1.1 Basis of accounting:
 
 The financial statements are prepared under historical cost convention,
 on an accrual basis and are in accordance with the requirements of the
 Companies Act, 1956 and comply with the Accounting Standards referred
 to in sub-section (3C) of section 211 of the said Act. The preparation
 of financial statements requires the Management to make estimates and
 assumptions considered in the reported amounts of assets and
 liabilities (including contingent liabilities) as of the date of the
 financial statements and the reported income and expenses during the
 reporting period. Management believes that the estimates used in
 preparation of the financial statements are prudent and reasonable.
 Future results could differ from these estimates.
 
 1.2 Revenue Recognition:
 
 (a) Interest on all lending such as inter corporate deposits and
 finance against securities are accounted on time proportionate basis.
 
 (b) Rental income is accrued on the basis of the agreement.
 
 (c) Dividend is accounted when the right to receive payment is
 established and known.
 
 (d) Profit/Losses from share trading/investment activities is
 determined on the basis of weighted average carrying amount of
 investments and is recognised on the basis of contract notes.
 
 (e) Equity 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.
 
 1.  Equity Stock Futures are marked-to-market on a daily basis. Debit
 or credit balances, if any, are disclosed under Loans and Advances or
 Current Liabilities respectively. The Mark-to-Market Margin Equity
 Stock Futures Account, represents the net amount paid or received on
 the basis of movement in the prices of Equity Stock Futures till the
 Balance Sheet date.
 
 2.  As at the Balance Sheet date, the profit/ loss on open positions,
 if any, in Equity Stock Futures are accounted for as follows:
 
 - Credit balance in the Mark-to-Market Margin - Equity Stock Futures
 Account, being anticipated profit, is ignored and no credit is taken
 in the Statement of Profit and Loss.
 
 - Debit balance in the Mark-to-Market Margin - Equity Stock Futures
 Account, being anticipated loss, is recognised in the Statement of
 Profit and Loss.
 
 3.  On final settlement or squaring-up of contracts for Equity Stock
 Futures, the profit or loss is calculated as the difference between
 settlement/ squaring-up price and contract price. Accordingly, debit or
 credit balance pertaining to the settled/ squared-up contract in
 Mark-to-Market Margin - Equity Stock Futures Account is recognised in
 the Statement of Profit and Loss upon expiry of the contracts. When
 more than one contract in respect of the relevant series of Equity
 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 First
 In First Out Method for calculating profit/ loss on squaring-up.
 
 4.  Initial Margin - Equity Stock Futures Account, representing the
 initial margin and Margin Deposits representing additional margin
 paid over and above the initial margin, for entering into contracts for
 Equity Stock Futures, which are released on final settlement/
 squaring-up of underlying contracts, are disclosed under Loans and
 Advances.
 
 1.3 Fixed Assets:
 
 Fixed assets are stated at cost of acquisition less accumulated
 depreciation. Cost comprises of the purchase price and any other
 attributable cost of bringing the asset to its working condition for
 its intended use.
 
 1.4 Depreciation:
 
 (a) Depreciation on fixed assets and investment in immovable property
 is provided on the written down value basis at the rates prescribed in
 Schedule XIV to the Companies Act, 1956.
 
 (b) Depreciation on additions to fixed assets is provided for the full
 year irrespective of the date of addition. No depreciation is provided
 on deletions to fixed assets in the year of sale.
 
 1.5 Investments:
 
 Long Term Investments (excluding investment property) are valued at
 cost unless there is a diminution in value, other than temporary for
 which provision is made.
 
 Current Investments are stated at lower of cost and fair value.
 
 Investment properties are carried individually at cost less accumulated
 depreciation. Investment properties are capitalised and depreciated in
 accordance with the policy stated for tangible fixed assets.
 
 1.6 Taxation:
 
 Tax expense comprises current and deferred tax. Current tax is measured
 at the amount expected to be paid to the tax authorities in accordance
 with the Income-tax Act, 1961. Deferred tax 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 rate and tax laws
 enacted or substantially enacted at the Balance Sheet date.
 
 Deferred tax assets other than on carried forward losses and unabsorbed
 depreciation are recognised 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 realised.
 
 Deferred tax assets on account of carried forward losses and unabsorbed
 depreciation are recognised only to the extent that there is virtual
 certainty supported by convincing evidence that sufficient future
 taxable income will be available against which such deferred tax assets
 can be realised.
 
 Minimum Alternative Tax (MAT) credit asset is recognised only when and
 to the extent there is convincing evidence that the Company will pay
 normal Income-tax during the specified period. The carrying amount of
 MAT credit asset is reviewed at each Balance Sheet date.
 
 1.7 Provisions:
 
 A provision is recognised when an enterprise has a present obligation
 as a result of past event and 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 their present values and are determined based on management 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
 management estimates.
 
 1.8 Operating Lease:
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased assets, are classified as
 operating leases. Operating lease payments are recognised as an expense
 in the Statement of Profit and Loss on a straight-line basis over the
 lease term.
 
 1.9 Employee benefits:
 
 (a) Short term employee benefits:
 
 Short term employee benefits are recognised as an expense at the
 undiscounted amount in the Statement of Profit and Loss of the year in
 which the related service is rendered.
 
 (b) Long term employee benefits: