Notes to Accounts of Lohia Securities Ltd.

Mar 31, 2015

NOTE1

CORPORATE INFORMATION

Lohia Securities Limited ("the company") is engaged in the business of share trading and share broking and its related services in India for the last 20 years. The company offers financial services such as broking for equity, derivatives and currency future, custody accounts, financial product distribution etc. The shares of the company are listed in Calcutta Stock Exchange and Bombay stock Exchange (under permitted category).

NOTE 2

Contingent Liabilities

i) Bank Guarantee:

a) The Company has taken Bank Guarantee of Rs. 1727.50 Lacs from HDFC Bank Ltd. against pledge of Fixed Deposit receipts of Rs. 863.75 Lacs which has been given as margin money in favour of National Securities Clearing Corporation Ltd.

b) Bank Guarantee of Rs. 50 Lacs from Federal Bank Ltd. against pledge of Fixed Deposit receipts of Rs. 25 Lacs which has been given as margin money in favour of National Securities Clearing Corporation Ltd.

c) Bank Guarantee of Rs. 92.50 Lacs from HDFC Bank Ltd. against pledge of Fixed Deposit receipts of Rs. 46.25 Lacs which has been given as margin money and Trade Guarantee Fund in favour of Indian Clearing Corporation Ltd. (ICCL) and Bombay Stock Exchange Ltd.

ii) Income Tax:

a) The Company has received demand amounting to Rs. 51,986/- from Income Tax Department relating to assessment of T.D.S from the F.Y. 2007-2008 to F.Y. 2013-2014 against which Company will file necessary rectification within appropriate time.

b) The company has received demand amounting to Rs. 1,05,35,490/- (including Interest of Rs. 17,55,900/- u/s 220(2) of the Income Tax Act, 1961) from Income Tax Department relating to A.Y. 2010-11 u/s 143(3) of the Income Tax Act, 1961 against which Company has filed an appeal with CIT (Appeals), Kolkata. However, the company has paid Rs. 10,00,000/- against the said demand.

c) The company has received demand amounting to Rs. 43,74,200/- from Income Tax Department relating to A.Y. 2011-12 u/s 143(3) of the Income Tax Act, 1961 against which Company has filed an appeal with CIT (Appeals) VI, Kolkata. However, Income Tax Refund of AY 2012-13 amounting to Rs. 26,99,010/- has been already adjusted by Department and Rs. 10,00,000/- has been paid by the company against the said demand.

NOTE 3

Outstanding Contracts

Outstanding Contracts of the clients for the settlement period for which settlement has not taken place has not been considered for the purpose of financial statement made upto 31st March 2015. However brokerage and other charges receivables on such contracts have been accounted for.

NOTE 4

Segment Reporting

The company's operation predominantly comprises of only one segment "Activity relating to Capital Market" and therefore segment reporting is not applicable to the company.

NOTE 5

DUE TO MICRO, SMALL AND MEDIUM ENTERPRISES

Based on the information available with the company, the balance due to Micro and Small enterprises, as defined under the Micro, Small, and Medium Enterprises Development Act, 2006 (MSMED Act, 2006) is Rs. Nil (P.Y. Rs. Nil). Further, no interest during the year has been paid or payable under the terms of the MSMED Act, 2006. The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

NOTE 6

RELATED PARTY DISCLOSURE

Related party disclosure as identified by the management in accordance with the Accounting Standard (AS) 18 on "Related Party Disclosures" and as per Section 188 of the Companies Act1 2013 are as follows:

A) Name of the related parties & their relationship

i) Key Managerial Personnel (KMP):

a) Mr. Hari Kishan Lohia

b) Mr. Mahesh Kumar Bajaj

c) Mr. Rajesh Kumar Bajaj

d) Mr. Sudheer Kumar Jain

e) Mr. Sameer Bajaj

f) Mr. Vineet Goenka

ii) Wholly Owned Subsidiary Companies:

a) Trade City Barter (P) Ltd

b) Trade City Commodities (P) Ltd

c) Trade City Real Estate (P) Ltd

d) Trade City Securities (P) Ltd

iii) Relatives of Key Managerial Personnel (KMP):

a) Ayushi Jain

b) Bhawari Devi Jain

c) Megha Bajaj

d) Murarilal Bajaj

e) Neena Jain

f) Poonam Bajaj

g) Prerna Bajaj

h) Rajdulari Devi Bajaj

i) Sangita Bajaj

j) Sanjay Kumar Jain

k) Sunita Bajaj

1) Abhishek Lohia

iv) Enterprises over which KMP or relatives of KMP exercises significant influence:

