NSEIL Annual Report 2011 PDF

Y Y
NATIONAL STOCK EXCHANGE

OF INDIA LIMITED
NINETEENTH ANNUAL REPORT
Y 2010-11
Y
NATIONAL STOCK EXCHANGE OF INDIA LIMITED
Nineteenth Annual Report
BOARD OF DIRECTORS
Dr. Vijay L. Kelkar : Chairman
Mr. C. Achuthan
Mr. Anjan Barua
Mrs. Ranjana Kumar
Mr. A.P. Kurian
Dr. Rajiv B. Lall
Mr. S. B. Mainak
Mr. Y.H. Malegam
Mr. S. B. Mathur
Dr. K.R.S. Murthy
Dr. R.H. Patil
Mrs. Bhagyam Ramani
Dr. V.A. Sastry
Mr. Deepak Satwalekar
Mr. Ravi Narain : Managing Director
Ms. Chitra Ramkrishna : Joint Managing Director
MANAGEMENT TEAM*
Mr. J. Ravichandran : Director (F&L) & Company Secretary
Mr. R. Sundararaman # : Senior Vice President
Mr. Yatrik R. Vin : Senior Vice President
Mr. R. Nanda Kumar : Senior Vice President
Mr. Ravi Varanasi : Senior Vice President
Mr. Vidhu Shekhar : Vice President
Ms. K. Kamala : Vice President
Mr. Nirmal Mohanty : Vice President
Mr. Hari K : Vice President
Mr. Suresh Narayan : Vice President
Mr. T. Venkat Rao : Vice President & Head-Northern Region
Mr. Chandrashekhar Mukherjee : Vice President
Mr. Suprabhat Lala : Vice President
Mr. Mahesh Haldipur : Asst. Vice President
Mr. C.N. Upadhyay : Asst. Vice President
Mr. Arup Mukherjee : Asst. Vice President
Mr. R. Jayakumar # : Asst. Vice President
Mr. Ravindra Mohan Bathula : Asst. Vice President
Ms. Nisha Subhash : Asst. Vice President
Mr. Nilesh Tinaikar : Asst. Vice President
Ms. Rana Usman # : Asst. Vice President
Mr. Mayur Sindhwad : Asst. Vice President
Mr. Nagendra Kumar # : Asst. Vice President
Mr. Vitthal More : Asst. Vice President
Mr. Sandip Mehta : Asst. Vice President
Mr. Sumit Tyagi : Head- Sales & Marketing
Mr. Amol Mahajan : Asst. Vice President
Ms. Divya Malik Lahiri : Asst. Vice President
Mr. Rehena D’sauza : Asst. Vice President
Mr. Sunitha Anand : Asst. Vice President & Head Southern Region
AUDITORS : M/s. Khandelwal Jain & Co.
Chartered Accountants
12-B, Baldota Bhavan, 5th Floor
Maharshi Karve Road
Churchgate, Mumbai-400 020
REGISTERED OFFICE : “Exchange Plaza”
Plot C-1, Block ‘G’
Bandra Kurla Complex,
Bandra (East), Mumbai- 400 051
REGISTRAR & TRANSFER AGENTS : Link Intime India Pvt. Ltd.
C-13, Pannalal Silk Mills Compound
L B S Marg, Bhandup (West)
Mumbai-400 078
# on deputation to NSCCL
DIRECTORS’ REPORT
To,
The Members,
Your Directors have pleasure in presenting the Nineteenth Annual Report and Audited Accounts of the Company
for the year ended March 31, 2011.
1. OPERATIONS AND MAJOR DEVELOPMENTS DURING THE YEAR

1.1 Global rankings- Equity Derivatives Market
1.1.1 Stock Futures

During the year 2010, NSE continued to rank as the 2nd largest exchange in respect of contracts traded in stock
futures. The details of top 5 exchanges trading stock futures is given in Table 1 below:
Table 1
Sr. No. Exchange Contracts traded
during 2010
(in millions)
1 NYSE Liffe Europe 291.27
2 National Stock Exchange of India 175.67
3 Eurex 150.75
4 JSE 78.76
5 Korea Exchange 44.71
Source: WFE.
1.1.2 Index Options
NSE continues to be ranked as the 2nd largest exchange in the world in index options. The details of top 5
exchanges in index options are given in Table 2 below:
Table 2
during 2010
(in millions)
1 Korea Exchange 3,525.90
3 Eurex 342.92
4 Chicago Board Options Exchange 270.01
5 Taifex 88.91
Source: WFE
1
1.1.3 Index Futures

NSE continues to be ranked as the 3rd largest exchange in the world in index futures. The details of top 5
exchanges in index futures are given in Table 3 as under:
Table 3
during 2010
(in millions)
1 CME Group 695.15
2 Eurex 407.77
4 Osaka SE 147.60
5 NYSE Liffe Europe 94.27
Source: WFE
1.1.4 Nifty Index Global rankings
Nifty Index options ranked 4th across the top 20 Index options traded globally during the year 2010. Nifty Index
futures ranked 9th across the top 20 Index futures traded globally during the year 2010.
(Source: www.futuresindustry.org rankings based on number of contracts traded or cleared between Jan 10 - Dec 10)
1.1.5 All products
NSE ranked 5th across all the Derivatives exchanges in the world based on the volume of contracts traded during
the year 2010.
(Source: www.futuresindustry.org rankings based on number of contracts traded or cleared between Jan 10 - Dec 10)
1.2 Global rankings-Capital Market

In capital market segment, NSE continues to remain the fourth largest exchange in the world based on the number
of transactions during the calendar year 2010. The details of top 10 Exchanges are given in the Table 4 below.
Table 4
Sr. No. Exchange No. of
transactions
(in Thousands)
1 NYSE Euronext (US) 2,050,985.2
2 NASDAQ OMX 1,743,302.2
3 Shanghai SE 1,661,489.0
4 National Stock Exchange of India 1,556,620.5
5 Shenzhen SE 1,329,287.6
6 Korea Exchange 921,843.2
7 Bombay SE 555,719.3
8 Tokyo SE Group 334,676.9
9 Taiwan SE Corp. 232,740.0
10 London SE Group 207,497.8
Source: WFE. The sale and purchase of a share are counted as one transaction
2
1.3 Membership at NSE

92 new members (61 in CM, F&O and CD segments; 18 in CM and F&O segments; 12 in CD segment; and 1 in
CM and CD segments) were registered during the Financial Year 2010-11. The Exchange also granted additional
segment membership to 68 members during the Financial Year 2010-11.
Table 5 showing membership details for the Financial Year 2010-11
Particulars CM WDM F&O CD
segment segment segment segment
SEBI registered trading members 1,337 81 1,210 739
Members registered in additional segments 4 1 10 57
Registered Sub-brokers / Authorised persons 54,290 Nil 44,731 3,020
Surrender of membership 10 4 9 4
1.4 Wholesale Debt Market (WDM) segment

The WDM segment provides a trading platform for trading of a wide range of fixed income securities. Initially,
government securities, treasury bills and bonds issued by public sector undertakings (PSUs) were made available
for trading. This range has been widened to include non-traditional instruments like floating rate bonds, zero
coupon bonds, index bonds, structured products, corporate debentures, state government loans, SLR and
non-SLR bonds issued by financial institutions, units of mutual funds and Supra Institutions (Foreign institutions).
There were 4,479 securities available for trading as on March 31, 2011 all belonging to listed category.
The turnover on WDM segment decreased in the financial year 2010-11. The turnover decreased from
Rs 5,63,815.93 crores in 2009-10 to Rs 5,59,446.75 crores in 2010-11 registering a decline of 0.77%. The average
daily turnover decreased to Rs 2,255.83 crores in 2010-11 from Rs 2,359.06 crores in 2009-10.
The business growth on the WDM segment of the Exchange is presented in Figure 1.
Figure 1
3
Turnover in WDM segment for FY 2010-11 is presented in Figure 2 as under:-

Figure 2
Avgdaily Value (`.Cr.)

The transaction in government securities account for a substantial share of transaction on the WDM segment with
54.49% in 2010-11. Market capitalisation of the WDM segment has witnessed a constant increase indicating an
increase in the number of securities available for trading on this segment. Total market capitalisation of the
securities available for trading on WDM segment stood at Rs 35,94,877.15 crores as on March 31,2011.
Table 6: Trades in WDM segment
Particulars 2010-11 2009-10

Number of Trades 20,383 24,069
Average monthly number of trades 1,699 2,006
Average daily number of trades 82 101
Average Trade Value (Rs. in crores) 27.45 23.42
Average Daily Turnover (Rs. in crores) 2,255.83 2,359.06
Turnover (Rs. in crores) 5,59,446.75 5,63,815.93
Number of Active Scrips 1,111 1,144
Number of Active members 35 36
1.4.1 Securities Profile

The turnover of government securities in WDM segment decreased by 7.02 % during 2010-11. Its share in total
turnover decreased from 58.15% in 2009-10 to 54.49% in 2010-11. The share of Treasury Bills increased from
16.49% in 2009-10 to 17.64% in 2010-11. The turnover of Non Government securities in WDM segment increased
by 9.01% during 2010-11. During 2010-11, the share of Non Government Securities in total turnover increased
to 27.87% as compared to 25.37% in 2009-10.
4
Table 7 and Figure 3 represent security-wise distribution of turnover.

Table 7: Security-wise Distribution of Turnover
Securities 2010-11 2009-10
Turnover % of Turnover % of
(Rs. in crores) Turnover (Rs.in crores) Turnover
Government Securities 3,04,836.02 54.49 3,27,837.41 58.15
T-Bills 98,713.15 17.64 92,961.12 16.49
PSU Bonds 53,641.20 9.59 60,883.20 10.80
Institutional Bonds 55,944.31 10.00 25,949.67 4.60
Bank Bonds and others 2,475.30 0.44 2,520.00 0.44
Corporate Bonds 43,836.77 7.84 53,664.53 9.52
Total 5,59,446.75 100.00 5,63,815.93 100.00
Figure 3: Security–wise Distribution of Turnover
WDM Security Trades for 2010-11
1.4.2 Issuance in WDM

A total of 1080 securities were listed during the financial year 2010-11.As at end of March 2011, 4,479 securities
were available for trading on the WDM segment. Details of Issuance in WDM are provided in Table 8.
Table 8: Issuance in WDM
Financial Year No. of Total No. of Market Capitalisation
New Securities Securities (at year end Rs. in Crs)
Listed (at year end)
2004-05 1,299 3,097 14,61,734.37
2005-06 564 3,177 15,67,573.81
2006-07 661 3,252 17,84,800.57
2007-08 856 3,566 21,23,346.28
2008-09 1,026 3,954 28,48,315.50
2009-10 959 4,140 31,65,929.48
2010-11 1,080 4,479 35,94,877.15
5
1.4.3 Market Capitalisation

Total Market capitalisation of the securities available for trading in WDM segment increased to
Rs 35,94, 877.15 crores in 2010-11 from Rs. 31,65,929.48 crores in the previous year registering a growth of
13.55 %. The Central Government securities accounted for the largest share of the market capitalisation with
60.80% while Non Government Securities accounted for 18.07 %. The composition of market capitalisation of
various securities on WDM is presented in Table 9.
Table 9: Market Capitalisation of WDM segment
Securities As on March 2011 As on March 2010
Market % of total Market % of total
Capitalisation Capitalisation
(Rs.in crores) (Rs. in crores)
Central Government Securities 21,85,721.40 60.80 19,50,436 61.61
PSU Bonds 1,90,921.58 5.31 1,62,979 5.15
State Loans 6,22,069.31 17.30 5,36,996 16.96
T-Bills 1,37,677.03 3.83 1,35,696 4.29
Others 4,58,487.83 12.76 3,79,823 11.99
Total 35,94,877.15 100.00 31,65,930 100.00
Figure 4: Market Capitalisation of WDM segment
1.4.4 Corporate Bond Market

Currently for reporting trades in Corporate bonds, Exchanges provides two platform namely NEAT WDM and
Report CBT. The average daily traded value reported through corporate bond for 2010-11 was Rs.628.84 crores
(NEAT WDM & Report CBT) as compared to Rs 655.30 crores for 2009-10 with an average of around
32 trades being reported on a daily basis as compared to 51 trades for 2009-10.
6
Turnover of Corporate Bond is presented in Table 10 and Figure 5

Table 10: Corporate Bond Turnover
Corporate Bond Turnover 2010-11 2009-10 % Change
Total Turnover (Rs Crs) 1,55,951.24 1,56,615.53 (0.42)
Average Daily Turnover (Rs Crs) 628.84 655.30 (4.04)
Total Number of Trades 8,006 12,231 (34.54)
Average Daily Trades 32 51 (37.25)
Figure 5: Corporate Bond Turnover for FY 2010-11
Avgdaily Value (`.Cr.)

1.5 Capital Market (CM) segment
The total turnover of CM segment in the year 2010-11 is Rs. 35,77,410 crores as compared to
Rs. 41,38,023 crores in the year 2009-10, showing a decrease of 14 %. The average daily traded value in 2010-11
is Rs. 14,029.06 Crores as compared to Rs. 16,959.11 crores in 2009-10.
As on March 31, 2011, the number of listed companies available for trading was 1,484 compared to 1,359 at the
end of March 31, 2010. In the current year, Exchange allowed trading facility in 61 securities in permitted to trade
category.
Figure 6: Month-wise Turnover and Average Daily Turnover in CM segment
Traded Value
7
The changes in turnover statistics over the preceding year are presented in Table No. 11
Table 11: Turnover Statistics on CM segment
Sr. Details 2010-11 2009-10 %Rise/(Fall)
No. in 2010-11
1 Total Number of trades (in lakhs) 15,507 16,816 (7.78)
2 Total no. of shares traded (in lakhs) 18,24,515 22,15,530 (17.65)
3 Total Turnover (Rs. Cr.) 35,77,410 41,38024 (13.55)
4 Market Capitalisation at the end of year (Rs. Cr.) 67,02,616 60,09,173 11.54
5 Turnover of S&P CNX Nifty Securities (Rs. Cr.) 16,89,977.59 21,46,022.84 (21.25)
6 Total number of listed companies. 1,574 1,470 7.07
1.5.1 Index Movement:-

S & P CNX Nifty saw an upward movement of 11.14% moving from 5,249.20 to 5,833.75 over the financial year
2010-11.
During the year 2010-11, the S&P CNX Nifty touched a high of 6,338.50 on November 05, 2010 and low of
4,786.45 on May 25, 2010. Movement of S&P CNX Nifty is shown in Figure 7
The turnover of S&P CNX Nifty securities was Rs. 16,89,977.59 crores in the year 2010-11 as compared to
Rs. 21,46,022.84 crores. The contribution of S&P CNX Nifty securities turnover to total turnover during the year
2010-11 was 47.21% compared to 51.86% in the year 2009-10.
Figure 7: S & P CNX Nifty movement
1.5.2 Market Capitalisation

The market capitalisation of securities available for trading on CM segment has increased by 11.54% during
2010-11 from Rs. 60,09,173 crores as on March 31, 2010 to Rs. 67,02,616 crores as on March 31, 2011. Increase
in market capitalisation is mainly on account of listing of new securities in capital market segment. The market
capitalisation growth is shown in Figure 8.
During the year, the market capitalisation of S&P CNX Nifty and S&P CNX Nifty Junior also increased by
15.10% and 8.28% respectively.
8
Figure 8 - Market Capitalisation during year 2010-11
1.5.3 Distribution of Turnover

Turnover-wise distribution of trading members
About 74.04% of the trading members had an average daily turnover of Rs. 1 crore or more in 2010-11 as
compared to 79.27% in the previous year. In 2010-11 around 28% of the trading members have daily turnover
more than Rs. 10 crores as against 34% in 2009-10.
Figure No. 9
9
1.5.4 Listing: Initiatives taken during the financial year 2010-11

i) NEAPS
The Exchange has launched the online web based application - NEAPS (NSE Electronic Application
Processing System) to facilitate web based filing of applications for further issues by listed companies.
In the first phase, the facility has been made available for the following further issues - FCCB, ADR,
GDR, Bonus, QIP and ESOP. Salient features of NEAPS are as under:
• Submission of application with digital signature.
• Online processing of the listing application by the Exchange.
• Status of application and intimation of expected response time by the Exchange.
• Online intimation of pending requirement, in-principle approval letter, etc.
• Immediate updation of status of the application to the company and email alert.
This initiative has enhanced the quality and speed of processing the applications and will facilitate the
companies to move towards paperless processing.
ii) Compliance Calendar
All listed companies are required to comply with the various clauses of Listing Agreement quarterly,
annually and on happening of event in certain cases. In order to facilitate the compliances of critical
clauses by listed companies within stipulated time, the compliance calendar has been provided on the
Exchange website.
iii) ‘Know Your NSE' Program
‘Know your NSE' is an initiative aimed at building relationship with corporates and to provide an insight
into functioning of the Exchange. An overview about live trading, capital market, futures and options,
clearing, settlement, risk management, listing and surveillance was imparted during the session. The
program organised at Mumbai and Hyderabad was attended by the Chief Financial Officers and Company
Secretaries from corporates. More such programs are proposed to be organised in other cities.
iv) Corporate Homepage on Exchange website
The corporate homepage has been redesigned with enhanced features to facilitate stake holders to get the
information relating to corporates in a comprehensive and more user friendly manner. A quick grasp of
the features are as under:
• Standardisation of Company Names.
• Search Facility with multiple parameters like Company Name, Symbol, Short Description, Industry,
Period of Broadcast, etc.
• Links to other sub-sections within the corporate pages.
• Subject standardisation.
• Export the data to CSV formats.
1.5.5 New Developments during the year

In year 2010-11, various new developments have been taken by the Exchange. The details of the same are given
below:-
10
June 2010 Introduction of Indian Depository Receipt

IDRs are negotiable receipts issued by an Indian bank or trust company, the depositary, to evidence ownership of
a stated number of shares of the securities of a foreign company that the company or shareholder has deposited
with the depositary's branch office, affiliate, or agent in the foreign country. IDR has not only given international
market exposure to Indian investors but also created a new asset class for the investor.
The first IDR of Standard Chartered Bank is listed and available for trading on Exchange on June 11, 2010.
July 2010 Real-time dissemination of India VIX

The Exchange started real - time calculation of India Volatility Index (India VIX) w.e.f. July 19, 2010. Volatility
Index is a measure of market's expectation of volatility over the near term. Volatility is often described as the
"rate and magnitude of changes in prices" and in finance often referred to as risk.
India VIX is a volatility index computed by NSE based on the order book of NIFTY Options. For this, the best
bid-ask quotes of near and next-month NIFTY options contracts which are traded on the F&O segment of NSE
are used. India VIX indicates the investor's perception of the market's volatility in the near term i.e. it depicts the
expected market volatility over the next 30 calendar days. Higher the India VIX values, higher the expected
volatility and vice-versa. India VIX uses the computation methodology of CBOE, with suitable amendments to
adapt to the NIFTY options order book using cubic splines, etc. Investors use it to gauge the market volatility and
base their investment decisions accordingly.
October 2010 Launch of Call Auction in Pre - Open Session

The Exchange has introduced call auction in pre-open session w.e.f. October 18, 2010. Pre open phase is the
session prior to the continuous trading. The session allows liquidity to be pooled during this session by allowing
the participants to place buy as well as sell orders. No matching takes place when the market is in pre-open phase.
The users are allowed to enter / modify / cancel orders. Pre-open session provides a trading facility where orders
are batched together for simultaneous execution at a predefined time and at a single price which best equates the
aggregated buy and sell. The pre-open session helps in better discovery of opening price, minimises opening
volatility of prices of securities and also allows for overnight news in securities to be suitably reflected in the
opening price.
The salient features of call-auction in pre-open session are given below:-
• The pre-open session is introduced in securities forming part of Nifty indices.
• The pre-open session is for 15 minutes; out of which first 8 minutes is for order entry with last minutes
will have a random closure. 4 minutes for order matching and trade confirmation and 3 minutes is buffer
timings.
• The equilibrium price of pre-open is an opening price of a security. The equilibrium price is a price at
which maximum value is executable.
• All unmatched order in pre-open is shifted to normal market.
• Risk management at order level in pre-open session.
1.6 FUTURES AND OPTIONS SEGMENT

The financial year 2010-11 witnessed an increase of 65.58% in volumes and 54.94% in average open interest.
The number of contracts traded also increased by 52.25% vis-à-vis 2009-10 in the F&O segment of the Exchange.
Average contribution of proprietary category increased to 38.14% in 2010-11 from 31.66% in 2009-10.
11
1.6.1 Comparison of the close prices of the NIFTY Near Month Futures Contract (F&O segment)
with the underlying movement of the NIFTY Index (Cash segment) along with the Daily
Traded value of the F&O segment (Figure 10):
Note: Muhurat trading on October 17, 2009

1.6.2 Records achieved in the F&O segment during 2010-11 (Table 12):
Index Futures (traded value in Rs. crores) 40,123 23-Nov-10
Index Options (traded value in Rs. crores) 1,98,096 24-Feb-11
Stock Options (traded value in Rs. crores) 6,929 12-Aug-10
Total F&O Traded value (in Rs. crores) 2,77,277 24-Feb-11
Number of trades 30,29,676 24-Feb-11
Number of contracts traded 1,04,97,798 24-Feb-11
Open Interest on Contract Expiry (number of contracts) 74,36,882 26-Aug-10
It may be observed that during 2010-11, new records were set on most of the categories.
12
1.6.3 (a) Basic Statistics of the F&O Segment (Table 13):

Particulars Apr 10 July 10 Oct 10 Jan 11 2010-11 2009-10 % Change
to Jun 10 to Sep 10 to Dec 10 to Mar 11
Traded Value (Rs. in crores)
Daily Average 92,567 1,01,847 1,27,304 1,39,500 1,15,150 72,392 59.06
Number of Contracts
Daily Average 34,32,844 36,08,592 42,16,291 50,57,126 40,71,701 27,83,991 46.25
Open Interest (Rs. in crores)
End of day averages 1,29,826 1,74,467 1,63,368 1,40,566 1,52,057 98,141 54.94
% of Open interest to
Daily Average
Traded value 140 171 128 101 132 136
1.6.3 (b) A graphical presentation of monthly product- wise contribution is given below (Figure 11):
It may be observed that contribution of Index Option to Total Turnover has increased from 54.17% in April 2010
to 71.18% in March 2011.
1.6.4 Institutional Retail & Proprietary Investors - Turnover Analysis (Table 14):
No. Year Institutional investors Retail Proprietary
Average Percentage Average Percentage Average Percentage
Gross Contribution Gross Contribution Gross Contribution
Traded Traded Traded
Value Value Value
(Rs. in Crs.) (Rs. in Crs.) (Rs. in Crs.)
1 2009-10 3,97,743 13.53 14,93,247 54.81 9,31,287 31.66
2 2010-11 6,18,641 12.69 23,96,870 49.17 18,59,193 38.14
It may be observed that average contribution of proprietary category has increased in the year 2010-11 as compared
to the year 2009-10.
13
1.6.5 Comparative analysis of the Traded Value in the F&O segment with the Cash segment (Figure 12):
The ratio of F&O segment turnover to cash segment turnover was 8.18 for the year 2010-11 as compared to 4.27
for 2009-10.
1.6.6. Product-wise Basic Statistics (Table 15):

Category Product Apr 10 July 10 Oct 10 Jan 11 2010-11 2009-10 % Change
to Jun 10 to Sep 10 to Dec 10 to Mar 11
Traded Value (Rs. in crores)
Daily Stock Futures 20,052 22,696 24,709 18,966 21,637 21,292 1.62
Average Index Futures 16,626 14,960 17,969 19,143 17,153 16,125 6.37
Stock Options 3,621 4,355 4,505 3,724 4,056 2,074 95.59
Index Options 52,268 59,835 80,121 97,669 72,305 32,901 119.76
Number of Contracts
Daily Stock Futures 6,26,377 7,59,445 8,14,926 7,26,782 7,32,447 5,96,685 22.75
Average Index Futures 6,83,546 5,66,674 6,24,427 7,28,437 6,49,699 7,30,766 -11.09
Stock Options 1,04,234 1,36,471 1,38,611 1,32,256 1,27,986 57,444 122.80
Index Options 20,18,687 21,46,001 26,38,326 34,69,651 25,61,569 13,99,096 83.09
Open Interest (end of respective expiry day)
Average Stock Futures 38,039 49,470 47,804 36,059 42,843 31,369 36.58
Value in Index Futures 22,545 26,891 24,042 21,591 23,767 18,648 27.45
Rs. Crore Stock Options 8,917 10,873 9,675 7,911 9,344 6,955 34.35
Index Options 85,500 1,13,233 1,04,039 98,185 1,00,239 61,299 63.52
Average Stock Futures 13,10,639 17,40,756 16,96,819 14,60,460 15,52,169 9,45,028 64.25
Number Index Futures 9,09,602 10,08,691 8,40,109 8,28,001 8,96,601 8,23,777 8.84
of Stock Options 2,92,478 3,68,112 3,31,485 3,05,785 3,24,465 2,11,739 53.24
contracts Index Options 32,91,548 40,08,950 34,93,658 35,30,581 35,81,184 26,09,386 37.24
Number of 63 65 64 62 254 244
trading
Days
14
1.6.7 TOP 5 TRADED SYMBOLS

Futures (Figure -13):
Options (Figure 14):
1.6.8 New Developments during the year

April 2010 Standardisation of Market Lot of Stock Derivative Contracts:
Based on new SEBI guidelines, Exchange has standardised market lot of derivative contracts on individual
securities from April 2010. Under the new method, market lots are standardised for different underlying price
ranges. The Exchange computes one month's average price of the underlying to arrive at its revised lot size as per
the specified price ranges. Further, on SEBI's recommendation, Exchange has started reviewing and revising
market lots once in every six months.
2010 Development in Index Options:
The Index options volume in the Exchange has witnessed a substantial rise in 2010 as compared to 2009.
Approximately 530 million contracts were traded in 2010 over 321 million contracts in 2009 showing a staggering
65% increase in the volumes.
15
The share of Index options among all other product types in equity derivatives segment on NSE rose to 59% on
a daily average in 2010 from less than 50% in 2009. The Exchange took some initiatives in building up the
options volume and making it a preferred product choice for traders. After rationalising the daily price range of
options based on options delta value, the Exchange further optimised the price range by increasing the minimum
price range from Re. 1 to Rs. 3. Considering the market demand in popular Nifty options, the Exchange also
revised the strike scheme of Index Options and increased its minimum index coverage percentage from 10% to
20% for all short term options and from 20% to 40% for all Nifty long term options.
The equity stock options volume in the Exchange has also witnessed a steady and substantial rise in 2010 as
compared to 2009. Approximately 28 million contracts were traded in 2010 over 14 million contracts in 2009
showing a strong 50% increase in volumes.
January 2011 Development in Stock Options:
The Exchange introduced Stock options with European style of exercise from January 2011 expiry onwards.
With this, all Index and Stock options now follow European exercise method only.
1.7 Currency Derivatives segment

The financial year 2010-11 witnessed a phenomenal growth in Currency Derivatives (Currency Futures and
Options). The average daily turnover in currency derivatives, for the financial year stood at Rs.13,855 crores,
a growth of approximately 87% from Rs. 7,428 crores for the previous financial year. The number of members
registered in currency derivative segment stands at 742, of which 31 are banks and 3 Primary dealers.
Turnover in Currency futures for the financial year 2010-11 was Rs. 32,79,002 crores as compared to Rs. 17,82,608
crores during the previous financial year.
Trading in USD-INR currency options was introduced on 29th Oct 2010. Turnover in currency options was
1,70,786 crores for a period of five months. The growth in volume in currency options has been considerable
with the average daily volume for the period October, 2010 to March 2011 being 3,56,382 contracts, with 8,34,111
contracts being traded on average in the month of March, 2011. The launch of currency options has seen a
significant increase in the average open interest in currency derivatives from 6,65,054 contracts in April 2010 to
36,30,057 contracts in March 2011.
Total volume in Interest Rate futures has dropped to Rs.62 Crores.
Figure 15
TURNOVER IN CURRENCY DERIVATIVES
16
Figure 16
AVERAGE VOLUME AND OPEN INTEREST IN CURRENCY DERIVATIVES
1.8 Surveillance System

The principal objective of surveillance function of the Exchange is to help maintain fair and efficient markets for
securities.
The Exchange achieves this objective through a combination of state of the art surveillance system, wide ranging
use of cutting edge data analytics and experienced team of analysts.
The surveillance system which monitors trading activity at every order and trade level has been developed piecing
together experience gathered over the years. The system generates alerts based on multiple parameters using a
complex algorithm. The parameters and the thresholds beyond which alerts are generated have been decided after
detailed statistical analysis and back testing.
A brief perspective on how complex the task of surveillance has become over the years is given as under:-
On an average about 3.40 crore orders are entered and about 70 lakh trades get executed in a day on the capital
market segment of the Exchange. This translates to an average of about 1500 orders and about 300 trades every
second. Added to this, there are about 1.28 crore investors registered with trading members of the Exchange for
trading on capital market segment. Unlike most advanced markets in US and Europe, retail investors directly
participate in the market. On NSE more than 40% of total trading activity is on account of individual clients.
Surveillance system has been designed and tuned to sift through this gigantic mix of orders, trades & investors to
generate meaningful alerts that point to possible market abuse.
Wherever market abuse practice is suspected, the system can replay the market at a much slower pace so as to
enable the analysts to examine the identified deviant activity order by order to piece together evidence for proving
manipulation.
The exchanges in India are in a unique position to identify and monitor trading activity at client level unlike most
markets in US and Europe where exchanges have access only up to the first layer of market participants, namely,
the trading members. During the period from April 1, 2010 to March 31, 2011, 248 reports on the investigations
conducted were completed of which 215 reports were submitted to SEBI.
NSE's expertise in putting data analytics tools to optimum use to mine this wealth of data to establish patterns in
trading activity at client level enables the Exchange to quickly identify potential market abuse and refer the
17
matter to the Regulator. The Exchange has implemented series of pattern recognition models which unearth
manipulative activity such as Front running, insider trading, circular trading, etc.
2. SERVICES TO INVESTORS
The Exchange attaches high importance to investor safety and investor empowerment. Towards this direction, in
order to spread awareness about market, products, operational aspects of market, etc., the Exchange regularly
conducts investor awareness programs in various cities of the country. During the year, the Exchange conducted
1,382 programs. During the year, the Exchange also issued 371 investor alerts in 37 newspapers and in 8 languages.
Important Investor Awareness message showcasing various do's and don'ts were broadcasted over electronic
media in form of animation films in popular TV shows and through investor friendly messages on FM Radio
channels.
In addition, to enhance general safety levels, the Exchange has started a new service to disseminate trade information
directly to investors through emails and sms on their registered email ids and mobile numbers. The Exchange has
also has a user friendly trade verification facility on its website wherein common investor can check the trades
that have taken place in their account.
In order to reach out to a mass, the Exchange has initiated the idea of investor education and financial information
on wheels wherein Rajdhani Express is being used to disseminate information on markets, products, flagship
index, etc., to help investors understand how to use product & protect themselves. This train is currently running
on Delhi - Sealdah (Kolkata) route and in Delhi - Chennai/Bangalore/ Trivandrum routes. The Exchange constantly
endeavors to resolve disputes between investor and the trading members through its intervention.
3. NSE's KNOWLEDGE INITIATIVES

Several initiatives have been taken over the last few years with a view to develop the skills of market intermediaries,
educate the investors and promote high quality research in the securities market. Such initiatives include certification
programs, high school level courses, development of educational materials on financial markets, etc.
• NSE's Certification in Financial Markets (NCFM)
National Stock Exchange's Certification in Financial Markets (NCFM), is an online testing and certification
process which tests the practical knowledge and skills that are required to operate in the financial markets.
NCFM offers a comprehensive range of modules covering many different areas in finance. The entire
process from generation of question papers to testing, assessing, scores reporting and certifying is fully
automated. NCFM currently tests expertise in about 32 modules. So far more than 12 lakhs tests have been
conducted in various modules.
• NSE Certified Capital Market Professional (NCCMP)
National Stock Exchange in collaboration with reputed colleges and institutes in India, has been offering a
short-term course called NSE Certified Capital Market Professional (NCCMP) since August 2009. The
aim of the NCCMP Program is to develop skills and competencies in securities markets. It is a 100 hours
program, spanning over 3 - 4 months, covering theory and practical training. Around 50 agreements have
been signed so far under NCCMP.
• Financial Literacy in schools of Tamil Nadu state
National Stock Exchange in association with the Higher Education Department, Tamil Nadu has launched
a financial literacy program at the school level, in the state of Tamil Nadu. The curriculum designed by
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NSE comprises of theory subjects as well as practical. This program has been launched in the year 2010-11
in around 200 schools and is mandatory for class VIII & class XI. The program would be extended to more
schools from the academic year 2011-12.
• NSE-Manipal Education Training Programs on Stock Markets
National Stock Exchange has joined hands with Manipal Education, one of India's premier educational
institutions, to impart training with the aim of improving the participants' understanding of how the stock
markets function. These programs are designed to cater to people interested in a career in stock markets
and other related financial services and also to those who wish to learn about the functioning of the securities
markets. It provides relevant tools and techniques that give an in-depth understanding of the various facets
of the stock market. So far more than 1600 candidates have undergone this training program.
• Visit to NSE Program
It has been the endeavor of National Stock Exchange to spread knowledge about financial markets as
widely as possible. As part of this endeavor, NSE has been organising the ‘Visit to NSE' Program, under
which groups of students visit NSE to attend a 2-hour session. The session includes lecture on ‘Overview
of the Exchange', ‘Capital Markets', ‘Derivative Markets' and NSE's NCFM certification which not only
expands their knowledge base, but also improves their career prospects. In this session, the students learn
about stock exchange structure, its operations, products traded on it and so on. More than 150 colleges
have visited the Mumbai office as well as the regional offices located at Delhi, Kolkata and Chennai during
the year 2010-11.
• NSE's Research Initiative
Knowledge management is very important in today's competitive world. It acts as a tool which helps to
acquire the cutting edge in a globalised financial market. The regulators and SROs have been actively
promoting academicians and market participants to carry out research on the various segments of securities
markets. The completed papers are available on the NSE website www.nseindia.com.
4. KNOWLEDGE MANAGEMENT OR REPOSITORY CREATION INITIATIVE

A Knowledge Management project was initiated last year to create an environment and to apply techniques to
discover, formally document, manage and maintain the tacit, individual or personal, context specific, experiential
and unstructured knowledge, which can be shared and used easily avoiding systemic glitches, rework, undue
noise (unwarranted communication) in the system and also reduce the time to market or turnaround time.
All the creation / documentation of the Knowledge has been completed for the NSCCL systems, Back office
systems, Trading systems as well as Index and Quarter Sigma systems.
The format defined was to keep the documents lean, tabulated and carry all the organisational knowledge capturing
the processes, inputs and its business validations, business rules, outputs, formats and structures, interface details,
triggers for the processes, dependencies, sample calculations, if required, etc. All these documents were reviewed
by the respective development group as well as in case of back office and trading by the end users (operations)
groups.
All the knowledge has been made available in a Knowledge Management portal and to the stake holders with due
access / security measures in place. Along with this, the process for the ongoing maintenance of the same has
been defined and implemented in the Knowledge Management portal for keeping the knowledge up to date.
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5. FINANCIAL RESULTS AND APPROPRIATION OF PROFITS

The working of the Company during the year has resulted in a net profit after tax of Rs. 637.51 crores as per
particulars given in Table 16 below:-
Table 16
(Rs. in crores) (Rs. in crores)
Income 1,378.47 1,266.38
Expenditure (excluding Depreciation) 427.07 377.80
Profit before depreciation, prior-period adjustment and tax 951.40 888.58
Depreciation 91.35 76.75
Profit before prior period adjustments 860.05 811.83
Add/(Less): Prior period adjustment (0.74) (0.34)
Profit before tax 859.31 811.49
Provision for tax 221.80 197.72
Profit after tax 637.51 613.77
Surplus brought forward from previous year 105.26 62.67
Excess Corporate Dividend Tax for last year transferred back 14.95 9.18
Amount available for appropriation 757.72 685.62
Appropriations
General Reserve 530.00 475.00
Investor Compensation Reserve 0.14 0.11
Proposed Dividend 94.50 90.00
Corporate Dividend Tax 15.33 14.95
Staff Welfare Reserve 0.35 0.30
Balance carried to Balance Sheet 117.40 105.26
6. DIVIDEND
In view of the above results, your Directors recommend payment of dividend of Rs. 21/- per share for the year
2010-11.
7. SUBSIDIARY COMPANIES
7.1 National Securities Clearing Corporation Limited (NSCCL)
CM segment: NSCCL successfully continued its track record of completing all settlements in a timely manner.
During the period under review, 255 rolling settlements were handled in de-materialised mode. The per settlement
figures in value terms in the current year are higher than the previous year as given below:
The average value of securities handled per settlement was Rs. 3,840 crores in 2010-11 compared to
Rs. 3,761 crores in 2009-10. The average funds pay-in per settlement during the above periods was Rs 1,150 crores
and Rs. 1,141 crores respectively. The average number of shares processed per settlement was about Rs. 1,954
lakhs in 2010-11 compared to Rs. 1,946 lakhs in 2009-10. Short deliveries per settlement averaged around 0.13%
in 2010-11 as compared to 0.18% in 2009-10.
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The highest deliverable value of Rs.8,450.65 crores was observed on November 9, 2010. Percentage of number
of shares deliverable to number of shares traded increased to 27.51% in 2010-11 from 21.52% in 2009-10.
Percentage of value of shares deliverable to value of shares traded increased to 27.47% in 2010-11 from 22.22%
in 2009-10. The Settlement Guarantee Fund stood at Rs. 5,100.35 crores as on 31st March 2011.
F&O segment: The period April 2010 - March 2011 witnessed an increase in the total amount settled. The total
value of settlement increased from around Rs. 4,034.47 crores in March 2010 to Rs. 5,374.22 crores in
March 2011. The highest monthly settlement was Rs.11,597.10 crores in the month of November 2010. The
highest trading volumes on NSE during this period were Rs. 2,77,277.49 crores, witnessed on February 24, 2011
with total of 1,04,97,798 contracts being traded.
Currency Derivatives segment: Currency Derivatives trading commenced from August 29, 2008 with the
introduction of futures on USD-INR as the currency pair. Futures on multiple currency pairs namely Euro-INR,
Pound Sterling- INR and Japanese Yen-INR were introduced in February 2010. In October 2010, option contracts
were introduced on the USD-INR pair.
Based on the guidelines issued by SEBI, NSE introduced trading in IRF contracts on 10 year notional 7% coupon
bearing GOI security on August 31, 2009.
Mutual Fund Service System (MFSS)

Securities Exchange Board of India (SEBI) vide circular dated November 9, 2010 issued revised guidelines
for facilitating transactions in Mutual Fund schemes through the Stock Exchange infrastructure. As on
March 31, 2011, 25 mutual fund houses with 1,338 schemes were enabled under the revised MFSS scheme.
NSCCL carries out settlement for redemption of units in dematerialised form and funds settlement for subscription
requests. Details are as under:
The average daily value of funds settled for subscription of mutual fund units for the period January 1, 2011 to
March 31, 2011 was Rs. 112.54 lakhs. The average daily quantity of units allotted under subscription for the
period January 1, 2011 to March 31, 2011 was 3.89 lakhs.
The average daily value of funds settled for redemption of mutual fund units for the period January 1, 2011 to
March 31, 2011 was Rs. 45.15 lakhs. The average daily quantity of units redeemed for the period January 1, 2011
to March 31, 2011 was 1.83 lakhs.
During the financial year 2010-11, NSCCL earned net profit after tax of Rs. 238.13 crores as compared to net
profit after tax of Rs. 226.02 crores during 2009-10. The Board of NSCCL has recommended a dividend of
Rs. 20/- per equity share to its shareholders in respect of the financial year 2010-11.
7.2 NSE.IT Limited (NSE.IT)

With an objective to become a leading vertical specialist enterprise offering end-to-end Information Technology
(IT) products, solutions and services as well as specialising in providing complete IT solutions to Stock Exchanges,
Clearing Corporations, Brokerage Firms, Insurance Firms and other organisations in the Capital Market, Banking
and Insurance industry, NSE. IT, achieved a robust turnover of Rs.10,304 lakhs during the year which was 28%
higher than the previous corresponding year.
Continuing with its foray in online examinations, the IRDA project for achieving 100% online examination
status by year end was undertaken by the Company across the country and implemented in record time of 9
months. This also included achieving important milestones of 100 new centers within 6 months and 200+ centers
going live by end of December 2010 within six months of starting the project. The assessments are conducted pan
India for the insurance companies and the Company executes the end-to-end process from registration to
examination certificates. During the year the Company worked on adding new customers and bid for various
21
tenders and requirements. The Company was successful in adding new clients etc to its customer list.
During the year the Company embarked on quality journey to certify its online examination centers for ISO
9001:2008 certification. NSE.IT through all the steps of ISO such as gap analysis, documentation, implementation
of documented processes, internal auditing, training and awareness. After extensive rounds of internal and external
quality implementation efforts in past six months and audits conducted across country by Bureau Veritas
Certification India (BVCI) auditors till first week of March, NSE.IT has been certified for ISO 9001:2008 by
BVCI for its Online Examination Services.
During the year, Company has added to its product portfolio with the introduction of an Algorithmic Trading
solution, called AlgoStudio. The product provides various standard algorithmic trading strategies (viz. Cash-
Futures arbitrage, Futures-Futures arbitrage, Cash-Cash arbitrage, Conversion/Reversal, Box Spread) as well as
custom strategies, taken up as be-spoke development.
The most important achievement for the Tea Board e-Auction project this year, was winning the coveted Bronze
medal in the National e-Governance Awards 2011, under the category - Specific Sectoral Award (Focus Sector
for 2010-11 - Agriculture).
The e-Auction program went 100% live in Siliguri this year. This marked 100% sale of tea through e-Auction
route across all the six auction centres. Around 370 million kg of tea was sold this year, totaling the sales figure
to 610 million kg since inception with a monetary worth of around Rs. 6100 crore
During the financial year 2010-11, NSE.IT earned a net profit after tax of Rs. 13.64 crores as compared to Rs.
9.53 crores in the previous year. The Board of Directors of NSE.IT has recommended a dividend of Rs. 4/- per
equity share to its shareholders in respect of the financial year 2010-11.
7.3 DotEx International Limited (DotEx)

DotEx manages the data feed of NSEIL and supplies the same to its clients. Currently, the following products are
offered by DotEx:-
1) Real Time Data
2) Snapshot Data
3) End of Day Data
4) Historical Data
5) Corporate Data
The products related to real time data, snapshot data, end of day data and historical data are further segregated
into the following segments:
(i) Capital Market [CM] segment
(ii) Futures and Options Market [F&O] segment
(iii) Wholesale Debt Market [WDM] segment
(iv) Securities Lending & Borrowing Market [SLBM] segment
(v) Currency & Interest Rate Futures Market segment
Currently, real time feed is being subscribed by 33 clients, snapshot feed by 36 clients, end of day feed by 23
clients and Corporate data by 2 clients.
DotEx also operationalised the tick by tick data feed and the 1 minute snapshot feed during this financial year.
DotEx also provides a shared platform called NEAT on Web (NOW) which is a shared CTCL and risk management
tool for the trading members.
22
During the year the DotEx started providing the following additional facilities through NOW platform viz.,
access to NSE IPO segment, access to Ace Commodity Exchange (ACE) markets, provision of Direct Market
Access (DMA) facility and provision of news from Newswire 18. With the objective of improving the reach and
providing stable connectivity to members, the following new initiatives were taken:-
• Mobile platform to provide live streaming data and trading capability. Market Data is made available as an
open application for any investor or potential investor who registers on NSE website. For investors desirous
of trading, they can avail the facility from any NOW enabled trading member.
• Tied up with private VSAT service providers to make NOW available through private VSAT Network.
This facility has been proved to be a boon to users in northeast regions where even basic internet connectivity
is an issue.
The above initiatives have resulted in an increase in trading turnover through NOW platform during the financial
year 2010-11.
During the year 2010-11, DotEx earned a profit of Rs. 1,416.68 lakhs as compared to a profit of
Rs. 1,304.32 lakhs during 2009-10. The financial position of DotEx has improved in the current financial year by
virtue of income generated through increase in the number of vendors and the end user clients. The Board of
DotEx has recommended a dividend of Rs. 1.50/- per equity share to its shareholders in respect of the financial
year 2010-11.
7.4 India Index Services and Products Limited (IISL)

During the year under review, IISL continued to be the primary provider of indices and related products and
services to various participants in the Capital Market in India, in the thirteenth year of its operation. IISL has
granted eight additional licenses to asset management/ insurance companies for launching Exchange traded/
Index funds/ Insurance Funds. Currently, there are around 34 funds linked to IISL's indices.
IISL provides index and index related services to various stock exchanges, asset management companies,
investment banks and other organisations across the globe for business purposes. Apart from the indices being
used for Index Funds and trading of index based derivative contracts, the indices of IISL are being used by the
mutual funds for benchmarking the performance of their funds. The demand for index related data has increased
in past year in line with the improved condition of the equity market. During the year, IISL provided licenses to
various clients for using IISL's indices as underlyings for their products. These clients issue products such as
index linked notes / certificates, index linked bonds, index linked certificates of deposit, Exchange Traded Funds
(ETFs), etc., using IISL Indices as the underlying for their products. IISL also provides annual licenses to its
Clients who issue many structured products with IISL indices as underlying for such products.
During the year under review, IISL has widened the client base which uses its Indices and index data. IISL has the
following major sources of income viz. income from licensing indices to stock exchanges for trading in derivative
contracts linked to such indices, income from licensing indices to Index Funds/Exchange Traded Funds, income
from licensing indices to finance and insurance companies for debentures/ insurance products, income from
licensing indices to investment banks for structured products and income from data subscription services.
During the year 2010-11, IISL earned a profit of Rs. 1,183.74 lakhs as compared to a profit of Rs. 893.39 lakhs
during 2009-10. The Board of IISL has recommended a dividend of Rs. 9/- per equity share to its shareholders in
respect of the financial year 2010-11.
23
7.5 NSE Infotech Services Limited (NSETECH)

Technology has been a key differentiator and a strategic driver for NSE. Towards this, NSE Infotech Services
Limited continues to deliver and maintain technology products and services for NSE.
New Generation Initiatives
This financial year has been path-breaking with new architecture of the trading system that allows linear scalability,
providing capabilities to handle the multi-fold growth of order transactions. Net Market Rollout in the F&O
segment is a milestone towards capacity enhancement of trading system enabling horizontal scalability, to scale
up to on demand capacity, by adding multiple market machines. The Appletree Database has been replaced with
the newly developed SMFS (Shared Memory File System) in the post trade (PT) layer of the FO trading system.
In parallel, the earlier Stratus proprietary messaging solution (VMA) has been migrated to a new generation
messaging solution (29West) for communication across various layers of the Trading system. 29West messaging
is a high throughput, low latency solution that is being used to achieve throughput of over 100K messages /sec.
These implementations enable a low latency and high throughput architecture. The parallel redevelopment of the
matching engine (retooling project), currently underway, will result in a final capacity of 100,000 messages/sec.
Global Benchmarks
In keeping with global trends, the Exchange has provided members a co-location facility for low latency high
frequency trading. The Co-location phase II data center is an international standard, state of the art, highly robust,
resilient and secure infrastructure data center, built at the BKC premises. This Phase II data center has a capacity
of 54 full racks and 28 half racks.
With the advent of co-location, there was a market need for real-time data to be disseminated to these high
frequency algorithmic trading members, to enable them build the order book and help their algorithms to work
optimally. Tick by Tick data provides the latest order (new, modified and cancelled) and trade information to the
market. The Exchange has offered a new category of connectivity (Category T) for market data broadcast called
Tick by Tick.
New Product Launches
New business products like Securities lending and Borrowing (SLBM), Call auction in Pre-Open (CM segment),
Currency options in CD segment, India VIX, MFSS SIP, TAP on Linux, NSE Electronic Application Processing
System (NEAPS) have been introduced.
Customer focused self-services
Several initiatives have been taken to provide self service capabilities and improved customer experience. Some
of these are online client-code/trade modifications, Limit Setting and Auto enablement, Auto Give-ups and
Margining Professional Clearing Member (PCM) on T-Day.
Operational Excellence
With the increase in average number of order messages per day in the F&O segment from around 80 million to
100 million, the F&O trading capacity was increased by adding a third market machine (until the release of
Retooling project). With this, the capacity of FO Trading system has increased from 12,000 to 18,000 order
messages per second. CM trading capacity was also increased by adding a fourth market machine. With this, the
capacity of CM Trading system has increased from 5,000 to 7,000 order messages per second.
The time taken by the Securities Pay-in/Pay-out cycle of the settlement cycle on T+2 day was about 90 minutes.
The complete process was re-engineered along with the workflow and appropriate automation to reduce the
end-to-end time from 90 minutes to 3-5 minutes.
24
The risk management engine in CM and F&O segments were optimised after multiple benchmarks with pre-set
parameters (portfolio, trade rate, number of suspensions, intra-day changes). This optimisation has reduced the
average turnaround time within the risk management considerably.
Cyber Security drill was conducted by CERT-in (Computer Emergency Response Team), Department of
Information Technology, Government of India. The performance was evaluated on four categories namely
(i) Pro-active actions to secure the drill setup; (ii) Attack defense & detection; (iii) Incident reporting & response;
and (iv) Mitigation & Recovery actions. NSE was rated excellent among 18 critical organisations in the financial
sector, for its capability in handling and responding to cyber security incidents, across all areas.
Awards / Recognitions
‘NOW (NSE on Web)' & ‘Inspection' applications won the InformationWeek EDGE award in Sep'2010.
During the financial year 2010-11, NSETECH earned net profit after tax of Rs. 94.61 lakhs as compared to the
net profit after tax of Rs.99.81 lakhs during 2009-10. As the profit is required to augment operational needs of
the Company, the Board of NSETECH did not recommend any dividend to its shareholders.
7.6 National Commodity Clearing Limited

NCCL has completed the fourth full year of operations, since its commencement from September 1, 2006, in
providing IT and process support to NCDEX in respect of its clearing and settlement of trades done in derivatives
segment. The clearing and settlement covers contracts in 44 products ranging from agricultural commodities to
base metals, ferrous metals, energy, polymers and precious metals. NCCL carries out funds settlement through
13 clearing banks.
During the year 2010-11, NCCL earned net profit after tax of Rs. 99.54 lakhs as compared to the net profit after
tax of Rs.93.39 lakhs during 2009-10. As the profit is required to augment operational needs of the Company, the
Board of NCCL did not recommend any dividend to its shareholders.
8. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES

The following developments have taken place in Human Resources / Industrial Relations front in the Financial
Year 2010-11:-
1) Total Remuneration & Reward Management: NSEIL has undertaken a benchmark study on total
remuneration and reward management in the FY 2010-11 in association with Aon Hewitt Associates. As
per the recommendation of the consulting firm, remuneration of the employees was revised.
2) Employee Engagement: The Company has started various Employee Engagement Initiatives to raise the
engagement levels of the employees across the organisation. Some of them are NSE's participation in
Standard Chartered Marathon 2011, employees' participation in the Investothon, restructuring the Quarterly
Induction Program, initiatives like Office Yoga on chair and various Staff Welfare initiatives so as to build
synergy among the various teams.
3) Talent Management and Development : During the Financial Year 2010-11, NSEIL has focused on the
following:-
a) The Company has partnered with Pricewaterhouse Coopers for creating the Talent Management
framework at NSEIL. In this process, NSEIL has identified the behavioral and functional competencies
and are working towards the creation of the career pathing framework for the Company to meet the
individual aspirations and the Company objectives.
25
b) Learning and Development: In line with the Business Strategy, company has continued to focus on the
functional and behavioral training based on the individual and the organisational need. In the past year
NSE has focused more on the Regional offices to meet their strategic learning and development needs.
4) Employee Relations: The employee relations scenario has been harmonious throughout the period under
consideration.
The Employee Strength as on March 31, 2011 is 504.
9. CORPORATE GOVERNANCE
The Company is committed to maintain the highest standards of corporate governance and adhere to the corporate
governance requirements.
The Company being an unlisted Company has voluntarily adopted compliance of corporate governance norms
provided in Clause 49 of the Listing Agreement applicable to the Companies which are listed with the Stock
Exchanges. A report on corporate governance for the financial year 2010-11 is accordingly furnished as part of
the Annual Report for the information of all its stakeholders. The certificate from a Practicing Company Secretary
confirming compliance with the conditions of Corporate Governance as stipulated under clause 49 of Listing
Agreement, is also attached with the above report.
10. MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Management's Discussion and Analysis Report for the year under review is presented in a separate section
forming part of the Annual Report.
11. CORPORATE SOCIAL RESPONSIBILITY (CSR) INITIATIVES

Your Company, being part of an integral part of society, recognises its corporate social responsibilities and has
been engaged in various CSR initiatives. Several energy efficiency measures have been taken to reduce the
consumption of energy and promote use of renewable energy. The details of various energy conservation measures
taken by your company are given under the heading ‘Conservation of energy, technology absorption and foreign
exchange earnings/outgo' in the Directors' Report.
Your Company along with its group companies organised and contributed to welfare programs with various
Non-Government Organisations (NGOs) to promote upliftment of disadvantaged sections of society. Also, a
number of ‘‘Go-Green’’ initiatives have been taken up contributing towards energy conservation and reducing
Carbon Footprint. Some of these programs are mentioned below-
• Tie up with HelpAge India which is a secular, not-for-profit organisation protecting the rights of India's
elderly and provides relief to them through various interventions. One thousand calendars were printed
from Archies Limited. The printing amount paid included the contribution towards HelpAge India NGO.
• A number of ‘‘Go Green’’ Initiatives were successfully launched and completed. A few of these are
• Global Warming awareness campaigns by email, videos, etc.
• Tree Plantation Drive near Exchange Plaza
• Invited NGO ‘Vaitarna' and put up a stall of Eco-Friendly products in Exchange Plaza.
• Leadership in Energy & Environmental Design (LEED) certification for office building.
• Installation and commissioning of the Solar Power System.
• Setup of Vermiculture plant which provides manure to the garden.
26
• Setting up of a voluntary group of employees called ‘‘Green Warriors’’ supported by NSEIL whose mission
is based on the principles of the 3Rs (Reuse, Reduce &Recycle) and whose objective is to identify and
work towards finding ways to help protect and sustain our environment in a manner that is least resource
intensive. Some of the activities conducted by the Green Warriors during the year include monthly awareness
programmes ‘‘Green Evening’’ for all employees with screening of movie/ messages on global warming
and environmental conservation, tree plantation drive in the BKC area, sapling distribution to staff, monthly
bulletin to the employees with simple effective environment tips for use homes /offices, targeted annual
paper reduction drive, etc
12. DIRECTORS
Dr. Vijay Kelkar, Chairman of your Company was awarded ‘Padma Vibhushan', which is the second highest
civilian award in the Republic of India, as recognition towards his exceptional and distinguished service to the
nation in the field of ‘public affairs'.
Mr. Anjan Barua, Mrs. Bhagyam Ramani, Mr. S.B. Mainak and Mr. S.B. Mathur retire by rotation at the ensuing
Annual General Meeting and are eligible for reappointment.
Mr. Anand G. Mahindra and Mr. B.N. Srikrishna ceased to be the Directors of the Company consequent upon
their resignation from the Board with effect from December 28, 2010 and January 14, 2011 respectively. The
Board wishes to place on record its sincere appreciation and gratitude for their valuable contribution made during
their tenure as Directors.
13. DIRECTORS' RESPONSIBILITY STATEMENT

Your Directors confirm that -
i. in the preparation of the annual accounts, the applicable accounting standards had been followed along
with proper explanation relating to material departures, if any;
ii. the Directors had selected such accounting policies and applied them consistently and made judgments and
estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the
Company at the end of the financial year i.e., 31st March, 2011 and of the profit of the Company for that
year;
iii. the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in
accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company
and for preventing and detecting fraud and other irregularities; and
iv. the Directors had prepared the annual accounts on a going concern basis.
14. AUDIT COMMITTEE

The Audit Committee comprises four Directors viz., Dr. R. H. Patil, Mr. A. P. Kurian, Mr. Y. H. Malegam and
Dr. V. A. Sastry as its members. Dr. R. H. Patil is the Chairman of the Audit Committee. The Committee met four
times during the year i.e., on June 4, 2010, August 24, 2010, November 22, 2010 and February 1, 2011. The
details of the attendance of members of the Audit Committee at their meetings held on the above dates are given
in Table 17 hereunder:-
27
Table 17
Name Number of meetings Number of meetings

held during the year attended
Dr. R. H. Patil 4 2
Mr. A. P. Kurian 4 4
Mr. Y. H. Malegam 4 4
Dr. V. A. Sastry 4 3
15. AUDITORS
M/s. Khandelwal Jain & Co., Chartered Accountants, Auditors of the Company, retire at the forthcoming Annual
General Meeting of the Company and are eligible for re-appointment. The Company has received a certificate
from the Auditors to the effect that their re-appointment, if made, would be within the limits prescribed under
Section 224 (1B) of the Companies Act, 1956. Their re-appointment is required to be made by a Special Resolution
pursuant to Section 224A of the Companies Act, 1956.
16. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND

FOREIGN EXCHANGE EARNINGS/OUTGO
a) Conservation of Energy, Technology Absorption
As the Company does not fall under any of the industries listed out in the schedule appended to Companies
(Disclosure of Particulars in the report of the Board of Directors) Rules, 1988, particulars required to be
disclosed with respect to conservation of energy and technology absorption in terms of Section 217(1)(e)
of the Companies Act, 1956, read with the aforesaid Rules are not applicable to the Company.
However, NSEIL continues to use the major technological initiatives like ‘Thermal Energy Storage System'
for air-conditioning system during the peak hours, ‘Building Management System' for automation in
operations of services in the building, Lighting Transformers for regulated voltage of Lighting system,
Electronic Ballast and Compact Fluorescent Lamps in lighting system, Automatic Power Factor Control
Units towards ‘‘Effective Energy Conservation’’ as well as ‘‘Load Management System’’:
In its pursuit of building a system for effective energy conservation, NSEIL has used the following further
technological initiatives during the year.
1) Solar Power Plant - In addition to various power saving measures being undertaken at the building,
a need had been felt to ascertain the possible alternatives of energy conservation including sourcing
of energy from natural resources which is environment friendly (i.e. Green Power). In view of this,
Solar Power Plant of the capacity of 10 KW has been installed in the building which harnesses the
solar power to cater the part of lighting load at Exchange Plaza.
2) Rain Water Harvesting System - Envisaging water scarcity in future as well as present water
shortages, the proper Hydro - Geological survey was conducted at Exchange Plaza to explore the
possibility of harvesting the rain water in the periphery of Exchange Plaza. The project is being
implemented and expected to complete by July, 2011. By using this system, there would be water
saving of around 1 lakh liters per day at Exchange Plaza.
28
3) Sewerage Treatment Plant - This plant has been installed at the inception stage itself to enable the
Company to reuse building's domestic and flushing water (i.e. after treatment) for its Cooling Towers
associated with HVAC System and for Gardening purposes every day.
4) Vermiculture Plant - In this system, the compostable material like food waste collected from canteen,
garden organics and paper & cardboard gets collected at one place. Post shredding, the organic
material gets loaded into vermiculture unit for the decomposing process. Post 7 days on-going process,
vermicompost / manure get generated and used for Gardening purposes.
b) Foreign Exchange earnings/ outgo during the year under review:
The foreign exchange earnings during the year were Rs. 11.01 crores whereas the foreign exchange outgo
during the year was Rs. 9.11 crores.
17. Statement of Particulars of Employees covered under the provisions of Section 217(2A) of the Companies
Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 is annexed.
18. Your Directors are grateful for the support and co-operation extended by the Government of India, Securities
and Exchange Board of India and Reserve Bank of India. Your Directors would like to place on record their
sincere appreciation of support provided by the shareholders and also their deep appreciation of the contribution
made by employees at all levels to the continued growth of the Company.
For and on behalf of the Board of Directors
Vijay Kelkar
Chairman
Place: Mumbai
Date: April 29, 2011
29
ANNEXURE TO DIRECTORS’ REPORT

STATEMENT PURSUANT TO SECTION 217 (2A) OF THE COMPANIES ACT, 1956 READ WITH
COMPANIES (PARTICULARS OF EMPLOYEES) RULES, 1975.
Sr. Name & Age Designation/ Remuneration Experience Date of Last Employment
No. Qualifications in Nature Received (Rs.) (No. of commencement
Years of duties years) of
Employment
Gross Net
1 Mr. Ravi Narain 55 Managing 73490470 38571970 32 April 15, 1994 Dy. General Manager,
M.A. (Eco.), MBA Director Industrial Development
Bank of India
2 Ms. Chitra Ramkrishna 48 Joint 48958995 25519544 26 October 15, 1994 Dy. Manager,
B. Com., FCA Managing Industrial Development
Director Bank of India
3 Mr. J. Ravichandran 50 Director (F&L) 23784062 13110387 25 August 12, 1994 Dy. Secretary & Manager
B. Com., B.L.,FCS & Company (Legal), Raymond
Secretary Synthetics Limited
4 Mr. Yatrik Vin 44 Senior Vice 11230074 6300589 24 February 21, 2000 Manager
M. Com., AICWA President (Finance & Accounts),
Godrej & Boyce
Mfg. Co. Ltd.
5 Mr. Ravi Varanasi 48 Senior Vice 11050722 7460547 24 July 3, 1995 Sr. Dy. Manager,
B. Sc., ACA President Vysya Bank
6 Mr. R Nandakumar* 45 Senior Vice 11559001 7789177 24 March 15, 1995 Staff Officer (Finance),
B. Com., Grad. CWA, MBA, President Unit Trust of India
CAIIB, FIII
7 Ms. Kamala K 45 Vice President 11094930 6432207 20 March 16, 2006 Vice President (Risk
B.Com, ACA Mgmt. & Ops.), IL&FS
Investsmart Limited
8 Mr. Vidhu Shekhar 46 Vice President 8509560 4862937 24 October 3, 2005 Sr. Vice President,
PGDBM, CFA IDBI Capital Market
Services Ltd.
9 Mr. Hari K. 44 Vice President 8971408 5083224 20 May 29, 1995 Cost Accountant,
AICWA, ACS KCP Ltd.
10 Mr. T Venkat Rao 53 Vice President 7918696 5035958 29 December 21, 2000 Manager, Global Trust
B.Com., LL. B. Bank Limited
11 Mr. Suresh Narayan # 41 Vice President 7027630 4845901 21 January 24, 2005 Manager , National
B.Com, Grad. CWA Securities Depository
Limited
12 Mr. Suprabhat Lala 44 Vice President 6361827 4392656 21 October 1, 2001 Sr. Vice President,
B. Sc. Geojit Securities Ltd.
13 Mr. Mahesh Haldipur 51 Asst. Vice 6493540 3719734 28 April 25, 1995 Project Engineer,
B.E. (Civil), AMIE President Tata Electric Company
Limited
Notes :
1 Gross Remuneration includes Salary and other benefits, Company's contribution to Provident Fund,
Superannuation Fund, taxable value of perquisites, etc. Net remuneration represents gross remuneration
30
less Company's contribution to provident and superannuation funds, taxable value of perquisites, profession
tax and income tax. Where applicable, the amounts also include certain allowances accrued during previous
year(s) but claimed in the current year.
2 Mr. Ravi Narain was re-appointed as Managing Director for a period of three years with effect from
April 1, 2010.
3 Ms. Chitra Ramkrishna was re-appointed as Dy. Manging Director for a period of five years with effect
from April 1, 2008. She was re-designated as Joint Managing Director with effect from September 1, 2009.
4 Other employees are in permanent employment of the Company on contractual basis governed by the
employment terms & conditions and service rules.
5 None of the employees mentioned above is a relative of any Director.
6 Employees, in respect of whom Section 217 (2A) applies but are on deputation to subsidiary company
and in respect of whom the remuneration is recovered are shown under statement prepared under
Section 217 (2A) of that subsidiary company to avoid duplication. Employee whose name has been marked
with # is on deputation to two subsidiary companies and his remuneration has been shared amongst the two
subsidiary companies. Employee whose name has been marked with * is also on deputation to subsidiary
company and in respect of whom the proportionate remuneration recovered from the subsidiary company
is shown in the statement prepared under Section 217 (2A) of that subsidiary company.
7 None of the employees is holding equity share(s) in the Company within the meaning of sub-clause (iii) of
clause (a) of sub-section (2A) of Section 217 of the Companies Act, 1956.
8 The Company does not have any Employees Stock Option Plan(ESOP) Scheme for its employees.
31
REPORT ON CORPORATE GOVERNANCE

Corporate Governance is the application of best management practices, compliance of law and commitment to
values and ethical business conduct to achieve the Company's objective of enhancing shareholder value and
effective discharge of its social responsibility. National Stock Exchange of India Limited (NSEIL) is a public
limited company, whose securities are not listed on any stock exchanges and as such Clause 49 of the listing
agreement dealing with Corporate Governance for listed companies is not applicable to NSEIL. However, NSEIL
has always been involved in good governance practices and endeavours continuously to improve upon the same.
In continuation of its pursuit to establish good corporate governance practice and for the information of its
stakeholders, NSEIL is furnishing this Report for the financial year ended on 31st March, 2011.
NSEIL is a company incorporated under the Companies Act, 1956 and is also a recognised stock exchange under
Securities Contracts (Regulation) Act, 1956. Therefore, NSEIL is additionally required to comply with
Securities Contracts (Regulation) Act, 1956, the Rules laid down thereunder and the directives and circulars
issued by Securities and Exchange Board of India (SEBI) from time to time for the purpose of its governance.
I. Board of Directors
(A) Composition of the Board
The Board consists of 16 Directors of which 5 Directors represent Shareholders, 9 are independent Directors
(which includes 3 Public Interest Directors) who are chosen from among eminent persons or experts in the field
of Law, Finance, Accounting, Taxation, Information Technology, Economics, Commerce, etc. and 2 are working
Directors (1 Managing Director and 1 Joint Managing Director). None of the Directors of the Company are
related with each other.
(1) Details of Directors along with the Directorship(s) and Chairmanship(s)/Membership(s) of Committees in
other companies as on March 31, 2011:
Name of the Director Category No. of Directorships / Chairmanships and
committees chairmanships/Memberships
Other Other Other
Directorships/ Committee Committee
Chairmanship Memberships ** Chairmanships **
Dr. Vijay L. Kelkar,
Chairman Independent 7 1 –
Mr. C. Achuthan Public Interest Director 4 2 1
Mr. Anjan Barua Shareholder 3 – –
Mrs. Ranjana Kumar Independent 3 1 –
Mr. A.P.Kurian Independent 4 3 –
Dr. Rajiv B. Lall Shareholder 12 3 –
Mr.Y.H.Malegam Independent 8 1 4
Mr. S.B. Mainak Shareholder 1 1 –
Mr. S. B. Mathur Shareholder 13 5 4
Dr. K. R. S. Murthy Public Interest Director 3 1 2
Dr. R. H. Patil Independent 13 6 3
Mrs. Bhagyam Ramani Shareholder 5 – –
32
Name of the Director Category No. of Directorships / Chairmanships and

committees chairmanships/Memberships
Other Other Other
Directorships/ Committee Committee
Chairmanship Memberships ** Chairmanships **
Dr. V. A. Sastry Independent – – –
Mr. Deepak Satwalekar Public Interest Director 5 1 2
Mr. Ravi Narain Managing Director 12 2 2
Ms. Chitra Ramkrishna Joint Managing Director 9 3 1
Notes:
*The Directorships held by Directors as mentioned above, do not include Alternate Directorships and Directorships of Foreign Companies,
Section 25 Companies and Private Companies.
**Memberships/Chairmanships of only the Audit Committee and Shareholders/Investors' Grievances Committee of all Public Companies
have been considered. None of the Directors on the Board is a member of more than ten Committees and Chairman of more than five
Committees across all companies in which they are Directors.
Dr. Vijay Kelkar, Chairman, Dr. R.H. Patil, Director & Chairman-Audit Committee, Mr. Ravi Narain, Managing
Director and Ms. Chitra Ramkrishna, Joint Managing Director attended the 18th Annual General Meeting held
on September 27, 2010.
(2) Separation of Offices of Chairman & Chief Executive Officer
Since inception, the Company has been following the principle of separation of the role of Chairman and the
Chief Executive Officer. Dr. Vijay L. Kelkar is the Non Executive Chairman of the Board. Mr. Ravi Narain is the
Managing Director & Chief Executive Officer of the Company and is entrusted with the day to day management
of the affairs of the Company. Ms. Chitra Ramkrishna, Joint Managing Director of the Company, assists the
Managing Director in the discharge of his functions on day to day basis. The Managing Director and Joint
Managing Director carry out their functions subject to superintendence, control and management of the Board of
Directors of the Company.
(3) Number of companies in which an individual may become a Director
The non executive Directors follow the provisions prescribed under the Companies Act, 1956 with regard to
maximum number of directorships allowed for a Director. In respect of Executive Director(s), the number of
Directorships other than directorships in subsidiary companies is less than seven.
(B) Responsibilities of the Board
The Company conducts an orientation programme for new Directors covering various operations of the Exchange
so as to familiarise themselves with the various functions being carried out by the Exchange. Every director
inducted on the Board is well known in the financial services industry and has the ability to understand basic
financial statements and information and related documents/papers.
The regular updates inter-alia provided by the Company to the Board include the following:
• Annual operating plans and capital and revenue budgets and updates
• Quarterly financial results
• Status report on the Exchange operations and operations of different segments
• Minutes of the meetings of Audit Committee and other committees of the Board including minutes of the
meeting of the Board of material subsidiary company.
• Details of joint ventures, acquisitions of companies or collaboration agreements, etc
• Details of foreign exchange exposures and the steps taken to limit the risk of adverse exchange rate
movements
• Details of significant transactions and arrangements entered into by material unlisted subsidiary
33
• Review of market surveillance.

