A.  REVENUE RECOGNITION
 
 (a) Income from trading of Shares and Debentures, Brokerage, Issue
 management fee, underwriting commission and other services are
 accounted on accrual basis.
 
 (b) Income from Dividends on shares and interest on Debentures / Bonds
 are accounted on receipt basis.
 
 B.  FIXED ASSETS AND DEPRECIATION
 
 (a) Fixed Assets are stated at cost less depreciation.
 
 (b) Depreciation is provided on straight line basis as per rates
 prescribed under Schedule XIV of the Companies Act, 1956
 
 (c) Depreciation is provided on pro-rate basis with respect to the
 period of use.
 
 (d) Fixed Assets are capitalized at cost inclusive of duties, freights,
 taxes and installation expenses.
 
 C.  EXPENDITURES
 
 a) All expenses are accounted on accrual basis (except Gratuity, leave
 encashment, which is being accounted on payment basis).
 
 b) The Company generally follows Mercantile systems of accounting and
 recognizes significant items of Income & Expenditures on accrual basis.
 
 D.  INVESTMENTS
 
 a) Investments are states at cost (without transfer expenses)
 
 b) Investment in membership of OTCEI is stated at cost price.
 
 c) Investment in property are stated at cost including the interest
 capitalized.
 
 E.  INVENTORIES
 
 The stock of Shares and Debentures has been valued scrip wise at cost
 price.
 
 F.  MISCELLANEOUS EXPENDITURES
 
 The Preliminary expenses and Share issue expenses are written off in
 equal installments over 10 years.
 
 G.  PROVISION FOR TAXATION
 
 Provision for Current Tax is made as per the provision of Income Tax
 Act, 1961 and adjustment for Deferred Tax is made in accordance with
 Accounting Standard - 22 issued by ICAI.