1.  CORPORATE INFORMATION
 
 Networth Stock Broking Limited (''the Company'') has emerged as a leading
 provider of financial services and information provider primarily to
 Instititional and Retail clients in India for more than a decade.The
 Company is a member of the National Stock Exchange of India Ltd. (NSE)
 and BSE Ltd. (BSE) in the Capital Market and Derivatives (Futures &
 Options) segment. It is Depository Participants with Central Depository
 Services India Limited (CDSL) and National Securities Depository
 (India) Limited (NSDL). The Company also provides Merchant Banking
 services.
 
 Note: 2 Scheme of Amalgamation
 
 The Board of Directors of the Company at its meeting held on 9th April,
 2011 approved the scheme of Amalgamation under Section 391 to 394 of
 the Companies Act 1956 of Monarch Research and Brokerage Private
 Limited (MRBPL) and Monarch Project and Finmarkets Limited (MPFL) with
 the Company with effect from appointed date i.e 1st April, 2010.
 
 The Said scheme is further approved by the Equity shareholders of the
 Company at the court conveyed meeting held on 9th April, 2012 as per
 the direction of Hon''ble high Court of the Judicature at Bombay vide
 its order dated 2nd March, 2012.
 
 NSBL and MPFL has filed petition on 30th April, 2012 with the Hon''ble
 High Court of Gujarat at Ahmedabad and the same has been admitted by
 the respective High Courts.
 
 The Company has also received no objection /Prior Approval from BSE,
 NSE, NSDL, CDSL, USE and SEBI- Portfolio Management Services (PMS)
 except from SEBI, MCX-SX and SEBI- Merchant Banker''s Section for the
 said Scheme of Amalgamation as on dated on 21s'' September, 2012.
 
 Note: 3 The Company provides for the use by its subsidiaries certain
 facilities like use of premises infrastructure and other facilities /
 services and the same are termed as ''Shared Services''. The cost of such
 Shared Services are recovered from subsidiaries either on actual basis
 or on reasonable management estimates which are constantly refined in
 the light of additional knowledge gained relevant to such estimation.
 
 Note: 4 Contingent Liability & Commitments (to the extent not provided
 for)
 
 The management of the Company does not anticipate any contingent
 liability having material effect on the position stated in the Balance
 Sheet at the year end except as stated below:
 
 a.  Income tax assessment of the Company has been completed upto
 assessment year 2008-09. The disputed demand outstanding upto the said
 assessment year is Rs. 83 Lacs (previous year Rs. 1101 Lacs). Based on the
 decisions of the Appellate authorities and the interpretation of the
 other relevant provisions, the Company expects that the demand is
 likely to be either deleted or substantially reduced and accordingly no
 provision has been made.
 
 b.  There are certain claims aggregating to Rs. 489 lacs (previous year Rs.
 125 lacs) against the Company for which the Company has taken suitable
 legal recourse. Hence the same has not been recognized as a debt and no
 provision has been made thereof.
 
 c.  The Company has given guarantee of Rs. 5 crores (previous year Nil)
 for loan taken by its Subsidiary Company Ravisha Financial Services
 Private Limited from financial institutions.
 
 Note: Where, CY= Current year''s figures & PY= Previous year''s figures
 
 Note: 5 The Company has taken suitable legal action for recovering
 deposits of Rs. 40 lacs (previous year Rs. 340 lacs) for premises at
 Bangalore.  The management expects favorable order for the same, hence
 no provisions have been made thereof.
 
 Note: 6 The Company has taken suitable legal action for recovering
 debts of Rs. 239 lacs (previous year Rs. 239 lacs) for fraudulent
 transaction done by client in the year 2008-09. SEBI has passed the
 interim order withholding the payout which is kept with BSE till
 completion of investigation. The management expects favorable order for
 the same, hence no provisions have been made thereof.
 
 Note: 7 In the opinion of the Directors of the Company, the Current
 Assets and loans and advances have a value on realization in the
 ordinary course of business at least equal to the amount at which items
 are stated in the Balance Sheet.
 
 Note: 8 There are no Capital commitments which is outstanding as on
 Balance Sheet date (previous year Nil).
 
 Note: 9 Events Occurring After the Balance Sheet Date
 
 To the best of knowledge of the management, there are no events
 occurring after the Balance Sheet date that provide additional
 information materially affecting the determination of the amounts
 relating to the conditions existing at the Balance Sheet Date that
 requires adjustment to the Assets or Liabilities of the Company.
 
 Note: 10 The Revised Schedule VI has become effective from 1st April,
 2011 for the preparation of financial statements. This has
 significantly impacted the disclosure and presentation made in the
 financial statements. Previous year''s figures have been regrouped/
 reclassified wherever necessary to correspond with the current year''s
 classification/disclosure.