• Other information, which is required to be placed before the Board as per clause 49 of the Listing Agreement,
is taken to the Board as and when the event occurs.
A quarterly report on compliance of various laws, rules and regulations, to which the Company is subjected, is
placed before the Audit Committee for its review. The Audit Committee from time to time reviews the report and
gives suggestions for improvement of compliance level/process. On its review, a consolidated report on a quarterly
basis is placed before the Board at its subsequent meetings.
(C) Independent Directors
(1) Attributes
The Company as a policy inducts only those persons as Independent Directors who have integrity, experience
and expertise, foresight, managerial qualities and ability to read and understand financial statements.
(2) Tenure
The Company, being a stock exchange recognised under Securities Contracts (Regulation) Act, 1956, is required
to follow directives issued by SEBI from time to time. As per SEBI directives, no director shall hold office for
more than two consecutive terms. The Exchange follows the same with effect from August 18, 2009, being the
date of approval granted by SEBI for the reconstituted structure of the Board.
(3) Freedom to Independent Directors
The Company takes all possible efforts to enable the Independent Directors to perform their functions effectively.
However, as per SEBI requirement, the elected directors shall not interfere in the day to day management of the
Exchange particularly relating to the surveillance and risk management functions of the Exchange. The Company
always strives to strike a balance between both the above requirements without compromising on compliance of
such requirements.
(D) Other Committees of the Board
(1) Audit Committee
The primary function of the Audit Committee is to assist the Board of Directors in fulfilling its oversight
responsibilities by reviewing the financial information to be provided to the shareholders and others, the systems
of internal controls, which the management and the Board of Directors have established, financial reporting and
the compliance process. The Committee maintains open communication with statutory auditors and internal
auditors.
The Audit Committee reviews the reports of the internal auditors and operational auditors. Besides, the role of
Audit Committee of NSEIL, inter-alia, also covers the following:
(a) Oversight of the Company's financial reporting process and the disclosure of its financial information to
ensure that the financial statement is correct, sufficient and credible.
(b) Reviewing with management the annual financial statements before submission to the Board, focusing
primarily on-
• Any changes in accounting policies and practices.
• Major accounting entries based on exercise of judgment by management.
• Qualifications in draft audit report.
• Significant adjustments arising out of audit.
• The going concern assumption.
• Compliance with accounting standards.
34
• Compliance with legal requirements concerning financial statements.

• Any related party transactions i.e. transactions of the company of material nature, with promoters or
the management, their subsidiaries or relatives, etc. that may have potential conflict with the interests
of company at large.
(c) Reviewing with the management, external and internal auditors and the adequacy of internal control systems.
(d) Reviewing the adequacy of internal audit function including specification of terms of reference to firms
conducting internal audit.
(e) Discussion with internal auditors any significant findings and follow up there on.
(f) Reviewing the findings of any internal investigations by the internal auditors into matters where there is
suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the
matter to the Board.
(g) Discussion with external auditors, before the audit commences, about the nature and scope of audit as well
as post-audit discussion to ascertain any area of concern.
(h) Reviewing the Company's financial management policies.
(i) To look into the reasons for substantial defaults, if any, in the payment to the depositors, debenture holders,
shareholders (in case of non payment of declared dividends) and creditors.
The Audit Committee comprises four Directors viz., Dr. R. H. Patil, Mr. A. P. Kurian, Mr. Y. H. Malegam and
Dr. V. A. Sastry as its members. Dr. R. H. Patil is the Chairman of the Audit Committee. The Committee met four
times during the year i.e., on June 4, 2010, August 24, 2010, November 22, 2010 and February 1, 2011. The
details of the attendance of members of the Audit Committee at their meetings held on the above dates are given
hereunder:-
Name Number of meetings held Number of meetings attendance

during the year during the year
Dr. R. H. Patil 4 2
Mr. A. P. Kurian 4 4
Dr. V. A. Sastry 4 3
(2) Compensation Committee

The Compensation Committee has been vested with the powers and authority for overseeing performance evaluation
and recommending compensation package for employees including Managing Directors. It is ensured that no
Director is involved in deciding his or her own remuneration. The Compensation Committee comprises of five
non-executive directors viz., Dr. Vijay L Kelkar, Mr. S. B. Mathur, Mr. A.P.Kurian, Mr. Y.H. Malegam and
Dr. V.A.Sastry. Dr. Vijay Kelkar is the Chairman of the Compensation Committee. During the year, the Committee
met once on June 11, 2010. All the members of the Committee were present at the meeting held on June 11, 2010.
Dr. Kelkar, the Chairman of the Compensation Committee was present at the Annual General Meeting held on
September 27, 2010.
(3) Nomination Committee
The primary function of this Committee is to recommend to the Board the broad principles to be followed while
co-opting directors and to decide on the issues such as the optimum size for the Board, the Board tenure for
directors, qualification, experience and standing of persons to be co-opted including the designation levels for
shareholder representatives, rotational or group representation for shareholders with below 10% holding, application
of proposed principles to existing directors, etc. Keeping in mind the mandate of the SEBI and the Board of
35
NSEIL, the Nomination Committee follows following guidelines before recommending any individual as a Director
on the Board :-
(i) Public Interest Directors (PIDs) shall constitute one-fourth of the total strength of the Board.
(ii) Trading Member Directors shall constitute a maximum of one-fourth of the total strength of the Board.
(iii) Shareholder Directors shall constitute the balance of the Board.
The Nomination Committee comprises of Dr. Vijay Kelkar, Mr. S.B.Mathur, Mr. Y.H. Malegam, Mr. Anjan
Barua and Mr. Ravi Narain. Dr. Vijay Kelkar is the Chairman of the Nomination Committee.
(4) Share Transfer and Shareholders Grievances Committee
The Committee was initially discharging the function of approving share transfers and deciding on any matter
incidental to or connected with the transfer. The Company, in continuation of its pursuit to establish good corporate
governance practice, felt the need to have a Committee under the chairmanship of a non-executive director to
specifically look into the redressal of shareholder complaints like transfer of shares, non-receipt of balance
sheet, non-receipt of declared dividends, etc. Accordingly, during the year this Committee was vested with the
additional role of looking into the redressal of shareholder, grievances like transfer of shares, non-receipt of
balance sheet, non-receipt of declared dividends, etc.
The Committee comprises Dr. Vijay Kelkar, Mr. Y. H. Malegam, Mr. S. B. Mathur, Mr. A.P. Kurian and Mr. Ravi
Narain. Dr. Vijay Kelkar is the Chairman of the Committee. The Committee met three times during the year i.e.,
on April 6, 2010, December 13, 2010 and March 28, 2011. The details of the attendance of members of the Share
Transfer and Shareholders Grievances Committee at the meetings held on the above dates are given hereunder:-
Name No. of meetings held during No. of meetings attended
the tenure of the member
Dr. Vijay Kelkar* 1 –
Mr. A. P.Kurian 3 3
Mr. S.B.Mathur 3 3
Mr. Ravi Narain 3 3
*Dr. Kelkar was inducted on this Committee only on February 4, 2011.
(5) Risk Assessment and Review Committee
The Audit Committee inter-alia periodically reviews the risk impacting the company's business and suggests
measures for risk mitigation. In order to carry out the identification and assessment of existing risk and also
recommend risk minimisation procedures & reporting system thereof on an ongoing basis, a Risk Assessment
and Review Committee comprising Dr. R. H. Patil, Mr. Y. H. Malegam, Mr. A. P. Kurian and Dr. V. A. Sastry
(who are also members of Audit Committee) was separately constituted during the year.
(6) In addition to Committees covered specifically in detail, the Company also has following Committees,
namely:
(i) Standing Committees under the Rules, Byelaws and Regulations
1. Arbitration Panel
2. Defaulters Committee
3. Disciplinary Action Committee (Board Committee)
4. Ethics Committee (Board Committee)
(ii) SEBI mandated Committees
1. Executive Committee ( F& O segment)
36
2. Executive Committee (Currency Derivatives segment)

3. Sub-committee for monitoring compliance of suggestions given in SEBI Inspection Reports
(Board Committee)
4. Surveillance Committee (Board Committee)
5. Investor Services Committee (Board Committee)
6. Committee to decide on Compulsory Delisting
(iii) Other Functional Committees
1. Executive Committee
2. Membership Approval Committee (Board Committee)
3. Sub-broker recognition Committee
4. Committee for Declaration of Defaults (Board Committee)
5. Listing Advisory Committee
6. Technology Budget Committee (Board Committee)
7. Committee for Approval of Acquisition of Premises (Board Committee)
8. Business Development Committee (Board Committee)
9. Pricing Committee (Board Committee)
(E) Remuneration of Directors
In order to align compensation levels with market levels and at the same time attract, retain and motivate Directors
of the quality required to run the company successfully, the compensation being paid to Managing Directors are
periodically reviewed and revised. The composition of their remuneration includes both fixed and variable
components. Variable component forms significant portion of the total remuneration. Further, it is ensured that
the variable to total pay is higher at senior levels in the organisation and particularly for Managing Directors so
that the relationship of remuneration to performance is clear.
All of the comparable global exchanges (including an exchange in India) and other BFSI companies in India have
liberal ESOP schemes for its employees including executives on the Board over and above the direct employee
remuneration. However, the Company does not have ESOP Schemes for its employees and Directors. None of
the Directors of the Company hold any shares or any convertible instruments in the Company.
Variable incentive schemes are also put in place by the Company for Managing Directors besides employees.
A sitting fee is being paid to non executive Directors for the meetings of the Board or the Committees constituted
by it attended by them. As Non Executive Chairman, Dr. Vijay Kelkar provides guidance on an ongoing basis in
matters of strategic importance to the company management. As his experience and expertise is invaluable to the
Board in maintaining strategic leadership and governance, a fixed amount of remuneration of Rs. 25 lakhs per
annum is being paid to Dr. Kelkar in accordance with the terms approved by Board, Shareholders and the Central
Government.
The details of remuneration paid to Managing Director and Joint Managing Director during FY 2010-11 is given
in the following table:-
(Rs. in crores)
Name & Designation Salary & Variable Perquisites in Contribution Total
Allowances Pay cash or to PF and
in kind other Funds
Mr. Ravi Narain, 1.67 4.11 1.12 0.45 7.35
Managing Director
Ms. Chitra Ramkrishna, 1.25 2.65 0.65 0.34 4.90
Joint Managing Director
37
The sitting fees paid to the Non-executive Directors for attending the meetings of the Board and its Committees
are as follows:
Name Board meetings Board Committees' meetings Total
No. of Amount No. of Amount
meetings (Rs.) meetings (Rs.)
attended attended
Dr. Vijay Kelkar 4 80,000 6 1,20,000 2,00,000
Mr. C. Achuthan 3 60,000 8 1,60,000 2,20,000
SBI (Mr. Anjan Barua) 2 40,000 – – 40,000
Mrs. Ranjana Kumar 2 40,000 4 80,000 1,20,000
Mr. A.P.Kurian 4 80,000 16 3,20,000 4,00,000
Dr. Rajiv Lall 1 20,000 – – 20,000
Mr. Y.H.Malegam 3 60,000 8 1,60,000 2,20,000
LIC (Mr. S.B.Mainak) 4 80,000 5 1,00,000 1,80,000
Mr. S.B.Mathur 4 80,000 11 2,20,000 3,00,000
Dr. K.R.S.Murthy 4 80,000 12 2,40,000 3,20,000
Dr. R.H.Patil 1 20,000 4 80,000 1,00,000
GIC (Mrs. Bhagyam Ramani) 3 60,000 5 1,00,000 1,60,000
Dr. V.A.Sastry 4 80,000 7 1,40,000 2,20,000
Mr. Deepak Satwalekar 4 80,000 5 1,00,000 1,80,000
II. Auditors
The Audit Committee considers the profile of the audit firms, qualifications and experience of partners auditing
books and accounts of the Company, strengths and weaknesses, if any, of the audit firm and other related aspects
and then recommends appointment of Auditor and the remuneration payable to them to the Board/shareholders.
The Audit Committee also periodically discusses with the Auditor the annual work programme and the depth and
detailing of the audit plan to be undertaken by him.
The Board appointed an external firm of Chartered Accountants as its internal auditor in order to ensure the
independence and credibility of the internal audit process.
III. Secretarial Review
The Company has engaged the services of Mr. S.N. Ananthasubramanian, Practicing Company Secretary and
also the member of the Central Council of The Institute of Company Secretaries of India, to conduct review of
compliances under the Companies Act, 1956 and the rules laid down thereunder for the financial year ended
31st March, 2011. The report of the Practicing Company Secretary is placed before the Audit Committee.
IV. Shareholders
(A) Disclosures regarding the appointment/re-appointment of directors
Mr. Anjan Barua, Mrs. Bhagyam Ramani, Mr. S.B.Mainak and Mr. S.B. Mathur retire by rotation at the ensuing
Annual General Meeting and are eligible for re-appoinment. The profiles of all these directors are provided in
the Notice convening the Annual General Meeting.
(B) Communication with Shareholders
The Exchange disseminates all material information to its shareholders through periodical communications.
38
Annual Report: Annual report containing inter alia, Audited Accounts, Directors' Report, Report on Corporate
Governance, other material and related matters/information is circulated to the shareholders and others entitled
thereto.
(C) Redressal of shareholders complaints
NSEIL has ‘Share Transfer and Shareholders Grievances Committee' under the chairmanship of Dr. Vijay Kelkar,
Non Executive Director, to look into the redressal of shareholder complaints.
(D) General Body Meetings
Location, date and time of the general meetings held in the last three years till March 31, 2011:-
Type of meeting Date Time Venue Special Resolution
passed
18th Annual General September 27, 4.00 p.m. Exchange Plaza, • Re-appointment
Meeting 2010 Bandra-Kurla of Auditors
Complex under
Bandra (East) Section 224A
Mumbai- 400 051
Extra-ordinary General April 27, 2010 5.00 p.m. -do- • Alteration of

Meeting Articles of
Association of
the Company
17th Annual General September 30, 10.00 a.m. -do- • Re-appointment

Meeting 2009 of Auditors under
Section 224A
• Alteration of
Articles of
Association of
the Company
16th Annual General July 18, 2008 10.30 a.m. -do- • Re-appointment of
Meeting Auditors under
Section 224A
• Alteration of
Articles of
Association of the
Company.
Extra-ordinary General April 21, 2008 11.00 a.m. -do- • Alteration of

Meeting Articles of
Association of the
Company
39
(E) Shareholding pattern of the Exchange and Top 10 Shareholders as on 31st March, 2011.
Distribution of Shareholding as on 31st March, 2011:
Category No. of the % of the No. of % to the total

shareholders in each category shares held paid up equity
category capital
Individuals 6 9.68 18,21,429 4.05
Corporates-Listed 4 6.45 5,19,376 1.15
Corporates-unlisted 11 17.74 49,60,168 11.02
Financial Institutions/Banks 11 17.74 1,40,38,882 31.20
Insurance Companies 7 11.29 82,53,500 18.34
Mutual Funds 5 8.06 4,87,000 1.08
Venture capital fund 1 1.61 1,58,666 0.35
Foreign holding 17 27.42 1,47,60,979 32.80
Total 62 100.00 4,50,00,000 100.00
Top 10 Shareholders as on 31st March, 2011
Sr. No. Name of the shareholder No. of shares Percentage of

held shareholding
1 Life Insurance Corporation of India 47,28,500 10.51
2 State Bank of India 45,87,500 10.19
3 Infrastructure Development Finance Company Limited 35,47,990 7.88
4 IFCI Limited 24,97,750 5.55
5 Stock Holding Corporation of India Limited 22,50,000 5.00
6 GA Global Investments Limited 22,50,000 5.00
7 GS Strategic Investments Limited 22,50,000 5.00
8 SAIF II SE Investments Mauritius Limited 22,50,000 5.00
9 Aranda Investments (Mauritius) Pte. Ltd. 22,50,000 5.00
10 IDBI Bank Limited 22,49,153 4.998
As per Securities Contracts (Regulation) (Manner of Increasing and Maintaining Public Shareholding in Recognised
Stock Exchanges) Regulations, 2006, the Exchange is required to ensure that at least 51% of the equity share
capital is held by public. The Exchange ensures compliance thereof.
Stock Market Data : The equity shares of NSEIL are not listed on any stock exchange.
(F) Registrar and Transfer Agent:
The address for communication and contact details of the Registrar and Transfer Agent are as under:
M/s. Link Intime India Pvt. Ltd., C-13, Pannalal Silk Mills Compound, L.B.S. Marg, Bhandup (West)
Mumbai 400 078. Tel. No. + 91 22 2596 3838 and Fax No. +91 22 2594 6979.
40
(G) Addresses for Correspondence

Shareholders are requested to intimate all changes pertaining to their Bank details, email address, Power of
Attorney, change of name, change of address, contact details, etc., to their Depository Participants (DP).
(H) Certificate on compliance of corporate governance norms
Clause 49 of the Listing Agreement mandates for the companies which listed their securities with the Stock
Exchanges to obtain a certificate, from either the auditors or practicing company secretaries, regarding the
compliance of conditions of corporate governance covered therein and annex the certificate with the Directors'
Report, which is sent annually to the shareholders.NSEIL, being an unlisted company, has voluntarily adopted
compliance of corporate governance norms covered in the said clause 49 and has, accordingly, obtained a certificate
to this effect from a practicing company secretary. The same is given as an Annexure to the Directors' Report.
(I) Compliance with the non-mandatory requirements of Clause 49 of the Listing agreement
In addition to the above, NSEIL also complies with non-mandatory requirements of Clause 49 like maintaining
a Chairman's office at the company's expense, reimbursement of expenses incurred by Chairman in performance
of his duties, tenure for Directors, requisite qualifications and experience for independent directors, remuneration
committee, dissemination of financial results to the shareholders on a quarterly basis, unqualified financial
statements, etc.
During the year, the Company has established a mechanism for employees to report concerns about unethical
behavior, actual or suspected fraud, or violation of the code of conduct or ethics policy. The Company also
provides for adequate safeguards against victimisation of employees who avail of the mechanism and also allows
direct access to the Chairman of the Ethics committee in exceptional cases.
41
CORPORATE GOVERNANCE COMPLIANCE CERTIFICATE
To,
The Members,
National Stock Exchange of India Limited
Exchange Plaza, C-1, Block G
Bandra Kurla Complex
Bandra (East), Mumbai 400051
We have examined all relevant records of National Stock Exchange of India Limited (the Company) for the
purpose of certifying compliance of the conditions of Corporate Governance as stipulated under Clause 49 of the
Listing Agreement for the financial year ended 31st March 2011. The Company being an unlisted Company has
voluntarily adopted compliance of Clause 49 of the Listing Agreement applicable to the Companies which are
listed with the Stock Exchanges. We have obtained all the information and explanations to the best of our knowledge
and belief which were necessary for the purpose of this certification.
The compliance of the conditions of Corporate Governance is the responsibility of the Management. Our
examination was limited to the procedures and implementation thereof, adopted by the Company for ensuring the
compliance of the conditions of the Corporate Governance. This certificate is neither an assurance as to the future
viability of the Company nor of the efficacy or effectiveness with which the management has conducted the
affairs of the Company.
On the basis of our examination of the records produced, explanations and information furnished, we certify that
the Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned
Listing Agreement.
S. N. ANANTHASUBRAMANIAN & CO.

Company Secretaries
S. N. Ananthasubramanian
Proprietor
C.P.No.: 1774
Date: April 29, 2011
Place: Thane
42
MANAGEMENT DISCUSSION & ANALYSIS
Economic & Business environment

The Indian Economy growth in 2010-11 had been swift and broad-based. The economy regained its pre-crisis
growth trajectory. The Gross Domestic Product (GDP) of India is estimated to have grown at 8.6 per cent in
2010-11 in real terms. In 2010-11 agriculture is estimated to have grown at 5.4 per cent, industry at 8.1 per cent
and services at 9.6 per cent. All three sectors are contributing to the consolidation of growth. More importantly,
the economy has shown remarkable resilience to both external and domestic shocks. Fiscal consolidation has
been impressive. This year saw significant progress in critical institutional reforms that would set the pace for
double-digit growth in the near future.
With the strong innate economic fundamentals, India continues to be the highly attractive destination for investment,
globally. India is today rated as one of the most attractive investment destinations across the globe. The UNCTAD
World Investment Report (WIR) 2010, in its analysis of the global trends and sustained growth of Foreign Direct
Investment (FDI) inflows, has reported India to be the second most attractive location for FDI for 2010-2012.
The cumulative amount of FDI equity inflows from April 2000 to January 2011 stood at US$ 193.74 billion,
according to the data released by the Department of Industrial Policy and Promotion (DIPP). The huge increase
in investment mirrors the foreign investors' faith in the Indian markets. Even the net investments by FIIs for the
period November 1992 till March 31, 2011 was US $ 121.56 billion. The forex reserves increased to US $ 303
billion at end of March 25, 2011.
During 2010-11, the Indian securities industry also experienced a number of global, technological and regulatory
developments. In addition, demands for new products and services, particularly new asset classes and need for
faster and more cost efficient trade execution increased substantially.
Thus, the year 2010-11 witnessed major imperatives such as Launch of new products & services, Technological
advancements, Regulatory developments etc.
Outlook
The Indian economy is expected to operate close to its trend growth rate, powered mainly by domestic factors.
The investment rate has exceeded 36 per cent of GDP. Even with an incremental capital-output ratio of 4, this
should enable the Indian economy to grow at 9 per cent. Thus, the broad macroeconomic parameters relating to
savings and investment are conducive for achieving a high growth rate. Aligned with this, as a natural fall out, it
is expected that the investment momentum within the economy would continue at an accelerated pace. This
would have a significantly positive impact on the capital markets. Similarly, the existing products and asset
classes which would continue to evince interest, it is expected that there would be attraction towards new asset
classes as well. New products and services, technological innovation and strong risk management framework
would continue to be the key drivers for the securities market.
Risks and concerns
While the fundamentals of Indian economy remain strong, the domestic capital market and especially the inflow
of foreign funds are to a large extent susceptible to the developments in the global economy. Any adverse
development could have a negative impact on the domestic markets. Also post global financial crisis, much of the
recovery in the developed economies was driven by temporary measures such as fiscal stimulus and the like.
Some of these countries are considering withdrawal of these fiscal stimuli which could affect the growth levels in
those economies it could have adverse impact on the Indian capital market. However, with vibrant growth
expectations within the country these risks would be largely mitigated.
43
Internal control systems and their adequacy

The Company has well established internal control systems commensurate with the size and nature of its business
and are adequate to ensure compliance with various internal processes and procedures as well as with various
statutory and legal requirements. The Company has appointed reputed firms of Chartered Accountants to review
the effectiveness of the internal control systems and submits its observations, if any to the Audit Committee of
the Board for its review / recommendations.
Financials
The financial statements have been prepared in compliance with the requirements of the Companies Act, 1956,
Generally Accepted Accounting Principles (GAAP) in India and as per the applicable Accounting Standards laid
down by the Institute of Chartered Accountants of India. A well known and reputed firm of Chartered Accountants
performs the audit and they have confirmed that our practices are as stringent and complete as internationally.
Financial performance (2010-11)
During the year 2010-11, the total revenue has increased by 9% from Rs.1266.38 crores for the year 2009-10 to
Rs.1378.47 crores for the year 2010-11.
The total expenditure for the year 2010-11 was Rs. 519.16 crores as compared to Rs. 454.89 crores for the year
2009-10. An increase of around 14% over the previous year.
The total Profit Before tax for the year 2010-11 was Rs. 859.31 crores as against Rs. 811.49 crores for the year
2009-10. An increase of 6% over the previous year.
The total Provision for tax (including deferred tax, wealth tax) for the year 2010-11 was Rs. 221.80 crores as
against Rs. 197.72 crores for the year 2009-10.
The total Profit after tax for the year 2010-11 was Rs. 637.51 crores as against Rs. 613.77 crores for the year
2009-10. An increase of 4% over the previous year.
Revenue
Transaction charges
During the year, there was a modest increase of around 4% in the income from Transaction charges from
Rs. 768.43 crores for the year 2009-10 to Rs. 799.27 crores for the year 2010-11. The average daily turnover on
the Exchange during the year 2010-11 was Rs. 14,090 crores in Cash Market (CM segment) as against Rs. 16,964
crores for the year 2009-10 indicating a decline of 17%. In F&O segment the average daily turnover (billable)
for the year 2010-11 was Rs. 39,628 crores as against Rs. 37,990 crores for the year 2009-10 indicating a growth
of 4%.
Listing Fees
Revenue under this head of income increased by around 20% from Rs. 19.30 crores for the year 2009-10 to
Rs. 23.24 crores for the year 2010-11.The Exchange as of March 31, 2011 had 1,542 listed companies. The total
market capitalisation of these companies as of March 31, 2011 stood at Rs.65 lakhs crores.
Book Building Fees
The total book building fees during the year 2010-11 decreased by around 6% from Rs. 12.33 crores for the year
2009-10 to Rs. 11.67 crores for the year 2010-11.
Treasury income (Interest & Other Investment income)
In line with the overall increase in the interest rates in the economy and change in the investment strategy, during
44
the year 2010-11, the total income from treasury operations increased from Rs. 292.23 crores for the
year 2009-10 to Rs. 336.09 crores for the year 2010-11.
NSE's Certification in Financial Markets (NCFM)
Based on the feedback received and catering to the growing needs of the capital market, the Exchange continued
its focus on educational initiatives by introducing new NCFM modules during the year 2010-11. The income
from NCFM activity stood at Rs. 23.35 crores for the year 2010-11. Also, the total number of candidates taking
examination during the year 2010-11 was around 1, 69,000.
Other Income
During the year 2010-11, the other income increased by 39% from Rs. 106.19 crores for the year 2009-10 to
Rs. 147.81 crores for the year 2010-11.
Expenditure
Operating, Administration and Other expenses
The total Operating, Administration and Other expenses for the year 2010-11 increased by 29% from Rs. 78.59
crores for the year 2009-10 to Rs. 101.06 crores for the year 2010-11.
IT & Telecom expenses
Technology is the backbone of our business and also the key differentiator. The Exchange continued to invest in
the state of the art technology in different areas of its business keeping clear focus on its cost efficiency. Accordingly,
during the year, the total IT & Telecom expenses for the year 2010-11 decreased by 6% from Rs. 150.57 crores
for the year 2009-10 to Rs. 141.69 crores for the year 2010-11.
Clearing & Settlement charges
National Securities and Clearing Corporation Limited (NSCCL), a wholly owned subsidiary of the Exchange,
carries out the clearing and settlement of the trades executed in the CM and F&O segments. Consequent to the
increase in income from transaction charges and change in the charging structure, the clearing & Settlement
charges for the year 2010-11 paid to NSCCL increased by 25% from Rs. 95.91 crores for the year 2009-10 to
Rs. 119.89 crores for the year 2010-11.
Payment and Provision for employees
The Exchange recognises the value of its human capital deployed at all levels. To continue to provide best in class
services to its members and other market participants it is essential for the Company to attract and retain the best
talent available. In this direction, the Company continues to take various initiatives to follow HR best practices
and also keeps benchmarking it with other forward looking organisations. During the year 2010-11, the Company
has taken number of HR initiatives in the areas of employee developments and training, harnessing knowledge
and skill levels as well as various staff welfare measures etc. During the year 2010-11, the total employee strength
increased by around 6% and the employee related expenses stood at Rs. 64.43 crores which was Rs. 52.73 crores
for the year 2009-10. For the year 2010-11, the total employee cost as a percentage to total income was 4.7% and
as a percentage of expenditure was 12.4% which is comparable to the industry standards.
Depreciation
Exchange continued to invest in technology in different areas of its business. Accordingly, the total depreciation
increased by 19% from Rs.76.75 crores for the year 2009-10 to Rs. 91.35 crores for the year 2010-11.
45
Financial Statement as on March 31, 2011

Share Capital
The total paid up capital of the Company as on March 31, 2011 is Rs. 45 crores divided into 4,50,00,000 equity
shares of Rs. 10 each.
Reserves & Surplus
The total Reserves & Surplus as on March 31, 2011 is Rs. 2,923.40 crores comprising of Share Premium of Rs.
40 crores, Investor Compensation reserves Rs. 10 crores, staff welfare reserves of Rs. 1 crores, General reserve of
Rs. 2,755 crores and balance in P&L A/c of Rs. 117.40 crores.
Thus the total Net worth of the Company as on March 31, 2011 is Rs. 2,968.40 crores and the book value is
Rs.659.64 per share.
Deposits from members (Unsecured)
The total deposits from members as on March 31, 2011 stood at Rs. 1,115.20 crores as against Rs.1,043.58 crores
as on March 31, 2010. An increase of Rs.71.62 crores.
Fixed Assets
Total Gross Block as on March 31, 2011 was Rs. 915.23 crores. Total Accumulated depreciation up to March 31,
2011 was Rs. 484.23 crores. Net fixed Assets (including Capital W.I.P) were Rs. 458.00 crores. As part of the
total investments in technology areas, during the year 2010-11 the total additions to fixed assets were Rs. 103.27
crores mainly pertaining to the Building, Trading systems and telecom equipments where as total deletions at
cost were at Rs. 13.82 crores. These equipments had become obsolete and are fully depreciated.
Investments
The prudential policy of the Company permits to invest both long term and short term surplus funds in to deposits
of highly rated banks, bonds issued by the Central / State governments, institutions and various corporates and
into the debt oriented schemes of high performing mutual funds. As on March 31, 2011 the total Long term
investments was Rs. 548.24 crores as against Rs. 317.33 crores as on March 31, 2010. Increase of Rs. 230.91
crores. However, short term investments grouped under "Other Current Assets" were Rs. 110.77 crores as on
March 31, 2011 as against Rs. 2,463.98 crores as on March 31, 2010, indicating an decrease of Rs. 2,353.21
crores. This was mainly due to shifting of investments from mutual funds to Bank Fixed deposits to take advantage
of higher yields in Fixed Deposits.
Current Assets, Loans & Advances (other than short term investments)
Total Current Assets, Loans & Advances (other than short term investments) as on March 31, 2011 stood at
Rs. 3,532.01 crores comprising of interest accrued on investments and Fixed Deposits amounting to Rs. 96.10
crores, Debtors amounting to Rs. 150.68 crores and cash and bank balances in current and Fixed Deposits and
certificates of deposits amounting to Rs. 3,221.02 crores and Loans advances of Rs. 64.21 crores.
Current Liabilities & provisions
Total Current Liabilities as on March 31, 2011 stood at Rs. 552.66 crores comprising of Sundry creditors of
Rs. 73.71 crores, Dues from subsidiary companies Rs. 20.01 crores, security deposits as per listing agreement
amounting to Rs. 70.55 crores, Securities Transaction Tax of Rs. 120.24 crores, provision for Leave encashment
of Rs. 6.49 crores, proposed dividend of Rs. 94.50 crores, corporate dividend tax of Rs. 15.33 crores and other
current liabilities amounting to Rs. 151.83 crores.
Taxation
The total Provision for tax (including deferred tax, wealth tax) for the year 2010-11 was Rs.221.80 crores as
against Rs. 197.72 crores for the year 2009-10. Though the present Indian Corporate tax rate is 33.22% comprising
of base rate and surcharge and cess, due to investments into various debt schemes of mutual funds the effective
tax rate works out to 25.95 %
Event occurring after the balance sheet date
There are no transactions of material nature that have occurred after March 31, 2011 which could have any
impact on the financial performance of the Company for the year 2010-11.
46
To,
The Board of Directors
We, Ravi Narain, Managing Director & CEO and J. Ravichandran, Director (F&L) of the National Stock Exchange
of India Limited hereby certify to the Board that:
a. We have reviewed financial statements and the cash flow statement for the year ended on March 31, 2011
and that to the best of our knowledge and belief :
i. these statements do not contain any materially untrue statement or omit any material fact or contain
statements that might be misleading;
ii. these statements together present a true and fair view of the Company's affairs and are in compliance
with existing accounting standards, applicable laws and regulations.
b. There are, to the best of our knowledge and belief, no transactions entered into by the Company during the
year which are fraudulent, illegal or violative of the Company's code of conduct.
c. We accept responsibility for establishing and maintaining internal controls for financial reporting and that
we have evaluated the effectiveness of internal control systems of the Company pertaining to financial
reporting and we have disclosed to the auditors and the Audit Committee, deficiencies in the design or
operation of such internal controls, if any, of which we are aware and the steps we have taken or propose to
take to rectify these deficiencies.
d. We have indicated to the Auditors and the Audit Committee
i. significant changes, if any, in internal control over financial reporting during the year;
ii. significant changes, if any, in accounting policies during the year and that the same have been disclosed
in the notes to the financial statements; and
iii. instances of significant fraud of which we have become aware and the involvement therein, if any, of
the management or an employee having a significant role in the Company's internal control system
over financial reporting.
Mumbai Ravi Narain J Ravichandran

April 29, 2011 Managing Director & CEO Director (F&L) &
Company Secretary
47
AUDITORS’ REPORT
To,
The Members,
1. We have audited the attached Balance Sheet of NATIONAL STOCK EXCHANGE OF INDIA
LIMITED, as at 31st March, 2011 and also the Profit & Loss Account and the Cash Flow Statement
for the year ended on that date annexed thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with auditing standards generally accepted in India. Those
Standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, and read with the amendments made by
the Companies (Auditors' Report) (Amendment) Order 2004, issued by the Central Government of
India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, and on the basis of such
checks of the books and records as we considered appropriate and according to the information and
explanations given to us during the course of audit, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order to the extent they are applicable to the
Company.
4. Further to our comments in the Annexure referred to above, we report that:
a) We have obtained all the information and explanations, which to the best of our knowledge and
belief, were necessary for the purposes of our audit;
b) In our opinion, proper books of account as required by law have been kept by the Company so far
as appears from our examination of those books;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report are
in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by
this report comply with the accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
48
e) On the basis of the representations received from the Directors as on 31st March, 2011 and taken
on record by the Board of Directors, none of the Directors is disqualified as on 31st March, 2011
from being appointed as a Director in terms of Clause (g) of sub-section (1) of Section 274 of the
Companies Act, 1956;
f) In our opinion and to the best of information and according to the explanations given to us, the
said accounts read together with the notes thereon, give the information required by the Companies
Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India;
i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March,
2011;
ii) in the case of the Profit & Loss Account, of the Profit of the Company for the year ended on
that date; and
iii) in the case of cash flow statement, of the cash flows for the year ended on that date.
For KHANDELWAL JAIN & CO.,

Chartered Accountants,
Firm's Registration No.105049W
(NARENDRA JAIN)
PARTNER
Membership No.: 48725
Place : Mumbai
Date : April 29, 2011
49
ANNEXURE TO THE AUDITORS' REPORT
Annexure referred to in paragraph 3 of Auditors' Report of even date to the members of

NATIONAL STOCK EXCHANGE OF INDIA LIMITED on the financial statements for the year
ended March 31, 2011
i) a) The Company has maintained proper records showing full particulars including quantitative
details and situation of Fixed Assets.
b) The Company has physically verified the fixed assets in accordance with a programme of
verification which in our opinion provides for physical verification of all fixed assets at reasonable
intervals except for VSAT equipments lying with third parties for which confirmations are
generally obtained or electronically confirmed. We have been informed that no material
discrepancies were noticed on such verification.
c) No substantial part of fixed assets of the Company has been disposed off during the year.
ii) a) The Company has not granted any loans, secured or unsecured, to companies, firms or other
parties covered in the register maintained under Section 301 of the Act.
b) The Company has not taken any loans, secured or unsecured, from companies, firms or other
parties covered in the register maintained under Section 301 of the Act.
iii) In our opinion, there is an adequate internal control procedure commensurate with the size of the
Company and the nature of its business, for purchase of fixed assets and for rendering of services.
During the course of our audit, we have not observed any major weakness in the internal control
systems.
iv) Based on the audit procedures applied by us and according to the information and explanations provided
by the management, we are of the opinion that the Company has not entered into any contracts or
arrangements that need to be entered in the register maintained under Section 301 of the Companies
Act, 1956.
v) The Company has not accepted any deposits during the year from the public within the meaning of
the provisions of Section 58A, 58AA or any other relevant provisions of the Companies Act, 1956
and the rules made thereunder.
vi) In our opinion, the Company has an internal audit system which is commensurate with the size of the
Company and the nature of its business.
vii) We are informed that no cost records are required to be maintained by the Company under Section
209(1)(d) of the Companies Act, 1956.
50
viii) a) According to the information and explanations given to us and the records examined by us, the
Company is regular in depositing with appropriate authorities undisputed statutory dues including
provident fund, investor education and protection fund, employees' state insurance, income-
tax, sales-tax, wealth-tax, service-tax, custom duty, excise duty, cess and any other statutory
dues wherever applicable.
b) According to the records of the Company, the dues of sales-tax, income-tax, customs, wealth-
tax, service tax, securities transaction tax, excise duty, cess which have not been deposited on
account of disputes and the forum where the dispute is pending are as under:
Sr. Name of the Statute Nature of Period to Amount Forum where

No. the Dues which (Rs. in dispute is Pending
amount Crores)
relates
1. Income Tax Act, 1961 Income Tax 2002-2003 5.96 Income Tax Appellate Tribunal,
Mumbai
2007-2008 0.002 Commissioner of Income Tax
(Appeal) Mumbai
2008-2009 9.72 Addtl. Commissioner of Income
Tax, Mumbai
2. Wealth Tax Act, 1957 Wealth Tax 2000-2001 0.11 Income Tax Appellate Tribunal,
Mumbai - Wealth Tax Bench
3. Finance (No.2) Act, Securities 2006-2007 5.09 Income Tax Appellate Tribunal,
2004-Chapter VII Transaction Mumbai
Tax
2007-2008 0.97 Commissioner of
Income Tax (Appeals), Mumbai
2008-2009 0.48 Commissioner of Income Tax
(Appeals), Mumbai
4. Chapter V of Service Tax 2004-2005 28.10 Company is in the process of filing
Finance Act, 1994 to the reply to the show cause cum
2008-2009 demand notice to Commissioner of
Service tax, Mumbai
ix) The Company did not have any accumulated losses at the end of the financial year, nor had it incurred
any cash loss during the financial year or in the immediately preceding financial year.
x) The Company has not taken any loan from banks or financial institutions and the Company has not
issued any debentures.
xi) The Company has not granted loans and advances on the basis of security by way of pledge of shares,
debentures and other securities.
xii) According to the information and explanations given to us, the company has not given any guarantee
for loans taken by others from bank or financial institutions.
51
xiii) The Company has not taken any term loans during the year.
xiv) According to the information and explanations given to us and on an examination of the Balance
Sheet of the Company, we report that, on an overall basis, funds raised on short term basis have prima
facie, not been used during the year for long term investment.
xv) The Company has not made any preferential allotment of shares to the parties and companies covered
in the register maintained under Section 301 of the Companies Act, 1956.
xvi) The Company has not issued any Debentures during the year and there were no debenture outstanding
at the year-end.
xvii) The Company has not raised any money by public issue during the year.
xviii) Based upon the audit procedures performed and information and explanations given by the
management, we report that no fraud on the Company or by the Company has been noticed or reported
during the course of our audit.
xix) The other clauses 4(ii), 4(xiii) and 4(xiv) of para 4 of the Companies (Auditor's Report) Order, 2003,
as amended by the Companies (Auditors' Report) (Amendment) Order 2004, are not applicable to
company.

Firm's Registration No.105049W
(NARENDRA JAIN)
PARTNER
Place : Mumbai
52
BALANCE SHEET AS AT MARCH 31, 2011
Schedule As at 31.03.2011 As at 31.03.2010

(Rs. in Crores) (Rs. in Crores)
I SOURCES OF FUNDS
1. Shareholders' Funds
a Share Capital 1 45.00 45.00
b Reserves & Surplus 2 2,923.40 2,381.26
2. Deposits (Unsecured)
a Deposits from trading
members 1,063.98 983.99
b Deposits from applicants
for membership 4.54 11.14
c Deposits towards equipments 46.68 48.45
3. Deferred Tax Liabilities 12.76 14.16

TOTAL 4,096.36 3,484.00
II APPLICATION OF FUNDS
1. Fixed Assets 3
a Gross Block 915.23 825.78
Less: Depreciation till date 484.23 406.31
Net Block 431.00 419.47

b Capital work in progress 27.00 458.00 58.98 478.45
(including capital advances)
2. Investments 4 548.24 317.33
53

3. Current Assets, Loans 5

and Advances
a Current Assets 3,578.57 3,039.27
b Loans & Advances 64.21 133.42
3,642.78 3,172.69
Less: Current Liabilities & 6 552.66 484.47
Provisions
Net Current Assets 3,090.12 2,688.22
TOTAL 4,096.36 3,484.00
Notes forming part of the accounts 13
As per our report of even date attached For and on behalf of the Board of Directors
DR. VIJAY L. KELKAR RAVI NARAIN

Chairman Managing Director
NARENDRA JAIN
Partner
Membership No.:48725 CHITRA RAMKRISHNA DR. R. H. PATIL
Jt. Managing Director Director
Y. H. MALEGAM J. RAVICHANDRAN
Place : Mumbai Director Director (F&L) &
Date : April 29, 2011 Company Secretary
54
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31,2011
For the year ended For the year ended

Schedule 31.03.2011 31.03.2010
INCOME
Transaction charges 799.27 768.43
Annual subscription 11.39 10.71
Book building Fees 11.67 12.33
Listing fees 23.24 19.30
Operational Expenses Recovery 7 25.65 28.36
Interest income 8 129.43 37.21
Other Investment Income 9 206.66 255.02
Other income 10 171.16 135.02
TOTAL 1,378.47 1,266.38
EXPENDITURE
Operating,Administration & other expenses 11 242.75 229.16
Clearing & Settlement charges 119.89 95.91
Payments to and provision for employees 12 64.43 52.73
TOTAL 518.42 454.55
Profit before prior-period adjustments 860.05 811.83

Add/(Less) : Prior-period adjustments (0.74) (0.34)
Less : Provision for tax

- Current tax 223.00 198.00
- Wealth tax 0.20 0.20
- Deferred tax (1.40) (0.48)
Excess Corporate Dividend Tax for last year transferred back 14.95 9.18
Profit available for appropriation 757.72 685.62
55

Schedule 31.03.2011 31.03.2010
Appropriations :
- General reserve 530.00 475.00
- Investor Compensation Reserve 0.14 0.11
- Proposed dividend 94.50 90.00
- Corporate dividend tax 15.33 14.95
- Staff welfare reserve 0.35 0.30
- Balance carried to balance sheet 117.40 105.26
757.72 685.62
Basic/Diluted Earnings per share (Rs.) (Refer Note No.17) 141.67 136.39

NARENDRA JAIN
Partner
Y. H. MALEGAM J. RAVICHANDRAN
Place : Mumbai Director Director (F&L) &
56
SCHEDULES FORMING PART OF THE BALANCE SHEET

As at 31.03.2011 As at 31.03.2010
SCHEDULE 1 : SHARE CAPITAL
Authorised
5,00,00,000 (Previous Year 5,00,00,000) Equity Shares
of Rs 10 Each. 50.00 50.00
Issued, Subscribed and Paid-up

4,50,00,000 (Previous year 4,50,00,000) Equity shares of
Rs.10 each fully paid up. 45.00 45.00
TOTAL 45.00 45.00
SCHEDULE 2 : RESERVES & SURPLUS

Share Premium
As per last balance sheet 40.00 40.00
Investor Compensation Reserve

Less : Expenses Transferred from Profit & Loss account 0.14 0.11
Add : Transferred from profit & loss account 0.14 10.00 0.11 10.00
Technology Upgradation Reserve

Less: Transferred to General Reserve account 100.00 – – 100.00
Staff Welfare Reserve

Less: Expenses incurred Transferred from
profit & loss account 0.35 0.30
Add : Transferred from profit & loss account 0.35 1.00 0.30 1.00
General Reserve
As per last balance sheet 2,125.00 1,650.00
Add : Transferred from profit & loss account 530.00 475.00
Add : Transferred from Technology Upgradation Reserve 100.00 2,755.00 - 2,125.00
Balance in profit & loss account 117.40 105.26

TOTAL 2,923.40 2,381.26
57
SCHEDULE 3: FIXED ASSETS (Note No. 1c, 1d, 1e & 13) (Rs. in Crores)
SR. DESCRIPTION GROSS BLOCK DEPRECIATION NET BLOCK

NO.
As on Additions Deductions As on Total Upto For the Deductions Total Upto As on As on
April 1, 2010-2011 2010-2011 March 31, March 31, Year 2010-2011 March 31, March 31, March 31,
2010 2011 2010 2011 2011 2010
Tangible Assets
1 Land 3.31 – – 3.31 – – – – 3.31 3.31
2 Leasehold Land 107.61 – – 107.61 18.63 1.30 – 19.93 87.68 88.98
3 Building 125.57 46.01 – 171.58 18.25 2.39 – 20.64 150.94 107.32
4 Trading Systems 176.05 11.74 3.96 183.83 112.94 31.18 3.77 140.35 43.48 63.11
5 Computer Systems
Office Automation 11.18 3.09 1.50 12.77 9.79 1.13 1.49 9.43 3.34 1.39
6 Computer Systems
Others 46.60 8.11 1.05 53.66 21.26 10.96 1.05 31.17 22.49 25.34
7 Telecommunication
Systems 183.13 9.30 4.91 187.52 121.63 26.98 4.90 143.71 43.81 61.50
8 Office Equipments 33.54 3.46 0.28 36.72 19.36 2.80 0.28 21.88 14.84 14.18
9 Electrical Equipment
& Installations 31.51 7.35 2.04 36.82 11.45 1.87 1.90 11.42 25.40 20.06
10 Furniture & Fixtures 25.31 1.52 0.03 26.80 13.97 2.30 0.03 16.24 10.56 11.34
Intangible Assets
11 Computer Software 81.97 12.69 0.05 94.61 59.03 10.44 0.01 69.46 25.15 22.94
TOTAL 825.78 103.27 13.82 915.23 406.31 91.35 13.43 484.23 431.00 419.47
Previous Year 817.27 90.10 81.59 825.78 411.09 76.75 81.53 406.31 419.47 –
58
SCHEDULE 4 : INVESTMENTS (Note No.1f)
LONG TERM INVESTMENTS (AT COST)
Maturity Number of Face Value Face As at Number As at
Date Units Per Unit Value 31.03.2011 of 31.03.2010
(Rs.) (Rs.) (Rs. in Crores) Units (Rs. in Crores)
A) QUOTED
BONDS
Taxfree
5.30% Nuclear Power Corporation of India Ltd. 31-Dec-12 – 100,000.00 30,000,000 – 300 3.00
5.50% Nuclear Power Corporation of India Ltd. 14-Aug-13 200 100,000.00 20,000,000 2.00 200 2.00
9.00% Indian Railway Finance Corporation Ltd. 28-Feb-15 100 1,000,000.00 100,000,000 10.52 50 5.00
5.25% Nuclear Power Corporation of India Ltd. 23-Mar-14 100 1,000,000.00 100,000,000 10.00 100 10.00
7.75% Indian Railway Finance Corporation Ltd. 30-Mar-11 – 1,000,000.00 82,000,000 – 82 8.29
6.85% India Infrastructure Finance Company Ltd. 22-Jan-14 6,390 100,000.00 639,000,000 64.39 4,750 47.83
6.85% India Infrastructure Finance Company Ltd. 20-Mar-14 3,175 100,000.00 317,500,000 31.95 2,000 20.00
6.05% Indian Railway Finance Corporation Ltd. 20-Dec-15 500 100,000.00 50,000,000 5.00 – –
6.00% Indian Railway Finance Corporation Ltd. 8-Mar-15 1,000 100,000.00 100,000,000 10.00 1,000 10.00
Sub-Total (i) 133.86 106.12
Taxable
7.00% Power Finance Corporation 24-Dec-11 50 1,000,000.00 50,000,000 4.96 50 4.89
7.10% Power Finance Corporation 15-Jul-12 20 1,000,000.00 20,000,000 2.00 – –
Sub-Total (ii) 6.96 4.89

MUTUAL FUND
Fixed Maturity Plans
Axis Fixed Term Plan - Series 13 (370 Days) -
Growth Plan 26-Mar-12 5,000,000.00 10.00 50,000,000 5.00 – –
Birla Sun Life Fixed Term Plan - Series CF - Growth 11-Oct-11 5,000,682.00 10.00 50,006,820 5.00 – –
Birla Sun Life Fixed Term Plan - Series CG - Growth 31-Oct-11 5,000,000.00 10.00 50,000,000 5.00 – –
Birla Sun Life Fixed Term Plan Series CI - Growth 28-Nov-11 5,000,000.00 10.00 50,000,000 5.00 – –
Birla Sun Life Fixed Term Plan Series CR Growth 1-Mar-12 5,000,000.00 10.00 50,000,000 5.00 – –
BNP Paribas Fixed Term Fund Ser 21G - Growth 26-Mar-12 5,000,000.00 10.00 50,000,000 5.00 – –
Canara Robeco - FMP - Series 5 - 13 Months
(Plan A) - Growth 12-Apr-11 5,000,000.00 10.00 50,000,000 5.00 5,000,000.00 5.00
DSP BlackRock FMP - 12 M Series 6 - Growth 22-Aug-11 5,000,000.00 10.00 50,000,000 5.00 – –
DSP BlackRock FMP - 12 M Series 7 - Growth 19-Sep-11 5,000,000.00 10.00 50,000,000 5.00 – –
DSP BlackRock FMP - 12 M Series 9 - Growth 21-Nov-11 5,000,000.00 10.00 50,000,000 5.00 – –
DSP BlackRock FMP 13M Series 2 - Growth 5-Apr-11 5,000,000.00 10.00 50,000,000 5.00 5,000,000.00 5.00
59
DWS Fixed Term Fund - Series 71- Growth Plan 14-Jun-11 5,000,600.84 10.00 50,006,008 5.00 – –
DWS Fixed Term Fund - Series 75 - Growth Plan 28-Sep-11 5,000,632.08 10.00 50,006,321 5.00 – –
DWS Fixed Term Fund - Series 76 - Growth Plan 1-Nov-11 5,000,000.00 10.00 50,000,000 5.00 – –
DWS Fixed Term Fund Series 67- Growth Plan 24-Apr-11 5,000,412.93 10.00 50,004,129 5.00 5,000,412.93 5.00
DWS Fixed Term Fund- Series 72- Growth Plan 28-Jun-11 5,000,000.00 10.00 50,000,000 5.00 – –
HDFC FMP 13M October 2009 - Growth - Series XI 20-Nov-10 – 10.00 50,005,171 – 5,000,517.09 5.00
HDFC FMP 370D March 2011 (2) - Growth - Series XVI 13-Mar-12 5,000,000.00 10.00 50,000,000 5.00 – –
HDFC FMP 370D September 2010 (1) - Growth - XV 19-Sep-11 5,000,000.00 10.00 50,000,000 5.00 – –
ICICI Prudential Fixed Maturity Plan - Series 53 -
1 Year Plan B Cumulative 21-Nov-11 5,000,730.00 10.00 50,007,300 5.00 – –
ICICI Prudential FMP Series 56-1 Year Plan B Cumulative 26-Mar-12 5,000,000.00 10.00 50,000,000 5.00 – –
IDBI FMP - 367 Days Series - I(March 2011) - C - Growth 8-Mar-12 5,000,843.50 10.00 50,008,435 5.00 – –
IDBI FMP - 367 Days Series-I(March 2011) - D - Growth 26-Mar-12 3,000,544.50 10.00 30,005,445 3.00 – –
IDFC Fixed Maturity - Yearly Series 32 - Growth 19-Aug-11 5,000,000.00 10.00 50,000,000 5.00 – –
IDFC Fixed Maturity - Yearly Series 33 - Growth 20-Sep-11 5,000,000.00 10.00 50,000,000 5.00 – –
IDFC Fixed Maturity Yearly Series 38 Growth 25-Feb-12 5,000,000.00 10.00 50,000,000 5.00 – –
IDFC FMP - Yearly Series 42-Growth 25-Mar-12 5,000,000.00 10.00 50,000,000 5.00 – –
JM Fixed Maturity Fund Series XIX Plan C -
Growth Plan 29-Mar-12 5,000,000.00 10.00 50,000,000 5.00 – –
JP Morgan India Fixed Maturity Plan 367 D Series 1 -
Growth Plan 28-Mar-12 3,000,492.00 10.00 30,004,918 3.00 – –
Kotak FMP 15M Series 7 - Growth 23-Feb-12 5,000,000.00 10.00 50,000,000 5.00 – –
Kotak FMP 370 Days Series 10 - Growth 3-Nov-11 5,000,000.00 10.00 50,000,000 5.00 – –
Kotak FMP 370 Days Series 9 - Growth 25-Oct-11 5,000,000.00 10.00 50,000,000 5.00 – –
Kotak FMP Series 39 - Growth 13-Mar-12 5,000,000.00 10.00 50,000,000 5.00 – –
Reliance Fixed Horizon Fund - XIX - Series 9-
Growth Plan 22-Mar-12 2,000,000.00 10.00 20,000,000 2.00 – –
Religare Fixed Maturity Plan - Series III - Plan D
(370 Days) - Growth 5-Sep-11 5,000,000.00 10.00 50,000,000 5.00 – –
Religare Fixed Maturity Plan Series III - Plan A
(12 Months) - Growth 20-Jun-11 5,000,000.00 10.00 50,000,000 5.00 – –
Religare Fixed Maturity Plan Series VI - Plan D
(370 Days) - Growth Plan 26-Mar-12 2,200,000.00 10.00 22,000,000 2.20 – –
Religare Fixed Maturity Plan-Series - II Plan A - Growth 11-Apr-11 5,000,376.95 10.00 50,003,770 5.00 5,000,376.95 5.00
SBI Debt Fund Series - 15 Months - 5 - Growth 8-Jun-11 5,000,343.28 10.00 50,003,433 5.00 5,000,343.28 5.00
SBI Debt Fund Series - 370 Days - 5 - Growth 30-Aug-11 5,000,558.00 10.00 50,005,580 5.00 – –
Sundaram Fixed Term Plan AN 367 Days Growth 12-Sep-11 5,000,000.00 10.00 50,000,000 5.00 – –
60
Sundaram Fixed Term Plan AO 367 Days Growth 30-Sep-11 5,000,000.00 10.00 50,000,000 5.00 – –
Sundaram Fixed Term Plan AP 367 Days Growth 4-Nov-11 5,000,000.00 10.00 50,000,000 5.00 – –
Tata Fixed Maturity Plan Series 26 Scheme C - Growth 5-Sep-11 5,000,000.00 10.00 50,000,000 5.00 – –
TATA Fixed Maturity Plan Series 26 Sheme A - Growth 25-Apr-11 6,725,002.00 10.00 67,250,020 6.73 6,725,002.00 6.73
Tata Fixed Maturity Plan Series 27 Scheme A - Growth 7-Sep-11 5,000,579.00 10.00 50,005,790 5.00 – –
Tata Fixed Maturity Plan Series 29 Scheme A - Growth 7-Nov-11 5,000,000.00 10.00 50,000,000 5.00 – –
Tata Fixed Maturity Plan Series 31 Scheme B - Growth 12-Mar-12 5,000,000.00 10.00 50,000,000 5.00 – –
UTI Fixed Maturity Plan-Yearly FMP Series:YFMP
(08-10)-Institutional Growth Plan 23-Sep-11 5,000,576.99 10.00 50,005,770 5.00 – –
Sub-Total (iii) 231.93 36.73
Total A (i to iii) 372.75 147.74

B) UNQUOTED BONDS
Taxable
5.50% Rural Electrification Corporation Ltd. 31-Aug-10 – 10,000.00 5,000,000 – 500 0.50
5.20% National Bank for Agricultural & Rural
Development 31-May-10 – 10,000.00 20,000,000 – 2,000 2.00
5.50% Rural Electrification Corporation Ltd. 31-Jul-11 7,085 10,000.00 70,850,000 7.09 7,085 7.09
6.25% Rural Electrification Corporation Ltd. 31-Mar-12 500 10,000.00 5,000,000 0.50 500 0.50
Sub-Total (i) 7.59 10.09
MUTUAL FUND
Fixed Maturity Plans
ICICI Prudential Interval Fund Annual Interval Plan -
I Institutional Cumulative 21-Aug-11 4,997,079.21 10.01 50,005,772 5.00 – –
ICICI Prudential Interval Fund Annual Interval Plan -
II Institutional Cumulative 5-Oct-11 3,913,482.44 12.78 50,006,870 5.00 – –
ICICI Prudential Interval Fund - Annual Interval Plan
III - Institutional Cumulative 18-Oct-11 4,999,800.93 10.00 50,007,009 5.00 – –
Sundaram FTP 367 Days Series U - Growth 1-Apr-11 5,000,420.00 10.00 50,004,200 5.00 5,000,420.00 5.00
Income Funds
HDFC Income Fund - Growth – 20.50 100,017,863 – 4,878,884.06 10.00
Sub-Total (ii) 20.00 15.00
61
EQUITY SHARES
In Subsidiary Companies
National Securities Clearing Corporation Ltd. 45,000,000 10.00 450,000,000 5.63 45,000,000 5.63
NSE.IT LTD. 10,000,010 10.00 100,000,100 10.00 10,000,010 10.00
DotEx International Ltd. 12,000,000 10.00 120,000,000 0.69 12,000,000 0.69
NSE Infotech Services Ltd 50,000 10.00 500,000 0.05 50,000 0.05
National Commodity Clearing Ltd. 3,087,500 10.00 30,875,000 3.09 3,087,500 3.09
India Index Services & Products Ltd. 663,000 10.00 6,630,000 0.67 663,000 0.67
20.13 20.13
In Associate Company
National Securities Depository Ltd. 20,036,001 10.00 200,360,010 96.90 20,036,001 96.90
96.90 96.90
In Joint Venture
Power Exchange India Ltd 13,000,030 10.00 130,000,300 13.00 12,500,030 12.50
13.00 12.50
In Other Companies
National Commodity & Derivative Exchange Ltd. 5,625,013 10.00 56,250,130 16.87 5,361,860 13.97
MCX Limited 1,250,000 10.00 10,000,000 1.00 2,000,000 1.00
17.87 14.97
Sub-Total (iii) 147.90 144.50
TOTAL B (i to iii) 175.49 169.59
GRAND TOTAL (A+B) 548.24 317.33
As at 31.3.2011 As at 31.3.2010
Notes : Rs. in Crores Rs. in Crores
1 (a) Aggregate Book Value - Quoted Investments 372.75 147.74
(b) Aggregate Book Value - Unquoted Investments 175.49 169.59
(c) Total (a + b) 548.24 317.33

2 Aggregate Market Value of Quoted Investments is Rs. 379.25 Crores (Previous Year Rs.140.66 Crores)
62
As at As at
31.03.2011 31.03.2010
SCHEDULE 5 : CURRENT ASSETS, LOANS & ADVANCES

A: CURRENT ASSETS
Interest Accrued
On Investments 4.74 4.09
On Certificate of Deposits 5.17 0.07
On Bank Deposits 86.19 96.10 5.49 9.65
Sundry Debtors (Considered good)
Outstanding for a period of over six months
[Unsecured Rs.0.59 crore (Previous year
Rs.0.41 crore)] 2.14 3.15
Other debts
[Unsecured Rs.1.01 crores (Previous year
Rs.1 crore)] 148.54 150.68 112.60 115.75
Cash and Bank Balances
Cash in hand 0.01 0.01
Balances with Scheduled Banks
In Current accounts 25.56 23.13
In Deposit accounts - Fixed deposits* 2,992.62 401.85
In Certificate of Deposits 202.83 3,221.02 24.90 449.89
Short term Investments (Refer Note No. 1f & 9 ) 110.77 2,463.98

3,578.57 3,039.27
*Includes earmarked Fixed Deposits amounting to Rs. 125.17 crores
(Previous year Rs.99.60 crores)
B : LOANS & ADVANCES

Secured, Considered Good
Loans to employees (Refer Note No.5 ) 0.05 0.19
Unsecured , considered good
Inter- Corporate Deposit – 63.28
Advances recoverable in cash or in kind 28.33 24.24
or for value to be received
Advance to Subsidiaries 10.53 2.59
Share Application Money – 2.89
Income Tax paid including TDS (Net of Provisions) 8.45 31.12
Fringe Benefit Tax (Net of Provisions) 2.14 –
Securities Transaction Tax paid 12.64 7.00
Deposit for premises 1.10 1.10
Other deposits 0.97 64.21 1.02 133.42
TOTAL 3,642.78 3,172.69
63

As at As at
31.03.2011 31.03.2010
SCHEDULE 6 : CURRENT LIABILITIES & PROVISIONS

A: CURRENT LIABILITIES
Sundry creditors (Refer Note No.11) 73.71 78.75
Subsidiary Companies 20.01 25.60
Secuity Deposit-Listing agreement 70.55 51.04
Deposit - Premises 31.88 30.69
Other deposits 6.64 1.50
Income received in advance 25.11 23.84
Securities Transaction Tax Payable 120.24 82.05
Tax deducted at source - payable 10.44 10.69
Defaulters Committee Account 49.19 46.01
Deposits of Defaulters members - SEBI 0.13 0.12
Other liabilities 27.21 435.11 23.21 373.50
B : PROVISIONS
Leave encashment (Refer Note No. 1h (iv) ) 6.49 4.77
Wealth Tax (Net of advances) 1.23 1.17
Fringe Benefit Tax (Net of advances) – 0.08
Proposed dividend 94.50 90.00
Corporate dividend tax 15.33 117.55 14.95 110.97
TOTAL 552.66 484.47
64
SCHEDULES FORMING PART OF THE PROFIT & LOSS ACCOUNT

31.03.2011 31.03.2010
SCHEDULE 7 : OPERATIONAL EXPENSES RECOVERY

VSAT expenses recovery 24.51 27.24
TBTN expenses recovery 0.34 0.05
Others 0.80 1.07
TOTAL 25.65 28.36
SCHEDULE 8 : INTEREST INCOME

On Investments
-Short Term (TDS Rs.Nil ,Previous Year Rs 0.25 crore ) 4.45 1.00
(Including Taxfree Income Rs.Nil
Previous Year Rs.Nil )
-Long Term (TDS Rs.Nil, Previous Year Rs.Nil) 9.78 9.94
(Including Taxfree Income Rs 8.86 crores,
Previous Year Rs.8.03 crores)
On Bank Deposits (TDS Rs.10.24 crores, Previous
Year Rs.2.66 crores) 102.12 18.80
On Certificate of Deposits 5.26 0.07
On Inter Corporate Deposits (TDS Rs.0.24 crore,
Previous Year Rs.0.65 crore) 2.40 6.52
On Income Tax Refund 4.33 –
On Others (TDS Rs Nil, Previous year Rs. Nil) 1.09 0.88
TOTAL 129.43 37.21
SCHEDULE 9 : OTHER INVESTMENT INCOME

Profit/ (Loss) on sale/redemption of Long Term investments 0.86 34.65
Profit/(Loss) on sale/redemption of Short Term investments 54.84 67.28
Dividend on Investment:
Long Term :
from Subsidiary Companies 90.76 54.28
from Others 4.78 95.54 2.00 56.28
Short Term 55.42 96.81
TOTAL 206.66 255.02
SCHEDULE 10 : OTHER INCOME

Usage charges 14.35 8.65
NCFM Registration & Test enrolment Fees 23.35 28.83
Fines 6.33 4.42
Rent Income 49.42 48.47
Processing Fees -Listing 22.35 21.52
Strategic Co-operation fees 10.67 3.78
Data Centre Charges 24.25 2.42
Miscellaneous income 20.44 16.93
TOTAL 171.16 135.02
65

31.03.2011 31.03.2010
SCHEDULE 11 : OPERATING, ADMINISTRATION & OTHER EXPENSES

Rent 3.90 3.74
Transponder lease charges 4.27 5.00
Licence fee for operating VSAT network 4.15 4.49
Licence fees for Index 7.08 5.52
Lease line charges 7.97 7.45
Repairs & maintanence
- To buildings 1.96 1.75
- To computers, trading & telecommunication systems 70.17 68.06
- To others 4.29 3.28
Network Infrastructure Management charges 4.44 23.50
IT management and consultancy charges 18.29 14.41
Web Trading related expenses 24.50 16.94
Insurance 0.80 0.92
Rates & taxes 2.93 3.01
Postage, telephone and fax charges 1.76 1.68
Advertisement & publicity 6.09 4.20
Printing & stationary and consumables 3.73 2.98
Legal & Professional fees 16.24 10.34
Travelling & Conveyance expenses 3.94 3.63
Auditors' remuneration
- Audit fees 0.12 0.12
- Tax audit fees 0.03 0.02
- Taxation matters 0.06 0.05
- Certification matters 0.02 0.02
- Other matters 0.02 0.25 0.01 0.22
Electricity charges 9.79 6.87

Directors' sitting fees 0.10 0.08
Software expenses (Refer Note no. 1e) 7.90 10.71
Contribution to Investor protection fund trust 10.51 7.21
Investor education expenses 2.98 3.63
Compensation paid to Investors 0.14 0.11
Less : Transferred to Investor Compensation Reserve 0.14 – 0.11 –
SEBI Regulatory Fees 4.32 3.93

Donations 1.14 –
Bad debts/Sundry balance written off (Refer Note No. 1b(ii) ) 0.07 0.55
Loss on sale /discard of assets (Net) 0.10 0.12
Amortisation of Premium on Govt/Debt Securities (Refer Note No 1f ) 0.33 1.18
Other Expenses 18.75 13.76
TOTAL 242.75 229.16
SCHEDULE 12 : PAYMENTS TO AND
PROVISIONS FOR EMPLOYEES
Salaries and allowances (Refer Note No. 4) 57.79 47.86
Contribution to Provident and other funds (Refer Note No.1h) 4.54 3.30
Employees' welfare expenses 2.45 1.87
Less : Transferred to Staff Welfare Reserve 0.35 2.10 0.30 1.57
TOTAL 64.43 52.73
66
SCHEDULE 13 : NOTES TO ACCOUNTS
1. Significant Accounting Policies:

a) Basis of Accounting
The accounts are maintained on a mercantile basis in accordance with generally accepted accounting
principles.
b) Revenue Recognition
(i) Revenue is being recognised as and when there is reasonable certainty of ultimate realisation.
(ii) Provision for Doubtful debts and Bad Debts.
(a) In respect of members who have been declared as defaulter or expelled during the year
by the company all amounts remaining to be recovered till the date of being declared
defaulter or expelled are written off as bad debts. All subsequent recoveries are
accounted for in the year of receipt.
(b) Other overdue amounts are provided for as doubtful debts or are written off as bad
debts, if the same are considered doubtful/ irrecoverable in the opinion of the
management.
c) Fixed Assets
Fixed Assets are stated at historical cost less accumulated depreciation. Historical cost is inclusive
of freight, duties, taxes, cost of installation, interest upto the date of installation and other incidental
expenses incurred towards acquisition and installation of fixed assets.
d) Depreciation
(i) Depreciation on assets is provided, using the straight line method, pro-rata to the period of
use of assets, at the rates specified in Schedule XIV to the Companies Act, 1956 or based on
the estimated useful life of the assets, whichever is higher. Where there is a revision of the
estimated useful life of an asset, the unamortized depreciable amount is charged over the
revised remaining useful life.
The details of the estimated useful life of the assets where the depreciation is provided at the
rate higher than the rate specified in Schedule XIV of the Companies Act, 1956 are as follows:
Assets Estimated Useful Lives
Computer Systems - Office Automation 3 years
Computer Systems - Others 4 years
Telecommunication Systems 4 years
Trading & Clearing Systems 4 years
Electrical Equipments & Installations 15-21 years
Furniture & Fixtures 5-16 years
Office Equipments 4-21 years
Vehicles 3-5 years
Fixed assets whose aggregate cost is Rs. 5,000 or less are depreciated fully in the year of
acquisition.
67
(ii) Leasehold land is amortised over the period of lease.

