a.  Basis of preparation of financial statements:
 
 The accompanying financial statements have been prepared under the
 historical cost convention, in accordance with Generally Accepted
 Accounting Principles in India and the provisions of the Act.
 
 b.  Use of estimates:
 
 The preparation of financial statements in conformity with Generally
 Accepted Accounting Principles requires estimates and assumptions to be
 made that affect the reported amounts of assets and liabilities and
 disclosure of contingent liabilities on the date of the financial
 statements and the reported amounts of revenues and expenses during the
 reporting period. Actual results could differfrom those estimates and
 difference between the actual results and estimates are recognised in
 the period in which the results are known or materialise.
 
 c.  Fixed assets and depreciation-.
 
 Tangible assets
 
 Fixed assets are stated at their original cost of acquisition less
 accumulated depreciation and accumulated impairment losses, if any.
 
 Depreciation
 
 Except for items forming part of (ii) below, depreciation is provided,
 pro rata for the period of use, by the straight line method (SLM),
 based on managements estimate of useful lives of the fixed assets, or
 at the SLM rates prescribed in Schedule XIV to the Act whichever is
 higher, at the following annual rates:
 
 i. Leasehold improvements are depreciated over the total period of the
 lease including the renewal periods (if any). Assets associated with
 leased premises are depreciated on straight line basis over the period
 of the lease or at the rates mentioned above, whichever is lower.
 
 ii. Assets costing less than the rupee equivalent of USD 1,500 are
 fully depreciated on purchase.
 
 Intangible assets
 
 The Company capitalises software where it is reasonably estimated that
 the software has an enduring useful life.  Software is amortised over
 an estimated useful life of 3 years. BSE membership card is amortised
 on straight- line basis over a period of 10 years.
 
 Impairment of assets
 
 An asset is considered as impaired in accordance with Accounting
 Standard 28 on Impairment of Assets, when at balance sheet date there
 are indications of impairment and the carrying amount of the asset, or
 where applicable the cash generating unit to which the asset belongs,
 exceeds its recoverable amount (i.e.  the higher of the assets net
 selling price and value in use). The carrying amount is reduced to the
 recoverable amount and the reduction is recognised as an impairment
 loss in the profit and loss account.
 
 d.  Investments:
 
 Investments are classified as current or long-term in accordance with
 Accounting Standard 13 on Accounting for Investments. Current
 investments are stated at lower of cost and fair value. Any reduction
 in the carrying amount and any reversals of such reductions are charged
 or credited to the profit and loss account.
 
 Long-term investments are stated at cost. Provision is made to
 recognise a decline, other than temporary, in the value of such
 investments.
 
 e.  Securities and derivative instruments:
 
 Securities held as stock-in-trade are valued at lower of cost and
 market value by category of security held.
 
 Underwriting commission earned is reduced from the cost of securities
 acquired upon devolvement on a proportionate basis.
 
 Equity index / stock futures are valued at lower of cost and market
 value.
 
 Equity index / stock options are valued at lower of cost and market
 value.
 
 f.  Employee benefits:
 
 Short-term employee benefits (benefits which are payable within twelve
 months after the end of the period in which the employees render
 service) are measured at cost. Long-term employee benefits (benefits
 which are payable after the end of twelve months from the end of the
 period in which the employees render service) and post employment
 benefits (benefits which are payable after completion of employment)
 are measured on a discounted basis by the Projected Unit Credit Method
 on the basis of annual third party actuarial valuations.
 
 Contributions to provident fund, a defined contribution plan are made
 in accordance with the statute, and are recognised as an expense when
 employees have rendered service entitling them to the contributions.
 
 The costs of providing benefits under defined benefit plans are
 determined using the Projected Unit Credit Method on the basis of a
 third party actuarial valuation at each balance sheet date. The leave
 encashment and gratuity benefits obligations recognised in the balance
 sheet represent the present value of the obligations as reduced by the
 fair value of plan assets, if any. Any asset resulting from this
 calculation is limited to the discounted value of any economic benefits
 available in the form of refunds from the plan or reductions in future
 contributions to the plan.
 