a) Bajaj Overseas and Finance (P) Ltd

b) Bajaj Portfolio Services (P) Ltd

c) Daadi Stock Broking (P) Ltd

d) Hari Kishan Lohia (HUF)

e) Lohia Fiscal Markets (P) Ltd

f) Madhusudan Enclave (P) Ltd

g) Mahesh Kumar Bajaj (HUF)

h) Narayani Commodities (P) Ltd

i) Padam Chand Jain (HUF)

j) Narayani Infrastructure & Logistics (P) Ltd.

k) Narayani Publishers & Media Support (P) Ltd.

1) Rajesh Kumar Bajaj (HUF)

m) Ridhi Sidhi Distributors (P) Ltd

n) Satya Narayan Bajaj (HUF)

o) Shiv Lalit Consultancy (P) Ltd

p) SNB Share Broking (P) Ltd

q) Snehdeep Commerce (P) Ltd

r) Sudheer Kumar Jain (HUF)

NOTE - 7

Statement containing sailent features of the financial statements of Subsidiary Companies as on 31st day of March' 2015 in the prescribed Form AOC - I as specified in Companies Act, 2013 is enclosed as Annexure "A".

NOTE 8

The figures for the previous year have been rearranged and/or regrouped wherever considered necessary.

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Mar 31, 2014

Note 1

Contingent Liabilities

a) Bank Guarantee:

The company has taken Bank Guarantee of Rs.1552.50 lacs from HDFC Bank Ltd against pledge of bank deposits of ^776.25 lacs and of Rs.240 lacs from Federal Bank against pledge of Bank Deposits of Rs.20 lacs. The above mentioned bank guarantees have been given as margin money in favour of National Securities Clearing Corporation Limited (NSCCL). The company has taken bank guarantee of Rs.67.50 lacs from HDFC Bank against pledge of Bank Deposits of Rs.33.75 lacs which has been given in favour of Indian Clearing Corporation Limited towards margin money and trade guarantee fund for trading in Bombay Stock Exchange (BSE).

b) Income Tax:

a) The company has disputed income tax demand outstanding of Rs.5,80,437/- for the Financial Year 2004-05. The company has been legally advised that the demand is likely to be deleted or substantially reduced and accordingly no provision has been made.

b) The income tax department has filed an appeal with IT AT Kolkata against the order of CIT(A)-VI for the Financial Year 2007-2008. The maximum amount of liability involved in the appeal is Rs.9,98,598/-. The liability being contingent in nature, thus not provided in the Financial Statements.

c) The company has disputed income tax demand outstanding of Rs.24,84,920/- for the Financial Year 2009- 2010. The company has been legally advised that the demand is likely to be deleted or substantially reduced and accordingly no provision has been made.

d) The company has disputed income tax demand outstanding of T 43,74,200/- for the Financial Year 2010- 2011. The company has been legally advised that the demand is likely to be deleted or substantially reduced and accordingly no provision has been made.

Note 2

Segment Reporting

The company''s operation predominantly comprises of only one segment "Activity relating to Capital Market" and therefore segment reporting is not applicable to the company.

Related l arty uisclosure a) Name of the Related Parties

Nature of Relationship Name of the Related Parties

1) Wholly Owned Subsidiaries : Trade City Securities (P) Ltd

Trade City Commodities (P) Ltd

Trade City Real Estate (P) Ltd

Trade City Barter (P) Ltd

2)Key Management Personnel KMP : Shri Rajesh Kumar Bajaj

Shri Sudheer Kumar Jain Hari Kishan Lohia Mahesh Kumar Bajaj

3) Relatives of KMP : Sunita Bajaj

Neena Jain

Ayushi Jain

Bhanwari Devi Jain

Rajdulari Devi Bajaj

Megha Bajaj Murari Lai Bajaj

Prerna Bajaj

Poonam Bajaj

4) Enterprises over which KMP : Daadi Stock Broking (P) Ltd

exercise significant influence Ridhi Sidhi Distributors (P) Ltd

Shiv Lalit Consultancy (P) Ltd Snehdeep Commerce (P) Ltd

Narayani Commodities (P) Ltd

Bajaj Overseas & Finance (P) Ltd.

Bajaj Portfolio Services (P) Ltd.

SNB Share Stock Broking (P) Ltd.