(iii) Computer Software is amortized over a period of 4 years.
e) Computer software
(i) Cost of development and production software is capitalised,
(ii) Cost towards software development incurred till the time software is put to use is capitalised,
and
(iii) Standard packaged software products are written off in the year of purchase.
f) Investments
(i) Long term investments are considered as held till maturity and are valued at cost. Provision
is made for diminution in the value of investment, if any, other than temporary in nature.
(ii) Short term investments are valued at cost or fair value whichever is lower.
(iii) Premium paid/discount received at the time of acquisition of Government / Debt securities is
amortised over the residual period of its maturity.
(iv) The cost of investment includes acquisition charges such as brokerage, etc. Front-end discount
/ incentive earned in respect of direct subscription is adjusted towards the cost of investment.
Income on investments is accounted for on accrual basis.
g) Foreign currency transactions
(i) Transactions denominated in foreign currency are recorded at the exchange rate prevailing at
the time of the transaction.
(ii) Monetary items denominated in foreign currency at the year end are translated at the year
end rate except for those covered by forward cover contracts which are translated at contracted
rates.
(iii) Any income or expense on account of exchange difference between the date of transaction
and settlement or translation is recognised in the profit and loss account as income or expense.
The premium or discount on forward exchange contract are amortised and recognized in the
profit and loss account over the period of contract.
h) Employee Benefits
(i) Provident Fund: The Company has established National Stock Exchange of India Limited
Employee Provident Fund Trust to which both the employee and the employer make monthly
contribution equal to 12% of the employee's basic salary respectively. Company's contribution
to the provident fund for all employees, are charged to revenue. In case of any liability
arising due to short fall between the return from its investments and the administered interest
rate, the same is required to be provided for by the Company.
(ii) Superannuation: Superannuation benefits for employees designated as managers and above
are covered by group policies with the Life Insurance Corporation of India. Company's
contribution payable for the year is charged to revenue. There are no other obligations other
than the annual contribution payable.
(iii) Gratuity: The Company has maintained a Group Gratuity Cum Life Assurance Scheme with
the Life Insurance Corporation of India (LIC) towards which it annually contributes a sum
determined by LIC. The Company provides for the defined benefit with respect to gratuity
liability based on the present value of defined benefit obligation as reduced by the fair value
of plan assets as per the actuarial valuation calculation.
68
(iv) Other Long term benefits: Liability on account of other long term benefits such as Leave
encashment, medical reimbursement and Leave Travel Allowance is made on the basis of
actuarial valuation at the end of the year.
(v) Short term employee benefits are charged to revenue in the year in which the related service
is rendered.
i) Taxation : Tax expense for the year, comprising current tax and deferred tax is included in determining
the net profit for the year.
A provision is made for the current tax based on tax liability computed in accordance with relevant
tax rates and tax laws. A provision is made for deferred tax for all timing differences arising between
taxable income and accounting income at currently enacted tax rates.
Deferred tax assets are recognised only if there is a reasonable certainty that they will be realised
and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.
2. Contingent liability:
(i) Estimated amount of contracts remaining to be executed on capital account (net of advances) and
not provided for Rs.14.10 Crores (Previous year : Rs. 23.22 Crores).
(ii) On account of bank guarantees: Rs.5.00 Crores (Previous year : Rs. 5.27 Crores).
(iii) Claims against the company not acknowledged as debts: Rs. 5.80 Crores (Previous Year : Rs. 6.53 Crores)
(iv) A suit has been filed against the Company for damages / compensation along with interest thereon
and the same has been disputed by the Company. As per the legal opinion received, the possibility
of the claim being awarded against the Company is remote.
(v) On account of disputed demand of Employees State Insurance Corporation: Rs. Nil (Previous
Year: Rs. 0.10 Crore)
(vi) On account of disputed demand of Income Tax: Rs. 58.52 Crores (Previous Year: Rs. 46.62 Crores),
disputed demand of Fringe Benefit Tax: Rs.2.21 Crores (Previous Year: Rs. 1.81 Crores) and disputed
demand of Wealth Tax: Rs.1.94 Crores (Previous Year: 1.94 Crores). Wealth Tax liability includes
Rs.1.86 Crores (Previous Year: Rs.1.86 Crores) on account of Tax Department appeals pending
disposal before the Bombay High Court. On account of disputed demand of Service Tax: Rs. 28.10
crores (Previous Year: Rs. Nil) alongwith interest and penalty, for the period from April, 2004 to
March, 2009.
(vii) On account of disputed demand of Securities Transaction Tax : Rs.14.69 Crores (Previous Year :
Rs. 13.15 Crores)
3. In the opinion of the Board, current assets, loans and advances are approximately of the value stated, if
realised in the ordinary course of business.
4. Managerial Remuneration :
Particulars (Rs. in Crores)
Current year Previous year
Salary and allowances 9.68 8.84
Compensation to Chairman 0.25 0.04
Contribution to Provident Fund
and other Funds 0.79 0.65
Perquisites in cash or in kind 1.78 1.52
69
5. Loans to employees includes housing loan to Directors amounting to Rs. 0.02 Crore (Previous Year:Rs.0.03
Crore), maximum amount outstanding at any time during the year Rs. 0.03 Crore (Previous Year : Rs.0.04
Crore).
6. a. Expenditure in foreign currency:
(i) Travelling expenses Rs. 0.38 Crore (Previous Year : Rs. 0.38 Crore)
(ii) Professional and technical fees Rs. 2.79 Crores (Previous Year : Rs. 2.17 Crores)
(iii) Others Rs. 5.94 Crores (Previous Year : Rs. 3.51 Crores)
b. Earnings in foreign exchange : Rs. 11.01 Crores (Previous Year : Rs. 3.86 Crores)
7. C.I.F. value of imports in respect of:
Capital goods Rs. 11.45 Crores (Previous year : Rs. 19.98 Crores)
8. Deposits from trading members include Rs. 5.92 Crores (Previous year : Rs. 4.89 Crores) from trading
members who have applied for surrender of their trading membership which have been conditionally
accepted by the company. Such deposits are refundable to them on fulfilment of conditions of surrender.
9. Statement of Short Term Investment at the end of the year is given below.
Sr. Particulars Maturity Face As at 31.03.2011 As at 31.03.2010

No. Date Value
Number of Rs. in Number of Rs. in
Units Crores Units Crores
Unquoted :
A) Commercial Paper
1 Small Industrial Development
Bank of India 09-Apr-10 100000000 – 200 9.98
2 Small Industrial Development
Bank of India 09-Apr-10 150000000 – 300 14.97
3 L&T Finance Company Limited 27-May-11 100000000 200 9.50
4 HDFC Limited 15-Jul-11 150000000 300 14.13
5 Tata Motors Finance Limited 12-Oct-11 100000000 200 9.23
6 Aditya Birla Finance Limited 06-Jan-12 100000000 200 9.10
7 L&T Infrastructure Finance
Company Limited 29-Jul-11 50000000 100 4.77
8 L&T Infrastructure Finance
Company Limited 05-Aug-11 100000000 200 9.52
9 Aditya Birla Finance Limited 10-Aug-11 100000000 200 9.51
10 Blue Star Limited 07-Apr-11 100000000 200 9.92
11 Tata Motors Limited 04-Apr-11 100000000 200 9.96
Total (A) 85.64 24.95
70

No. Date Value
B) Mutual Funds :
i) Liquid Growth Schemes
1 L&T Liquid Inst. Plus -
Cumulative – 32,341.6690 0.05
2 L&T Liq Sup Inst. Plan -
Cumulative – 26,319.5500 0.03
3 DWS Insta Cash Plus Fund -
Institutional Plan Growth – 1,76,280.6990 0.20
4 DSP Blackrock Liquidity Fund -
Institutional Plan - Growth – 100.0630 0.01
5 HDFC Cash Management Fund -
Saving Plan Growth – 1,85,560.2090 0.29
6 HSBC Cash Fund- Institutional
Plus - Growth – 70,904.0080 0.08
7 IDFC Savings Advantage Fund -
Plan A - Growth – 8,952.8950 0.96
8 ING Liquid Fund Super
Institutional - Growth Option – 93,722.9580 0.11
9 JM High Liquidity Fund -
Super Institutional }
Plan - Growth – 1,22,971.9810 0.15
10 Kotak Liquid (Institutional
Premium) - Growth – 2,50,984.1839 0.35
11 Principal Cash Management
Fund - Liquid Option - Instl.
Plan - Growth Plan – 5,326.9790 0.01
12 Principal Cash Management
Fund - Liquid Option - Instl.
Prem. Plan - Growth – 98,827.6610 0.11
13 Reliance Liquidity Fund -
Growth Option – 2,04,444.0290 0.21
14 TATA Liquid Super High
Inv.Fund - Appreciation – 948.5799 0.13
15 Templeton India Treasury
Management Account -
Institutional Plan Growth – 5,611.1264 0.66
16 UTI Liquid Cash Plan
Institutional - Growth Option – 2,183.0029 0.26
Total (i) – 3.61
71

No. Date Value
ii) Ultra Short Term Debt Fund
Growth Schemes
1 Baroda Pioneer Treasury
Advantage Fund - Institutional
Growth Plan – 9,69,88,074.4810 100.00
2 Canara Robeco Treasury
Advantage Super Instt
Growth Fund – 3,62,10,892.2363 50.00
3 DWS Ultra Short Term Fund -
Institutional Growth – 4,64,82,657.3210 50.00
4 HDFC Cash Management
Fund - Treasury Advantage
Plan - Wholesale - Growth – 2,49,29,822.5500 50.00
5 ICICI Prudential Ultra Short
Term Plan Super
Premium Growth – 4,87,28,194.1330 50.00
6 JM Money Manager Fund
Super Plus Plan - Growth – 3,87,59,089.0100 50.00
7 Kotak Floater Long Term -
Growth – 6,88,35,230.6280 100.00
8 Reliance Medium Term Fund-
Retail Plan - Growth Plan -
Growth Option – 5,27,16,916.2910 100.00
9 Religare Ultra Short Term
Fund - Institutional Growth – 3,96,94,195.9150 50.00
10 TATA Floater Fund - Growth – 3,66,46,682.0130 50.00
11 Templeton India Ultra Short
Bond Fund Super Institutional
Plan - Growth – 8,49,14,539.3840 100.00
Total (ii) – 750.00
iii) Ultra Short Term Debt Fund

Dividend Schemes
1 Baroda Pioneer Treasury
Advantage Fund - Institutional
Daily Dividend Plan – 3,07,77,047.4908 30.81
2 Birla Sun Life Savings Fund -
Instl. - Daily Dividend -
Reinvestment – 8,20,072.0587 0.82
3 Canara Robeco Treasury
Advantage Super Instt Daily
Div Reinv Fund – 8,41,17,871.2681 104.37
4 DWS Cash Opportunities
Fund - Institutional Weekly
Dividend - Reinvest – 14,94,51,609.8129 150.63
72

No. Date Value
5 Fortis Money Plus Institutional
Plan Daily Dividend – 21,42,51,529.7194 214.32
6 HDFC Cash Management
Fund - Treasury Advantage
Plan - Wholesale -
Daily Dividend – 8,94,75,819.7616 89.76
7 ICICI Prudential Ultra Short
Term Plan Super Premium
Weekly Dividend – 14,02,37,472.0823 140.69
8 IDFC Money Manager Fund -
TP - Super Inst Plan C -
Daily Dividend – 15,66,04,108.3793 156.63
9 JM Money Manager Fund
Super Plus Plan -
Daily Dividend – 18,23,55,316.5466 182.45
10 JP Morgan India Treasury
Fund - Super Inst. Daily Div
Plan - Reinvest – 2,47,26,256.7749 24.75
11 Kotak Floater Long Term -
Daily Dividend – 10,32,52,674.7719 104.08
12 Reliance Money Manager
Fund-Institutional Option -
Daily Dividend Plan – 1,47,303.6329 14.75
13 Reliance Medium Term Fund-
Daily Dividend Plan – 4,18,33,636.4103 71.52
14 Religare Ultra Short Term
Fund - Institutional
Daily Dividend – 50,00,448.0379 5.01
15 Tata Floater Fund -
Daily Dividend – 11,62,51,926.8349 116.66
16 Taurus Ultra Short Term
Bond Fund - Super Insti Daily
Dividend Plan – 7,86,362.0821 78.73
17 Templeton Floating Rate
Income Fund Long Term
Super Institutional -
Daily Dividend – 15,37,05,751.1407 153.85
Total (iii) – 1,639.83
iv) Fixed Maturity Plan

1 Birla Sun Life Interval
Income Fund - INSTL -
Quarterly - Series 1 - Dividend 25-May-10 – 50,00,414.6910 5.00
2 Canara Robeco Interval
Series 2 - Quarterly Plan 2 -
Inst Dividend Fund 10-Jun-10 – 50,00,426.8500 5.00
73

No. Date Value
3 Kotak Quarterly Interval Plan
Series 4 - Dividend 03-Jun-10 – 50,00,412.5740 5.00
4 Kotak Quarterly Interval
Plan Series 3 - Dividend 20-May-10 – 50,20,799.3507 5.02
5 Kotak Quarterly Interval
Plan Series 8 - Dividevd 10-Jun-10 – 55,23,878.3470 5.53
6 Kotak Quarterly Interval Plan
Series 7 - Dividend 25-May-10 – 50,21,003.0629 5.02
7 Reliance Quarterly Interval
Fund - Series III - Institutional
Dividend Plan 07-Jun-10 – 49,98,789.9000 5.00
8 TATA Fixed Income Portfolio
Fund Scheme C3 Inst Monthly
Dividend 24-May-10 – 50,18,432.6639 5.02
9 UTI Fixed Income Interval
Fund-Quarterly Plan Series-III-
Institutional Dividend Plan-
Reinvestment 24-May-10 – 50,00,393.2900 5.00
10 ICICI Prudential Interval Fund
Half Yearly Interval Plan -
I Institutional Div 12-Apr-11 51,36,959.2420 5.13 – –
11 Kotak FMP 6M Series 10 -
Dividend 02-May-11 50,00,000.0000 5.00 – –
Total (iv) 10.13 45.59
v) Liquid Dividend Plans

1 Canara Robeco Liquid Super
Inst Daily Div Reinvest Fund – 464.6516 0
2 DSP BlackRock Liquidity
Fund-Institutional Plan-Daily
Dividend-Reinvestment – 8.6080 0
3 Kotak Floater - Short Term -
Daily Dividend 1,18,65,229.1777 12.00 -
4 Reliance Liquid Fund-Treasury
Plan-Institutional Option-
Daily Dividend 19,63,224.8994 3.00 –
Total (v) 15.00 0
Total (B) 25.13 2,439.03
Grand total (A+B) 110.77 2,463.98
74
10. Statement of investments purchased and sold/redeemed during the year at cost is given below :
Sr. Particulars No. of units Cost
No. Rs. in Crores
Commercial Paper
1 Raymond Limited 300 14.73
2 Tata Capital Limited 200 9.64
3 L&T Infrastructure Finance Company Limited 200 9.63
4 HCL Infosystems Limited 200 9.81
5 Hindustan Construction Company Limited 200 9.81
6 Aditya Birla Finance Limited 200 9.62
10 Blue Star Limited 200 9.79
Total Commercial Paper 131.89
Mutual Funds :
1 Axis Liquid Fund - Institutional - Daily Dividend 1647446.8133 164.75
2 Axis Treasury Advantage Fund - Institutional Daily Dividend 122612.2121 12.26
3 Baroda Pioneer Liquid Fund - Institutional Daily Dividend Plan 200993022.6607 201.12
4 Baroda Pioneer Treasury Advantage Fund - Institutional Daily Dividend Plan 202208230.2300 202.39
5 Birla Sun Life Cash Manager - IP - Daily Dividend - Reinvestment 113425926.7252 113.46
6 Birla Sun Life Cash Plus - Instl. Prem Plan - Daily Dividend - Reinvestment 569236596.8816 570.35
7 Birla Sun Life Interval Income Fund - Instl - Quarterly - Series 1 - Dividend 5135151.6710 5.14
8 Birla Sun Life Quarterly Interval - Series 4 - Dividend - Reinvestment 5073817.8780 5.07
9 Birla Sun Life Savings Fund - Instl. - Daily Dividend - Reinvestment 154112475.1693 154.22
10 Birla Sun Life Short Term Fmp - Series 1 - Dividend 5117800.0000 5.12
11 Birla Sun Life Short Term Fmp Series 3 - Dividend 5088542.5000 5.09
12 BNP Paribas Overnight Fund - Institutional - Daily Dividend 55016336.4524 55.03
13 Canara Robeco Interval Series 2 - Quarterly Plan 2 - Inst Dividend Fund 62676.7650 0.06
14 Canara Robeco Liquid Super Inst Daily Div Reinvest Fund 101285400.2229 101.84
15 Canara Robeco Treasury Advantage Super Instt Daily Div Reinv Fund 117120891.0839 145.31
16 DSP Black Rock FMP - 3M - Series 21 - Dividend 5073765.0000 5.07
20 DSP Blackrock Liquidity Fund-Institutional Plan-Daily Dividend-Reinvestment 1123680.3014 112.40
21 DSP BLACKROCK Money Manager Fund - Institutional Plan - Daily Dividend 825496.9222 82.62
22 DWS Cash Opportunities Fund - Institutional Plan Weekly Dividend 87073447.2267 87.79
23 DWS Insta Cash Plus Fund-Super Institutional-Daily Dividend-Reinvest 258864771.8537 259.65
24 DWS Ultra Short Term Fund - Institutional Daily Dividend 173480766.0952 173.79
25 Fidelity Cash Fund - Super IP - Daily Dividend 20257284.8478 20.71
26 Fidelity FMP Series 2 - Plan A - Dividend 5059318.2900 5.06
27 Fidelity FMP Series 3 - Plan B - Dividend 5073210.8720 5.07
28 Fidelity FMP Series 3 - Plan C - Dividend 5792079.1562 5.79
75

No. Rs. in Crores
29 Fidelity FMP Series 4 - Plan A - Dividend 5083153.0561 5.08
30 Fortis Money Plus Institutional Plan Daily Dividend 3997384.1204 4.00
31 HDFC Cash Management Fund - Treasury Advantage Plan - Wholesale - Dly Div 1321566.4128 1.33
32 HDFC Cash Management Fund Savings Plan-Daily Dividend-Reinvestment 18870272.9053 20.07
33 HDFC Liquid Fund Premium Plan - Dividend - Daily Reinvest 44029311.5572 53.98
34 HDFC Quarterly Interval Fund - Plan A Retail Dividend Reinvestment 5063275.2102 5.06
35 HSBC Cash Fund Institutional Plus-Daily Dividend-Reinvestment 21219505.7310 21.23
36 HSBC Floating Rate - Long Term Plan - Institutional Option - Weekly Dividend 18912208.9431 21.25
37 ICICI Prudential Institutional Liquid Plan - Super Institutional Daily Div 23879739.6021 238.85
38 ICICI Prudential Interval Fund I Quarterly Interval Plan Institutional Dividend 5080700.0000 5.08
39 ICICI Prudential Interval Fund II Quarterly Interval Plan A Inst Dividend 5077415.5140 5.08
40 ICICI Prudential Interval Fund II Quarterly Interval Plan B Institutional Div 5080217.4610 5.08
41 ICICI Prudential Interval Fund II Quarterly Interval Plan C - Institutional Div 5084580.2539 5.08
42 ICICI Prudential Interval Fund II Quarterly Interval Plan D Institutional Div 10161671.3390 10.16
43 ICICI Prudential Interval Fund III - Quarterly Interval Plan - Inst Dividend 5077061.5250 5.08
44 ICICI Prudential Interval Fund IV Quarterly Interval Plan B Inst Div - Reinvest 5066677.7460 5.07
45 ICICI Prudential Ultra Short Term Plan Super Premium Weekly Dividend 17848959.8160 17.93
46 IDBI Liquid Fund - Daily Dividend - Reinvestment 433346.8588 43.33
47 IDBI Ultra Short Term Fund - Daily Dividend - Reinvestment 35315474.6590 35.32
48 IDFC Cash Fund - Plan C - Super I P - Daily Div 180217643.2210 180.26
49 IDFC Fixed Maturity Quarterly Series-59 Dividend 5075550.0000 5.08
50 IDFC Fixed Maturity Quarterly Series-60 Dividend 5082150.0000 5.08
51 IDFC Money Manager Fund - Investment Plan - Inst Plan B - Daily Dividend 151586792.4629 151.81
52 IDFC Money Manager Fund - TP - Super Inst Plan C - Daily Div 709449.2476 0.71
53 JM High Liquidity Fund- Super Institutional Plan-Daily Dividend-Reinv 105632158.0991 105.81
54 JM Money Manager Fund Super Plus Plan - Daily Dividend 2100038.4805 2.10
55 JPMorgan India Liquid Fund - Super Inst.Daily Dividend Plan - Reinvest 326112140.6322 326.37
56 JPmorgan India Treasury Fund - Super Inst. Daily Div Plan - Reinvest 176347314.2717 176.50
57 Kotak Floater - Short Term - Daily Dividend 48131500.9491 48.69
58 Kotak Floater Long Term - Daily Dividend 247766393.5073 249.74
59 Kotak FMP 6M Series 9 - Dividend 5152381.1900 5.15
60 Kotak Liquid Institutional Premium Plan - Dividend - Daily 331746237.7195 405.66
61 Kotak Quarterly Interval Plan Series 10 - Dividend 5074032.9900 5.07
69 Principal Cash Management Fund-Dividend Reinvestment Daily 15000965.2377 15.00
70 Principal PNB Fixed Maturity Plan(FMP-61)91 Days - Series XXIII- Sep 10 Reg Div 5073744.6940 5.07
71 Principal PNB Fixed Maturity Plan(FMP-63)91 Days - Series XXIV- Oct 10 Reg Div 5073723.8530 5.07
72 Principal PNB Fixed Maturity Plan(FMP-64)91 Days - Series XXV- Oct 10 Reg Div 5078758.8520 5.08
73 Reliance Interval Fund - Quarterly Plan - Series I-Institutional Div Reinvest 5069229.3051 5.07
74 Reliance Liquid Fund-Treasury Plan-Institutional Option-Daily Dividend 127840048.8229 195.43
76

No. Rs. in Crores
75 Reliance Liquidity Fund -Daily Dividend Reinvestment 507746103.3170 508.01
76 Reliance Medium Term Fund-Daily Dividend Plan 44686863.8132 76.40
77 Reliance Money Manager Fund-Institutional Option - Daily Dividend Plan 1364588.3369 136.65
78 Reliance Quarterly Interval Fund - Series III - Institutional Dividend Plan 5131419.6064 5.13
79 Religare Fixed Maturity Plan Series IV - Plan A (3 Months) - Dividend 5079247.1950 5.08
80 Religare Liquid Fund - Super Institutional Daily Dividend 222623421.9239 224.98
81 Religare Ultra Short Term Fund - Institutional Daily Dividend 173030000.4817 173.33
82 SBI Debt Fund Series - 90 Days - 34 - Dividend 5072927.0080 5.07
83 SBI Debt Fund Series - 90 Days - 35 - Dividend 5077050.0000 5.08
84 SBI Magnum Insta Cash Fund - Daily Dividned Option 174980071.3897 293.10
85 SBI Premier Liquid Fund - Super Institutional - Daily Dividend 125899712.1636 126.31
86 SBI-SHF- Ultra Short Term Fund - Institutional Plan - Daily Dividend 143899756.6086 143.99
87 Sundaram Money Fund-Super Institutional -Dividend-Daily -Reinvestment 214593981.4906 216.64
88 Sundaram Ultra Short Term Fund Super Inst. Daily Dividend 78353700.3609 78.64
89 Tata Fixed Income Portfolio Fund Scheme B2 - Institutional - Qtly Div Reinvst 4993458.5690 5.00
90 Tata Fixed Income Portfolio Fund Scheme C3 Inst Monthly 34995.9790 0.04
91 Tata Floater Fund - Daily Dividend 148573471.7505 149.10
92 Tata Liquid Fund - SHIP - Dividend - Daily 1906228.7970 212.45
93 Taurus Liquid Fund - Super IP - Daily Dividend - Reinvestment 2383790.2720 238.38
94 Taurus Ultra Short Bond Fund - Super Insti Daily Dividend Plan 1165389.1240 116.72
95 Templeton Floating Rate Income Fund Super Inst Option - Daily Dividend Reinvest 148946409.6771 149.22
96 Templeton India TR Mgt Account- Super Inst Plan-Daily Div 5559423.1174 556.32
97 Templeton India Ultra Short Bond Fund Super Inst Plan - Daily Dividend Reinvest 199285344.0632 199.52
98 UTI- Fixed Income Interval Fund - Series II - Qtly Interval Plan V - Inst Div Pl 5082333.0450 5.08
99 UTI Fixed Income Interval Fund-Quarterly Interval Plan Series-I - Inst Dividend 5076113.1930 5.08
100 UTI Fixed Income Interval Fund-Quarterly Plan Series-III-Inst Div Plan-Reinvest 5145108.3200 5.15
101 UTI Liquid Cash Plan Institutional - Daily Income Option- 911230.4803 92.89
102 UTI Money Market Fund - Institutional Plan - Daily Dividend - Reinvestment 446374.9741 44.79
103 UTI Treasury Advantage Fund - Institutional Plan (Dly Div ) - Reinvest 396303.0871 39.64
Total Mutual Fund 6,36,71,61,951.63 8,764.72
Grand Total 8,896.61
11. Sundry creditors includes Rs. 0.19 Crore (Previous Year: Rs. 0.32 Crore) due to Micro, Small & Medium
Enterprises. Total outstanding dues to Micro, Small & Medium Enterprises have been determined to the
extent such parties have been identified on the basis of information available with the Company.
12. Disclosure under Revised Accounting Standard 15 on Employee Benefits:
(i) Defined Contribution Plan: Company's contribution towards superannuation amounting to Rs. 1.16
Crore (Previous Year : Rs.0.88 Crore) has been charged to Profit & Loss account.
(ii) Defined Benefit Plan:
(a) Provident Fund: Company's contribution towards Provident Fund amounting to Rs. 1.65
Crores (Previous Year: Rs. 1.28 Crores) has been charged to Profit & Loss account. As per
Implementation Guidance on AS 15 (Revised 2005) Employee Benefits issued by the
Accounting Standard Board (ASB) of the Institute of Chartered Accountants of India, benefit
involving employer established provident funds which require interest short fall to be
recompensed are to be considered as defined benefit plans. Pending issuance of the guidance
77
note from the Actuarial Society of India, the Company is unable to reliably measure provident
fund liabilities and exhibit the related information.
(b) Gratuity: Company has charged the Gratuity expense to Profit & Loss account based on the
actuarial valuation of gratuity liability at the end of the year. The projected unit credit method
used to show the position as at March 31, 2011 is as under.
i) Assumptions:
Current Previous
Year Year
Discount Rate 8.25% 8.00%
Rate of Return on Plan Assets 8.00% 8.00%
Salary Escalation 5.00% 5.00%
Attrition Rate 2.00% 2.00%
ii) Table showing change in benefit obligation:

Current Year Previous Year
Rs. in Crores Rs. in Crores
Liability at the beginning of the year 6.11 4.65
Interest cost 0.52 0.41
Current Service Cost 0.65 0.64
Benefits Paid (0.40) (0.33)
Actuarial (gains) / loss on obligations 1.63 0.74
Liability at the end of the year 8.51 6.11
iii) Tables of Fair value of plan assets:

Fair Value of plan assets at the beginning of the year 4.33 3.27
Expected return on plan assets 0.40 0.33
Contributions 0.92 1.01
Benefits paid (0.40) (0.33)
Actuarial gain / (loss) on Plan Assets 0.07 0.05
Fair Value of plan assets at the end of the year 5.32 4.33
Total Actuarial Gain/(Loss) to be recognised 1.56 0.69
iv) Actual Return on Plan Assets:

Expected return on plan assets 0.40 0.33
Acturial gain/(loss) on plan assets 0.07 0.05
Actual Return on plan assets 0.47 0.38
78
v) Amount recognised in the balance sheet

Liability as at the end of the year 5.32 6.11
Fair value of plan assets as at the end of the year 8.51 4.33
Net liability / (asset) disclosed in the Balance Sheet 3.19 1.78
vi) Expenses recognised in the profit & loss account
Current Service cost 0.65 0.64
Interest Cost 0.52 0.41
Expected return on plan assets (0.40) (0.33)
Actuarial (Gain) or Loss 1.56 0.69
Expenses recognised in the profit & loss account 2.33 1.41
vii) Balance Sheet Reconciliation

Opening Net Liability 1.78 1.38
Expense as above 2.33 1.41
Employers Contribution (0.92) (1.01)
Amount recognised in the Balance Sheet 3.19 1.78
viii) Category of Assets

Insurer Managed Funds 5.32 4.33
Total 5.32 4.33
ix) Experience Adjustment

On Plan Liability (Gain) / Loss 1.82 0.74
On Plan asset (Loss) / Gain 0.07 0.05
13. During the year, the company has reviewed its fixed assets for impairment loss as required by Accounting
Standards 28 - "Impairment of Assets". In the opinion of management no provision for impairment loss is
considered necessary. Certain assets having gross book value of Rs.4.12 Crores (Previous Year: Rs. 80.12
Crores) and net book value of Rs. Nil (Previous Year : Rs.0.03 Crores) have become obsolete and therefore
have been earmarked for disposal or scrap. The net realisable value of the obsolete assets cannot be
estimated and therefore taken as Rs. Nil.
79
14. In the opinion of the management, as the Company's operations comprise of only facilitating trading in
securities and the activities incidental thereto within India, the disclosures required in terms of Accounting
Standard 17 - "Segment Reporting" issued by the Institute of Chartered Accountants of India are not
applicable.
15. In compliance with Accounting Standard 18 - "Related Party Disclosures" issued by the Institute of Chartered
Accountants of India, the required disclosures are given in the table below:
A) Names of the related parties and relationship
Sr. Related Party Nature of Relationship

No.
1 National Securities Clearing Corporation Limited Subsidiary Company
2 NSE.IT Limited Subsidiary Company
3 DotEx International Limited Subsidiary Company
4 India Index Services & Products Limited Subsidiary Company
5 National Commodity Clearing Limited Subsidiary Company
6 NSE Infotech Services Limited Subsidiary Company
7 NSE.IT (UK) Limited Subsidiary Company
8 NSE.IT (US) Inc. Subsidiary Company
9 Power Exchange India Limited Joint Venture
10 National Securities Depository Limited Associate Company
11 (1) Dr. Vijay L. Kelkar - Chairman Key Management Personnel
(2) Mr. Ravi Narain - Managing Director
(3) Ms. Chitra Ramkrishna - Jt. Managing Director
B) Details of transactions (including service tax wherever levied) with related parties are as follows:
(Rs. in Crores)
Name of the Year ended Year ended
Nature of Transactions
Related Party 31.03.2011 31.03.2010
National Securities • Usage charges received 6.34 5.24
Clearing • Space and Infrastructure usage charges received 6.08 2.42
Corporation Ltd. • Reimbursement received for expenses on staff on deputation 13.68 10.31
• Reimbursement received for other expenses incurred 20.41 18.30
• Dividend received 85.50 51.75
• Clearing and Settlement charges paid 132.24 105.79
• Closing balance (Credit)/Debit 9.45 (14.92)
• Investment in Equity Share Capital 5.63 5.63
NSE.IT Ltd. • Reimbursement received for other expenses incurred 0.01 0.01
• Software license procured 0.51 0.02
• Software Development Charges paid 0.70 0.33
• Repairs and maintenance - Computer trading,
Telecommunication systems 17.56 18.06
80

Related Party 31.03.2011 31.03.2010
• STP charges received 0.01 0.01
• Rent received 0.22 0.24
• NCFM Test expenses paid 1.68 –
• CTCL Empanelment charges received 0.03 –
• IT Mgt. & Consultancy charges paid 8.21 1.18
• Installation commissioning & warranty charges
for trading system 0.26 0.49
• Loan given – 4.00
• Receipt towards repayment of loan – 4.00
• Interest received on loan – 0.21
• Sale of Asset – 0.01
• Closing balance (Credit)/Debit (1.75) (1.47)
• Investment in Equity Share Capital 10.00 10.00
DotEx • Space and Infrastructure usage charges received 1.01 0.01
International • Reimbursement received for expenses on staff on deputation 2.35 1.24
Ltd. • Reimbursement for expenses incurred 11.41 7.21
• CTCL Empanelment charges received 0.03 0.01
• Amount received towards revenue sharing on account
of info feed services 7.94 6.90
• Web trading related expenses 27.02 18.69
Closing balance (Credit)/Debit (15.99) (8.02)
Investment in Equity Share Capital 0.69 0.69
India Index • License fees paid 7.80 6.08
Services & • Space and Infrastructure usage charges received 0.35 0.07
Products Ltd. • Reimbursement received for expenses on staff on deputation 1.01 0.53
Closing balance (Credit)/Debit (0.06) 0.72
Investment in Equity Share Capital (Note no.19(i)) 0.67 0.67
National • Space and Infrastructure usage charges received 0.63 1.60
Commodity • Reimbursement received for expenses on staff on deputation 1.63 1.39
Clearing Ltd. • Reimbursement received for other expenses incurred 0.80 0.90
Closing balance (Credit)/Debit 1.07 1.87
NSE Infotech • IT Mgt. & Consultancy charges paid 17.14 16.65
Services Ltd. • Repairs and maintenance - Computer trading ,
Telecommunication systems 17.66 17.02
• Rent received 0.21 0.20
• Reimbursement for expenses incurred 8.05 8.29
81

Related Party 31.03.2011 31.03.2010
• Advance paid 8.60 4.00
Closing balance (Credit)/Debit (2.19) (1.18)
Power Exchange • Space and Infrastructure usage charges received 2.95 2.81
India Ltd. • Reimbursement received for expenses on staff on deputation 0.04 0.21
• Security Deposit received 0.25 –
• Investment in equity shares 0.50 9.97
Closing balance (Credit)/Debit (0.18) 0.79
Investment in Equity Share Capital(Note no.19(ii)) 13.00 12.50
National Securities • Reimbursement received for expenses incurred 0.02 0.02
Depository Limited • Reimbursement paid for other expenses incurred 0.06 –
• Investment in equity shares – 84.40
Closing balance (Credit)/Debit 0.00 0.03
Key Management • Gross remuneration including allowances,
Personnel non-cash perquisites and contribution to
Provident Fund and Superannuation Fund etc. 12.50 11.05
• Housing Loan - Closing Balance 0.02 0.03
• Interest received on Housing Loan
[Rs. 5991/- (Prev Year : Rs.7990/-)] 0.00 0.00
16. In accordance with Accounting Standard 19 - "Leases" issued by the Institute of Chartered Accountants of
India, the details of obligation on long term non - cancellable operating lease in respect of certain vehicles
and office premises taken by the Company are as follows.
(Rs. in Crores)
Lease obligations Year ended Year ended
31.03.2011 31.03.2010
Total of future minimum lease payments
- Lease rentals paid during the year 3.09 2.99
- Not later than one year 3.23 3.00
- Later than one year and not later than five years 14.77 14.19
- Later than five years 3.43 7.20
The terms of the Leases range from 3 years to 10 years.
82
17. In accordance with Accounting Standard 20 - "Earning per Share" issued by the Institute of Chartered
Accountants of India, the required disclosure is given below.
Earning per share
Year ended Year ended
31.03.2011 31.03.2010
Net Profit attributable to Shareholders (Rs. In Crores) 637.51 613.77
Weighted Average number of equity shares issued (No. in Crores) 4.50 4.50
Basic earnings per share of Rs. 10/- each (in Rs.) 141.67 136.39
The Company does not have any outstanding dilutive potential equity shares. Consequently, the basic and
diluted earning per share of the Company remain the same.
18. In accordance with the Accounting Standard 22 - "Accounting for Taxes on Income", the break up of
deferred tax assets / liabilities is as follows:
(Rs. in Crores)
As at As at
31st March 2011 31st March 2010
Deferred Tax Liabilities
Related to depreciation and other capital expenditure 16.67 17.71
Related to other items 0.11 0.11
Total (A) 16.78 17.82
Less: Deferred Tax Assets
Related to disallowance u/s 43B 4.02 3.66
Related to other items – –
Total (B) 4.02 3.66
Net Deferred Tax Liability (A-B) 12.76 14.16
19. i) The Company has a Joint Venture interest in India Index Services & Products Ltd.(IISPL) which is
a jointly controlled entity and is incorporated in India. The company has a 51% ownership interest
in the joint venture. As per Accounting Standard 27 - "Financial Reporting of Interests in the Joint
Ventures", the aggregate amounts related to Company's interest in the joint venture are as follows.
(Rs. in Crores)
Particulars As at As at
31-March-2011 31-March-2010
Assets 19.33 14.29
Reserve & Surplus 17.95 11.91
Liabilities 0.72 1.71
Income 10.70 7.74
Expenses 4.66 3.18
Dividend received 0.46 0.33
Contingent Liability 0.99 0.29
The Company has no capital commitments in relation to its interest in Joint Ventures.
83
ii) The Company has a Joint Venture interest in Power Exchange India Ltd.(PXIL) which is a jointly
controlled entity and is incorporated in India. The company has a 32.50% (Previous Year 36.40%)
ownership interest in the joint venture. As per Accounting Standard 27 - "Financial Reporting of
Interests in the Joint Ventures", the aggregate amounts related to Company's interest in the joint
venture based on un-audited accounts are as follows.
(Rs. in Crores)
31-March-2011 31-March-2010
Assets 11.71 14.05
Reserve & Surplus (10.13) (6.56)
Liabilities 8.84 8.11
Income 3.03 1.44
Expenses 7.30 6.24
Dividend received – –
Contingent Liability – 0.19
The Company has no capital commitments in relation to its interest in Joint Ventures.
20. Previous years' figures are regrouped, reclassified and rearranged wherever necessary.
21. Information with regard to other matters specified in clauses 3, 4C and 4D of the Part II of Schedule VI to
the Companies Act, 1956 are either Nil or not applicable to the Company.
For KHANDELWAL JAIN & CO.

NARENDRA JAIN
Partner
Place : Mumbai Y. H. MALEGAM J. RAVICHANDRAN

Date : April 29, 2011 Director Director (F&L) & Company Secretary
84
CASHFLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2011
2010-2011 2009-2010
A) CASHFLOW FROM OPERATING ACTIVITIES

NET PROFIT BEFORE TAX 859.31 811.49
Add : Adjustments for :
- Depreciation 91.35 76.75
- Amortisation of Premium on Govt/Debt Securities 0.33 1.18
- Bad debts/Sundry balances written off 0.07 0.55
- Loss on sale /discard of assets (Net) 0.10 0.12
Less : Adjustments for :
- Sundry Balances written back (0.11) –
- Staff welfare expenses debited to staff welfare Reserve (0.35) (0.30)
- Compensation paid to Investors debited to Investor compensation reserve (0.14) (0.11)
- Interest income on short term investments (4.45) (1.00)
- Interest income on long term investment (9.78) (9.94)
- Interest income on Bank deposit (102.12) (18.80)
- Interest income on Certificate of deposits (5.26) (0.07)
- Interest income on Inter Corporate deposits (2.40) (6.52)
- Interest on Income tax refund (4.33) –
- (Profit)/Loss on sale/redemption of long term investments (0.86) (34.65)
- (Profit)/Loss on sale/redemption of short term investments (54.84) (67.28)
- Dividend on investment
Long Term (95.54) (56.28)
Short Term (55.42) (96.81)
OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES 615.56 598.33

Adjustments for :
- Sundry Debtors (35.00) (25.34)
- Loans & Advances (11.84) 0.60
- Current Liabilities & Provisions 63.43 (165.76)
CASH GENERATED FROM OPERATIONS 632.15 407.83

Direct Taxes paid (Net of Refunds) (208.32) (189.16)
NET CASH FROM (USED IN) OPERATING ACTIVITIES - Total (A) 423.83 218.67
B) CASHFLOW FROM INVESTING ACTIVITIES

Purchase of Fixed Assets/Capital work-in-progress (71.30) (139.14)
Sale of Fixed Assets 0.29 0.07
Interest received 41.89 47.73
Dividend received 150.96 153.09
Intercorporate Deposit 63.28 (3.28)
Share Application money 2.89 (2.89)
(Increase)/Decrease in Investment 2,177.67 (102.43)
NET CASH FROM (USED IN) INVESTING ACTIVITIES - Total (B) 2,365.68 (46.86)
85
2010-2011 2009-2010
C) CASHFLOW FROM FINANCING ACTIVITIES

Proceed of deposit from trading members/applicant 102.09 92.79
Refund of deposit to trading members/applicant (28.70) (30.97)
Refund of Equipments deposits (Net) (1.77) (16.25)
Dividend paid (90.00) (54.00)
NET CASH FROM (USED IN) FINANCING ACTIVITIES - Total (C) (18.38) (8.43)
NET INCREASE/(DECREASE) IN CASH AND

CASH EQUIVALENTS (A+B+C) 2,771.13 163.38
CASH AND CASH EQUIVALENTS : OPENING BALANCE 449.89 286.51

[includes fixed deposit with banks of Rs. 401.85 crores (Previous Year
Rs.255.69 crores) and certificates of deposits with banks Rs.24.90 crores
(Previous Year Rs. Nil) ]
CLOSING CASH AND CASH EQUIVALENTS : CLOSING BALANCE 3,221.02 449.89

[includes fixed deposit with banks of Rs.2992.62 crores(Previous Year
Rs.401.85 cores) and certificates of deposits with banks Rs.202.83 crores
(Previous Year Rs. 24.90 crores)]
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENT 2,771.13 163.38
Notes to Cash Flow Statement :

1 Cash and cash equivalent represent cash, bank balances and balance in fixed deposit account.
2 The above Cash Flow Statement has been prepared under the "Indirect Method" as set out in the Accounting
Standard-3 on Cash Flow Statements issued by the Institute of Chartered Accountants of India

NARENDRA JAIN
Partner

86
ENCLOSURE FORMING PART OF ACCOUNTS AS AT 31.03.2011

(Information pursuant No.GSR No.388(E) [F.No.3/24/94-CLV] dated 15-5-95, issued by The Department of
Company Affairs, Ministry of Law, Justice and Company Affairs)
(Part IV of Schedule VI to the Companies, Act, 1956)
BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESS PROFILE
I Registration Details
Registration No. * 6 9 7 6 9 State Code 1 1
Balance Sheet Date 3 1 0 3 1 1

Date Month Year
II Capital raised during the year (Amount in Rs. Thousands)

Public Issue Rights Issue
* * * N I L * * * * * * N I L * * *
Bonus Issue Private Placement

* * * N I L * * * * * * N I L * * *
III Position of Mobilisation and Deployment of Funds (Amount in Rs. Thousands)

Total Liabilities Total Assets
* 4 6 4 9 0 0 8 2 * 4 6 4 9 0 0 8 2
Sources of Funds
Paid-up Capital Reserves & Surplus
* * * 4 5 0 0 0 0 * 2 9 2 3 3 8 1 8
Secured Loans Unsecured Loans / Deposits

* * * N I L * * * * 1 1 1 5 2 0 4 2

* * * 1 2 7 5 9 4
Application of Funds
Net Fixed Assets Investments
* * 4 5 7 9 9 5 6 * * 5 4 8 2 4 1 6
Net Current Assets Misc. Expenditure

* 3 0 9 0 1 0 8 2 * * * * * * * * *
Accumulated Losses
* * * N I L * * *
87
IV Performance of Company (Amount in Rs. Thousands)

Turnover Total Expenditure
* 1 3 7 8 4 7 4 3 * * 5 1 9 1 6 8 5
+ - Profit / Loss before tax + - Profit / Loss after tax

* * 8 5 9 3 0 5 8 * * 6 3 7 5 0 5 8
(Please tick Appropriate box + for Profit, - for Loss)

Earning per Share in Rs. Dividend rate %
* 1 4 1 . 6 7 2 1 0
V Generic Names of Three Principal Products / Services of Company (as per monetary terms)
Item Code No. N A

(ITC Code)
Product F A C I L I T A T I N G T R A D I N G
Description
I N S E C U R I T I E S

NARENDRA JAIN
Partner

88
Statement pursuant to Section 212 of the Companies Act,1956, relating to subsidiary company
1. Name of the subsidiary : National Securities Clearing Corporation Limited
2. Financial Year of the subsidiary company ended on : 31st March, 2011
3. Holding Company Interest

Number of Shares : 4,50,00,000
Extent of Holding : 100%
4. The Net Aggregate amount of the subsidiary

Profits/(losses) so far as it concerns members
of the holding company and is not dealt with
In Holding Company's account
(i) for the financial year of the company : Rs. 2,38,12,68,867
(ii) for the previous financial years of the : Rs. 10,56,60,53,325
subsidiary since it became the holding
Company's subsidiary
5. Net aggregate amount of the Profit/(Losses) of the

Subsidiary dealt with in the company's account
(i) for the financial year of the subsidiary : Rs. 90,00,00,000
(ii) for the previous financial years of the subsidiary : Rs. 3,43,12,50,000
since it became the subsidiary of the holding
company.

CHITRA RAMKRISHNA DR. R. H. PATIL


89
Statement pursuant to Section 212 of the Companies Act, 1956, relating to subsidiary company
1. Name of the subsidiary : NSE.IT Limited


(i) for the financial year of the company : Rs. 13,63,61,863
(ii) for the previous financial years of the : Rs. 28,20,87,673

(ii) for the previous financial years of the subsidiary : Rs. 8,00,00,080
company.



90
1. Name of the subsidiary : DotEx International Limited


Of the holding company and is not dealt with

company.



91
1. Name of the subsidiary : India Index Services & Products Limited

Number of Shares : 6,63,000


(i) for the financial year of the subsidiary : Rs. 59,67,000
company.



92
1. Name of the subsidiary : National Commodity Clearing Limited

Number of Shares : 30,87,500

(i) for the financial year of the company : Rs. 64,69,948
(ii) for the previous financial years of the : Rs. 97,22,792

(i) for the financial year of the subsidiary : Nil
(ii) for the previous financial years of the subsidiary : Nil
company.



93
1. Name of the subsidiary : NSE Infotech Services Limited

Number of Shares : 50,000

(i) for the financial year of the company : Rs. 94,61,342

company.



94
1. Name of the subsidiary : NSE.IT (UK) Limited

Number of Shares : 1 Equity Share of £ 1 face value

(i) for the financial year of the company : Rs. (1,58,461)
(ii) for the previous financial years of the : Rs. (3,40,936)

company.



95
1. Name of the subsidiary : NSE.IT (US) Inc.
2. Financial Year of the subsidiary company ended on : 31st December, 2010

Number of Shares : 1 Equity share of $ 1 face value

(i) for the financial year of the company : Rs.(26,02,755)
(ii) for the previous financial years of the : Rs. 4,15,285

company.



96
A A
NATIONAL SECURITIES CLEARING
CORPORATION LIMITED
(A wholly owned subsidiary of National Stock Exchange of India Limited)
SIXTEENTH ANNUAL REPORT

2010-11
A A
National Securities Clearing Corporation Limited Sixteenth Annual Report
BOARD OF DIRECTORS
Mr. Ravi Narain : Chairman

Ms. Chitra Ramkrishna : Managing Director & CEO
Mr. R.P. Chitale
Mr. Y.H. Malegam
Dr. R.H. Patil
Dr. Ajay N. Shah
Mr. S. Venkiteswaran
SECRETARY
Mr. R. Jayakumar : Asst. Company Secretary
AUDITORS : M/s. Haribhakti & Co.

701, Leela Business Park
Andheri Kurla Road
Andheri (East)
Mumbai - 400 059

Plot No. C-1, Block ‘G'
Bandra (East)
Mumbai- 400 051
DIRECTORS' REPORT
To,
The Members,
Your Directors have pleasure in presenting the Sixteenth Annual Report and Audited Accounts of the Company
for the year ended March 31, 2011.
I. OPERATIONS
Your Company, a wholly-owned subsidiary of National Stock Exchange of India Limited (NSEIL), carries
out the clearing and settlement of the trades executed on the Capital Market (CM), Futures & Options
(F&O), Currency Derivatives (CD), Securities Lending and Borrowing (SLBS), Mutual Funds (MFSS)
segments and OTC trades in Corporate Bonds. National Securities Clearing Corporation Limited (NSCCL)
guarantees settlement of trades executed on the Capital Market, Futures and Options, Securities Lending
& Borrowing and Currency Derivatives segments.
1. Settlement - Capital Market segment
NSCCL successfully continued its track record of completing all settlements in a timely manner.
During the period under review, 255 rolling settlements were handled in de-materialised mode. The
Per settlement figures in value terms in the current year are higher than the previous year as given
below:
The average value of securities handled per settlement was Rs. 3,840 crores in 2010-11 compared to
Rs. 3,761 crores in 2009-10. The average funds pay-in per settlement during the above periods were
Rs 1,150 crores and Rs. 1,141 crores respectively. The average number of shares processed per
settlement was about 1,954 lakhs in 2010-11 compared to 1,946 lakhs in 2009-10. Short deliveries
per settlement averaged around 0.13% in 2010-11 as compared to 0.18% in 2009-10.
The highest trading volume of Rs. 29,832.54 crores was observed on November 4, 2010 and highest
deliverable value of Rs. 8,450.65 crores was observed on November 9, 2010. Percentage of number
of shares deliverable to number of shares traded increased to 27.51% in 2010-11 from 21.52% in
2009-10. Percentage of value of shares deliverable to value of shares traded increased to 27.47% in
2010-11 from 22.22% in 2009-10. The Settlement Guarantee Fund stood at Rs. 5,100.35 crores as on
March 31, 2011. The details of settlements carried out by NSCCL are presented in Table 1.
1
Table No. 1: Settlement Statistics for 2010-11 - Capital Market segment
Particulars Quantity Quantity % of Shares Value of Value of % of % of Short Funds Settlement No. of
of Shares of Shares Deliverable Shares Shares Delivery Delivery Pay-in Guarantee settlements
Traded Deliverable to Total Traded Deliverable to Value to (Rs. Cr) Fund
(lakhs) (lakhs) Shares (Rs. Cr) (Rs. Cr) of Shares Delivery closing
Traded Traded balances
(Rs. Cr)
Apr-10 1,40,723.02 38,962.50 27.69% 2,73,343.78 74,744.36 27.34% 0.14% 19,310.45 5,426.87 20
May-10 1,41,599.36 37,327.92 26.36% 2,87,930.81 76,122.28 26.44% 0.11% 23,541.46 5,233.37 22
Jun-10 1,41,008.48 34,607.39 24.54% 2,82,747.78 70,801.02 25.04% 0.13% 22,292.03 5,209.64 22
Jul-10 1,40,128.49 38,714.06 27.63% 2,76,734.07 76,753.46 27.74% 0.12% 20,145.40 5,226.01 22
Aug-10 1,53,693.71 44,391.11 28.88% 3,16,431.26 87,520.91 27.66% 0.19% 21,675.19 5,201.10 22
Sep-10 1,56,909.02 44,985.90 28.67% 3,02,984.19 87,471.36 28.87% 0.14% 27,316.18 5,448.95 20
Oct-10 1,98,534.25 55,683.10 28.05% 3,68,748.17 1,05,673.77 28.66% 0.13% 28,479.30 5,349.99 22
Nov-10 1,88,745.45 53,979.70 28.60% 3,70,156.59 1,04,995.86 28.37% 0.15% 35,467.42 5,357.53 21
Dec-10 1,54,480.09 41,289.30 26.73% 3,02,625.93 82,171.18 27.15% 0.11% 24,744.22 5,261.18 22
Jan-11 1,29,068.15 36,358.11 28.17% 2,64,548.11 74,104.69 28.01% 0.10% 25,839.25 4,998.62 20
Feb-11 1,40,066.86 38,134.33 27.23% 2,65,416.46 71,190.56 26.82% 0.11% 22,217.24 4,967.33 20
Mar-11 1,25,953.33 33,836.84 26.86% 2,53,527.71 67,719.93 26.71% 0.10% 22,329.28 5,100.35 22
2010-11 18,10,910.21 4,98,270.26 27.51% 35,65,194.86 9,79,269.38 27.47% 0.13% 2,93,357.42 5,100.35* 255
*closing balance as on March 31, 2011

During the year under review, there was no physical settlement.
2. Securities Lending and Borrowing segment

The Securities Lending and Borrowing Scheme was implemented with effect from April 21, 2008.
The scheme has been revised twice since its launch. SEBI vide circular dated January 6, 2010 had
suggested further revisions to the scheme and revised scheme was implemented on June 28, 2010.
The revised scheme has performed comparatively well as compared to previous two schemes.
The volume of transactions for old scheme during the period April 1, 2010 to June 25, 2010 is
Rs. 7.98 crores with a total quantity of 1.39 lakh shares traded and a total of 29 trades were executed
and successfully settled for both the first and the reverse leg. The volume for revised scheme during
June 28, 2010 to March 31, 2011 is Rs. 757.33 crores with a total quantity of 109.05 lakh shares
traded and a total of 1,690 trades were executed and successfully settled for both the first and the
reverse leg.
3. Settlement - F&O segment

The period April 2010 - March 2011 witnessed an increase in the total amount settled. The total
value of settlement increased from around Rs. 4,034.47 crores in March 2010 to Rs. 5,374.22 crores
in March 2011. The highest monthly settlement was Rs.11,597.10 crores in the month of
November 2010. The highest trading volumes on NSE during this period were Rs. 2,77,277.49 crores,
witnessed on February 24, 2011 with total of 1,04,97,798 contracts being traded.
2
The details of turnover and month-wise settlement values during the year April 01, 2010 to
March 31, 2011 are tabulated below:
Date No. of Turnover MTM Final Premium Exercise Total
Contracts Traded (in Rs. cr) Settlement Settlement Settlement Settlement Settlement
( in lakhs) (in Rs. cr) (in Rs. cr) (in Rs. cr) (in Rs. cr) (in Rs. cr)
Apr-10 5,82,30,570 16,71,620.00 3,295.10 83.05 794.96 105.02 4,278.13
May-10 8,09,60,515 21,24,495.66 7,062.30 203.46 1,037.30 152.05 8,455.10
Jun-10 7,70,78,089 20,35,598.98 5,116.60 47.70 944.81 200.51 6,309.61
Jul-10 6,77,56,807 18,29,910.06 3,381.50 56.91 795.88 132.91 4,367.19
Aug-10 7,37,12,025 20,53,727.62 3,466.40 49.21 932.30 127.23 4,575.14
Sep-10 9,30,89,649 27,36,391.84 4,175.40 105.00 1,623.10 314.46 6,217.96
Oct-10 9,08,01,023 28,24,493.12 6,684.60 181.99 1,123.70 162.82 8,153.11
Nov-10 9,87,99,250 29,65,846.19 10,170.00 191.04 1,052.90 183.16 11,597.10
Dec-10 8,02,42,319 23,57,108.95 7,242.40 77.04 1,011.80 223.71 8,554.95
Jan-11 9,87,28,755 28,41,833.90 6,458.00 160.13 1,074.20 165.35 7,857.69
Feb-11 10,93,65,434 29,29,294.60 6,202.90 359.05 1,247.00 151.72 7,960.66
Mar-11 10,54,47,626 28,77,900.17 4,032.70 76.04 1,065.50 199.97 5,374.22
As of March 31, 2011, the Settlement Guarantee Fund in F&O segment stood at
Rs. 29,759.29 Crores.
3
4. Settlement - Currency Derivatives segment

Currency Derivatives trading commenced from August 29, 2008 with the introduction of futures on
USD-INR as the currency pair. Futures on multiple currency pairs namely Euro-INR, Pound Sterling-
INR and Japanese Yen-INR were introduced in February 2010. In October 2010, option contracts
were introduced on the USD-INR pair. The details of turnover and month-wise settlement values
during the period April 1, 2010 to March 31, 2011 in Currency Futures & Options are as under:
Currency Futures Currency Options
Particulars No. of Turnover MTM Final No. of Notional Final Total

Contracts (in Rs. Settlement Settlement Contracts Turnover Exercise Settlement
Traded crs.) (in Rs. (in Rs. crs.) Traded (in Rs. Settlement (in Rs. crs.)
(in lakhs) crs.) (in lakhs) (in lakhs) crs.) (in Rs. crs.)
Apr-10 770.85 3,45,932.17 74.79 3.95 N.A. N.A. N.A. 78.75
May-10 777.45 3,59,679.85 303.70 12.32 N.A. N.A. N.A. 316.02
Jun-10 698.38 3,27,382.50 233.81 4.74 N.A. N.A. N.A. 238.56
Jul-10 449.25 2,13,353.41 187.25 3.16 N.A. N.A. N.A. 190.41
Aug-10 426.40 2,01,239.14 113.59 0.41 N.A. N.A. N.A. 114.00
Sep-10 615.86 2,84,704.06 173.75 7.78 N.A. N.A. N.A. 181.53
Oct-10 677.94 3,04,213.49 205.07 4.53 3.05 1,383.11 N.A. 209.59
Nov-10 553.97 2,53,101.03 216.91 6.42 29.07 13,230.66 11.53 234.86
Dec-10 488.71 2,23,555.38 272.00 1.32 30.65 14,009.11 10.26 283.59
Jan-11 547.13 2,52,560.92 171.17 8.11 48.59 22,271.88 7.25 186.53
Feb-11 472.95 2,18,253.03 227.82 9.80 79.34 36,400.60 10.61 248.23
Mar-11 642.94 2,95,027.14 237.88 9.03 183.50 83,490.24 24.79 271.70
Note : Currency options commenced trading on October 29, 2010.

N.A. - Not Applicable
Based on the guidelines issued by SEBI, NSE introduced trading in IRF contracts on 10 year notional
7% coupon bearing GOI security on August 31, 2009. The details of turnover and month-wise
settlement values during the period April 1, 2010 to March 31, 2011 are tabulated below:
4
Interest Rate Futures

Particulars No. of Contracts Turnover MTM Final Total
Traded ( in Rs. crs.) Settlement Settlement Settlement
( in Rs. crs.) ( in Rs. crs.) ( in Rs. crs.)
Apr-10 407 7.44 0.70 Not Applicable 0.70
May-10 1,177 21.62 0.90 Not Applicable 0.90
Jun-10 917 17.16 0.49 13.40 13.89
Jul-10 205 3.80 0.04 Not Applicable 0.04
Aug-10 26 0.49 0.03 Not Applicable 0.03
Sep-10 79 1.47 0.01 0.22 0.23
Oct-10 24 0.44 0.00 Not Applicable 0.00
Nov-10 29 0.54 0.00 Not Applicable 0.00
Dec-10 442 8.16 0.00 0.02 0.02
Jan-11 17 0.31 0.00 Not Applicable 0.00
Feb-11 11 0.20 0.00 Not Applicable 0.00
Mar-11 14 0.26 0.00 0.00 0.00
5. Risk Management
(i) Capital Market & Securities Lending & Borrowing segments
NSCCL has laid requisite focus towards risk management by putting in place an On-line Position
monitoring system which has successfully and efficaciously addressed the market risks. Margins
are computed on an on-line real time basis at client level. The Value at Risk (VAR) Margins are
applied which is statistically arrived at covering 99% value at risk.
With effect from April 21, 2008, margins in Capital market are being levied on institutional
trades also. These margins are levied on T+1 day in the Capital Market segment.
(ii) F&O & Currency Derivatives segments

NSCCL has in place many risk management measures including monitoring of exposure on a
real time basis through the system called PRISM (Parallel Risk Management System) and also
end of day monitoring of client level exposures.
The most critical component of PRISM is the online real time client level, portfolio based
margining and monitoring system. The robustness of the system is time tested and has proved
its efficient handling of volatile situations effectively, on numerous occasions in the past and
especially on highly volatile days in the year. The actual margining and position monitoring is
done on-line, on an intra-day basis. NSCCL uses the SPAN (Standard Portfolio Analysis of
Risk) system for the purpose of margining, which is a portfolio based system.
SPAN is a registered trademark of the Chicago Mercantile Exchange, used herein under License.
The objective of SPAN is to identify overall risk in a portfolio of futures and options contracts
for each member. The system treats futures and options contracts uniformly, while at the same
time recognising the unique exposures associated with options portfolios like extremely deep
out-of-the-money short positions and inter-month risk. As SPAN is used to determine margin
5
requirements, its overriding objective is to determine the largest loss that a portfolio might
reasonably be expected to suffer from one day to the next day. The parameters used in the
computation of margins are revised six times a day.
There have been no defaults during the financial year.
6. Corporate Bond settlement

SEBI and RBI vide their respective circulars dated October 16, 2009 stipulated that all Over the
Counter (OTC) trades in corporate bonds between specified entities namely Mutual funds, Foreign
Institutional Investors, Venture Capital Funds, Foreign Venture Capital Investors, Portfolio managers,
and RBI regulated entities as specified by RBI shall necessarily be cleared and settled through the
National Securities Clearing Corporation Limited (NSCCL) or the Indian Clearing Corporation
Limited (ICCL) with effect from December 1, 2009.
The Employees' Provident Fund Organisation (Ministry of Labour & Employment, Govt. of India)
has issued a circular dated December 30, 2010, mandating reporting of transactions in corporate
bonds by all Exempted PF Trusts on authorised platforms and settlement through the authorised
clearing corporations (NSCCL or ICCL).
Trades in corporate bonds are reported on the various platforms made available for the same (NSE
website, WDM and FIMMDA platform supported by NSE, etc.). NSCCL has put in place a system
for settling corporate bonds transactions with effect from December 1, 2009. The month-wise
settlement statistics for the period are as under
Particulars No. of Trades No. of Settlement Nominal Value Average Daily
Settled Days of Bonds Settled Settlement Value
(Rs.Cr.) (Rs. Cr.)
Apr-10 3,020 19 43,726.57 2,301.40
May-10 3,606 20 47,930.68 2,396.53
Jun-10 2,982 22 37,891.21 1,722.33
Jul-10 3,300 21 47,181.02 2,246.72
Aug-10 2,581 21 37,167.12 1,769.86
Sep-10 2,545 20 38,154.19 1,907.71
Oct-10 2,528 21 37,809.13 1,800.43
Nov-10 2,118 20 28,458.21 1,422.91
Dec-10 1,868 22 26,658.79 1,211.76
Jan-11 1,814 20 26,863.57 1,343.18
Feb-11 1,731 19 23,648.35 1,244.65
Mar-11 2,854 22 37,142.82 1,688.31
RBI had permitted the repo transactions in corporate bond vide directions issued on January 8, 2010.
There have been four repo trades valuing Rs. 91.04 crores.
6
7. Mutual Fund Service System (MFSS)

Securities Exchange Board of India (SEBI) vide circular dated November 9, 2010 issued revised
guidelines for facilitating transactions in Mutual Fund schemes through the Stock Exchange
infrastructure. As on March 31, 2011, 25 mutual fund houses with 1,338 schemes were enabled
under the revised MFSS scheme.
(i) Subscription
The average daily value of funds settled for subscription of mutual fund units for the period
January 1, 2011 to March 31, 2011 was Rs. 112.54 lakhs. The highest settlement value was
Rs. 1,800.98 lakhs and was observed on January 25, 2011. The average daily quantity of units
allotted under subscription for the period January 1, 2011 to March 31, 2011 was 3.89 lakhs.
The highest quantity allotted was 20.26 lakhs and was observed on March 17, 2011.
(ii) Redemption
The average daily value of funds settled for redemption of mutual fund units for the period
January 1, 2011 to March 31, 2011 was Rs. 45.15 lakhs. The highest settlement value was
Rs. 282.55 lakhs and was observed on February 18, 2011.The average daily quantity of units
redeemed for the period January 1, 2011 to March 31, 2011 was 1.83 lakhs. The highest quantity
redeemed was 13.96 lakh units and was observed on February 18, 2011.
8. New Initiatives and Developments
During the year, several initiatives have been taken by NSCCL to bring about efficiency in clearing
& settlement operations as well as to provide enhanced financial services to its constituents. A few of
them are given as under:
(i) Longer tenure and early recall and repay facility in SLB
In accordance with SEBI circular dated January 6, 2010, the tenure of transactions in SLB has
been increased from one month to 12 months. Further, the borrowers and lenders have been provided
an optionality of doing an early repay and recall of the borrowed and lent securities. This is a
screen based facility and the scheme has seen improved participation subsequent to this.
(ii) Auction on T+2 day basis
Auction in respect of securities pay-in shortages in the Capital market segment was conducted
on a T+3 day basis and settled on the T+4 day of the original trade. Effective from
February 1, 2011, as specified by SEBI, auctions for shortages are conducted on the T+2 day
itself and settled on the T+3 day. This has further shortened the settlement cycle which is beneficial
for the market participants.
(iii) Intra-day client and CP code modification
Members were accorded a half an-hour time window post trading hours for carrying out their
client and CP code modifications ( 4:15 p.m.- 4:45 p.m). An interactive system National Clearing
Management System (NCMS) has now been provided wherein members can carry out such
modifications intra-day upto 4:15 p.m. While providing members more time for these
modifications, it also facilitates faster download of data to members.
7
(iv) On-line dissemination of India VIX

India VIX values which were earlier disseminated on the website only at the EOD are now
being disseminated on an online real time basis. This makes it amenable for introduction of
products on VIX.
(v) Faster payout to members
Payout of securities was being effected to members by around 12 noon or thereafter. The pay-in
and pay-out processes have been revamped to effect payout within five minutes of pay-in i.e. by
around 11:15 a.m. This facility is very helpful to members as they are able to use these securities
for providing for early pay-in of their outstanding transaction thereby getting margin benefits.
(vi) Process optimisations and automations
Existing manual processes were identified and automated and processes optimised to ensure
reduced turnaround time. This has reduced areas of errors and process time respectively. These
inter-alia include automation of corporate bonds settlement process, process re-sequencing and
optimisation for facilitating faster download of information / reports to members.
9. Other Achievements
CRISIL has continued its highest corporate credit rating of ‘AAA' to the National Securities Clearing
Corporation Ltd (NSCCL). ‘AAA' rating indicates highest degree of strength with regard to honoring
debt obligations. NSCCL is the first Indian Clearing Corporation to get this rating. The rating reflects
NSCCL's status as Clearing Corporation for NSE, India's largest stock exchange. The rating also
factors in NSCCL's rigorous risk management controls and adequate settlement guarantee cover.
NSCCL has been accorded this rating for the third consecutive year.
10. Opportunities and increased coverage
(i) Clearing Members
New Clearing Members have been added on both Capital Market and F&O segment thereby
providing a wider choice to clients. Clearing membership was granted to 33 new members in
the F&O segment and 83 new members in Capital Market segment. In Currency Derivatives
segment, 10 Clearing Members have been enabled.
(ii) Custodian Clearing Members & Professional Clearing Members (PCM)
In the Capital Market segment 18 Custodians are enabled as Custodian Clearing Members
through whom clients can settle their transactions. Of these, two custodians and one PCM has
been enabled during April 2010 to March 2011.
11. Multiple Depositories /Banks
NSCCL is electronically connected to both the depositories National Securities Depository Limited
(NSDL) and Central Depository Services (India) Limited (CDSL) for securities settlement and 13
clearing banks namely Axis Bank Ltd., Bank of India, Canara Bank, Citibank N.A, HDFC Bank
8
Ltd., Hongkong & Shanghai Banking Corporation Ltd., ICICI Bank Ltd., IDBI Bank Ltd., IndusInd
Bank Ltd., Kotak Mahindra Bank Ltd., Standard Chartered Bank, State Bank of India and Union
Bank of India for funds settlement.
II. FINANCIAL RESULTS

The working of NSCCL during the year has resulted in a net profit after tax of Rs. 238.13 crores as per
particulars given below: -
(Rs. in crores) (Rs. in crores)
Income 377.04 345.24
Expenditure 56.66 48.28
Provision for tax (including deferred tax) 82.25 70.94
Amount available for appropriation 339.93 286.50
Appropriations
Total 339.93 286.50
III. DIVIDEND
In view of the above results, the Directors recommend payment of dividend of Rs. 20/- per share for the
year 2010-11.
IV. CORPORATE GOVERNANCE

The Company is committed to maintain the highest standards of corporate governance and adhere to
corporate governance requirements. In continuation of its pursuit to establish good corporate governance
practice, NSCCL, while already complying by and large with a major part of the Corporate Governance
Voluntary Guidelines 2009 issued by the Ministry of Corporate Affairs, is in the process of complying
with/ examining the possibility of implementing, the remaining part of the said Guidelines.
V. DIRECTORS
Mr. Y. H. Malegam and Dr. Ajay Shah retire by rotation at the ensuing Annual General Meeting and being
eligible offer themselves for reappointment.
9
VI. DIRECTORS' RESPONSIBILITY STATEMENT

(i) in the preparation of the annual accounts, the applicable accounting standards had been followed
along with proper explanation relating to material departures, if any;
(ii) the Directors had selected such accounting policies and applied them consistently and made judgments
and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs
of NSCCL at the end of the financial year i.e., 31st March 2011 and of the profits of NSCCL for that
year;
(iii) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records
in accordance with the provisions of Companies Act, 1956 for safeguarding the assets of NSCCL
(iv) the Directors had prepared the annual accounts on a going concern basis.
VII. AUDIT COMMITTEE

The Audit Committee comprises of four Directors viz., Mr. Y. H. Malegam, Mr. R. P. Chitale,
Dr. R. H. Patil and Mr. S. Venkiteswaran as its members. Mr. Y. H. Malegam is the Chairman of the Audit
Committee. The Committee met four times during the year on June 4, 2010, August 24, 2010,
November 22, 2010 and February 1, 2011. The details of the attendance of members of the Audit Committee
at their meetings held on the above dates are given in the following table:-
Names Number of meetings held during Number of meetings
the year attended
Dr. R. H. Patil 4 2
Mr. R. P. Chitale 4 4
Mr. S. Venkiteswaran 4 1
VIII. AUDITORS
The Auditors, M/s. Haribhakti & Co., Chartered Accountants, will retire at the forthcoming Annual General
Meeting of NSCCL and are eligible for re-appointment. NSCCL has received a certificate from the Auditors
to the effect that their re-appointment, if made, would be within the limits prescribed under Section
224 (1B) of the Companies Act, 1956.
IX. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE

EARNINGS / OUTGO
1. Conservation of Energy, Technology Absorption
As the Company does not fall under any of the industries listed out in the Schedule appended to
Companies (Disclosure of particulars in the Report of the Board of Directors) Rules, 1988, particulars
required to be disclosed with respect to conservation of energy and technology absorption in terms of
10
Section 217(1)(e) of the Companies Act, 1956, read with the aforesaid Rules are not applicable to
the Company.
2. Foreign Exchange earnings/outgo during the year under review
There was no foreign exchange earning during the year. However, the foreign exchange outgo
during the year was Rs.0.02 crores.
X. PARTICULARS OF EMPLOYEES
All the persons who are working with NSCCL are on deputation from National Stock Exchange of India
Limited (NSEIL) and accordingly the remuneration paid in respect of them has been reimbursed to NSEIL
by NSCCL. A statement under Section 217(2A) of the Companies Act, 1956 read with Companies
(Particulars of Employees) Rules, 1975 is enclosed.
XI. ACKNOWLEDGMENT
Your Directors wish to place on record their gratitude for the co-operation and support extended by the
Government of India, Securities and Exchange Board of India and Reserve Bank of India. The Board also
wishes to place on record their sincere appreciation for the unstinted efforts of the employees at all levels
towards the continued growth of NSCCL.
Ravi Narain
Chairman
Place : Mumbai
11
ANNEXURE TO DIRECTORS' REPORT

STATEMENT PURSUANT TO SECTION 217 (2A) OF THE COMPANIES ACT, 1956 READ
WITH COMPANIES (PARTICULARS OF EMPLOYEES) RULES, 1975.
Sr. Name & Age in Designation/ Remuneration Experience Date of Last

No. Qualifications Years Nature of Received (Rs.) (No. of Commencement Employment
Duties Gross Net years) of Employment
1 Mr. R. Sundararaman 48 Senior Vice 15950826 8617432 28 March 13, 1995 Grade ‘B’
B. Sc., CAIIB, AICWA President Officer,
Industrial
Development
Bank of India
Notes :
Superannuation Fund, taxable value of perquisites, etc. Net remuneration represents gross remuneration less
Company's contribution to provident and superannuation funds, taxable value of perquisites, profession tax
and income tax. Where applicable, the amounts also include certain allowances accrued during previous
year(s) but claimed in the current year.
2 The above mentioned employee is not a relative of any Director.
3 The above employee is on deputation basis from the Company's holding company i.e. National Stock Exchange
of India Limited (NSEIL) and the remuneration mentioned above in respect of him has been reimbursed to
NSEIL by the Company
4 The abovementioned employee is not holding equity shares in the company within the meaning of sub-clause
(iii) of clause (a) of sub-section (2A) of Section 217 of the Companies Act, 1956.
5 The Company does not have any Employees Stock Option Plan (ESOP) Scheme for its employees.
12
AUDITORS' REPORT TO THE MEMBERS OF

NATIONAL SECURITIES CLEARING CORPORATION LIMITED
1. We have audited the attached Balance Sheet of National Securities Clearing Corporation Limited
(‘the Company') as at March 31, 2011 and also the Profit and Loss account and the cash flow statement
for the year ended on that date annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion on these financial statements
based on our audit.
Standards require that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, (as amended) issued by the Central
Government of India in terms of sub-section (4A) of Section 227 of ‘The Companies Act, 1956' of
India (the ‘Act') and on the basis of such checks of the books and records of the company as we
considered appropriate and according to the information and explanations given to us, we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the paragraph 3 above, we report that:

i. We have obtained all the information and explanations, which to the best of our knowledge and
belief were necessary for the purposes of our audit;
ii. In our opinion, proper books of account as required by law have been kept by the Company so
far as appears from our examination of those books;
iii. The balance sheet, the profit and loss account and the cash flow statement dealt with by this
report are in agreement with the books of account;
iv. In our opinion, the balance sheet, the profit and loss account and the cash flow statement dealt
with by this report comply with the accounting standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956.
v. On the basis of the written representations received from the directors, as on March 31, 2011,
and taken on record by the Board of Directors, we report that none of the directors is disqualified
as on March 31, 2011 from being appointed as a director in terms of clause (g) of sub-section
(1) of section 274 of the Companies Act, 1956.
13
vi. In our opinion and to the best of our information and according to the explanations given to us,
the said accounts give the information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the accounting principles generally
accepted in India;
a) in the case of the balance sheet, of the state of affairs of the Company as at March 31,
2011;
b) in the case of the profit and loss account, of the profit for the year ended on that date;
and
c) in the case of cash flow statement, of the cash flows for the year ended on that date.
FOR HARIBHAKTI & CO.

