1.  Basis of Presentation:
 
 The Company maintains its accounts on accrual basis, following the
 historical cost convention in compliance with the Accounting Standards
 referred to in Section 211(3C) and other requirements of the Companies
 Act, 1956.
 
 2.  Fixed Assets:
 
 a) Capitalized at acquisition cost including directly attributable
 costs such as freight, insurance and specific installation charges for
 bringing the assets to the working condition for use.
 
 b) Intangible assets are stated at cost, net of tax / duty availed,
 less accumulated amortization / impairment losses, if any. Cost
 includes original cost of acquisition, including incidental expenses
 related to such acquisition.
 
 3.  Depreciation on Fixed Assets:
 
 (a) Depreciation is provided on Straight Line Method at the rates
 specified in Schedule XIV of the Companies Act, 1956;
 
 (b) Depreciation on assets acquired and sold during the year/ period,
 has been charged pro-rata from / up to the month of acquisition/sale of
 the assets.
 
 (c) Intangible assets such as software''s, leasehold office premises etc
 are amortized over a period of Five
 
 (5) years
 
 4.  Inventories:
 
 All Shares and Securities are valued at Cost or market value, whichever
 is lower.
 
 5.  Investments:
 
 All Investments are stated at cost and provision for diminution in
 value, of permanent nature, if any, of Investments is charged to the
 Profit and Loss account.
 
 6.  Revenue Recognition:
 
 (a) Merchant Banking/Syndication/Advisory Fees are recognized on
 accrual basis
 
 (b) Income from Securities/Investments is recognized on accrual basis.
 
 7.  (a) Future Contracts:
 
 Initial margin payment paid at the time of inception of the contract is
 shown under the head Current Assets All the future contracts are
 marked to market on daily basis. The amount of marked to market margin
 received / paid into/from such accounts, are debited or credited to
 marked to market margin Index/Stock Future Account and appear as
 separate item as Current Asset or Current Liability as the
 case may be.
 
 At the year end, appropriate provisions are created by debit to Profit
 & Loss Account for anticipated loss.  Anticipated profit at the year
 end is ignored.
 
 At the time of final settlement, the difference between the contract
 price and the settlement price is calculated and recognized in the
 Profit & Loss Account after adjusting provision created for anticipated
 loss, if any.
 
 (b) Option Contracts:
 
 At the inception of the contract, premium paid is debited to Index
 Option Premium Account or Stock Option Premium Account, as the case may
 be. On receiving the premium at the time of sale, the Index Option
 Premium Account or Stock Option Premium Account is credited and shown
 separately under the head Current Assets or Current
 Liabilities as the case may be.
 
 All the Open Option Contracts are marked to market on daily basis in
 the similar manner as in the case of Future Contracts. If the Contracts
 are Open as on the Balance Sheet date, appropriate provision is made in
 the books of accounts by crediting / debiting the Profit & Loss
 Account.
 
 At the time of Balance Sheet date, if the premium prevailing in the
 market for a contract of similar nature is lower than the premium so
 paid, then provision is made for the difference in the Profit & Loss
 Account.
 
 If the premium received is lower than the premium prevailing in the
 market for contract of similar nature, appropriate provision for loss
 will be made by debiting Profit & Loss Account and crediting provision
 for loss on Index/Stock Option Account appearing under the head Current
 Liability.
 
 At the time of settlement or at the time of squaring-up, premium is
 recognized either as expense or income as the case may be.
 
 8.  Borrowing Cost:
 
 Borrowing Cost that are attributable to acquisition, construction or
 production of qualifying assets are capitalized as part of cost of such
 assets. Such expenses are shown under Capital Work in Progress to be
 allocated to the relevant items of assets on such assets. Such expenses
 are shown under Capital Work in Progress to be allocated to the
 relevant items of assets on such assets being put to use.
 
 A qualifying asset is an asset that takes substantial period of time to
 get ready for the intended use.
 
 Borrowing Cost other than those incurred for qualifying asset is
 expensed out in the year in which it is incurred.
 
 9.  Employee Stock Option Plan:
 
 The accounting value of stock options representing the excess of the
 market price over the exercise price of the shares granted under
 Employees Stock Option Scheme of the Company, is amortized as
 Deferred Employees compensation on a straight-line basis over the
 vesting period in accordance with the SEBI (Employees Stock Option
 Scheme and Employee Stock Purchase Scheme) Guidelines, 1999.
 
 10.  Foreign Currency Transactions:
 
 Foreign Currency Transactions are accounted for at the rates prevailing
 on the dates of the transactions.  Foreign Currency Assets &
 Liabilities are converted at contracted rates / year end rates as
 applicable, the exchange differences on settlement are adjusted to the
 Profit and Loss Account.
 
 11.  Retirement Benefits:
 
 (a) Defined Contribution Plan:
 
 Company''s contribution paid/payable during the year to provident fund,
 are charged to Profit & Loss Account. There are no other obligations
 other than the contribution payable to the respective trusts.
 
 (b) Defined Benefit Plan:
 
 Company''s liability towards gratuity are determined using the projected
 unit credit method which considers each period of service as giving
 rise to an additional unit of benefit entitlement and measures each
 unit separately to build up the final obligation. Past services are
 recognized on a straight line basis over the average period until the
 amended benefits become vested. Actuarial gain and losses are
 recognized immediately in the statement of Profit and Loss account as
 income or expense. Obligation is measured at the present value of
 estimated future cash flow using a discounted rate that is determined
 by the reference to market yields at the Balance Sheet date on
 Government bonds where the currency and terms of Government bonds are
 consistent with the currency and estimated terms of the defined benefit
 obligation.
 
 12.  Miscellaneous Expenditure:
 
 Preliminary Expenses, Development Expenditure, Share Issue Expenses in
 connection with Public Issue of Equity Shares by the Company and Rights
 Issue Expenses are written off over a period of 5 years.
 
 13.  Contingencies and Events occurring after the Balance Sheet Date:
 
 Accounting for contingencies (gains & losses) arising out of
 contractual obligations are made only on the basis of mutual
 acceptances. Events occurring after the date of Balance Sheet, where
 material, are considered up to the date of adoption of accounts.
 
 14.  Taxation:
 
 The current charge for taxes is calculated in accordance with the
 relevant tax regulations applicable to the Company. Deferred tax assets
 and liabilities are recognized for future tax consequences attributable
 to the timing difference that result between the profit offered for
 Income Tax and the profit as per the financial statement. Deferred tax
 assets and liabilities are measured as per the tax rates/ laws that
 have been enacted or subsequently enacted by the Balance Sheet date &
 are reviewed for appropriateness of their respective carrying values at
 each balance sheet date.
 
 15.  Impairment of Assets:
 
 The Company assesses at each Balance Sheet date whether there is any
 indication that an asset may be impaired.
 
 If such indication exists, the Company estimates the recoverable amount
 of the asset. If such recoverable amount of the asset or the
 recoverable amount of the cash generating unit to which the asset
 belongs is less than its carrying amount, the carrying amount is
 reduced to its recoverable amount The reduction is treated as an
 impairment loss and is recognized in the Profit & Loss Account.
 
 If at the Balance Sheet date there is an indication that if a
 previously assessed impaired loss no longer exists, the reassessed
 asset is reflected at the recoverable amount, subject to a maximum of
 depreciated historical cost.