1.1 Nature of Business:
 
 The Company is Non-banking Financial Company registered with the
 Reserve Bank of India (RBI) under Section 45-IA of the Reserve Bank
 of India Act, 1934 and primarily engaged in lending and related
 activities. The Company received the Certificate of Registration from
 the RBI on 5th April, 2006, enabling the Company to carry on business
 as a Non-banking Finance Company.
 
 In accordance with the provisions of Section 45-IC of the RBI Act,
 1934, the Company has created a Reserve Fund & during the year, the
 Company has transferred an amount of Rs. 85,319.31 in thousands
 (Previous Year Rs. 84,791.21 in thousands) to Reserve Fund, it being
 20% of the Profit After Tax.
 
 1.2 Contingent Liabilities:
 
 The company has given corporate guarantees (Net of Margins) of Rs.
 12,500.00 in thousands. (Previous Year: Rs. 47,250.00 in thousands) to
 various banks for its subsidiary Motilal Oswal Commodity Brokers Pvt.
 Ltd. & Rs. Nil (Previous Year: Rs. 150,000.00 in thousands) to Punjab
 National Bank for its subsidiary Motilal Oswal Securities Limited.
 
 Demand in respect of Income Tax matters for which appeal is pending is
 Rs. 656.17 in thousands (Previous Year Rs. 2,498.56 in thousands). This
 is disputed by the Company and hence not provided for in the books of
 accounts.
 
 2.3 Employees Stock Options Scheme (ESOS) :
 
 During the year the Company has granted 2,044,000 (Previous Year
 1,747,500) Employee Stock Options to various employees of the Company
 and its subsidiary Companies.
 
 The Company has adopted intrinsic value method of accounting Employee
 Compensation Cost in respect of ESOS. The intrinsic value of shares is
 excess of market price of the shares under ESOS over the exercise
 price. Employee Compensation Cost is accounted for by amortizing the
 intrinsic value on the straight line basis over the vesting period. The
 total amount to be amortized as at March 31, 2011 over the balance
 vesting period is Rs. 255.01 in thousands (Previous Year- Rs. 492.77 in
 thousands).
 
 2.4 Commercial paper & Non-convertible debentures:
 
 The maximum balance outstanding during the year in respect of
 commercial paper & Non convertible debentures was Rs. 3,250,000.00 in
 thousands (Rs. 1,000,000.00 in thousands in the previous year) & Rs.
 1,450,000.00 in thousands (Rs. 1,100,000.00 in thousands in the
 previous year) respectively.
 
 2.8 Related Party Disclosure :
 
 I.  Names of Related Parties :- (as certified by Management)
 
 A) Enterprises where control exists: Subsidiary companies:
 
 a) Motilal Oswal Securities Limited
 
 b) Motilal Oswal Investment Advisors Private Limited
 
 c) Motilal Oswal Private Equity Advisors Private Limited
 
 d) Motilal Oswal Commodities Broker Private Limited
 
 e) Motilal Oswal Capital Market Private Limited
 
 f) Antop Traders Private Limited
 
 g) Motilal Oswal Insurance Brokers Private Limited
 
 h) Motilal Oswal Asset Management Company Limited 
 
 i) Motilal Oswal Trustee Company Limited
 
 B) Enterprises in which Key Managerial Personnel exercise Significant
 Influence:
 
 a) Passionate Investment Management Private Limited
 
 b) Nagori Agro & Cattle Feeds Private Limited
 
 c) Rishabh Securities Private Limited
 
 d) Windwell Securities Private Limited
 
 e) Textile Exports Private Limited
 
 f) Raamdeo Agrawal (HUF)
 
 C) Key Management Personnel:
 
 Mr. Motilal Oswal     - Chairman & Managing Director
 
 Mr. Raamdeo Agrawal   - Joint Managing Director
 
 D) Relatives of Key Management Personnel:
 
 a) Suneeta Agrawal    - Wife of Joint Managing Director
 
 b) Vimla Oswal        - Wife of Chairman & Managing Director
 
 2.9 Segment Reporting:
 
 The Company is engaged in single segment of Fund based activities and
 there are no separate reportable segments as defined in AS – 17.
 