Madhusudhan Enclave (P) Ltd.

Rajesh Kumar Bajaj (HUF)

Sudheer Kumar Jain (HUF)

H K Lohia (HUF)

Padam Chand Jain (HUF) Father of Sudheer Jain

Satnarayan Bajaj (HUF) Karta (MKB)

M K Bajaj (HUF)

B. The company has a defined benefit gratuity plan.Every employee who has completed five years or more of services gets Gratuity on terms not lower than the amount payable under the Payment of Gratuity Act ,1972. The aforesaid scheme is funded with LIC. The following table summarizes the components of net benefit expenses recognized in profit & loss statement.

Note 3

Outstanding Contracts

Outstanding Contracts of the clients for the settlement period for which settlement has not taken place has not been considered for the purpose of financial statement made upto 31st March 2014. However brokerage and other charges receivables on such contracts have been accounted for.

Note 4

The company has availed the exemption with regard to the non inclusion of annual report of the subsidiaries in terms of general circular no 2/2011 issued by MCA on 8th February 2011. However the annual accounts of the subsidiaries shall be kept for inspection for any shareholders in the head office of the company. The company shall furnish a hard copy of the annual report of subsidiaries to any shareholder on demand.

Note 5

Information pursuant to section 212 of the Companies Act, 1956 is annexed as Annexure - 1 hereto Note 37

Previous year figures have been regrouped/rearraged wherever required.

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Mar 31, 2013

Note 1

Corporate Information

Lohia Securities Limited ("the company”) is engaged in the business of share trading and share broking and its related services in India for the last 18 years. The company offers finan- cial services such as broking for equity, derivatives and currency future, custody accounts, fi- nancial product distribution etc. The shares of the company are listed in Calcutta Stock Ex- change and Bombay stock Exchange (under permitted category)

Note 2

Contingent Liabilities

a) Bank Guarantee :

The company has taken Bank Guarantee of Rs.907.50 lacs from HDFC Bank Ltd against pledge of bank deposits of Rs.453.75 lacs and of Rs.340 lacs from Federal Bank against pledge of Bank Depos- its of Rs.170 lacs The above mentioned bank guarantees have been given as margin money in fa- vour of National Securities Clearing Corporation Limited (NSCCL). The company has taken bank guarantee of Rs.67.50 lacs from HDFC Bank against pledge of Bank Deposits of Rs.33.75 lacs which has been given in favour of Indian Clearing Corporation Limited, towards margin mon- ey and trade guarantee fund for trading in Bombay Stock Exchange (BSE).The company has taken bank guarantee of Rs.15,500/- against pledge of fixed deposits of Rs.15,500/- for security de- posit to the sales tax office.

b)Income Tax :

a)The company has disputed income tax demand outstanding of Rs.Rs.5,80,437/- for the Financial Year 2004-05. The company has been legally advised that the demand is likely to be deleted or substantially reduced and accordingly no provision has been made.

b)The income tax department has filed an appeal with ITAT Kolkata against the order of CIT(A)-VI for the Finan- cial Year 2007-2008. The maximum amount of liability involved in the appeal is Rs.Rs.9,98,598/-. The liability being contingent in nature, thus not provided in the Financial Statements.

c) The company has disputed income tax demand outstanding of Rs.24,84,920/- for the Financial Year 2009 -2010. The company has been legally advised that the demand is likely to be deleted or substantially re- duced and accordingly no provision has been made.

Note 3

Segment Reporting

The company''s operation predominantly comprises of only one segment "Activity relating to

Note 4

Outstanding Contracts

Outstanding Contracts of the clients for the settlement period for which settlement has not tak- en place has not been considered for the purpose of financial statement made upto 31st March 2013. However brokerage and other charges receivables on such contracts have been accounted

Note 5

The company has availed the exemption with regard to the non inclusion of annual report of the subsidiaries in terms of general circular no 2/2011 issued by MCA on 8th February 2011. How- ever the annual accounts of the subsidiaries shall be kept for inspection for any shareholders in the head office of the company. The company shall furnish a hard copy of the annual report of subsidiaries to any shareholder on demand

Note 6

Information pursuant to section 212 of the Companies Act, 1956 is annexed as Annexure - 1 hereto

Note 7

Previous year figures have been regrouped/rearranged wherever required.

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Mar 31, 2012

A) Rights Attached to the Shares

Each Share confers the right to one vote. Shareholders have the right to receive the dividend

* As the cost sharing ratio was not available from the transferor company in the scheme of demerger, the cost has not been allocated to the shares of the transferre company, hence carried at zero cost in the Financial Statements.