 Actuarial gains and losses are recognised immediately in the profit and
 loss account.
 
 g.  Foreign currency transactions:
 
 Foreign currency transactions ar.» recorded at the exchange rates
 prevailing on the date of the transaction.  Monetary foreign currency
 assets and liabilities are reported using the exchange rate prevailing
 at the balance sheet date. All exchange differences are dealt with in
 the profit and loss account. Non-monetary items are carried at
 historical cost using the exchange rates on the date of the
 transaction. Outstanding foreign exchange forward contracts are marked
 to market.  Losses are recognised in the profit and loss account; gains
 are ignored.
 
 h.  Borrowing costs
 
 Borrowing costs primarily include interest and related costs of amounts
 borrowed for the revenue operations of the company. These are expensed
 to revenue on a time proportionate basis.
 
 i.  Operating lease
 
 Operating lease payments are recognised as an expense in the profit and
 loss account on a straight-line basis over the lease term.
 
 j.  Earnings per share:
 
 The company reports basic and diluted earnings per share (EPS) in
 accordance with Accounting Standard 20 on Earnings Per Share. Basic
 EPS is computed 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 EPS is computed 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 as adjusted for the effects of all dilutive
 potential equity shares, except where the results are anti-dilutive.
 
 k.  Taxes on income:
 
 Taxes on income are accounted for in accordance with Accounting
 Standard 22 on Accounting for Taxes on Income and comprise current
 and deferred tax.
 
 Current tax is measured at the amount expected to be paid to or
 recovered from the taxation authorities, using the applicable tax rates
 and tax laws.
 
 The tax effect of the timing differences that result between taxable
 income and accounting income and are capable of reversal in one or more
 subsequent periods are recorded as deferred tax asset or deferred tax
 liability.  They are measured using the substantively enacted tax rates
 and tax regulations. The carrying amount of deferred tax assets at each
 balance sheet date is reduced to the extent that it is no longer
 reasonably certain that sufficient future taxable income will be
 available against which the deferred tax asset can be realised.
 
 Fringe Benefits Tax (FBT) payable under the provisions of section 115WC
 of the Income-tax Act, 1961 is accounted for in accordance with the
 Guidance Note on Accounting for Fringe Benefits Tax issued by The
 Institute of Chartered Accountants of India and regarded as an
 additional income tax and considered in determination of the profits
 for the year.
 
 Tax on distributed profits payable in accordance with the provisions of
 section 115-0 of the Income-tax Act, 1961 is accounted for in
 accordance with the Guidance Note on Accounting for Corporate Dividend
 Tax and regarded as a tax on distribution of profits and not
 considered in determination of the profits for the year.
 
 l.  Cash flow statement:
 
 The cash flow statement is prepared by the indirect method set out in
 Accounting Standard 3 on Cash Flow Statements and presents the cash
 flows by operating, investing and financing activities of the company.
 
 Cash and cash equivalents presented in the cash flow statement consist
 of cash on hand, deposits with banks and current investments in liquid
 mutual funds, made as part of the Companys normal business operations.
 
 m.  Premium on redemption of preference shares:
 
 Premium on redemption of preference shares is provided for in
 accordance with the terms of the issue on the uncalled balance at the
 end of the second, third and fourth year from the date of allotment
 (see note 3).
 
 The securities premium account to the extent available is applied in
 providing for the redemption premium in accordance with section 78 of
 the Act. Balance premium is considered as an appropriation in the
 profit and loss account.
 
 n.  Contingent liabilities:
 
 Contingent liabilities as defined in Accounting Standard 29 on
 Provisions, Contingent Liabilities and Contingent Assets are
 disclosed by way of notes to the accounts.  Disclosure is not made if
 the possibility of an outflow of future economic benefits is remote.
 Provision is made if it is probable that an outflow of future economic
 benefits will be required to settle the obligation.