CHARTERED ACCOUNTANTS
FRN No.103523W
PRASAD V. PARANJAPE
PARTNER
Membership No. 47296
Place : Mumbai
14
[Referred to in paragraph 3 of the Auditors' Report of even date to the members of

NATIONAL SECURITIES CLEARING CORPORATION LIMITED on the
financial statements for the year ended March 31, 2011]
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details
and situation of fixed assets.
(b) The fixed assets of the company have been physically verified by the management during the year
and no material discrepancies between the book records and the physical inventory have been noticed.
In our opinion, the frequency of verification is reasonable.
(c) There was no substantial disposal of fixed assets during the year.
(ii) The Company does not hold any Inventory. Therefore, the provisions of clauses 4(ii)(a),(b) & (c) of
the Companies (Auditor's Report) Order, 2003 (as amended) are not applicable to the Company.
(iii) As informed, the Company has not granted or taken any loans, secured or unsecured to companies,
firms or other parties covered in the register maintained under section 301 of the Companies Act,
1956 and hence clauses 4(iii)(b), 4(iii)(c), 4(iii)(d), 4(iii)(f) and 4(iii)(g) of the Companies (Auditor's
Report) Order, 2003 (as amended) are not applicable to the company.
(iv) In our opinion and according to the information and explanations given to us, there is an adequate
internal control system commensurate with the size of the Company and the nature of its business
with regard to purchase of fixed assets and sale of services. During the course of our audit, no major
weakness has been noticed in the internal control system in respect of these areas. During the course
of our audit, we have not observed any continuing failure to correct weakness in internal control
system of the company.
(v) According to the information and explanations given to us, there were no contracts or arrangement
during the year that need to be entered in the register maintained under section 301 of the Companies
Act, 1956.
(vi) The company has not accepted any deposits from the public within the meaning of Sections 58A and
58AA of the Act and the rules framed there under.
(vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of
its business.
(viii) To the best of our knowledge and as explained, the Central Government of India has not prescribed
the maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Act for any
of the services of the company.
15
(ix) (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including
investor education and protection fund, income-tax, service tax, customs duty, cess and other material
statutory dues applicable to it. We are informed that the provisions of Provident Fund Act and Employee
State Insurance Act are not applicable to the Company.
Further, since the Central Government has till date not prescribed the amount of cess payable under
section 441A of the Companies Act,1956, we are not in a position to comment upon the regularity or
otherwise of the company in depositing the same.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect
of investor education and protection fund, income-tax, service tax, customs duty, cess and other
undisputed statutory dues were outstanding, at the year end, for a period of more than six months
from the date they became payable.
(c) According to the records of the Company, the dues outstanding in respect of income-tax, service tax,
customs duty, and cess as at March 31, 2011, which have been not been deposited with respective
authorities on account of disputes are as follows:
Name of the Statute Nature of the Amount (Rs.) Period to which Forum where
Dues the amount relates dispute is pending
Income Tax Act 1961 Income Tax 1,82,988 AY 2003-04 CIT (Appeals)
Income Tax Act 1961 Income Tax 36,26,169 AY 2005-06 ITAT
Income Tax Act 1961 Income Tax 41,70,131 AY 2008-09 CIT (Appeals)
Income Tax Act 1961 Income Tax 6,95,33,692 AY 2009-10 ACIT (Appeals)
(x) The Company has no accumulated losses at the end of the financial year and has not incurred cash
losses during the financial year covered by our audit and the immediately preceding financial year.
(xi) The Company does not have any dues payable to financial institution, bank or debenture holders.
(xii) According to the information and explanations given to us, the Company has not granted loans and
advances on the basis of security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the
provisions of clause 4(xiii) of the Companies (Auditor's Report) Order, 2003 (as amended) are not
applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other
investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 (as amended) are not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, the company has not
given any guarantee for loans taken by others from banks or financial institutions during the year.
16
(xvi) The Company has not obtained any term loans.
(xvii) According to the information and explanations given to us and on an overall examination of the
balance sheet of the Company, we report that no funds raised on short-term basis have been used for
long-term investment.
(xviii) According to the information and explanations given to us, the company has not made preferential
allotment of shares to parties and companies covered in the register maintained under section 301 of
the Act.
(xix) The Company did not have any outstanding debentures during the year.
(xx) The Company has not raised any money by public issue during the year.
(xxi) During the course of our examination of the books and records of the company, carried out in accordance
with the generally accepted auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of fraud on or by the company,
noticed or reported during the year, nor have we been informed of such case by the management.
FOR HARIBHAKTI & CO.

CHARTERED ACCOUNTANTS
FRN No.103523W
PRASAD V. PARANJAPE
PARTNER
Place : Mumbai
17

(Rs. In Lacs) (Rs. In Lacs)
I SOURCES OF FUNDS
a Equity Share Capital 1 4,500.00 4,500.00
b Reserves & Surplus 2 89,127.97 93,627.97 75,775.34 80,275.34
2. Deposits (Unsecured)
a Deposit from Members 3 38,449.83 36,855.24
b Deposits from Applicants 427.00 552.00
c Deposits from Clearing Banks 12,450.00 51,326.83 11,900.00 49,307.24
3. Deferred Tax Liabilities 41.20 15.83

TOTAL 144,996.00 129,598.41
1. Fixed Assets 4
a. Gross Block 2,714.29 2,544.97
Less : Accumulated Depreciation 2,171.33 2,041.47
Net Block 542.96 503.50
b. Capital Work-In-Progress 114.79 657.75 3.26 506.76

(Including Capital Advances)
2. Investments 5 16,375.40 10,234.34
3. Current Assets, Loans and Advances 6

a. Current Assets
1. Interest Receivable 5,749.77 5,068.52
2. Sundry Debtors 465.00 1,881.11
3. Bank Balances 377,257.54 282,732.07
4. Other Current Assets 59,518.45 442,990.76 131,350.57 421,032.27
b. Loans & Advances 974.00 1,046.11

443,964.76 422,078.38
Less : Current Liabilities & Provisions 7
Current Liabilities 305,541.89 293,251.02
Provisions 10,460.02 316,001.91 9,970.05 303,221.07

Net Current Assets 127,962.85 118,857.31
TOTAL 144,996.00 129,598.41

The Schedules referred to above form an integral part of the Balance Sheet and notes to accounts
For HARIBHAKTI & CO.
RAVI NARAIN CHITRA RAMKRISHNA
PRASAD V.PARANJAPE Y. H. MALEGAM R. H.PATIL

Partner Director Director
Place : Mumbai R. JAYAKUMAR

Date : April 28 ,2011 Asst. Company Secretary
18
PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2011

Schedule 31.03.2011 31.03.2010
(Rs. in Lacs) (Rs. in Lacs)
INCOME
Clearing & Settlement Charges 11,988.99 9,591.13
IT & Process Support Charges 9.00 25.53
Interest Income 8 15,696.60 13,977.01
Other Investment Income 9 7,314.40 9,120.82
Other Income 10 2,695.32 1,809.62
TOTAL 37,704.31 34,524.11
EXPENDITURE
Administration & Other Expenses 11 4,121.05 3,615.90
Bad Debts (Refer Note No.1c (ii) ) – 8.20
Payments to and provision for employees 12 1,295.48 968.91
TOTAL 5,666.29 4,827.79
Net Profit before Tax 32,038.02 29,696.32

Less : Provision for Taxation
- Current Tax 8,200.00 7,100.00
- Deferred Tax 25.37 (5.71)
Net Profit after Tax 23,812.65 22,602.03
Add : Surplus brought forward from Previous Year 10,180.34 6,048.36

Net Profit available for Appropriation 33,992.99 28,650.39
Appropriations :
- General Reserve 13,000.00 8,500.00
- Proposed Dividend 9,000.00 8,550.00
- Corporate Dividend Tax 1,460.02 1,420.05
- Balance carried to Balance Sheet 10,532.97 10,180.34
33,992.99 28,650.39
Basic Earning per share (Rs) (FV Rs.10) (Refer Note No.2 (l)) 52.92 50.23

The Schedules referred to above form an integral part of the Profit & Loss Account and Notes to Accounts
PRASAD V.PARANJAPE Y. H. MALEGAM R. H.PATIL


19

As at 31.03.2011 As at 31.03.2010

Authorised
4,50,00,000 Equity Shares(Previous Year :4,50,00,000) of Rs. 10 Each 4,500.00 4,500.00

4,50,00,000 (Previous Year 4,50,00,000) Equity Shares of
Rs. 10 each fully paid-up. 4,500.00 4,500.00
(all the above shares are held by the holding company-
National Stock Exchange of India Limited and its nominees)
(Of the above 4,49,99,994 equity shares are allotted as fully paid by
way of bonus shares on capitalisation of general reserves)
TOTAL 4,500.00 4,500.00

General Reserve
As per Last Balance Sheet 42,095.00 33,595.00
Add : Transferred from Technology
Upgradation Reserve 500.00 –
Add : Transferred from Profit & Loss Account 13,000.00 55,595.00 8,500.00 42,095.00
Special Contingency Reserve

Add : Transferred from Profit & Loss Account – 22,000.00 – 22,000.00
Technology Upgradation Reserve

As per Last Balance Sheet 500.00 500.00
Less : Transferred to General Reserve 500.00 – – 500.00
Capital Redemption Reserve

Add : Transferred during the year – 1,000.00 – 1,000.00
Balance in Profit & Loss Account 10,532.97 10,180.34

TOTAL 89,127.97 75,775.34
SCHEDULE 3 : DEPOSIT FROM MEMBERS

- Security Deposit from Clearing Members 32,235.48 30,426.15
(Amount repayable within one year Rs.445 lacs
(Previous Year : Rs. 57 lacs))
- Security Deposit in lieu of Bank Guarantee/securities 6,214.35 6,429.09
from Clearing Members
( Amount repayable within one year Rs 76 lacs
(Previous Year: Rs. 25 lacs))
TOTAL 38,449.83 36,855.24
20
SCHEDULE 4 : FIXED ASSETS {Refer Note No. 1 d (ii) to (v)}
(Rs. In Lacs)
SR. GROSS BLOCK DEPRECIATION NET BLOCK
NO. DESCRIPTION As on Additions Deductions As on Upto For the Deductions Total upto As on As on
01.04.10 during the during the 31.03.11 31.03.10 year during the 31.03.11 31.03.11 31.03.10
year year year
Tangible Assets
1 Clearing And Settlement Systems 2,110.16 231.61 98.77 2,243.00 1,659.25 220.91 97.09 1,783.07 459.93 450.91
2 Computer Systems 126.50 – 22.55 103.95 121.82 2.84 22.55 102.11 1.84 4.68
3 Dial Based Telecom Network * 0.31 – – 0.31 0.31 – – 0.31 – –
4 Furniture and Fixtures 8.68 – – 8.68 6.44 0.29 – 6.73 1.95 2.24
5 Office Equipments 1.84 – 0.26 1.58 1.84 – 0.26 1.58 – –
6 Telecommunications Systems 9.34 – – 9.34 7.33 1.40 – 8.73 0.61 2.01
National Securities Clearing Corporation Limited
Intangible Assets
7 Computer Software 288.14 59.29 – 347.43 244.48 24.32 – 268.80 78.63 43.66
TOTAL: 2,544.97 290.90 121.58 2,714.29 2,041.47 249.76 119.90 2,171.33 542.96 503.50
Previous Year 2,170.85 410.72 36.60 2,544.97 1,842.45 234.78 35.76 2,041.47 503.50 328.40
Note*: Refer Note No.2( c ) of Notes to Accounts.
21
Sixteenth Annual Report
SCHEDULE 5: INVESTMENTS (LONG TERM) (Refer Note No. 1e)
Maturity Number Face Value Face Value As at 31.3.2011 Number of As at

Date of Units Per Unit (Rs.) (Rs. In Lacs) Units 31.3.2010
(Rs.) (Figures in bracket indicates (Rs. In Lacs)
amount earmarked towards SGF)
QUOTED
GOI SECURITIES
Taxable
11.50% GOVERNMENT OF INDIA SECURITY 21-May-2015 300 100 30,000.00 0.35 300 0.37
Sub-total(i) 0.35 0.37
BONDS
Taxfree
9% INDIAN RAILWAY FINANCE CORPORATION LTD. 2015 28-Feb-2015 90 1,000,000 90,000,000.00 941.36 50 500.00
5.30% NUCLEAR POWER CORPORATION OF INDIA LTD. 2012 31-Dec-2012 – 100,000 50,000,000.00 – 500 499.49
5.50% NUCLEAR POWER CORPORATION OF INDIA LTD.2013 14-Aug-2013 200 100,000 20,000,000.00 200.00 200 200.00
5.25% NUCLEAR POWER CORPORATION OF INDIA LIMITED 2014 23-Mar-2014 100 1,000,000 100,000,000.00 1,000.00 100 1,000.00
6.85% INDIA INFRASTRUCTURE FINANCE COMPANY

LIMITED - 2014 22-Jan-2014 6,250 100,000 625,000,000.00 6,301.68 (1,024) 4,750 4,782.13
6.85% INDIA INFRASTRUCTURE FINANCE COMPANY
LIMITED SERIES II 20-Mar-2014 2,875 100,000 287,500,000.00 2,890.99 2,000 2,000.00
6.05% INDIAN RAILWAY FINANCE CORPORATION
LIMITED - SERIES 73 -2015 20-Dec-2015 500 100,000 50,000,000.00 500.00 – –
Sub-total(ii) 11,834.03 (1,024) 8,981.62
Mutual Fund
DWS FIXED TERM FUND SERIES 67 - GROWTH PLAN 25-Apr-2011 1545127.5950 10.0000 15,451,275.95 154.51 1545127.5950 154.51
BIRLA SUN LIFE FIXED TERM PLAN - SERIES CI -
GROWTH OPTION 28-Nov-2011 600000.0000 10.0000 6,000,000.00 60.00 – –
CANARA ROBECO FIXED MATURITY PLAN - SERIES
6 - 13 MONTHS - PLAN A - GROWTH 25-Mar-2012 5658600.0000 10.0000 56,586,000.00 565.86 – –
DWS FIXED TERM FUND - SERIES 75 - GROWTH PLAN 28-Sep-2011 200025.2830 10.0000 2,000,252.83 20.00 – –
DSP BLACKROCK FMP - 12 MONTHS - SERIES 9 - GROWTH 21-Nov-2011 5000000.0000 10.0000 50,000,000.00 500.00 – –
ICICI PRUDENTIAL FMP SERIES 55 - 1 YEAR - PLAN B
CUMMULATIVE 12-Feb-2012 5000000.0000 10.0000 50,000,000.00 500.00 – –
ICICI PRUDENTIAL FMP SERIES 56 - 1 YEAR PLAN D
CUMMULATIVE 29-Mar-2012 5000000.0000 10.0000 50,000,000.00 500.00 (500) – –
KOTAK FMP - 15 MONTHS - SERIES 7 - GROWTH 23-Feb-2012 175000.0000 10.0000 1,750,000.00 17.50 – –
KOTAK FMP - 370 DAYS - SERIES 9 - GROWTH 25-Oct-2011 5000000.0000 10.0000 50,000,000.00 500.00 – –
22
SCHEDULE 5: INVESTMENTS (LONG TERM) (Refer Note No. 1e)
Maturity Number Face Value Face Value As at 31.3.2011 Number of As at

Date of Units Per Unit (Rs.) (Rs. In Lacs) Units 31.3.2010
(Rs.) (Figures in bracket indicates (Rs. In Lacs)
amount earmarked towards SGF)
RELIGARE FIXED MATURITY PLAN - SERIES VI -

PLAN D - 370 DAYS - GROWTH 26-Mar-2012 1,960,000.00 10.0000 19,600,000.00 196.00 – –
SUNDARAM FIXED TERM PLAN AP 367 DAYS GROWTH 4-Nov-2011 703590.0000 10.0000 7,035,900.00 70.36 – –
HDFC FMP 13M OCTOBER 2009 - GROWTH - SERIES XI 20-Nov-2010 – 10.0000 50,000,000.00 – 5000000.0000 500.00
TATA FMP - SERIES 29 - PLAN A - GROWTH 7-Nov-2011 5517534.0000 10.0000 55,175,340.00 551.75 (256) – –
Sub-total(iii) 3,635.98 (756) 654.51
TOTAL (i+ii+iii) 15,470.36 (1,780) 9,636.50
UNQUOTED
BONDS
Taxable
5.50% RURAL ELECTRIFICATION CORPORATION

LIMITED -2009 30-Jun-2010 – 10,000 – – 1,430 142.98
5.50%RURAL ELECT CORP LTD 54 EC 31-Jul-2011 3,550 10,000 35,500,000.00 354.97 3,550 354.86
5.50%RURAL ELECT CORP LTD 54 EC 31-Mar-2011 – 10,000 – – 500 50.00
6.25% RURAL ELECTRIFICATION CORPORATION
LIMITED - 54 EC - MARCH '09 31-Mar-2012 500 10,000 5,000,000.00 50.00 500 50.00
Sub-total(iv) 404.97 597.83
Mutual Fund
ICICI PRUDENTIAL INTERVAL FUND - ANNUAL
INTERVAL PLAN III - INST CUMMULATIVE 18-Oct-2011 4999800.9290 10.0018 50,007,008.93 500.07 – –
Sub-total(v) 500.07 –
GRAND TOTAL (i+ii+iii+iv+v) 16,375.40 (1,780) 10,234.34
As at 31.3.2011 As at 31.3.2010
Notes: Rs. in lacs Rs. in lacs
1. (a) Aggregate Book Value - Quoted Investments 15,470.36 9,636.50
(b) Aggregate Book Value - Unquoted Investments 905.04 597.83
(c) Total (a + b) 16,375.40 10,234.34
2. Aggregrate Market value of quoted investments Rs. 15,481.67 lacs (Previous year Rs. 9,852.25lacs)
23
As at 31.3.2011 As at 31.3.2010

A. CURRENT ASSETS
1 Interest Receivable :
- On Investments 496.53 189.57
- On Others 5,253.24 5,749.77 4,878.95 5,068.52
2 Sundry Debtors (Considered good)
(Unsecured, considered good)
a Non-Settlement Dues and Others
Over six months 4.69 0.13
2,514.78
Other debts (including dues from
Holding Company Rs.Nil (Previous
Year: Rs.1492.84 lacs)) 455.78 460.47 1,874.76 1,874.89
b Settlement Obligations Recoverable

Over six months – –
Other debts 4.53 4.53 465.00 6.22 6.22 1,881.11
3 Bank Balances
in Current Accounts 2,301.50 20,108.36
in Deposit Accounts * 355,991.12 262,623.71
in Certificate of Deposits 18,964.92 –
377,257.54 282,732.07
4 Other Current Assets
Mutual Funds 52,479.79 131,350.57
Commercial Papers 6,539.10 –
Taxable Bonds 499.56 –
59,518.45 131,350.57
442,990.76 421,032.27
B. LOANS & ADVANCES
Advances recoverable in cash or in kind

or for value to be received 274.20 237.28
Advance tax (Net of Provisions of
Rs. 44111.09 Lacs( Previous 688.09 796.00
Year: Rs.35911.09 Lacs))
Other Deposits 11.71 12.83
974.00 1,046.11
TOTAL 443,964.76 422,078.38
* Includes deposits of Rs.1029.53 lacs ( Previous Year: Rs.964.78 lacs) made on behalf of members out of withheld
payouts/collateral deposits.
24
As at 31.3.2011 As at 31.3.2010

CURRENT LIABILITIES
Sundry Creditors (Refer Note No.2 (f))
(including amount due to holding company
Rs 945.32 Lacs (Previous Year: Rs Nil)
a) Total Outstanding Dues of Micro 0.02 0.15
Enterprises and Small Enterprises
b) Others 1230.23 1230.25 247.56 247.71
Margins From Members 106132.94 127,035.89
Settlement Obligations payable 197162.10 164,828.42
Amount payable to NSEIL IPFT 2.58 91.64
Other Liabilities 1014.02 305,541.89 1,047.36 293,251.02
PROVISIONS
Proposed Dividend 9,000.00 8,550.00
Corporate Dividend Tax 1,460.02 10,460.02 1,420.05 9,970.05
TOTAL 316,001.91 303,221.07

31.3.2011 31.3.2010
Interest on Investments 777.66 607.06
(TDS Rs 0.14 Lacs ( Previous Year : Rs.10.99 lacs) )
(Including Taxfree Income Rs.739.04 lacs
(Previous Year: Rs. 568.63 lacs) )
Interest on Bank Deposits (TDS Rs.1498.92 lacs , 14,906.35 13,356.72
(Previous Year : Rs.1572.38 lacs) )
Interest on delayed Receipt of dues 12.59 13.23
TOTAL 15,696.60 13,977.01
SCHEDULE 9 : OTHER INVESTMENT INCOME

Dividend from Mutual Funds 4,774.30 5,629.23
Profit on Sale/Redemption of Mutual Funds/Bonds (Net)
- Short Term 34.72 1,164.95
- Long Term 2,505.38 2,540.10 2,326.64 3,491.59
TOTAL 7,314.40 9,120.82
25

31.3.2011 31.3.2010

Profit on sale / discard of Fixed Assets (Net) – 0.02
Bad debts written back – 0.02
WAP Difference 2.98 2.67
Software Usage Charges 50.00 68.00
Other Operational income 0.07 0.08
Connect to NSE Services 268.65 190.93
Processing Charges 327.14 260.05
Fines & Penalties 2,021.14 1,259.83
Miscellaneous Income 25.34 28.02
TOTAL 2,695.32 1,809.62
SCHEDULE 11 : ADMINISTRATION & OTHER EXPENSES

Space & Infrastructure Usage Charges 561.47 228.94
Common Usage Expenses (Refer Note No. 1 d (i)) 575.00 475.00
Insurance Premium 10.83 17.45
Printing, Stationery & Consumables 52.86 43.79
Auditors' Remuneration
- Audit fees 5.00 5.00
- Other services 0.13 5.13 – 5.00
Professional fees 274.43 219.14
Repairs & Maintenance :
- On Building 14.86 46.32
- On Computer systems 1,263.26 1,302.29
- Others 13.44 16.20
IT Management & Consultancy Charges 498.05 417.42
Software Expenses 228.95 263.30
Directors' Sitting fees 2.40 2.20
Electricity expenses 130.65 104.60
Rates and Taxes 1.11 1.07
Loss on Sale of Assets (Net) 0.12 –
Amortisation of Premium on Government / Debt Securities 22.64 59.74
(Refer Note No.1e(iii) )
Other expenses 465.85 413.44
TOTAL 4,121.05 3,615.90
SCHEDULE 12 : PAYMENTS TO & PROVISION FOR EMPLOYEES (Refer Note No. 2(h))
Salaries & Allowances 1,192.21 895.08
Contribution to Provident Fund and other Funds 39.32 34.83
Employees' Welfare expenses 63.95 39.00
TOTAL 1,295.48 968.91
26
SCHEDULE 13 : SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS

a) Basis of Accounting :
The financial statements have been prepared to comply in all material respects with the Accounting
Standards notified by Companies (Accounting Standards) Rules, 2006, (as amended) and the
relevant provisions of the Companies Act, 1956. The financial statements have been prepared
under the historical cost convention on an accrual basis except in case of assets for which provision
for impairment is made and revaluation is carried out. The accounting policies have been
consistently applied by the Company and are consistent with those used in the previous year.
b) Use of Estimates :
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial
statements and the results of operations during the reporting period. Although these estimates
are based upon management's best knowledge of current events and actions, actual results could
differ from these estimates.
c) Revenue Recognition :
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
company and the revenue can be reliably measured.
(i) Clearing and Settlement charges, IT & support charges are recognized on accrual basis as
and when the services are rendered.
(ii) In respect of Members who have been declared as defaulters by the company all amounts
(dues) remaining to be recovered, net of available security and insurance cover available if
any, till the date of being declared as defaulters are written off as bad debts. All subsequent
recoveries are accounted when received.
Shortages arising after the date of declaration of default are written off as bad debts in the
year in which it arises, after exhausting all remedies including forfeiture of securities and
insurance cover available if any.
Other overdue amounts are provided for as doubtful debts or are written off as bad debts,
if the same are considered doubtful/irrecoverable in the opinion of the management.
(iii) Penal Charges, in the year of declaration of default, in respect of shortages due from the
respective member, are booked to the extent such charges are recoverable.
(iv) Other insurance claims are accounted on accrual basis when the claims become due and
payable.
(v) Dividend on investments is recognized when a right to receive the same is established.
Income on investments is accounted for on accrual basis.
(vi) Interest is recognized on time proportionate basis taking into consideration the amount
outstanding and the rate applicable.
d) Usage charges & Fixed Assets :
(i) For the assets commonly used by the Company and National Stock Exchange of India Ltd.
(NSEIL) and which are owned by NSEIL, Usage charges are paid to NSEIL at 25 % per
annum of the proportionate Capital Cost of such assets.
27
(ii) Fixed assets are stated at cost (or revalued amounts, as the case may be), less accumulated
depreciation and impairment losses if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for its intended use.
(iii) Depreciation is provided on the "Straight line method" based on estimated useful life of
assets at the following rates which are higher than those prescribed in Schedule XIV (Inserted
by the Companies (Amendment) Act, 1988 and Notification GSR No. 756E dated 16th
December, 1993) to the Companies Act, 1956.Depreciation on additions /deletions is
provided on pro-rata basis from the date of acquisition/ up to the date of deletion.
Assets Depreciation Rate
Office Equipment 25.00%
Furniture & Fixtures
- Movable Furniture 20.00%
- Non movable Furniture 6.33%/10.00%
Computer Systems 33.33 %
Clearing and Settlement Systems 25.00 %
Telecommunications Systems 25.00 %
Dial Based Telecom Network 25.00 %
(iv) Intangibles :-
Intangibles comprising of software are recorded at acquisition cost and are amortized over
the estimated useful life on straight line basis. Depreciation on additions/deletions is provided
on pro-rata basis from the date of acquisition/ upto the date of deletion.
Computer Software 25.00 %
(v) Impairment of Assets :-
The carrying amounts of assets are reviewed at each balance sheet date if there is any
indication of impairment based on internal/external factors. An impairment loss is recognized
wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable
amount is the greater of the asset's net selling price and value in use. In assessing value in
use, the estimated future cash flows are discounted to their present value at the weighted
average cost of capital. After impairment, depreciation is provided on the revised carrying
amount of the asset over its remaining useful life.
e) Investments :
(i) Long term investments are considered as held till maturity and are valued at cost. Provision
is made for diminution in the value of investment, if any, other than temporary in nature.
(iii) Premium/ Discount at the time of acquisition of Government / Debt securities is amortised
/recognised over the residual period of its maturity.
(iv) The cost of investment includes acquisition charges such as brokerage, etc. Front-end
discount / incentive earned in respect of direct subscription are adjusted towards the cost of
investment.
28
f) Income Tax :
Income tax expense for the year, comprising current tax and deferred tax is included in
determining the net profit for the year.
A provision is made for the current tax based on tax liability computed in accordance with
relevant tax rates and tax laws. Deferred tax assets are recognised only to the extent that there is
reasonable certainty that sufficient future taxable income will be available against which such
deferred tax assets can be realised. In situations where the company has unabsorbed depreciation
or carry forward tax losses, all deferred tax assets are recognised only if there is virtual certainty
supported by convincing evidence that they can be realised against future taxable profits. At
each balance sheet date the Company re-assesses unrecognized deferred tax assets. It recognises
unrecognised deferred tax assets to the extent that it has become reasonably certain or virtually
certain, as the case may be that sufficient future taxable income will be available against which
such deferred tax assets can be realised.
The carrying amount of deferred tax assets are reviewed at each balance sheet date. The company
writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably
certain or virtually certain, as the case may be, that sufficient future taxable income will be
available against which deferred tax asset can be realised. Any such write-down is reversed to
the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient
future taxable income will be available.
g) Provisions, contingent liabilities & contingent assets :
Provisions involving substantial degree of estimations in measurement are recognized when
there is present obligation as result of past events and it is probable that there will be outflow of
economic resources. Provisions are not discounted to its present value and are determined based
on best estimate required to settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best estimates.
Contingent liabilities are not recognised but are disclosed while, contingent assets neither are
recognized nor disclosed in financial statements.
h) Earning Per Share:
Basic and diluted earning per share is computed by dividing the net profit attributable to equity
shareholders for the year, by weighted average number of equity shares outstanding during the
year.
2. Notes to Accounts :
a) Contingent Liabilities:
(i) Estimated amount of contracts remaining to be executed on capital account (net of advances)
and not provided for Rs.75.00 Lacs (Previous Year : Rs. 7.60 Lacs)
(ii) Claims against company not acknowledged as debts: Rs. 669.07 Lacs (Previous Year :
Rs. 669.07 Lacs)
(iii) On account of disputed demand of Income tax Rs. 1479.41 Lacs (Previous Year :
Rs. 446.70 Lacs)
b) In the opinion of the Board, current assets, loans and advances are approximately of the value
stated, if realised in the ordinary course of business.
c) During the year, certain assets have been retired from active use and held for disposal/scrap.
The same have been valued at the lower of net book value and net realisable value. The net
realisable value thereof has been considered as Nil in view of the technological obsolescence
thereof.
29
d) Statement of Short investments grouped under ‘Other Current Assets' at the end of the year is
given below :
Particulars No. of As at 31/03/2011 As at
units (Rs. In Lacs) 31/03/2010
Figures in brackets (Rs. In Lacs)
indicates amount No. of Rs. In
earmarked towards SGF units lacs
(I) Commercial Papers
Aditya Birla Finance Limited - CP - 13
Sep 2011 - 8.40% 200.00 922.71 – – –
Nabard - CP - 22 Sep 2011 - 8.00% 200.00 926.11 (926) – –
Reliance Capital Limited - CP - 01 Jul 2011 -
8.05% 200.00 943.80 – –
L&T Finance Company Limited - CP - 27
May 2011 - 8.10% 200.00 951.06 – –
Tata Capital Limited - CP - 05 Oct 2011 - 8.29% 200.00 924.03 – –
Blue Star Limited - CP - 22 Apr 2011 - 8.25% 200.00 961.11 – –
Aditya Birla Finance Limited - CP - 06
Jan 2012 - 10.02% 200.00 910.29 (910) – –
Sub-total (I) 6,539.10 (1,836) – –
(II) Taxable Bonds
7.75% Infrastructure Development Finance
Company Limited 50.00 499.56 – – –
Sub-total (II) 499.56 – – –
(III) Mutual Funds – –
Axis Liquid Fund - IP - Dly Dividend 3,01,435.56 3,014.41 (2,200) – –
Baroda Pioneer Treasury Advantage Fund - IP -
Dly Dividend 2,61,890.17 2,621.28 (2,541) 12565532.4817 1,257.70
Birla Sun Life Cash Plus - I P - Growth – – 85799.9130 15.64
Birla Sun Life Cash Plus - Institutional Premium
Plan - Daily Div 7,80,418.00 78.19 – – –
Birla Sun Life Cash Plus - Institutional Premium
Plan - Growth – – – 1715769.0170 225.29
Birla Sun Life Interval Income Fund Quarterly
Plan - Series 1 - IP - Dividend – – – 5000414.6900 500.04
Birla Sun Life Interval Income Fund Quarterly
Plan - Series II - IP - Dividend – – – 3110000.0000 311.00
Birla Sun Life Savings Fund - IP - Dly Dividend
Reinvestment – – – 2715629.3976 271.75
BNP Paribas Money Plus IP Fund - Daily
Dividend 44,49,668.12 445.10 (93) 119932668.4246 11,996.70
30

BNP Paribas Overnight Fund - IP - Growth – –– – 79296.9840 8.31
Canara Robeco Liquid - IP - Growth – –– – 7604503.4908 1,117.54
Canara Robeco Treasury Advantage Fund -
Super IP - Daily Dividend 12,85,268.82 159.46 – 788276.2618 97.80
DSP BlackRock Liquidity Fund - IP - Dly
Dividend 3,53,819.41 3,539.31 (3,500) – –
DSP BlackRock Liquidity Fund - Regular Plan -
Growth – – 283873.4500 45.75
DWS Ultra Short-Term Fund - Growth – – 169698.5330 17.59
DWS Ultra Short-Term Fund - IP - Dly Dividend 12,37,645.69 123.99 (24) 15484025.3737 1,551.01
Fidelity Ultra Short Term Debt Fund - Super IP -
Dly Dividend – – 28871481.4385 2,887.87
HDFC Cash Mgmt Fund - Savings Plan - Growth – –– – 391559.0900 54.98
HDFC Cash Mgmt Fund - Treasury Advantage -
WP - Dly Div 18,55,605.54 186.15 (1) 121450970.5471 12,183.35
HSBC Cash Fund - I P - Growth – – 820935.4860 93.31
HSBC Cash Fund - Institutional Plus - Growth – – 669172.7580 74.36
HSBC Cash Fund - Reg - Growth – – 137302.0150 14.00
HSBC Ultra Short Term Bond Fund - IP Plus -
Growth – – – 26517362.6730 3,000.52
ICICI Prudential Flexible Income Plan -
Daily Dividiend 3,82,680.63 404.63 (391) 5948788.9648 6,291.29
ICICI Prudential Liquid - I P - Growth – – – 577362.8650 87.01
ICICI Prudential Liquid - Inst Plus - Growth – – – 505719.2750 84.58
ICICI Prudential Liquid - Super IP - Growth – – – 1400738.9960 146.15
ICICI Prudential Ultra Short Term Plan -
Sup Prem - Wkly Dividend 1,06,76,842.29 1,072.96 (1,025) 150132977.4015 15,064.32
IDBI Liquid Fund - Dly Dividend 9,04,774.65 9,047.75 (9,000) – –
IDFC Cash Fund - Plan B - IP - Growth – – – 785495.3490 97.80
IDFC Money Manager - Treasury Plan - Plan C -
Dly Dividend 19,99,262.35 199.96 – 101013131.8226 10,102.83
ING Liquid Fund - IP - Growth – -– – 5657599.4290 620.75
ING Liquid Fund - Super IP - Growth – –– – 2345772.3810 262.70
ING Treasury Advantage Fund - IP - Daily
Dividend – –– – 242365.6649 24.24
ING Treasury Advantage Fund - IP - Growth – –– – 9208193.3290 1,000.19
31

JM High Liquidity - I P - Growth – – 170085.1880 18.16
JM High Liquidity - Super I P - Daily Div 1,58,35,422.09 1,586.16 (1,474) – –
JM High Liquidity - Super I P - Growth – – 3061888.3960 364.40
JM Money Manager Fund - Super Plus Plan -
Daily Dividend 25,35,480.30 253.68 (40) 16410412.6472 1,641.91
JM Money Manager Fund - Super Plus
Plan - Growth – – 13171431.9730 1,500.45
JP Morgan India Treasury Fund - Super IP -
Daily Dividend Reinvestment 15,00,209.29 150.15 (100) 133576052.9191 13,369.49
Kotak Floater - LT - Daily Dividend 19,01,779.28 191.70 (32) 14033530.6381 1,414.55
Kotak Floater - Short Term - Daily Dividend 11,00,88,594.43 11,136.78 (11,000) – –
Kotak Liquid - IP - Growth – – 1031683.5735 125.08
Kotak Liquid - Regular - Growth – – 24740.4100 2.82
L&T Liquid Fund - IP Plus - Growth – – 321482.1430 44.02
PRINCIPAL Cash Mgmt Fund LO - Growth – – 2424256.3700 265.74
PRINCIPAL Cash Mgmt Fund LO- IP- Growth – – 16862.1150 1.86
Principal Ultra Short Term Fund - Reg -
Dly Dividend – – 193746.1043 19.41
Reliance Liquidity Fund - Dly Dividend 8,09,36,179.06 8,097.75 (8,000) – –
Reliance Medium Term Fund - Daily Dividend 4,81,495.80 82.31 (15) 680682.6795 116.37
Religare Fmp - Series IV - Plan B - Dividend 50,00,000.00 500.00 – –
Religare Ultra Short Term Fund - IP -
Daily Dividend 21,488.13 215.25 (167) 83136753.8887 8,326.73
SBI Magnum DFS - 180 Days - 13 - Dividend 8,00,117.00 80.00 – –
SBI Magnum Insta Cash – Daily Dividend 36,65,356.84 613.96 (500) – –
SBI Premier Liquid Fund - Super IP -
Daily Dividend 0.22 0.00 – –
SBI SHF - Ultra Short Term - IP - Daily Dividend 1,75,683.66 17.59 34637155.7241 3,465.59
SBI SHF - Ultra Short Term - Retail - Daily
Dividend 49,739.83 4.98 47231.9017 4.73
Sundaram BNP Paribas Ultra Short Term -
Super IP - Growth – – 24108809.0640 2,629.81
Sundaram Money Fund - IP - Growth – – 16269.3200 2.31
Sundaram Money Fund - Super IP - Dly Div 1,07,82,427.40 1,088.52 (1,000) 263842.2061 26.64
Tata Floater Fund - Daily Div 16,95,469.51 170.15 52781290.3682 5,296.92
Tata Liquid Fund - SHIP - Growth – – 6494.0734 84.01
32

Templeton Floating Rate Income Fund - Super IP
- Dly Dividend 1,51,691.90 15.18 (13) 150731848.4260 15,088.26
Templeton India TMA - Super IP - Dly Div 6,37,765.61 6,381.95 (6,301) – –
Templeton India Ultra Short Bond Fund - S
uper IP - Dividend 26,60,829.06 266.39 (182) 70518524.0892 7,060.03
UTI Fixed Income Interval Fund - Quarterly
Plan III - IP - Dividend – – 5000393.2900 500.04
UTI Liquid Fund - Cash Plan - IP - Growth – – 4122.0770 43.87
UTI Money Market - IP - Dly Dividend 27,937.84 280.32 – –
UTI Treasury Advantage Fund - IP - Dly
Dividend 45,368.21 453.78 (217) 43090.0924 430.99
Sub-total (III) 52,479.80 (47,816) 1,31,350.57
Grand Total (I) + (II) + (III) 59,518.45 (49,652) 1,31,350.57
e) Statement of Investments Purchased and Sold/Redeemed during the year at cost is given below:
Particulars No. of Units Cost (Rs. in Lacs)
Certificate of Deposits :
PUNJAB NATIONAL BANK - CD - 24 DEC 2010 - 7.50% 2500 2,468.07
AXIS BANK LIMITED - CD - 21 JAN 2011 - 8.50% 500 494.72
Commercial Papers :
TATA CAPITAL LIMITED - CP - 09 FEB 2011 - 7.60% 200 964.84
TATA MOTORS FINANCE LIMITED - CP - 10 DEC 2010 - 7.30% 200 978.09
RAYMOND LIMITED - CP - 15 NOV 2010 - 7.42% 200 982.62
L&T INFRASTRUCTURE FINANCE COMPANY LIMITED - CP -
25 JAN 2011 - 7.90% 200 974.69
HCL INFOSYSTEMS LIMITED - CP - 17 JAN 2011 - 8.00% 200 980.66
ADITYA BIRLA FINANCE LIMITED - CP - 25 JAN 2011 - 8.40% 200 979.71
SUNDARAM FINANCE LIMITED - CP - 10 MAR 2011 - 8.27% 200 970.96
MAHINDRA & MAHINDRA FINANCIAL SERVICES LIMITED - CP
- 11 FEB 2011 - 8.40% 200 979.49
HCL INFOSYSTEMS LIMITED - CP - 17 FEB 2011 - 8.75% 200 978.88
Mutual Funds:
Axis Liquid Fund - Institutional - Daily Dividend 15,49,927.78 15,499.78
33
Baroda Pioneer Liquid Fund - Institutional Daily Dividend Plan 57,98,13,146.25 58,027.53
Baroda Pioneer Treasury Advantage Fund - Institutional Daily
Dividend Plan 26,59,33,942.12 26,617.59
Birla Sun Life Cash Plus - Instl Prem - Daily Dividend - Reinvestment 11,21,88,345.32 11,240.71
Birla Sun Life Interval Income Fund - Instl - Quarterly - Series 1 -
Dividend 61,394.09 6.14
Birla Sun Life Interval Income Fund - Instl - Quarterly - Series 2 -
Dividend 36,531.30 3.65
Birla Sun Life Savings Fund - Instl - Daily Dividend - Reinvestment 7,14,55,914.62 7,150.45
BNP Paribas Money Plus Institutional Plan - Daily Dividend 18,42,526.14 184.32
Canara Robeco Liquid Super Instt Daily Div Reinvest Fund 22,28,22,368.31 22,404.79
DSP Blackrock Fmp - 3 Months - Series 22 - Dividend 50,79,454.50 507.95
DSP Blackrock Liquidity Fund - Institutional Plan - Daily Dividend 34,52,602.30 34,536.94
DSP Blackrock Money Manager Fund - Institutional Plan - Daily
Dividend 23,079.65 230.98
DWS Insta Cash Plus Fund - Super Institutional - Daily Dividend -
Reinvest 26,20,24,811.18 26,282.14
DWS Ultra Short Term Fund - Institutional Daily Dividend 16,19,41,604.19 16,223.15
Fidelity Cash Fund - Super IP - Daily Dividend 2,93,96,980.31 3,005.49
Fidelity FMP Series 2 - Plan A - Daily Dividend 50,59,318.29 505.93
Fidelity Ultra Short Term Debt Fund Super Institutional -
Daily Dividend 3,69,031.74 36.92
HDFC Cash Management Fund -Treasury Advantage Plan - Wholesale
- Daily Dividend 31,17,150.65 312.70
HDFC Liquid Fund Premium Plan - Dividend - Daily Reinvest 53,037.84 6.50
HSBC Cash Fund Institutional Plus-Daily Dividend-Reinvestment 1,49,93,009.03 1,500.14
HSBC Floating Rate - Long Term Plan - Institutional Option - Weekly
Dividend 1,33,78,644.77 1,503.38
ICICI Prudential Flexible Income Plan Premium - Daily Dividend 1,16,691.70 123.38
ICICI Prudential Inst Liquid Plan - Super Institutional Daily Dividend
- Reinv 5,70,21,672.32 57,034.33
ICICI Prudential Interval Fund III - Quarterly Interval Plan -
Inst Dividend 50,77,061.53 507.71
ICICI Prudential Ultra Short Term Plan Super Premium Weekly
Dividend 21,51,69,907.75 21,616.37
34
IDBI Liquid Fund - Daily Dividend - Reinvestment 30,09,18,372.59 30,091.84

IDFC Cash Fund - Super IP - Plan C - Daily Dividend Reinvestment 55,01,496.24 550.29
IDFC Money Manager Fund - TP - Super Inst Plan C - Daily Dividend 12,40,830.22 124.10
ING Treasury Advantage Fund - Institutional Daily Dividend 1,604.29 0.16
JM High Liquidity Fund - Super Institutional Plan - Daily Dividend 70,54,95,931.71 70,666.00
JM Money Manager Super Plus Plan - Daily Dividend 1,65,430.17 16.55
JPMorgan India Liquid Fund - Super Inst Daily Dividend Plan -
Reinvest 76,87,21,542.28 76,932.88
JPMorgan India Treasury Fund - Super Inst. Daily Div Plan - Reinvest 14,10,85,519.87 14,121.11
Kotak Floater - Short Term - Daily Dividend 9,88,51,347.34 10,000.00
Kotak Floater Long Term - Daily Dividend 14,85,61,168.70 14,974.67
Kotak Liquid Institutional Premium Plan-Daily Dividend-
Reinv 34,86,53,679.57 42,633.72
Kotak Quarterly Interval Plan - Series 1 - Dividend 53,37,396.25 533.74
Kotak Quarterly Interval Plan Series 10 - Dividend 6,80,014.89 68.00
Kotak Quarterly Interval Plan Series 6 - Dividend 50,79,828.94 507.98
Principal Ultra Short Term Fund - Dividend Reinvestment - Daily 3,719.95 0.37
Principal Ultra Short Term Fund - Dividend Reinvestment - Monthly 1,88,275.87 19.79
Reliance Liquidity Fund -Daily Dividend 23,60,86,556.75 23,620.70
Reliance Medium Term Fund - Daily Dividend Plan 5,90,77,212.51 10,099.78
Reliance Money Manager Fund-Institutional Option - Daily
Dividend Plan 8,02,336.48 8,034.37
Religare Fmp - Series IV - Plan C ( 3 Months) - Dividend 55,88,673.57 558.87
Religare Liquid Fund - Institutional Daily Dividend 3,79,973.03 38.01
Religare Liquid Fund - Super Institutional Daily Dividend 23,60,08,577.86 23,853.26
Religare Ultra Short Term Fund - Institutional Daily Dividend 7,04,20,454.84 7,057.21
SBI - Magnum Insta Cash Fund - Daily Dividend Option 38,18,15,323.57 63,955.21
SBI Magnum SDFS - 90 Days - 35 - Dividend 2,03,109.42 20.31
SBI Premier Liquid Fund - Institutional Daily Dividend 4,01,73,973.73 4,030.45
SBI Premier Liquid Fund - Super Institutional - Daily Dividend 11,79,60,367.79 11,834.37
SBI-SHF- Ultra Short Term Fund - Institutional Plan -
Daily Dividend 16,29,95,709.01 16,309.35
Sundaram Money Fund - Super Institutional - Dividend -
Daily Reinvest 19,13,98,635.59 19,322.27
35
Sundaram Money Fund - Super Institutional - Dividend - Daily Reinvset 4,33,106.49 43.72
Sundaram Ultra Short Term Fund Super Inst Daily Dividend Reinv 3,72,469.97 37.38
Tata Fixed Income Portfolio Fund - Scheme B2 - Institutional Dividend 49,93,458.57 500.00
Tata Floater Fund - Daily Dividend 19,09,880.09 191.67
Tata Liquid Super High Investment Fund - Daily Dividend 13,98,974.38 15,591.85
Templeton Floating Rate Income Fund Super Inst Option -
Daily Dividend Reinvest 16,48,04,518.80 16,497.06
Templeton India Treasury Mgmt Account Super Institutional Plan -
Daily Dividend 49,18,045.42 49,213.55
Templeton India Ultra Short Bond Fund Super Inst Plan - Daily
Dividend Reinvest 14,56,43,690.26 14,581.26
UTI Fixed Income Interval Fund - Quarterly Interval Plan Sr III -
Inst Div Rein 7,26,223.39 72.62
UTI Fixed Income Interval Fund - Quartly Interval Plan Sr I -
Dividend Plan - PO 2,03,013.33 20.30
UTI Liquid Cash Plan-Institutional Plan-Income-Daily Reinvestment 8,383.20 85.46
UTI Money Market Fund - Institutional Plan - Daily Dividend 9,65,232.30 9,685.00
f) Sundry creditors include overdue amounts of Rs. 0.02 Lacs (Previous Year: Rs. 0.15 Lacs)
(including interest of Rs. Nil, (Previous Year Rs. Nil) payable to Micro, Small & Medium
Enterprises. Total outstanding dues to Micro, Small & Medium Enterprises have been determined
to the extent such parties have been identified on the basis of information available with the
Company.
g) Expenditure in foreign currency :
Travelling Expenses: Rs. 0.23 Lacs (Previous Year: Rs. 1.45 Lacs)
Others: Rs. 2.10 Lacs (Previous Year: Rs. 11.75 Lacs)
h) Payments to and provision for employees represents the amount reimbursed by the company to
The National Stock Exchange of India Limited (NSEIL) in respect of employees made available
to the company. It includes all charges relating to all retirement benefits and other long term
employee benefits as per the requirements of Accounting Standard 15-"Employee Benefits"
issued by the Institute of Chartered Accountants of India .The necessary provisions are carried
by NSEIL.
i) The Company has constituted separate Settlement Guarantee Funds (SGF) in respect of the
Capital Market, Futures & Options Market, Retail Debt Market segments and Currency
Derivatives Market.
The Clearing members are required to contribute to the respective fund in the form of interest
free security deposit and also make additional deposits in the form of cash, securities, fixed
36
deposit receipts or bank guarantees. Besides the same, the Clearing members are also required
to deposit margin money which, subject to hair cut, forms part of the SGF. While the interest
free security deposit is not refundable during the tenure of a clearing membership, the margin
money is refundable, subject to adjustments, if any.
Of this, the interest free security deposit and security deposit in the form of cash collected from
members amounting to Rs.357.43 Crores are grouped under the head "Unsecured Deposits"
whereas the cash margin amounting to Rs.1061.32 Crores collected from members (Rs. 1050.09
Crores after applying hair cut) has been grouped under the head "Current Liabilities & Provisions".
The non cash portion of the SGF comprising of collaterals such as bank guarantees, securities
and fixed deposit receipts received from the members amounting to Rs.42,718.45 Crores
(Rs. 34,309.39 Crores after applying hair cut) does not form part of the Balance Sheet.
(Rs. in crores)
Sr. Segment Total Cash Non Cash Component
No. SGF Component Bank Securities Fixed Deposit
Guarantees Receipts
1 Capital market 5,100.35 362.94 1413.67 567.84 2,755.90
2 Futures & Options 29,759.79 956.73 4,998.98 4,685.98 19,118.10
3 Retail Debt Market 3.15 1.70 0.40 1.05
4 Currency Derivatives 853.57 86.10 150.68 290.34 326.45
Total 35,716.86 1,407.47 6,563.73 5,544.16 22,201.50
The breakup of Cash Component in each SGF is as follows:

(Rs. in crores)
March 2011
Sr. Segment Interest Free Security Margins Total
No. Security Deposit
Deposit
1 Capital market 147.16 19.32 196.51 362.99
Less : Net Shortages 0.05
Net Amount 62.94
2 Futures & options 120.50 30.93 805.30 956.73
3 Retail Debt Market – 1.70 – 1.70
4 Currency Derivatives 30.00 7.82 48.28 86.10
Total 297.66 59.77 1,050.09 1,407.47
5 Amount not forming part of SGF 24.69 2.37 11.23 38.35
TOTAL 322.35 62.14 1,061.32 1,445.82
(Balance Sheet ref. no) (ref no. I/2(a)) (ref no. I/2(a)) (Schedule7)
*after adjusting net shortages amounting to Rs. 0.05 Crore
37
The above cash component of SGF has been earmarked as under:

(Rs. in Crores)
Sr. Particulars Amount Balance Sheet Earmarked
No. Reference No. Amount
1 Long term Investments 163.75 II/2 17.80
2 Short Term Investments 595.18 II/3(4) 496.52
3 Balances with Banks
in Current Account 23.02 Sch.6/A.3 14.92
in Deposit Accounts 3559.92 Sch.6/A.3 810.18
In Certificate of Deposits 189.65 Sch.6/A.3 68.10
Total (1 to 3) 4531.52 1407.52
A) Capital Market Segment:

I. Cash component in form of Interest Free Security Deposit of Rs. 147.16 Crores is
earmarked as under:
Particulars Amount
(Rs. in Crores)
Mutual Funds
RELIANCE MEDIUM TERM FUND - DAILY DIVIDEND PLAN 0.15
TATA FMP - SERIES 29 - PLAN A - GROWTH 2.56
Total Mutual Funds 2.71
Flexi Fixed Deposits
FLEXI FIXED DEPOSITS WITH HDFC BANK 35.26
FLEXI FIXED DEPOSITS WITH ICICI BANK 4.87
FLEXI FIXED DEPOSITS WITH STAN CHART BANK 0.97
Total Flexi Fixed Deposits 41.10
Fixed Deposits
7.45% YES BANK LIMITED 19.43
9.77% BANK OF BARODA 9.79
8.18% AXIS BANK LIMITED 15.00
Total Fixed Deposits 44.22
Certificate Of Deposit
CORPORATION BANK - CD - 07 SEP 2011 - 8.50% 13.98
AXIS BANK LIMITED - CD - 16 JAN 2012 - 9.80% 12.59
ICICI BANK LIMITED - CD - 19 AUG 2011 - 8.75% 23.46
Total Certificate Of Deposit 50.03
Commercial Paper
ADITYA BIRLA FINANCE LIMITED 9.10
38
II Cash component in form of Security Deposit of Rs. 19.32 Crores is earmarked as under:
Particulars Amount
(Rs. in Crores)
Flexi Fixed Deposits with HDFC Bank 19.32
III Cash component in form of Margins of Rs. 196.51 Crores is earmarked as under:
Particulars Amount
(Rs. in Crores)
Mutual Funds
Axis Liquid Fund-Institutional- Daily Dividend 22.00
BARODA PIONEER TREASURY ADVANTAGE FUND - IP - DLY DIVIDEND 0.03
JM HIGH LIQ FUND - SUPER INST DAILY REINVEST 14.74
KOTAK FLOATER LONG TERM - DAILY DIVIDEND 0.32
SBI-MAGNUM INSTA CASH FUND-DAILY DIVIDEND OPTION 5.00
UTI TREASURY ADVANTAGE FUND - IP - DAILY DIVIDEND 0.47
FLEXI FIXED DEPOSITS WITH AXIS BANK 5.86
FLEXI FIXED DEPOSITS WITH CANARA BANK 0.03
FLEXI FIXED DEPOSITS WITH ICICI BANK 7.88
FLEXI FIXED DEPOSITS WITH CITIBANK 7.31
FLEXI FIXED DEPOSITS WITH HSBC BANK 7.09
FLEXI FIXED DEPOSITS WITH STANDARD CHARTERED BANK 25.41
Fixed Deposits
7.50% STATE BANK OF TRAVANCORE 13.00
7.10% STATE BANK OF BIKANER & JAIPUR 1.64
8.85% YES BANK LIMITED - CM MARGIN 17.00
8.65% CENTRAL BANK OF INDIA - CM MARGIN 8.00
7.50% IDBI BANK - CM MARGIN 0.95
39
B) Futures & Options Segment:

I. Cash Component in form of Interest Free Security Deposit of Rs.120.50 Crores earmarked as under:
Particulars Amount
(Rs. in Crores)
Taxfree Bonds
6.85% INDIA INFRASTRUCTURE FINANCE COMPANY LIMITED -
SERIES I - 22 JAN 2014 10.24
Total Taxfree Bonds 10.24
Fixed Deposits
8.66% IDBI BANK - F&O SETT FUND 5.00
9.77% BANK OF BARODA 2.00
9.62% PUNJAB NATIONAL BANK 9.84
9.32% FEDERAL BANK LIMITED - 2011 24.76
8.18% AXIS BANK LIMITED 5.27
Commercial Paper
NABARD - CP - 22 SEP 2011 - 8.00% 9.26
Certificate Of Deposit
AXIS BANK LIMITED CD16 JAN 2012 - 9.80% 8.47
IDBI BANK - CD - 10 MAY 2011 - 8.60% 9.60
Total Certificate of Deposit 18.07
Mutual Funds
ICICI PRUDENTIAL ULTRA SHORT TERM PLAN SUPER PREMIUM
WEEKLY DIVIDEND 0.25
FLEXI FIXED DEPOSIT ICICI BANK 18.49
FLEXI FIXED DEPOSIT HDFC BANK 1.95
FLEXI FIXED DEPOSIT BANK OF INDIA 15.37
II Cash Component in form of Security Deposit of Rs.30.93 Crores earmarked as under:

Particulars Amount
(Rs. in Crores)
40
III Cash Component in form of Margins of Rs. 805.30 Crores is earmarked as under
Particulars Amount
(Rs. in Crores)
Mutual Funds
BARODA PIONEER TREASURY ADVANTAGE FUND - IP - DLY
DIVIDEND 0.38
DSP BLACKROCK LIQUIDITY FUND - INSTITUTIONAL PLAN - DAILY
DIVIDEND 35.00
DWS ULTRA SHORT TERM FUND - INSTITUTIONAL DAILY DIVIDEND 0.24
TEMPLETON INDIA TREASURY MGMT ACCOUNT SUPER
INSTITUTIONAL PLAN - DAILY DIVIDEND 63.01
TEMPLETON INDIA ULTRA SHORT BOND FUND SUPER INST PLAN -
DAILY DIVIDEND REINVEST 1.82
TEMPLETON FLOATING RATE INCOME FUND LONG TERM SUPER INST
- DAILY DIVIDEND REINV 0.13
BNP PARIBAS MONEY PLUS IP FUND - DAILY DIVIDEND 0.93
HDFC CASH MANAGEMENT FUND -TREASURY ADVANTAGE PLAN -
WHOLESALE - DAILY DIVIDEND 0.01
IDBI LIQUID FUND - DAILY DIVIDEND - REINVESTMENT 90.00
JM MONEY MANAGER SUPER PLUS PLAN - DAILY DIVIDEND 0.40
JPMORGAN INDIA TREASURY FUND - SUPER INST. DAILY DIV PLAN -
REINVEST 1.00
KOTAK FLOATER - SHORT TERM - DAILY DIVIDEND 110.00
ICICI PRUDENTIAL FLEXIBLE INCOME PLAN PREMIUM -
DAILY DIVIDEND 3.91
RELIANCE LIQUIDITY FUND -DAILY DIVIDEND REINVESTMENT 80.00
RELIGARE ULTRA SHORT TERM FUND - INSTITUTIONAL DAILY
DIVIDEND 1.67
SUNDARAM MONEY FUND - SUPER INSTITUTIONAL - DIVIDEND -
DAILY REINVEST 10.00
UTI TREASURY ADVANTAGE FUND - INSTITUTIONAL PLAN - DAILY
DIVIDEND - RE-INVEST 1.71
Fixed Deposits
7.50% STATE BANK OF TRAVANCORE - 0.60
7.50% IDBI BANK - F&O MARGIN - AUGUST '10 1.25
10.30% IDBI BANK - F&O MARGIN 10.05
9.78% STATE BANK OF PATIALA - F&O MARGIN 25.00
8.05% AXIS BANK LIMITED - F&O MARGIN 10.72
8.08% YES BANK LIMITED - F&O MARGIN 20.00
41
Particulars Amount
(Rs. in Crores)
FLEXI FIXED DEPOSIT BANK OF INDIA 10.20
FLEXI FIXED DEPOSIT AXIS BANK 12.34
FLEXI FIXED DEPOSIT CANARA BANK 6.13
FLEXI FIXED DEPOSIT ICICI BANK 3.27
FLEXI FIXED DEPOSIT INDUSIND BANK 6.45
FLEXI FIXED DEPOSIT HSBC BANK 4.35
FLEXI FIXED DEPOSIT KOTAK MAHINDRA BANK LTD. 13.32
FLEXI FIXED DEPOSIT IDBI BANK 3.15
FLEXI FIXED DEPOSIT CITI BANK LTD. 94.71
FLEXI FIXED DEPOSIT STANDARD CHARTERED BANK 5.83
FLEXI FIXED DEPOSIT UNION BANK 14.31
C) Retail Debt Market Segment :

Cash component in form of Cash Deposit of Rs. 1.70 Crores is earmarked as under:
Particulars Amount
(Rs. in Crores)

D) Currency Derivative Segment:

I. Cash component in form of Interest Free Security Deposit of Rs. 30.00 Crores is earmarked as under:
Particulars Amount
(Rs. in Crores)
Mutual Funds
ICICI PRUDENTIAL FMP SERIES 56 - 1 YEAR PLAN D CUMMULATIVE 5.00
ICICI PRUDENTIAL ULTRA SHORT TERM PLAN SUPER PREMIUM
WEEKLY DIVIDEND 10.00
Bank Balances
BANK OF INDIA 0.06
CITI BANK 0.11
Total Bank Balances 0.17
CITI BANK 0.85
BANK OF INDIA 1.72
STANDARD CHARTERED BANK 0.41
KOTAK MAHINDRA BANK LTD 0.51
42
CANARA BANK 0.15

AXIS BANK 1.19
II Cash component in form of CDS Security Deposit of Rs. 7.82 Crores is earmarked as under:
Particulars Amount
(Rs. in Crores)
HDFC BANK LTD 3.01
AXIS BANK 0.74
Bank Balances
ICICI 4.07
III Cash component in form of CDS Margins of Rs. 48.28 Crores is earmarked as under:
Particulars Amount
(Rs. in Crores)

Bank Balances
ICICI Bank 10.68
HDFC Bank 3.96
CITI BANK 5.06
STANDARD CHARTERED BANK 2.66
BANK OF INDIA 1.45
INDUSIND BANK 0.41
AXIS BANK 9.06
j) In the opinion of the management, as the Company's operations comprise of only facilitating
Clearing & Settlement in securities and the activities incidental thereto within India, the
disclosures required in terms of Accounting Standard 17 - "Segment Reporting" issued by the
Institute of Chartered Accountants of India are not applicable.
k) In compliance with Accounting Standard 18 "Related Party Disclosures" issued by the Institute
of Chartered Accountants of India, the required disclosures are given in the table below:
43
A) Name of related parties and relationship:

Sr. No. Related Party Nature of Relationship
1 National Stock Exchange of India Limited (NSE) Holding Company
2 NSE.IT Limited Fellow Subsidiary
3 NSE Infotech Services Limited Fellow Subsidiary
4 Dot Ex International Limited Fellow Subsidiary
5 National Commodity Clearing Limited Fellow Subsidiary
6 NSE .IT (UK) Limited Fellow Subsidiary
7 NSE .IT (US) Inc. Fellow Subsidiary
8 India Index Services & Products Ltd. Fellow Subsidiary
9 Power Exchange India Limited Fellow Subsidiary
10 (1) Mr. Ravi Narain - Chairman
(2) Ms.Chitra Ramkrishna - Managing Director & CEO Keymanagement Personnel
B) Details of transactions (including service tax wherever levied) with related parties are as follows:
(Rs in Lacs)
Name of the Nature of Transactions Year ended Year ended
Related Party 31/03/2011 31/03/2010
National Stock • Clearing and Settlement charges received 13223.86 10579.01
Exchange of
India Ltd. • Usage charges paid 634.23 523.93
• Reimbursement paid for expenses on staff on
deputation 1367.99 1030.01
• Reimbursement paid for other expenses incurred 2040.97 1830.80
• Space & Infrastructure Usage Charges paid 608.44 242.13
• Dividend paid 8550.00 5175.00
• Reimbursement received for services Rendered – –
• Outstanding balance - (Credit) / Debit 945.00 1492.84
NSE.IT Ltd. • SGL - Related charges received – –
• Repairs & Maintenance - Clearing & Computer
systems 114.61 74.48
• Outstanding balance - (Credit) / Debit (13.70) (9.64)
National • Amount received for sale of assets – –
Commodity
Clearing Ltd. • Software usage charges paid 55.15 55.15
• Outstanding Balance (Credit)/Debit – –
NSE Infotech • SGL- Related charges received – 0.01
Services
Limited • Repairs & Maintenance - Clearing & Computer
systems 600.85 604.79
• Outstanding balance - (Credit) / Debit (173.80) (131.21)
Power Exchange • Clearing and Settlement charges received – 49.19
of India Ltd
• Interest on late payment of Clearing & Settlement
charges – 2.48
• Outstanding balance - (Credit) / Debit – –
44
l) In accordance with Accounting Standard - 20 "Earning per Share" issued by the Institute of Chartered
Particulars Year ended Year ended
31/03/2011 31/03/2010
Net Profit attributable to Shareholders (Rs. in Lacs) 23,812.65 22,602.03
Weighted Average number of equity shares issued
(No. in Lacs ) 450 450
The Company does not have any outstanding dilutive potential equity shares. Consequently, the basic
and diluted earning per share of the Company remain the same.
m) In accordance with the provisions of Accounting Standard-22 relating to "Accounting for taxes on
income", the breakup of deferred tax liabilities/ (Asset) is shown below:-
(Rs. in Lacs)
Related to Depreciation 41.20 15.83
Total Deferred Tax Liabilities 41.20 15.83
n) During the year, the company has reviewed its fixed assets for impairment loss as required by
Accounting Standards - 28 'Impairment of Assets'. In the opinion of management no provision for
impairment loss is considered necessary.
o) Previous year's figures are regrouped, reclassified and rearranged wherever necessary.
p) Information with regard to other matters specified in Clauses 3, 4C & 4D of Part II to Schedule VI of
the Companies Act,1956 are either nil or not applicable to the company.

PRASAD V. PARANJAPE Y. H. MALEGAM R. H. PATIL


Date : April 28, 2011 Asst. Company Secretary
45
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2011
2010-11 2009-10
A) CASH FLOW FROM OPERATING ACTIVITIES

Net Profit before tax and Prior Period Adjustment 32,038.02 29,696.32
Add: Adjustments for :

Depreciation for current year 249.76 234.78
Amortisation of Premium on Govt/Debt Securities 22.64 59.74
Less: Adjustments for :

(Profit)/Loss on sale of fixed assets 0.12 (0.02)
Interest Income on short term Investments – (0.47)
Interest Income on long term Investments (777.66) (606.59)
Interest income on Bank Deposit (14,906.35) (13,356.72)
Profit on sale / redemption of Investments (2,540.10) (3,491.59)
Dividend on Investment (4,774.30) (5,629.23)
Operating Profit Before Working Capital Changes 9,312.13 6,906.22
Adjustments for :
Sundry Debtors 1,416.11 (1,538.93)
Loans & Advances (35.80) (181.62)
Current Liabilities & Provisions 12,290.86 21,638.89
Cash Generated from Operations 22,983.30 26,824.56
Direct taxes paid (Net of Refunds) (8,092.10) (7,114.88)
Net Cash from (used in) Operating Activities - Total (A) 14,891.20 19,709.68
B) CASH FLOW FROM INVESTING ACTIVITIES

Purchase of Fixed Assets / Capital Work in progress (402.43) (340.05)
Sale of Fixed Assets 1.56 0.85
Interest Income received 15,002.76 12,641.30
Dividend on Investment 4,774.30 5,629.23
(Increase)/Decrease in Investment 68,208.52 (8,697.51)
Net cash from (used in) Investing activities - Total (B) 87,584.71 9,233.82
46
C) CASH FLOW FROM FINANCING ACTIVITIES

Proceed of deposit from Clearing members / Applicant 7,131.00 14,729.50
Refund of deposit to Clearing members / Applicant (5,111.40) (14,487.54)
Dividend Paid (incl. corporate dividend tax) (9,970.05) (6,054.49)
Net cash from (used in) financing activities - Total (C ) (7,950.45) (5,812.53)
Net Increase/(Decrease) in Cash & Cash equivalents (A+B+C) 94,525.47 23,130.97
Cash and Cash Equivalents : Opening Balance 282,732.07 259,601.10

(includes fixed deposit with banks of Rs.2,62,624 lacs)
(Previous Year : Rs.2,51,688.47 lacs)
Cash and Cash Equivalents : Closing Balance 377,257.54 282,732.07

(includes fixed deposit with banks of Rs.3,55,991.12 lacs)
(Previous Year : Rs.2,62,624 lacs)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENT 94,525.47 23,130.97

1 Cash and Cash equivalent represent bank balances and balances in fixed deposit accounts.
2 The above Cash Flow Statement has been prepared under the " Indirect Method" as set out in Accounting
Standard-3 on Cash Flow Statements issued by the Institute of Chartered Accountants of India.

