Significant Accounting Policies

The principal accounting policies applied in the preparation of these financial statements are set out below.
These policies have been consistently applied to all the years presented, unless otherwise stated.

2.1 Basis of Preparation of financial statements

a) Statement of compliance

The financial statements have been prepared in accordance with the Generally Accepted Accounting
Principles in India ('Indian GAAP') to comply with the Accounting Standards specified under Section 133 of
the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant
provisions of the Companies Act, 2013.

b) Basis of measurement

The financial statements are prepared on a going concern basis, as the Management is satisfied that the
Company shall be able to continue its business for the foreseeable future and no material uncertainty exists
that may cast significant doubt on the going concern assumption. In making this assessment, the Management
has considered a wide range of information relating to present and future conditions, including future
projections of profitability, cash flows and capital resources.

These financial statements have been prepared under the historical cost convention. Company follows
mercantile system of accounting and recognizes income and expenditures on accrual basis.

c) Functional and presentation currency

The Financial Statements are presented in Indian Rupees which is also the functional currency of the
Company and all amount in the Financial Statements are presented in ' Lacs, unless otherwise stated. Certain
amounts that are required to be disclosed and do not appear due to rounding-off are expressed as 0.00.

d) Use of Estimates

The presentation of financial statements in conformity with the generally accepted accounting principles
require the management to make estimates and assumptions that affect the reported amount of assets and
liabilities, revenue and expenses and disclosure of contingent liabilities. Such estimates and assumptions are
based on management's evaluation of relevant facts and circumstances as on the date of financial statements.
The actual outcome may diverge from these estimates.

2.2 Property Plant and Equipment
Tangible Assets

Initial and Subsequent Recognition:

a. Tangible fixed assets are stated at cost of acquisition or construction less accumulated depreciation.
All significant costs relating to the acquisition and installation of T angible fixed assets are capitalized.
Any trade discounts and rebates are deducted in arriving at the cost price. Subsequent expenditures
related to an item of Fixed Asset are added to its book value only if they increase the future benefits
from the existing assets beyond its previously assessed standard of performance.

Depreciation methods, estimated useful lives and residual value:

Estimated useful lives of items of Property, Plant and Equipment's are as follows

Derecognition:

Gains/losses arising from the retirement/disposal of tangible assets are determined as the difference
between the net disposal proceeds and the carrying amount of the assets and recognized as income or
expense in the statement of profit and loss account.

Intangible Assets

Measurement at recognition

Intangible assets are recognized where it is probable that the future economic benefit attributable to the
assets will flow to the Company and its cost can be reliably measured.

Following initial recognition, intangible assets are carried at cost less accumulated amortization and
accumulated impairment losses, if any. Intangible assets comprise of Computer software. Purchased
software meant for in house consumption and significant upgrades thereof having probable economic
benefit exceeding one year are capitalized at acquisition price. Purchased intangible assets are amortized
over their useful lives unless these lives are determined to be indefinite. Purchased intangible assets are
carried at cost, less accumulated amortization. An impairment test of intangible assets is conducted
annually or more often if there is an indication of a decrease in value.

Amortisation:

It is the systematic allocation of the depreciable amount of an asset over its useful life. Intangible Assets
with finite lives are amortised on a diminishing basis over the estimated useful economic life. The
amortization expense on intangible assets with finite lives is recognized in the Statement of Profit and Loss.
The amortisation period and the amortization method for an intangible asset with finite useful life is reviewed
at the end of each financial year. If any of these expectations differ from previous estimates, such change
is accounted for as a change in an accounting estimate.

Derecognition:

The carrying amount of an intangible asset is derecognized on disposal or when no future economic benefits
are expected from its use or disposal. Gains/losses arising from the retirement/disposal of an intangible assets
are determined as the difference between the net disposal proceeds and the carrying amount of the assets
and recognized as income or expense in the statement of profit and loss account.

2.3 Investments

Investments are classified into Long term investments and current investments. Investments that are
intended to be held for one year or more are classified as Long term investments and investments that are
intended to be held for less than one year are classified as current investments.

Long term Investments are carried at cost and provision is made to recognize any decline, other than
temporary in the value of such investment and Current investments are valued at cost or market/fair value,
whichever is lower. On disposal of an investment, the difference between its carrying amount and net
disposal proceeds is charged or credited to the statement of Profit and Loss.

Profit on sale of investment is recorded on First in First out basis (FIFO).

2.4 Investments in subsidiaries

Investments in subsidiaries are measured at cost less accumulated impairment, if any, The company
assesses at the end of each reporting period if there are any indications of impairment on such
investments. If so, the company estimates the recoverable amount of the investment and provides
for impairment

2.5 Revenue Recognition

Revenue from proprietary trading consists primarily of net trading income earned by the company when trading

as principal. Net Trading income from proprietary trading represents trading gain net of trading losses.