 2.13 Initial Margin:
 
 Initial margin for open positions in respect of Futures and Options is
 Rs. 31,482.14 in thousands (Previous Year Rs. 2,75,997.56 in thousands)
 which includes non-cash component (i.e. collateral).
 
 2.14 The company pledges Stock in Trade towards margin requirement for
 trading / arbitrage in equity / derivatives.
 
 2.15 During the year, CRISIL Limited assigned the Credit Rating of
 P1+ (pronounced P One Plus) to the Short Term Debt Programme of Rs.
 4,000,000.00 in thousands of the Company.
 
 2.17 Capital Commitment:
 
 1.  Out of the capital commitment of 10% (subject to maximum limit of
 Rs. 450,000.00 in thousands) is given by the Company in respect of
 total capital commitment of Business Excellence Trust, the Trust
 sponsored by the Company under the Indian Trust Act, 1982. The Company
 has contributed an amount of Rs. 405,000.00 in thousands towards its
 capital contribution as per the draw down intimations received from the
 Fund & an advance of Rs. 3,375.00 in thousands against future draw
 down.
 
 2.  During the year, the Company has given total capital commitment of
 Rs. 250,000.00 in thousands in respect of Business Excellence Trust II,
 the Trust sponsored by the Company under the Indian Trust Act, 1982.
 
 3.  The Company has given a capital commitment of an amount of Rs.
 150,000.00 in thousands to India Realty Excellence Fund launched by
 Realty Excellence Trust. In respect to this, the Company has
 contributed an amount of Rs. 90,000.00 in thousands as per the draw
 down intimations received from the Fund & an advance of Rs. 1,000.00 in
 thousands against future draw down.
 
 4.  During the year, the Company has given total capital commitment of
 Rs. 250,000.00 in thousands to India Realty Excellence Fund II launched
 by Reality Excellence Trust.
 
 5.  Estimated amount of contracts remaining to be executed on Capital
 Account and not provided for (Net of advances) is Rs. 259,087.53 in
 thousands (Previous Year: Rs. 25,467.34 in thousands).
 
 6 Disclosures, relating to amounts unpaid as at the year end together
 with interest paid / payable as required under the Micro, Small and
 Medium Enterprise Development Act, 2006 have been given to the extent
 Group has received intimation from Suppliers regarding their status
 under the said Act.
 
 7 Company, jointly with its subsidiary company (Motilal Oswal
 Securities Limited), had acquired land & building situated at
 Prabhadevi, Mumbai. The company continued constructing additional
 building space (jointly with its subsidiary company) on the existing
 land/building structure for its corporate office. The Company has,
 during the year, capitalized interest of Rs. 43,298.77 (Previous Year
 Rs. 35,425.79 in thousands) in thousands attributed to capital
 work-in-progress, which is in accordance with Accounting Standard on
 Borrowing Costs (AS-16) issued by the Institute of Chartered
 Accountants of India. The said Accounting Standard specifies that
 interest on funds that are borrowed generally (for working capital) and
 used for the purpose of obtaining a qualifying asset are costs that are
 eligible for capitalisation. The amount of borrowing costs (interest)
 attributable to the qualifying asset is determined by applying the
 weighted average rate of borrowings outstanding to the asset
 expenditures (qualifying assets).
 
 8 During the current year, Company has made a provision Rs. 7,392.11 in
 thousands being 0.25% of its standard assets as per the Notification
 No. DNBS.222/CGM(US)-2011 dated 17th January, 2011 issued by RBI.
 
 2.19 In the opinion of the board of directors, all current assets,
 loans & advances would be realizable at least of an amount equal to the
 amount at which they are stated in the Balance Sheet. Hence no
 impairment loss recognised on fixed assets.
 
 2.23 Previous years figures have been regrouped, rearranged,
 reclassified to the extent considered necessary.