(i) Revenue Recognition
 
 (a) Revenue from issue management services, loan syndication, financial
 advisory services etc., is recognized based on the stage of completion
 of assignments and terms of agreement with the client.
 
 (b) Gains and losses on dealing with securities & derivatives are
 recognized on trade date.
 
 (ii) Stock-in-trade (i.e. Inventories)
 
 (a) The securities acquired with the intention of holding for
 short-term are classified as investment and securities acquired for
 trading are classified as stock-in-trade.
 
 (b) The securities held as stock-in-trade are valued at lower of cost
 arrived at on weighted average basis or market/ fair value, computed
 category-wise.
 
 In case of investments transferred to stock-in-trade, carrying amount
 on the date of transfer is considered as cost. Commission earned in
 respect of securities acquired upon devolvement is reduced from the
 cost of acquisition. Fair value of unquoted shares is taken at break-up
 value of shares as per the latest audited Balance Sheet of the
 concerned company.  In case of debt instruments, fair value is worked
 out on the basis of yield to maturity rate selected considering quotes
 where available and credit profile of the issuer and market related
 spreads over the government securities
 
 (c) Discounted instruments like Commercial paper/treasury bills/zero
 coupon instruments are valued at carrying cost. The difference between
 the acquisition cost and the redemption value of discounted instruments
 is apportioned on a straight line basis for the period of holding and
 recognized as Interest income.
 
 (d) Units of mutual fund are valued at lower of cost and net asset
 value.
 
 (iii) Investments
 
 The securities acquired with the intention of holding till maturity or
 for a longer period are classified as investments. (b) Investments are
 carried at cost arrived at on weighted average basis. Commissions
 earned in respect of securities acquired upon devolvement are reduced
 from the cost of acquisition. Appropriate provision is made for other
 than temporary diminution in the value of investments.
 
 (iv) Fixed Assets and Depreciation
 
 (a) Fixed assets are stated at historical cost less accumulated
 depreciation and impairment loss, if any. Cost comprises the purchase
 price and any attributable cost of bringing the asset to its working
 condition for intended use.
 
 (b) Depreciation on fixed assets is provided on WDV Method at the rate
 and in the manner prescribed in Schedule XIV of the Companies Act,
 1956.
 
 (v) Deferred Tax
 
 No provisions made as Depreciation has not been charged by the company
 during the year.
 
 (vi) Derivatives Transactions
 
 (a) All open positions are marked to market.
 
 (b) Gains are recognized only on settlement/expiry of the derivative
 instruments except for Interest Rate derivatives where even mark
 to-market gains are recognized.
 
 (c) Receivables/payables on open position are disclosed as current
 assets/current liabilities, as the case may be.
 
 (vii) Earning Per Share
 
 Basic earnings per share is calculated by dividing the net profit or
 loss for the period attributable to equity shareholders (after
 deducting attributable taxes) by the weighted average number of equity
 shares outstanding during the period.