The profit & loss arising from all transactions entered into on account and risk of the company are recorded

on completion of trade date.

a. Brokerage Income is recognized on settlement date basis and is exclusive of Goods, Services Tax,
Securities Transaction Tax (STT), and Stamp Duty, wherever applicable.

b. Interest of Bank deposit is recognized on an accrual basis. (Interest income is recognized on a time
proportion basis taking into account the amount outstanding and the rate applicable.)

c. Dividend income is recognized when the right to receive payment is established, it is probable that the
economic benefits associated with the dividend will flow to the entity and the amount of dividend can be
reliably measured. This is generally when the Board of Directors/ shareholders approve the dividend

d. The profit/loss on sale of investments is recognized in the Statement of profit and loss on the trade date.
Profit or loss on sale of investments is determined on First in First out (FIFO) basis.

e. The company has designated the securities/commodities as financial assets at “fair value through
Statement of Profit and loss “. Such designations are considered by the Company to eliminate /
significantly reduce measurement / recognition inconsistency that would otherwise arise. These
instruments are measured at fair value and changes therein are recognized in the statement of profit and
loss.

f. Fair value is determined using quoted market prices in an actively traded market, for the instrument,
wherever available, as the best evidence of fair value. In the absence of quoted market prices in an actively
traded market, an appropriate valuation technique is used to determine the fair value.

g. Derivatives: The Company holds derivative instruments to hedge exposure to price risk associated with
equities/ commodities/currencies instruments and/or for trading. The derivative instruments entered into
by the Company are mainly in the nature of options and futures. Derivatives are measured at fair value,
and resultant changes therein are recognized in the statement of profit and loss. Fair value is determined
using quoted market prices in an actively traded market, for the instrument, wherever available, as the
best evidence of fair value. In the absence of quoted market prices in an actively traded market, an
appropriate valuation technique is used to determine the fair value.

h. In respect of other heads of income, income from depository operations etc., the company accounts the
same on accrual basis.

i. Other Income: Other Income have been recognized on an accrual basis in the Financial Statements,
except when there is uncertainty of collection.

2.6 Impairment of assets

As per AS28 - Impairment of Assets, the company assesses at each balance sheet date whether there is
any indication that an asset (Tangible or intangible) may be impaired. An asset is impaired when the
carrying amount of the assets exceeds its recover amount. An impairment loss is charged to the statement
of profit and loss account in the year in which as asset is identified as impaired. An impairment loss is
reversed to the extent that the asset carrying amount does not exceed the carrying amount that would have
been determined if no impairment loss had previously been recognized.

2.7 Employee Benefits
Defined Contribution Plan:

Employee benefits in the form of Provident Fund and Employee State Insurance scheme etc, are considered
as defined contribution plan and the contributions are charged to the Profit & Loss Account for the year when
the expense is actually incurred.

Gratuity:

The company has funded Gratuity plan administered through LIC of India. The Company provides for Gratuity;
a defined benefits plan (the “Gratuity plan”) covering eligible employees in accordance with the Payment of
Gratuity Act 1972. The gratuity provides for a lump sum payment to vested employees at retirement, death,
incapacitation termination of employment of an amount based on the respective employee salary and the
tenure of employment.

The liability is actuarially determined (using Projected Unit Method) at the end of each year.

The defined benefit obligation is calculated at or near the Balance Sheet date by an independent actuary using
the projected unit credit method. The liability recognised in the Balance Sheet in respect of gratuity is the
present value of defined benefit obligation at the Balance Sheet date together with the adjustments for
unrecognised actuarial gain or losses and the past service costs. The change in the liability between the
reporting dates is charged in the Statement of profit and loss (except for the unrealised actuarial gains and
losses). Actuarial gains and losses comprise experience adjustment and the effects of changes in actuarial
assumptions are recognized in the period in which they occur, are recognized in the statement of profit and
loss account in the year in which they arise.

An actuarial valuation involves making various assumptions that may differ from actual developments in the
future. These include the determination of the discount rate, future salary increases and mortality rates. Due
to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly
sensitive to changes in these assumptions. All assumptions are reviewed at each year end.”

Compensated absences:

The employee of the company is entitled to compensated absences as per the policy of the company.
Accumulated compensated absences, which are expected to be availed or encashed within 12 months from
the end of the year are treated as short term employee benefits. The obligation towards the same is measured
at the expected cost of accumulating compensated absences as the additional amount expected to be paid
as a result of the unused entitlement at the end of the year.

Accumulated compensated absences, which are expected to be availed beyond 12 months from the end of
the year are treated as long term employee benefits. The company's liability for compensated absences is
actuarially determined (using Projected Unit Method) at the end of each year. Actuarial gain /loss are
recognized in the statement of profit and loss account in the year in which they arise.

2.8 Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily
takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost
of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs

consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing
cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

2.9 Income Tax

The income tax expense comprises current and deferred tax incurred by the Company. Income tax
expense is recognised in the profit and loss statement. Income tax payable on profits is based on
the applicable tax laws in each tax jurisdiction and is recognised as an expense in the period in
which profit arises. Income taxes recognised in any year consists of following:

a. Current Taxation:

Current tax is the expected tax payable/receivable on the taxable income or loss for the period, using
tax rates enacted for the reporting period and any adjustment to tax payable/receivable in respect
of previous years. Current tax assets and liabilities are offset only if, the Company has a legally
enforceable right to set off the recognised amounts; and intends either to settle on a net basis, or to
realize the asset and settle the liability simultaneously

b. Deferred Tax: Deferred tax is recognized, subject to consideration of prudence in

respect of deferred tax assets, on timing differences, being the difference between taxable incomes
and accounting income that originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax assets and liabilities are measured at the tax rates that have been
enacted or substantially enacted at the balance sheet date.

c. Minimum Alternate Tax (MAT): credit is recognized as an asset to the extent that there is
convincing evidence that company will pay normal income tax during the specified period. The
company reviews MAT credit at each Balance Sheet date and writes down the carrying amount of
the same to the extent there is no longer convincing evidence to the effect that the company will pay
normal income tax during the specified period.