1.  SEGMENT INFORMATION
 
 Business Segment
 
 As of June 30, 2011, the Company has for the purpose of segment
 reporting identified two major business i.e. Investment Banking and
 Trading in Bonds. Segments have been identified and reported based on
 the nature of operation involved, the risks and returns, the
 organization structure and the internal financial reporting systems.
 
 Segment information for secondary segment reporting (by geographical
 segment).
 
 Company''s operations are mainly conducted in India. Company has a
 representative office at Dubai. Consequently the commercial risks and
 returns involved the basis of geographic segmentation are relatively
 insignificant. Accordingly, secondary segment disclosures based on
 geographic segments have not been reported.
 
 Segment wise details are given in Annexure -1.
 
 2.  OPERATING LEASE
 
 i) The Company has entered into cancelable leasing arrangements for
 corporate and branch offices and residential premises. The lease rentals
 of Rs. 16,803,044/- (previous year Rs. 9,612,922/-) have been included
 under the head Rent under Schedule 14 of Profit and Loss account.
 
 GENERAL DESCRIPTION OF COMPANY''S SIGNIFICANT LEASING ARRANGEMENT:
 
 Corporate Office premises in Mumbai are obtained on operating lease. The
 lease rent payable (including amenities) is Rs. 7,143,591/- per month for
 the period July 1, 2010 to December 9, 2010.The lease rent was revised
 in December 2010 and consequently the lease rent payable is Rs.
 7,500,772/- per month for the period December 10, 2010 to June 30,
 2011. The lease term is for a period of 9 years with a lock in period
 of 5 years and there after as per the mutual agreement between the
 lesser and the Company. There is an escalation clause in the lease
 agreement @ 5 % every year which will be reviewed mutually every year
 by the Company and the lesser hence effect of escalation is not taken
 in the above disclosure. There are no subleases.
 
 3.  INTEREST IN JOINT VENTURE
 
 CentrumDirect Limited (CDL) and Future Capital Securities Limited
 (FCSL) were Joint Ventures of the Company until March 28, 2011.
 Subsequent to which CDL was converted into a subsidiary & FCSL was sold
 off. Further, taking into account materiality and other factors by the
 management, financial statements of CDL and FCSL were drawn up to March
 31, 2011. Accordingly, Profit & Loss account figures in the following
 disclosure have been included only up to for a period of nine months
 ended March 31, 2011. Further, during the year, the Company acquired
 50% interest in Commonwealth Centrum Advisors Limited (w.e.f. February
 15, 2011). Accordingly, the following disclosures include Balance Sheet
 as well as Profit & Loss Account numbers of Commonwealth Centrum
 Advisors Limited.
 
 4.      (A) CONTINGENT LIABILITIES NOT PROVIDED FOR
 
                                           As at June 30, As at June 30,
 Particulars
                                                    2011           2010
 
 Corporate Guarantees given 
 by the Company:
 
 (i) Associate                               410,100,000    660,100,000
 
 (ii) Subsidiary
 
 Limit                                       660,000,000    510,000,000
 
 Outstanding                                 422,539,229    327,177,342
 
 (iii) Others
 
 Limit                                       100,000,000        -
 
 Outstanding                                  77,500,000        -
 
 Partly paid equity shares of Essel-Centrum 
 Holdings Limited                              4,000,000      4,000,000
 
 Income Tax in respect of Assessment Year 
 2007-2008 in respect of which the Company 
 has gone on appeal                            1,323,224      1,323,224
 
 Income Tax in respect of Assessment Year 
 2008-2009 in respect of which the Company 
 has gone on appeal                            2,696,060        -
 
 Capital Commitments                           1,032,327        -
 
 
 (B) In view of assessment order received from income tax authorities
 demanding Rs. 2,696,060/- towards liability on account of disallowance
 under section 14A of Income Tax Act, 1961 for assessment year
 2008-2009. Based on the facts / merits of the case under question, the
 Company has duly preferred an appeal and in view of which no provision
 is considered necessary by the management of the Company.
 
 5.  GRATUITY AND POST EMPLOYMENT BENEFIT PLANS
 
 The Company has a defined benefit gratuity plan. Every employee who has
 completed 5 years or more of service gets a gratuity on leaving the
 services of the Company, at 15 days salary (last drawn basic salary)
 for each completed year of service. The Company makes contribution to
 an approved gratuity fund which is covered under the group gratuity
 scheme of the Life Insurance Corporation of India.
 
 The following table summarizes the components of net benefit expense
 recognized in the Profit and Loss account and funded status and amount
 recognized in the balance sheet for gratuity.
 
