 1.1: Remittance in foreign currencies:

For dividends:

The Company has not remitted any amount in foreign currencies on account of dividends during the year and does not have information as to the extent to which remittances, if any, in foreign currencies on account of dividends have been made by/on behalf of non-resident shareholders. Particulars of dividends paid to non-resident shareholders on shares held on repatriation basis during the year 2012-2013 are as under:

(b) Notes:

(i) Unallocated expenses comprise of staff cost, depreciation & general administrative expenses provided at an enterprise level.

(ii) Segment assets comprise of stock-in-trade, deposits with NSE and client accounts. Unallocated assets mainly comprise of fixed assets, investments and advances. Segment liabilities comprise of client accounts.

Unallocated liabilities mainly include outstanding expenses, retirement benefits, statutory liabilities and loans.

Note 1.2:

The Company is a Minority Shareholder of Innovative B2B Logistics Solutions Limited (herein after referred to as B2B). The shares of B2B held by the Company was transferred to IL & FS Trust Company Limited - Trustee to the Innovative B2B Logistics Minority Shareholders Trust formed for the benefit and to protect the interest of the Minority Shareholders of B2B. In the event, if the new promoters namely India Value Fund (IVF) of B2B decides to exit by selling their stakes to other party/parties in future, all Minority Shareholders (Beneficial Owners of the Trust) shall get 50% of certain excess returns earned by IVF on sale of shares of B2B as one of the conditions agreed between B2B & Trustee. The necessary declaration for beneficial ownership in Form No II U/s 187(C) (2) of the Companies Act, 1956 has been filed by us with the company declaring the beneficial interest in the shares.

Note 1.3: Related Party Transactions:

As per Accounting Standard 18 - Related Party Transactions issued by the Institute of Chartered Accountants of India, the disclosures of transactions with related parties as defined in the Accounting Standard are given below:

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Mar 31, 2012

Note 1.1: Remittance in foreign currencies:

For dividends:

The Company has not remitted any amount in foreign currencies on account of dividends during the year and does not have information as to the extent to which remittances, if any, in foreign currencies on account of dividends have been made by/on behalf of non-resident shareholders. Particulars of dividends paid to non-resident shareholders on shares held on repatriation basis during the year 2011-2012 are as under:

(a) Notes:

(i) Unallocated expenses comprise of staff cost, depreciation & general administrative expenses provided at an enterprise level.

(ii) Segment assets comprise of stock-in-trade, deposits with NSE and client accounts. Unallocated assets mainly comprise of fixed assets, investments and advances. Segment liabilities comprise of client accounts. Unallocated liabilities mainly include outstanding expenses, retirement benefits, statutory liabilities and loans.

Note 1.2:

The Company is a Minority Shareholder of Innovative B2B Logistics Solutions Limited (herein after referred to as B2B). During the year the shares of B2B held by the Company was transferred to IL & FS Trust Company Limited - Trustee to the Innovative B2B Logistics Minority Shareholders Trust formed for the benefit and to protect the interest of the Minority Shareholders of B2B. In the event, if the new promoters namely India Value Fund (IVF) of B2B decides to exit by selling their stakes to other party/parties in future, all Minority Shareholders (Beneficial Owners of the Trust) shall get 50% of certain excess returns earned by IVF on sale of shares of B2B as one of the conditions agreed between B2B & Trustee. The necessary declaration for beneficial ownership in Form No II U/s 187(C) (2) of the Companies Act, 1956 has been filed by us with the company declaring the beneficial interest in the shares.

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Mar 31, 2011

1. Contingent Liabilities:

i) on account of guarantees issued by Banks in favour of National Securities Clearing Corporation Ltd., Rs. 100Lacs. (previous year Rs. 100Lacs.)

2. i) The lease (in perpetuity) of the Leasehold land is in the name of the Company but the benefit of undivided share, right, title and interest in the common areas and facilities is shared by the Company with the five purchasers of the portion of the building known as Band Box House built on this land.

ii) The Company had entered into a Joint Retail Venture Agreement with Bata India Ltd., for its office premise at Worli on 01/04/1994 for a period of 10 years, which was extended for a further period of five years up to 31/03/2009. On expiry of the said period The Company asked Bata India Ltd., to vacate the premises but they did not adhere to it, resulting in filing of suit in the Court of Small Causes at Bombay by the Company and accordingly the Company returned the cheques received and stopped recognizing the commission from them. However, as per legal advice received by the Company, during the current year a sum of Rs. 630,000/- received from Bata India Ltd., was deposited and accounted.

3. Deposits with banks:

i) Rs. 50Lacs (previous year Rs. 50Lacs) have been pledged with the banks as security for guarantees given to National Securities Clearing Corporation Ltd., for Cash Market;

ii) Rs. 618Lacs (previous year Rs. 209Lacs) have been pledged with the banks as security towards margin given to National Securities Clearing Corporation Ltd., for Futures & Options;

iii) Rs. 100Lacs (previous year Rs. 100Lacs) are pledged with banks against overdraft facilities provided;

iv) Rs. 50Lacs (previous year Rs. 53.62Lacs) is pledged with National Securities Clearing Corporation Ltd., towards margin for Cash Market;

v) Rs. 18.75Lacs (previous year Nil) is pledged with Bombay Stock Exchange Ltd., towards margin for Cash Market.

4. The Company is a SEBI registered Portfolio Manager and is performing the portfolio management services (PMS), the Company invests the funds of the clients received under the Portfolio Management Scheme in equity market and holds the securities received against such investments in separate depository account of each PMS clients. The amount received by the Company for PMS (net of such investments) is shown in current liabilities to the extent un-deployed.

