Dear Members,
 
 The Directors are pleased to present the 18th Annual Report of your
 Company with the Audited Accounts for the financial year 2010-11.
 
 FINANCIAL HIGHLIGHTS
 
 Standalone financial highlights of A. K. Capital Services Limited
 
                                  (Rs. in crore except per share data)
 
 Particulars                            Current year    Previous year
 
 Total income                                156.63           158.74
 
 Profit before tax                            81.45            80.00
 
 Provision for taxes                          27.10            25.75
 
 Profit after tax                             54.34            54.26
 
 Net worth                                   235.10           185.91
 
 Dividend including interim dividend           3.96             3.96
 
 Earning per share (face
 value Rs. 10 per share)
 
 Basic (in Rs.)                               82.34            82.53
 
 Diluted (in Rs.)                             82.34            82.53
 
 Consolidated financial highlights of A. K. Capital Services Limited and
 its subsidiaries
 
                                   (Rs. in crore except per share data)
 
 Particulars                           Current year    Previous year
 
 Total income                                166.40           164.29
 
 Profit before tax                            84.79            82.99
 
 Provision for taxes                          27.77            26.83
 
 Profit after tax & minority interest         57.43            56.14
 
 Net worth                                   243.02           188.86
 
 Earning per share (face value 
 Rs. 10 per share)
 
 Basic (in Rs.)                               87.02            85.39
 
 Diluted (in Rs.)                             87.02            85.39
 
 FINANCIAL PERFORMANCE
 
 The financial performance of your Company is elaborated in the
 Management Discussion and Analysis Report which forms part of this
 Annual Report and has been prepared in accordance with Clause 49 of the
 Listing Agreement of the stock exchange where the shares of the Company
 are listed.
 
 AWARDS AND RECOGNITIONS
 
 Your Company has won the 15th National Level Entrepreneurship
 Excellence Award - for Development of Indian Bond Market.  The
 conference empowering Indian SMEs - Vision 2020 was organized by the
 SME Chamber of India and India International Trade Centre (IITC-India)
 and, was supported by the Government of Maharashtra.
 
 DIVIDEND ON EQUITY SHARES
 
 Your Directors recommend a final dividend of 30 % i.e. Rs. 3 per equity
 share (face value of Rs. 10 per equity share) on 6,600,000 equity
 shares for the financial year 2010-11. The amount of dividend on equity
 shares and tax thereon aggregates to Rs. 2.30 crore.
 
 The payment of the aforesaid dividend is subject to the approval of the
 Members to be obtained at the ensuing Annual General Meeting and shall
 be paid to all those equity shareholders whose names appear in the
 Register of Members as on September 14, 2011, Wednesday. The Register
 of Members and Share Transfer Books will remain closed from September
 15, 2011, Thursday, to September 17, 2011, Saturday, both days
 inclusive. The Annual General Meeting of the Company is scheduled to be
 held on September 17, 2011, Saturday.
 
 During the financial year 2010-11 the Company declared and paid an
 interim dividend of 30% i.e. Rs. 3 per equity share (face value of Rs.
 10 per equity share). The total dividend including interim dividend for
 the financial year 2010-11 is 60% i.e. Rs. 6 per equity share (face
 value of Rs. 10 per equity share).
 
 TRANSFER TO RESERVES
 
 The Company proposes to transfer Rs. 6 crore to the General Reserve and
 retain Rs. 150.14 crore to the profit and loss account.
 
 SUBSIDIARIES
 
 The Company had three subsidiaries at the beginning of the financial
 year 2010-11 namely:
 
 A. K. Stockmart Private Limited
 
 A. K. Capital Corporation Private Limited
 
 A. K. Capital Finance Private Limited
 
 One subsidiary namely A. K. Wealth Management Private Limited has been
 acquired during the financial year 2010-11. Consequently, the total
 number of subsidiaries as on March 31, 2011 is four.
 
 On consolidated basis, your Company posted consolidated revenue of Rs.
 166.40 crore and a consolidated profit after tax (after minority
 interest) of Rs. 57.43 crore.
 
 In terms of the general exemption granted by the Ministry of Corporate
 Affairs vide Circular No. 2/2011 dated February 8, 2011, the Board of
 Directors of the Company had at their meeting held on August 10, 2011
 approved attaching the Consolidated Financials of all the Subsidiaries
 of the Company along with that of the Company.
 
 Pursuant to the aforesaid Circular, the copies of the Balance Sheet,
 Profit and Loss Account, Directors'' Report and Auditors'' Report of each
 of the Subsidiary Companies has not been attached to this Annual
 Report. The Company will make available these documents/ details upon
 written request by any Member of the Company. These documents/details
 will also be available for inspection by any Members of the Company at
 the Registered Office of the Company and also at the Registered Office
 of the concerned Subsidiaries.  The financial information of the
 Subsidiaries has been furnished under ''Statement pursuant to Section
 212 of the Companies Act, 1956, related to Subsidiary Companies'' and
 forms part of this Annual Report.
 
 The Consolidated Financial Statements has been prepared in accordance
 with the Accounting Standard 21- Consolidated Financial Statements
 prescribed by the Companies (Accounting Standards) Rules, 2006 and
 forms part of this Annual Report.
 
