1.      NATURE OF OPERATIONS
 
 Centrum Capital Limited (the ''Company'') is an Investment Banking
 Company and a Category-I Merchant Banker. The Company is engaged in
 equity capital market, private equity, corporate finance, project
 finance, stressed asset resolution and offers a complete gamut of
 financial services. The Company is also engaged in trading of bonds.
 
 2.  STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
 
 a) Basis of preparation
 
 The financial statements have been prepared to comply in all material
 respects with the Notified accounting standard by Companies (Accounting
 Standards) Rules, 2006 and the relevant provisions of the Companies
 Act, 1956 (''the Act''). The financial statements have been prepared under
 the historical cost convention on an accrual basis except in case of
 assets for which provision for impairment is made and revaluation is
 carried out. The accounting policies have been consistently applied by
 the Company and are consistent with those used in the previous year.
 
 b) Use of estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the results of operations during the reporting
 period end. Although these estimates are based upon management''s best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 c) Fixed Assets
 
 Fixed assets are stated at cost less accumulated depreciation and
 impairment losses if any. Cost comprises the purchase price and any
 attributable cost of bringing the asset to its working condition for
 its intended use. Borrowing costs relating to acquisition of fixed
 assets which takes substantial period of time to get ready for its
 intended use are also included to the extent they relate to the period
 till such assets are ready to be put to use.
 
 d) Depreciation
 
 Depreciation on fixed assets is provided on straight line basis at the
 rates based on estimated useful life of the asset which is envisaged by
 schedule XIV of the Companies Act, 1956, except for leasehold
 improvements. Leasehold improvements are amortised over a period of 9
 years.
 
 e) Impairment
 
 The carrying amounts of assets are reviewed at each balance sheet date
 if there is any indication of impairment based on internal / external
 factors.  An impairment loss is recognized wherever the carrying amount
 of an asset exceeds its recoverable amount. The recoverable amount is
 the greater of the asset net selling price and value in use. In
 assessing value in use, the estimated future cash flows are discounted
 to their present value at the weighted average cost of capital.
 
 f) Intangible Assets
 
 Goodwill
 
 Goodwill is amortized using the straight-line method over a period of
 ten years.
 
 Computer Software''s
 
 The Company capitalises software and related implementation cost where
 it is reasonably estimated that the software has an enduring useful
 life.  Software''s including operating system licenses are amortized over
 their estimated useful life of 6 – 9 years.
 
 g) Leases
 
 Leases where the lesser effectively retains substantially all the risks
 and benefits of ownership of the leased term, are classified as operating
 leases.  Operating lease payments are recognized as an expense in the
 Profit and Loss account on a straight-line basis over the lease term.
 
 h) Investments
 
 Investments that are readily realizable and intended to be held for not
 more than a year are classified as current investments. All other
 investments are classified as long-term investments. Current investments
 are carried at lower of cost and fair value determined on an individual
 investment basis.  Long-term investments are carried at cost. However,
 provision for diminution in value is made to recognize a decline other
 than temporary in the value of the investments.
 
 i) Inventories
 
 Inventories are valued as lower of cost and net realizable value. Net
 realizable value is the estimated selling price in the ordinary course
 of business.
 
 j) Revenue recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 Syndication fees
 
 Syndication fees and brokerage income are accounted on achievements of
 the milestones as per the mandates / agreements with the clients, where
 there are no mandates / agreements, as per the terms confirmed and
 agreed by clients. Non refundable upfront fees received from the
 clients is accounted as income immediately. In the event of project
 stipulates performance measures, revenue is considered earned when such
 performance measure have been completed.
 
 Income from trading in bonds
 
 Income from trading in bonds is accounted when the risk and rewards of
 ownership of the bonds are passed to the customer, which is generally
 on sale of bonds.
 
 Interest income
 
 Revenue is recognized on a time proportion basis taking into account
 the amount outstanding and the rate applicable.
 
 Dividends
 
 Revenue is recognized when the shareholders'' right to receive payment
 is established by the balance sheet date. Dividend from subsidiaries is
 recognized even if same are declared after the balance sheet date but
 pertains to period on or before the date of balance sheet as per the
 requirement of schedule VI of the Companies Act, 1956.
 
 Profit / Loss on sale of investments
 
 Profit or loss on sale of investments is determined on the basis of the
 weighted average cost method.
 
 k) Foreign currency transactions
 
 (i) Initial Recognition
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency at the date of the
 transaction.
 
 (ii) Conversion
 
 Foreign currency monetary items are reported using the closing rate.
 Non-monetary items which are carried in terms of historical cost
 denominated in a foreign currency are reported using the exchange rate
 at the date of the transaction; and non-monetary items which are
 carried at fair value or other similar valuation denominated in a
 foreign currency are reported using the exchange rates that existed
 when the values were determined.
 