PRASAD V. PARANJAPE Y. H. MALEGAM R. H. PATIL


47

(Information pursuant to Notification No. GSR No. 388(E) [F. No. 3/24/94 - CLV] dated 15-5-95, issued by
The Department of Company Affairs, Ministry of Law, Justice and Company Affairs)
(Part IV of Schedule VI to the Companies Act, 1956)
Registration No. * 9 2 2 8 3 State Code 1 1

Date Month Year
II Capital raised during the year (Amount in Rs. thousand)

N I L N I L

N I L N I L
III Position of Mobilisation and Deployment of Funds (Amount in Rs. thousand)

** 1 4 4 9 9 6 0 0 * 1 4 4 9 9 6 0 0
Sources of Funds
* * * 4 5 0 0 0 0 * * 9 3 6 2 7 9 7
Secured Loans Unsecured Loans

N I L * * 5 1 3 2 6 8 3

* * * * * 4 1 2 0
* * * * 6 5 7 7 5 * * 1 6 3 7 5 4 0

* 1 2 7 9 6 2 8 5 * * * * * * N I L
Accumulated Losses
* * * * * * N I L
48
IV Performance of Company (Amount in Rs. thousand)

Turnover / Total Income Total Expenditure
* 3 7 7 0 4 3 1 * * * 5 6 6 6 2 9

* * 3 2 0 3 8 0 2 * * 2 3 8 1 2 6 5

* * * * 5 2 . 9 2 2 0 0
Item Code No. N A

(ITC Code)
Product C L E A R I N G A N D
Description S E T T L E M E N T O F
S E C U R I T I E S

Y. H. MALEGAM R. H . PATIL
Director Director

49
Y Y
NSE.IT LIMITED
TWELFTH ANNUAL REPORT

2010 - 11
Y Y
NSE.IT Limited Twelfth Annual Report
BOARD OF DIRECTORS

Mr. Ramesh Padmanabhan : Managing Director & Chief Executive Officer
Mr. Bharat Doshi
Ms. Chitra Ramkrishna
Mr. Dileep Choksi
Mr. J. Ravichandran
Dr. R. H. Patil
Mr. V. Babuji
MANAGEMENT TEAM
Mr. Manoj Uppal : Sr. Vice President

Mr. V. Rajaraman : Vice President
Mr. Shailesh Chitre : Vice President
Mr. Anand Pachchhapur : Vice President
Mr. Kankesh Kamath : Chief Financial Officer
Ms. Anupama Pillai : Head - Human Resources
Mr. Chirag Shah : Company Secretary
AUDITORS : Gokhale & Sathe

302/303, Udyog Mandir No. 1
7-C, Bhagoji Keer Marg,
Mahim, Mumbai - 400 016
REGISTERED OFFICE : Trade Globe, Ground Floor,

Andheri-Kurla Road
Andheri (East), Mumbai - 400 059
EXECUTIVE SUMMARY
Dear Shareholders,
The economy evidenced signs of recovery in the previous year after having witnessed a global downturn in the recent
past. The Company formulated a strategy based on its existing customers and its strength, a large part of which was
successful and the Company was able to achieve a turnover of 10,304 lakhs which was 28% higher than the previous
corresponding year.
Continuing with its foray in online examinations, the IRDA project for achieving 100% online examination status by
year end was undertaken by the Company across the country and implemented in record time of
9 months. This also included achieving important milestones of 100 new centers within 6 months and
200+ centers going live by end of December 2010 within six months of starting the project. The assessments are
conducted pan India for the insurance companies and the Company executes the end-to-end process from registration
to examination certificates. During the year the Company worked on adding new customers and bid for various tenders
and requirements. The Company was successful in adding new clients such as NCFM, ITB, CCIL, IBPS etc to its
customer list.
The assessments are conducted pan India for the insurance companies and the Company executes the end-to-end
process from registration to examination certificates. The high end technology framework along with the robust monitoring
system provided by the Company facilitates the conduct of the examinations in a transparent and efficient manner. The
Company intends to leverage the same along with state-of-the-art facility by engaging with similar other organizations/
institutions in the current year. The Company's total centers touched a figure of 220.
During the year the Company embarked on quality journey to certify its online examination centers for ISO 9001:2008
certification. NSE.IT through all the steps of ISO such as gap analysis, documentation, implementation of documented
processes, internal auditing, training and awareness. After extensive rounds of internal and external quality implementation
efforts in past six months and audits conducted across country by Bureau Veritas Certification India (BVCI) auditors till
first week of March, NSE.IT has been certified for ISO 9001:2008 by BVCI for its Online Examination Services.
During the year, Company has added to its product portfolio with the introduction of an Algorithmic Trading solution,
called AlgoStudio. The product provides various standard algorithmic trading strategies (viz.
Cash-Futures arbitrage, Futures-Futures arbitrage, Cash-Cash arbitrage, Conversion/Reversal, Box Spread) as well as
custom strategies, taken up as be-spoke development
The most important achievement for the Tea Board e-Auction project this year, was winning the coveted Bronze medal
in the National e-Governance Awards 2011, under the category - Specific Sectoral Award (Focus Sector for 2010-11 -
Agriculture).
The e-Auction program went 100% live in Siliguri this year. This marked 100% sale of tea through e-Auction route
across all the six auction centres. Around 370 million kg of tea was sold this year, totaling the sales figure to 610 million
kg since inception with a monetary worth of around 6100 crore rupees.
In the Product space, the Company has partnered with a niche technology provider for developing high end algorithmic
trading solutions for the Indian capital market that will replace the traditional methods of trading and provide brokers
and financial intermediaries to trade in real time without human intervention. The Company will launch various
algorithmic trading products for the capital market in the ensuing year to cater to the needs of the financial intermediaries.
On the talent front, the Company evidenced handsome growth by adding 186 new employees to its pool of resources
thereby taking up the number to 714. The Company took various initiatives towards grooming of the employees by
rolling out various training programs in the previous year. The Company continues to focus on building a pool of
talented resources who can deliver world class solutions to the customers
With a strong existing clientele and new customers with high potential, the Company plans to take innovative steps in
the products and services arena to cater to the technology requirements of its customers and take the Company to
greater heights.
Sd/-
Ramesh Padmanabhan
MD & CEO
1
DIRECTORS' REPORT
Dear Members,
Your Directors have great pleasure in presenting the twelfth Annual Report and the Audited Accounts of NSE.IT
Limited for the Financial Year ended March 31, 2011.
I. FINANCIAL RESULTS
The working of the Company during the period has resulted in a profit after tax of Rs. 1,363.62 lacs as per
particulars given below:
Particulars 2010-2011 2009-2010

Income 10,304.23 8,060.71
Expenditure 8,095.97 6,245.65
Profit before tax, amortization and prior period adjustments 2,208.45 1,815.06
Amortization 224.15 266.35
Prior period adjustments (0.01) (0.60)
Profit before tax 1,984.29 1,548.11
Provision for taxation 589.82 583.77
Deferred Tax Liability/ (adjustments) 30.85 11.60
Balance bought forward from previous year 436.04 833.13
Amount available for appropriation 1,799.66 1,785.87
Appropriations
II. OPERATIONS AND MAJOR EVENTS DURING THE YEAR

For the year ended March 31, 2011, the Company earned a total income of Rs.10,304.23 lacs an increase
of 28 % over previous year's total income of Rs. 8,060.71 lacs. The net profit before tax of the Company
for the year increased to Rs.1,984.29 Lacs (19.26% of the total income) as compared to Rs. 1,548.11 lacs
(19.21 % of total income) in the previous year. The profit after tax of the Company for year rose to
Rs.1,363.62 lacs (13.23% of total income) as compared to Rs.952.74 (11.82% of total income) of the
previous year.
2
Major Milestones
The following milestones were achieved during the year:
• Initiation of two major verticals for providing solutions to Insurance and Banking industry
• Launch of Algorithmic Trading solution in the market, key technology implementation for latency
improvement
• Kick-start of US operations, and won an initial contract from US client through the US subsidiary
of the Company.
• Engagement with Regional Stock Exchange to provide exchange solution for Cash Market
• Enhancing of our testing engagement with NSDL for multiple systems
• Stabilization and performance improvement of IRDA Agency licensing portal with helpdesk
for nationwide users
• Benchmarking and Performance Testing of Stratus V-series server for Trading application
• Completion of 100% online examination Project for IRDA.
• Achieved ISO 9001:2008 certification for Online Examination Services business Added new
clients in Online Examination Services business.
• Government of India honoured Tea Board with the e-Governance award at the 14th National
Conference on e-Governance on February 10, 2011.
• Implementation of normal and instant e-Auction, launch of web-based tea waste e-auction.
• Delivery of Spot Exchange Solution for a prestigious industry house in India
• Delivery and going live with a challenging re-engineering project at NSE for Membership
• Delivery and going live with the REC Trading for Power Exchange India Limited, and added
solutions for various trading segments in power trading
• Providing Co location services to NSE members.
• Number of employees increased to 714.
• ISO 27001 re-certification for system compliance.
• Implementation of Low latency technology using Ultra Low latency messaging system for the
Simulator product
• The Company was awarded a pilot project by NSDL to support their SEZ application software
at 8 remote SEZ locations. The project was rolled out in 15 days.
HIGHLIGHTS OF VARIOUS ACTIVITIES DURING THE YEAR 2010-2011.
==> SERVICES
1. Algorithmic Trading
During the year, Company has added to its product portfolio with the introduction of an
Algorithmic Trading solution, called AlgoStudio. The product provides various standard
algorithmic trading strategies (viz. Cash-Futures arbitrage, Futures-Futures arbitrage,
Cash-Cash arbitrage, Conversion/Reversal, Box Spread) as well as custom strategies, taken up
as be-spoke development. This solution utilizes a customized NeatXS product line for
Algorithmic trading. The Company has added 18 clients to its clientele list for this product line,
3
with a mix of standard and custom strategies. Of these, 9 have already gone live with AlgoStudio.
During the year, the Company has also undertaken a technical enhancement project to further
improve the latency and throughput. The upgraded solution utilizes an in-memory database for
computation of all Risk Management.
The Company expects to implement more custom strategies, and upgrade the product with
technical enhancements.
2. IRDA Agency Licensing Portal

NSE.IT implemented a solution, IRDA Agency Licensing Portal, web application, which is
provided by IRDA to the Insurance Companies to license Insurance Agents. The IRDA Agency
Licensing portal implements all IRDA regulations that govern the process for recruitment of
Agents. The IRDA Agency Licensing portal also includes providing a dedicated Help Desk for
all users of the IRDA Agency Licensing Portal.
The objective of the system is:
- To provide a software application that would automate the entire recruitment cycle for
Insurance Agents
- To provide a software application that implements all IRDA regulations at each step of the
recruitment cycle
- To widen the scope of the application by including all entities involved in the recruitment
cycle
The portal is live since Jan 2010 and has already processed more than 16 Lakh fresh applications.
In the process, the portal has issued 5.7 Lakh new licenses, and renewed 5.2 Lakh licenses. The
portal also interfaces with our Online Exam Scheduling and Examination portal, thus supporting
an end to end business process flow. The portal has further added newer de-duplication methods
to ensure uniqueness of applicants.
The Company also provides technical support for the application and provides maintenance and
system administration support for the server systems in Mumbai and Bangalore.
3. MSE - Stock Exchange Solution

This year, company has delivered a stock exchange solution for one of the leading Regional
Stock Exchange in southern India. It is setup with the objective of having an online, transparent,
with anywhere access trading platform for members of the exchange through a single electronic
screen.
The scope of the project was to build a trading solution for Equities Market which includes
Front Office, Exchange Order Management System. With the successful completion of software
delivery by us and UAT completion by the client, the system is expected to go live in the ensuing
year on receiving the regulators' approval.
4. Power Exchange of India (PXIL)

The Company continues to provide support services to Power Exchange of India since the
exchange has gone live in October 2008. The services encompass application development,
testing and support areas along with technical support for various applications and provide
maintenance and system administration support for server systems in Mumbai.
4
In the previous year the Company has:

- Enhanced the solution to include Day Ahead contingency and Week Ahead facilities.
- Provided extensive support for proposed REC trading as well as Intra state trading and same
went live on the 29th March 2011.
- Enhanced solution to include point of contact charges (Zone master and zone entity) which
was new way in which charges is being charged to the buyer and seller.
- Implemented new matching algorithm for DAS product.
- Developed and deployed the Clearing and Settlement System for power trading.
- Added five new blade servers to the setup.
The Company continued to provide 24 X 7 operations support in running the Power Auction.
PXIL appreciated the efforts put in by the team in rolling out a new product for REC. PXIL is in
discussions with the Company for setting up a DR site and running the operations.
5. Citi group
Citigroup is a Trading Member cum Clearing Member on the National Stock Exchange of India's
(NSE), Futures and Options segment. Cititgroup does trading and clearing on behalf of their
clients(participants). Currently 3 Ensettle instances running at Citigroup - CCSIL, Treasury
and CGM for different exchange and segments.
• EnSettleTM has been configured as a comprehensive modular application platform for
Exchange Intermediaries (Brokers, Clearing Members and Custodians)
• Support for different market segments - Equity, Equity Derivatives, Forex and SLBS
Benefits seen by Citi
High ROI.
Comprehensive Risk Management. Risk simulation: Allows "What-if" analysis on
portfolio.
Increased focus on the core business instead of spending time on the repetitive data
collection / processing tasks.
Regulatory Compliance.
In the previous year the following was achieved:
- Citi Treasury and CCSIL EnSettle went live
- Support for extensive client reporting, MIS and regulatory reporting.
- Seamless Integration with various existing legacy systems at client's end.
- Support for audit trail for all the activities.
6. Angel Broking
NSE.IT has developed and implemented a solution - Advisory Dashboard window and web
application, which is helpful for Angel broking's business users. This application is based on
research call by research team to generate market list and pre market list which improves the
dealers business.
5
The objective of the system is:

- To provide a software application that would assist the users to focus on creating a customer
database that represents a consistent picture of the customer's relationship with the company
and providing that information in specific format where company touches the customer
- This System assists the users to get details in form of Dashboard and will help in extracting
reports required for reporting.
- There will be a Research call screen which will assist the user in adding, editing or deleting
research call data.
- The user will be allowed to view a dashboard tool which will automate the process of
generation of client list based on rules.
NSE.IT is also providing support for their wealth management application called as e-Chopda
which is a Java-swing based solution and NSE.IT resources are carrying out enhancements and
defect fixing.
7. CCIL
During the year, the following projects have been undertaken by NSE.IT at CCIL (Clearing
Corporation of India Ltd.)
Internet and Intranet Portals
NSE.IT created Internet Portal, web application, which is Internet web site/portal for CCIL
(Clearing Corporation of India Ltd.).
The objective of the application is:
o To facilitate market information dissemination for various business.
o Allow market information to be displayed / downloaded by specific registered members
(registered through portal).
o Provide user authentication (external user, member user, employee). User authentication
should adhere to Client's password policy.
o Have search facilities at the web content and document level
o Support tagging and labeling for all documents / information
o Functionality for uploading statistical data (form of files such as (pdf, xls, doc, zip) so that
it is available in a query-able format by end users based on their access level
o Able to setup / alter different business workflows as and when desired.
The portal is in final stage of UAT.
Negotiated Dealing System (NDS) for Order Matching (OM) and Auction
NSE.IT has received a great opportunity through the medium of CCIL to prove its capabilities
in the Indian Debt market, by providing trading front end solution for Debt market (government
securities). The project is directly under the supervision of RESERVE BANK OF INDIA giving
it national importance.
The project has just completed requirements gathering phase and is currently in development
phase.
6
8. Tea Board
The most important achievement for the Tea Board e-Auction project this year, was winning
the coveted Bronze medal in the National e-Governance Awards 2011, under the category -
Specific Sectoral Award (Focus Sector for 2010-11 - Agriculture).
The e-Auction program went 100% live in Siliguri this year. This marked 100% sale of tea
through e-Auction route across all the six auction centres. Around 370 million kg of tea was
sold this year, totaling the sales figure to 610 million kg since inception with a monetary worth
of around 6100 crore rupees.
The following were also achieved during the last fiscal year:
1. We conducted "The Golden Leaf India Awards - Southern Tea Competition". This specialty
auction saw the best quality teas from South India competing for the Golden Leaf Award
with participation of buyers from all the six auction centers.
2. Implementation of Normal plus Instant Auctions.
3. Implementation of web-based Tea Waste Auction.
4. Implementation of post-auction activities related to Contract Notes and Delivery Orders.
5. Periodical inclusion of enhancements in existing e-Auction system.
Future Roadmap
- Sale of Packaged Tea
- Sale of Bulk Tea
- e-Settlement
- Warehouse Inventory Management System
- Statistical Reports for Tea Board and other auction stakeholders
- Potential domestic opportunity with UPASI (United Planters' Association of Southern India)
Potential international opportunity in Kenya with EATTA (East African Tea Traders Association)
They had continued to demand more improvements and features in the system and the company
had rolled out many changes with enhanced features. The first All India Tea e-auction where
buyers across India participated was successfully conducted by The United Planters' Association
of South India for their premium teas.
Government of India honoured Tea Board with the e- Governance award at the 14th National
Conference on e-Governance on February 10, 2011.
Future Roadmap
- Sales of Packaged tea through non-auction route
- Sales of tea in bulk packages through non-auction route
- e-Settlement for sales of tea and tea waste through e-platform
- Warehouse Inventory Management
- Potential international opportunities - Kenya, Vietnam, Sri Lanka
9. NSE
I Development Projects
During the year, NSE.IT partnered with NSE to deliver new projects / re-engineer existing
7
solutions to suit NSE's growing business needs. Given below are the projects executed
during the year.
Project Membership: NSE.IT has delivered a re-engineered solution of Membership
application. Besides providing the solution for problem areas like PDCs, database
normalization, bulk upload, company is also involved in process improvement so that 150
internal users of membership application can get benefit of a stable system and faster data
access. Membership application is integrated with 12 other departments like NFA, Listing,
FOCASS, Inspection etc. data import/export to these departments will be automated. Also
continuous maintenance, support and enhancement activity is handled.
Project Arbitration: Currently NSE.IT is engaged in re-engineering of Arbitration
application. Apart from providing the solution for problem areas like PDCs, database
normalization, company is also involved in providing a complete solution to users of
arbitration application with stable system and faster data access. Arbitration application is
integrated with other systems like NFA and NICE, data import/export to these systems
will be automated. Functionality of the system also includes reports, letters generation,
alert generation, arbitration tracker and DMS.
Project SCORES: NSE.IT has delivered web service based solution for IGC department.
The web service module, SCORES would enable the stock exchanges and depositories to
‘consume' the complaints forwarded to them and to send reply through this web service.NSE
as an exchange, consumes the complaint and send ATR for the same. SCORES application
is integrated with NICE, data import/export to NICE is automated.
NSE WEBSITE: NSE website is the most important and visible project of NSE. The
Website shows its members and all the others the live traded Stock, Derivatives, Currency,
Bonds, Securities and Various Other Traded securities on the Stock Exchange. End of the
day historic information, graphs and quotes are also displayed. NSEIT's Team has developed
Corporate Home Page. Resources from NSEIT are working on the website revamp which
involves some of the architectural revamp as well as the revamp of the display of the website.
Focus is given on the scalability as well as performance improvement of the website.
Project CRM: Privilege Card is a value added service provided by NSE to all its members.
Privilege Card will provide hassle free access to Exchange Plaza and its utilities. NSEiT
has automated the process of receiving Members details and generating reports. A user
Friendly Interface for Trading Members for privilege card request generation has been
developed by NSEiT.
Project CSE Surveillance: NSEiT Team along with NSEIL Team has developed CSE
Capital Market surveillance which is an Offline and Online monitoring tool for securities
traded in the Capital Market. Based on set parameter(s), alerts get generated by the system
for the security hitting the set limits. The system is designed to alert the surveillance users
of any unusual activity in the market. Provide tools and functions to carry out further
investigations into causes and effects of such an unusual activity.
NSE.IT was also involved with several key initiatives like India Venture Board Portal
specification and testing, Specification and UI for Listing project, etc.
NSE.IT's testing team has been consistent in providing testing support to NSE's business
and has worked on various key projects during the year:
- Pre-open in Cash market
8
- 3-4 machine split in Cash market

- F&O re-tooling, 2-3 machine split and User-ID increase
- Utility testing for backend
- SLBM revamp project
- MF trading system - SIP system testing
- IPO - Reverse book building & Follow-on Public Offer
Future Roadmap
- Project Investment module.
- Project NFA.
- Project ENIT Re-engineering.
II IT infrastructure management
The company continues to provide 24 X 7 hardware and administration support for all
Stratus servers in Mumbai and Chennai.
Highlights:
• Installation of latest FT Servers alongwith Red HAT Linux OS.
• VOS upgrades on all production V Series Servers.
• NOW operations for new NMCE and ICEX Commodity markets
• Mobile trading application support
New activities planned:
• All Windows TAP servers to be migrated to Linux.
• Additional market segments under NOW
III NOW
During the year Dotex International Ltd. was added as a prestigious client to NSE.IT's
growing client list. The engagement with Dotex International was an innovative one with
services being offered across India covering help desk, customer care and sales. This unique
engagement has helped our client Dotex International Ltd., register sizable presence in the
Indian securities space and establish NOW as India's largest ASP service.
IV Co location Support
The company continued to provide 24 X 7 support to NSEIL COLO Operations in Mumbai.
Members have consistently praised the professionalism exhibited in the processes followed.
Highlights:
• 77 members gone live
• Colo team is trained on ITIL and ISO 20000 standards.
• All 5 Major service providers have installed there MUXES in NSE Colo Datacenter
Phase-I & Phase-II.
• ISO 20000 Certification for NSE Colo Service desk audit completed.
10. NCDEX
The company continued to provide 24 X 7 support services to the exchange and ensures minimal
disruption in the exchange operations. Stratus hardware support, Systems Administration, Data
Centre operations and CTCL operations continued as usual at both Mumbai and Chennai.
9
Major Activities
1. Benchmarking and Performance Testing of V-series server for Trading application
2. Drafted Policy and guidelines on Automated Trading Software
NCDEX Clearing Front End

NCFE Revamp: The existing NCFE website was revamped to give it a new look by using
flexigrid and JQuery. Also introduced workflow through Maker Checker framework.
Security related changes: To implement effective User Session management and two factor
Secured User Authentication in Web NCFE application.
Session Management mechanism includes having a separate CAJO server to provide following
features:-
a. Only one active session per user can exist at a time. Parallel logins to be disallowed
b. A Session Time Out functionality needs to be implemented which will remove all sessions
which lie idle for more than configured time duration
c. Resource (ASP page/Menu/Privilege) to Role ID mapping to be followed for managing
Resource level access
d. Flexibility to choose which resource needs access level privileges
The authentication mechanism in continuing with the two factor authentication principle enables
the user to authenticate himself by having access to the following:-
a. User ID, Password Combination
b. Secure Code generated through PIN
c. NUMPAD Utility: A client side utility which has to be developed and which will allow
users to type in digits from 0-9 to be taken as input. It will also be used as a wrapper class
to enable client side encryption and decryption.
SMS Gateway Application: Another major initiative this year is the SMS Gateway, which is a
standalone application that has been built to service numerous applications/departments within the
NCDEX. It has features like 9 types of messaging, SMS Reports, Scheduled SMS, User-Role
Management, and Address book facilities.
NCDEX SPOT
Major Highlights
• Gives the best output for an web based trading system which needs spontaneous
communication with the server to get latest data
• First in NSE.IT to implement Fix protocol (Fix 4.2) in trading system
• This team has developed India's first SMS Based Trading system for Continuous Market
and Auction Market in SPOT Exchange.
• Implemented in memory data base in .net, Implemented Single sign on between cross
platform.
• Implemented India's first Real Time settlement for Spot Exchange
Implemented template based clearing and settlement system which is configurable.
10
11. NSDL Testing Project:

The Company was awarded a pilot project by NSDL to support their SEZ application software
at 8 remote SEZ locations. The project was rolled out in 15 days and currently it is in steady
state in 7 locations.
As a part of the e-Governance initiative, Ministry of Commerce (MOC) has entered into a
formal agreement with NSDL Database Management Limited (NDML) for establishing and
managing a nationwide integrated solution for administration of Special Economic Zones (SEZ)
of India. NSE.IT has been involved with System and Acceptance testing of various applications
at NSDL:
I. SEZ Online
NSE.IT is responsible for end to end Functionality Testing and UAT of this application
that handles Import/Export related transactions inside SEZs. Additionally, NSE.IT provides
help to support team, users, training, requirements and presentation/demos.
II. PAN
NSE.IT is responsible for Functionality Testing on Web based PAN Application. Currently,
the application is live and change/requests keep coming which have to be pushed into
Production after doing UAT
III. TIN
NSE.IT is majorly responsible for System/Database Testing of various modules of this
Tax Information Network, apart from front-end related Testing to a limited level. Here, we
are involved with the Systems/Technical side team of NSDL.
IV. Speed-e
NSE.IT is responsible for Functionality Testing of this DP interface provided to carry out
DP transactions electronically. Fair amount of DB level Testing has also been carried out.
12. Online Examinations

During the year the IRDA project for achieving 100% online examination status by year end
was undertaken across the country and implemented in record time of 9 months. This also
included achieving important milestones of 100 new centers within 6 months and 200+ centers
going live by end of December 2010 within six months of starting the project despite several
constraints faced during this phase.
• Overall the number of centers increased from 106 to 219 centers by March end.
• The number of registrations increased from 7.88 lacs in 2009-10 to 12.70 lacs in 2010-11.
• More language modules were added - 2 Languages in Life insurance & 8 Languages in
Non-Life insurance totalling 11 and 10 respectively.
• Practice test CDs/ solutions were made available in multiple languages to the insurance
companies for prospective agents appearing for the examination. Regular customer surveys
were conducted with very encouraging feedback (average rating between 4 to 5 on a scale
of 5) on all parameters such as center setup, Test administrator behavior, quality of services
offered etc.
The company took various initiatives during the pervious year which are highlighted below:
11
New customers
During the year the team worked on adding new customers and bid for various tenders and
requirements. The Company was successful in adding new clients such as NCFM, ITB, CCIL,
IBPS etc to its esteemed customer list.
• NCFM - 38210 exams were conducted in 65 locations - Since July 2010
• ITB - 2788 exams were conducted in 19 locations - Since September 2010
• CCIL - 21 exams conducted - since September 2010
• IBPS - 777 exams were conducted in 13 locations - Since February 2010
• IRDA internal promotion exams - 155 exams conducted during the year
Some of the opportunities explored by the Company during the year was as under-
• FPSB
• GTU
• IACT
• IBPS
• ICAI
• NISM
• NTPC
• UIDAI
• BIFM
• Nasscom
• ASRB
Quality Initiative
During the year the Company embarked on quality journey to certify its online examination centers
for ISO 9001:2008 certification. NSE.IT through all the steps of ISO such as gap analysis,
documentation, implementation of documented processes, internal auditing, training and awareness.
After extensive rounds of internal and external quality implementation efforts in past six months
and audits conducted across country by Bureau Veritas Certification India (BVCI) auditors till
first week of March, NSE.IT has been certified for ISO 9001:2008 by BVCI for its Online
Examination Services.
This certification covers Head Office together with 106 centres, 4 Regional Offices and 10
Territory offices as per following scope:
Online Examination Services Management across India, including:
at head office: registration, scheduling, customer helpdesk, physical & electronic vigilance and
IT support at regional and territory offices : customer relationship management, resource
management, monitoring centre operations performance in the region
at test centres: conducting online examination and facilities management
It is even more noteworthy that NSE.IT achieved the ISO 9001:2008 compliance certification
for the above mentioned scope with ZERO NCs (Non-conformities) while the Phase II expansion
is ongoing.
12
Project 2x/ Gateway

In order to cater to new customers across major cities the Company intiated Project 2X adding capacities
and rooms in top 30 cities in existing centers and the same is in its advanced stage of completion.
Also to cater to large volume and one time exams on weekend, the Company also initiated Project
gateway wherein it tied up with colleges, institutes, infrastructure companies with installed PC base
of 50 to 400 numbers. Here except for chief proctor other services will be hired from the partner.
IT initiatives
AIMS / IRDA / ITB

• Examination control strengthened by releasing modules such as "Batch Control/ Start
Batch"
• New production systems setup to deliver exams for ITB and other new clients
• New registration portal released. This is a self help candidate registration portal.
• SSL integration, now the exam sessions are conducted on Secured Socket Layer
• SMS integration in AIMS, SMS update to candidates for exam schedules/reschedules
New Clients / New Codebase
• Question Bank Security (IP based)
• Question Bank management functionality
• Difficulty level / parameterization now available
• Save as you go, Frequency based saving of answers
• Single /Multiple questions per page now available
• Question Navigation bar with bookmark feature available
• Exams of different duration and multi client exams at the same time (multi domain)
IT Infrastructure
• Release of offline/demo exams on Touch screen Devices.(Hyderabad center Kiosk)
• DR site for IRDA @ NSEIT Mumbai
• New Infrastructure setup and hosted to manage new clients
• Advent net (Manage Engine Service Desk) Rollout for central helpdesk at HO for all
220 locations
• AIMS deployed on public network and made accessible to entire national team.
• Procurement of UTM devices which can work with Data Cards and distribute internet
for exams.
• Procurement of dedicated internet connections for internet connectivity at remote
locations [TULIP, SIFY, AIRCELL]
• 16 Mbps link for vigilance and 4mbps data link between HO and DC
• Enabled new clients like NSE, CCIL, NISM
• IRDA 100% online - Phase II, 2x, Capacity Enhancements - Procurement, deployment
• Small but important releases like Mikogo and ‘Sabse Bolo' to deliver good quality but
zero cost products
• New Chat server Commissioned, again an addition to production at Zero cost of
procurement.
13
Vigilance/ Security check

• Deployment of 400+ sophisticated CCTV cameras at the centers
• Video recordings at the centers
• Online continuous monitoring of center activity from central CCTV monitoring cell at
Mumbai
• Background screening of exam delivery resources
• Dedicated vigilance department headed by highly experienced professional Handling
tricky situations and escalations to IRDA
• Surprise visits/ Audits at all centers by vigilance staff
Future Road Map
- To add more locations across the country and enhance capacity in the big cities
o Project 2X and Gateway
- To implement Six Sigma/ Quality Certification of all 220 centers and adding more processes
in ISO certification
- Work on cost management across centers - Project 1/2X
- IT
o Enhancing exam software features
o Online payment and online scheduling features implementation
o Supporting new question types/ Voice based Tests/ Simulation Test
o Decentralisation (IT / Local Server)
o Building Content Development capability & Authoring tool acquisition
o Software Productisation for use at customer sites
o Result Reporting/ Analysis for client
o Dedicated link of 1 mbps for 2x centers and other critical centers.
o Setting up secure Data room for hosting Production, DR and UAT servers.
o Mobile centers, touch screen devices which are GSM/CDMA network enabled, which
can be used to conduct exams.
o DR site for IBPS, ICAI and AIMS
o Video Conferencing across top location
- Vigilance
o Create IT rooms at each center with access control
o End Point Security rollout for phase 1 locations
o Access control at Centers - Visitor management system
Biometrics implementation for additional security.
13. Software Products
1. Exchange Simulator
During the year, as initiative has been taken to revamp the Simulator system using Ultra
Low messaging system . The earlier version of the Simulator had limitation of handling
100-150 messages/second. The revamped Simulator will handle more than 1250 messages/
14
sec and is scalable. This has been achieved adopting a distributed architecture using 29West
UME bus with multiple matching engines. The system is under user testing and will be
rolled out during the first quarter of 2011-12
2. Back office - Ensettle
Ensettle is a product for post trade settlement for Trading and Clearing Member back
office operations. The product has capabilities to address F&O, Cash and currency
derivatives market.
During the year, company has completed several key installations like Citi Treasury, SBI,
Kotak, and IDBI.
3. XpressSTP
It is a messaging Hub, facilitating brokerage firms, investors, & custodians, to exchange
post trade transactions based messages. This is used for Institutional Trades. XpressSTP
eases the work of user by combining all the process of conversion, signing and uploading
of ISO file in one process. This saves time of the user. It also includes several audit reports
that can give an overview of the activities performed by the user.
During the year continuous support was provided to approx. 150 clients.
4. Plans
During the year, company has developed a product PLANS for insurance industry to manage
its pre-licensing process for the agents. The product has been demonstrated with several
insurance clients and is in an advanced stage for live implementation.
III HUMAN RESOURCE DEVELOPMENT

The Company saw a steep growth of 48% in the number of employees and the total count at the
end of the year was 714 as compared to 480 in the previous year. The Company conducted
various training programs both externally and internally for the skill enhancement of the
employees during the year which included Java, Sturts, Hibernate, .Net, C#, Sharepoint, ITIL,
Linux, on the technical side and effective communication on the non-technical front. In the
ensuing year the Company will roll out more such programs for its employees.
==> FUTURE ROADMAP OF THE COMPANY

• In the ensuing year, the company plans to explore business in the insurance and banking vertical.
• The company plans to strengthen its testing practice and deliver world class solutions.
• The company intends to offer data center and remote infrastructure management services to
customers.
• In online examination arena, the company plans to expand its facilities in the top 30 locations
and tie up with external organizations to offer additional space.
• The company plans to develop new solutions in the algorithmic trading domain.
• The company plans to focus on the US geography and make inroads into the market.
IV. DIRECTORS
Retirement by rotation
In accordance with the provisions of the Companies Act, 1956 and the Company's Articles of
Association, Mr. Ravi Narain and Dr. R H Patil retire by rotation and are eligible for re-appointment.
15
V. DIVIDEND
Based on the Company's performance, the Directors are pleased to recommend, for approval of
the Members a Final Dividend of Rs.4/- per share on Equity Shares of Re.10/- each of the
Company for the financial year 2010 -11. The Final Dividend on the Equity Shares, if declared
as above, would involve an outflow of Rs.4,00,00,040/- towards dividend.
Transfer to Reserves
The Company proposes to transfer Rs. 8,00,00,000/- to the General Reserve out of the amount
available for appropriations.
VI DIRECTORS' RESPONSIBILITY STATEMENT

The Directors' report;
i. that in the preparation of the Annual Accounts, the applicable accounting standards had
been followed along with proper explanation relating to material departures;
ii. that the directors had selected such accounting policies and applied them consistently and
made judgments and estimates that are reasonable and prudent so as to give a true and fair
view of the state of affairs of the company at the end of the financial year and of the profit
and loss account of the company for that period;
iii. that the directors had taken proper and sufficient care for the maintenance of adequate
accounting standards in accordance with the provisions of this Act for safeguarding the
assets of the company and for preventing and detecting fraud and other irregularities;
iv. that the directors had prepared the annual accounts on a going concern basis.
VII AUDIT COMMITTEE

The Audit Committee appointed by the Board comprised of the following members:
1. Mr. Dileep Choksi, Chairman of the Committee and an Independent Director
2. Mr. V.Babuji, an Independent Director
3. Dr. R. H. Patil an Independent Director; and
4. Mr. J. Ravichandran, Non-Executive Director.
During the course of the financial year 2010 - 11, the Audit Committee met on 27th April 2010,
15th September 2010, 10th December 2010 and 23rd February 2011.
VIII EMPLOYEES' STOCK OPTION

The Company has not offered any shares under the Stock Option Plans to any of its employees.
IX AUDITORS
M/s Gokhale & Sathe, Chartered Accountants, Auditors of the Company, retire at the forthcoming
Annual General Meeting of the Company and are eligible for re-appointment. The Company
has received a certificate from the Auditors to the effect that their re-appointment, if made,
would be within the limits prescribed under Section 224(1B) of the Companies Act, 1956.
X DEPOSITS
During the period the Company has not accepted any deposits from the public.
16
XI BUY BACK OF SHARES

The Company has not offered for buy back of any of its shares from the shareholders. As such
the reasons for failure to complete the buy back within the time specified as is required to be
disclosed in terms of the requirements under Sub-section (4) of Section 77A of the Companies
Act, 1956 is not applicable to the Company.
XII CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN

EXCHANGE EARNING/OUTGO
1. Conservation of energy, technology absorption:
As the Company does not have any manufacturing activities, particulars required to be
disclosed with respect to conservation of energy and technology absorption in terms of
Section 217(1)(e) of the Companies Act, 1956, read with the Companies (Disclosure of
particulars in the Report of the Board of Directors) Rules, 1988, are not applicable.
2. Foreign Exchange earnings/outgo during the year under review:
During the period foreign exchange earnings were Rs.8.85 lacs and outgo was Rs. 1502.69 lacs.
XIII PARTICULARS OF EMPLOYEES

Pursuant to the provisions of Section 217(2A) of the Companies Act, 1956, read with Companies
(Particulars of Employees) Rules, 1975, as amended, a statement relating to particulars of
employees forming part of this report has been given in the annexure attached herewith.
XIV NOTE ON SUBSIDIARY

During the year, the Company's wholly owned subsidiary in USA won a contract from a US
client and is planning many new initiatives in the current year.
XV APPRECIATION
Your Directors would like to place on record their sincere appreciation for the confidence support
and co-operation received from the holding company, its employees, Banks, Reserve Bank of
India, Registrar of Companies (ROC), Government Authorities, suppliers, customers,
shareholders and all other stakeholders
Place: Mumbai RAVI NARAIN

th
Date: 26 April 2011 CHAIRMAN
17

STATEMENT PURSUANT TO SECTION 217(2A) OF THE COMPANIES ACT, 1956 READ WITH
COMPANIES (PARTICULARS OF EMPLOYEES) RULES, 1975, AS AMENDED
Name and Age Designation/ Experience Date of Last
Sr Qualification in Nature of Gross Net (no. Commencement employment
Years Duties of yrs) of Employment
1 Mr. Ramesh 49 Managing 13,173,687.44 7,932,769.00 22 May 15,2008 Chief
Padmanabhan Director and Delivery
B.Sc and Post Chief Officer of
Graduate in Executive Mphasis Ltd
Software Office
Technolgy
Notes:
Gross remuneration includes Salary and other allowances, Company's contribution to Provident Fund,
Superannuation Fund, Gratuity Fund and taxable value of perquisites etc. Net remuneration has been
arrived at by deducting from gross remuneration, Company's contribution to provident fund,
superannuation fund, taxable value of perquisite, amount deducted as profession tax and income tax.
The nature of employment is contractual in all above cases.
None of the employees mentioned above is a relative of any Director.
None of the employees owns more than 2% of the outstanding shares of the Company as on 31st
March 2011.
18
AUDITOR'S REPORT
TO THE MEMBERS OF NSE.IT LIMITED
We have audited the attached Balance Sheet of NSE.IT LIMITED as at 31st March 2011, Profit & Loss Account
and cash flow statement for the year ended on that date annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
1. As required by the Companies (Auditor's Report) Order, 2003 issued by the Central Government of India in
terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said Order to the extent applicable to the Company.
(i) We have obtained all the information and explanations, which to the best of our knowledge and belief
were necessary for the purposes of our audit;
(ii) In our opinion, proper books of account as required by law have been kept by the Company so far as
appears from our examination of those books;
(iii) The Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report are in
agreement with the books of account;
(iv) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this
report comply with the accounting standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956.
(v) On the basis of written representations received by the Company from the directors which is taken on
record by the Board of Directors on 26th April 2011, we report that none of the Director is disqualified
as on 31st March 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of
(vi) In our opinion and to the best of our information and according to the explanations given to us, the
Balance Sheet and Profit and Loss Account read with the Significant Accounting Policies and notes
on accounts, give the information required by the Companies Act 1956 in the manner so required and
give a true and fair view in conformity with the accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2011 ;
(b) in the case of the Profit & Loss Account, of the Profit for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date;
For Gokhale & Sathe
Firm's Reg. No. 103264W
Kedar Mehendale
Place: Mumbai. Partner
Date : 26th April 2011 Membership No.: 116065
19
FINANCIAL YEAR ENDED 31ST MARCH 2011

ANNEXURE TO THE AUDITOR'S REPORT AS REQUIRED BY THE COMPANIES
(AUDITOR'S REPORT) ORDER, 2003
(Referred to in Paragraph 1 of our Report of even date on accounts of
NSE.IT Ltd. as at 31st March 2011)
As required by the Companies (Auditors Report) Order 2003 issued by the Central Government in terms of
Section 227(4A) of the Companies Act 1956, on the basis of the checks, as we considered appropriate, we report
on the matters specified in paragraph 4 and 5 of the said order to the extent applicable to the company.
(i) a) The Company has maintained proper records, showing full particulars including quantitative details
b) We have been informed that the physical verification of fixed assets was carried out by the
management at the year end, which in our opinion is reasonable having regard to the size of the
company and nature of the assets. We have been informed that no material discrepancy was noted
on such verification.
c) The Company has not disposed off substantial part of the Fixed Assets during the year.
(ii) Considering the nature of the business and services rendered by the company, clause 4 (ii) is not applicable.
(iii) a) The Company has not granted any loan secured or unsecured to companies, firms, or other parties
covered in register maintained u/s 301 of the Companies Act, 1956 and accordingly provision of
clause 4 (iii) (b), (c), (d) are not applicable.
e) The Company has not taken any loans, secured or unsecured from companies, firms or other parties
covered in the register maintained u/s 301 of the Companies Act, 1956. Therefore, the provisions of
clause 4 (iii) (f) and (g) are not applicable to the Company.
(iv) On the basis of selective checks carried out during the course of audit and according to the information and
explanation given to us, in our opinion there is an adequate internal control system commensurate with the
size of the Company and the nature of business with regard to the purchase of fixed assets and with regard
to the service rendered. During the course of our audit we have not observed any continuing failure to
correct major weakness in internal controls system.
(v) a) In our opinion and according to the information and explanations given to us, there are no contracts
or arrangements that need to be entered into a register in pursuance of section 301 of the Companies
Act 1956. Therefore, reporting of transaction under the provision of clause 4 (v) (b) is not applicable
to the Company.
(vi) The Company has not accepted any deposits from public and accordingly the provisions of section 58A,
58AA of the Act, and Rules framed there under and any directive issued by the Reserve Bank of India are
not applicable to the Company.
(vii) The Company has an internal audit system commensurate with its size and nature of the business.
(viii) We have been informed that Central Government has not prescribed maintenance of cost records under
section 209 (1) (d) of the Companies Act, 1956 for the products of the Company.
(ix) a) According to the information and explanations given to us and the books and records examined by
us, the company is regular in depositing undisputed statutory dues with the appropriate authorities.
There were no undisputed amount payable in respect of Provident Fund, Income-tax, Sales-tax,
20
Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess and any other statutory dues which have
remained outstanding as at 31st March 2011 for a period exceeding six months from the date they
became payable.
b) According to the information and explanation given to us, there are no disputed dues of Income
Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess which have not been
deposited on account of any dispute, except for following
(x) There are no accumulated losses. The Company has not incurred cash losses during the financial year
covered by our audit and the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations given to us, the Company has not taken
any loan and no amounts were due towards principal or interest to any financial institution, bank, or
debenture holders during the year.
F.Y. Dispute Pertaining Sales Tax Liability Forum where dispute is pending
(Amt. in Rs.)
2000-01 Bombay Sales Tax 1,79,169/- Appeal filed with ACST
u/s 33 (3) (A) on 08/05/2006
(xii) As per information given to us, the Company has not granted loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) In our opinion the Company is not a chit fund or a nidhi/ mutual benefit fund/ society. Therefore, the
provisions of clause 4
(xiii) are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in shares, securities, debentures, and other
investments.
(xv) According to the information and explanations given to us the Company has not given any guarantee for
loans taken by others from bank or financial institutions.
(xvi) According to the information and explanations given to us, the company has not taken any term loan.
(xvii) According to the information and explanations given to us, the company has not raised any funds.
(xviii) According to the information and explanations given to us, the Company has not made any preferential
allotment of shares.
(xix) According to the information and explanation given to us, the company has not issued any debentures up
to 31st March 2011.
(xx) During the period covered by our audit report, there was no public issue of the Company's shares.
(xxi) According to the information and explanations given to us no fraud on or by the Company has been
noticed or reported during the year.
For Gokhale & Sathe
Firm's Reg. No. 103264W
Kedar Mehendale
Place : Mumbai. Partner
Date : 26th April 2011 Membership No.: 116065
21
BALANCE SHEET
Particulars Schedule As at 31-Mar-11 As at 31-Mar-10
No. Rs. Rs.
I. SOURCES OF FUNDS
Share Capital 1 100,000,100.00 100,000,100.00
Reserves & Surplus 2 291,982,849.93 202,110,034.31
2. Deferred Tax Liability 3,521,995.00 436,543.00
TOTAL 395,504,944.93 302,546,677.31
II. APPLICATION OF FUNDS

1. Fixed Assets
Gross Block 3 264,933,204.24 194,925,234.97
Depreciation till date (130,130,799.64) (107,715,984.18)
Net Block 134,802,404.60 87,209,250.79
Capital Work in Progress 22,863.00 136,762.64
134,825,267.60 87,346,013.43
2. Investments 4 22,792,478.19 22,792,478.19

Current Assets 333,440,781.02 297,624,940.04
Loans & Advances 113,438,540.42 67,984,792.99
446,879,321.44 365,609,733.03
Current Liabilities & Provisions 6 (208,992,122.30) (173,201,547.34)
Net Current Assets 237,887,199.14 192,408,185.69
TOTAL 395,504,944.93 302,546,677.31
Significant Accounting Policies &

For Gokhale & Sathe
Chartered Accountants ( Reg. No.103264W )
RAVI NARAIN RAMESH PADMANABHAN
Chairman Managing Director & CEO
KEDAR MEHENDALE
Partner DILEEP CHOKSI J. RAVICHANDRAN
Membership No.116065 Director Director
Place : Mumbai CHIRAG SHAH

22
PROFIT AND LOSS ACCOUNT
Particulars For the year ended For the year ended

Schedule 31-Mar-2011 31-Mar-2010
No. Rs. Rs.
INCOME
Revenue from Software Products and Services 7 1,012,031,706.67 789,040,862.22
Other Income 8 18,390,895.91 17,030,265.23
TOTAL 1,030,422,602.58 806,071,127.45
EXPENDITURE
Personnel Expenses 9 315,969,719.67 239,074,644.29
Purchases & Operating Expenses 10 266,441,798.29 223,839,527.42
Selling, General & Administrative Expenses 11 227,165,733.54 159,510,809.12
TOTAL 809,577,251.50 622,424,980.83
Profit Before Tax, Interest, Amortisation & Prior Period Adjustments 220,845,351.08 183,646,146.62
Interest Cost - (2,139,773.00)
Depreciation (22,414,815.46) (20,146,320.50)
Impairment of Intangible Asset - (6,488,256.56)
Profit Before Tax & Prior Period Adjustments 198,430,535.62 154,871,796.56
Prior Period Adjustments (1,308.00) (60,589.00)
Profit before tax 198,429,227.62 154,811,207.56
Provision for tax
Current Tax 51,000,000.00 57,500,000.00
Deferred Tax 3,085,452.00 1,160,418.00
Short / Excess Provision for taxes (net) 7,981,913.00 877,344.00
Profit after tax 136,361,862.62 95,273,445.56
Surplus brought forward from previous year 43,603,965.31 83,313,179.75
Profit available for appropriation 179,965,827.93 178,586,625.31
Appropriations :
General Reserve 80,000,000.00 100,000,000.00
Proposed Dividend 40,000,040.00 30,000,030.00
Corporate Dividend Tax 6,489,007.00 4,982,630.00
Balance carried to balance sheet 53,476,780.93 43,603,965.31
179,965,827.93 178,586,625.31
Basic & Diluted Earning Per Share (Rs) (Refer note no 15) 13.64 9.53
Significant Accounting Policies &
For Gokhale & Sathe
Chartered Accountants (Reg. No.103264W)
Chairman Managing Director & CEO.
KEDAR MEHENDALE

23
SCHEDULES FORMING PART OF THE ACCOUNTS
Particulars As at 31-Mar-11 As at 31-Mar-10

Rs. Rs.
Authorised
15,000,000 (15,000,000) Equity Shares of Rs. 10/- each 150,000,000.00 150,000,000.00
10,000,010 (10,000,010) Equity shares of Rs. 10/- each fully paid up 100,000,100.00 100,000,100.00
(1,00,00,010 Equity shares of Rs. 10/- each fully paid is held by
National Stock Exchange of India Limited, the Holding Company)
TOTAL 100,000,100.00 100,000,100.00
SCHEDULE 2 : RESERVES AND SURPLUS
General Reserve
As per last Balance Sheet 158,506,069.00 58,506,069.00
Add : Transferred from Profit & Loss Account 80,000,000.00 100,000,000.00
238,506,069.00 158,506,069.00
Balance in Profit & Loss Account 53,476,780.93 43,603,965.31
TOTAL 291,982,849.93 202,110,034.31
24
SCHEDULE 3 : FIXED ASSETS
Sr. CATEGORY GROSS BLOCK DEPRECIATION NET BLOCK

No. As on Additions Deductions As on As on For the Deductions As on As on As on
1-Apr-10 31-Mar-11 1-Apr-10 Year 31-Mar-11 31-Mar-11 31-Mar-10
NSE.IT Limited
Tangible Assets
1 Computer Hardware & Server 80,043,047.99 33,809,646.15 – 113,852,694.14 48,921,762.70 10,478,985.02 – 59,400,747.72 54,451,946.42 31,121,285.29
2 Office Equipment 32,791,982.38 16,342,297.14 – 49,134,279.52 5,445,124.59 2,774,583.10 – 8,219,707.69 40,914,571.83 27,346,857.79
3 Furniture & Fixtures 17,103,046.59 9,253,943.75 – 26,356,990.34 3,415,345.05 2,535,954.17 – 5,951,299.22 20,405,691.12 13,687,701.54
4 Building – Civil Work 2,680,056.00 3,287,566.00 – 5,967,622.00 371,507.20 387,676.52 – 759,183.72 5,208,438.28 2,308,548.80
Intangible Assets
5 Computer Software 36,401,003.01 7,314,516.23 – 43,715,519.24 23,656,146.64 6,237,616.65 – 29,893,763.29 13,821,755.95 12,744,856.37
6 Software copyrights 25,906,099.00 – – 25,906,099.00 25,906,098.00 – – 25,906,098.00 1.00 1.00
GRAND TOTAL 194,925,234.97 70,007,969.27 – 264,933,204.24 107,715,984.18 22,414,815.46 – 130,130,799.64 134,802,404.60 87,209,250.79
PREVIOUS YEAR 160,401,059.27 50,216,071.41 15,691,895.71 194,925,234.97 96,580,195.59 20,146,320.50 9,010,531.91 107,715,984.18 87,209,250.79 63,820,863.68
25
Twelfth Annual Report
SCHEDULE 4 : INVESTMENTS (Long Term) - At Cost
No. of Units As at As at
In Quoted Mutual Funds (as on 31-Mar-11 31-Mar-10
31.03.2011)
Can Liquid Fund Institutional Growth Plan 427,939.301 5,000,000.00 5,000,000.00

(Repurchase value as on 31.03.2011 - Rs 76,08,761 /-)
HDFC Cash Management Saving Plan Growth 579,494.081 7,792,358.94 7,792,358.94

(Repurchase value as on 31.03.2011 - Rs 1,18,74,993 /-)
DSP Merill Lynch Liquidity Fund - Growth 302,846.760 5,000,000.00 5,000,000.00

UTI Liquid Cash Plan Regular - Growth 4,521.583 5,000,000.00 5,000,000.00

Sub-Total (a) 22,792,358.94 22,792,358.94
In Wholly Owned Subsidiaries No.of Shares

(as on
31.03.2011)
NSE.IT(US) Inc. ( Equity share of $ 1 each fully paid ) 1 39.85 39.85

NSE.IT(UK) LIMITED (Equity Share of £ 1 each fully paid) 1 79.40 79.40
Sub-Total (b) 119.25 119.25

TOTAL OF INVESTMENTS ( a+b ) 22,792,478.19 22,792,478.19
26
As at 31-Mar-11 As at 31-Mar-10
PARTICULARS
Rs. Rs.

A: CURRENT ASSETS
Interest Accrued but not due
On Bank Term Deposits & Auto Fixed Deposits (a) 5,861.77 84,811.91
Sundry Debtors
Outstanding for a period of more than six months
Unsecured, Considered good 29,191,757.29 12,834,348.00
Other Debts
(b) 132,248,303.57 118,723,380.78
Inventory (c) 179,189.08 230,398.80
Cash in hand – –
In Current accounts 72,855,672.91 2,627,049.33
In Current accounts (Including Auto Fixed Deposit Account) 126,682,300.00 174,645,981.84
In Term Deposits 1,469,453.69 1,313,317.38
(d) 201,007,426.60 178,586,348.55
TOTAL (a + b + c + d) 333,440,781.02 297,624,940.04
Advances recoverable in cash or in kind for value to be received 13,519,105.91 12,207,295.66
Income Taxes Paid (Net of Provisions) 49,041,135.51 15,753,589.33
Deposits 42,281,790.00 33,647,975.00
Prepaid Expenses 8,582,509.00 4,971,733.00
Employee Loans – 250,000.00
Unbilled Revenue 14,000.00 1,154,200.00
TOTAL 113,438,540.42 67,984,792.99
Sundry creditors
-- Due to SSI Undertakings – –
-- Others 62,875,192.40 43,856,371.64
Withholding and other taxes payable 5,891,591.03 5,611,968.25
Advance received from customers 41,599,839.06 39,732,079.69
Other liabilities 48,453,919.81 45,173,280.76
TOTAL (a) 158,820,542.30 134,373,700.34
B : PROVISIONS
For Proposed Dividend 40,000,040.00 30,000,030.00
For Corporate Dividend Tax 6,489,007.00 4,982,630.00
For Leave Encashment 3,682,533.00 3,845,187.00
(b) 50,171,580.00 38,827,847.00
TOTAL (a+b) 208,992,122.30 173,201,547.34
27
SCHEDULES TO PROFIT & LOSS ACCOUNT

For the For the
year ended year ended
PARTICULARS 31-Mar-11 31-Mar-10
Rs. Rs.
SCHEDULE 7: REVENUE FROM SOFTWARE SERVICES & PRODUCTS

Software Product Revenues 27,956,502.49 27,811,844.77
Application Development & Maintenance Services 182,704,854.42 168,685,787.00
Infrastructure Management Services 264,109,125.76 221,296,375.45
E- Learning Solutions 496,399,867.00 327,715,505.00
Customer Care Services 40,861,357.00 43,531,350.00
TOTAL 1,012,031,706.67 789,040,862.22

Interest :-
- on Short Term Deposits & Auto Fixed Deposits with banks 9,917,853.00 8,859,380.50
[TDS Rs. 1040684 ( Previous Year Rs.1098665 )]
- on Employee Loans – 2,902.79
Excess Provision Written Back 4,847,559.39 2,285,293.08
Gain from Foreign Exchange Fluctuations 1,119,585.12 621,122.65
Miscellaneous Income 2,505,898.40 5,261,566.21
TOTAL 18,390,895.91 17,030,265.23
SCHEDULE 9: PERSONNEL EXPENSES

Salaries & Allowances 297,614,735.67 222,386,960.86
Contribution to Provident Fund 9,517,252.00 6,844,179.43
Contribution to Group Gratuity Scheme 751,305.00 952,344.00
Contribution to Superannuation Scheme 907,742.00 830,700.00
Staff Welfare Expenses 7,178,685.00 8,060,460.00
TOTAL 315,969,719.67 239,074,644.29
SCHEDULE 10: PURCHASES & OPERATING EXPENSES

Project Expenses 2,935,812.72 1,252,412.60
Fees & Subscription 94,399,413.00 82,394,374.00
Anuual Maintenance Charges – 53,412.44
Technical & Sub Contract Charges 169,106,572.57 140,139,328.38
TOTAL 266,441,798.29 223,839,527.42
28
For the For the

year ended year ended
PARTICULARS 31-Mar-10 31-Mar-09
Rs. Rs.
SCHEDULE 11: SELLING, GENERAL & ADMINISTRATIVE EXPENSES

Rent 103,945,908.93 73,701,938.05
Electricity charges 21,298,035.32 16,063,969.00
Repairs & Maintenance 6,977,247.66 5,089,307.93
Insurance 5,322,911.00 4,754,022.00
Rates & Taxes 184,712.00 144,937.00
Printing & stationary 3,949,583.35 2,597,434.00
Travelling expenses 17,032,612.70 13,643,128.62
Conveyance 5,601,574.25 4,023,650.00
Telephone & Internet Expenses 16,801,416.00 10,051,057.34
Professional Fees 6,356,970.48 3,285,355.00
Training expenses 1,064,064.00 393,486.00
Recruitment Charges 9,904,659.00 5,679,565.00
Pantry Expenses 1,668,458.00 1,221,638.59
Security Service Charges 12,031,591.00 5,721,212.98
Vehicle Expenses 167,279.00 563,309.45
Directors' sitting fees 85,000.00 125,000.00
Office Expenses 7,036,992.00 3,934,935.00
Advertisement Expenses 1,218,758.00 104,168.00
Business Promotion Expenses 1,239,943.00 –
Auditors Remuneration
- Audit fees 220,600.00 137,875.00
- Other Matters 49,635.00 137,875.00
Loss on Disposal of Fixed Asset – 193,107.03
Bad Debts Written Off 804,513.61 1,664,720.02
Other Expenses 4,203,269.24 6,279,118.11
TOTAL 227,165,733.54 159,510,809.12
29
NSE.IT LIMITED
Schedule 12: NOTES TO ACCOUNTS
a. Basis of Accounting
The financial statements have been prepared under the historical cost convention on accrual system and in
accordance with the generally accepted accounting principles.
b. Revenue recognition
Revenue from sale of software product licenses and sale of digital certificates is recognised on dispatch.
Revenue from resale of hardware and software is recognised on dispatch.
Revenue from fixed price contracts is recognised on the basis of the deliverables provided.
Revenues from maintenance contracts and technical support agreements are recognised on a pro-rata basis
over the period in which such services are rendered under the terms of the contracts and agreements.
Revenues from software development and maintenance on time and material basis and consultancy charges
are recognised based on the terms agreed with the customers.
Revenue from e-learning activity is recognised on the basis of enrollment.
Revenue from online examination services are recognized on the basis of exams conducted.
Interest on deployment of funds is recognised using the time proportion method, based on interest rates
implicit in the transaction.
Income excludes applicable taxes and other levies.
c. Expenditure
Expenses are accounted on accrual basis and provisions are made for all known losses and liabilities.
Since the company does not visualise any major expenditure on account of warranty given for maintaining
the software product licenses sold, no provisions are made on this account. Any expenditure that may have
to be incurred towards honouring the warranty shall be accounted for in the year in which it is incurred.
d. Fixed Assets
Fixed Assets are stated at cost of acquisition less accumulated depreciation and impairments, if any. Cost of
acquisition is inclusive of freight, duties, taxes and other incidental expenses.
Individual low cost assets (acquired for less than Rs.5000/-) are depreciated at the rate of 100% in the year of
acquisition.
Fixed Furniture and fixtures, electrical installation and office equipment including civil improvements at
lease hold premises are depreciated over the lease period.
Expenditure incurred during the year for acquiring software copyright, source code and other deliverables
along with the in-house development cost is capitalised and depreciated @ 33 1/3 % on Straight Line Method,
which is higher than the rates prescribed in the aforesaid schedule.
Software products/ licenses purchased/ acquired for internal use of the Company which have expected longer
life are capitalised and depreciated @ 33 1/3 % on Straight Line Method, which is higher than the rates
prescribed in the aforesaid schedule.
Depreciation on fixed assets other than above is provided using straight line method at the rates specified in
schedule XIV to Companies Act, 1956.
30
e. Inventory
The Inventory is valued at cost or net realizable value whichever is lower.
f. Foreign currency transactions
Transactions in foreign exchange are accounted at the exchange rates prevailing on the date on which
transactions have taken place. Outstanding if any, at the end of the year are converted at the year end rates.
g. Employee Retirement Benefits
Gratuity
The Company has maintained a Group Gratuity Assurance Scheme with the Life Insurance Corporation of
India towards which it annually contributes a sum determined by Life Insurance Corporation of India. The
Company has made provision for gratuity liability estimated as per actuarial report as on the balance sheet
date to comply with the Accounting Standard 15 for employee benefits.
Superannuation
Superannuation benefit for employees designated as managers and above is covered by Group Superannuation
Scheme with the Life Insurance Corporation of India towards which it annually contributes a sum based on
a specified percentage of each covered employees' salary. The contribution paid for the year on the Group
Superannuation Scheme is charged to revenue.
Provident Fund
Company had established the NSE.IT Limited Employees' Provident Fund Trust to which both the employee
and the employer, respectively made monthly contributions equal to 12% of the employee's basic salary.
Upto 31st July 2010 the company had an obligation to make good the short fall, if any, between the return
from its investments and the administered interest rate.
From 1st August 2010, contribution to Provident Fund is charged to revenue as per applicable Rules /
Statute.
Leave Encashment
Leave encashment paid to the employees while in service is charged to revenue as the same is considered as
a short term benefit. Provision for leave encashment on retirement is made on the basis of actuarial valuation
at the end of the year.
h. Investments
Long-term investments are carried at cost. Provision for diminution is made to recognize a decline, other
than temporary, in their value.
i. Income Tax
Provision for Income Tax is made on the basis of the prevailing rates under the Income Tax Act, 1961.
Company has accounted deferred tax liability/asset in accordance with the Accounting Standard
22 - Accounting for Taxes on Income.
2. Contingent Liabilities:
(i) Estimated amount of contracts remaining to be executed on capital account and not provided for is
1,41,00,311/- (Previous Year: 18,60,832).
31
(ii) On account of bank guarantees: Rs.Nil (Previous Year: Rs. 5,000/-).

