| (a) Accounting Convention
The accounts are prepared under the `Historical Cost Convention
method.
(b) Basis of Accounting
The accounts are prepared as per the `Accrual Basis of Accounting
unless otherwise stated.
The accounts are prepared on the " Going Concern Basis ".
Securities and Exchange Board of India on May 1 6, 2002 have cancelled
the registration of the company as a Stock Broker. The company has
filed an appeal before the Security Appellate Tribunal (SAT) against
this order.
The company is a member of the National Stock Exchange of India Limited
(NSE). NSE has declared the company as defaulter, with effect from May
3, 2002, due to failure of the company to resolve the investor
complaints.
Due to stoppage of the business, the Company has suffered substantial
liquidity problems. Therefore, considering the stoppage of business and
the liquidity problems, the Companys ability to continue is dependent
on vacation of the above order by SAT and/or inflow from receivable.
(c) Revenue Recognition
(i) Profit/Losses from Share Trading activity is recognised on `FIFO
Cost basis on trade dates.
(ii) Dividend income is recognised as and when the right to receive the
dividend is established.
(iii) Lease rental is recognised on due basis depending on the
certainty of recovery.
(d) Investments
(i) Long term Investments are stated at cost less provision for
diminution, other than temporary, in the value of the investments.
(e) Valuation of Stock-in-trade
(i) Trading Stock of Shares is valued at lower of Cost or Market Value.
The cost is determined on the basis of `FIFO.
(f) Fixed Assets All the Fixed Assets are stated at Cost less
Accumulated Depreciation.
(g) Depreciation-
(1) Depreciation on Fixed Assets is provided on Straight Line Method at
the rates specified in Schedule XIV of the Companies Act, 1956.
(ii) Depreciation on Fixed Assets purchased/sold during the year is
provided on a pro-rata basis with reference to the number of days.
(h) Retirement Benefits
The company contributes to the employees provident fund maintained
under the provident fund scheme by the Central Government. The
Contribution made is charged to Profit & Loss Account.
Company has taken a Group Gratuity Policy from the Life Insurance
Corporation (LIC) of India for payment of Gratuities. The premium
payment is charged to Profit & Loss Account.
The company does not have any other retirement benefit scheme.
(i) Preliminary Expenditure
Preliminary Expenditure is being written off over a period of ten
years.
(j) Foreign Currency Transactions
(a) The transactions in foreign currency are recorded at the rate of
exchange prevailing on the date of transaction.
(b) All the monetary foreign currency assets are restated at the rate
on the cut-off date and the difference arising on such restatement is
charged to profits loss account.
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