 (iii) Exchange Differences
 
 Exchange differences arising on the settlement of monetary items or on
 reporting Company''s monetary items at rates different from those at
 which they were initially recorded during the year, or reported in
 previous financial statements, are recognised as income or as expenses
 in the year in which they arise. Exchange differences arising in
 respect of fixed assets acquired from outside India on or before
 accounting period commencing after December 7, 2006 are capitalized as
 a part of fixed asset.
 
 l) Retirement and other employee benefits
 
 Retirement benefits in the form of Provident Fund is a defined
 contribution scheme and the contributions are charged to the Profit and
 Loss Account of the year when the contributions to the fund is due.
 There are no other obligations other than the contribution payable to
 the fund.
 
 (i) Gratuity liability is a defined benefit obligation and is provided
 for on the basis of an actuarial valuation on Projected Unit Credit
 Method made at the end of the financial year. The Company makes
 contribution to a scheme administered by the Life Insurance Corporation
 of India (LIC) to discharge the gratuity liability to employees. The
 Company records its gratuity liability based on an actuarial valuation
 made by an independent actuary as at year end. Contribution made to the
 LIC fund and provision made for the funded amounts are expensed in the
 books of accounts.
 
 (ii) Long term compensated absences are provided for based on actuarial
 valuation. The actuarial valuation is done as per Projected Unit Credit
 Method.
 
 (iii) All actuarial gains / losses are immediately taken to the Profit
 and Loss account and are not deferred.
 
 m) Income taxes
 
 Tax expense comprises of current and deferred tax. Current income tax
 is measured at the amount expected to be paid to the tax authorities in
 accordance with the Indian Income Tax Act. Deferred income taxes
 reflects the impact of current year timing differences between taxable
 income and accounting income for the year and reversal of timing
 differences of earlier years.
 
 Deferred tax is measured based on the tax rates and the tax laws
 enacted or substantively enacted at the balance sheet date. Deferred
 tax assets and deferred tax liabilities are offset, if a legally
 enforceable right exists to set off current tax assets against current
 tax liabilities and the deferred tax assets and deferred tax
 liabilities relate to the taxes on income levied by same governing
 taxation laws. Deferred tax assets are recognized only to the extent
 that there is reasonable certainty that sufficient future taxable income
 will be available against which such deferred tax assets can be
 realized.
 
 In situations where the Company has unabsorbed depreciation or carry
 forward tax losses, all deferred tax assets are recognized only if
 there is virtual certainty supported by convincing evidence that they
 can be realized against future taxable profits.
 
 At each balance sheet date the Company re-assesses unrecognized
 deferred tax assets. It recognizes unrecognised deferred tax assets to
 the extent that it has become reasonably certain or virtually certain,
 as the case may be that sufficient future taxable income will be
 available against which such deferred tax assets can be realised.
 
 The carrying amount of deferred tax assets are reviewed at each balance
 sheet date. The Company writes-down the carrying amount of a deferred
 tax asset to the extent that it is no longer reasonably certain or
 virtually certain, as the case may be, that sufficient future taxable
 income will be available against which deferred tax asset can be
 realised. Any such write-down is reversed to the extent that it becomes
 reasonably certain or virtually certain, as the case may be, that
 sufficient future taxable income will be available.
 
 n) Segment Reporting Policies
 
 Identification of segments :
 
 The Company''s operating businesses are organized and managed separately
 according to the nature of products and services provided, with each
 segment representing a strategic business unit that offers different
 products and serves different markets. The analysis of geographical
 segments is based on the areas in which major operating divisions of
 the Company operate.
 
 Allocation of common costs:
 
 Common allocable costs are allocated to each segment according to the
 relative contribution of each segment to the total common costs.
 
 Unallocated items:
 
 Includes general corporate income and expense items which are not
 allocated to any business segment.
 
 o) Earnings Per Share
 
 Basic earnings per share are 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.
 
 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 are
 adjusted for the effects of all dilutive potential equity shares.
 
 p) Provisions
 
 A provision is recognized when an enterprise has a present obligation
 as a result of past event; it is probable that an outflow of resources
 will be required to settle the obligation, in respect of which a
 reliable estimate can be made. Provisions are not discounted to its
 present value and are determined based on best estimate required to
 settle the obligation at the balance sheet date. These are reviewed at
 each balance sheet date and adjusted to reflect the current best
 estimates.
 
 q) Cash and Cash equivalents
 
 Cash and cash equivalents in the balance sheet comprise cash at bank
 and in hand.
 
 r) Borrowing costs
 
 Borrowing costs are recognized as an expense in the period in which
 these are incurred.