A. Basis of Preparation of Financial Statements
 
 The financial statements are prepared under the historical cost
 convention on a going concern and accrual basis of accounting in
 accordance with the Generally Accepted Accounting Principles,
 Accounting Standards notified Under Section 211(3C) of the Companies
 Act, 1956 and the relevant provisions thereof and the applicable
 guidelines issued by the Reserve Bank of India.
 
 B. Use of Estimates
 
 The preparation of financial statements requires the management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities and disclosures of contingent liabilities as on the
 date of financial statements and the reported amount of income and
 expenses during the reporting period. Management believes that the
 estimates used in preparation of financial statements are prudent and
 reasonable, future results could differ from these estimates. Any
 revision to accounting estimates is recognised prospectively in the
 current and future periods.
 
 C. Revenue Recognition
 
 Revenue/Income and Cost/Expenditure are generally accounted on accrual
 as they are earned or incurred, except in case of significant
 uncertainties.
 
 - Fees are recognised when reasonable right of recovery is established
 and the revenue can be reliably measured and on accrual basis. The
 performance of services is measured under the proportionate completion
 method which relates the revenue to the work accomplished.
 
 - Profit/Loss from dealing in Shares & Securities are recognised on the
 day of confirmation of transaction.
 
 - Dividend is accounted when the right to receive payment is
 established.
 
 - Interest and Other Income are accounted on accrual basis.
 
 - Revenue figures exclude Service Tax component, if recoverable.
 
 D. Fixed Assets
 
 All Fixed Assets are stated at cost of acquisition net of recoverable
 taxes and includes any amount attributable for bringing the asset to
 its present location and working condition, less accumulated
 depreciation and impairment loss, if any. All costs, including
 borrowing costs till the assets are ready for their intended use,
 attributable to the fixed assets are capitalised.
 
 E. Depreciation
 
 Depreciation on fixed assets is provided on Straight Line Method at the
 rates prescribed by schedule XIV of the Companies Act, 1956.
 Depreciation on additions to fixed assets is provided on pro-rata basis
 from the date of addition.
 
 F. Inventories
 
 Shares and Securities are valued at cost or net realisable value
 whichever is lower cumulatively for all shares. Cost is taken on FIFO
 basis and cost includes all incidental cost of acquisition.
 
 G. Investments
 
 The company is regulated as Non-Banking Finance Company (NBFC) by the
 RBI. Accordingly, investments are classified under two categories viz.
 Current and Long Term and are valued in accordance with the RBI
 Guidelines and Accounting Standard 13 on Accounting for Investments.
 
 - Long Term Investments are carried at cost of acquisition including
 incidental charges less provision for permanent diminution, if any, in
 value of such investments.
 
 - Current Investments are carried at cost of acquisition or net
 realisable value, whichever is lower.
 
 H. Provisions, Contingent Liabilities and Contingent Assets
 
 Provisions are recognised when the company has a present obligation as
 a result of past events, for which it is probable that a cash outflow
 will be required and reliable estimate can be made of the amount of
 obligation.  Provisions are not discounted to their present value and
 are determined, based on estimate required to settle the obligation on
 the balance sheet date. These are reviewed at each balance sheet date
 and adjusted to refect current management estimates. A disclosure for a
 Contingent Liability is made when there is a possible obligation or a
 present obligation that may, but probably will not, require an outflow
 of resources. Contingent Assets are neither recognized nor disclosed in
 the financial statements.
 
 I.  Provision for Current and Deferred Tax
 
 Provision for Current Tax is made after taking into consideration
 benefits admissible under the provisions of the Income-tax Act, 1961.
 Deferred Tax Assets/ Liabilities represents timing differences between
 accounting income and taxable income are accounted for using the tax
 rates and laws that are enacted as on the balance sheet date, and are
 recognised to the extent considered capable of being reversed in
 subsequent years. Deferred tax assets are recognised only to the extent
 there is reasonable certainty that sufficient future taxable income
 will be available, except that deferred tax assets arising due to
 unabsorbed depreciation and losses are recognised if there is virtual
 certainty that sufficient future taxable income will be available to
 realise the same.
 
 J. Earning Per Share
 
 Basic Earning per share is calculated by dividing the net profit or
 loss for the year attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the year. Diluted
 Earning per share refect the potential dilution that could occur if
 contracts to issue equity shares were exercised or converted during the
 year. Diluted earning per equity share is computed using the weighted
 average number of equity shares and dilutive potential equity shares
 outstanding during the year, except where the results are
 Anti-Dilutive.
 
 K. Cash Flow Statement
 
 Cash flows are reported using the indirect method, whereby net profit
 before tax is adjusted for the effects of transactions of a non-cash
 nature, any deferrals or accruals of past or future operating cash
 receipts or payments and item of income or expenses associated with
 investing or financing cash flows. The cash flows from operating,
 investing and financing activities of the company are segregated. Cash
 and cash equivalents include cash in hand, balances with banks and
 money at call and short notice but does not include interest accrued on
 fixed deposits.
 
 L. Impairment of Assets
 
 The carrying amount 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 recognised whenever the carrying amount
 of an asset exceeds its estimated recoverable amount. The recoverable
 amount is greater of the asset''s net selling price or value in use. In
 assessing the value in use, the estimated future cash flows are
 discounted to the present value using the weighted average cost of
 capital. After impairment, depreciation is provided on the revised
 carrying amount of the assets over its remaining useful life.
 Previously recognised impairment loss is further provided or reversed
 depending on changes in circumstances.
 
 M. Employee Benefits
 
 Short-Term Employee Benefits are recognised as an expense at the
 undiscounted amount in the profit and loss account for the year in
 which the related service is rendered. Long Term Employee Benefits and
 Post Employment Benefits, both funded and unfunded, are recognised as
 an expense in the profit and loss account for the year in which the
 employee has rendered services based on acturial valuation at the end
 of the year using the Projected Unit Credit Method.
 
 N. Foreign Currency Transactions
 
 Foreign currency transactions are recorded at the rates of exchange
 prevailing on the date of the transactions.  Exchange differences, if
 any, arising out of transactions settled during the year are recognised
 in the profit and loss account. Monetary assets and liabilities
 denominated in foreign currencies as at the balance sheet date are
 reported using the closing rates, the exchange differences, if any, are
 recognised in the profit and loss account and related assets and
 liabilities are accordingly restated in the balance sheet.