(iii) On account of corporate guarantee: Rs Nil (Previous Year: Rs. 2,815,750/-)
(iv) On account of disputed demand of income tax: Nil (Previous Year: Rs.Nil/-)
(v) On account of disputed demand of sales tax: Rs.1,79,169/- (Previous year Rs.1,79,169 /-)
3. Capital Work in Progress includes following assets purchased during the Year but not installed:
Asset/Expenses Head As on 31-Mar-11 As on 31-Mar-2010
Adrenalin Shift Management Module 22,863.00 Nil
CCTV Cameras Nil 1,36,762.64
Total 22,863.00 1,36,762.64
4. Managerial remuneration
Particulars For the year ended Previous Year ended
31-Mar-2011 31-Mar-2010
Mr. Ramesh Padmanabhan, MD & CEO
Salary, Bonus & Allowances 11,395,851 8,180,430
Company's contribution to Provident Fund 603,793 417,600
Company's contribution to Superannuation Fund 754,742 522,000
Gratuity (@ one month's Basic Salary) 419,301 290,000
Other Perquisites Nil Nil
Total 13,173,687 94,10,030
The aforesaid remuneration paid to Mr. Ramesh Padmanabhan is within the limits of the total remuneration
approved by Central Government under Section 269,198(4)/309(3) and 637AA of the Companies Act, 1956
vide letter dated 5th August 2010, which is valid up to 12th April 2012.
5. Expenditure in foreign exchange

31-Mar-2011 31-Mar-2010
Travelling 47,141 499,666
Subcontract/ Technical Fees 15,00,98,955 113,560,884
Software Licenses 1,23,110 Nil
Total 15,02,69,206 114,060,550
32
6. Earnings in foreign exchange:

31-Mar-2011 31-Mar-2010
Application Development and Maintenance
Services 8,84,601 919,600
Infrastructure Management Services NIL 115,731
Total 8,84,601 10,35,331
7. Details of exchange fluctuation:

31-Mar-2011 31-Mar-2010
(Loss) on Foreign Exchange transactions (3,75,913) (1,551,156)
Gain on Foreign Exchange Transactions 1,495,498 2,172,279
Net Gain / (Loss) 1,119,585 621,123
8. C.I. F. value of imports in respect of Capital goods: Nil (Previous Year : Rs. Nil/-)
9. As on the Balance Sheet date, the amounts due to Small-Scale Industrial undertaking are not outstanding for
more than 30 days. There is no micro, small and medium enterprises to whom Company owes dues which
are outstanding for more than 45 days at balance sheet date computed on unit wise basis.
10. The company is primarily engaged in the business of development and maintenance of computer software.
The production, acquisition and sale of such software cannot be expressed in any generic unit. Hence, it is
not possible to give the quantitative details of sales and certain information as required under paragraphs 3,
4C and 4D of part II of Schedule VI of the Companies Act, 1956 for such product. During the year the
company has not undertaken any trading activity in respect of software or hardware.
The details of Stock of Digital certificates as on 31st March 2011 is as follows:
Particulars Units (in No's) Value (In Rs.)
Digital Certificates
Opening Stock 465 2,30,398
Add: Purchases during the year 1,832 9,50,080
(Less): Sales Qty/ Purchase Cost of Units Sold (1,923) (10,01,289)
Closing stock 374 1,79,189
33
12. Segment Reporting:

In the opinion of the management, the company has two reportable business segment viz. offering "End to
End solutions" which includes revenues from sale and maintenance of software products, software consultancy
services, custom software development, information technology infrastructure services provided
predominantly to market participants in the securities and commodity markets and "E-learning Solutions"
which includes sale and maintenance of e-learning software products, online education and examination
services and other incidental services as its primary segments. This takes into consideration the commonality
in the risks and rewards of the products/ solutions and related services offered nature of services, type / class
of customers for the products / services, management structure and system of financial reporting. Accordingly,
the results of the said segments have been disclosed hereunder. Further, the company has no reportable
geographical segments and on that basis, no secondary segment information is furnished.
Primary Business Segments
Year ended March 31, 2011 Rupees
End to End E-learning Total
Solutions Solutions
Revenues 515,631,849 496,399,867 1012,031,706
461,231,347 327,809,515 789,040,862
Identifiable operating expenses 174,367,606 223,838,945 398,206,551
202,226,937 189,113,412 391,340,349
Allocated expenses 328,871,644 104,913,872 433,785,516
210,085,501 49,894,659 259,980,160
Segmental operating income / (loss) 12,392,590 167,647,050 180,039,640
49,918,909 88,801,444 137,720,353
Other income 18,390,896
17,030,265
Prior period adjustment (1,308)
60,589
Net profit before taxes 198,429,228
154,811,208
Income taxes 62,067,365
59,537,762
Net profit after taxes 136,361,863
95,273,446
(Figures in Italics are for Previous Year)
Fixed assets used in the Company's business or liabilities contracted have not been indentified to any of the
reportable segments, as the fixed assets and services are used interchangeably between segments. Accordingly
no disclosure relating to total segment assets and liabilities are made
34
12. In compliance with Accounting Standard 18 "Related Party Disclosures", the required disclosures are given
in the table below:
A) Names of the related parties and relationship:
Sr.
Related Party Nature of Relationship
No.
1 National Stock Exchange of India Limited Holding Company
2 National Securities Clearing Corporation Limited Fellow Subsidiary
3 DotEx International Limited Fellow Subsidiary
5 NSE.IT (UK) Limited Wholly owned Subsidiary Company
6 NSE.IT (US) Inc. Wholly owned Subsidiary Company
7 India Index Services & Products Limited Joint Venture of Holding Company
8 Power Exchange India Limited Joint Venture of Holding Company
9 NSE.IT Limited Employees' Provident Fund Trust
(Dissolved w.e.f. 1st August'2010) Entity over which control exists
10 NSE.IT Limited Employees' Group Superannuation
Scheme Entity over which control exists
11 NSE.IT Limited Employees' Gratuity Fund Trust Entity over which control exists
12 National Stock Exchange of India Limited Employees' Entity over which Holding
Provident Fund Trust company's control exists
Group Superannuation Fund Trust company's control exists
Group Gratuity-cum-Life Assurance Scheme. company's control exists
15 National Stock Exchange Investor Protection Fund Trust Entity over which Holding
company's control exists
16 Mr. Ramesh Padmanabhan - Managing Director & CEO Key Management Personnel
B) Details of transactions with related parties as follows:

Name of the Nature of transactions Year ended Year ended
related party 31/03/2011 31/03/2010
National Stock • Infrastructure Management Services 191,297,916 143,713,871
Exchange of • Application Development and
India Limited Maintenance Services 51,830,653 35,766,657
• Software Product Revenues 67,000 204,500
• E- Learning 15,242,330 Nil
• Applicable taxes recovered 31,115,203 21,248,220
• Reimbursement of expenses received 45,710 52,526
• CTCL empanelment fee paid 330,900 330,900
• Rent Paid 2,106,732 22,72,327
• Usage Charges paid - STP Central
HUB & other 48,519 136,862
35

related party 31/03/2011 31/03/2010
• Reimbursement paid for other expenses
incurred 337,208 80,871
• Purchase of fixed assets Nil 5,200
• Dividend paid 30,000,030 10,000,010
• Loan Taken during the Year Nil 40,000,000
• Loan Repaid during the Year Nil 40,000,000
• Interest on Loan paid during the Year Nil 2,139,179
Closing Balance - Dr./ (Cr.) 18,285,196 15,006,255
National Securities • Application Development and Maintenance
Clearing Corporation Services 10,601,873 6,555,544
Limited • Applicable taxes recovered 1,091,993 675,221
Closing Balance - Dr./ (Cr.) 1,369,693 753,677
NSE Infotech • Reimbursement of expenses received Nil Nil
Services • Reimbursement paid for expenses incurred Nil 3,460
Limited Closing Balance - Dr./ (Cr.) Nil 560
DotEx • Reimbursement of Expenses received 9,16473 624,265
International • Reimbursement for Expenses recoverable Nil 175,495
Limited • Application Development and Maintenance
Services 1,024,910 2,543,000
• Customer Care Services 39,181,357 42,411,350
• Infrastructure Management Services 3,878,458 2,121,009
National Stock • Software Product Revenues Nil 235,000
Exchange Investor • Infrastructure Management Services Nil 15,000
Protection Fund • Reimbursement of Expenses received 16,695 Nil
Trust • Applicable taxes recovered Nil 25,750
Closing Balance - Dr./ (Cr.) 16,695 Nil
Power Exchange • Application Development and
India Limited Maintenance Services 23,229,662 45,633,366
• Software Product Revenues Nil Nil
• Reimbursement of expenses received 34,638 Nil
• Infrastructure Management Services 5,276,623 10,232,501
NSE.IT US Inc • Software Product Revenues 884,601 Nil
NSE.IT (UK) Ltd • Expenses incurred on behalf of company 130,204 184,437
Closing Balance - Dr./ (Cr.) 426,909 278,981
36

related party 31/03/2011 31/03/2010
NSE.IT Limited • Contribution for shortfall of interest 1,54,283 340,095
Employees' Closing Balance - Dr./ (Cr.) 10,000 (404,894)
Provident Fund
Trust
Key Management • Gross remuneration including allowances,
Personnel - Ramesh perquisites and contribution to Provident
Padmanabhan - Fund and Superannuation Fund etc. 13,173,687 9,638,364
MD &CEO
The income figures are excluding applicable taxes recovered.
13. The Company has taken following assets on non-cancelable renewable operating lease basis:
Office Premises : Leave & License Agreement for maximum of 108 months
The maximum future rent obligations as per the respective agreements are as follows:-
Future Lease Rent obligations For the Year ended
31-Mar-2011 (Rs.) 31-Mar-2010 (Rs.)
Office & Residential Premises
not later than 1 year 103,919,632 75,798,724
later than 1 year not later than 5 years 251,920,960 134,454,237
later than 5 years 134,859,745 66,151,292
Total 490,700,337 276,404,253
14. In accordance with Accounting Standard - 20 "Earning per Share", the required disclosure is given below:
31-Mar-2011 31-Mar-2010
Net Profit attributable to Shareholders (Rs.) 136,361,863 95,273,446
Weighted Average number of equity shares issues (in Nos). 10,000,010 10,000,010
The dilutive impact of ESOPs granted as mentioned in Note 18 on the EPS mentioned below is considered
nominal and not material and therefore, no separate diluted EPS has been computed.
15. Components of deferred tax Asset / (Liability) are as under:
31-Mar-2011 31-Mar-2010
On account of depreciation (8,965,487) (4,445,541)
On account of impairment of intangible asset 2,855,611 4,008,998
On account of disallowance u/s 40 (a)(ia) 25,87,881 Nil
Deferred Tax Asset / (Liability) (3,521,995) (436,543)
37
16. In accordance with Accounting Standard 29 "Provisions, Contingent Liabilities and Contingent Assets",
the company has made provision for "Performance Pay" payable to the employees and "Leave Encashment".
The particulars of these provisions are as under:
Particulars F.Y. 2010-11 F.Y. 2009-10

Performance Leave Performance Leave
Pay (Rs.) Encashment (Rs.) Pay (Rs.) Encashment (Rs.)
Carrying amount at the
beginning of the year 28,162,752 38,45,187 11,889,746 4,691,942
Amounts used during the
year 24,947,597 33,19,440 18,869,281 2,634,549
Amounts unused reversed
during the year 1,067,137 Nil 4,00,000 Nil
Provisions made during
the year 2,69,93,117 31,56,786 35,542,287 1,787,794
Carrying amount at the
end of the year 29,141,135 36,82,533 28,162,752 3,845,187
In case of provision for performance pay, it is expected that these obligation will be met in the next financial
year.
17. In terms of the authority granted by the General Meeting held on September 25th, 2006, the Company has
formulated an Employee Stock Option Plan 2006 (ESOP). Under the said ESOP, 3,47,350 Options for
equivalent number of Equity Shares of the company have been granted as an incentive scheme to the
employees covered under the scheme. The Scheme provides that the Options shall vest in a graded manner
over a period of 4 years in the ratio of 25%, 30%, 35% and 10% respectively. The exercise period shall be
three years from the vesting of each tranche of the aforesaid options. Each option entitles the holder of the
option to 1 Equity Share of the Company at an exercise price of Rs.53/- per share, which is also the Fair
Market Value (FMV) of the share on the date of the grant as determined by a valuation report obtained from
an independent valuer.
The Guidance Note issued by the Institute of Chartered Accountants of India on Accounting for Employee
Share Based Payments requires accounting of the expense in regard to the ESOPs. The Company has adopted
the Intrinsic Value Method as given in the said Guidance for accounting for the same. The Company has
obtained expert opinion that since the Exercise Price is equal to the FMV of the shares on the grant date; it
would not be required to recognize any compensation expense since the "intrinsic value" of the options is NIL.
Quantity (Nos.) Quantity (Nos.)
Options at the beginning of the year 145,780 164,340
Options granted during the year Nil Nil
Options lapsed during the year 940 18,560
Options Exercised during the year Nil Nil
Options expired during the year Nil Nil
Balance Options in force 144,840 145,780
38
18. Adjustment for Short / Excess Provision for Taxes :

Short Provision for Income Tax FY 2004-05 Nil 82,673
Short Provision for Income Tax FY 2007-08 Nil 794,671
Short Provision for Income Tax FY 2009-10 82,73,395 Nil
Excess Provision for Fringe Benefit Tax FY 2007-08 (27,120) Nil
Excess Provision for Fringe Benefit Tax FY 2008-09 (2,64,362) Nil
Total 79,81,913 877,344
19. Effective April 1, 2007 the company adopted the Accounting Standard 15 "Employee Benefits". Company
has charged the gratuity expenses to revenue based on gratuity liability estimated as per actuarial report
furnished by independent actuarial valuer. The report which uses projected unit credit method shows the
position as at March 31, 2011 as under.
Particulars FY 2010-11 FY 2009-10
Obligation at period beginning 60,93,592 5,291,846
Service Cost 16,01,906 2,427,952
Interest Cost 502,721 587,824
Actuarial (gain)/loss (5,61,445) (1,470,030)
(Benefits paid) (145,000) (744,000)
Obligation at period end 7,491,774 6,093,592
Change in plan assets
Plan assets at period beginning, at fair value 7,027,937 3,336,520
Expected return on plan assets 562,235 544,523
Acturial gain / (Loss) 229,642 48,879
Contributions 1,771,451 3,842,015
(Benefits paid) (145,000) (744,000)
Plan assets at period end, at fair value 9,446,265 7,027,937

Reconciliation of present value of the obligation
and the fair value of the plan assets:
Fair value of the plan assets at the end of the period 9,446,265 7,027,937
Present Value of the defined obligations at the end
of the period 7,491,774 6,093,592
Funded Status 1,954,491 934,345
Asset / (liability) recognised in Balance Sheet 1,954,491 934,345
Assumptions
Interest Rate 8.00% 8.00%
39
Gratuity Cost for the period

Service Cost 1,601,906 2,427,952
Expected return on plan assets (562,235) (544,523)
Net Actuarial (gain) / loss recognised in the year (791,087) (1,518,909)
Expenses recognised in statement of Profit & loss 751,305 952,344
The estimate of future salary increases, considered in actuarial valuation, take account of inflation, promotion
and other relevant factors such as supply and demand factors in the employment market.
20. Company had established the NSE.IT Limited Employees' Provident Fund Trust to which both the employee
and the employer, respectively made monthly contributions equal to 12% of the employee's basic salary.
Upto 31st July 2010 the company had an obligation to make good the short fall, if any, between the return
from its investments and the administered interest rate. W.e.f. 1st August 2010, the company has transferred
the corpus balance of the NSE.IT Ltd. Employees Provident Fund Trust to the Regional Provident Fund
Office, Kandivali, Mumbai and started contributing to Provident Fund as per applicable Rules / Statute.
21. The previous year figures are regrouped, reclassified and rearranged, wherever necessary.
As per our report of even date attached

For Gokhale & Sathe For and on behalf of the Board of Directors
(Reg No : 103264W)
KEDAR MEHENDALE RAVI NARAIN RAMESH PADMANABHAN

Partner Chairman Managing Director & CEO
Membership No.116065
DILEEP CHOKSI J. RAVICHANDRAN

Director Director

40
CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2011
2010-2011 2009-2010
(Rs.) (Rs.)

Net Profit before tax, & Prior Period Adjustments 198,430,535.62 154,871,796.56
Add : Adjustments for
Interest Cost – 2,139,773.00
Depreciation 22,414,815.46 20,146,320.50
Impairment of Intangible Asset – 6,488,256.56
Loss on Disposal / Sale of Fixed Assets – 193,107.24
Less :Adjustments for
Interest from Fixed Deposits (9,917,853.00) (8,859,380.50)
Operating profit before working Capital Change 210,927,498.08 174,979,873.36

Change in Working Capital
Decrease / (Increase) in Sundry Debtors (13,524,922.79) (35,583,719.24)
Decrease / (Increase) in Inventory 51,209.72 (230,398.80)
Decrease / (Increase) in Loans & Advances (12,166,201.25) (15,824,889.85)
Decrease / (Increase) in Interest accrued 78,950.14 1,731,711.23
(Decrease) / Increase in Current Liabilities & Prov 24,284,187.96 38,533,378.18
Cash Generated from Operations 209,650,721.86 163,605,954.88

Direct Taxes Paid (Net of Refunds) (92,269,459.18) (48,966,415.01)
Interest on Income Tax/Wealth tax Refund
Prior period adjustment (1,308.00) (60,589.00)
Net Cash from Operating Activities- Total (A) 117,379,954.68 114,578,950.87

Interest from Fixed Deposits 9,917,853.00 8,859,380.50
Addition to fixed assets (70,007,969.27) (50,216,071.41)
Addition to CWIP 113,899.64 (136,762.64)
Cash flow from investing activity - Total (B) (59,976,216.63) (41,493,453.55)
41
2010-2011 2009-2010
(Rs.) (Rs.)
C) CASH FROM FINANCING ACTIVITY

Interest Cost – (2,139,773.00)
Loan received from NSE Limited – 40,000,000.00
Loan repaid to NSE Limited – (40,000,000.00)
Dividend Paid (30,000,030.00) (10,000,010.00)
Dividend distribution tax (4,982,630.00) (1,699,502.00)
(34,982,660.00) (13,839,285.00)
Net Increase/ (Decrease) In Cash & Cash Equivalent 22,421,078.05 59,246,212.32

Opening balance of Cash & Cash Equivalent 178,586,348.55 119,340,136.23
Closing balances of Cash & Cash Equivalent 201,007,426.60 178,586,348.55
Net Increase/ (Decrease) in Cash & Cash Equivalent 22,421,078.05 59,246,212.32

1 Cash and cash equivalent represent cash, bank balances and balances in fixed deposits
2 The above cash flow has been prepared under the "Indirect method" as set out in the Accounting Standard -3
For Gokhale & Sathe

Chartered Accountants ( Reg. No.103264W )
KEDAR MEHENDALE

42
ENCLOSURE FORMING PART OF ACCOUNTS

Balance Sheet Abstract and Company's General Business Profile
(information pursuant to Notification No. GSR No. 388(E) [F No.3/24/94-CLV] dated 15-5-1995,
issued by the Department of Company Affairs, Ministry of Law, Justice and Company Affairs)
Registration No. 122456
State Code 11
Balance Sheet Date 31-Mar-11
II Capital Raised during the Year

Public Issue NIL
Rights Issue NIL
Bonus Issue NIL
Private Placements NIL
III Position of Mobilisation and Deployment of Funds Rs. In Thousands

Total Liabilities 395,505
Total Assets 395,505
Sources of Funds
Paid-up Capital 100,000
Reserves & Surplus 291,983
Secured Loans NIL
Unsecured Loans NIL
Deferred Tax Liability 3,522
Net Fixed Assets 134,825
Investments 22,793
Net Current Assets 237,887
Misc. Expenditure NIL
Accumulated Losses NIL
IV Performance of Company Rs. In Thousands

Turnover 1,030,423
Total Expenditure 831,993
Profit Before Tax 198,430
Profit After Tax 136,362
Earning Per Share (Rs.), on par value of Rs.10 per share 13.64
Dividend Rate 40%
43
VI Generic Names of Three Principal products / Services of

Company (as per monetary terms)
Item Code No. (ITC Code) N.A.
Product Description Software Products and Services

DILEEP CHOKSI J.RAVICHANDRAN

Director Director
Mumbai CHIRAG SHAH

44
NSE.IT LIMITED
Statement pursuant to Section 212 of the Companies Act, 1956, relating to Subsidiary Companies
Sr. Particulars Name of the Subsidiary

No. NSE.IT (UK) Limited NSE.IT (US) Inc.
1 Financial Period ended 31-Mar-11 31-Dec-10
3 Shares held by the Holding Company in the
Subsidiary 1 Equity Share 1 Equity Share
4 Aggregate of profits or losses of the subsidiary
for the current period so far as it concerns the
Members of the holding company
(a) dealt with or provided for in the accounts
of the holding company NIL NIL
(b) not dealt with or provided for in the
accounts of the holding company (158,461) (2,602,755)
5 The net aggregate of profits or losses of previous
financial years of the subsidiary so far it concerns
the members of the holding Company
(a) dealt with or provided for in the accounts of
the holding company NIL NIL
(b) not dealt with or provided for in the
accounts of the holding company (340,936) 415,285
Issued, Subscribed & Paid-up Share Capital 73 45
Reserves (499,398) (2,187,469)
Loans – –
Total Assets (499,325) 9,548,060
Total Liabilities (499,325) 9,548,060
Investments – –
Turnover – –
Profit (158,461) (2,602,755)
Note :Figures are valued at Exchange rates prevailing as on 31st March 2011.

DILEEP CHOKSI J.RAVICHANDRAN

Director Director
Mumbai CHIRAG SHAH

45
Y Y
NSE.IT (UK) LIMITED
(A wholly owned subsidiary of NSE.IT Limited)
FOURTH ANNUAL REPORT

2010-11
Y Y
NSE.IT (UK) Limited Fourth Annual Report NSE.IT (UK) Limited Fourth Annual Report
REPORT OF THE DIRECTORS AND FINANCIAL STATEMENTS REPORT OF THE DIRECTORS AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH 2011 FOR THE YEAR ENDED 31ST MARCH 2011
FOR NSE.IT (UK) LIMITED FOR NSE.IT (UK) LIMITED
CONTENTS OF THE FINANCIAL STATEMENTS CONTENTS OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2011 FOR THE YEAR ENDED 31ST MARCH 2011
Page Page
Company Information 2 Company Information 2
Report of the Directors 3 Report of the Directors 3
Report of the Independent Auditors 5 Report of the Independent Auditors 5
Profit and Loss Account 7 Profit and Loss Account 7
Balance Sheet 8 Balance Sheet 8
Notes to the Financial Statements 9 Notes to the Financial Statements 9
Profit and Loss Account 11 Profit and Loss Account 11
1 1
NSE.IT (UK) Limited Fourth Annual Report
COMPANY INFORMATION
FOR THE YEAR ENDED 31ST MARCH 2011
DIRECTORS
J Ravichandran
R Padmanabhan
SECRETARY
R Padmanabhan
REGISTERED OFFICE : Walmar House

288-292 Regent Street
London
W1B 3AL
REGISTERED NUMBER : 5994268 (England and Wales)
AUDITORS : Butler & Co

Chartered Accountant & Registered Auditors
3rd Floor,
Walmar House
London
W1B 3AL
2
REPORT OF THE DIRECTORS

The directors present their report with the financial statements of the company for the year ended 31st March
2011.
PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of software consultancy.
REVIEW OF BUSINESS
The results for the period and financial position of the company are as shown in the annexed financial statements.
DIVIDENDS
No dividends will be distributed for the year ended 31st March 2011.
DIRECTORS
The directors shown below have held office during the whole of the period from 1st April 2010 to the date of this
report.
J Ravichandran
R Padmanabhan
STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors and the financial statements in accordance
with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the
directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors
must not approve the financial statements unless they are satisfied that they give a true and fair view of the state
of affairs of the company and of the profit or loss of the company for that period. In preparing these financial
statements, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the
company's transactions and disclose with reasonable accuracy at any time the financial position of the company
and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also
responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention
and detection of fraud and other irregularities.
3
REPORT OF THE DIRECTORS

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies
Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to
have taken as a director in order to make himself aware of any relevant audit information and to establish that the
company's auditors are aware of that information.
AUDITORS
The auditors, Butler & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.
ON BEHALF OF THE BOARD:
R Padmanabhan
Secretary
Date: April 7, 2011
4
REPORT OF THE INDEPENDENT AUDITORS TO THE SHAREHOLDERS OF

NSE.IT (UK) LIMITED
We have audited the financial statements of NSE.IT (UK) Limited for the year ended 31st March 2011 on pages
seven to eleven. The financial reporting framework that has been applied in their preparation is applicable law
and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members
those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the
company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are
responsible for the preparation of the financial statements and for being satisfied that they give a true and fair
view. Our responsibility is to audit the financial statements in accordance with applicable law and International
Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices
Board's Ethical Standards for Auditors.
Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to
give reasonable assurance that the financial statements are free from material misstatement, whether caused by
fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company's
circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant
accounting estimates made by the directors; and the overall presentation of the financial statements.
Opinion on financial statements

In our opinion the financial statements:
- give a true and fair view of the state of the company's affairs as at 31st March 2011 and of its loss for the
year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
and
- have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Report of the Directors for the financial year for which the financial
statements are prepared is consistent with the financial statements.
5
REPORT OF THE INDEPENDENT AUDITORS TO THE SHAREHOLDERS OF

NSE.IT (UK) LIMITED
Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report
to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received
from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
Sanjeev Phadke (Senior Statutory Auditor)

for and on behalf of Butler & Co
& Registered Auditors
3rd Floor Walmar House
London
W1B 3AL
Date: April 7, 2011.
6
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2011
Particulars Notes As at 31.3.2011 As at 31.3.2010

£ £
TURNOVER – –
Administrative expenses 2,171 693
OPERATING LOSS
ON ORDINARY ACTIVITIES
BEFORE TAXATION 3 (2,171) (693)
Tax on loss on ordinary activities 4 – –
LOSS FOR THE FINANCIAL YEAR

AFTER TAXATION (2,171) (693)
CONTINUING OPERATIONS
None of the company's activities were acquired or discontinued during the current year or previous year.
TOTAL RECOGNISED GAINS AND LOSSES

The company has no recognised gains or losses other than the losses for the current year or previous year.
The notes form part of these financial statements
7
BALANCE SHEET 31ST MARCH 2011
Particulars Notes As at 31.3.2011 As at 31.3.2010

£ £
CREDITORS
Amounts falling due within one year 5 6,841 4,670
NET CURRENT LIABILITIES (6,841) (4,670)
TOTAL ASSETS LESS CURRENT

LIABILITIES (6,841) (4,670)
CAPITAL AND RESERVES

Called up share capital 6 1 1
Profit and loss account 7 (6,842) (4,671)
SHAREHOLDERS' FUNDS 8 (6,841) (4,670)
The financial statements were approved by the Board of Directors on 7th April 2011 and were signed on its behalf by:
J RAVICHANDRAN R PADMANABHAN
Director Director
The notes form part of these financial statements
8
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2011
1. ACCOUNTING POLICIES
Accounting convention
The financial statements have been prepared under the historical cost convention.
Going Concern
As at 31st March 2011, the company's current liabilities exceed current assets by £6,841
(2010 - £4,670). However, the directors of the company consider that the going concern basis is
appropriate in view of the assurance of continuing financial support which the company has
received from its shareholders.
Financial Reporting Standard Number 1

Exemption has been taken from preparing a cash flow statement on the grounds that the company
qualifies as a small company.
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at
the balance sheet date.
2. STAFF COSTS
There were no staff costs for the year ended 31st March 2011 nor for the year ended 31st March 2010.
The average monthly number of employees during the year was as follows:
2011 2010
Management 2 2
3. OPERATING LOSS
The operating loss is stated after charging:
2011 2010
£ £
Auditors' remuneration 630 630
Directors' remuneration – –
4. TAXATION
Analysis of the tax charge
No liability to UK corporation tax arose on ordinary activities for the year ended 31st March 2011 nor
for the year ended 31st March 2010.
9
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2011
5. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2011 2010
£ £
Amounts owed to group undertakings 5,850 4,040

Accrued expenses 991 630
6,841 4,670
6. CALLED UP SHARE CAPITAL
Authorised:
Number: Class: Nominal 2011 2010
value: £ £
1 Ordinary 1 1 1
7. RESERVES
Profit
and loss
account
£
At 1st April 2010 (4,671)
Deficit for the year (2,171)
At 31st March 2011 (6,842)
8. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

2011 2010
£ £
Loss for the financial year (2,171) (693)
Share issued
Net reduction of shareholders' funds (2,171) (693)

Opening shareholders' funds (4,670) (3,977)
Closing shareholders' funds (6,841) (4,670)
10
PROFIT AND LOSS ACCOUNT

2011 2010
£ £ £ £
Income – –
Expenditure
Professional fees 1,528 24
Auditors' remuneration 630 630
2,158 654
(2,158) (654)
Finance costs
Bank charges 13 39
NET LOSS (2,171) (693)
This page does not form part of the statutory financial statements
11
Y Y
NSE.IT (US) INC.
(A wholly owned subsidiary of NSE.IT Limited)
FOURTH ANNUAL REPORT

2010
Y Y
NSE.IT (US) Limited Fourth Annual Report
NSE.IT (US) INC.

A CORPORATION
NOTES TO FINANCIAL STATEMENTS
*UNAUDITED*
AS OF DECEMBER 31, 2010
SELECTED INFORMATION: SUBSTANTIALLY ALL DISCLOSURES REQUIRED ARE NOT INCLUDED

IN THESE NOTES TO FINANCIAL STATEMENTS
NOTE 1 : COMPANY PROFILE

The following is a brief profile of the business:
A: The business is a corporation.
B: The business's main source of revenue is from software development and maintenance services.
C: The business's year end is Decemeber 31 of each year.
NOTE 2 : ACCOUNTING POLICY

The corporation uses the accrual method of accounting, which is the method of recording transactions, by which
revenue and expenses are reflected in the accounts in the period which they are considered to be earned and
incurred, respectively, whether or not such transactions have been finally settled by receipt or payment of cash or
its equivalent. Also, depreciation expense is computed and recorded in the business's financial statements in
accordance with the Internal Revenue Code, which may result in material differences from depreciation computed
using useful lives.
NOTE 3 : METHOD OF DEPRECIATION

The business uses the methods prescribed by the Internal Revenue Code to calculate the current year's depreciation
expense.
The amount of depreciation claimed each month is estimated. At the end of the year the amounts are adjusted to
actual.
NOTE 4 : FEDERAL INCOME TAX

No provision for Federal income taxes has been made in business's financial statement on account of the net loss
incurred during the year.
1
NSE.IT (US) INC.

STATEMENT OF ASSETS, LIABILITIES, AND SHAREHOLDERS' EQUITY
AS OF DECEMBER 31,2010
As of As of
December 31,2010 December 31,2009
US $ US $
ASSETS
Fixed Assets:
Computer Equipment 1,345 –
(Accumulated Depreciation) (1,345) –
Total Net Fixed Assets – –
Current Assets:
Cash and cash equivalents 196,728 225,381
Accounts receivable 13,429 13,429
Rental deposit 2,400 2,400
Total Current Assets 212,557 241,210
TOTAL ASSETS 212,557 241,210
LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:
Accounts payable – –
Accounts payable - related parties 220,531 220,531
Other current liabilities 40,722 11,433
Total Current Liabilities 261,253 231,964
Shareholders' Equity
Equity shares, $ 1 par value, Authorized shares
Issued, Subscribed & Paid up 1 1
Additional paid-in-capital – –
Retained earnings (48,697) 9,245
Total Shareholders' Equity (48,696) 9,246
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 212,557 241,210
For NSE.IT (US) Inc.
Ramesh Padmanabhan
Date : 24th March 2011 Director
2
NSE.IT (US) INC.

STATEMENT OF REVENUES AND EXPENSES
JANUARY THROUGH DECEMBER 2010
Year Ending Year Ending

December 31, 2010 December 31, 2009
US $ US $
REVENUE
Third parties – –
Related parities – –
Total Revenues – –
COST OF REVENUE
Personnel Expenses (Salaries) 43,333 –
Total Cost of Goods Sold 43,333 –
Gosss Profit (43,333) –
OPERATING EXPENSES
General and administrative expenses
Rental Expenses 79 –
Telephone Expenses 590 –
Conveyance & Travelling 2,975 –
Bank Charges – 146
Professional Fees 3,812 6,348
Depreciation and amortisation 1,345 –
Entertainment Expenses 476 –
Miscellaneous Expenses 651 –
Office Supplies 822 –
Payroll Taxes 2,960 –
Total General and Administrative Expenses 13,710 6,494
Operating Income (57,043) (6,494)

Interest on delayed payment of tax 76 –
Provision for Income Taxes ( Short Provision ) 823 2
Net Income / (Loss) (57,942) (6,496)
For NSE.IT (US) Inc.
Date : 24th March 2011 Ramesh Padmanabhan

Director
3
A A
DotEx International Limited
(A Wholly owned Subsidiary of National Stock Exchange of India Limited)
DotEx
DotEx
First with the next
ELEVENTH ANNUAL REPORT

2010 – 11
A A
DotEx International Limited Eleventh Annual Report
BOARD OF DIRECTORS
Mr. J. Ravichandran
Mr. Suresh Narayan : Director in-charge
SECRETARY
Mr. Ved Malla : Asst. Company Secretary
AUDITORS : M/s. K.S. Aiyar & Co.

F 7, Laxmi Mills,
Shakti Mills Lane,
(Off. Dr. E. Moses Road)
Mahalaxmi
Mumbai 400 011

Plot C-1, Block ‘G'
Bandra (East)
Mumbai- 400 051
DIRECTORS' REPORT
To,
The Members,
Your Directors have pleasure in presenting the Eleventh Annual Report and the Audited Accounts of DotEx
International Limited for the financial year ended March 31, 2011.
I. OPERATIONS AND MAJOR EVENTS DURING THE YEAR

DotEx manages the data feed of NSEIL and supplies the same to its clients. Currently, the following
products are offered by DotEx:-
1) Real Time Data
2) Snapshot Data
3) End of Day Data
4) Historical Data
5) Corporate Data
The products related to real time data, snapshot data, end of day data and historical data are further
segregated into the following segments:
(i) Capital Market [CM] segment
(ii) Futures and Options Market [F&O] segment
(iii) Wholesale Debt Market [WDM] segment
(iv) Securities Lending & Borrowing Market [SLBM] segment
(v) Currency & Interest Rate Futures Market segment
Currently, real time feed is being subscribed by 33 clients, snapshot feed by 36 clients, end of day
feed by 23 clients and Corporate data by 2 clients.
Your Company is pleased to inform you that during the year, DotEx also operationalised the tick by
tick data feed and the 1 minute snapshot feed.
DotEx also provides a shared platform called NEAT on Web (NOW) which is a shared CTCL and risk
management tool for the trading members.
During the year, DotEx started providing the following additional facilities through NOW platform
viz., access to NSE IPO segment, access to Ace Commodity Exchange (ACE) markets, provision of
Direct Market Access (DMA) facility and provision of news from Newswire 18. With the objective
of improving the reach and providing stable connectivity to members, the following new initiatives
were taken:-
1
• Mobile platform to provide live streaming data and trading capability. Market Data is made available
as an open application for any investor or potential investor who registers on NSE website. For
investors desirous of trading, they can avail the facility from any NOW enabled trading member.
• Tied up with Pvt. VSAT service providers to make NOW available through Pvt. VSAT Network. This
facility has been proved to be a boon to users in northeast regions where even basic internet connectivity
is an issue.
The above initiatives have resulted in an increase in trading turnover through NOW platform during the
financial year 2010-11.
During the year 2010-11, DotEx earned a profit after tax of Rs. 1,416.68 lakhs as compared to a profit of
Rs. 1,304.32 lakhs during 2009-10. The financial position of DotEx has improved significantly in the current
financial year by virtue of income generated through revision in tariff, increase in the number of clients and
increase in the number of vendors reporting end user clients. The financial results for the financial years
2010-11 and 2009-10 are summarised hereunder:-
Particulars 2010–11 2009–10

(Rs. in Lakhs) (Rs. in Lakhs)
Income 5,445.23 4,356.87

Expenditure (other than depreciation) 2,977.88 2,188.61
Profit before depreciation and tax 2,467.35 2,168.26
Profit after tax 1,416.68 1,304.32
Profit / Loss brought forward from previous year 225.08 181.34
Excess corporate Dividend Tax for last year transferred back 0.69 –
Profit available for appropriation 1,642.45 1,485.66
General Reserve 1,200.00 1,050.00
III. DIVIDEND
In view of the above results, your Directors recommended payment of dividend of Rs. 1.50 per share for the
year 2010 -11.
2

The Company is committed to maintain the highest standards of corporate governance and adhere to corporate
governance requirements. In continuation of its pursuit to establish good corporate governance practice,
your Company, while already complying by and large with a major part of the Corporate Governance Voluntary
Guidelines 2009 issued by the Ministry of Corporate Affairs, is in the process of complying with/examining
the possibility of implementing, the remaining part of the said Guidelines.
V. DIRECTORS
In accordance with the provisions of the Companies Act, 1956 and the Company's Articles of Association,
Mr. Ravi Narain retires by rotation at the ensuing Annual General Meeting and being eligible offers himself for
re-appointment.

Your Directors confirm that –
i. in the preparation of the Annual Accounts, the applicable accounting standards have been followed
ii. the directors had selected such accounting policies and applied them consistently and made judgments
of the Company at the end of the financial year i.e., 31st March 2011 and of the profit of the company
for that year;
iii. the directors have taken proper and sufficient care for the maintenance of adequate accounting records
in accordance with the provisions of Companies Act, 1956 for safeguarding the assets of the Company
iv. the directors had prepared the annual accounts on a going concern basis.

The Audit Committee comprises of three Directors viz., Mr. Ravi Narain, Ms. Chitra Ramkrishna and
Mr. J. Ravichandran as its members. During the year under review, the Committee met four times i.e., on
April 26, 2010, August 12, 2010, November 29, 2010 and February 16, 2011. The details of the attendance
of the members of Audit Committee are presented in the following table:-
Names Number of meetings Number of meetings

held during the year attended
Mr. Ravi Narain 4 4
Ms. Chitra Ramkrishna 4 4
Mr. J. Ravichandran 4 3
3
VIII. AUDITORS
M/s. K. S. Aiyar and Co., Chartered Accountants, Auditors of the Company, retire at the forthcoming Annual
from the Auditors to the effect that their re-appointment, if made, would be within the limits prescribed
under Section 224(1B) of the Companies Act, 1956.
IX. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN

EXCHANGE EARNINGS/OUTGO
a) Conservation of Energy, Technology Absorption:
Section 217(1)(e) of the Companies Act, 1956 read with the aforesaid Rules are not applicable to the
Company.
b) Foreign Exchange earnings/outgo during the year under review:
During the year, the foreign exchange earnings were Rs. 1,295.85 lakhs and the foreign exchange
outgo was Rs. 4.90 lakhs.
A statement prepared pursuant to requirements of Section 217(2A) of the Companies Act, 1956 read with
the Companies (Particulars of Employees) Rules, 1975 is attached herewith.
XI. APPRECIATION
Your Directors are grateful for the support and co-operation extended by NSEIL and NSE Infotech Services
Limited and the valued clients and looks forward to their continued support and co-operation. Your Directors
would like to place on record their deep appreciation of the contribution made by the employees at all levels
to the continued growth of the Company.
Ravi Narain
Chairman
Place : Mumbai
4

No. Qualifications Years Nature of Received (Rs.) (No. of commencement Employment
1 Mr. Suresh Narayan 41 Director 2108290 1453771 21 January 24, 2005 Manager ,
B.Com, Grad. CWA In-charge National Securities
Depository
Limited
Notes :
1 Gross Remuneration includes Salary and other benefits, Company's contribution to Provident Fund, Superannuation
Fund, taxable value of perquisites, etc. Net remuneration represents gross remuneration less Company's contribution to
provident and superannuation funds, taxable value of perquisites, profession tax and income tax.
2 The above employee is not a relative of any Director.
3 The above employee is on deputation basis from the Company's holding Company i.e. National Stock Exchange of India
Limited (NSEIL) and the proportionate remuneration mentioned above in respect of him has been reimbursed to NSEIL
by the Company.
4 None of the employees is holding equity shares in the Company within the meaning of sub-clause (iii) of clause (a) of
sub-section (2A) of Section 217 of the Companies Act, 1956.
5
AUDITORS' REPORT
To the Members of
DOTEX INTERNATIONAL LIMITED
1. We have audited the attached Balance Sheet of DOTEX INTERNATIONAL LIMITED, as at March
31, 2011, the Profit and Loss Account and Cash Flow for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Company's management. Our responsibility is
to express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those
3. As required by the Companies (Auditor's Report) Order, 2003 as amended by the Companies (Auditor's
Report) Amendment Order, 2004 issued by the Central Government of India in terms of sub-section
(4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph (3) above, we report that:
(i) We have obtained all the information and explanations, which to the best of our knowledge and
(ii) In our opinion, proper books of account as required by law have been kept by the Company so far
(iii) The Balance sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report
are in agreement with the books of account ;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with
by this report comply with the Accounting Standards referred to in sub-section (3C) of section
211 of the Companies Act, 1956;
(v) On the basis of written representations received from the directors, as on March 31, 2011 and
taken on record by the Board of Directors, we report that none of the directors of the Company
6
are disqualified as on March 31, 2011 from being appointed as a director, in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to the explanations given to us,
accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2011;
(b) in the case of the Profit and Loss Account, of the profit for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
For K. S. AIYAR & CO.

Registration No: 100186W
Raghuvir M. Aiyar
Place : Mumbai Partner
Date : April 26, 2011 (M No. 38128)
7
(Referred to in paragraph 3 of our report of even date on the Accounts for the year ended March 31, 2011 of
DOTEX INTERNATIONAL LIMITED.)
In our opinion, and on the basis of such checks of the books and records as we considered appropriate and
according to the information and explanations given to us during the normal course of audit, which were necessary
to the best of our knowledge and belief, we report that:
1. The Company has maintained proper records showing full particulars including quantitative details and
situation of fixed assets.
2. A substantial portion of the fixed assets have been physically verified by the management during the year. In
our opinion, the frequency of verification is reasonable having regard to the size of the Company and the
nature of its assets. No material discrepancies were noticed on such verification.
3. The fixed assets disposed off during the year were not substantial, According to the information and
explanations given to us; we are of the opinion that the disposal of the fixed assets has not affected the going
concern status of the Company.
4. The Company is a service Company and therefore does not maintain any inventory; the direction in this
regard is therefore not applicable.
5. The Company has not granted any loans, secured or unsecured, to the companies, firms and other parties
covered in the Register maintained under Section 301 of the Companies Act, 1956. Accordingly sub clause
(b), (c) and (d) are not applicable.
6. The Company has not taken any loans, secured or unsecured, from the companies, firms and other parties
covered in the Register maintained under Section 301 of the Companies Act, 1956. Accordingly sub clause
(f), and (g) are not applicable.
7. In our opinion and according to the information and explanations given to us, there are adequate internal
control procedures commensurate with the size of the Company and the nature of its business with regard to
purchases of fixed assets and with regard to the sale of services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in the internal controls.
8. In our opinion and according to the information and explanations given to us, there are no transactions or
arrangements as referred to in section 301 of the Companies Act, 1956 that have to be required to be maintained
under that section. Sub clause (b) is not applicable.
9. The Company has not accepted any deposit from the public and consequently the directives issued by the
Reserve Bank of India, provisions of section 58A and 58AA of the Companies Act, 1956, and the Companies
(Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public are not applicable
to the Company. No order has been passed by the Company Law Board, National Law Tribunal or Reserve
Bank of India or any other court or any other tribunal.
10. In our opinion, the Company has an internal audit system commensurate with the size and nature of its
business.
11. According to the information and explanations given to us, the Central Government has not prescribed
maintenance of cost records under section 209(1) (d) of the Companies Act, 1956 in respect of services
carried out by the Company.
8
12. During the year there were no employees in the employment of the Company. Accordingly the directions
relating to Provident Fund and Employee's State Insurance are not applicable to the Company. Further,
based on our examination of the records maintained during the year, the Company is not liable to make any
payments towards Investor Education Protection Fund, Sales tax, Wealth tax, Customs duty, Excise duty,
and Cess. The Company has been generally regular in depositing Income Tax and Service Tax dues along
with Cess thereon with the appropriate authority.
13. According to the records of the Company, Sales tax, Income-tax, Customs duty, Wealth tax, Service tax,
Excise duty and Cess which have not been deposited on account of any dispute, are as follows:
Name of Statute Year to which the Forum where the Amount (Rs.)
(Nature of dues) amount relates dispute is pending
Income Tax (Tax/ Interest) 2008-09 Assessing Officer 22,13,540
14. The Company does not have any accumulated losses at the end of the financial year and has not incurred any
cash losses during the financial year covered by our audit and in the immediately preceding financial year.
15. The Company has neither taken any loans from any bank or financial institution nor issued any debentures.
16. The Company has not granted loans and advances on the basis of security by way of pledge of shares,
17. The Company is not a chit fund or a nidhi / mutual benefit fund / society.
18. In our opinion and according to the information and explanations given to us, the Company is not dealing in
or trading in shares, securities, debentures and other investments.
19. According to the information and explanations given to us, the Company has not given any guarantee for
loans taken by others from bank or financial institutions.
20. The Company has not raised any term loans.
21. According to the information and explanations given to us and on an overall examination of the balance
sheet of the Company, we report that no funds raised on short-term basis have been used for long-term
investment.
22. The Company has not made any preferential allotment of shares to parties and companies covered in the
register maintained under section 301 of the Companies Act, 1956.
23. The Company has not issued any debentures during the year.
24. The Company has not raised money by public issues during the year.
25. According to the information and explanations given to us, no fraud on or by the Company has been noticed
or reported during the course of our audit.
Place : Mumbai RAGHUVIR M. AIYAR

Date : April 26, 2011 Partner
(M No: 38128)
9

Schedule As At 31.03.11 As At 31.03.10
Amount (Rs.) Amount (Rs.)
I. SOURCES OF FUNDS
1. Shareholder's Funds
a Share Capital 1 120,000,000.00 120,000,000.00
b Reserves & Surplus 2 348,325,068.76 227,507,738.19
2. Deferred Tax Liabilities – 1,368,660.00

(Refer Note No.9)
TOTAL 468,325,068.76 348,876,398.19

1. Fixed Assets 3
a Gross Block 166,841,543.91 150,413,072.56
Less: Depreciation till date 86,250,538.79 52,521,094.84
Net Block 80,591,005.12 97,891,977.72
b Capital work in progress – 80,591,005.12 746,554.00 98,638,531.72
(including capital advances)
2. Investments 4 115,904,437.00 59,256,433.00
3. Current Assets, Loans & Advances 5
(a) Current Assets 295,842,924.40 194,162,469.49
(b) Loans & Advances 37,175,499.50 75,081,708.30
333,018,423.90 269,244,177.79
Less: Current Liabilities & Provisions 6 62,664,347.26 78,262,744.32
4. Deferred Tax Asset 1,475,550.00 –
( Refer Note no. 9)
TOTAL 468,325,068.76 348,876,398.19
Notes forming part of accounts 11

Chairman Director
RAGHUVIR M. AIYAR J.RAVICHANDRAN SURESH NARAYAN

Partner Director Director–in–charge
Membership No : 38128
Place : Mumbai VED MALLA

10
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31,2011
Schedule For the year For the year

ended 31.03.2011 ended 31.03.2010
(I) INCOME
Income from operations 7 533,206,569.54 420,341,255.04
Other Income 8 11,316,533.45 15,345,991.71
544,523,102.99 435,687,246.75
(II) EXPENDITURE
Employee Cost 9 21,283,730.00 11,267,871.21
Operating, Administration and
Other Expenses 10 204,506,693.60 145,028,979.98
Revenue sharing (Refer Note.11 ) 71,997,820.00 62,563,908.00
Depreciation 35,654,901.82 25,202,652.23
333,443,145.42 244,063,411.42
Profit before Prior Period Adjustments 211,079,957.57 191,623,835.33
(Less) : Prior Period Adjustments – –
Profit before Tax 211,079,957.57 191,623,835.33
Less : Provision for Tax
- Current 72,000,000.00 60,900,000.00
- Deferred Tax Expense (2,844,210.00) (638,778.00)
- Short Provision of Tax 256,307.00 930,037.00
Profit after Tax 141,667,860.57 130,432,576.33
Excess Corporate Dividend Tax for last year transferred back 69,520.00 -
Profit Available for appropriations 164,245,118.76 148,566,838.19
Appropriations :
- General Reserve 120,000,000.00 105,000,000.00
- Proposed Dividend 18,000,000.00 18,000,000.00
- Corporate Dividend Tax 2,920,050.00 3,059,100.00
- Balance Carried to Balance Sheet 23,325,068.76 22,507,738.19
164,245,118.76 148,566,838.19
Basic Earning per share (Rs) (Refer Note no.8 ) 11.81 10.87
Chairman Director
RAGHUVIR M. AIYAR J.RAVICHANDRAN SURESH NARAYAN

Partner Director Director–in–charge
Membership No : 38128

11
As At 31.03.11 As At 31.03.10
Authorised
1,30,00,000 (Prev. year 1,30,00,000) 130,000,000.00 130,000,000.00
Equity shares of Rs 10 each
Issued, Subscribed and Paid up

1,20,00,000 (Prev. year 1,20,00,000) 120,000,000.00 120,000,000.00
Equity shares of Rs 10 each
(all the above shares are held by the
holding company,
NATIONAL STOCK EXCHANGE OF
INDIA LIMITED and its nominees)
TOTAL 120,000,000.00 120,000,000.00

General Reserve
Add : Transfer from Profit & Loss account. 120,000,000.00 325,000,000.00 105,000,000.00 205,000,000.00
Profit & Loss Account 23,325,068.76 22,507,738.19
TOTAL 348,325,068.76 227,507,738.19
12
SCHEDULE 3 : FIXED ASSETS (Note No. 1(D))
Description Gross Block Depreciation Net Block
As on Additions Deduction As on As on For the Deletion Total upto As on As on
01/04/2010 during the during the 31/03/2011 01/04/2010 year 31/03/2011 31/03/2011 31/03/2010
Year Year
Computer Hardware 5,423,244.07 – 1,382,535.00 4,040,709.07 4,591,560.86 240,406.39 1,382,535.00 3,449,432.25 591,276.82 831,683.21
Computer Software 8,574,312.00 253,155.00 – 8,827,467.00 8,574,312.00 55,658.33 – 8,629,970.33 197,496.67 –
Computer Sys-Others 49,754,749.71 10,503,769.26 – 60,258,518.97 14,075,270.75 13,428,618.70 – 27,503,889.45 32,754,629.52 35,679,478.96
DotEx International Limited
Office Equipments 194,198.00 25,515.00 – 219,713.00 116,791.08 20,495.50 – 137,286.58 82,426.42 77,406.92
Telecom Installations 86,466,568.78 7,571,489.96 542,922.87 93,495,135.87 25,163,160.15 21,909,722.90 542,922.87 46,529,960.18 46,965,175.69 61,303,408.63
Total 150,413,072.56 18,353,929.22 1,925,457.87 166,841,543.91 52,521,094.84 35,654,901.82 1,925,457.87 86,250,538.79 80,591,005.12 97,891,977.72
Previous Year 88,182,732.57 62,797,738.95 567,398.96 150,413,072.56 27,878,622.44 25,202,652.23 560,179.83 52,521,094.84 97,891,977.72 60,304,110.13

SCHEDULE 4 : INVESTMENTS : (Note No. 1(E))
Maturity Date Number of Units Face Value Face value As at 31.3.2011 As at 31.3.2010
per Unit (Rs.) (Rs.) (Rs.) (Rs.)
UNQUOTED –
BONDS
TAXABLE
5.5% Rural Electrification Corporation Limited. 31/Mar/11 29.00 10,000.00 290,000.00 – 290,000.00
6.25% Rural Electrification Corporation Limited. 31/Mar/12 193.00 10,000.00 1,930,000.00 1,930,000.00 1,930,000.00
QUOTED
BONDS
Taxfree
6.85% India Infrastructure Finance Company Limited - 2014 22/Jan/14 100.00 100,000.00 10,000,000.00 10,174,437.00 10,236,433.00
MUTUAL FUNDS –
Sundaram Fixed Term Plan AP-367 Days Growth 4/Nov/11 1,000,000.00 10.00 10,000,000.00 10,000,000.00 –
EQUITY SHARES –
Omnesys Technologies Pvt. Ltd. 833,990.00 10.00 8,339,900.00 46,800,000.00 46,800,000.00
INXS Technologies Limited 2,160,920.00 10.00 21,609,200.00 47,000,000.00 –
TOTAL 3,995,232.00 52,169,100.00 115,904,437.00 59,256,433.00
Note : Aggregate Market Value of the quoted investments is Rs.1,00,00,000.00 (Previous Year :1,01,78,000.00)
13
Eleventh Annual Report
As At 31.03.11 As At 31.03.10
SCHEDULE 5 : CURRENT ASSETS,

LOANS & ADVANCES
A: CURRENT ASSETS
Interest Accrued
On Investments 218,498.29 230,515.41
On Bank Deposits 5,850,056.10 327,542.00
On Inter-corporate Deposits – 6,068,554.39 264,079.66 822,137.07
Sundry Debtors
Outstanding for a period of
more than six months
Considered good 594,057.00 6,529,904.26
Considered doubtful 2,033,766.00 1,370,792.00
2,627,823.00 7,900,696.26
Less: Provision for Doubtful Debts. 2,033,766.00 1,370,792.00
594,057.00 6,529,904.26
Other debts
Considered good (Unsecured) 173,728,578.85 174,322,635.85 81,677,296.56 88,207,200.82
(includes dues from Holding Company
Rs.15,99,92,091.85 (net)
Previous Year : Rs. 8,03,91,603.56 (net) )
Cash & Bank Balances
Cash in Hand 4,826.00 1,883.00
In Current accounts (with Auto
Fixed Deposit facility) 4,946,908.16 1,925,591.67
In Deposit accounts- Fixed Deposits 110,500,000.00 115,451,734.16 – 1,927,474.67
Short Term Investments – 103,205,656.93

(Refer Note no.1 E.(ii) & 5 )
TOTAL 295,842,924.40 194,162,469.49
B: Loans and Advances (Unsecured, Considered good)

Advance Recoverable in Cash or Kind 37,081,666.50 64,982,875.30
Inter Corporate Deposit – 10,000,000.00
Sundry Deposits 93,833.00 98,833.00
TOTAL 37,175,499.50 75,081,708.30
14
As At 31.03.11 As At 31.03.10
SCHEDULE 6 : CURRENT LIABILITIES AND PROVISIONS

A : Current Liabilities
Sundry Creditors 14,407,967.58 23,372,962.55
Tax Deducted at Source 7,749,330.00 4,967,390.00
Other Current Liabilities 15,406,548.57 22,806,749.00
TOTAL 38,813,846.15 56,237,146.55

B : Provisions
Provisions for Tax (Net of Advance
Taxes Paid Including 2,930,451.11 966,497.77
TDS Rs. 20,24,57,842.89,
Previous year Rs.13,24,26,819.23)
Corporate Dividend Tax 2,920,050.00 3,059,100.00
23,850,501.11 22,025,597.77
62,664,347.26 78,262,744.32
SCHEDULE 7 : INCOME FROM OPERATIONS

Income - Online Datafeed Service Fees 286,336,779.00 247,640,131.00
Income - Sale of Data 1,654,500.00 2,615,500.00
Income - Recovery of expenses from NSEIL 244,991,990.54 169,427,024.04
Income - Dealer Charges from NCDEX 223,300.00 658,600.00
TOTAL 533,206,569.54 420,341,255.04

Interest on Investments
(Including Taxfree Income Rs 6,85,000/-,
Previous Year Rs 35,657.54) 821,530.88 171,902.51
Interest on Fixed Deposit (Gross) 6,484,932.87 481,378.00
[TDS Rs.7,47,635.77 (Prev. year : Rs.48,800/-)]
Interest on Intercorporate Deposit 404,658.34 1,101,050.66
[TDS Rs.40,466/- (Prev. year : Rs.1,10,108/-)]
Dividend on Investment 3,476,344.73 3,910,312.66
Profit/(Loss) on sale of redemption of Investments 115,245.69 9,664,288.05
Profit on Sale of Fixed Assets 4,000.00 5,059.83
Miscellaneous Income 9,820.94 12,000.00
TOTAL 11,316,533.45 15,345,991.71
15
As At 31.03.11 As At 31.03.10
SCHEDULE 9 : EMPLOYEES COST

Manpower Deputation Expenses 21,283,730.00 11,267,871.21
TOTAL 21,283,730.00 11,267,871.21
SCHEDULE 10 : OPERATING, ADMINISTRATION

AND OTHER EXPENSES
Licence Fees 82,050,000.00 41,599,998.00
Repairs & Maintanence - Computers 17,397,857.64 12,853,166.55
Repairs & Maintenance - Others 44,119,130.00 45,670,003.00
Internet Charges 34,490,690.57 28,485,199.00
Legal & Professional Charges 7,828,377.00 4,427,941.67
Empanellement Charges 250,000.00 1,500,000.00
Software Expenses 147,472.00 1,911,546.26
Travelling Expenses 467,651.00 834,514.83
Data Subscription Fees 1,600,000.00 –
Telecom - Co-location charges 2,633,086.50 3,230,661.50
Telephone Expenses 589,706.01 1,027,810.16
Electricity Charges 805,975.10 11,325.86
Insurance 448,065.00 264,778.00
Space and Infrastructure usage charges 9,129,600.01 59,880.00
Profit/Loss on Exchange fluctuation (Net) – 175,091.00
Payment to Auditors
Audit Fees 75,000.00 75,000.00
Out of Pocket Expense 729.00 –
Bad debts / Sundry balance written off 168,709.00 –
Amortisation of Premium on Govt/Debt Sec. (Refer Note No.1E) 61,996.00 3,567.00
Other Expenses 2,242,648.77 2,898,497.15
TOTAL 204,506,693.60 145,028,979.98
16
Schedules forming part of the accounts

1. Significant Accounting policies
A. Basis of Accounting
The financial statements are prepared on the basis of historical cost convention and the mercantile
system of accounting in accordance with the generally accepted accounting principles.
B. Revenue recognition
Revenue from subscription received for dissemination of data (data feed) is recognised on time proportion
method.
C. Expenditure
D. Fixed Assets
Fixed Assets are stated at cost of acquisition / development less accumulated depreciation. Cost of
acquisition is inclusive of freight, duties, taxes and other incidental expenses.
Depreciation is provided on prorata basis for the period of use.
Depreciation on Office Equipment is provided using Straight Line Method at the rates specified in
Schedule XIV of the Companies Act, 1956,
Depreciation on Computer Software is provided at the rate of 33 1/3 % on Straight Line Method, which
is higher than the rate prescribed in the aforesaid schedule
Depreciation on Computer Hardware and Servers is provided at the rate of 25% on Straight Line
Method, which is higher than the rate prescribed in the aforesaid schedule.
Depreciation on Telecom Installations is provided at the rate of 25% on Straight Line Method, which is
higher than the rate prescribed in the aforesaid schedule.
E. Investments
(i) Long Term Investments are considered as held till maturity and are valued at cost.
(iii) Premium paid/discount received at the time of acquisition of Government / Debt Securities is
amortised over the residual period of its maturity.
F. Taxation
Tax expense for the year, comprising of current tax and deferred tax is included in determining the net
profit / (loss) for the year.
A provision is made for the current tax based on tax liability computed in accordance with prevailing
tax rates and tax laws. A provision / accrual is made for deferred tax for all timing differences arising
between taxable income and accounting income at the Balance Sheet Date based on prevailing enacted
or substantively enacted tax rates.
17
Deferred tax assets are recognized only if there is a reasonable certainty that they will be realized and
are reviewed for the appropriateness of their respective carrying values at each balance sheet date.
2. Contingent Liabilities:
A. Estimated amount of contracts remaining to be executed on capital account (net of advances) and not
provided for Rs.55,15,975/- (Previous Year: Rs. 48,87,846/-)
B. Capital commitment towards investment Rs. 5,09,87,556.25 (Previous Year: Rs. Nil/-)
C. On account of disputed matters of Income Tax Rs.33,83,206/- (Previous Year: Rs. 11,03,323/-)
3. Managerial Remuneration :
Particulars Current Year Previous Year

( Rs.) (Rs.)
Salary and Allowances 18,84,756.00 12,95,954.00
Contribution to Provident Fund and other Funds 1,13,249.00 64,784.00
Perquisites in Cash or in kind 1,10,285.00 29,082.00
4. The Company is primarily engaged in the business of dissemination of data. Additionally it provides a
facility to NSEIL/NCDEX members to access respective markets. Segmental information on the basis
of above mentioned operations as per Accounting Standard 17 ‘Segment Reporting’ is as below :
Particulars DataFeed Others Unallocated Total
(Rs.) (Rs.) (Rs.) (Rs.)
Segment Revenue. 287,991,279.00 245,215,290.54 11,316,533.45 544,523,102.99
(250,255,631.00) (170,085,624.04 ) ( 15,345,991.71 ) (435,687,246.75 )
Segment Result. 199,763,424.12 – 11,316,533.45 211,079,957.57
(176,277,843.62 ) – ( 15,345,991.71 ) (191,623,835.33 )
Taxes – – – 69,412,097.00
– – – ( 61,191,259.00)
Net Profit After Taxes – – – 141,667,860.57
– – – (130,432,576.33 )
Segment assets. 18,549,648.55 330,163,992.42 182,275,775.05 530,989,416.02
(69,492,541.94) (251,951,794.08) (193,493,409.97) (514,937,745.99)
Segment liabilities. 4,786,463.00 26,226,240.15 31,651,644.11 62,664,347.26
– (17,450,983.00) (149,979,024.80) (167,430,007.80)
Capital Expenditure 965,515.00 17,388,414.22 – 18,353,929.22
(5,469,542.00) (57,328,196.95) – (62,797,738.95)
Depreciation 3,230,828.27 32,424,073.55 – 35,654,901.82
(3,375,455.32) (21,827,196.91) – (25,202,652.23)
Note: Previous year figures are given in bracket.
18
5. The statement of Short Term Investments at the end of year is given below :
Sr. Particulars Number of As at Number of As at

No. Units 31.3.2011 Units 31.3.2010
Unquoted
Mutual Funds
Treasury Advantage Plan -
Wholesale - Dly Div – – 599,464.72 6,013,530.33
2 JM Money Manager Fund Super
Plus Plan - Daily Dividend – – 248,173.76 2,483,052.90
3 ICICI Prudential Flexible Income
Plan Premium - Daily Dividend – – 244,936.31 25,904,544.25
4 ICICI Prudential Ultra Short Term
Plan Super Premium
Weekly Dividend – – 2,402,796.13 24,104,289.04
5 Templeton India Ultra Short Bond
Fund - Retail Plan - Weekly Div
Reinvestment – – 655,031.45 6,557,541.95
Fund Retail Plan - Daily Dividend
Reinvest – – 608,504.52 6,091,495.38
7 UTI Treasury Advantage Fund -
Weekly Dividend Plan -
Re-Investment – – 6,344.00 6,540,710.45
8 Reliance Medium Term Fund-Daily
Dividend Plan – – 443,310.10 7,578,607.81
9 JP Morgan India Treasury Fund -
Super Inst. Daily Div Plan -
Reinvest – – 25,319.11 253,416.48
10 Baroda Pioneer Treasury Advantage
Fund - Regular Daily Dividend Plan – – 1,766,169.58 17,678,468.34
TOTAL – – 7,000,049.68 103,205,656.93
19
6. Statement of investments purchased and sold/redeemed during the year at cost is given below :
Sr. SCRIP NAME Units Sold Face Value Investment

No. Cost Sold
1 Baroda Pioneer Liquid Fund -
Institutional Daily Dividend Plan 1,599,184.91 16,001,923.99 16,001,923.99
2 Baroda Pioneer Treasury Advantage Fund -
Institutional Daily Dividend Plan 1,634,462.48 16,359,498.39 16,359,498.39
3 Baroda Pioneer Treasury Advantage Fund -
Regular Daily Dividend Plan 4,301.30 43,053.84 43,053.84
4 Birla Sun Life Cash Plus - Instl. Prem
Plan - Daily Dividend - Reinvestment 998,167.65 10,001,140.78 10,001,140.78
5 Birla Sun Life Savings Fund - Instl. -
Daily Dividend - Reinvestment 1,019,246.47 10,199,395.53 10,199,395.53
6 Canara Robeco Liquid Fund -
Dividend Reinvestment 427,057.42 4,300,468.21 4,300,468.21
7 Canara Robeco Treasury Advantage
Retail Daily Dividend Fund 349,260.38 4,333,308.47 4,333,308.47
8 DWS Cash Opportunities Fund -
Institutional Plan Weekly Dividend 1,273,149.79 12,834,273.85 12,834,273.85
9 DWS Insta Cash Plus Fund - Institutional
Plan - Daily Dividend-Reinvest 1,263,636.45 12,701,568.16 12,701,568.16
10 DWS Insta Cash Plus Fund - Regular
Plan Daily Dividend 145,632.53 1,500,160.69 1,500,160.69
11 DWS Ultra Short Term Fund -
Regular Daily Dividend Plan 150,972.94 1,512,975.27 1,512,975.27
Treasury Advantage Plan -
Wholesale - Dly Div 2,026.03 20,324.16 20,324.16
13 HSBC Cash Fund - Institutional -
Daily Dividend 957,926.73 10,000,850.90 10,000,850.90
14 HSBC Floating Rate - Long Term Plan -
Institutional Option - Weekly Dividend 894,093.38 10,047,074.11 10,047,074.11
15 ICICI Prudential Flexible Income Plan
Premium - Daily Dividend 5,124.63 541,853.26 541,853.26
16 ICICI Prudential Institutional Liquid Plan-
Super Institutional Daily Div 89,996.19 9,001,637.05 9,001,637.05
17 ICICI Prudential Ultra Short Term Plan
Super Premium Weekly Dividend 251,472.75 2,526,505.21 2,526,505.21
18 JM Money Manager Fund Super Plus
Plan - Daily Dividend 172.26 1,723.53 1,723.53
20
Sr. SCRIP NAME Units Sold Face Value Investment

No. Cost Sold
19 JPMorganIndia Liquid Fund -
Super Inst.Daily Dividend Plan - Reinvest 2,210,618.20 22,123,645.90 22,123,645.90
20 JPMorganIndia Treasury Fund - Super
Inst. Daily Div Plan - Reinvest 73.43 734.99 734.99
21 Reliance Liquid Fund-Treasury Plan-
Institutional Option-Daily Dividend 654,197.14 10,000,973.40 10,000,973.40
22 Reliance Medium Term Fund-Daily
Dividend Plan 593,743.02 10,150,571.29 10,150,571.29
23 SBI Debt Fund Series - 90 Days - 35 -
Dividend 507,775.06 5,077,750.63 5,077,750.63
24 SBI Magnum Insta Cash Fund - Daily
Dividend Option 1,260,429.68 21,112,575.25 21,112,575.25
25 SBI Premier Liquid Fund - Institutional -
Daily Dividend 498,449.31 5,000,692.75 5,000,692.75
26 SBI - SHF- Ultra Short Term Fund -
Institutional Plan - Daily Dividend 1,626,321.91 16,272,977.00 16,272,977.00
27 Sundaram Money Fund - Inst. -
Daily Div - Reinvestment 991,039.08 10,004,836.83 10,004,836.83
28 Tata Floater Fund - Daily Dividend 1,307,637.00 13,122,921.90 13,122,921.90
29 Tata Liquid Fund - Ship - Dividend - Daily 11,665.86 13,001,832.44 13,001,832.44
30 Taurus Liquid Fund - IP -
Daily Dividend - Reinvestment 10,000.70 10,001,101.23 10,001,101.23
31 Taurus Ultra Short Term Bond Fund -
Institutional Daily Dividend Plan 10,072.15 10,087,633.32 10,087,633.32
32 Templeton India Ultra Short Bond Fund -
Retail Plan - Weekly Div Reinvestment 10,972.26 109,865.20 109,865.20
33 Templeton India Ultra Short Bond Fund
Retail Plan - Daily Dividend Reinvest 6,688.54 66,956.26 66,956.26
34 UTI Treasury Advantage Fund -
Weekly Dividend Plan - Re-Investment 3.30 3,413.62 3,413.62
Grand Total 20,765,570.95 268,066,217.41 268,066,217.41
21
7. In compliance with Accounting Standard - 18 "Related Party Disclosures" issued by the Institute of Chartered

No.
4 NSE.IT (UK) Limited Fellow Subsidiary
5 NSE.IT (US) Limited Fellow Subsidiary
6 India Index Services & Products Limited Fellow Subsidiary
7 NSE InfoTech Services Limited Fellow Subsidiary
9 Power Exchange India Limited Joint Venture with Holding Co
10 Mr. Suresh Narayan - Director in Charge Key Management Personnel
B) Details of transactions with related parties are as follows
Name of Related Nature of Transactions Year ended Year ended

Party 31/03/2011 31/03/2010
National Stock Reimbursement paid for 2,34,75,905.00 1,24,27,281.21
Exchange of expenses on staff on
India Limited. deputation
Space and Infrastructure usage 1,00,69,952.00 66,048.00
charges paid
Capital Items Purchased 53,96,472.00 Nil
Amount paid towards revenue 7,94,13,598.00 6,90,07,991.00
sharing (refer note no.11)
Reimbursement paid for other 10,89,69,548.55 7,20,67,745.04
expenses incurred
Dividend Paid 1,80,00,000.00 1,20,00,000.00
Recovery of expenses 27,02,26,165.54 18,68,78,007.04
Outstanding balance included in 15,99,92,091.85 8,03,91,603.56
Current Assets. (Net)
22
Name of Related Nature of Transactions Year ended Year ended

Party 31/03/2011 31/03/2010
NSE.IT Limited. Amount payable towards Technical 4,88,74,598.00 5,26,03,508.00
Support charges, Professional Fees for
NOW testing automation products and
reimbursement of expenses.
Outstanding balance included in 55,77,575.00 1,45,27,258.00
Current Liabilities.
India Index Fees for right to create indices. 24,99,950.00 Nil
Services &
Products Limited.
Data Subscription Fees (Expenses) 16,00,000.00 Nil
Key Management Gross Remuneration including 21,08,290.00 13,89,820.00
Personnel allowances, non-cash perquisites
and contribution to Provident Fund
and Superannuation Fund etc.
8. Accordance with Accounting Standard - 20 "Earning per Share "issued by the Institute of Chartered
Year ended 31/03/2011 Year ended 31/03/2010
Net Profit attributable to Share holders 14,16,67,860.57 13,04,32,576.33
Weighted Average number of equity shares issued 1,20,00,000 1,20,00,000
Basic Earning per share of Rs. 10/- each (in Rs) 11.81 10.87
The company does not have any outstanding dilutive potential equity shares. Consequently the basic and
9. In accordance with Accounting Standard - 22 "Accounting for Taxes on Income" issued by the Institute of
Chartered Accountants of India, the breakup of Deferred Tax Asset/Liabilities is as follows.
As at 31st March As at 31st March
2011 2010
Related to depreciation and other capital Expenditure Nil 20,19,097.00
Total (A) Nil 20,19,097.00
Less : Deferred Tax Assets
Related to depreciation and other capital Expenditure 5,43,529.41 Nil
Related to disallowance u/s 43B 2,72,165.21 1,84,504.00
Others (Provision for Doubtful Debts) 6,59,855.38 4,65,933.00
Total (B) 14,75,550.00 6,50,437.00
Net Deferred Tax Liability / (Asset) (A-B) (14,75,550.00) 13,68,660.00
Previous Years figures are reworked based on the filing of return of income for A.Y.2010-11.
23
10 There are no Micro, Small and Medium Enterprises, as defined in the Micro, Small, and Medium Enterprises
Development Act, 2006 to whom the company owes dues on account of principal amount together with
interest and accordingly no additional disclosures have been made.
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.
11 The Company is in the business of dissemination of data and has a Revenue sharing agreement with National
Stock Exchange of India Limited (NSEIL).
12 a) Expenditure in Foreign Currency: Rs.4,90,156.00 (Previous year : Rs. 5,87,320.00)
b) Earnings in Foreign Currency: Rs.12,95,85,053.00 (Previous year : Rs. 16,08,97,550.00 )

13. C.I.F. value of imports in respect of Capital goods : Rs. 4,36,944.00 (Previous Year : Rs 40,59,013.00)
14 Information with regard to other matters specified in Clause 3, 4C and 4D of the part II of Schedule VI to
Companies Act, 1956 are either Nil or not applicable to the Company.
15 Figures for the previous accounting year have been re-grouped, rearranged and reclassified wherever necessary.
For K. S. Aiyar & Co.

Chartered Accoutants
Raghuvir M. Aiyar RAVI NARAIN CHITRA RAMKRISHNA

Partner Chariman Director
Membership No: 38128
J. RAVICHANDRAN SURESH NARAYAN
Director Director-in-charge

24
2010-2011 2009-2010
(Rs.) (Rs.)

Net Profit Before Tax 211,079,957.57 191,623,835.33
- Depreciation 35,654,901.82 25,202,652.23
- Bad debts / Sundry Balances Written Off 168,711.30 –
- Provision for Doubtful Debts 662,974.00 –
- Amortisation of premium on Govt/debt Securities 61,996.00 3,567.00
Less : Adjustments for :
- Interest on Investments (821,530.88) (171,902.51)
- Interest income on Bank & Inter-corporate deposits (6,889,591.21) (1,582,428.66)
- Dividend on Investment (3,476,344.73) (3,910,312.66)
- Profit on sale of redemption of Investments (115,245.69) (9,664,288.05)
- Profit on sale of assets (4,000.00) (5,059.83)
- Sundry Balances Written Back (4,773.94) –
Oprating Profit Before Working Capital Changes 236,317,054.24 201,496,062.85
Adjustments for :
Sundry Debtors (86,942,346.39) (59,862,180.34)
Loans & Advances 37,906,208.80 (29,917,270.00)
Current Liabilities & Provisions (17,423,300.40) 28,384,322.60
(Cash Genrated From Operations) 169,857,616.25 140,100,935.11
Direct Taxes paid (Net of Refunds) (70,292,353.66) (61,648,599.10)
NET CASH FROM OPERATING ACTIVITIES - Total (A) 99,565,262.59 78,452,336.01

Purchase of Fixed Assets (17,607,375.22) (63,505,292.95)
Sale of Fixed Assets 4,000.00 12,278.96
(Increase)/Decrease in Investment 46,610,902.62 (10,238,008.50)
Interest received on deposits 1,631,156.77 1,528,112.00
Interest on Investments 833,548.00 48,007.00
NET CASH FROM INVESTING ACTIVITIES - Total (B) 34,948,576.90 (68,244,590.83)
25
2010-2011 2009-2010
(Rs.) (Rs.)
Dividend Paid (18,000,000.00) (12,000,000.00)
Dividend Distribution Tax (2,989,580.00) (2,039,400.00)
NET CASH FROM (USED IN) FINANCING (20,989,580.00) (14,039,400.00)
ACTIVITIES - Total (C)
NET INCREASE/(DECREASE) IN CASH AND 113,524,259.49 (3,831,654.82)
CASH EQUIVALENTS (A+B+C)
CASH AND CASH EQUIVALENTS : OPENING BALANCE 1,927,474.67 5,759,129.49

[ (includes fixed deposit with banks of Rs.Nil
(Previous Year Rs.Nil ) ]
CLOSING CASH AND CASH EQUIVALENTS : 115,451,734.16 1,927,474.67
CLOSING BALANCE
[ (includes fixed deposit with banks of Rs.11,05,00,000.00
(Previous Year Rs.Nil ) ]
NET INCREASE/(DECREASE) IN CASH AND 113,524,259.49 (3,831,654.82)
CASH EQUIVALENTS

1 Cash and cash equivalent represent cash, bank balances and balance in fixed deposit account as per balance sheet
Standard-3 on Cash Flow Statements issued by the Institute of Chartered Accountants of india
3 All figures in brackets are outflows
4 Previous Years figures have been regrouped/restated wherever necessary
5 Direct taxes Paid/ Refunded are treated as arising from operating Activities and not bifurcated between investing
andfinancing activities.
For K. S. Aiyar & Co.

Chartered Accoutants
Raghuvir M. Aiyar RAVI NARAIN CHITRA RAMKRISHNA

Partner Chariman Director
Membership No: 38128
J. RAVICHANDRAN SURESH NARAYAN

26
Balance Sheet Abstract and Company's General Business Profile
Registration No. 1 2 6 9 5 2 State Code 1 1

Date Month Year

* * * N I L * * * * * * N I L * * *

* * * N I L * * * * * * N I L * * *

* * * 5 3 0 9 8 9 * * * 5 3 0 9 8 9
Sources of Funds
* * * 1 2 0 0 0 0 * * * 3 4 8 3 2 5

* * * N I L * * * * * * N I L * * *

* * * N I L * * *
* * * * 8 0 5 9 1 * * * 1 1 5 9 0 4

* * * 2 7 0 3 5 4 * * * N I L * * *
Accumulated Losses Deferred Tax Asset.

* * * N I L * * * * * * * * 1 4 7 6
27

* * * 5 4 4 5 2 3 * * * 3 3 3 4 4 3
+ – Profit / Loss before tax + – Profit / Loss after tax

* * * 2 1 1 0 8 0 * * * 1 4 1 6 6 8

* * 1 1 . 8 1 1 5
Item Code No. N A

(ITC Code)
Product D I S S E M I N A T I O N O F
Description D A T A ( D A T A F E E D )

Chairman Director
J.RAVICHANDRAN SURESH NARAYAN

VED MALLA
Asst. Company Secretary
Place : Mumbai
28
E E
India Index Services & Products Limited
(Subsidiary of National Stock Exchange of India Limited)
IISL
THIRTEENTH ANNUAL REPORT

2010-11
E E
INDIA INDEX SERVICES & PRODUCTS LIMITED
Thirteenth Annual Report
BOARD OF DIRECTORS*

Ms. Roopa Kudva
Mr. J. Ravichandran
Mr. Arun Panicker
Mr. Mukesh Agarwal
Mr. Suresh Narayan : Director & CEO
AUDITORS : M/s. K. S. Aiyar & Co.