#Out of the above, shares valuing to Rs 7,484,939/- has been pledged with HDFC Bank for taking bank over draft facility.

( Refer Note 4(2) (i) ).

* Other Bank Balance represent

a) Bank Deposits valuing to Rs 14,06,00,000 given as margin money to National Securities Clearing Corporation Limited (NSCCL).

b) Bank Deposits valuing to Rs 8,62,500 given as margin money to Indian Clearing Corporation Limited (ICCL)

c) Bank Deposits valuing to Rs 7,50,000 given as security deposits to The Calcutta Stock Exchange Limited (CSE)

d) Bank Deposits valuing to Rs 8,00,000 given as margin money and security deposits to MCX Stock Exchange Limited

e) Bank Deposits valuing to Rs 5,85,00,000 pledge with HDFC Bank for obtaining term loan (refer note no 3)

I) Bank Deposits valuing to Rs 5,70,00,000 pledge with bank for obtaining bank guarantee . The said bank guarantee has been given to the NSCCL and ICCL as margin money

g) Bank Deposits includes deposits of Rs 86,50,000/-(2010-11:- Rs 1,25,00,000/-) with maturity of more than 12 months.

*Salary & Bonus include Rs 21,75,000/- for the year 2011-12 (2010-11 :- Rs 24,00,000/-) payment to Director's towards managerial remuneration under section 198 of the Companies Act, 1956. In terms of the resolution passed by the remuneration committee dated 30th July 2010. Mr. Sudheer Kumar Jain was eligible for monthly salary of Rs 75,000/-. However due to current market condition he voluntarily drew Rs 6,75,000/-- during the year. Consent letter for the wavier of the same has been received from him.

* General Expenses includes

1) amount of Rs 950/-(2010-2011:- Rs 1,02,557.60) pertaining to previous financial years

2) amount of Rs 2,00,000/- lost in street robbery, against which claim has been made with Insurance company but the matter is still pending and not resolved as on date of signing the Financial Statements

** Other Fees Paid to Auditors represents fees for appearing before appellate authority.

Note 1

Contingent Liabilities

a) Bank Guarantee :

The Company has taken Bank Guarantee of Rs 722.50 lacs from HDFC Bank Ltd against pledge of bank deposits of Rs 361.25 lacs, of Rs 340 lacs from Federal Bank against pledge of Bank Deposits of Rs 170 lacs and of Rs 10 lacs from United Bank of India against pledge of bank deposits of Rs 5 lacs and creation of first charge against movable plant & machinery and book debts. The above mentioned bank guarantees have been given as margin money in favour of National Securities Clearing Corporation Limited (NSCCL). The Company has taken bank guarantee of Rs 67.50 lacs from HDFC Bank against pledge of Bank Deposits of Rs 33.75 lacs which has been given in favour of Indian Clearing Corporation Limited, towards margin money and trade guarantee fund for trading in Bombay Stock Exchange (BSE).

b) Income Tax :

a) The company has disputed income tax demand outstanding of Rs 5,80,437/- for the Financial Year 2004-05. The company has been legally advised that the demand is likely to be deleted or substantially reduced and accordingly no provision has been made.

b) The income tax department has filed an appeal with ITAT Kolkata against the order of CIT(A)-VI for the Financial Year 2007-2008. The maximum amount of liability involved in the appeal is Rs 9,98,598/-. The liability being contingent in nature, thus not provided in the Financial Statements.

Note 2

Segment Reporting

The company's operation predominantly comprises of only one segment "Activity relating to Capital Market" and therefore segment reporting is not applicable to the company.

B. The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets Gratuity on terms not lower than the amount payable under the Payment of Gratuity Act, 1972. The aforesaid scheme is funded with LIC. The following table summarizes the components of net benefit expenses recognized in profit & loss account.

Note 3

Outstanding Contracts

Outstanding Contracts of the clients for the settlement period for which settlement has not taken place has not been considered for the purpose of financial statement made upto 31st March 2012. However brokerage and other charges receivables on such contracts have been accounted for.

Note 4

The company has availed the exemption with regard to the non inclusion of annual report of the subsidiaries in terms of general circular no 2/2011 issued by MCA on 8th February 2011. However the annual accounts of the subsidiaries shall be kept for inspection for any shareholders in the head office of the company. The company shall furnish a hard copy of the annual report of subsidiaries to any shareholder on demand.

