Balance Sheet

OTCEI SECURITIES LIMITED  BALANCE SHEET AS AT MARCH  31, 2007 As on As on 31-Mar-2007 31-Mar-2006 Schedule Amount (in Rs.) Amount (in Rs.) SOURCES OF FUNDS SHAREHOLDERS' FUNDS     Share Capital 1        42,500,700               42,500,700 UNSECURED LOANS (A)  Deposits from Sub-brokers 2          8,280,870                 8,660,390     50,781,570           51,161,090 APPLICATION OF FUNDS FIXED ASSETS 3     Gross Block         3,824,680                3,768,437     Less: Accumulated Depreciation         3,686,971                3,533,575     Net Block          137,709                234,862 DEFERRED TAX ASSET 4                         -                                - CURRENT ASSETS,LOANS AND ADVANCES     Sundry Debtors 5         2,729,087                 5,204,945     Cash and Bank Balances 6       39,811,169              48,833,187     Other Current Assets 7            663,148                    547,225     Loans & Advances 8        25,000,000               25,000,000       68,203,404              79,585,357 LESS: CURRENT LIABILITIES AND PROVISIONS      Liabilities 9       29,244,065              42,084,372       29,244,065              42,084,372 NET CURRENT ASSETS       38,959,339               37,500,986 PROFIT AND LOSS ACCOUNT - NET LOSS       11,684,521              13,425,242     50,781,570           51,161,090 Notes forming part of  Accounts 10 Notes forming part of  Accounts 11 As per our report                                          For Mittal & Associates        Shri Munesh Goel A. Manickavelu Chartered Accountants Chief Executive Officer Director Mahendra Mehta Shri S C Bhargava Partner Chairman (Membership No. 42990) Mumbai. Dated: August 14,2007.

OTCEI SECURITIES LIMITED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2007 Current Year Previous year Schedule Amount (in Rs.) Amount (in Rs.) INCOME      Brokerage ( Gross)           10,876,175              12,629,206      Interest from Investments in bank deposits             1,927,652                1,824,919      Profit on Sale of Investments                             -                       1,435      Depository Charges collected                593,668                   662,660      Other Income                 240,279                     61,976      Penalty Income                   72,923                     63,010         13,710,698           15,243,207 EXPENDITURE     Brokerage Paid to sub-brokers              9,011,059              10,809,365     Insurance Premium                     27,232                      18,000     Telephone Expenses                   56,876                     77,740     Repairs & Maintenance                138,652                   148,750      -Computers & Office Equipments     Electricity Charges                162,867                   151,170     NSE Membership & Subscription Charges                 100,000                    100,000     Rates & Taxes                     4,500                        7,500     Deputation Costs (Refer Note 2.c)             1,391,387                1,297,467     Asset Usage Charges  (Refer Note 2.d)                   79,665                     79,665     Depository Charges paid                428,919                   657,738     Printing & Stationery Expenses                   87,442                     85,500     Professional Charges                   72,918                      72,000     Directors Sitting Fees                   60,000                      48,000     Penalties & Fines Paid                           -                     100,696     Other Expenses 10                179,759                   265,160     Depreciation                153,395                   596,140         11,954,670           14,514,890 NET PROFIT / (LOSS) BEFORE TAX             1,756,028                   728,316     - Current                             -                                -     - Deferred Tax Expense (Refer Note 2.f.ii)                             -                   413,482     - Fringe Benefit Tax                   15,306                     20,366 NET PROFIT / (LOSS) AFTER TAX             1,740,722                   294,468 NET (LOSS) BROUGHT FORWARD          (13,425,243)            (14,133,193) OPENING DEFERRED TAX CREDIT RECOGNISED (Refer Note 2.f.ii)                           -                     413,482 NET (LOSS) CARRIED FORWARD TO BALANCE SHEET        (11,684,521)          (13,425,242) EARNINGS PER EQUITY SHARE OF RS. 10/- EACH 0.41 0.07 (Basic and diluted - Refer Note h) Notes forming part of  Accounts 10 Notes forming part of  Accounts 11                                                  As per our report                                          For Mittal & Associates        Shri Munesh Goel A. Manickavelu Chartered Accountants Chief Executive Officer Director Mahendra Mehta Shri S C Bhargava Partner Chairman (Membership No. 42990) Mumbai. Dated: August 14,2007.