F-7, Laxmi Mills
Shakti Mills Lane
(Off. Dr. E. Moses Road.)
Mahalaxmi
Mumbai 400 011
REGISTERED OFFICE : "Exchange Plaza"

Plot C-1, Block ‘G’
Bandra-Kurla Complex, Bandra (East)
Mumbai - 400 051
*As on April 25, 2011

DIRECTORS’ REPORT
To,
The Members,
Your Directors have pleasure in presenting the Thirteenth Annual Report and the Audited Accounts of
India Index Services & Products Limited (IISL) for the year ended March 31, 2011.
I. OPERATIONS AND EVENTS DURING THE YEAR

Developments
Your Company continued to be the primary provider of indices and related products and services to
various participants in the capital market in India in the thirteenth year of its operation.
The benchmark index i.e. S&P CNX Nifty reached an all-time high of 6,312.45 on November 11, 2010
during the financial year. The turnover of S&P CNX Nifty Futures traded on National Stock Exchange
(NSE) increased from Rs. 34,71,988 Crores in the financial year 2009-10 to Rs. 37,18, 462 Crores in the
financial year 2010-11, registering an increase of 7.09 %. Turnover of S&P CNX Nifty Options traded on
NSE increased from Rs. 80,19,405 Crores in the financial year 2009-10 to Rs. 1,83,31,379 Crores in the
financial year 2010-11, registering an increase of 128.58%.
During the financial year 2010-11, your Company granted licenses to two additional Asset Management
Companies for launching Exchange traded funds, to four additional Asset Management Companies for
launching Index Funds and to two Insurance companies for launching Insurance funds.
The total number of index-linked funds linked to your Company's indices are as follows:
1. Nineteen funds and four ETFs on S&P CNX Nifty Index available in India.
2. Five ETFs on S&P CNX Nifty Index listed outside India.
3. One ETF on CNX Nifty Junior Index listed in India.
4. Two ETFs on CNX Bank Index listed in India.
5. One ETF on CNX Midcap Index listed in India.
6. One ETF on CNX Infrastructure Index listed in India.
7. Two ETFs on CNX PSU Bank Index listed in India.
8. One ETF on S&P CNX Shariah Nifty listed in India.
9. One Index fund on S&P CNX Shariah 500 available in India.
10. One Index fund on S&P CNX 500 Index available in India.
The corpus of index linked funds in India based on S&P CNX Nifty Index, CNX Nifty Junior Index,
CNX Bank Index, CNX PSU Bank Index and S&P CNX 500 Index stood at Rs. 2,648.45 Crores,
Rs. 170.53 Crores, Rs.284.16 Crores, Rs. 75.20 Crores and Rs. 90.40 Crores respectively as on
March 31, 2011.
Your Company provides index and index related services to various stock exchanges, asset management
companies, investment banks and other organisations across the globe for business purposes. Apart from
the indices being used for Index Funds and trading of index based derivative contracts, the indices of your
1
Company are being used by the mutual funds for benchmarking the performance of their funds. The
demand for index related data has increased in past year in line with the improved condition of the equity
market. During the year, your Company provided licenses to various Clients for using your Company's
indices as underlyings for their products. These clients issue products such as index linked notes /
certificates, index linked bonds, index linked certificates of deposit, Exchange Traded Funds (ETFs),
etc., using IISL Indices as the underlying for their products. Your Company also provides annual licenses
to its clients who issue many structured products with IISL indices as underlying for such products.
In continuation of its efforts to develop indices that meet the requirements of market participants, your
Company launched two new indices during the year viz. CNX Dividend Opportunities Index and CNX
Smallcap Index.
Products:
The financial products based on IISL indices currently available are:
(I) Derivative Contracts:

1. Futures and Options on S&P CNX Nifty index traded on the NSE.
2. Futures and Options on CNX IT Index traded on the NSE.
3. Futures and Options on CNX Bank Index traded on the NSE.
4. Futures on S&P CNX Nifty Index traded on the SGX and CME.
(II) Mutual Fund Products:

1. Index Funds based on:
• S&P CNX Nifty
• S&P CNX 500 Index
• S&P CNX 500 Shariah Index
• CNX Nifty Junior Index
2. Exchange Traded Funds (ETFs) based on:
• S&P CNX Nifty Index
• CNX Nifty Junior Index
• CNX Bank Index
• CNX Midcap Index
• CNX PSU Bank Index.
• CNX Infrastructure Index
• S&P CNX Nifty Shariah Index.
3. Active funds using IISL indices as benchmarks.
4. Exchange Traded Notes (ETNs) based on S&P CNX Nifty.
(III) Debentures and insurance products based on S&P CNX Nifty Index and CNX Bank Index.
(IV) Other OTC / Structured Products

1. Index Linked Notes / Bonds
2. Index-linked Certificates of Deposit
2
Operations
During the year under review, the Company has widened the client base that uses IISL Indices and index
data. Your Company has the following major sources of income viz. income from licensing indices to
stock exchanges for trading in derivative contracts linked to such indices, income from licensing indices
to Index Funds/Exchange Traded Funds, income from licensing indices to finance and insurance companies
for debentures/ insurance products, income from licensing indices to investment banks for structured
products and income from data subscription. The income received from these for the year 2010-11 was
Rs. 1,925.93 lakhs. The revenues of your Company have increased from Rs. 1,516.89 lakhs in 2009-10 to
Rs.2,097.53 lakhs in 2010-11. The total outflow of the Company was Rs. 349.55 lakhs in 2010-11 as
compared to Rs. 189.36 lakhs in 2009-10.
Future Prospects
During the last financial year, your Company had received inquiries from Indian entities for developing
customised indices to suit the needs of these entities. Your Company is also receiving enquiries from
various insurance companies and pension fund managers for launching products based on the premier
index viz. S&P CNX Nifty Index.
Your Company has also been receiving enquiries for index related data from various domestic entities
viz., asset management companies, which are launching new funds and finance companies that are issuing
debentures based on various indices of the Company. Further, enquiries have also been received from
various fund houses based outside India for licensing the S&P CNX Nifty for index related data & issuance
of structured products that include Index-linked Certificates of Deposit, Index linked Notes, etc.
The Company has earned a net profit after tax of Rs. 1,183.74 lakhs as per particulars given below:-

(Rs. in lakhs) (Rs. in lakhs)
Income 2,097.53 1,516.89
Profit before depreciation and tax 1,747.98 1,327.53
Provision for tax 558.87 421.62
Net Profit after tax 1,183.74 893.39
Excess corporate dividend tax for last year transferred back 0.35 –
Amount available for appropriation 1,300.34 972.72
General Reserve 1,000.00 750.00
Balance carried forward to Balance Sheet 164.36 116.25
3
III. DIVIDEND
In view of the above results, your Directors recommend payment of dividend of Rs.9/- per share for the
year 2010-11 as against a dividend of Rs.7/- per share for the previous year.
In continuation of its pursuit to establish good corporate governance practice, your Company, while
already complying by and large with a major part of the Corporate Governance Voluntary Guidelines
2009 issued by the Ministry of Corporate Affairs, is in the process of complying with/ examining the
possibility of implementing, the remaining part of the said Guidelines.
V. DIRECTORS
Ms. Roopa Kudva and Ms. Chitra Ramkrishna retire by rotation at the ensuing Annual General Meeting
and are eligible for re-appointment.

i. in the preparation of the Annual Accounts, the applicable accounting standards had been followed
ii. the Directors had selected such accounting policies and applied them consistently and made judgments
of the Company at the end of the financial year i.e., 31st March, 2011 and of the profits of the
Company for that year;
iii. the Directors had taken proper and sufficient care for the maintenance of adequate accounting records
in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the
Company and for preventing and detecting fraud and other irregularities; and
Since the paid up capital of the Company is Rs. 1.30 crores only, it is not mandatory for the Company to
constitute an Audit Committee as per the provisions of Section 292A of the Companies Act, 1956.
VIII. AUDITORS
M/s. K.S.Aiyar & Co., Chartered Accountants, Mumbai, will retire at the conclusion of the forthcoming
Annual General Meeting and are eligible for re-appointment. The Company has received a certificate
under Section 224 (1B) of the Companies Act, 1956.
4

EARNINGS/OUTGO

Section 217(1)(e) of the Companies Act, 1956, read with the aforesaid Rules are not applicable to
the Company.

The foreign exchange earnings during the year were Rs. 858.24 lakhs. The foreign exchange outgo
during the year was Rs. 13.85 lakhs.
A statement prepared pursuant to requirements of Section 217 (2A) of the Companies Act, 1956 read
with the Companies (Particulars of Employees) Rules, 1975 is attached herewith.
XI. CERTIFICATE OF COMPLIANCE
A certificate of compliance for the financial year 2010-11, as required by the provisions of the Companies
Act, 1956, obtained from M/s. S.N. Ananthasubramanian & Co., Practicing Company Secretaries, is
attached herewith.
XII. APPRECIATION
The Board of Directors wishes to place on record their appreciation of the support and co-operation
received from NSEIL, CRISIL, Standard & Poor's, members of the Index Policy Committee and Index
Maintenance Sub-committee, Bankers of the Company, business associates and the valued clients and
looks forward to their continued support and co-operation. The Board of Directors also wishes to thank
the staff at all levels for their exemplary dedication, support and co-operation to the continued growth of
the Company.
Ravi Narain
Chairman
Place : Mumbai
5


No. Qualifications Years Nature of Received (Rs.) (No. of Commencement Employment
1 Mr. Suresh Narayan 41 Director & CEO 4919340 3392130 21 January 24, 2005 Manager,
B.Com, Grad. CWA National
Securities
Depository
Limited
Notes :
Superannuation Fund, taxable value of perquisites etc. Net remuneration represents gross remuneration
less company's contribution to provident and superannuation funds, taxable value of perquisites, profession
tax and income tax.
3 The above employee is on deputation basis from the Company's holding company i.e. National Stock
Exchange of India Limited (NSEIL) and the proportionate remuneration mentioned above in respect of
him has been reimbursed to NSEIL by the Company
4 None of the employees of the Company is holding equity shares in the company within the meaning of
sub-clause (iii) of clause (a) of sub-section (2A) of Section 217 of the Companies Act, 1956.
5 The Company has not offered any shares to any of its employees under any Stock Option Scheme.
6
COMPLIANCE CERTIFICATE
COMPLIANCE CERTIFICATE FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2011
To,
The Members,
INDIA INDEX SERVICES AND PRODUCTS LIMITED
Exchange Plaza, C-l, Block-G, Bandra Kurla Complex,
Bandra (East), Mumbai 400051
CIN: U73100MH1998PLC114976
Nominal Capital: Rs. 1,50,00,000
Paid-up Capital: Rs. 1,30,00,000
We have examined the registers, records, books and papers of INDIA INDEX SERVICES AND PRODUCTS
LIMITED (the Company) as required to be maintained under the Companies Act, 1956, (the Act) and the rules
made thereunder and also the provisions contained in the Memorandum and Articles of Association of the Company
for the financial year ended on 31st March 2011. In our opinion and to the best of our information and according
to the examinations, carried out by us and explanations furnished to us by the Company, its officers, we certify
that in respect of the aforesaid financial year:
1. The Company has kept and maintained all registers as stated in, Annexure ‘A' to this Certificate, as per
the provisions of the Act and the rules made thereunder and all entries therein have been duly recorded.
2. The Company has duly filed the forms and returns as stated in Annexure ‘B' to this Certificate, with the
Registrar of Companies, Regional Director, Central Government, Company Law Board or other authorities
within the time prescribed under the Act and the rules made thereunder.
3. The Company, being a public limited Company, following comments under this paragraph viz., the
Company has a minimum prescribed paid-up capital and its maximum number of members during the
said financial year were upto fifty and the Company during the year under review:
(i) has not invited public to subscribe for its shares or debentures; and
(ii) has not invited or accepted any deposits from persons other than its members, Directors or their
relatives.
(iii) is prohibited from making any invitation or acceptance of any deposits from persons other than its
members, Directors or their relatives"
are not required.
4. The Board of Directors of the Company duly met four times respectively on 27 thApril 2010,
11th August 2010, 29th November 2010 and 7th February 2011. In respect of these meetings, proper notices
were given and the proceedings were properly recorded and signed (including circular resolutions passed)
in the Minutes Book maintained for the purpose.
5. The Company has not closed its Register of Members as it was not required to close.
6. The Annual General Meeting for the financial year ended on 31 st March 2010 was held on
11th August 2010 after giving due notice to the members of the Company and the resolutions passed
thereat were duly recorded in the Minutes Book maintained for the purpose.
7
7. No Extraordinary General Meeting was held during the financial year under review.
8. The Company has not advanced any loans to its Directors or persons or firms or companies referred to
under Section 295 of the Act.
9. The Company has not entered into any contracts falling within the purview of Section 297 of the Act.
10. The Company has made necessary entries in the Register maintained under Section 301 of the Act.
11. As there were no instances falling within the purview of Section 314 of the Act, no approvals were
required, pursuant to said section, from the Board of Directors, Members or Central Government, as the
case may be.
12. The Company has not issued any duplicate share certificate(s) during the financial year.
13. The Company
(i) was not required to deliver any share certificates as there were no allotment / transfer / transmission
of securities or any other purpose during the financial year.
(ii) has deposited the amount of dividend declared at the Annual General Meeting in a separate bank
Account within five days from the date of declaration of dividend.
(iii) has paid dividend to all members within a period of 30 (thirty) days from the date of declaration
and that there was no unclaimed / unpaid dividend which was required to be transferred to unpaid
dividend account of the company during the year.
(iv) does not have amounts in the unpaid dividend account, application money due for refund, matured
deposits, matured debentures and the interest accrued thereon which have remained unclaimed or
unpaid for a period of seven years and hence transferring of the same to the Investor Protection
Fund does not arise.
(v) has duly complied with the requirements of Section 217 of the Act.
14. The Board of Directors of the Company is duly constituted and the appointment and re-appointment of
Directors, additional directors were duly made.
15. The appointment of Mr. Suresh Narayan as Whole-time Director of the Company on 27th April 2010 for
a period of five years from 27th April 2010 to 26th April 2015 has been made in compliance with the
provisions of Section 269 read with Schedule XIII of the Act.
16. The Company has not appointed any sole selling agents during the financial year.
17. The Company was not required to obtain any approvals of the Central Government, Company Law
Board, Regional Director, Registrar of Companies and / or such other authorities prescribed under the
various provisions of the Act during the financial year.
18. The Directors have disclosed their interest in other firms / companies to the Board of Directors and
complied with the provisions of the Act and the rules made thereunder.
19. The Company has not issued any shares, debentures or other securities during the financial year.
20. The Company has not bought back any shares during the financial year.
21. The Company has not issued any Preference Shares or Debentures and hence redemption, if any, of
Preference Shares or Debentures does not arise.
8
22. There were no transactions necessitating the Company to keep in abeyance the rights to dividend, rights
shares and bonus shares pending registration of transfer of shares in compliance with the provisions of
the Act.
23. The Company has not invited / accepted any deposits including any unsecured loans within the purview
of Section 58A during the financial year under review.
24. The Company has not made any borrowings during the financial year ended 31st March 2011 and therefore
provisions of Section 293(1)(d) of the Act are not applicable.
25. The Company has not made any loans or advances or given guarantees or provided securities to other
bodies corporate and consequently no entries were required to be made in the register kept for the purpose.
26. The Company has not altered the provisions of the Memorandum of Association of the Company with
respect to situation of the Company's registered office from one state to another during the year under
review.
respect to the objects of the Company during the financial year under review.
respect to name of the Company during the financial year under review.
respect to share capital during the financial year under review.
30. The Company has not altered the Articles of Association of the Company during the financial year under
review.
31. There was no prosecution initiated against or show cause notice received by the Company and no fines or
penalties or any other punishment was imposed on the Company during the financial year, for alleged
offences under the Act.
32. The Company has not received any money as security from its employees during the financial year under
review and thus the provisions of Section 417(1) of the Companies Act, 1956 are not applicable.
33. The Company is not required to comply with the provisions of Section 418 of the Act with regard to
employee's and employer's contribution to provident fund.
Place: Thane Sd./-

Date: 9th April, 2011 Name of Company Secretary: S.N. Ananthasubramanian
C.P. No : 1774
9
Annexure A
Registers as maintained by the Company
Sr. No. Registers Under Section
1. Register of Members and Index of Members 150 and 151
2. Register of Share Transfers –
3. Register of Directors, Managing Directors 303
4. Register of Director's Share and Debenture Holdings 307
5. Register of Charges 143
6. Register of Contracts 301
7. Register of Directors' Attendance –
8. Register of Shareholders' Attendance –
9. Register of Proxies –
10. Register of Documents Sealed –
11 Minutes Book 193
12. Books of Accounts 209
Annexure B
Forms and Returns as filed by the Company with Registrar of Companies / Regional Director /
Central Government or other authorities during the financial year ended on 31st March 2011.
Sr. Form No. Date of Filing For
1. Form 32 21st May 2010 Appointment of Mr. Suresh Narayan and Mr. Mukesh
Shambhu Agarwal as Additional Directors of the Company
w.e.f. 27th April 2010
2. Form 32 5th July 2010 Appointment of Mr. Suresh Narayan as Whole-time Director
w.e.f. 27th April 2010
3. Form 25 C 20th July 2010 Appointment of Mr. Suresh Narayan, Whole-time Director
& CEO for a period of five years commencing from 27th
April 2010 to 26th April 2015.
4. Form 23 AC 8th September 2010 Balance Sheet and Profit & Loss Account for the year ended
& ACA 31st March 2010 adopted in the Annual General Meeting
held on 11th August 2010.
5. Form 32 8th September 2010 Appointment of Mr. Arun Panicker, Mr. Mukesh Agarwal
and Mr Suresh Narayan at the Annual General Meeting held
on 11th August 2010.
6. Form 66 8th September 2010 Filing of Compliance Certificate for 31st March 2010.
7. Form 20B 30th September 2010 Annual Return made up to the date of the Annual General
Meeting held on 11th August 2010.
Sd./-
Place: Thane Name of Company Secretary: S.N. Ananthasubramanian
Date: 9th April, 2011 C.P. No : 1774
10
AUDITORS’ REPORT
To,
The Members,
1. We have audited the attached Balance Sheet of INDIA INDEX SERVICES & PRODUCTS LIMITED,
as at March 31, 2011, the Profit and Loss Account and Cash Flow for the year ended on that date
annexed thereto. These financial statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those
3. As required by the Companies (Auditor's Report)(Amendment) Order, 2004, issued by the Central
Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we
enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that:
as appears from our examination of those books
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report
are in agreement with the books of account
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with
by this report comply with the accounting standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956.
(v) On the basis of written representations received from the directors, as on March 31, 2011 and
taken on record by the Board of Directors, we report that none of the directors of the Company are
disqualified as on March 31, 2011 from being appointed as a director, in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
11
accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2011;
(b) in the case of the Profit and Loss Account, of the profit for the year ended on that date; and
(c) in the case of Cash Flow Statement, of the cash flows for the year ended on that date.

RAGHUVIR M AIYAR
PARTNER
Place : Mumbai
12
Referred to in paragraph 3 of our report of even date on the Accounts for the
year ended March 31, 2011 of INDIA INDEX SERVICES & PRODUCTS LIMITED.
In our opinion, and on the basis of such checks of the books and records as we considered appropriate and
according to the information and explanations given to us during the normal course of audit, which were
necessary to the best of our knowledge and belief, we report that:
1. The Company has maintained proper records showing full particulars including quantitative details
2. A substantial portion of the fixed assets have been physically verified by the management during the
year and in our opinion the frequency of verification is reasonable having regard to the size of the
Company and the nature of its assets. No material discrepancies were noticed on such verification.
3. The Company has not disposed off substantial part of the fixed assets during the year.
4. The Company is a service Company and therefore does not maintain any inventory, the direction in
this regard are therefore not applicable.
5. The Company has not granted any loans, secured or unsecured, to the companies, firms and other
parties covered in the Register maintained under Section 301 of the Companies Act, 1956. Accordingly
sub clause (b), (c) and (d) of clause (iii) are not applicable.
6. The Company has not taken any loans, secured or unsecured from the companies, firms and other
parties covered in the Register maintained under Section 301 of the Companies Act, 1956. Accordingly
sub clause (f) and (g) of clause (iii) are not applicable.
7. In our opinion and according to the information and explanations given to us, there are adequate
internal control procedures commensurate with the size of the Company and the nature of its business
with regard to purchases of fixed assets and with regard to the sale of goods and services. During the
course of our audit, no major weakness has been noticed in the internal controls.
8. In our opinion and according to the information and explanations given to us, there are no transactions
or arrangements as referred to in section 301 of the Companies Act, 1956 that have to be required to
be maintained under that section. Sub clause (b) of clause (v) is not applicable.
9. The Company has not accepted any deposit from the public and consequently the directives issued by
the Reserve Bank of India, provisions of section 58A and 58AA of the Companies Act, 1956, and the
Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public
are not applicable to the Company. No order has been passed by the Company Law Board, National
Law Tribunal or Reserve Bank of India or any other court or any other tribunal.
13
10. In our opinion, the Company has an internal audit system commensurate with the size and nature of
its business.
11. According to the information and explanations given to us, the Central Government has not prescribed
maintenance of cost records under section 209(1) (d) of the Companies Act, 1956 in respect of services
carried out by the Company.
12. During the year there were no employees in the employment of the Company. Accordingly the
directions relating to Provident Fund and Employee's State Insurance are not applicable to the
Company. Further, based on our examination of the records maintained during the year, the Company
is not liable to make any payments towards Investor Education Protection Fund, Sales Tax, Wealth
Tax, Customs Duty, Excise Duty and Cess. The Company has been regular in depositing Income Tax
and Service Tax dues along with cess thereon with the appropriate authority.
13. According to the records of the Company, Sales tax, Income-tax, Customs duty, Wealth tax, Service
tax, Excise duty and Cess which have not been deposited on account of any dispute, are as follows:
Name of Statute Year to which the Forum where the dispute Amount (Rs.)
(Nature of dues) amount relates is pending
Income Tax 2003-04 Assessing Officer 145
(Tax/ Interest) 2008-09 12,79,090
2006-07 Commissioner of 54,99,092
2007-08 Income Tax (Appeals) 1,25,00,348
14. According to the records of the Company, there are no dues of sales tax, income-tax, customs tax /
wealth-tax, service tax, excise duty / cess which have not been deposited on account disputes.
15. The Company does not have any accumulated losses at the end of the financial year and has not
incurred any cash losses during the financial year covered by our audit and in the immediately preceding
financial year.
16. The Company has neither taken any loans from any bank or financial institution nor issued any
debentures.
17. The Company has not granted loans and advances on the basis of security by way of pledge of shares,
18. The Company is not a chit fund or a nidhi/ mutual benefit fund/society.
19. In our opinion and according to the information and explanations given to us, the Company is not
dealing in or trading in shares, securities, debentures and other investments.
20. The Company has not given any guarantee for loans taken by others from bank or financial institutions.
14
21. The Company has not raised any term loans.
22. According to the information and explanations given to us and on an overall examination of the
balance sheet of the Company, we report that the no funds raised on short-term basis have been used
for long-term investment.
23. The Company has not made any preferential allotment of shares to parties and companies covered in
the register maintained under section 301 of the Companies Act 1956.
24. The Company has not issued any debentures during the year.
25. The Company has not raised money by public issues during the year.
26. According to the information and explanations given to us, no fraud on or by the Company has been
noticed or reported during the course of our audit
For K. S. AIYAR & CO,

RAGHUVIR M AIYAR
PARTNER
Place : Mumbai
15

(Rs.) (Rs.)
I SOURCES OF FUNDS
a Share Capital 1 13,000,000.00 13,000,000.00
b Reserve & Surplus 2 338,436,454.30 233,625,390.65
2. Deferred Tax Liability (Refer Note No.10) 29,728.33 147,269.33

TOTAL 351,466,182.63 246,772,659.98
1. Fixed Assets 3
Gross Block 5,950,878.53 5,966,168.53
Less: Depreciation 5,626,508.78 5,296,523.07
Net Block 324,369.75 669,645.46
2. Investments 4 78,936,200.11 20,219,260.20
3. Current Assets,
Loans and Advances 5
(a) Current Assets 278,719,970.93 242,263,519.38
(b) Loans & Advances 21,168,168.00 16,988,245.00
299,888,138.93 259,251,764.38
Less: Current Liabilities
& Provisions 6 27,682,526.16 33,368,010.06
272,205,612.77
Net Current Assets 225,883,754.32
TOTAL 351,466,182.63 246,772,659.98
Schedules referred to above form an integral part of the Balance Sheet
For K. S. AIYAR & CO. For and on behalf of the Board of Directors
RAGHUVIR M. AIYAR RAVI NARAIN CHITRA RAMKRISHNA
Partner Chairman Director
ROOPA KUDVA J RAVICHANDRAN

Director Director
ARUN PANICKER MUKESH AGARWAL

Director Director
Place : Mumbai SURESH NARAYAN

Date : April 25, 2011 Director & CEO
16
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2011
Schedule 31.03.2011 31.03.2010
(Rs.) (Rs.)
INCOME
Income From Operation 7 192,593,393.00 142,286,042.00
Other Income 8 17,159,251.74 9,403,185.02
Total 209,752,644.74 151,689,227.02
EXPENDITURE
Administration & Other Expenses 9 34,954,541.38 18,936,463.72
Depreciation 537,067.71 1,252,071.50
Total 35,491,609.09 20,188,535.22
Net Profit before tax 174,261,035.65 131,500,691.80
Less: Provision for tax

- Current 55,500,000.00 42,500,000.00
- Deferred Tax (117,541.00) (338,061.67)
- Short Provision of Tax 504,623.00 –
Net Profit after tax 118,373,953.65 89,338,753.47
Excess Corporate Dividend Tax for last year
transferred back 35,150.00 –
Profits available for appropriations 130,034,494.30 97,271,940.66
Appropriations :
- General Reserve 100,000,000.00 75,000,000.00
- Proposed Dividend 11,700,000.00 9,100,000.00
- Corporate Dividend Tax 1,898,040.00 1,546,550.00
130,034,494.30 97,271,940.66
Basic/Diluted Earnings Per Share (Rs.) 91.06 68.72
Schedules referred to above form an integral part of the Profit and Loss Account
Director Director
Director Director
17
SCHEDULES FORMING PART OF BALANCE SHEET
As at 31.03.2011 As at 31.03.2010
(Rs.) (Rs.)
Authorised
15,00,000 Equity Shares of Rs. 10/- each 15,000,000.00 15,000,000.00

13,00,000 Equity shares of Rs. 10/- each 13,000,000.00 13,000,000.00
(of the above 6,63,000 (Previous year 6,63,000) shares are
held by the holding company-
and its nominees)
TOTAL 13,000,000.00 13,000,000.00
SCHEDULE 2 : RESERVE & SURPLUS
General Reserve
Add: Transfered from Profit & Loss account 100,000,000.00 322,000,000.00 75,000,000.00 222,000,000.00
Profit & Loss Account 16,436,454.30 11,625,390.65
TOTAL 338,436,454.30 233,625,390.65
18
SCHEDULE 3 : Fixed Assets Schedule (Refer Note No. 2 (b))
NO. As on Additions Deletions As on As on For the Deletions/ As on As on As on
01/Apr/10 31/Mar/11 01/Apr/10 Year Adjust- 31/Mar/11 31/Mar/11 31/Mar/10
2010-2011 ments
1 COMPUTER SYSTEMS 4,450,448.53 166,277.00 207,082.00 4,409,643.53 4,035,329.40 349,535.76 207,082.00 4,177,783.16 231,860.37 415,119.13
2 FURNITURE & FIXTURES 13,945.00 – – 13,945.00 10,773.10 759.66 – 11,532.76 2,412.24 3,171.90
3 OFFICE EQUIPMENTS 49,215.00 25,515.00 – 74,730.00 49,215.00 3,372.89 – 52,587.89 22,142.11 –
4 TELECOMMUNICATION
SYSTEMS 9,500.00 – – 9,500.00 9,500.00 – – 9,500.00 – –
5 COMPUTER SOFTWARE 1,443,060.00 – – 1,443,060.00 1,191,705.57 183,399.40 – 1,375,104.97 67,955.03 251,354.43
TOTAL 5,966,168.53 191,792.00 207,082.00 5,950,878.53 5,296,523.07 537,067.71 207,082.00 5,626,508.78 324,369.75 669,645.46
Previous Year 5,966,168.53 – – 5,966,168.53 4,044,451.57 1,252,071.50 – 5,296,523.07 669,645.46 1,921,716.96
SCHEDULE 4 : INVESTMENTS (Refer Note 2(e))

Maturity Date Number of Face Value Face value As at 31.3.2011 As at 31.3.2010
Units per unit (Rs.) (Rs.) (Rs.)
QUOTED
BONDS
Taxfree
6.85% India Infrastructure Finance Company Limited - 2014 22-Jan-14 100.000 100,000.00 10,000,000.00 10,131,138.00 10,177,745.00
9%-Indian Railway Finance Corporation-2015 28-Feb-15 10.000 1,000,000.00 10,000,000.00 11,033,983.00 –
Taxable
7.10% POWER FINANCE CORPORATION 2012
TAXABLE SERIES 67 BONDS 15-Jul-12 10.000 1,000,000.00 10,000,000.00 10,000,000.00 –
UNQUOTED
MUTUAL FUNDS
Kotak Quarterly Interval Plan Series 3-Dividend 18-May-10 1,004,149.196 10.00 10,041,515.20 – 10,041,515.20
ICICI Prudential Interval Fund Annual Interval
Plan - I Institutional Cumulative 21-Aug-11 409,760.498 10.007 4,100,473.30 4,100,473.30 –
Kotak FMP 15M Series 7 - Growth 23-Feb-12 630,000.000 10.00 6,300,000.00 6,300,000.00 –
ICICI Prudential Interval Fund Half Yearly
Interval Plan - I Institutional Dividend 12-Apr-11 620,013.186 10.0012 6,200,875.88 6,370,605.81 –
Birla Sun Life Fixed Term Plan Series CI - Growth 28-Nov-11 1,000,000.000 10.00 10,000,000.00 10,000,000.00 –
Birla Sun Life Fixed Term Plan Series CR - Growth 1-Mar-12 200,000.000 10.00 2,000,000.00 2,000,000.00 –
HDFC FMP 370D March 2011 (2) - Growth-
Series XVI 13-Mar-12 400,000.000 10.00 4,000,000.00 4,000,000.00 –
IDFC FMP - Yearly Series 42 - Growth 25-Mar-12 500,000.000 10.00 5,000,000.00 5,000,000.00 –
Religare Fixed Maturity Plan Series VI - Plan D
(370 DAYS)-Growth Plan 26-Mar-12 1,000,000.000 10.00 10,000,000.00 10,000,000.00 –
Total 5,764,042.88 87,642,864.38 78,936,200.11 20,219,260.20
19
Note : Aggregate Market Value of the quoted investments is Rs 3,14,71,000/- (Previous Year : Rs. 1,01,78,000.00)
As at 31.03.2011 As at 31.03.2010
(Rs.) (Rs.)

A. CURRENT ASSETS
Interest Accrued
on Investments 1,533,369.86 127,616.44
on Fixed Deposits with Bank 4,152,965.97 5,686,335.83 47,845.64 175,462.08
Sundry Debtors (Unsecured, Considered good)

Over six months – 633,453.00
Others 10,685,226.46 10,685,226.46 8,933,568.00 9,567,021.00
(includes dues from Holding Company Rs. 75,97,617/-

Previous year Rs. 39,43,665/- )
Cash & Bank Balances

Cash in hand 5,179.00 1,131.00
In Current Account 813,963.81 3,679,903.26
In Fixed Deposit 85,709,000.00 86,528,142.81 19,800,000.00 23,481,034.26
Short Term Investments (Refer note No. 2(e) & 6) 175,820,265.83 209,040,002.04
TOTAL 278,719,970.93 242,263,519.38
B: LOANS & ADVANCES

(Unsecured, Considered good)
Advances recoverable in cash or in kind or for
value to be received 21,168,168.00 16,988,245.00
TOTAL 21,168,168.00 16,988,245.00
SCHEDULE 6: CURRENT LIABILITIES & PROVISIONS

Current Liabilities
Advance Income – 5,229,322.00
Sundry Creditors (Refer Note No. 13) 9,365,104.87 12,694,484.48
(includes dues to Holding Company Rs.68,68,269.87
previous year Rs.91,41,045.88)
Duties & Taxes 1,319,854.00 1,865,208.00
Other Liabilities 1,115,143.00 11,800,101.87 19,216.00 19,808,230.48
Provisions
Provisions for Tax (Net of Advance Taxes
Paid Including 2,284,384.29 2,913,229.58
TDS Rs.16,21,60,161.70, Previous year
Rs.12,14,37,957.41)
Corporate Dividend Tax 1,898,040.00 15,882,424.29 1,546,550.00 13,559,779.58
TOTAL 27,682,526.16 33,368,010.06
20
SCHEDULES FORMING PART OF THE PROFIT AND LOSS ACCOUNT

31.03.2011 31.03.2010
(Rs.) (Rs.)
SCHEDULE 7: INCOME FROM OPERATION
Index License Fees Within India
: Derivatives Trading 70,460,087.00 55,100,977.00
: Index Funds/Exchange Traded Funds 29,212,562.00 19,817,466.00
Index License Fees Outside India 66,452,011.00 54,789,976.00
ETF Licensing Outside India 3,363,137.00 1,148,426.00
Data Subscription Fees 15,821,172.00 11,429,197.00
Revenue Sharing - S & P 7,284,424.00 –
TOTAL 192,593,393.00 142,286,042.00
SCHEDULE 8: OTHER INCOME
Interest on Investments (Including Taxfree Income
Rs 13,11,301.37, Previous Year Rs 1,876.71) 1,809,273.97 1,876.71
Interest on Fixed Deposits (Gross ) (TDS Rs.5,90,648/-,
Previous Year Rs.77,435/- ) 6,119,083.33 403,251.64
Dividend From Mutual Funds 8,850,566.41 7,942,362.79
Profit on redemption of investment 74,966.23 1,053,093.88
Profit/Loss on Foreign Exchange Fluctuation (net) 295,348.41 –
Profit on Sale of Fixed Assets 10,000.00 –
Miscellaneous Income 13.39 2,600.00
TOTAL 17,159,251.74 9,403,185.02
SCHEDULE 9: OPERATING, ADMINISTRATION
& OTHER EXPENSES
Deputed Personnel Cost 10,754,533.00 8,109,299.65
Repairs And Maintenance 5,441,158.28 3,264,512.39
Data Usage Charges 2,266,500.00 –
Index Calculation Service Charges 7,500,000.00 –
Revenue Sharing - S&P 1,160,522.00
Software Expenses 109,169.00 73,832.00
- Audit fees 50,000.00 50,000.00
Registration Fees 292,206.00 29,820.00
Insurance Premium 21,239.00 16,946.78
Lease Line Charges 135,877.86 145,165.24
Committee Sitting Fees – 30,000.00
Printing & Stationery 76,868.08 56,630.08
Professional Fees 1,275,636.00 4,340,280.00
Rates & Taxes 89,003.00 89,003.00
Space & Infrastructure Usage Charges 3,292,941.49 685,687.00
Electricity Charges 339,532.70 129,697.57
Legal Fees/Expenses 67,720.00 47,930.00
Postage and Courier 85,829.99 58,933.35
Fees & Subscription 910,989.30 925,546.22
Travelling & Conveyance expenses 398,197.00 79,266.20
Telephone & Telex Charges 24,838.43 76,150.11
Profession Tax 2,000.00 2,000.00
Training Expenses 45,000.00 178,500.00
Amortisation of Premium on Govt/Debt Sec.
(Refer Note No.2E) 230,394.00 255.00
Other Expenses 384,386.25 547,009.13
TOTAL 34,954,541.38 18,936,463.72
21
SCHEDULE 10 : NOTES TO ACCOUNTS

1. The main objective of the Company is to develop, construct, compile, compute and maintain equity and
commodity indices for domestic and international dissemination, marketing and market development and
to provide very high quality indices and index related services. :
a) The accounts have been prepared on historical cost convention and on mercantile basis of accounting
in accordance with generally accepted accounting policies.
b) Fixed Assets & Depreciation:
Fixed Assets are stated at historical cost less accumulated depreciation. Historical cost is inclusive
of freight, duties, taxes, cost of installation, interest upto date of installation and other incidental
expenses incurred towards acquisition and installation of fixed assets.
The details of the estimated useful life of the assets where the depreciation is provided at the rate
higher than the rate specified in Schedule XIV of the Companies Act, 1956 are as follows:
Assets Estimated Useful Lives

Computer Systems - Office Automation 3 years
Computer Systems - Others 4 years
Telecommunication Systems 4 years
Furniture & Fixtures 5-16 years
Office Equipments 4-21 years
Computer Software 4 years
c) Foreign Currency Transactions:
Transactions in foreign currency are recorded at the rate of exchange in force at the date of transaction.
Foreign currency assets and liabilities other than for financing fixed assets are stated at the rate of
exchange prevailing at the year end and resultant gains/losses are recognised in the profit and loss
account except in cases covered by forward exchange contracts in which case these are translated at
the contracted rates and the resultant gains/losses are recognised over the life of the contracts.
d) Revenue Recognition:
The Company recognises the revenue on account of subscription fees with respect to the period of
the contract on an accrual basis.
Subscription fees received in respect of unexpired period of the contract is treated as a current
liability and is recognised as income in the respective period.
e) Investments :
(i) Long Term Investments are considered as held till maturity and are valued at cost.
(ii) Short Term Investments are valued at cost or fair value whichever is lower.
(iii) Premium paid/discount received at the time of acquisition of Government / Debt Securities
is amortised over the residual period of its maturity.
22
f) Taxation :
Tax expense for the year, comprising of current tax and deferred tax is included in determining the
net profit / (loss) for the year.
A provision is made for the current tax based on tax liability computed in accordance with prevailing
tax rates and tax laws. A provision / accrual is made for deferred tax for all timing differences
arising between taxable income and accounting income at the Balance Sheet Date based on prevailing
enacted or substantively enacted tax rates.
Deferred tax assets are recognized only if there is a reasonable certainty that they will be realized and
are reviewed for the appropriateness of their respective carrying values at each balance sheet date.
3. Contingent Liability:
On account of disputed matters of Income Tax Rs. 1,93,62,213/- (Previous Year Rs. 55,82,171/-) of
Fringe Benefit Tax Rs. 100/- (Previous Year Rs. Nil /-)
4. In the opinion of the Board, current assets, loans and advances are approximately of the value
5. Managerial Remuneration
Particulars Current Year Previous Year
Salary and Allowances 44,00,000.00 30,00,000.00
Contribution to Provident Fund and other Funds 3,00,000.00 2,00,000.00
Perquisites in Cash or in kind 2,00,000.00 1,00,000.00
6. The Company is paying space and infrastructure charges and other reimbursement of expenses to
National Stock Exchange of India Limited (NSEIL) and deputation expenses in respect of the
employees of both the promoter companies (NSEIL and CRISIL Limited.) who are on deputation.
7. The statement of Short Term Investments at the end of year is given below.
Sr. Particulars Number of As at 31.03.2011 As at 31.03.2010
No. Units (Rs.) (Rs.)
Mutual Funds
1. Axis Treasury Advantage Fund -
Institutional Daily Dividend 10,096.69 10,097,486.13 –
2 Birla Sun Life Cash Plus - Institutional
Premium Plan - Daily Div 545,485.19 5,465,488.84 –
3 Birla Sun Life Savings Fund - IP -
Dly Dividend 1,739,200.68 17,403,833.38 14,500,636.27
4 Canara Robeco Treasury Advantage Fund -
Retail - Daily Dividend 435,112.89 5,398,489.15 5,138,330.92
5 DWS Ultra Short -Term Fund - Daily
Dividend – – 1,813,622.58
6 DWS Cash Opportunities Fund - Reg -
Weekly Dividend 457,619.15 4,624,859.42 4,422,870.03
7 HDFC Cash Mgmt Fund - Savings Plan -
Daily Dividend 63.91 679.78 –
23
8 HDFC Cash Mgmt Fund - Treasury

Advantage - Retail - Daily Dividend 875,092.84 8,778,493.87 8,347,737.43
9 ICICI Prudential Flexible Income Plan -
Daily Dividiend 303,735.54 32,122,423.49 34,796,050.79
10 ICICI Prudential Ultra Short Term Plan -
Sup Prem - Wkly Dividend 1,284,864.06 12,891,609.98 25,896,883.88
11 IDFC Cash Fund - Plan A - Daily Dividend -
Reinvestment 83.13 879.62 –
12 IDFC Money Manager - Treasury Plan -
Plan A - Daily Dividend – – 2,436,218.70
13 JPMorgan India Liquid Fund - Super IP
- Daily Dividend 118,910.87 1,190,046.10 –
14 JPMorgan India Treasury Fund - Super IP -
Daily Dividend 102,887.27 1,029,788.35 6,015,734.91
15 KOTAK Floater - LT - Daily Dividend. – – 4,352,791.84
16 PRINCIPAL Floating Rate Fund - SMP -
IP - Dly. Div – – 17,549,756.28
17 Reliance Liquid Fund -Treasury Plan -
Institutional Option - Daily Dividend 492,531.46 7,529,525.49 –
18 Reliance Money Manager Fund -
IP - Dly Dividend 8,261.46 8,270,944.65 17,722,957.240
19 Reliance Medium Term Fund -
Daily Dividend 405,789.58 6,937,279.37 2,510,819.880
20 Religare Liquid Fund - Institutional
Daily Dividend 1.79 1,794.50 –
21 Religare Ultra Short Term Fund - IP - Daily
Dividend 17,783.27 17,813,809.88 16,106,822.910
22 SBI Magnum Insta Cash Fund - Daily
Dividend Option 120,422.67 2,017,115.79 –
23 Tata Floater Fund - Daily Div 488,933.26 4,906,738.59 14,619,540.030
24 Templeton India Ultra Short Bond Fund -
IP - Dividend 871,258.31 8,722,254.07 8,268,803.100
Fund - IP - Weekly Dividend 1,037,845.28 10,583,028.84 10,042,106.430
26 UTI Treasury Advantage Fund - IP -
Dly Dividend 10,032.03 10,033,696.54 14,498,320.930
TOTAL 9,326,011.32 175,820,265.83 209,040,004.15
24
8. Statement of investments purchased and sold/redeemed during the year at cost is given below:
Sr. Particulars No. of Units Investment Cost
No. (Rs.)
1 Birla Sun Life Cash Plus - Instl. Prem Plan -
Daily Dividend - Reinvestment 1,397,295.78 14,000,205.01
2 DWS ULTRA SHORT TERM FUND - REGULAR
DAILY DIVIDEND PLAN 475.50 4,765.23
3 HDFC CASH MANAGEMENT FUND SAVINGS PLAN
-DAILY DIVIDEND-REINVESTMENT 376,067.09 4,000,000.00
4 ICICI Prudential Institutional Liquid Plan - Super Institutional
Daily Div 102,990.22 10,301,349.14
5 IDFC CASH FUND - PLAN A - DAILY DIVIDEND -
REINVESTMENT 472,504.94 5,000,000.00
6 IDFC MONEY MANAGER FUND - TREASURY PLAN -
DAILY DIV 667.99 6,726.61
7 JPMorgan India Liquid Fund - Super Inst.Daily
Dividend Plan - Reinvest 99,921.06 1,000,000.00
8 JPMORGAN INDIA TREASURY FUND - SUPER INST.
DAILY DIV PLAN - REINVEST 1,743.22 17,447.75
9 KOTAK FLOATER LONG TERM - DAILY DIVIDEND 1,344.68 13,554.10
10 KOTAK LIQUID INSTITUTIONAL PLAN -
DIVIDEND - DAILY 515,272.25 6,300,800.63
11 KOTAK QUARTERLY INTERVAL PLAN
SERIES 3 - DIVIDEND 7,562.01 75,629.18
12 PRINCIPAL FLOATING RATE FUND-SHORT MATURITY
PLAN-INSTL-DAILY DIV-REINVESTMENT 11,433.46 114,342.58
13 RELIANCE LIQUID FUND-TREASURY PLAN-
INSTITUTIONAL OPTION-DAILY DIVIDEND 922,494.45 14,102,541.61
14 RELIGARE LIQUID FUND - INSTITUTIONAL
DAILY DIVIDEND 89,991.44 10,800,112.91
15 Religare Ultra Short Term Fund - Institutional Daily
Dividend 158,032.66 1,583,028.97
16 TEMPLETON INDIA TREASURY MANAGEMENT
ACCOUNT REGULAR PLAN - DAILY DIV REINVEST 1,454.80 2,200,153.50
17 Templeton Floating Rate INCOME FUND Retail Option -
DIVIDEND Reinvestment 206,800.63 2,218,621.05
Grand Total 4,366,052.18 71,739,278.27
25
9 In compliance with Accounting Standard - 18 "Related Party Disclosures" issued by the Institute of Chartered

Sr.
Related Party Nature of Relationship
No.
2 CRISIL Limited Joint Venturer with Holding Company
6 NSE.IT (US) Limited Fellow Subsidiary
8 NSE InfoTech Services Limited Fellow Subsidiary
10 Power Exchange India Limited Joint Venture with Holding Company
B) Details of transactions with related parties are as follows:

Name of Nature of Transactions Year ended Year ended
Related Party 31/03/2011 31/03/2010
National Stock Reimbursement of expenses for staff on deputation 99,80,203.00 53,44,762.65
Exchange of Space and Infrastructure usage charges 36,32,113.49 7,56,311.00
India Limited Reimbursement for other expenses incurred 5,97,42,804.77 4,62,18,897.07
Index Calculation Service Charges 82,72,500.00 Nil
Dividend Paid 46,41,000.00 33,15,000.00
Index License Fees Received 7,77,17,476.00 6,07,76,377.00
Data Subscription Fees Received 3,30,900.00 Nil
Outstanding balance included in Current Assets. 75,97,617.00 39,43,665.00
Outstanding balance included in Current liabilities 68,68,269.87 91,41,045.88
CRISIL Limited Reimbursement of expenses for staff on deputation 18,83,349.00 35,99,797.00
Index License Fees Received 6,11,563.00 Nil
Dividend Paid 44,59,000.00 31,85,000.00
Outstanding balance included in Current Assets. 1,51,563.00 Nil
Outstanding balance included in Current liabilities 16,95,019.00 32,39,817.00
DotEx Payment of fees for right to create indices. 24,99,950.00 Nil
International Data Subscription Fees 16,00,000.00 Nil
Limited
26
10. In accordance with Accounting Standard 20 "Earning per Share" issued by the Institute of Chartered
Accountants of India, the required disclosure is given below
31/03/2011 31/03/2010
Net Profit Attributable to Shareholders (Rs.) 11,83,73,953.65 8,93,38,753.47
Weighted Average number of equity shares issued 13,00,000 13,00,000
Basic earnings per shares of Rs. 10/- each (Rs.) 91.06 68.72
diluted earnings per share of the Company remain the same.
11. In accordance with Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of
Chartered Accountants of India, deferred tax liability as at 31st March 2011 and 31st March 2010 have
been detailed below:
(Rs.) (Rs.)
Deferred Tax Liability :
Depreciation Difference 29,728.33 1,47,269.33
12. a) Expenditure in Foreign Currency:

Meeting & Conference Expenses: Rs. 1,79,309.00 Rs.1,11,997.00
Refund of Excess License Fees: Rs. 45,010.00 Rs.28,01,027.16
Referral Fees: Rs. Nil Rs.5,92,293.75
Revenue Sharing - S&P : Rs. 11,60,522.00 Rs. Nil
TOTAL Rs. 13,84,841.00 Rs. 35,05,317.91
b) Earning in Foreign Exchange:
Index License Fees Outside India: Rs.6,64,52,011.00 Rs. 5,47,89,976.00
ETF Licensing Outside India: Rs.33,63,137.00 Rs. 11,48,426.00
Data Subscription Fees: Rs.87,24,744.00 Rs. 72,44,542.00
Revenue Sharing - S & P: Rs. 72,84,424.00 Rs. Nil
TOTAL Rs.8,58,24,316.00 Rs.6,31,82,944.00
13. Sundry creditors includes Rs 1,50,000/- (Previous Year Rs Nil) due to Micro, Small and Medium Enterprises.
Total outstanding dues to Micro, Small and Medium Enterprises have 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.
27
14. Information with regard to other matters specified in Clauses 3, 4C and 4D of Part II of Schedule VI of the
Companies Act, 1956 are not applicable to the Company.
15. The previous year's figures have been regrouped, reclassified and rearranged wherever necessary.



Director Director

Director Director

28
2010-2011 2009-2010
(Rs.) (Rs.)

NET PROFIT BEFORE TAX 174,261,035.65 131,500,691.80
- Depreciation 537,067.71 1,252,071.50
- Sundry Balances written off 0.93 2.83
- Amortisation of Premium on Govt/Debt Sec. 230,394.00 255.00
Less :Adjustments for :
- Interest on Investments (1,809,273.97) (1,876.71)
- Interest income on Fixed deposits (6,119,083.33) (403,251.64)
- Dividend From Mutual Funds (8,850,566.41) (7,942,362.79)
- Profit on redemption of investment (74,966.23) (1,053,093.88)
- Sundry Balances Written Back (13.39) –
- Profit on Sale of Fixed Assets (10,000.00) –
OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES 158,164,594.96 123,352,436.11

Adjustments for :
Sundry Debtors (1,118,192.86) (221,344.00)
Loans & Advances (4,179,923.00) (9,391,891.37)
Current Liabilities & Provisions (8,008,128.61) (13,385,091.41)
CASH GENERATED FROM OPERATIONS 144,858,350.49 100,354,109.33

Direct Taxes paid (56,633,468.29) (41,010,737.13)
NET CASH FROM OPERATING ACTIVITIES - Total (A) 88,224,882.20 59,343,372.20

Purchase of Fixed Assets (191,792.00) –
Sale of Fixed Assets 10,000.00 –
(Increase)/Decrease in Investment (25,652,631.61) (61,500,753.36)
Interest received on deposits 2,013,963.00 1,702,813.00
Dividend From Mutual Funds 8,850,566.41 7,942,362.79
Interest on Investments 403,520.55 –
NET CASH FROM INVESTING ACTIVITIES - Total (B) (14,566,373.65) (51,855,577.57)
29
2010-2011 2009-2010
(Rs.) (Rs.)
Dividend Paid (9,100,000.00) (6,500,000.00)
Dividend Distribution Tax (1,511,400.00) (1,104,680.00)
NET CASH FROM (USED IN) FINANCING ACTIVITIES - Total (C) (10,611,400.00) (7,604,680.00)
NET INCREASE/(DECREASE) IN CASH

AND CASH EQUIVALENTS (A+B+C) 63,047,108.55 (116,885.37)
CASH AND CASH EQUIVALENTS : OPENING BALANCE 23,481,034.26 23,597,919.63
[ includes fixed deposit with banks of Rs.1,98,00,000.00

(Previous Year Rs.2,00,00,000.00) ]
CLOSING CASH AND CASH EQUIVALENTS : CLOSING BALANCE 86,528,142.81 23,481,034.26
[ includes fixed deposit with banks of Rs.8,57,09,000.00

(Previous Year Rs. 1,98,00,000.00) ]
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 63,047,108.55 (116,885.37)

1 Cash and cash equivalent represent cash, bank balances and balance in fixed deposit account as per balance sheet
Standard-3 on Cash Flow Statements issued by the Institute of Chartered Accountants of india
3 All figures in brackets are outflows
4 Previous Years figures have been regrouped/restated wherever necessary
5 Direct taxes Paid/ Refunded are treated as arising from operating Activities and not bifurcated between investing and
financing activities.



Director Director

Director Director

30

(Information pursuant to Notification No. GSR No. 388(E) [F. No. 3/24/94 - CLV] dated 15-5-95, issued by
The Department of Company Affairs, Ministry of Law, Justice and Company Affairs)
Balance Sheet Date 3 1 0 3 2 0 1 1

Date Month Year

N I L N I L

N I L N I L

* * * 3 7 9 1 4 9 * * * 3 7 9 1 4 9
Sources of Funds
* * * * 1 3 0 0 0 * * * 3 3 8 4 3 6

N I L N I L

* * * * * * * 2 9
* * * * * * 3 2 4 * * * * 7 8 9 3 6

* * * 2 7 2 2 0 5 N I L
Accumulated Losses
N I L
31

Turnover/Total Income Total Expenditure
* * * 2 0 9 7 5 3 * * * * 3 5 4 9 2

* * * 1 7 4 2 6 1 * * * 1 1 8 3 7 4

* * * * 9 1 . 0 6 9 0
Item Code No. N A

(ITC Code)
Product I N D I C E S
Description

Chairman Director

Director Director

Director Director
SURESH NARAYAN
Director & CEO
Place : Mumbai
32
A A
NSE INFOTECH SERVICES LIMITED
FIFTH ANNUAL REPORT

2010-11
A A
Sys8 E:\F\2011\F-599-11 NSEIL Annual Report 2010-2011-F-599-11-NSE-Infotech-Annual
Fifth Annual Report
BOARD OF DIRECTORS
Mr. Ravindra Apte
AUDITORS : M/s. Gokhale & Sathe

302/303, Udyog Mandir No. 1
7-C, Bhagoji Keer Marg
Mahim, Mumbai 400 016

Plot No. C-1, Block ‘G'
Mumbai - 400 051
Fifth Annual Report
DIRECTORS’ REPORT
To,
The Members,
Your Directors have pleasure in presenting the Fifth Annual Report and the Audited Accounts of NSE Infotech
Services Limited (NSETECH) for the Financial Year ended March 31, 2011.

The focal areas of speed, quality, predictability, productivity and innovation have been institutionalised
across NSETECH. This financial year has been path-breaking in terms of the new architecture of the
trading system which allows for linear scalability thus enabling us to handle the four fold growth of order
transactions
Operations Highlights:
(1) Trading
The Trading system has seen volumes grow in leaps and bounds and the architecture of the system has
been changed to meet with the requirements. Net Market Rollout in the F&O segment is a milestone
towards capacity enhancement of trading system enabling horizontal scalability, to scale up to on
demand capacity by adding multiple market machines. The parallel redevelopment of the matching
engine (retooling project), currently underway, will result in a final capacity of 100,000 messages/sec.
The Appletree Database has been replaced with the newly developed SMFS (Shared Memory File
System) in the post trade (PT) layer of the FO trading system. In parallel, the earlier Stratus proprietary
messaging solution (VMA) has been migrated to a new generation messaging solution (29West) for
communication across various layers of the Trading system. 29West messaging is a high throughput,
low latency solution that is being used to achieve throughput of over 100K messages/sec. These
implementations enable a low latency and high throughput architecture. The NET layer hardware in
CD segments was upgraded from FT model 6210 to FT model 6300, along with the operating system
migration from Red Hat Linux Version 5.2 to Version 5.4.
With the advent of co-location, there was a market need for real-time data to be disseminated to these
High frequency algorithmic trading members, to enable them build the order book and help their
algorithms to work optimally. The Exchange has offered a new category of connectivity (Category T)
for market data broadcast called Tick by Tick. Tick by Tick data provides the latest order (new, modified
and cancelled) and trade information to the market.
With the increase in average number of order messages per day in the F&O segment from around
80 million to 100 million, the F&O trading capacity was increased by adding a third market machine
(until the release of Retooling project). With this, the capacity of FO Trading system has increased
from 12,000 to 18,000 order messages per second. CM trading capacity was also increased by adding
a fourth market machine. With this, the capacity of CM Trading system has increased from 5000 to
~7000 order messages per second.
In keeping with global trends, the Exchange has provided members a co-location facility for low
latency high frequency trading. The co-location phase II data center is an international standard, state
of the art, highly robust, resilient and secure infrastructure data center, built at the BKC premises. This
Phase II data center has a capacity of 54 full racks and 28 half racks.
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Fifth Annual Report
(2) Clearing and Settlement

The time taken by the Securities Pay-in/Pay-out cycle of the settlement cycle on T+2 day was about
90 minutes. The complete process was re-engineered along with the workflow and appropriate
automation to reduce the end-to-end time from 90 minutes to 3-5 minutes.
Funds Shortage Collateral (FSC) is the collateral blocked from the member's total capital based on
disablements arising out of Funds shortage. The computation of FSC involves analysis and monitoring
of the member's funds shortage over a considerable period of time. This computation was being done
manually by Funds department. This release enables the automated computation of FSC blockages
that can be released back to member.
Securities Lending and Borrowing scheme framework has been modified in accordance with guidelines
from SEBI. The major features introduced are Extension of Tenure for SLB transactions upto12 months,
Facility for request of Early Recall of securities by the lender and Facility for request of Early Repayment
of securities by the borrower. The Clearing and settlement system was completely changed to
accommodate the new business rules and released on state of art Itanium hardware.
The NSCCL Clearing Management System for Currency Derivatives (NCMS-CD) is a centralised
system where the trades and obligations management of all clearing members (CMs) with respect to
their Trading Members (TMs) and custodial participants (CPs) is consolidated. The primary purpose
of the system is to provide the CM to perform trade management by controlling the Trade Approvals
or Rejections of the TMs and CPs under him. Clearing Member can query/create/modify/delete the
intent request for the Trading Member/Custodial Participant and create a TM Enablement request for
all the TMs. The system was released to live on 21st June 2010 after a successful mock session.
The Systematic Investment Plan (SIP) facility in Mutual Fund Service System was introduced from
19th October 2010. Changes were made in the NEAT MFSS system functionalities and the MFSS
BackOffice systems to facilitate collection of SIP orders from MFSS Trading system. The application
also provides advance intimation to the Investor via the Trading member of upcoming SIP tranche,
to enable appropriate fund collection.
The Collateral application interfaces with DMS (Document Management System) to store and index
scanned copies of all physical documents submitted to NSCCL. While transferring instruments across
segments, users need to manually upload the scanned documents into the destination segment, as the
transferred instrument is treated as a new Collateral entry in the new segment. Similarly, manual
uploads are required during change of member code. As this is cumbersome and redundant activity,
changes have been made in the Collateral application to seamlessly transfer the scanned documents in
DMS, without any user intervention.
Custodians (PCM) have been providing trade confirmations for trades that shall be settled by them,
after end of trading on T day till T+1 Day 13:00 hrs. They were margined post this cut off on T+1 day.
With the new process, the confirmation process has been made online and the cutoff time changed to
18:00 hrs on T day.
The depository interface in the clearing and settlement system had to be changed to adapt to new
communication methodology adapted by NSDL. The new interface for segments CM, SLB and MFSS
application to facilitate seamless communication with NSDL for the Securities Pay-in/Pay-out
processing was released to live on 17th December 2010.
Design discussions are underway for the New generation Clearing and settlement. The key objectives
of the new generation clearing and settlement system are manageability, reliability and scalability of
the new architecture.
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Fifth Annual Report
(3) Risk Management and Surveillance

The process of enabling members across segments when there is an increase in collateral deposits was
manual. Mails were exchanged between the risk team and the collateral team as and when the member
was disabled or when the member brings in more collateral. With the new changes in place, the risk
team gets a pop up message when the disabled member brings in additional collateral. In addition to
this, the process of making the member eligible (only for cases where member is disabled due to
collateral shortage) for enablement in the risk management system has also been automated.
In the existing system, CP code and Client code modifications on T day trade were permitted after the
end of market hours. The above facility is made online and modifications to CP/Client code any time
during the market hours is permitted. The resulting change in marginable positions will be reflected
online in CM Risk management.
The Exchange introduced a Pre-open session with a call auction mechanism to reduce price volatility
at market opening through price discovery. This facility is currently enabled for Nifty stocks only. The
Risk Management system has been enhanced to monitor the provisional positions of members through
pre-order risk management.
The risk management system is a real-time engine which calculates obligations for both sides of every
trade, maintains a client-wise portfolio and calculates margins at client level grossing it up to TM and
then CM Level. The margins at TM and CM are validated for capital adequacy and violations/
suspensions are sent to Trading System in case limits are exceeded. Post several benchmarks with pre-
set parameters (portfolio, trade rate, number of suspensions, intra-day changes) bottlenecks were
identified. The risk engines were optimised to reduce the average turnaround time within the risk
management considerably.
(4) Network & Security
The Internal Firewall, deployed for controlling access from the user segment to the servers hosted at
the 6th Floor Data Center and the Secondary network Firewall, deployed for controlling the third
party access from internet and leased lines to the various servers hosted in the DMZ segment were
upgraded from R65 running on Nortel Platform to R70.30 on Nokia Platform because the capacity of
the uplinks from the Floor Switches to the Core switch were upgraded from 1Gbps to 10 Gbps. The
firewall upgrade will result in performance improvement and simplified and efficient management of
firewall.
Earlier, Regional Offices (RO) LAN was operational on 8+ years old 3Com Switches. The obsolete
3Com based LAN switches across all ROs were upgraded using Cisco Switches for better support &
manageability. In the WAN domain, additional STM-4(Synchronous Transport Module) link was
implemented between DC & DR to cater to SAN and other traffic. In the new setup, traffic is configured
for 3 STM-4 links providing total bandwidth of 1.8 Gbps. In order to strengthen monitoring and
management of Cisco load balancers in IP network, GUI based management tool ANM (Application
Network Monitoring) was successfully implemented
NOW datacenter which was earlier present on ground floor (BKC) has been relocated to data center
on first floor. The new data center is an international standard, state of the art, robust and secure data
center. The entire project was split in five phases. Each phase was executed during the weekends
starting from 4th Sep 2010 till 2nd Oct 2010. During the shifting period, NOW operations were carried
from both the locations. A total of 104 servers, 41 switches/routers were moved in this shifting. The
entire shifting was meticulously planned and well co-ordinated with telecom service providers, hardware
vendors and support staff ensuring that there was no downtime in NOW operations.
3
Fifth Annual Report
Uplinking permission for 48 Mhz from NOCC (Network Operations Control Center) was received
subsequent to surrender of 19.5 MHz unused space segments on INSAT-3A. Additionally, preventive
maintenance of BKC VSAT Antenna was successfully carried out in the month. In the NOW network,
all the three ISP firewall's (Checkpoint make) were upgraded to version R70. As part of Network and
Server rack cabling re-dressing across Datacenter, the old X.25 equipment and cables were removed
from the Data Centre.
SAN is the most critical component for data storage in core production systems (Risk, Clearing,
Index, Surveillance and Data warehousing). In order to meet the growth in terms of data volumes,
SAN setup was upgraded for additional storage capacity of 16TB (Terabyte) each at Mumbai
and Chennai with improved performance. The upgrade at Mumbai was successfully completed on
14th August 2010 and Chennai on 12th August 2010 with end to end application and infrastructure
testing.
Web Application Firewall (WAF) on NSE's website (http://www.nseindia.com) was implemented to
help mitigate HTTP attacks (such as SQL injection, Cross site scripting). It helps in detecting potential
Web application attacks in HTTP traffic before the request is served. If an anomalous and potentially
malicious pattern is detected in HTTP request headers, WAF can either issue an alert or block the
traffic altogether. The Web Application Firewall service provides a highly scalable, outer defensive
ring for the NSE website and enables continuous availability of the website.
(5) Other Systems
Corporate information page of the website has been enhanced for better usability, ease of navigation,
richer user interface and improved search facility. Corporate homepage on the NSE website has been
revamped with improved data architecture and better usability. The corporate information can now be
searched by Company, by Industry, by date and by Subject. Symbol suggest facility is also available
for easy identification of the company name.
MOST Shares M50 is an open ended Exchange Traded Fund (ETF) which is fundamentally a weighted
basket based on S&P CNX Nifty Index. The constituents of MOSt 50 Basket are same as the constituents
of Nifty. Weights assigned to constituents are dependent on their fundamental performance. The system
was made live on 19th July 2010.
Membership Application (earlier client server based) is now re-engineered to a new Web based
application. It has a rich web based front-end user interface with enhanced functionalities and fully
Re-designed normalised database. The design also takes care of scalability, configurability, improved
user management and charting features. With the web based interface, local environment configuration/
setups for end users has been eliminated thereby improving overall operational efficiency.
(6) New Initiatives
Segment revamp - Securities Lending & Borrowing (SLBM): Securities Lending and Borrowing scheme
framework has been modified in accordance with guidelines from SEBI. The major features introduced
are Extension of Tenure for SLB transactions up to 12 months, Facility for request of Early Recall of
securities by the lender and Facility for request of Early Repayment of securities by the borrower.
Changes were done in the Trading system with front end functionality for order entry, modification,
cancellation, inquiry and other new features. The Clearing and Settlement system was completely
changed to accommodate the new business rules and released on state of the art Itanium hardware.
Multiple mock sessions were conducted for the release.
Call auction in Pre-open (CM segment): The Exchange introduced a Pre-open session with a call
auction mechanism to reduce price volatility at market opening through price discovery. This facility
is currently enabled for Nifty stocks only. Functional enhancements have been made in CM Trading
4
Fifth Annual Report
system to support Pre-open session with indicative open price computation of securities /index on a
real-time basis. Concurrently, the Risk Management system has been enhanced to monitor the
provisional positions of members through pre-order risk management. The Pre-open information is
also disseminated to Tick by Tick, Infofeed, Interactive reports and on the NSE website.
Currency Options in CD segment: Trading in currency options on USD-INR (US Dollar-Indian Rupee)
pair was introduced in the currency derivatives segment. Changes were made to the Trading engine,
Risk management and Clearing & Settlement systems to handle the lifecycle of orders/trades for these
option pairs in the currency derivative segment.
TAP on Linux: A new version of Trading Access Point (TAP) for Linux operating system has been
released in CM, F&O and CD market segments, in an endeavor to enhance performance and flexibility,
co-existing with the earlier version of TAP on Windows.
India VIX using cubic spline: India VIX is a volatility index based on the Nifty 50 Index Option
prices. The volatility index indicates the investor's perception of the market's volatility in the near
term. From the best bid-ask prices of Nifty 50 Options contracts, a volatility figure (%) is calculated
indicating the expected market volatility over the next 30 calendar days. In the computation engine of
VIX, Cubic spline methodology has been implemented in the input validation process for identifying
bad quotes and reinstating them with new fitted values.
MFSS - Systematic Investment Plan (SIP): The Systematic Investment Plan (SIP) facility in Mutual
Fund Service System was introduced from 19th October 2010. Changes were made in the NEAT
MFSS system functionalities and the MFSS BackOffice systems to facilitate collection of SIP orders
from MFSS Trading system. The application also provides advance intimation to the investor via the
Trading member of upcoming SIP tranche, to enable appropriate fund collection.
NSE Electronic Application Processing System (NEAPS): NEAPS is a Web based application
facilitating listed companies on NSE to submit an application for listing of further issues such as
Foreign Currency Convertible Bond (FCCB), American/Global Depositary Receipt (ADR/GDR),
Qualified Institutional Placement (QIP), Bonus, and Employee Stock Ownership Plan (ESOP). The
new interface has enhanced the quality and speed of processing the application and also assisted the
companies to move towards paperless processing.
(7) HR Updates
The Company has 288 employees. The status of the number of employees joined in the year
2010-11 is as follows:
Employee Strength as April 01, 2010 315
Fresh recruitments (April, 2010-March 2011) 30
Total Employee Strength 345
Resignations (April, 2010 - March 2011) 57
Net Employee Strength as on March 31,2011 288
Total Requirement 320
In addition to lateral recruitments, 13 freshers from off-campus drive, had joined NSETECH as Trainee
Associate System Analysts (TASAs) in the period of 2010-11. Further, there were 5 students from
Campus recruitment 2009-10 drive, who were expected to join NSETECH as TASAs by May, 2010
but only 3 TASAs out of the 5, joined NSETECH. Total 16 TASAs joined NSETECH during the
period of 2010-11
5
Fifth Annual Report

The financial results for the financial year 2010-11 are summarised hereunder:-

(Rs. in lakhs) (Rs. in lakhs)
Income 3,753.73 3,528.84
Expenditure other than depreciation 3,613.82 3,375.16
Profit before depreciation and tax 139.91 153.68
III. DIVIDEND
As the profit is required to augment operational needs, your Directors do not recommend any dividend for
the financial year 2010-11.
practice, your Company, while already complying by and large with a major part of the Corporate Governance
with/ examining the possibility of implementing, the remaining part of the said Guidelines.
V. DIRECTORS
Ms. Chitra Ramkrishna retires by rotation at the ensuing Annual General Meeting and is eligible for
re-appointment.
and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of
the Company at the end of the financial year i.e., 31st March, 2011 and of the profits of the Company
for that year;
6
Fifth Annual Report

Since the paid up capital of the Company is Rs.5.00 lakhs only, it is not mandatory for the Company to
constitute an Audit Committee as per the provisions of the Companies Act, 1956.
VIII. AUDITORS
M/s. Gokhale & Sathe, Chartered Accountants, Auditors of the Company, retire at the forthcoming Annual
EARNINGS/OUTGO
Section 217(1)(e) of the Companies Act, 1956, read with the aforesaid Rules are not applicable to the
Company.
There were no foreign exchange earnings during the year. However, the foreign exchange outgo
during the year was Rs. 0.85 lakhs.
Statement of particulars of employees covered under the provisions of Section 217(2A) of the Companies
Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 is annexed.
XI. APPRECIATION
Your Directors are grateful for the support and co-operation extended by NSEIL and its group companies.
Your Directors would like to place on record their deep appreciation of the contribution made by the
employees at all levels to the continued growth of the Company.
Ravi Narain
Chairman
Place : Mumbai
7
Fifth Annual Report

1 Mr. N. Muralidaran 51 Chief Excutive 11648450 7908031 30 October 1, 2006 Sr. Vice President
M.Sc, M.B.A Officer NSE.IT Limited
2 Mr. G. M. Shenoy 50 Senior Vice 6361470 4346818 27 October 1, 2006 Sr. Vice President
B.E, M.F.M President NSE.IT Limited
Notes :
provident and superannuation funds, taxable value of perquisites, profession tax and income tax. Where applicable, the
amounts also includes certain allowances accrued during previous year(s) but claimed in the current year.
2 The employees are in permanent employment of the Company on contractual basis governed by the employment terms
& conditions and service rules.
3 None of the employees mentioned above is a relative of any Director.
4 None of the employees is holding equity shares in the company within the meaning of sub-clause (iii) of clause (a) of
8
Fifth Annual Report
AUDITORS’ REPORT
To,
THE MEMBERS OF NSE INFOTECH SERVICES LIMITED
We have audited the attached Balance Sheet of NSE INFOTECH SERVICES LIMITED as at 31st March
2011, Profit & Loss Account and cash flow statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Company's management. Our responsibility is to express
an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
1. As required by the Companies (Auditor's Report) Order, 2003 as amended by the Companies (Auditor's
Report) Amendment Order 2004 issued by the Central Government of India in terms of sub-section
(4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order to the extent applicable to the Company.
(iii) The Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report are
in agreement with the books of account;
(iv) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by
this report comply with the accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956
(v) On the basis of written representations received from the directors, as on 31st March, 2011, and
taken on record by the Board of Directors, we report that none of the Director is disqualified as on
31st March 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of
9
Fifth Annual Report
the Balance Sheet and Profit and Loss Account read with the Significant Accounting Policies and
notes on accounts give the information required by the Companies Act 1956 in the manner so
accepted in India:
(a) in thein the case of the Balance Sheet, of the state of affairs of the Company as at 31st March
2011;
(b) in the case of the Profit & Loss Account, of the Profit for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date;
For Gokhale & Sathe

Firm Reg.No. 103264W
Place : Mumbai.
Date : 25th April 2011
Atul Kale
Partner
10
Fifth Annual Report
FINANCIAL YEAR ENDED 31ST MARCH 2011

ANNEXURE TO THE AUDITOR'S REPORT AS REQUIRED BY THE
COMPANIES (AUDITOR'S REPORT) ORDER, 2003 AS AMENDED BY THE COMPANIES
(AUDITOR'S REPORT) AMENDMENT ORDER, 2004
(Referred to in Paragraph 1 of our Report of even date on accounts of
NSE INFOTECH SERVICES LIMITED as at 31st March 2011.)
As required by the Companies (Auditors Report) Order 2003 as amended by the Companies (Auditors
Report) Amendment Order 2004 issued by the Central Government in terms of Section 227(4A) of the
Companies Act 1956, on the basis of the checks, as we considered appropriate, we report on the matters
specified in paragraph 4 and 5 of the said order to the extent applicable to the company.
(i) a) The Company has maintained proper records, showing full particulars including quantitative
details and situation of fixed assets.
b) We have been informed that the physical verification of fixed assets was carried out by the
management during the year which in our opinion is reasonable having regard to the nature of
the assets. We have been informed that no material discrepancy was noted on such verification.
c) The Company has not disposed off substantial part of the Fixed Assets during the year.
(ii) Considering the nature of the business and services rendered by the company, clause (ii) under clause
4 of the CARO is not applicable.
(iii) a) The Company has not granted any loan secured or unsecured to companies, firms, or other
parties covered in register maintained u/s 301 of the Companies Act, 1956. Therefore the provision
of clause 4 (iii) (b), (c) and (d) are not applicable to the company.
b) The Company has not taken any loans, secured or unsecured from companies, firms or other
parties covered in the register maintained u/s 301 of the Companies Act, 1956. Therefore, the
provisions of clause 4 (iii) (f) and (g) are not applicable to the Company
(iv) On the basis of selective checks carried out during the course of audit and according to the information
and explanation given to us, in our opinion there are adequate internal control system commensurate
with the size of the Company and the nature of business with regard to the purchase of fixed assets
and with regard to the service rendered. During the course of our audit we have not observed any
continuing failure to correct major weakness in internal controls system.
(v) a) In our opinion and according to the information and explanations given to us, there are no
contracts or arrangements that need to be entered into a register in pursuance of section 301 of
the Companies Act 1956. Therefore, reporting of transaction under the provision of clause 4 (v)
(b) is not applicable to the Company.
11
Fifth Annual Report
(vi) The Company has not accepted any deposits from public and accordingly the provisions of section
58A, 58AA of the Act, and Rules framed there under and any directive issued by the Reserve Bank of
India are not applicable to the Company.
(vii) The company has an internal audit system commensurate with its size and nature of the business.
(viii) We have been informed that Central Government has not prescribed maintenance of cost records
under section 209 (1) (d) of the Companies Act, 1956 for the products of the Company.
(ix) a) According to the information and explanations given to us and the books and records examined
by us, the company was regular in depositing undisputed statutory dues with the appropriate
authorities. There were no undisputed amount payable in respect of Provident Fund, Employees
State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty,
cess and any other statutory dues which have remained outstanding as at 31st March 2011 for a
period exceeding six months from the date they became payable.
b) According to the information and explanation given to us, there are no disputed dues of Income
Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess which have not been
deposited on account of any dispute except the following:
Sr. No. Name of the Nature of Period to which Amount Forum where
Statute the dues the amount relates dispute is pending
1 Income Tax Act Fringe Benefit Tax 2006-07 38,204 Income Tax
Office-10(1)(4)
2 Income Tax Act Fringe Benefit Tax 2007-08 1,36,143 Income Tax
Office-10(1)(4)
3 Finance Acts Service Tax 02/08/2006 28,06,967 Additional
concerning to Commissioner
Service Tax 31/03/2009 of Service Tax,
Worli, Mumbai
(x) This being the fifth year since registration of the company this clause is not applicable.
(xi) In our opinion and according to the information and explanations given to us, the Company has not
taken any loan and no amounts were due towards principal or interest to any financial institution,
bank, or debenture holders during the year.
(xii) As per information given to us, the Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
12
Fifth Annual Report
(xiii) In our opinion, the Company is not a chit fund or a nidhi/ mutual benefit fund/ society. Therefore, the
provisions of clause 4 (xiii) are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in shares, securities, debentures, and other
investments.
(xv) According to the information and explanations given to us the Company has not given any guarantee
for loans taken by others from bank or financial institutions.
(xvi) According to the information and explanations given to us the company has not taken any term loan.
(xvii) According to the information and explanations given to us, the company has not raised any funds on
short term basis.
(xviii)According to the information and explanations given to us, the Company has not made any preferential
allotment of shares.
(xix) According to the information and explanations given to us, the company has not issued any debentures
up to 31st March 2011.
(xx) During the period covered by our audit report, there was no public issue of the Company's shares.
(xxi) According to the information and explanations given to us no fraud on or by the Company has been
noticed or reported during the year.
For GOKHALE & SATHE

Firm Reg.No. 103264W
ATUL KALE
PARTNER
Place : Mumbai
Date : 25th April 2011
13
Fifth Annual Report
BALANCE SHEET AS AT 31st MARCH , 2011
Schedule As At 31.03.2011 As At 31.03.2010

(Rs.) (Rs.)
I. SOURCES OF FUNDS
1. Shareholder's Funds
a Share Capital 1 500,000.00 500,000.00
b Reserves & Surplus 2 33,340,661.60 23,879,319.31
TOTAL 33,840,661.60 24,379,319.31

1. Fixed Assets 3
Gross Block 175,207.00 143,707.00
Less: Depreciation till date 39,616.00 71,081.00
Net Block 135,591.00 72,626.00
2. Investments 4 10,000,000.00
a Current Assets 19,809,541.65 14,800,755.30
b Loans & Advances 166,533,117.00 152,953,622.00
186,342,658.65 167,754,377.30
Less: Current Liabilities & Provisions 6 166,087,658.79 144,921,395.93
4. Deferred Tax Asset 3,450,070.74 1,305,799.74

5. Miscellaneous Expenditure 7 – 167,912.20
(To the extent not written off or adjusted)
TOTAL 33,840,661.60 24,379,319.31
Notes forming part of accounts 12
For GOKHALE & SATHE

Firm No : 103264W
Chairman Director
ATUL KALE
Partner
Membership Number: 109947
Place : Mumbai RAVINDRA APTE

Date : April 25, 2011 Director
14
Fifth Annual Report
PROFIT AND LOSS ACCOUNT FOR THE

YEAR ENDED MARCH 31, 2011
Schedule For the year ended For the year ended

31.03.2011 31.03.2010
Rs. Rs.
INCOME
Income from IT Services 369,973,066.00 352,299,778.95
Interest income 8 9,955.00 18,656.00
Other Income 9 5,390,405.29 565,160.17
TOTAL 375,373,426.29 352,883,595.12
EXPENDITURE
Employee Remuneration & Benefits 10 331,729,196.66 315,940,969.60
Administration & other expenses 11 29,653,138.34 21,574,975.58
Depreciation 42,917.00 28,556.00
TOTAL 361,425,252.00 337,544,501.18
Profit before tax 13,948,174.29 15,339,093.94

Less : Provision for tax
Current Tax 7,400,000.00 5,534,000.00
Deferred tax (2,144,271.00) (1,326,280.74)
Short/ (Excess) provision of tax of earlier years (768,897.00) 1,150,670.00
Profit after tax 9,461,342.29 9,980,704.68

Profit available for appropriation 33,340,661.60 23,879,319.31
Appropriations :
- Balance carried to balance sheet 33,340,661.60 23,879,319.31
33,340,661.60 23,879,319.31
Basic Earning per share (Rs) (Refer Note No 9) 189.23 199.61

For GOKHALE & SATHE

Firm No : 103264W
Chairman Director
ATUL KALE
Partner

15
Fifth Annual Report

As at 31.03.2011 As at 31.03.2010
Rs. Rs.