 6.  DERIVATIVE INSTRUMENTS AND UN-HEDGED FOREIGN CURRENCY EXPOSURE
 
 i.  There were no contracts outstanding as at balance sheet date.
 
 ii.  Particulars of Unhedged Foreign Currency Exposure are detailed
 below at the exchange rate prevailing as at balance sheet date
 
 Note: As the future liability for gratuity and leave encashment is
 provided on an actuarial basis for the Company as a whole, the amount
 pertaining to the directors is not ascertainable and, therefore, not
 included above.
 
 (B) The Company has paid excess remuneration aggregating to Rs.
 1,270,079/- during the year under consideration to the Managing
 Director and Whole Time Director of the Company, which is subject to
 the approval of the Central Government of India.
 
 7.  DEFERRED TAX ASSET / LIABILITY
 
 In accordance with the Accounting Standard 22 on Accounting for Taxes
 on Income, the Company has made adjustments in its accounts for
 deferred tax liabilities / assets.
 
 8. (B) EXPENDITURE IN FOREIGN CURRENCY (ACCRUAL BASIS)
 
 9. EARNINGS PER SHARE
 
 10. The Company has initiated the process of identification of
 ''suppliers'' registered under the Micro, Small and Medium Enterprises
 Development (''MSMED'') Act, 2006, by obtaining confirmations from all
 suppliers. The Company has not received intimation from all the
 ''suppliers'' regarding their status under MSMED Act, 2006 and hence
 disclosures if any, relating to amounts unpaid as at the year end
 together with interest paid/ payable as required have not been
 furnished.
 
 Based on various factors taken into account by the management of the
 Company viz. debtors confirmation, post-dated cheque, pledge of shares
 in a few cases and management discussion with several debtors in other
 cases; the above debtors, in view of the management are fully
 recoverable and accordingly the same need not be subject to any further
 provisioning.
 
 11.  Based on the audited balance sheet of Centrum Broking Private
 Limited (''CBPL'' - audited by a frm of Chartered Accountants other than
 S.  R. Batliboi & Co.) as on June 30, 2011, it has accumulated losses
 of Rs. 389,035,483/- that has resulted into erosion of its net worth.
 During the current financial year ended on June 30, 2011, CBPL has
 incurred losses of Rs. 146,321,557/-. Accordingly, based on 
 certification from independent valuer on the basis of financial 
 estimates provided by the management of CBPL conforming fair valuation 
 higher than the cost of Investments in CBPL in the books of the Company 
 and which is duly approved by the Audit Committee of the Board of 
 Directors of the Company, the management of the Company believes that 
 no impairment is necessitated in respect of said Investments.
 
 12. The Company has delayed submission of its annual financial results
 to the stock exchange. The said delay has been duly informed to the
 stock exchange by the Company.
 
 13. Additional Information pursuant to the provisions of paragraphs 3,
 4C and 4D of Part II of Schedule VI of the Companies Act,1956.
 
 Note: Figures in brackets are for previous year.
 
 14.  During the year, 50% share holding of CentrumDirect Limited,
 formerly known as FCH CentrumDirect Limited (CDL) was transferred from
 Future Capital Holdings Limited (FCH) to Centrum Capital Limited (CCL),
 in accordance with the Share Purchase Agreement executed on March 29,
 2011 between CCL, FCH & CDL. This has resulted in the change of CDL
 from being a Joint Venture (by virtue of control till previous year) to
 100% subsidiary of CCL w.e.f. March 29, 2011.
 
 15.  During the year, 50% share holding of Future Capital Securities
 Limited (FCSL) [formerly known as FCH Centrum Wealth Managers Limited]
 was transferred from Centrum Capital Limited (CCL) to Future Capital
 Holdings Limited (FCH), in accordance with the Share Purchase Agreement
 executed on March 29, 2011 between FCH, CCL & FCSL. As a result, FCSL
 has ceased to be a Joint Venture (by virtue of control till previous
 year) w.e.f. March 29, 2011. This has resulted in a loss of Rs.
 4,498,400/-.
 
 16.  Pending approval from the Bombay Stock Exchange for listing of
 105,783 equity shares allotted to Future Capital Holdings Limited
 during the current year, confirmation pertaining to issued & paid up
 capital received from the Registrar & Transfer Agent stands at
 6,828,096 equity shares as against actual issued and paid up capital of
 6,933,879 equity shares.
 
 17.  The Company has made advances towards pre-incorporation expenses
 for setting up subsidiaries in USA and UK namely Centrum Capital
 Holdings LLC and Centrum Securities (Europe) Limited amounting to USD
 98,750 INR equivalent Rs. 4,476,812/- and GBP 53,246 INR equivalent Rs.
 3,866,725/- respectively.
 
 18.  PREVIOUS YEAR COMPARATIVES
 
 Previous year''s figures have been regrouped / rearranged wherever
 necessary to conform to current year''s classification.