A.  BASIS OF ACCOUNTING
 
 The accounts are prepared in accordance with the accounting principles
 generally accepted in India and are in line with the relevant laws as
 well as the guidelines prescribed by the Department of Company Affairs
 and the Institute of Chartered Accountants of India.
 
 B.  ACCOUNTING CONVENTION
 
 The Financial Accounts, unless otherwise stated, are prepared at
 historical cost under the accrual method of accounting.
 
 C.  REVENUE RECOGNITION
 
 i.  Company recognises Brokerage Income on the basis of the date of
 trade of settlement, of respective stock exchanges.
 
 ii.  Other Income is accounted for on accrual basis.
 
 iii. The Maintenance Charges in respect of Account Holders of the
 Depository Division of the Company are accounted on prorata basis. In
 case of receipt of lifetime fees, the total amount received is
 recognized in the period of receipt.
 
 iv.  Incentive on primary market subscription - mobilisation is
 accounted on the basis of intimation received by the Company.
 
 D.  FIXED ASSETS
 
 i.  Fixed Assets are stated at cost of acquisition less accumulated
 depreciation.
 
 ii.  Depreciation on Fixed Assets has been provided on Straight Line
 Method at the rates specified in Schedule XIV of the Companies Act,
 1956 on pro rata basis which in the opinion of the management are
 reflective of the estimated useful lives of fixed asset.
 
 E.  INVESTMENTS
 
 Investments are classified into current investments and non-current
 investments. Investments which are intended to be held for more than
 one year are classified as non- current investments and investments
 which are intended to be held for less than one year are classified as
 current investments. Investments are accounted at cost and any decline
 in the carrying value other than temporary in nature is provided for.
 
 F.  RETIREMENT BENEFITS
 
 i.  Gratuity liability is a defined benefit obligation and is wholly
 unfunded. The Company accounts for liability for future gratuity
 benefits based on actuarial assumptions.
 
 ii.  Provident fund is a defined contribution scheme and the
 contributions as required by the statute are charged to the Profit and
 Loss Account as incurred.
 
 G.  TAXES ON INCOME
 
 a.  Current Tax is the amount of tax payable on the taxable income for
 the year determined in accordance with the provisions of the Income Tax
 Act, 1961.
 
 b.  Deferred Tax is recognized on timing differences; being the
 differences between the taxable incomes and accounting income that
 originate in one period and are capable of reversal in one or more
 subsequent periods. Deferred Tax Assets subject to the consideration of
 prudence are recognized and carried forward only to the extent there is
 a reasonable certainty that sufficient Futures taxable income will be
 available against which such deferred tax assets can be realized.
 
 H.  EARNING PER SHARE
 
 The Company reports Basic and Diluted Earning Per Share in accordance
 with Accounting Standard -20, Earning Per Share issued by The
 Institute of Chartered Accountants of India. Basic Earning Per Share is
 computed by dividing net profit after tax by the weighted average
 number of equity shares outstanding for the period. Diluted Earning Per
 Share is computed using the weighted average number of equity shares
 and dilutive potential equity shares outstanding during the period.
 
 I.  IMPAIRMENT OF ASSETS
 
 Impairment loss, if any, is provided to the extent the carrying amount
 of assets exceeds their recoverable amount.  Recoverable amount is
 higher of an asset''s net selling price and its value in use. Value in
 use is the present value of estimated Futures cash flows expected to
 arise from the continuing use of an asset and from its disposal at the
 end of its useful life.