1.1 Basis of Preparation of Financial Statements:
 
 The accompanying financial statements are consistently prepared under
 the historical cost convention, on the accrual basis of accounting and
 comply with the accounting standards issued by the Institute of
 Chartered Accountants of India (to the extent applicable) and in
 accordance with the generally accepted accounting principles, the
 provisions of the Companies Act, 1956 and regulations of Reserve Bank
 of India to the extent applicable.
 
 1.2 Use of Estimates:
 
 The preparation of the financial statements in conformity with the
 generally accepted accounting principles requires the management to
 make estimates and assumptions that affect the reported amount of
 assets, liabilities, revenues and expenses and disclosure of contingent
 assets and liabilities. The estimates and assumptions used in the
 accompanying financial statements are based upon managements
 evaluation of the relevant facts and circumstances as of the date of
 the financial statements. Actual results may differ from the estimates
 and assumptions used in preparing the accompanying financial
 statements. Any differences of actual results to such estimates are
 recognized in the period in which the results are known / materialized.
 
 1.3 Fixed Assets & Depreciation:
 
 Fixed Assets are stated at cost less accumulated depreciation thereon.
 The cost of fixed assets comprises purchase price and any attributable
 cost of bringing the asset to its working condition for its intended
 use. The Company provides pro-rata depreciation from the date on which
 asset is acquired / put to use. In respect of assets sold, prorata
 depreciation is provided upto the date on which the asset is sold. On
 all assets, except as mentioned below, depreciation has been provided
 using the Written Down Value method at the rates specified in Schedule
 XIV to the Companies Act, 1956.
 
 a) Assets costing Rs. 5,000/- or less are fully depreciated in the year
 of purchase.
 
 b) Improvements to leased Assets are depreciated over the initial
 period of lease. Expenditure which are attributable to Construction of
 a project are included as part of the cost of the construction project
 during construction period and included under capital work-in-progress
 which is allocated to the respective fixed assets on the completion of
 the construction period.
 
 1.4 Borrowing Cost:
 
 Interest and other costs in connection with the borrowing of the funds
 to the extent related / attributed to the acquisition/ construction of
 qualifying fixed assets are capitalised up to the date when such assets
 are ready for its intended use and other borrowing costs are charged to
 Profit & Loss Account.
 
 1.5 Investments:
 
 Investments are classified into long-term investments and current
 investments. Investments that are intended to be held for one year or
 more are classified as long-term investments and investments that are
 intended to be held for less than one year are classified as current
 investments.
 
 Long term investments are valued at cost. Provision for diminution in
 value of long term investments is made if in the opinion of management
 such a decline is other than temporary.
 
 Current investments are valued at cost or market/fair value, whichever
 is lower.
 
 1.6 Revenue Recognition:
 
 a) Interest Income is recognized on the time proportionate basis
 starting from the date of disbursement of loan. In case of Non
 Performing Assets, interest income is recognized on receipt basis, as
 per NBFC Prudential norms.
 
 b) Dividend income is recognized when the right to receive payment is
 established.
 
 c) 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.
 
 1.  Profit/loss on sale of securities is determined based on the
 Weighted Average cost of the securities sold.
 
 2.  Profit/loss on equity derivative transactions is accounted for as
 explained below :-
 
 a.  Initial and additional margin paid over and above initial margin,
 for entering into contracts for Equity Index/ Stock Futures and or
 equity Index/stock options which are released on final
 settlement/squaring-up of underlying contracts are disclosed under
 Current Assets, Loans and advances. Mark-to-market margin- Equity
 Index/Stock
 
 Futures representing the amounts paid in respect of mark to market
 margin is disclosed under Loans and Advances and amount received is
 shown under current liabilities.
 
 b.  Equity Index/Stock Option Premium Account represents premium paid
 or received for buying or selling the options, respectively.
 
 c.  On final settlement or squaring up of contracts for equity index /
 stock futures, the realized profit or loss after adjusting the
 unrealized loss already accounted, if any, is recognized in the Profit
 and Loss Account. On settlement or squaring up of equity index / stock
 options before expiry, the premium prevailing in Equity Index/Stock
 Option Premium Account on that date is recognized in the Profit and
 Loss Account. When more than one contract in respect of the relevant
 series of equity index / stock futures or equity index / stock options
 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.
 
 As at the balance sheet date, the mark to market on all hedged
 transactions comprising of Securities and Equity Derivatives positions
 is determined on a Portfolio basis with net unrealized losses being
 recognized in the Profit and Loss Account. Unrealized gains (on
 portfolio basis) are not recognized in the Profit and Loss Account on
 grounds of prudence as enunciated in Accounting Standard - 1,
 Disclosure of Accounting Policies.
 
