a) Basis of Preparation of Financial Statements:
 
 The financial statements are prepared under the historical cost
 convention, on an accrual basis and in accordance with the Generally
 Accepted Accounting Principles in India and Accounting Standards as
 notified under the Companies (Accounting Standards) Rules, 2006.
 
 b) Use of Estimates:
 
 The preparation of financial statements in conformity with the
 Generally Accepted Accounting Principles requires estimates and
 assumptions to be made that affect the reported amount of assets and
 liabilities on the date of the financial statements and the reported
 amount of revenues and expenses during the reporting period. Difference
 between the actual result and estimates are recognised in the period in
 which the results are known / materialised.
 
 c) Revenue Recognition:
 
 Revenue from brokerage activities is accounted for on the trade date of
 transaction.
 
 Revenue from interest charged to customers on margin funding is
 recognised on a daily/ monthly basis up to the last day of accounting
 period.
 
 Depository income is accounted on accrual basis as and when the right
 to receive the income is established.
 
 Revenue from interest from fixed deposits is recognised on accrual
 basis.
 
 Commission on mutual fund is recognised on accrual basis.
 
 Income from fee based advisory services is recognised on an accrual
 basis.
 
 Dividend income on equity shares is recognised when the right to
 receive the dividend is unconditional at the Balance Sheet date.
 
 Dividend Income on units of Mutual Fund is recognised when the right to
 receive the dividend is unconditional at the Balance Sheet date and any
 gains/losses are recognised on the date of redemption.
 
 Interest income on inter corporate deposits is recognised on accrual
 basis.
 
 d) Income from arbitrage and trading in securities and derivatives
 comprises profit/loss on sale of securities held as stock-in-trade and
 profit/loss on equity derivative instruments. Profit/loss on sale of
 securities is determined based on the weighted average cost of the
 securities sold. Profit/loss on equity derivative transactions is
 accounted for based on the ''Guidance Note on Accounting for Equity
 Index and Equity Stock Futures and Options'' issued by the Institute of
 Chartered Accountants of India which is more fully explained in i) and
 ii) below :-
 
 Equity Index / Stock Futures:
 
 In accordance with Guidance Note on Accounting for Equity Index and
 Equity Stock Futures and Options issued by The Institute of Chartered
 Accountants of India
 
 (i) Initial Margin-Equity Index/ Stock Futures, representing the
 initial margin paid, and margin deposits representing additional margin
 paid over and above the initial margin, for entering into a contract
 for equity index/ stock futures which are released on final settlement
 / squaring-up of the underlying contract, are disclosed under Loans and
 Advances.
 
 (ii) Equity Index / Stock Futures are marked-to- market on a daily
 basis. Debit or credit balance disclosed under Loans and Advances or
 Current Liabilities, respectively, in the Mark-to-Market Margin-Equity
 Index/ Stock Futures Account, represents the net amount paid or
 received on the basis of movement in the prices of index/ stock futures
 till the Balance Sheet date.
 
 (iii) As on the Balance Sheet date, profit/loss on open positions in
 Equity index/ stock futures is accounted for as follows:
 
 Credit balance in the Mark-to-Market Margin-Equity Index/Stock Futures
 Account, being the anticipated profit, is ignored and no credit for
 the same is taken in the Profit and Loss Account.
 
 - Debit balance in the Mark-to-Market Margin-Equity Index/Stock
 Futures Account, being the anticipated loss, is adjusted in the Profit
 and Loss Account.
 
 (iv) On final settlement or squaring-up of contracts for equity
 index/stock futures, the profit or loss is calculated as the difference
 between the settlement/squaring-up price and the contract price.
 Accordingly, debit or credit balance pertaining to the
 settled/squared-up contract in Mark-to-Market Margin-Equity Index/
 Stock Futures Account after adjustment of the provision for
 anticipated losses is recognised in the Profit and Loss Account. When
 more than one contract in respect of the relevant series of equity
 index/stock futures contract to which the squared-up contract pertains
 is outstanding at the time of the squaring-up of the contract, the
 contract price of the contract so squared-up is determined using the
 weighted average cost method for calculating the profit/loss on
 squaring-up.
 
 e) Stock-in-trade:
 
 Stock-in-trade comprising of securities held for the purposes of
 trading is valued at lower of cost and market value. Profit or loss on
 sale of such securities is determined using weighted average cost
 method.
 
 f) Commercial Papers:
 
 The liability is recognised at face value of the commercial paper at
 the time of issue of commercial paper. The discount on issue of
 commercial paper is amortised over the tenure of the instrument.
 
 g) Fixed Assets:
 
 (i) Tangible Assets:
 
 Tangible fixed assets are stated at cost, net of tax / duty credits
 availed, if any, less accumulated depreciation / impairment losses, if
 any. Cost includes original cost of acquisition, including incidental
 expenses related to such acquisition and installation.
 
