Note 1 Corporate Information

The Company was incorporated on 22 June 1995. The company is presently having membership of various exchanges and is in the business of providing Stock Broking and other related services.

(a) The Company has one class of Equity shares having a par value of Rs. 10/- per share. Each shareholder is eligible for 1 vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of Interim dividend. In event of liquidation the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts in proportion to their shareholdings.

(b) Aggregate number of Bonus shares issued during the period of 5 years immediately preceding the reporting date:

(i) 63,000,000 Equity shares of Rs. 10/- each were issued as Bonus shares by way of capitalisation of Rs. 630,000,000 out of Securities Premium during the Financial Year 2012-13.

Note 2 : Details of Leasing arrangements Operating Lease: As a Lessee

The company has entered into cancellable operating leases. These lease arrangements are normally renewable on expiry. The lease arrangement can be cancelled either at the option of lessor giving notice for the period ranging from two months to three months or lessee giving two months notice.

Lease payments amounting to Rs. 12,07,248/- (Previous year Rs. 12,10,852/-) are included in rental expenditure in the Statement of Profit and Loss during the current year.

Note : Rate of interest charged on above loans is 12%.

Note 3 Employee Benefit Plans

(a) Defined Contribution Plans:

The amount recognised as expense in respect of Defined Contribution Plans (Contribution to Provident Fund, Family Pension Fund and Employees State Insurance) aggregate to Rs. 15,55,610/- (Previous year Rs. 16,66,617/-).

(b) Retirement Benefit - Gratuity:

The employees of the Company are eligible for gratuity in accordance with the Payment of Gratuity Act, and is a Defined Employee Benefit. The above benefit is not funded but provision is made in the accounts for accrued gratuity under Projected Unit Credit Method of acturial valuation.

The following table summaries the components of the employee benefit expenses recognised in the Statement of Profit and Loss and the amount recognised in the Balance sheet for the gratuity provision made under actuarial method.

Statement of Profit and Loss

Net employee benefit expenses recognised in Employee Benefit Expenses (Note No. 22)

Note 4 : The accounts of the Trade Receivables and Trade Payables who have not responded to the Company’s request for confirmation of balances, are subject to reconciliation, if any, required.

Note 5 : In accordance with the Company Policy, the company has reviewed the outstanding Trade Receivables and is in continuous process of working out different modalities of recovery. The Company has written off a sum of Rs. 5,28,12,207/- (Previous year Rs. 20,98,394/-) as bad debts during the year, which in the opinion of the Management, is adequate.

Note 6 Segment Reporting

The Company’s operations predominantly consist of “Broking of shares/securities and other related activities “. Hence there are no reportable segments under Accounting Standard -17. During the year under report the Company was engaged in its business only within India. The conditions prevailing in India being uniform no separate geographical disclosures are considered necessary.

Note 7 : There are no amounts payable to any Micro, Small and Medium Enterprises as identified by the Management from the information available with the Company and relied by Auditors.

Note 8 : Corporate Social Responsibility (CSR) Expenditure

a) Gross amount required to be spent by the Company during the year is Rs. Nil.

b) Amount spent till date on CSR Activities is NIL.

Note 9 : Figures have been rounded off to nearest rupees.