 In respect of other transactions, the unrealized losses on equity
 derivatives determined on scrip-basis are recognized in Profit and Loss
 Account and unrealized gains are ignored; and in case of securities
 (shares, etc) the net unrealized losses are recognized in Profit & Loss
 Account and net unrealized gains are ignored.
 
 3.  In respect of other heads of income the Company accounts the same
 on accrual basis.
 
 1.7 Stock In Trade:
 
 This comprises of arbitrage/trading positions of the company.
 
 1.  Shares are valued at cost or market value, whichever is lower. The
 comparison of Cost and Market value is done separately for each
 category of Shares. Cost is considered on Weighted Average Basis.
 
 2.  Units of Mutual Funds are valued at cost or market value whichever
 in lower. Net asset value of units declared by mutual funds is
 considered as market value for non-exchange traded Mutual Funds.
 
 1.8 Foreign Currency Transactions:
 
 Foreign currency transactions are recorded at the rates of exchange
 prevailing on the date of the transaction. Exchange differences, if any
 arising out of transactions settled during the year are recognized in
 the Profit and Loss Account. Monetary assets and liabilities
 denominated in foreign currencies as at the balance sheet date are
 translated at the closing exchange rate on that date. The exchange
 differences, if any, are recognized in the Profit and Loss Account and
 related assets and liabilities are accordingly restated in the Balance
 Sheet.
 
 1.9 Employee Benefits: Provident Fund:
 
 Contribution payable to the recognized provident fund, which is a
 defined contribution scheme, is charged to the Profit and Loss Account
 in the period in which they occur.
 
 Gratuity:
 
 Gratuity is post employment benefit and is in the nature of Defined
 Benefit Plan. The Liability recognized in the Balance Sheet in respect
 of gratuity is the present value of defined benefit obligation at the
 balance sheet date together with the adjustments for unrecognized
 actuarial gain or losses and the past service costs. The defined
 benefit obligation is calculated at or near the balance sheet date by
 an independent actuary using the projected unit credit method.
 
 Compensated Absences:
 
 As per the policy of the company, an employee can carry forward maximum
 50% of the leave annually. No leave is allowed to be encashed. An
 obligation arises as employees render service that increases their
 entitlement to future compensated absences.  Provision is made for
 expected cost of accumulating compensated absences as a result of
 unused leave entitlement which has accumulated as at the balance sheet
 date.
 
 Ex-gratia (Bonus):
 
 The Company recognizes the costs of bonus payments when it has a
 present obligation to make such payments as a result of past events and
 the reliable estimate of the obligation can be made.
 
 1.10 Taxation:
 
 Income-tax expense comprises current tax (i.e. amount of tax for the
 period determined in accordance with the income-tax law), deferred tax
 charge or credit (reflecting the tax effect of timing differences
 between accounting income and taxable income for the period) and fringe
 benefit tax.
 
 Current Tax:
 
 Provision for current tax is made on the basis of estimated taxable
 income for the accounting year in accordance with the Income Tax Act,
 1961.
 
 Deferred taxation:
 
 The deferred tax charge or credit and the corresponding deferred tax
 liabilities and assets are recognized using the tax rates that have
 been enacted or substantively enacted by the balance sheet date.
 Deferred tax assets are recognized only to the extent there is
 reasonable certainty that the asset can be realised in future; however,
 where there is unabsorbed depreciation or carried forward loss under
 taxation laws, deferred tax assets are recognized only if there is a
 virtual certainty of realisation of the assets. Deferred tax assets are
 reviewed as at each balance sheet date and written down or written-up
 to reflect the amount that is reasonable/virtually certain (as the case
 may be) to be realised.
 
 1.11 Preliminary Expenses:
 
 Preliminary expenses are charged to the Profit and Loss Account in the
 year in which they are incurred.
 
 1.12 Provisions and Contingencies:
 
 The Company creates a provision when there is present obligation as a
 result of a past event that probably requires an outflow of resources
 and a reliable estimate can be made of the amount of the obligation. 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.  When there is a possible obligation
 or a present obligation in respect of which the likelihood of outflow
 of resources is remote, no provision or disclosure is made.
 
 Provisions are reviewed at each balance sheet date and adjusted to
 reflect the current best estimate. If it is no longer probable that the
 outflow of resources would be required to settle the obligation, the
 provision is reversed.
 
 Contingent assets are not recognized in the financial statements.
 However, contingent assets are assessed continually and if it is
 virtually certain that an economic benefit will arise, the asset and
 related income are recognized in the period in which the change occurs.
 
 1.13 Commercial Paper:
 
 The liability is recognised at face value at the time of issue of
 commercial paper. Discount on commercial paper is amortized over the
 tenure of the commercial paper.