 (ii) Intangible Assets:
 
 Intangible assets are stated at cost, net of tax / duty credits
 availed, if any, less accumulated amortisation / impairment losses, if
 any. Cost includes original cost of acquisition, including incidental
 expenses related to such acquisition and installation.
 
 h) Depreciation / Amortisation:
 
 Depreciation on tangible fixed assets is provided on straight-line
 method at the rates specified in Schedule XIV to the Companies Act,
 1956.  Depreciation on additions to fixed assets is provided on
 pro-rata basis from the date the asset is put to use.  Depreciation on
 sale / deduction from fixed assets is provided for up to the date of
 sale / deduction / scrapping, as the case may be. Assets taken on
 finance lease are depreciated over the tenure of the lease. Assets
 costing Rs. 5,000 or less per item are fully depreciated in the year of
 purchase.
 
 Intangible assets consisting of Membership Rights of the Bombay Stock
 Exchange Limited are amortised on straight-line method basis over a
 period of five years from the date when the rights became available for
 use.
 
 Intangible assets consisting of Software are amortised on a straight
 line basis over a period of four years from the date when the assets
 are available for use.
 
 i) Impairment of Assets:
 
 The Company assesses at each Balance Sheet date whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the Company estimates the recoverable amount of the asset.
 Recoverable amount is higher of an asset''s net selling price and its
 value in use. If such recoverable amount of the asset or the
 recoverable amount of the cash generating unit to which the asset
 belongs is less than its carrying amount, the carrying amount is
 reduced to its recoverable amount. The reduction is treated as an
 impairment loss and is recognised in the Profit and Loss Account. If at
 the Balance Sheet date there is an indication that if a previously
 assessed impairment loss no longer exists, the recoverable amount is
 reassessed and the asset is reflected at the recoverable amount.
 
 j) Investments:
 
 Investments are classified as long term and current investments. Long
 term investments are carried at cost less provision, if any, for
 diminution other than temporary in their value. Current investments are
 valued at lower of cost and fair value.
 
 k) Foreign Currency Transactions:
 
 i. Transactions denominated in foreign currencies are recorded at the
 exchange rates prevailing on the date of transaction.
 
 ii. Monetary items denominated in foreign currencies at the year end
 are translated at year end rates.
 
 iii. Non monetary foreign currency items are carried at cost.
 
 iv. Any income or expense on account of exchange difference either on
 settlement or on translation is recognized in the Profit and Loss
 Account.
 
 I) Employee Benefits:
 
 The Company has a defined contribution plan namely Provident Fund.
 Annual contribution to Employees Provident Fund Organisation is charged
 to Profit and Loss Account. The Company has unfunded defined benefit
 plans namely long term compensated absences and gratuity for all
 eligible employees, the liability for which is determined on the basis
 of an actuarial valuation at the end of the year using the Projected
 Unit Credit Method.  Actuarial gains and losses comprise experience
 adjustments and the effects of change in actuarial assumptions and are
 recognised in Profit and Loss Account as income or expenses,
 
 m) Deferred Employee Stock Compensation Cost:
 
 The Company follows intrinsic value method as per Guidance Note on
 Accounting for Employee Share- based Payments issued by The Institute
 of Chartered Accountants of India for accounting for Employee Stock
 Options granted. Deferred employee stock compensation cost for stock
 options are recognised and measured by the difference between the
 intrinsic value of the Company''s shares at the stock options grant date
 and the exercise price to be paid by the option holders. The
 compensation expense is amortised over the vesting period of the
 options.  The fair value of options for disclosure purposes is measured
 on the basis of a valuation performed in respect of stock options
 granted.
 
 n) Taxes on Income:
 
 Current tax is determined as the tax payable in respect of taxable
 income for the year and is computed in accordance with relevant tax
 regulations.
 
 Deferred tax resulting from timing differences between book and tax
 profits is accounted for at the current rate of tax / substantively
 enacted tax rates at the Balance Sheet date, as applicable, to the
 extent that the timing differences are expected to crystallise.
 
 Deferred Tax Assets are recognised where realisation is reasonably
 certain whereas in case of carried forward losses or unabsorbed
 depreciation, deferred tax assets are recognised only if there is a
 virtual certainty of realisation backed by convincing evidence.
 Deferred Tax Assets are reviewed for the appropriateness of their
 respective carrying values at each Balance Sheet date.
 
 o) Leases:
 
 In case of assets taken on operating lease, the lease rentals are
 charged to the Profit and Loss Account and assets taken on finance
 lease have been capitalised, in accordance with Accounting Standard
 (AS) 19-Leases as notified under the Companies (Accounting Standards)
 Rules, 2006.
 
 p) Share Issue Expenses:
 
 Share issue expenses are adjusted against Securities Premium account to
 the extent of balance available and thereafter, the balance portion is
 charged off to the Profit and Loss Account, as incurred.
 
 q) Borrowing Costs:
 
 Borrowing costs that are attributable to the acquisition, construction
 or production of qualifying assets are capitalised as part of cost of
 the asset. All other borrowing costs are charged to Profit and Loss
 Account.
 
 r) Provisions, Contingent Liabilities and Contingent Assets:
 
 Provisions are recognised only when there is a present obligation as a
 result of past events and when a reliable estimate of the amount of
 obligation can be made. Contingent liability is disclosed for (1)
 Possible obligations which will be confirmed only by future events not
 wholly within the control of the Company or
 
 (2) Present obligations arising from past events where it is not
 probable that an outflow of resources will be required to settle the
 obligation or a reliable estimate of the amount of the obligation
 cannot be made. Contingent Assets are not recognised in the financial
 statements since this may result in the recognition of income that may
 never be realised.