5. Managerial Remuneration under Sec.198 of the Companies Act, 1956 paid to a whole time director :

The above excludes provision for gratuity since this is based on actuarial valuation done on an overall basis. Computation of net profit for the year has not been provided since no commission is paid/ payable.

6. Expenditure in Foreign Currency :

as actual of dividends have been made by/on behalf of non-residents, particulars of dividends paid to non- resident share holders on shares held on repartitation basis during the year 2010-11 are as under :

7. Segment Information for the year ended 31st March, 2011 :

(b) Notes :

(ii) Unallocated expenses comprise of Staff cost, Depreciation & General administrative expenses provided at an enterprise level.

(iii) Segment assets comprise of stock-in-trade, deposits with NSE and client accounts. Unallocated assets mainly comprise of fixed assets, investments and advances. Segment liabilities comprise of client accounts. Unallocated liabilities mainly include outstanding expenses, retirement benefits, statutory liabilities and loans.

8. As per Accounting Standard 18 - Related Party Transactions issued by the Institute of Chartered Accountants of India, the disclosures of transactions with related parties as defined in the Accounting Standard are given below :

List of Related Parties and Relationships

Person/companies having significant Mr.H.K.Advani (upto 19-11-2010) influence over the Company Bhagwanti Exports Pvt. Ltd Hira Advani Holdings Pvt. Ltd. Neelgagan Investments Pvt. Ltd. Bhagwanti Tex Overseas Pvt Ltd

Key Management Personnel and also Mr. Anil Sugno Manghnani person having significant influen -ce over the Company

Relatives of Key Management Mrs. Lavina Manghnani-(spouse) personnel and persons having sign Mrs. Sarla H. Advani-(spouse) -ificant influence over the Mr. Mr. Narendra H Advani-(son) Praveen Manghnani-(brother) Ms. Roshan H. Advani-(daughter) Company Ms. Ranjana H. Advani- (daughter)

9. The company has not received any intimation from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence, the disclosures relating to amount unpaid as at the end of the year together with interest paid/payable as required under the said Act has not been furnished and provision for interest, if any, on delayed payments, is not ascertainable at this stage.

10. The previous year's figures have been regrouped, rearranged and re-classified wherever necessary to conform to current year's figures.

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Mar 31, 2010

1. Contingent Liabilities:

i) on account of guarantees issued by Banks in favour of National Securities Clearing Corporation Ltd., Rs.100Lacs. (previous year Rs.100Lacs.)

2. The lease (in perpetuity) of the Leasehold land is in the name of the Company but the benefit of undivided share, right, title and interest in the common areas and facilities is shared by the Company with the five purchasers of the portion of the building known as Band Box House built on this land.

3. Deposits with banks:

i) Rs.50Lacs (previous year Rs.50Lacs) have been pledged with the banks as security for guarantees given to National Securities Clearing Corporation Ltd., for Cash Market;

ii) Rs.209Lacs (previous year Rs.379Lacs) have been pledged with the banks as security towards margin given to National Securities Clearing Corporation Ltd., for Futures & Options;

iii) Rs.100Lacs (previous year Rs.135Lacs) are pledged with banks against overdraft facilities provided;

iv) Rs.53.62Lacs (previous year Rs.50Lacs) is pledged with National Securities Clearing Corporation Ltd., towards margin for Cash Market.

4. The Company is a SEBI registered Portfolio Manager and in performing the portfolio management services(PMS), the Company invests the funds of the clients received under the Portfolio Management Scheme in equity market and holds the securities received against such investments in separate depository account of each PMS clients. The amount received by the Company for PMS (net of such investments) is shown in current liabilities to the extent undeployed.

The computation of net profit for the year has not been provided since no commission is paid/ payable.

(ii) Unallocated expenses comprise of Staff cost, Depreciation & General administrative expenses provided at an enterprise level.

(iii) Segment assets comprise of stock-in-trade, deposits with NSE and client accounts. Unallocated assets mainly comprise of fixed assets, investments and advances. Segment liabilities comprise of client accounts. Unallocated liabilities mainly include outstanding expenses, retirement benefits, statutory liabilities and loans.

5. As per Accounting Standard 18 - Related Party Transactions issued by the Institute of Chartered Accountants of India, the disclosures of transactions with related parties as defined in the Accounting Standard are given below:

List of Related Parties and Relationships

Person/companies having significant influence over the company

Mr. H. K. Advani Bhagwanti Exports Pvt. Ltd Hira Advani Holdings Pvt. Ltd. Neelgagan Investments Pvt. Ltd. Bhagwanti Tex Overseas Pvt Ltd

Key Management Personnel and also person having significant influence over the company

Mr. Anil Sugno Manghnani

Relatives of Key Management personnel and also persons having significant influence over the company

Mrs. Lavina Manghnani-(spouse) Mr. Praveen Manghnani-(brother) Mrs. Sarla H. Advani-(spouse) Mr. Narendra H Advani-(son) Ms. Roshan H. Advani-(daughter) Ms. Ranjana H. Advani-(daughter)

Transactions during the year with related parties:

6. The company has not received any intimation from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence, the disclosures relating to amount unpaid as at the end of the year together with interest paid/payable as required under the said Act has not been furnished and provision for interest, if any, on delayed payments, is not ascertainable at this stage.

7. The previous years figures have been regrouped and re-classified wherever necessary to conform to current years figures.