Note 5

Information pursuant to section 212 of the Companies Act, 1956 is annexed as Annexure - 1 hereto

Note 6

The Revised Schedule VI has become effective from 1st April 2011 for the preparation of Financial Statements. This has significantly impacted the disclosure and presentation made in the financial statement. Previous year figures have been regrouped/reclassified wherever necessary to correspond with current year classification / disclosure.

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Mar 31, 2011

1 . Contingent Liability

a) Bank Guarantee

The Company has taken Bank Guarantee of Rs.1,122.50 Lacs from HDFC Bank Ltd. against pledge of fixed deposit receipts of Rs.561.25 Lacs, of Rs.450 Lacs from Punjab National Bank against pledge of Fixed Deposit of Rs.225. Lacs, of Rs.240 Lacs from Federal Bank against pledge of Fixed Deposits of Rs.120 Lacs and of Rs.60 Lacs from United Bank of India against pledge of fixed deposits of Rs.30 Lacs and creation of first charge against movable Plant & Machinery and book debts. The company has also taken bank guarantee of Rs.50 Lacs from Oriental Bank of Commerce against pledge of fixed deposits of Rs.25 Lacs and creation of second charge against movable Plant & Machinery and book debts. The above mentioned bank guarantees have been given as margin money in favour of National Securities Clearing Corporation Ltd. The Company has taken Bank Guarantee of Rs.67.50 lacs from HDFC Bank against pledge of fixed deposit of Rs.33.75 Lacs which has been given in favour of BOI Shareholding Limited, towards margin money and trade guarantee fund for trading in Bombay Stock Exchange Limited.

b) Income Tax

The company has received a demand of Rs.7,07,509/- & Rs.3,05,27,574/- from Income Tax Department for the Financial Year 2004-2005 & 2007-2008 out of which Rs.1,27,072/- for the Financial Year 2004-2005 has been paid. The company has filed an appeal to Commissioner of Income Tax Kolkata VI against the balance demand of Rs.5,80,347 for the year 2004-2005 and for the entire amount for the Financial year 2007-2008 . The company has not made the provision of the entire amount demanded by Income Tax Department as it is reasonably hopeful that the case would be decided in company's favour.

2. Compliance of Accounting Standards issued by the Institute of Chartered Accountants of India.

(a) Segment Reporting

The company's operation predominantly comprises of only one segment i.e “Activity relating to Capital Market” and therefore segment reporting is not applicable to the company.

(b) Related Party Disclosure:

Information given in accordance with Accounting Standard- 18

A. Related party relationship

i. Enterprise that are controlled by the reporting enterprises :

1. Trade City Securities Pvt. Ltd. - Wholly Owned Subsidiary Company

2. Trade City Commodities Pvt. Ltd. - Wholly Owned Subsidiary Company

3. Trade City Real Estate Pvt. Ltd. - Wholly Owned Subsidiary Company

4. Trade City Barter Pvt. Ltd. - Wholly Owned Subsidiary Company

ii Key Management Personnel :

1. Shri Rajesh Kumar Bajaj

2. Shri Sudheer Kumar Jain

iii. Relative of Key Management Personnel

1. Neena Jain

2. Sunita Bajaj

iv. Enterprises over which key management personnel exercises significant influence exists: -

1. Shiv Lalit Consultancy Pvt. Ltd.

2. Naryani Commodities (P) Ltd.

3. Snehdeep Commerce (P) Ltd.

4. Ridhi Sidhi Distributor Pvt Ltd.

5. Daadi Stock Broking Pvt Ltd.

6. Rajesh Kumar Bajaj (HUF)

7. Sudheer Kumar Jain (HUF)

3. Employee Benefits:

B. The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets Gratuity on terms not lower than the amount payable under the Payment of Gratuity Act, 1972. The aforesaid scheme is funded with LIC. The following table summarizes the components of net benefit expenses recognized in profit & loss account.

4. Outstanding contracts

Outstanding contracts of the clients for the settlement period for which settlement has not taken place has not been considered for the purpose of financial statement made up to 31st March' 2011. However brokerage income and other charges receivable on such contract has been accounted for.

