1.  Contingent liabilities not provided for:
 
 Guarantee given by bank on behalf of the Company V500,000 (previous
 year V100,000).
 
 2.  a) Term loan is secured by equitable mortgage of the Company''s
 immovable property comprising of land and buildings and other
 structures, machinery and plant and other fixtures and fittings erected
 or installed thereon (both present and future), situated at 8th Floor
 (Part), Mafatlal Centre, Nariman Point, Mumbai 400 021.
 
 b) Vehicle loans are secured by hypothecation of vehicles purchased
 against the said loan.
 
 c) Bank overdraft is secured against pledge of debt securities and
 personal guarantee of two directors of the Company.
 
 3.  Leases
 
 a) Where the Company is lessee:
 
 The Company has taken various residential and office premises under
 operating lease that are renewable on a periodic basis at the option of
 both the lessor and lessee. Lease period varies from 22 months to 45
 months.
 
 4.  a) Pursuant to provisions of the Share Subscription and
 Shareholders'' Agreement dated September 11, 2007, the Company had
 allotted on April 13, 2009, 800,000 equity shares of V10 each as fully
 paid up for cash at a premium of V215 per equity share by converting
 800,000 6% Convertible cumulative preference shares (CCPS) of Rs. 225
 each to First Rand (Ireland) Public Limited Company, a company
 incorporated under the laws of Ireland.
 
 b) The Company had allotted on October 13, 2007, 3,000,000 equity share
 warrants at V225 each to the promoter group and others. An amount
 equivalent to 10% of the subscription amount was received as
 application money. Each equity share warrant was convertible into 1
 (one) equity share of Rs. 10 each at a premium of V215 per equity share
 within a period of 18 months from the date of allotment. The balance
 amount was payable at the time of conversion of equity share warrants.
 3,000,000 Equity share warrants issued on preferential basis to the
 promoter group and others on October 13, 2007 had lapsed during the
 previous year, due to non-exercise of warrants. An amount equivalent to
 10% of the subscription amount which was received as application money
 (upfront money) on the above Equity share warrants amounting to Rs.
 67,500,000 was forfeited by the Company in the previous year and
 credited to Capital Reserve Account.
 
 5.  Related party disclosure:
 
 a) Related parties and their relationships:
 
 Subsidiaries A. K. Stockmart Private Limited (Wholly owned)
 
 A. K. Capital Corporation Private Limited (Wholly owned)
 
 A. K. Capital Finance Private Limited
 
 A. K. Wealth Management Private Limited (Subsidiary w.e.f.  May 12,
 2010 ) (Wholly owned)
 
 Enterprise on which key management personnel or their relatives have
 significant influence India Bond Private Limited (w.e.f. June 23, 2009
 )
 
 Key management personnel Mr. Atul Kumar Mittal
 
 Mr. Deepak Mittal
 
 Relative of key management personnel Mrs. Anshu
 
 Mr. Abhinav Kumar Mittal
 
 Notes:
 
 i.  The related party relationships have been determined on the basis
 of the requirements of the Accounting Standard (AS)-18 ''Related Party
 Disclosures'' and the same have been relied upon by the auditors.
 
 ii.  The relationships as mentioned above pertain to those related
 parties with whom transactions have taken place during the year except
 where control exists.
 
 6.  Segment information:
 
 The Company operates in a single business and geographical segment i.e.
 Providing Merchant Banking Services within India. Accordingly, no
 separate disclosures for primary business and secondary geographical
 segment are required.
 
 b) In the earlier years, the Company had erroneously charged excess
 depreciation on various fixed assets aggregating to Rs. 2,466,590 which
 has been rectified in the previous year and has been appropriately
 disclosed as prior year adjustment in the financial statements.
 
 7. There was no impairment loss on the fixed assets on the basis of
 review carried out by the management in accordance with Accounting
 Standard (AS) – 28 ''Impairment of Assets''.
 
 b) No commission is payable to Directors / Managing Director and hence,
 computation of Net Profit in accordance with Section 198, 309 and 349
 of the Companies Act, 1956 has not been given.
 
 8.  During the year, the Company has given loan to a subsidiary
 company (i.e A. K. Capital Finance Private Limited) amounting to Rs.
 650,000,000. The maximum balance outstanding during the year was Rs.
 453,439,726 and year end outstanding balance was Rs. 200,147,946.
 
 9.  Deposits include amount aggregating to Rs. 23,700,000 (previous
 year Rs. 18,900,000) given to directors of the Company as security
 deposit towards premises taken on rent. Maximum balance outstanding
 during the year Rs. 23,700,000 (previous year Rs. 18,900,000).
 
 10.  The Company has not received any intimation from its suppliers
 regarding their registration under the Micro, Small and Medium
 Enterprises Development Act, 2006, hence no disclosure has been made.
 
 11.  In the opinion of the management, current assets, loans, advances
 and deposits are approximately of the value stated, if realised in the
 ordinary course of business. The provision of all known liabilities is
 adequate and not in excess of the amount reasonably necessary.
 
 12.  Balances of certain sundry debtors, sundry creditors, loans and
 advances are subject to confirmations / reconciliation and
 consequential adjustments, if any. The management does not expect any
 material difference affecting the current year''s financial statements
 on such reconciliation / adjustments.
 
 13.  Previous year figures have been regrouped or rearranged, wherever
 considered necessary, to conform with the current year presentation.