 A statement pursuant to Section 212 of the Companies Act, 1956 is set
 out as an annexure to this Annual Report.
 
 DIRECTORS
 
 In terms of relevant provisions of the Companies Act, 1956 and Articles
 of Association of the Company, Mr. Subhash Chandra Bhargava and Mrs.
 Anshu, Directors of the Company, retire by rotation and being eligible,
 offer themselves for re-appointment at the ensuing Annual General
 Meeting.
 
 A brief resume of these Directors along with the nature of their
 expertise in specific functional areas, names of Companies in which
 they hold directorship and/or Membership/Chairmanship of Committees of
 the Board and the number of shares held by them in the Company, as
 stipulated under Clause 49 of the Listing Agreement is given in the
 notice of the ensuing Annual General Meeting.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 In pursuance of Section 217(2AA) of the Companies Act, 1956, with
 respect to Directors'' Responsibility Statement, the Directors confirm
 that:
 
 1.  the Company has, in the preparation of the annual accounts,
 followed the applicable accounting standards along with proper
 explanation relating to material departures, if any;
 
 2.  the Directors have selected such accounting policies and applied
 them consistently and made judgments and estimates that were reasonable
 and prudent so as to give a true and fair view of the state of affairs
 of the Company as at March 31, 2011 and of the profit of the Company
 for the financial year 2010-11;
 
 3.  the Directors have taken proper and sufficient care to the best of
 their knowledge and ability, for the maintenance of adequate accounting
 records in accordance with the provisions of the Companies Act, 1956,
 for safeguarding the assets of the Company and for preventing and
 detecting fraud and other irregularities;
 
 4.  the annual accounts have been prepared on a going concern basis.
 
 VOLUNTARY DELISTING FROM DELHI STOCK EXCHANGE LIMITED (DSE)
 
 Pursuant to resolution passed at the Board Meeting of the Company on
 November 1, 2010, and in accordance with the Securities and Exchange
 Board of India (Delisting of Equity Shares) Regulations, 2009, the
 Company has voluntarily delisted its equity shares from Delhi Stock
 Exchange Limited (DSE) with effect from March 4, 2011.  The equity
 shares of the Company are and will continue to be listed on exchange
 having nationwide terminals, Bombay Stock Exchange Limited (BSE).
 
 MANAGEMENT DISCUSSION AND ANALYSIS REPORT
 
 In accordance with Clause 49 of the Listing Agreement, the Management
 Discussion and Analysis Report for the financial year 2010-11 forms
 part of this Annual Report.
 
 CORPORATE GOVERNANCE
 
 Pursuant to Clause 49 of the Listing Agreement, a separate section on
 Corporate Governance forms part of this Annual Report.
 
 A certificate from the Auditors of the Company M/s. Suresh Surana &
 Associates, Chartered Accountants, confirming the compliance with the
 conditions of Corporate Governance as stipulated under the aforesaid
 Clause 49, is annexed to this Annual Report.
 
 AUDITORS
 
 M/s. Suresh Surana & Associates, Chartered Accountants, (Firm
 Registration Number 121750W), Statutory Auditors of the Company, hold
 office until the conclusion of the ensuing Annual General Meeting and
 are eligible for re-appointment.
 
 The Company has received a confirmation from M/s. Suresh Surana &
 Associates, Chartered Accountants to the effect that their appointment,
 if made, would be within the limits prescribed under Section 224(1B) of
 the Companies Act, 1956.
 
 The observations and comments given by Auditors in this report read
 together with notes to accounts are self-explanatory and do not call
 for any further comments under Section 217 of the Companies Act, 1956.
 
 PUBLIC DEPOSITS
 
 The Company has neither accepted nor renewed any public deposits during
 the financial year 2010-11.
 
 CONVERSION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNINGS AND OUTGO
 
 The provisions of Section 217(1)(e) of the Companies Act, 1956 read
 with the Companies (Disclosure of Particulars in the Report of Board of
 Directors) Rules, 1988, relating to conservation of energy and
 technology absorption are not applicable to the Company.
 
 The Company has no foreign exchange earnings during the financial year
 2010-11. The information on foreign exchange outgo is furnished in the
 Notes to Accounts – Schedule O, forming part of this Annual Report.
 
 PARTICULARS OF EMPLOYEES
 
 The information required under Section 217(2A) of the Companies Act,
 1956 read with the Companies (Particulars of Employees) Rules, 1975, as
 amended from time to time, is set out as separate annexure which forms
 part of this Annual Report. The Annual Report of the Company is being
 sent to all the Members of the Company along with the aforesaid
 annexure.
 
 APPRECIATION
 
 The Board of Directors take this opportunity to express their sincere
 appreciation for the support and co-operation from the government,
 regulators, stock exchanges, bankers, other statutory bodies, etc.
 
 The Board of Directors also put on record their sincere appreciation of
 the hard work and commitments put in by the management and employees of
 the Company and thank them for another good year for the Company.
 
 On behalf of the Board of Directors
 
 A. K. Mittal
 
 Managing Director
 
 Place : Mumbai
 
 Date : August 10, 2011