5. Additional information pursuant to part - IV of Schedule VI to the Companies Act, 1956 is annexed as Annexure - I hereto

6. The company has obtained a term loan of ` 320 lacs from HDFC Bank against pledge of Fixed Deposits of ` 160 lacs.

7. The Company has pledged fixed deposit receipts of ` 550 Lacs with National Securities Clearing Corporation Limited as Margin Money. Compiled by : Dion Global Solutions Limited

8. Prior period Items General Expenses include Rs.1,02,557.60 pertaining to previous financial year.

9. Interest Expenses includes Rs.12,05,457.27 paid to trading member viz Trade City Securities (P) Ltd on the margin money given by it on behalf of its client to make the Fixed Deposits of the said amount. The amount of interest received from the banks on the said Fixed deposits reimburses to the trading member i.e. Trade City Securities (P) Ltd.

10. Information pursuant to Section 212 of the Companies Act. 1956 is annexed as Annexure - II hereto.

11. The company has availed exemption with regard to the non inclusion of annual report of the subsidiaries companies in terms of general circular no. 2/2011 issued by Ministry of Corporate Affairs on 8th February 2011.

12. Previous year's figure have been regrouped / rearranged wherever considered necessary.

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Mar 31, 2010

1 .a) Contingent Liability

Bank Guarantee

The Company has taken Bank Guarantee of Rs 1,130 Lakhs from HDFC Bank Ltd. against pledge of fixed deposit receipts of Rs. 565 Lakhs , of Rs. 250 Lakhs from Punjab National Bank against pledge of Fixed Deposit of Rs. 125 Lakhs and of Rs. 100 Lakhs from United Bank Of India against pledge of fixed deposits of Rs. 50 lakhs and creation of first charge against movable Plant & Machinery and book debts. The company has also taken bank guarantee of Rs. 500 Lakhs from Oriental Bank of Commerce against pledge of fixed deposits of Rs. 250 lakhs and creation of second charge against movable Plant & Machinery and book debts. The above mentioned bank guarantees have been given as margin money in favour of National Securities Clearing Corporation Ltd. The Company has taken Bank Guarantee of Rs. 150 lakhs from HDFC Bank against pledge of fixed deposit of Rs. 75 lakhs which has been given in favour of BOI Shareholding Limited, towards margin money and trade guarantee fund for trading in Bombay Stock Exchange Limited.

2. Compliance of Accounting Standards issued by the Institute of Chartered Accountants of India.

(a) Segment Reporting

The companys operation predominantly comprises of only one segment i.e "Activity relating to Capital Market" and therefore segment reporting is not applicable to the company.

(b) Related Party Disclosure:

Information given in accordance with Accounting Standard- 18

A. Related party relationship

i. Enterprise that are controlled by the reporting enterprises :

1. Trade City Securities Pvt. Ltd. – Wholly Owned Subsidiary Company

2. Trade City Commodities Pvt. Ltd. – Wholly Owned Subsidiary Company

3. Trade City Real Estate Pvt. Ltd. – Wholly Owned Subsidiary Company

3. Trade City Barter Pvt. Ltd. – Wholly Owned Subsidiary Company ii Key Management Personnel:

1. Mr. Rajesh Kumar Bajaj

2. Mr. Sudheer Kumar Jain iii. Relative of Key Management Personnel

1. Sunita Bajaj

2. Neena Jain

iv. Enterprises over which key management personnel exercises significant influence exists: -

1. Shiv Lalit Consultancy Pvt. Ltd.

2. Narayani Commodities (P) Ltd.

3. Snehdeep Commerce (P) Ltd.

4. Ridhi Sidhi Distributor Pvt Ltd.

5. Daadi Stock Broking Pvt Ltd.

6. Rajesh Kumar Bajaj (HUF)

7. Sudheer Kumar Jain (HUF)

4. Outstanding contracts

Outstanding contracts of the clients for the settlement period for which settlement has not taken place has not been considered for the purpose of financial statement made up to 31st March 2010. However brokerage income and other charges receivable on such contract has been accounted for.

5. Additional information pursuant to part - IV of Schedule VI to the Companies Act, 1956 is annexed as Annexure - I hereto

6. The company has obtained a term loan of Rs. 320 lacs from HDFC Bank against pledge of Fixed Deposits of Rs. 160 lacs. The company has also obtained a bank overdraft limit of Rs 18 lacs from HDFC Bank against pledge of Fixed Deposits of Rs. 20 lakhs.

7. The Company has pledged fixed deposit receipts of Rs 548 Lacs with National Securities Clearing Corporation Limited as Margin Money.

8. Prior period Items

General Expenses include Rs.20,638.14 pertaining to previous financial year.