Authorised
1,00,00,000 Equity Shares of Rs. 10/- each 100,000,000.00 100,000,000.00

50,000 Equity shares of Rs. 10/- each fully paid up
(all the above shares are held by the holding company - 500,000.00 500,000.00
National Stock Exchange of India Limited and its nominees)
TOTAL 500,000.00 500,000.00
Balance in Profit & Loss Account 33,340,661.60 23,879,319.31
TOTAL 33,340,661.60 23,879,319.31
16
SCHEDULE 3 : FIXED ASSETS

NO.
As on Additions Deductions As on As on For the Deductions As on As on As on
01.04.2010 31.03.2011 01.04.2010 year 31.03.2011 31.03.2011 31.03.2010
1 OFFICE EQUIPMENT 143,707.00 125,667.00 94,167.00 175,207.00 71,081.00 42,917.00 74,382.00 39,616.00 135,591.00 72,626.00
GRAND TOTAL 143,707.00 125,667.00 94,167.00 175,207.00 71,081.00 42,917.00 74,382.00 39,616.00 135,591.00 72,626.00
Previous Year 111,717.00 31,990.00 – 143,707.00 42,525.00 28,556.00 – 71,081.00 72,626.00 –

SCHEDULE 4 : INVESTMENTS : (Note No.1 (g), 12)
Maturity Date Number of Face Value Face value As at 31.3.2011 As at 31.3.2010
Units per unit (Rs.) (Rs.) (Rs.)
QUOTED
MUTUAL FUNDS
Baroda Pioneer 380 Day FMP- Series 1- Growth Plan 28-Mar-12 1,000,000.000 10.0000 10,000,000.00 10,000,000.00 –
Total 1,000,000.00 10,000,000.00 10,000,000.00 –
Note : Market value of quoted investments is is Rs.1,00,92,800.00 ( Previous Year Nil)
17
Fifth Annual Report
Fifth Annual Report
As at 31.03.2011 As at 31.03.2010
Rs. Rs.

A: CURRENT ASSETS
Sundry Debtors
Outstanding for a period of more than
six months
Unsecured, Considered good 26,865.00 28,133.37
(Including dues from NSE.IT Limited
Rs. Nil Previous Year Rs. 1,268.37 )
Other Debts
(Including dues from National
Securities Clearing Corporation
Limited Rs. 32,21,772/-, Previous
Year Rs.27,83,871/-)
TOTAL 3,248,637.00 2,812,004.37

Cash in hand – –
In Current accounts 331,579.46 504,885.22
331,579.46 504,885.22
Short Term Investments 16,229,325.19 11,483,865.71

(Refer Note No. 1g & 13)
TOTAL 19,809,541.65 14,800,755.30

Advances recoverable in cash or in kind 98,987,482.00 86,108,105.00
for value to be received (Including dues
from National Stock Exchange of India
Limited Rs. 8,45,37,968/- Previous Year
Rs. 6,93,58,226/- and National Securities
Clearing Corporation Limited Rs.1,41,58,241/-
Previous Year Rs. 1,03,37,316/-)
Advance income tax paid including TDS 57,197,443.00 59,974,029.00
(Net of Provisions)
Advance Fringe Benefit Tax paid (Net of Provisions) 35,007.00 35,007.00
Deposits 19,500.00 7,500.00
Prepaid Expenses 9,901,303.00 6,242,595.00
Employee Loans 392,382.00 586,386.00
TOTAL 166,533,117.00 152,953,622.00
18
Fifth Annual Report
As at 31.03.2011 As at 31.03.2010
Rs. Rs.
Sundry creditors
Due to SSI Undertakings – –
Others 15,284,245.74 20,423,568.88
Tax deducted at source - payable 2,546,080.00 3,220,850.00
Service Tax Payable
Other liabilities 89,238,258.00 75,268,085.00
TOTAL 155,655,635.79 135,489,576.93
B : PROVISIONS
For Leave Encashment 10,432,023.00 9,431,819.00
TOTAL 10,432,023.00 9,431,819.00
TOTAL (A + B) 166,087,658.79 144,921,395.93
SCHEDULE 7 : MISCELLANEOUS EXPENDITURE

(To the extent not written off or adjusted)
Preliminary expenses – 167,912.20
TOTAL – 167,912.20
19
Fifth Annual Report
SCHEDULES FORMING PART OF PROFIT & LOSS ACCOUNT

31.03.2011 31.03.2010
Rs. Rs.
On Employee Loans 9,955.00 18,656.00
TOTAL 9,955.00 18,656.00
Income from Short Notice Dues 429,638.00 55,889.00
Dividend from Units 981,059.48 506,671.17
Interest Received On Income Tax Refund 3,979,277.00 –
Miscellaneous Income 430.81 2,600.00
TOTAL 5,390,405.29 565,160.17
SCHEDULE 10 : EMPLOYEE REMUNERATION & BENEFITS
Staff Welfare Expenses 3,491,166.66 1,997,866.60
Contribution to Provident Fund 4,207,013.00 4,131,924.00
Contribution to Pension Fund 1,967,120.00 2,030,820.00
Contribution to Group Gratuity Scheme 675,972.00 1,431,148.00
Contribution to Group Gratuity Scheme - LSA Premium 101,027.00 101,310.00
Contribution to Superannuation Scheme 763,425.00 691,380.00
TOTAL 331,729,196.66 315,940,969.60
20
Fifth Annual Report
For the year ended For the period ended

31.03.2011 31.03.2010
Rs. Rs.
SCHEDULE 11 : ADMINISTRATION & OTHER EXPENSES
Rent (Net) 1,071,102.00 1,037,944.00
Insurance 5,951,572.00 4,786,101.00
Rates & Taxes 2,000.00 2,000.00
Printing & Stationary 317,867.46 321,034.96
Travelling Expenses 622,970.00 764,136.00
Conveyance 307,567.00 298,311.00
Telephone Expenses 2,016,128.22 1,986,002.78
Professional & Consultancy Charges 5,158,473.05 3,461,806.50
Training Expenses 5,264,721.90 2,701,412.00
Pantry Expenses 3,990,495.48 3,728,576.82
Office Expenses 3,132.00 71,106.00
Recruitment Charges 617,646.25 230,773.00
Vehicle Expenses 1,504,941.96 1,177,921.13
- Audit Fees 50,000.00 50,000.00
Preliminary Expenses written off 167,912.20 167,912.20
Other Expenses 2,606,608.82 789,938.19
TOTAL 29,653,138.34 21,574,975.58
21
Fifth Annual Report
a. Basis of Accounting
The financial statements have been prepared under the historical cost convention on accrual system
and in accordance with the generally accepted accounting principles.
b. Revenue recognition
Revenue from IT Services is recognized based on the terms agreed with the customers.
Sales excludes applicable taxes and other levies.
c. Expenditure
d. Fixed Assets
Fixed Assets are stated at cost of acquisition less accumulated depreciation. Cost of acquisition is
inclusive of freight, duties, taxes and other incidental expenses.
Depreciation on fixed assets is provided using straight line method at the rates specified in schedule
XIV to Companies Act, 1956.
Depreciation is charged on a pro-rata basis for assets purchased during the year.
e. Preliminary Expenses
Preliminary expenses are amortized over a period of 5 years, from the year of commencement of
business.
f. Employee Retirement Benefits
Gratuity
The Company has maintained a Group Gratuity Cum Life Assurance Scheme with the Life Insurance
Corporation of India towards which it annually contributes a sum determined by Life Insurance
Corporation of India. The company provides for the defined benefit with respect to gratuity liability
based on the present value of defined benefit obligation as reduced by the fair value of plan assets as
per the actuarial valuation calculation.
Superannuation
Superannuation benefit for employees designated as managers and above, as may be applicable is
covered by Group Superannuation Scheme with the Life Insurance Corporation of India towards
which it annually contributes a sum based on a specified percentage of each covered employees'
salary. The contribution paid for the year on the Group Superannuation Scheme is charged to
revenue.
22
Fifth Annual Report
Provident Fund
Company has established the NSE Infotech Services Limited Employees' Provident Fund Trust to
which both the employee and the employer make monthly contributions equal to 12% of the
employee's basic salary respectively. The company has an obligation to make good the short fall, if
any, between the return from its investments and the administered interest rate.
Leave Encashment
Provision for leave encashment on retirement is made on the basis of actuarial valuation at the end
of the year.
g. Investments
i) Long Term Investments are considered as held till maturity and are valued at cost.
ii) Short term investments are valued at cost or fair value whichever is lower.
h. Income Tax
Provision for Income Tax is made on the basis of the prevailing rates under the Income Tax Act,
1961. Company has accounted deferred tax liability/asset in accordance with the Accounting Standard
22 - Accounting for taxes on income.
2. Expenditure in foreign currency: Rs.85,352 (Previous Year Rs 1,62,787)
3. Earnings in foreign exchange: Rs Nil (Previous Year Rs Nil)
4. C.I.F value of imports in respect of Capital goods. Nil (Previous Year Nil)
5. (a) As on the Balance Sheet date, the amounts due to Small-Scale Industrial undertaking are not
outstanding for more than 30 days.
(b) There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are
outstanding for more than 45 days at the Balance Sheet date, computed on unit wise basis.
6. The company is primarily engaged in the business of rendering of IT related services. Hence, information
with regard to other matters specified in Clauses 3, 4C and 4D of part II of Schedule VI of the Companies
Act, 1956 are not applicable to the company.
7. In the opinion of the management, the company has only one reportable business segment viz. offering "IT
related services". This takes into consideration the commonality in the risks and rewards of the services
offered, nature of service, type / class of customers for the services, management structure and system of
financial reporting. Accordingly, the results of the said segment have been disclosed in the financial
statements. Further, the company has no reportable geographical segments and on that basis, no secondary
segment information is furnished.
23
Fifth Annual Report
8. In compliance with Accounting Standard 18 "Related Party Disclosure", the required disclosures are given
in the table below:
A) Names of the related parties and relationship
No.
5 NSE.IT (US) Inc. Fellow Subsidiary
7 India Index Services & Products Limited Fellow Subsidiary
9 Power Exchange India Limited Joint Venture with Holding Company
10 NSE Infotech Services Limited Employees' Entity over which control exists
Provident Fund Trust
Superannuation Scheme
Group Gratuity Cum Life Assurance Scheme
Provident Fund Trust Company's control exists
Group Superannuation Fund Trust Company's control exists
Group Gratuity Cum Life Assurance Scheme Company's control exists
24
Fifth Annual Report
B) Details of transactions with related parties as follows:

Related Party 31.03.2011 31.03.2010
National Stock • Income from IT Services (Net) 315,498,879 328,680,761
Exchange of India • Service Tax recoverable on above services 32,496,384 35,431,557
Limited • Advance against Services 48,587,052 36,577,073
• Rent Paid 2,021,143 1,676,147
• Expenses incurred by NSEIL reimbursed 80,422,417 82,893,427
Closing Balance Debit / (Credit) 21,963,748 13,194,444
National Securities • Income from IT Services (Net) 54,474,187 54,570,352
Clearing • Service Tax recoverable on above services 5,610,844 5,620,745
Corporation Closing Balance Debit / (Credit) 17,380,013 13,121,187
Limited
NSE.IT Limited • Reimbursement received against – 5,348
expenses incurred
• Expenses incurred by NSE.IT reimbursed 2.310 –
Closing Balance Debit / (Credit) – (561)
NSE Infotech • Expenses incurred on behalf of the Trust 1,424,483 –
Services Limited Closing Balance Debit / (Credit) (805) (805)
Employees’
Provident Fund
Trust
DotEx • Expenses incurred by DotEx reimbursed – 100,319
International Ltd. Closing Balance Debit / (Credit) – (100,319)
9. In accordance with Accounting Standard - 20 "Earning per Share", the required disclosure is given below:

31.03.2011 31.03.2010
Net Profit attributable to Shareholders (in Rs.) 9,461,342 9,980,705
Weighted Average number of equity shares issued (in Nos.) 50,000 50,000
diluted earning per share of the Company remains the same.
25
Fifth Annual Report
10. In accordance with the Accounting Standard 22 - "Accounting for Taxes on Income", the break up of
deferred tax assets / liabilities is as follows:

31.03.2011 31.03.2010
Advance Service Tax Paid allowed u/s 43B – 2,097,610
Total (A) – 2,097,610
Less: Deferred Tax Assets
Gratuity unpaid 60,652 453,103
Related to depreciation 18,767 9,939
Short Term Capital Loss – 1,270
Leave Encashment 3,370,651 2,939,054
Others 43
Total (B) 3,450,070 3,403,409
Net Deferred Tax Liability / (Asset) (A-B) (3,450,070) (1,305,799)
11. In accordance with the Accounting standard 29 "Provisions, Contingent Liabilities and Contingent Assets",
the Company has made provisions for employee related payments. The particulars of these provisions are
as under:
Particulars Performance Long Term Project Leave
Pay Retention Incentive Encashment
Bonus
FY -2010-11 (Rs.) (Rs.) (Rs.) (Rs.)
Carrying amount at the beginning of the year 17,931,559 16,211,895 33,827,197 9,431,819
Amount used during the year 17,931,559 16,177,019 33,827,197 741,790
Amount unused reversed during the year – 34,876 – –
Provisions made during the year 19,041,000 16,121,000 46,708,771 1,741,994
Carrying amount at the end of the year 19,041,000 16,121,000 46,708,771 10,432,023
FY-2009-10
Carrying amount at the beginning
Previous Year 14,260,000 – 29,230,725 7,940,208
Amount used during the Previous Year 14,260,000 – 27,800,240 464,237
Amount unused reversed during the
Previous Year – – 1,430,485 –
Provisions made during the Previous Year 17,931,559 16,211,895 33,827,197 1,955,848
Carrying amount at the end of the
Previous Year 17,931,559 16,211,895 33,827,197 9,431,819
Leave encashment includes liability transferred from NSE.IT Limited.
26
Fifth Annual Report
12. Statement of Long Term Investments at the end of the year is given below.
Sr. Particulars Number As at As at

No. of Units 31.03.2011 31.03.2010
Unquoted:
Mutual Funds:
1 Baroda Pioneer 380 Day FMP-
Series 1- Growth Plan 10,00,000.000 1,00,00,000.00 –
13. Statement of Short Term Investments at the end of the year is given below.
Sr. Particulars Number As at As at

No. of Units 31.03.2011 31.03.2010
Unquoted:
Mutual Funds:
1 Principal Cash Management Fund -
Liquid Option Dividend Reinvestment Daily 1,834.515 18,346.43 17,504.43
2 IDFC Liquid Plus Fund - Treasury Plan -
Institutional Plan B - Daily Dividend 218,592.856 2,201,295.64 2,088,827.44
3 ICICI Prudential Flexible Income Plan
Premium - Daily Dividend 132,467.749 14,006,477.44 9,377,533.85
4 Birla Sunlife Savings Fund - Instl Daily
Dividend - Reinvestment 146.673 1,469.59 –
5 Baroda Pioneer Liquid Fund - Instl Daily
Dividend Plan 1.735 1,736.09 –
Total 16,229,325.19 11,483,865.71
14. Disclosure under Revised Accounting Standard 15 on Employee Benefits.

(i) Defined Contribution Plan: Company's contribution towards superannuation amounting to Rs.
7,63,425/- has been charged to Profit & Loss account.
(ii) Defined Benefit Plan:
(a) Provident Fund : The Guidance on Implementing AS 15 (Revised 2005) Employee benefits
issued by the Accounting Standard Board (ASB) states benefit involving employer established
provident funds, which require interest short fall to be recompensed are to be considered as
defined benefit plans. Pending issuance of the guidance note from the Actuarial Society of
India, the Company is unable to reliably measure provident fund liability. Accordingly, the
Company is unable to exhibit the related information.
(b) Gratuity: Company has charged the gratuity expenses to Profit & Loss account based on the
actuarial valuation of gratuity liability at the end of the year. The projected unit credit method
27
Fifth Annual Report
used to show the position as at March 31, 2011 is as under. Pursuant to the actuarial valuation
any amount recoverable from NSE.IT Limited on transfer of employee will be suitably dealt
with.
Obligation at period beginning 11,459,751 9,440,254
Add: Service Cost 2,392,554 2,126,289
Add: Interest Cost 916,780 914,983
Add: Actuarial (gain)/loss (1,548,442) (763,276)
Less: Benefits paid 120,000 258,500
Obligation at period end 13,100,643 11,459,750
Change in plan assets
Plan assets at period beginning, at fair value 10,126,702 6,515,837
Add: Expected return on plan assets 810,136 752,728
Add: Actuarial gain / (Loss) 274,784 94,121
Add: Contributions 1,822,084 3,022,516
Less: Benefits paid 120,000 258,500
Plan assets at period end, at fair value 12,913,706 10,126,702
Reconciliation of present value of the obligation and the fair

value of the plan assets:
Fair value of the plan assets at the end of the period 13,100,643 11,459,750
Present Value of the defined obligations at the end of the period 12,913,706 10,126,702
Funded Status 186,937 1,333,048
Asset / (liability) recognised in Balance Sheet 186,937 1,333,048
Assumptions
Interest Rate 8.00% 8.00%
Gratuity Cost for the period

Service Cost 2,392,554 2,126,290
Expected return on plan assets 810,136 752,728
Net Actuarial (gain) / loss recognised in the year (1,823,226) (857,397)
Expenses recognised in statement of Profit & loss 675,972 1,431,148
28
Fifth Annual Report
14. Contingent Liability

On account of disputed matters , of Income Tax Rs.5,29,720/- (previous year Rs.1,36,24,118/-), of
Fringe Benefit Tax Rs.1,74,347/- (previous year Rs.1,74,347/-), of Service Tax Rs.28,06,967/- (previous
year Rs.28,06,967/-).
15. The previous year figures are regrouped, reclassified and rearranged, wherever necessary.
For GOKHALE & SATHE

Firm No : 103264W
Chairman Director
ATUL KALE
Partner

29
Fifth Annual Report
CASH FLOW STATEMENT FOR THE

YEAR ENDED 31ST MARCH, 2011
2010-2011 2009-2010
(Rs.) (Rs.)
Net profit before tax 13,948,174.29 15,339,093.94
Add: Adjustments for:

Depreciation 42,917.00 28,556.00
Preliminary Expenses W/off 167,912.20 167,912.20
Dividend Received (981,059.48) (506,671.17)
Loss on Sale of Fixed Assets 16,785.00 –
Operating Profit before working capital change 13,194,729.01 15,028,890.97
Change in Working Capital

Decrease / (Increase) in Sundry Debtors (436,632.63) (2,173,080.15)
Increase in Loans & Advances (16,356,081.00) (32,428,535.50)
Increase in Current Liabilities & Provisions 21,166,262.86 23,938,997.87
Cash Generated from Operations 17,568,278.24 4,366,273.19
Taxes Paid (Including TDS) (3,854,517.00) (27,037,090.00)
Net Cash From Operating Activities - Total (A) 13,713,761.24 (22,670,816.81)
Purchase of Fixed Assets (125,667.00) (31,990.00)

Sale of Fixed Assets 3,000.00 –
Dividend Received 981,059.48 506,671.17
Investment in Mutual Fund (14,745,459.48) 14,544,863.19
Cash flow from investing activity - Total (B) (13,887,067.00) 15,019,544.36
30
Fifth Annual Report
2010-2011 2009-2010
(Rs.) (Rs.)
C) CASH FLOW FROM FINANCING ACTIVITY

Cash Flow from Financing Activity - Total (C) – –
Net Increase / (Decrease) In cash & Cash Equivalent (173,305.76) (7,651,272.45)

Opening balance of Cash & Cash Equivalent 504,885.22 8,156,157.67
Closing balance of Cash & Cash Equivalent 331,579.46 504,885.22
Net Increase / (Decrease) In cash & Cash Equivalent (173,305.76) (7,651,272.45)

1. Cash and cash equivalent represent cash and bank balances.
2. The above Cash Flow Statement has been prepared under the "Indirect Method" as set out in the Accounting
Standard-3 on Cash Flow Statements issued by the Institute of Chartered Accountants of India
For GOKHALE & SATHE

Firm No : 103264W
Chairman Director
ATUL KALE
Partner

31
Fifth Annual Report

Information pursuant to Notification No. GSR No. 388(E) [F.No.3/24/94-CLV] dated 15-5-95,
issued by the Department of Company Affairs, Ministry of Law, Justice and Company Affairs)
(Part IV of Schedule VI to the Companies Act,1956)
Registration No. U 7 2 9 0 0 MH 2 0 0 6 P L C 1 6 3 4 6 8 State Code 1 1

Date Month Year
II Capital raised during the period (Amount in Rs. Thousands)

* * * N I L * * * * * * N I L * * *

* * * N I L * * * * * * * * * * * *

* * * 1 9 9 9 2 8 * * * 1 9 9 9 2 8
Sources of Funds
* * * * * * 5 0 0 * * * * 3 3 3 4 1

* * * N I L * * * * * * N I L * * *
* * * * * * 1 3 5 * * * * 1 0 0 0 0

* * * * 2 0 2 5 5 * * * * * * N I L
Accumulated Losses
* * * N I L * * *
32
Fifth Annual Report

* * * 3 7 5 3 7 3 * * * 3 6 1 4 2 5

* * * * 1 3 9 4 8 * * * * * 9 4 6 1
(Please tick appropriate box + for Profit, – for Loss)

* 1 8 9 . 2 3 – –
Item Code No. N A

(ITC Code)
Product I N F O R M A T I O N
Description T E C H N O L O G Y
S E R V I C E S

Chairman Director

33
o o
National Commodity Clearing Limited
(Subsidiary of National Stock Exchange of India Limited)
FIFTH ANNUAL REPORT

2010-11
o o
NATIONAL COMMODITY CLEARING LIMITED
Fifth Annual Report
BOARD OF DIRECTORS
Mr. Raghavan Putran
Mr. R. Ramaseshan
SECRETARY
Ms. Sneha Huddar : Asst. Company Secretary
AUDITORS : M/s. Haribhakti & Co.

701, Leela Business Park,
Andheri-Kurla Road,
Andheri (East)
Mumbai - 400 059

Plot C-1, Block ‘G'
Mumbai - 400 051
Fifth Annual Report
DIRECTORS’ REPORT
To,
The Members,
Your Directors have pleasure in presenting the Fifth Annual Report and the Audited Accounts of National
Commodity Clearing Limited (NCCL) for the financial year ended March 31, 2011.

NCCL has completed the fourth full year of operations, since its commencement from September 1, 2006,
in providing IT and process support to NCDEX in respect of its clearing and settlement of trades done in
derivatives segment. The clearing and settlement covers contracts in 44 products ranging from agricultural
commodities to base metals, ferrous metals, energy, polymers and precious metals. NCCL carries out
funds settlement through 13 clearing banks namely, Bank of India, Canara Bank, Punjab National Bank,
Union Bank of India, Tamilnad Mercantile Bank, Axis Bank, ICICI Bank, Indus Ind Bank, HDFC Bank,
Kotak Mahindra Bank, Yes Bank, State Bank of India and Development Credit Bank Limited. The summary
of trading, settlement and collateral statistics for the financial year 2010-11 is given hereunder:-
Trading
The summary statistics of market during the financial years 2010-11 and 2009-10 are given below:

Total Number of Trades 2,71,08,027 2,20,04,805
Total Traded Quantity 83,11,50,740 41,71,76,039
Total Trading Value (Rs. in crores) 14,10,602.21 9,17,584.71
Settlement
MTM Settlement (Rs. in crores) 6,890.51 5,940.43
Physical Settlement (Rs. in crores) 1,560.14 1,664.65
Collaterals
Instrument 2010-11 2009-10
Count Amt. (Rs.Crores) Count Amt. (Rs.Crores)
Bank Guarantee 1,063 757.57 834 521.29
Fixed Deposit Receipts 1,193 807.62 1,073 320.78
1
Fifth Annual Report

During the year 2010-11, NCCL earned net profit after tax of Rs. 99.54 lakhs as compared to the net profit
after tax of Rs. 93.39 lakhs during 2009-10. The financial results for the financial year 2010-11 are
summarised hereunder:-
Particulars 2010 - 11 2009-10

(Rs. In Lakhs) (Rs. In Lakhs)
Income 479.59 488.30
Profit before prior period adjustments 125.97 42.13
Add/(Less): Prior-period adjustments 3.68 70.13
Net profit before tax 129.65 112.26
Less:/(Add): Provision for tax (including deferred tax) 30.11 18.87
Net profit after tax 99.54 93.39
Add: Surplus brought forward from previous year 149.58 56.19
III. DIVIDEND
As the profit is required to augment operational needs, your Directors do not recommend any dividend for
the financial year 2010-11.
practice, your Company, while already complying by and large with a major part of the Corporate Governance
with/examining the possibility of implementing, the remaining part of the said Guidelines.
V. DIRECTORS
In accordance with the provisions of the Companies Act, 1956 and the Company's Articles of Association,
Ms. Chitra Ramkrishna retires by rotation at the ensuing Annual General Meeting and is eligible for
re-appointment.
VI. DIRECTORS’ RESPONSIBILITY STATEMENT
along with the proper explanation relating to material departures, if any;
of the Company at the end of the financial year i.e. March 31, 2011 and of the profits of the Company
for that year;
2
Fifth Annual Report

Since the paid up capital of the Company is Rs. 4.75 crores only, it is not mandatory for the Company to
constitute an Audit Committee as per the provisions of Section 292A of the Companies Act, 1956.
However, the Board had constituted an Audit Committee in August 2007. The Audit Committee presently
comprises of Mr. Ravi Narain, Ms. Chitra Ramkrishna and Mr. R. Ramaseshan as its members. Mr. Ravi
Narain is the Chairman of the Audit Committee.
During the year, the Committee met four times i.e., on April 23, 2010, August 12, 2010, December 3, 2010
and on February 23, 2011. The details of the attendance of the members of Audit Committee are presented
in the following table:-
Names Number of meetings held during Number of meetings
the year attended
Mr. Ravi Narain 4 4
Ms. Chitra Ramkrishna 4 4
Mr. R. Ramaseshan 4 4
VIII. AUDITORS
M/s. Haribhakti & Co., Chartered Accountants, Auditors of the Company, retire at the forthcoming Annual
EARNINGS/OUTGO
As the Company does not fall under any of the industries listed out in the Schedule appended to Companies
(Disclosure of particulars in the Report of the Board of Directors) Rules, 1988, particulars required to
be disclosed with respect to conservation of energy and technology absorption in terms of Section
217(1)(e) of the Companies Act, 1956, read with the aforesaid Rules are not applicable to the Company.
The foreign exchange earnings during the year were NIL. There was no foreign exchange outgo during
the year.
All persons who are working with the Company are on deputation from National Stock Exchange of India Limited
(NSEIL) and accordingly the remuneration paid in respect of them has been reimbursed to NSEIL by NCCL. A
Statement under Section 217 (2A) of the Companies Act, 1956 read with Companies (Particulars of Employees)
Rules, 1975 is enclosed.
XI. APPRECIATION
Your Directors are grateful for the support and co-operation extended by National Stock Exchange of India
Limited and National Commodity & Derivatives Exchange Limited. Your Directors would also like to
place on record their deep appreciation of the contribution made by the employees at all levels to the
continued growth of the Company.
Ravi Narain
Chairman
Place : Mumbai
3
Fifth Annual Report

1 Mr. R Nandakumar 45 Senior Vice 5779502 3894590 24 March 15, 1995 Staff Officer
B. Com., Grad. CWA, President (Finance),
MBA, CAIIB, FIII Unit Trust of India
Notes :
provident and superannuation funds, taxable value of perquisites, profession tax and income tax.Where applicable, the
amounts also includes certain allowances accrued during previous year(s) but claimed in the current year.
3 The above employee is on deputation basis from the Company's holding company i.e. National Stock Exchange of India
Limited (NSEIL) and the proportionate remuneration mentioned above in respect of him has been reimbursed to NSEIL
by the Company.
4 The above employee is not holding equity shares in the Company within the meaning of sub-clause (iii) of clause (a) of
4
Fifth Annual Report
AUDITORS’ REPORT
To
The Members Of National Commodity Clearing Limited
1. We have audited the attached Balance Sheet of National Commodity Clearing Limited (‘the Company')
as at March 31, 2011 and also the Profit and Loss account and the cash flow statement for the year
ended on that date annexed thereto. These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial statements based on our
audit.
3. As required by the Companies (Auditor's Report) Order, 2003, (as amended), issued by the Central
Government of India in terms of sub-section (4A) of Section 227 of ‘The Companies Act, 1956' of
India (the ‘Act') and on the basis of such checks of the books and records of the company as we
considered appropriate and according to the information and explanations given to us, we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the paragraph 3 above, we report that:

i) We have obtained all the information and explanations, which to the best of our knowledge and
ii) In our opinion, proper books of account as required by law have been kept by the Company so far
iii) The balance sheet, the profit and loss account and the cash flow statement dealt with by this
report are in agreement with the books of account;
iv) In our opinion, the balance sheet, the profit and loss account and the cash flow statement dealt
with by this report comply with the accounting standards referred to in sub-section (3C) of section
211 of the Companies Act, 1956.
v) On the basis of the written representations received from the directors, as on March 31, 2011, and
taken on record by the Board of Directors, we report that none of the directors is disqualified as
on March 31, 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of
5
Fifth Annual Report
vi) In our opinion and to the best of our information and according to the explanations given to us,
accepted in India;
(a) in the case of the balance sheet, of the state of affairs of the Company as at March 31, 2011,
(b) in the case of the profit and loss account, of the profit for the year ended on that date, and
(c) in the case of cash flow statement, of the cash flows for the year ended on that date.
For Haribhakti & Co.

FRN No.103523W
Prasad V. Paranjape
Partner
Place: Mumbai
6
Fifth Annual Report
ANNEXURE TO AUDITORS' REPORT

Referred to in paragraph 3 of the Auditors' Report of even date to the members of
National Commodity Clearing Limited on the financial statements for the year ended March 31, 2011
(i) (a) The Company has maintained proper records showing full particulars, including quantitative
details and situation of fixed assets.
(b) The fixed assets of the company have been physically verified by the management during the
year and no material discrepancies were noticed on such verification. In our opinion, the
frequency of verification is reasonable.
(c) There was no substantial disposal of fixed assets during the year.
(ii) The Company does not hold any Inventory. Therefore, the provisions of clauses 4(ii)(a),(b)&(c) of
the Companies (Auditor's Report) Order, 2003 (as amended) are not applicable to the Company.
(iii) As informed, the Company has not granted/accepted any loans, secured or unsecured to companies,
firms or other parties covered in the register maintained under section 301 of the Companies Act,
1956 and hence clauses 4(iii)(b), 4(iii)(c), 4(iii)(d), 4(iii)(f) and 4(iii)(g) of the Companies (Auditor's
Report) Order, 2003 (as amended) are not applicable to the company.
(iv) In our opinion and according to the information and explanations given to us, there is an adequate
internal control system commensurate with the size of the Company and the nature of its business
with regard to purchase of fixed assets and with regard to the sale of services. During the course of
our audit, no major weakness has been noticed in the internal control system in respect of these areas.
During the course of our audit, we have not observed any continuing failure to correct weakness in
internal control system of the company.
(v) According to the information and explanations given to us, there are no contracts or arrangements
during the year that need to be entered into the register maintained under section 301 hence clause
4(v)(b) of the Companies (Auditor's Report) Order, 2003 (as amended) is not applicable to the company.
(vi) The company has not accepted any deposits from the public within the meaning of Sections 58A and
58AA of the Act and the rules framed there under.
(vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of
its business.
(viii) To the best of our knowledge and as explained, the Central Government of India has not prescribed
the maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Act for any
of the services of the company.
(ix) (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund, employees' state insurance,
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise duty, cess and other material
statutory dues applicable to it.
7
Fifth Annual Report
Further, since the Central Government has till date not prescribed the amount of cess payable
under section 441A of the Companies Act, 1956, we are not in a position to comment upon the
regularity or otherwise of the company in depositing the same.
(b) According to the information and explanations given to us, no undisputed amounts payable in
respect of provident fund, investor education and protection fund, employees' state insurance,
income-tax, wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and other
undisputed statutory dues were outstanding, at the year end, for a period of more than six months
from the date they became payable.
(c) According to the information and explanation given to us, there are no dues of income tax,
sales-tax, wealth tax, service tax, customs duty, excise duty and cess which have not been
deposited on account of any dispute.
(x) The Company does not have any accumulated losses as on the balance sheet date. Further, the company
has not incurred cash losses during the financial year covered by our audit and the immediately
preceding financial year.
(xi) The Company does not have any dues to financial institution, bank or debenture holders.
(xii) According to the information and explanations given to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the
provisions of clause 4(xiii) of the Companies (Auditor's Report) Order, 2003 (as amended) are not
applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other
investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 (as amended) are not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, the company has not
given any guarantee for loans taken by others from banks or financial institutions during the year.
(xvi) The Company has not obtained any term loans.
(xvii) According to the information and explanations given to us and on an overall examination of the
balance sheet of the Company, we report that no funds raised on short-term basis have been used for
long-term investment.
(xviii) According to the information and explanations given to us, the company has not made any preferential
allotment of shares to parties and companies covered in the register maintained under section 301 of
the Act.
(xix) The Company did not have any outstanding debentures during the year.
(xx) The Company did not raise any money by way of public issue during the year.
8
Fifth Annual Report
(xxi) During the course of our examination of the books and records of the company, carried out in accordance
with the generally accepted auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of fraud on or by the company,
noticed or reported during the year, nor have we been informed of such case by the management.
For Haribhakti & Co.

FRN No.103523W
Prasad V. Paranjape
Partner
Place: Mumbai
9
Fifth Annual Report

(Rs.) (Rs.)
I SOURCES OF FUNDS
1. Shareholders’ Funds
a Share Capital 1 47,500,000.00 47,500,000.00
b Reserves & Surplus 2 24,911,908.16 72,411,908.16 14,958,142.50 62,458,142.50
2. Deferred Tax Liability 170,469.96 409,100.33

(Refer Schedule 10: Point No.2 ( i ))
TOTAL 72,582,378.12 62,867,242.83
1. Fixed Assets 3
Gross Block 9,168,102.82 9,168,102.82
Less :Accumulated Depreciation 8,091,889.82 6,669,385.41
Net Block 1,076,213.00 2,498,717.41
2. Investments 4 7,614,266.00 240,000.00
3. Current Assets, Loans
and Advances 5
a. Current Assets
1. Sundry Debtors 3,852,268.13 3,862,849.85
2. Cash & Bank Balances 18,706,572.42 923,527.70
3. Other Current Assets 37,672,424.69 57,753,575.56
(Refer Schedule 10: Point No.2 (a))
4. Interest accrued 1,409,315.00 9,904.04
b. Loans & Advances 14,250,110.01 75,890,690.25 18,045,048.77 80,594,905.92
Less : Current Liabilities
& Provisions 6
Current Liabilities 11,998,791.13 20,466,380.50
63,891,899.12 60,128,525.42
TOTAL 72,582,378.12 62,867,242.83
The Schedules referred to above form an integral part of the Balance Sheet and notes to Accounts
Chairman Director
PRASAD V. PARANJAPE
Partner
Place : Mumbai R.RAMASESHAN SNEHA HUDDAR

Date : April 26, 2011 Director Asst. Company Secretary
10
Fifth Annual Report
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2011

Schedule 31.03.2011 31.03.2010
(Rs.) (Rs.)
INCOME
IT & Process Support Charges 43,086,983.00 43,473,606.00
(T.D.S Rs. 43,89,535.90 , Previous year Rs 4,906,384.57 )
Other Investment Income 7 4,872,303.23 5,356,904.53
TOTAL 47,959,286.23 48,830,510.53
EXPENDITURE
Administration & Other Expenses 8 18,626,230.95 28,562,706.13
Payments to and provision for employees 9 15,313,823.28 13,805,858.33
Depreciation (Refer Schedule 10: Point No.1d (ii)) 1,422,504.41 2,248,867.21
TOTAL 35,362,558.64 44,617,431.67
Net Profit before Prior-period Adjustments 12,596,727.59 4,213,078.86
Add/(Less) : Prior-period Adjustments 368,599.70 7,013,047.00
Net Profit before Tax 12,965,327.29 11,226,125.86
Less : Provision for Taxation
- Current Tax 2,700,000.00 2,063,000.00
- Deferred Tax (238630.37) (175527.02)
- Short Provision for Tax for earlier years 550,192.00 –
Net Profit after Tax 9,953,765.66 9,338,652.88
Add: Surplus brought forward from previous year 14,958,142.50 5,619,489.62
Net Profit carried to Balance Sheet 24,911,908.16 14,958,142.50
Appropriations :
- General Reserve – –
24,911,908.16 14,958,142.50
Basic /Dilutive Earning per share (Rs) (FV Rs.10) 2.10 1.97
(Refer Schedule 10:Point No. 2(h))
The Schedules referred to above form an integral part of the Profit & Loss Account
and notes to Accounts
Chairman Director
PRASAD V. PARANJAPE
Partner

11
Fifth Annual Report

As at 31.03.2011 As at 31.03.2010
Rs. Rs.

Authorised
1,00,00,000 Equity Shares(Previous year 1,00,00,000)
of Rs. 10 Each 100,000,000.00 100,000,000.00

47,50,000 Equity Shares(Previous year 47,50,000)
of Rs. 10 Each fully paid up 47,500,000.00 47,500,000.00
( of the above shares 30,87,500
( Previous Year : 30,87,500) are
held by the holding company-
and its nominees)
TOTAL 47,500,000.00 47,500,000.00
Balance in Profit & Loss Account

As per Last Balance Sheet 14,958,142.50 5,619,489.62
Add : Profit for the year 9,953,765.66 24,911,908.16 9,338,652.88 14,958,142.50
TOTAL 24,911,908.16 14,958,142.50
12
SCHEDULE 3: FIXED ASSETS (Refer Schedule 10: Point No.1 (d)(ii)) (Rs)

NO.
As on Additions Deductions As on Upto For the Deductions Total Upto As on As on
01.04.2010 during the during the 31.03.2011 31.03.2010 year during the 31.03.2011 31.03.2011 31.03.2010
year year year
1 CLEARING AND 8,646,403.38 – – 8,646,403.38 6,200,946.77 1,369,243.61 – 7,570,190.38 1,076,213.00 2,445,456.61

SETTLEMENT SYSTEMS
2 OFFICE EQUIPMENTS 19,437.30 – – 19,437.30 18,693.97 743.33 – 19,437.30 – 743.33
3 TELECOMMUNICATION 502,262.14 – – 502,262.14 449,744.67 52,517.47 – 502,262.14 – 52,517.47
SYSTEMS
TOTAL 9,168,102.82 – – 9,168,102.82 6,669,385.41 1,422,504.41 – 8,091,889.82 1,076,213.00 2,498,717.41

Previous year 9,229,078.91 262,107.15 323,083.24 9,168,102.82 4,630,743.56 2,248,867.21 210,225.36 6,669,385.41 2,498,717.41 –
SCHEDULE 4: INVESTMENTS (Refer Schedule 10: Point No.1(f)

Statement of Long Term investments at the end of the year is given below:
Scheme Name Maturity Date No. of Units Face Value(Rs.) As at 31.03.2011 As at 31.03.2010
(Rs.) (Rs.)
QUOTED
TAXABLE BONDS
6.85% India Infrastructure Finance Company Limited 20-Mar-14 75.00 7,500,000.00 7,614,266.00 –
(net of amortisation)
UNQUOTED
TAXABLE BONDS
5.50 % Rural Electrifiction Corporation Ltd. 31-Mar-11 24.00 240,000.00 – 240,000.00
GRAND TOTAL 7,614,266.00 240,000.00
Note 1: Aggregate Market Value of the Investments is Rs. 73,87,500.00 (Previous Year : Rs. Nil)
Note 2: Aggregate Cost of Unquoted Investments is Rs. Nil (Previous Year : Rs. 2,40,000)
13
Fifth Annual Report
Fifth Annual Report

As at 31.03.2011 As at 31.03.2010
Rs. Rs.

A. CURRENT ASSETS
1 Sundry Debtors
Over Six months – –
Other debts 3,852,268.13 3,852,268.13 3,862,849.85 3,862,849.85
2 Bank Balances
in Current Accounts 1,081,572.42 923,527.70
in Deposit Accounts 17,625,000.00 18,706,572.42 – 923,527.70
3. Other Current Assets
Investments in Mutual Funds 37,672,424.69 57,753,575.56
(Refer Schedule 10: Point No.2 (a) & (b))
4. Interest accrued
On Investments 477,154.00 9,904.04
On others 932,161.00 1,409,315.00 – 9,904.04
TOTAL : 61,640,580.24 62,549,857.15
B. LOANS & ADVANCES

Advance Recoverable in Cash or Kind 2,580,185.04 2,520,510.60
Advance Income tax paid including TDS 11,669,924.97 14,250,110.01 15,524,538.17 18,045,048.77
(Net of provisions of Rs.60,08,126)
(Previous Year : Rs 28,18,830)
TOTAL : 75,890,690.25 80,594,905.92

A. CURRENT LIABILITIES
Sundry Creditors (Refer Schedule 10: Point No.2 (d))
a) Total Outstanding dues of Micro Enterprises and Small
Enterprises – –
b) Others 11,183,172.13 11,183,172.13 19,774,730.50 19,774,730.50
Other Liabilities 815,619.00 691,650.00
11,998,791.13 20,466,380.50
B. PROVISIONS – –
TOTAL : 11,998,791.13 20,466,380.50
14
Fifth Annual Report

31.03.2011 31.03.2010
Rs. Rs.
SCHEDULE 7: OTHER INCOME

a) Income from Long term Investments
Interest on Taxfree Bond 936,010.16 _
Interest on Taxable Bond 13,199.96 13,200.00
Interest on Fixed Deposits 1,035,737.00 _
b) Income From Current Investments
Dividend on Current Investments 1,923,500.34 1,781,241.27
Profit on Sale/Redemption -Mutual Funds 10,599.77 3,562,463.26
c) Interest on Income Tax Refund 953,256.00 –
TOTAL 4,872,303.23 5,356,904.53
SCHEDULE 8: ADMINISTRATION & OTHER EXPENSES

Space & Infrastructure Usage Charges 5,673,600.00 14,538,420.00
Software Usage Charges 5,000,000.00 5,000,000.00
Insurance 20,061.00 16,068.00
Printing & Stationery 202,527.90 291,115.28
Consumables 911,312.99 625,736.37
Travelling & Conveyance expenses 1,282,980.12 1,229,096.88
Auditors' Remuneration
- Audit fees 50,000.00 50,000.00
- Reimbursement of expenses – 520.00
Professional fees 1,787,043.49 2,649,318.65
Repairs & Maintenance :
- On Building 57,131.59 755,602.17
- Others – 1,955.55
Electricity expenses 868,494.46 1,223,493.99
Amortisation of premium on Govt/ Debt Securities 35,734.00 –
Other expenses 2,737,345.40 2,181,379.24
TOTAL 18,626,230.95 28,562,706.13
SCHEDULE 9: PAYMENTS TO AND PROVISION FOR EMPLOYEES

(Refer Schedule 10: Point No.2 (e))
Contribution to PF and other funds 497,057.00 415,514.20
Employee Welfare Expenses 596,762.78 500,086.69
TOTAL 15,313,823.28 13,805,858.33
15
Fifth Annual Report
SCHEDULE 10 : SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS
1. Significant Accounting Policies

a) Basis of Accounting.
The financial statements have been prepared to comply in all material respects with the Accounting
Standards notified by Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant
provisions of the Companies Act, 1956. The financial statements have been prepared under the
historical cost convention on an accrual basis except in case of assets for which provision for
impairment is made and revaluation is carried out. The accounting policies have been consistently
applied by the Company and are consistent with those used in the previous year.
b) Use of Estimates :
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities at the date of the financial statements and the
results of operations during the reporting period. Although these estimates are based upon
management's best knowledge of current events and actions, actual results could differ from these
estimates.
c) Revenue Recognition.
(i) Revenue from IT & Process support charges are recognised on accrual basis when services
are rendered and there is reasonable certainty of ultimate realization.
(ii ) Dividends on Investments are recognized when a right to receive the same is established
(iii) Interest is recognized on time proportionate basis taking into consideration the amount
outstanding and the rate applicable.
d) Fixed Assets
(i) Fixed assets are stated at cost (or revalued amounts, as the case may be), less accumulated
depreciation and impairment losses if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for its intended use.
(ii) Depreciation is provided on the "Straight line method" based on estimated useful life of
assets at the following rates which are higher than those prescribed in Schedule XIV (Inserted
by the Companies (Amendment) Act, 1988 and Notification GSR No. 756E dated 16th
December, 1993) to the Companies Act, 1956. Depreciation on additions/deletions is provided
on pro-rata basis from the date of acquisition/ up to the date of deletion :
Office Equipment 25.00%
Clearing and Settlement Systems 25.00 %
Telecommunications Systems 25.00 %
e) Impairment of Assets
The carrying amount of assets are reviewed at each balance sheet date if there is an indication of
Impairment based on internal & external factors. An asset is treated as impaired when the carrying
cost of the asset exceeds the recoverable amount on the reporting date, an impairment loss if any is
charged to Profit & Loss Account in the year in which the asset is identified as impaired .
16
Fifth Annual Report
f) Investments
(i) Long term investments are considered as held till maturity and are valued at cost. Provision is
made for diminution in the value of investment, if any, other than temporary in nature.
(ii) Premium/ Discount at the time of acquisition of Government / Debt securities is amortised /
recognised over the residual period of its maturity.
(iii) Current investments are valued at cost or fair value whichever is lower.
g) Income Tax
Income tax expense for the year, comprising current tax and deferred tax is included in determining
the net profit for the year.
A provision is made for the current tax based on tax liability computed in accordance with relevant
tax rates and tax laws. Deferred tax assets are recognised only to the extent that there is reasonable
certainty that sufficient future taxable income will be available against which such deferred tax
assets can be realised. In situations where the company has unabsorbed depreciation or carry forward
tax losses, all deferred tax assets are recognised only if there is virtual certainty supported by
convincing evidence that they can be realised against future taxable profits. At each balance sheet
date the Company re-assesses unrecognized deferred tax assets. It recognises unrecognised deferred
tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be
that sufficient future taxable income will be available against which such deferred tax assets can be
realised.
The carrying amount of deferred tax assets are reviewed at each balance sheet date. The company
writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably
certain or virtually certain, as the case may be, that sufficient future taxable income will be available
against which deferred tax asset can be realised. Any such write-down is reversed to the extent that
it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable
income will be available.
h) Provisions , contingent liabilities & contingent assets
Provisions involving substantial degree of estimations in measurement are recognised when there is
present obligation as result of past events and it is probable that there will be outflow of resources.
Provisions are not discounted to its present value and are determined based on best estimate required
to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and
adjusted to reflect the current best estimates.
Contingent liabilities are not recognised but are disclosed while, contingent assets neither are
recognised nor disclosed in financial statements .
i) Earning Per Share
Basic and diluted earning per share is computed by dividing the net profit attributable to equity
shareholders for the year by weighted average number of equity shares outstanding during the year.
j) Cash and cash equivalents
Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in
hand and short-term investments with an original maturity of three months or less.
17
Fifth Annual Report
2. Notes to Accounts :
a) Statement of Current Investments at the end of the year is given below:
As at 31.03.2011 As at 31.03.2010
Number of (Rs.) Number of (Rs.)
Units Units
MUTUAL FUNDS
Principal Cash Mgmt Fund LO-
I P - Dly Div – – 1,431,348.85 14,316,637.44
Birla Sun Life Savings Fund -
Ret- Dly Dividend – – 564,792.57 5,651,766.25
Canara Robeco Treasury
Advantage Fund - Ret -
Daily Dividend – – 327,377.72 4,061,808.08
DWS Ultra Short-Term Fund -
Dly Dividend – – 596,732.77 5,980,157.43
Templeton India Ultra Short
Bond Fund - Retail -
Wkly Dividend – – 302,878.26 3,030,172.84
ICICI Prudential Ultra Short
Term Plan - Sup Prem -
Wkly Dividend 328,004.57 3,294,228.81 299,397.84 3,004,397.79
IDFC Money Manager -
Treasury Plan - Plan A -
Dly Dividend 390,033.03 3,927,593.61 371,489.55 3,740,862.66
JM Money Manager Fund -
Super Plus Plan -
Daily Dividend – – 258,476.68 2,586,136.76
JP Morgan India Treasury
Fund - Super IP - Daily Dividend – – 352,049.67 3,523,629.91
UTI Treasury Advantage Fund -
IP - Dly Dividend 12.505.94 12,508,611.09 11,855.47 11,858,006.40
JPMorgan India Liquid Fund -
Super IP - Daily Dividend 361,818.95 3,621,047.82 – –
Kotak Floater - ST -
Daily Dividend 317,463.41 3,211,523.38 – –
SBI Magnum Insta Cash -
Daily Dividend 205,670.29 3,445,039.28 – –
Sundaram Money Fund -
IP - Dly Dividend 759,202.87 7,664,380.70 – –
TOTAL 37,672,424.69 57,753,575.56
18
Fifth Annual Report
b) Statement of investments purchased and sold during the year at cost given below:
Scheme Name Number of units Cost (Rs.)
Birla Sun Life Cash Plus Retail Plan -
Daily Dividend- Reinvestment 225,054.96 3,684,014.66
Birla Sun Life Savings Fund - Retail -
Daily Dividend -Reinvestment 7,388.57 73,935.91
Canara Robeco Treasury Advantage
Retail Daily Dividend Fund 9,511.02 118,004.17
Dws Ultra Short Term Fund - Regular
Daily Dividend Plan 2,292.72 22,976.54
ICICI Prudential Interval Fund III -
Quarterly Interval Plan - Inst Dividend 365,548.43 3,655,484.34
ICICI Prudential Liquid Super Institutional
Plan - Div - Daily 70,992.94 7,100,881.07
ICICI Prudential Ultra Short Term Plan
Super Premium Weekly Dividend 38,455.83 386,389.47
IDBI Ultra Short Term Fund - Daily Dividend -
Reinvestment 261,271.66 2,612,716.58
JM Money Manager Fund Super Plus Plan -
Daily Dividend 3,611.16 36,130.79
JPMorgan India Treasury Fund - Super Inst Daily
Div Plan - Reinvest 5,210.11 52,147.51
Principal Cash Mgmt Fund - Liquid Option -
Inst Plan - Daily Dividend Reinvest 9,935.87 99,380.53
Tata Floater Fund - Daily Dividend 355,878.85 3,571,457.75
Tata Liquid Fund - Super High Investment Plan -
Daily Dividend 3,140.82 3,500,505.28
Templeton India Ultra Short Bond Fund Retail Plan -
Weekly Dividend Reinvestment 4,023.47 40,284.15
Total 24,954,308.75
c) In the opinion of the Board, current assets, loans and advances are approximately of the value
d) Sundry creditors include amounts of Rs. NIL (Previous Year :Rs Nil ) including interest of Rs. NIL,
(Previous Year Rs. NIL) payable to Micro, Small & Medium Enterprises. Total outstanding dues to
Micro, Small & Medium Enterprises have been determined to the extent such parties have been
identified on the basis of information available with the Company.
e) Payments to and provision for employees represents the amount reimbursed by the company to The
National Stock Exchange of India Limited (NSEIL) in respect of employees on deputation to the
company on a rotational basis. These includes charges for all retirement benefits and other long term
employee benefits as per the requirements of Accounting Standard 15-" Employee Benefits" issued
by the Institute of Chartered Accountants of India. Necessary provisions are carried by NSEIL.
19
Fifth Annual Report
f) In the opinion of the management, as the Company's operations comprise of only facilitating Clearing
& Settlement in commodity transactions and the activities incidental thereto within India, the
disclosures required in terms of Accounting Standard 17 - "Segment Reporting" issued by the Institute
of Chartered Accountants of India are not applicable.
g) In compliance with Accounting Standard 18 "Related Party Disclosures" issued by the Institute of
Chartered Accountants of India, the required disclosures are given in the table below:
i) Name of related parties and relationship:
No.
1 National Stock Exchange of India Limited (NSEIL ) Holding Company
2 National Securities Clearing Corporation Limited (NSCCL) Fellow Subsidiary
4 Dot Ex International Limited Fellow Subsidiary
6 NSE .IT (UK) Limited Fellow Subsidiary
7 NSE .IT (US) Inc. Fellow Subsidiary
8 India Index Services & Products Ltd. Fellow Subsidiary
9 Power Exchange of India Limited Fellow Subsidiary
ii) Details of transactions (including Service tax wherever levied) with related parties
are as follows:
Related Party 31/03/2011 31/03/2010
(Rs.) (Rs.)
National Stock • Reimbursement paid for expenses on staff on
Exchange of deputation inclusive of Service Tax 1,63,27,946.50 77,81,285.44
India Ltd. • Reimbursement paid for other expenses incurred
inclusive of Service Tax 80,71,749.70 88,76,522.32
• Space & Infrastructure Usage Charges paid
on predetermined basis inclusive of Service Tax 62,57,984.00 1,60,35,878.00
• Closing Balance (Credit)/Debit (1,06,62,460.08) (1,87,07,236.45)
National • Software usage charges paid inclusive of
Securities Service Tax 55,15,000.00 55,15,000.00
Clearing • Closing Balance (Credit)/Debit – –
Corporation
Limited
h) In accordance with Accounting Standard - 20 "Earning per Share" issued by the Institute of Chartered
31/03/2011 31/03/2010
Net Profit attributable to Equity Shareholders (Rs.) 99,53,765.66 93,38,652.88
Weighted Average number of equity shares
outstanding at the end of the period (No.) 47,50,000.00 47,50,000.00
Basic/Diluted earning per share of Rs.10/- each (in Rs.) 2.10 1.97
20
Fifth Annual Report
i) In accordance with the provisions of Accounting Standard-22 relating to "Accounting for taxes on
income" , the breakup of deferred tax Liability/(Asset) is shown below:
Deferred Tax Liability/(Asset) for year ended 31st March , 2011

Particulars Opening Balance as at Closing Balance as at
31st March 2010 (Rs) 31st March 2011 (Rs)
Fixed Assets 4,61,572.85 1,70,469.96
Unabsorbed losses – –
Preliminary expenses (52,472.53) –
Total 4,09,100.32 1,70,469.96
j) Administration & other expenses include expenses allocated by the holding company, The National
Stock Exchange of India Limited (NSEIL) on equitable basis.
k) Previous years' figures are regrouped, reclassified and rearranged wherever necessary to make them
comparable with current year figures.
l) Information with regard to other matters specified in Clauses 3, 4C & 4D of Part II to Schedule VI
of the Companies Act, 1956 are either nil or not applicable to the company.
Chairman Director
PRASAD V. PARANJAPE
Partner

21
Fifth Annual Report
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2011
2010-2011 2009-2010
(Rs.) (Rs.)
Net Profit before tax 12,965,327.29 11,226,125.86

Depreciation for current year 1,422,504.41 2,248,867.21
Amortisation of premium on Govt/ Debt Securities 35,734.00 –
1,458,238.41 2,248,867.21
Less: Adjustments for :
Dividend on Investment (1,923,500.34) (1,781,241.27)
Profit on sale / redemption of Investments (10,599.77) (3,562,463.26)
Interest on Fixed Deposits /Taxfree Bonds/Taxable Bonds (1,984,947.12) (13,200.00)
(Profit)/Loss on sale of fixed assets – 72,857.88
Interest on Income Tax Refund (953,256.00) –
(4,872,303.23) (5,284,046.65)
Operating Profit Before Working Capital Changes 9,551,262.47 8,190,946.42
Adjustments for :
(Increase)/ Decrease in Sundry Debtors 10,581.72 617,866.16
( Increase )/ Decrease in Loans & Advances (59,674.44) (281,513.10)
Increase /( Decrease ) in Current Liabilities & Provisions (8,467,589.37) 79,075.23
Cash Generated from Operating activities 1,034,580.38 8,606,374.71

Interest on Income Tax Refund 953,256.00 –
Direct taxes paid (Net of Refunds) 604,421.20 (5,453,637.71)
Net Cash from (used in) Operating Activities - Total (A) 2,592,257.58 3,152,737.00

Purchase of Fixed Assets/Capital Work in progress – (262,107.15)
Sale of Fixed Assets – 40,000.00
Interest on Fixed Deposits/Taxfree Bonds/Taxable Bonds 1,984,947.12 13,200.00
(Increase)/Decrease in Investment 11,282,339.68 (4,461,031.32)
Investment in Fixed Deposits (17,625,000.00)
Net cash from (used in) Investing activities - Total (B) (2,434,212.86) (2,888,697.20)
22
Fifth Annual Report
2010-2011 2009-2010
(Rs.) (Rs.)
C) CASH FLOW FROM FINANCING ACTIVITIES
Net cash from (used in) financing activities - Total (C ) – –

Net Increase/(Decrease) in Cash & Cash equivalents (A+B+C) 158,044.72 264,039.80
Cash and Cash Equivalents at the beginning of the year 923,527.70 659,487.90
(In Current A/c Rs 9,23,527.70 , Previous year Rs 6,59,487.90)
Cash and Cash Equivalents at the end of the year 1,081,572.42 923,527.70
(In Current A/c Rs 10,81,572.42 , Previous year Rs 9,23,527.70)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENT 158,044.72 264,039.80

1 Cash and Cash equivalent represent bank balances and balances in fixed deposit accounts.
2 The above Cash Flow Statement has been prepared under the " Indirect Method" as set out in Accounting
Standard-3 on Cash Flow Statements issued by the Institute of Chartered Accountants of India.
3 Cash and Bank balances as per Balance Sheet 18,706,572.42
Less: Investment in Fixed Deposits maturing over three months 17,625,000.00
Cash and Cash Equivalents at the end of the year 1,081,572.42
Chairman Director
PRASAD V. PARANJAPE
Partner

23
Fifth Annual Report

(Information pursuant to Notification No. GSR No. 388(E) [F. No. 3/24/94 - CLV] dated 15-5-95,
issued by The Department of Company Affairs, Ministry of Law, Justice and Company Affairs)

Date Month Year
II Capital raised during the year (Amount in Rs. thousands)

N I L N I L

* * * * * * * * * N I L
III Position of Mobilisation and Deployment of Funds (Amount in Rs. thousands)

* * * * 7 2 5 8 2 * * * * 7 2 5 8 2
Sources of Funds
* * * * 4 7 5 0 0 * * * * 2 4 9 1 2

N I L N I L

* * * * * * 1 7 0
* * * * * 1 0 7 6 * * * * * 7 6 1 4

* * * * 6 3 8 9 2 * * * * * * N I L
24
Fifth Annual Report
IV Performance of Company (Amount in Rs. thousands)

Turnover/Total Income Total Expenditure
* * * * 4 8 3 2 8 * * * * 3 5 3 6 3

* * * * 1 2 9 6 5 * * * * * 9 9 5 4

* * * * 0 2 . 1 0 - -
Item Code No. N A

(ITC Code)
Product F A C I L I T A T I N G C L E A R I N
Description G A N D S E T T L E M E N T O F
C O M M O D I T I E S

Chairman Director
Place : Mumbai R. RAMASESHAN SNEHA HUDDAR

25

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Y Y

NATIONAL STOCK EXCHANGE

NINETEENTH ANNUAL REPORT

1. OPERATIONS AND MAJOR DEVELOPMENTS DURING THE YEAR

1.1.1 Stock Futures

1.1.3 Index Futures

1.2 Global rankings-Capital Market

1.3 Membership at NSE

1.4 Wholesale Debt Market (WDM) segment

Turnover in WDM segment for FY 2010-11 is presented in Figure 2 as under:-

Avgdaily Value (`.Cr.)

Particulars 2010-11 2009-10

1.4.1 Securities Profile

Table 7 and Figure 3 represent security-wise distribution of turnover.

1.4.2 Issuance in WDM

1.4.3 Market Capitalisation

Figure 4: Market Capitalisation of WDM segment

1.4.4 Corporate Bond Market

Turnover of Corporate Bond is presented in Table 10 and Figure 5

Figure 5: Corporate Bond Turnover for FY 2010-11

Avgdaily Value (`.Cr.)

1.5.1 Index Movement:-

1.5.2 Market Capitalisation

Figure 8 - Market Capitalisation during year 2010-11

1.5.3 Distribution of Turnover

1.5.4 Listing: Initiatives taken during the financial year 2010-11

1.5.5 New Developments during the year

June 2010 Introduction of Indian Depository Receipt

July 2010 Real-time dissemination of India VIX

October 2010 Launch of Call Auction in Pre - Open Session

1.6 FUTURES AND OPTIONS SEGMENT

Note: Muhurat trading on October 17, 2009

1.6.3 (a) Basic Statistics of the F&O Segment (Table 13):

1.6.6. Product-wise Basic Statistics (Table 15):

1.6.7 TOP 5 TRADED SYMBOLS

Options (Figure 14):

1.6.8 New Developments during the year

1.7 Currency Derivatives segment

1.8 Surveillance System

3. NSE's KNOWLEDGE INITIATIVES

4. KNOWLEDGE MANAGEMENT OR REPOSITORY CREATION INITIATIVE

5. FINANCIAL RESULTS AND APPROPRIATION OF PROFITS

Mutual Fund Service System (MFSS)

7.2 NSE.IT Limited (NSE.IT)

7.3 DotEx International Limited (DotEx)

7.4 India Index Services and Products Limited (IISL)

7.5 NSE Infotech Services Limited (NSETECH)

7.6 National Commodity Clearing Limited

8. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES

10. MANAGEMENT DISCUSSION AND ANALYSIS REPORT

11. CORPORATE SOCIAL RESPONSIBILITY (CSR) INITIATIVES

13. DIRECTORS' RESPONSIBILITY STATEMENT

14. AUDIT COMMITTEE

Name Number of meetings Number of meetings

16. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND

For and on behalf of the Board of Directors

ANNEXURE TO DIRECTORS’ REPORT

REPORT ON CORPORATE GOVERNANCE

Name of the Director Category No. of Directorships / Chairmanships and

• Review of market surveillance.

• Compliance with legal requirements concerning financial statements.

Name Number of meetings held Number of meetings attendance

(2) Compensation Committee