a.  Basis of Preparation of Financial Statements:
 
 The financial statements of the company have been prepared and
 presented under historical cost convention on the accrual basis of
 accounting and materially comply with the Accounting Standards issued
 by the Institute of Chartered Accountants of India (ICAI) and the
 relevant provisions of the Companies Act, 1956, to the extent
 applicable.
 
 b. Use of Estimates:
 
 The preparation of Financial Statements in conformity with generally
 accepted Accounting principles (GAAP) requires management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities and disclosure of contingent liabilities on the date of
 financial statements. Actual results could differ from those estimates.
 Any revision to accounting estimates is recognized prospectively in
 current and future periods.
 
 c.  Revenue Recognition:
 
 Revenue from software services are recognized as related services are
 performed.
 
 d.  Fixed Assets:
 
 Fixed assets are carried at cost of acquisition less depreciation. Cost
 of acquisition of fixed assets is inclusive of all incidental expenses
 relating to the cost of acquisition and the cost of installation /
 erection as applicable.
 
 e.  Depreciation:
 
 Depreciation is provided on fixed assets on the written down value
 (WDV) method. The rates of depreciation prescribed in Schedule XIV to
 the Companies Act 1956 are considered as minimum rates.
 
 f.  Employee Benefits:
 
 The company has not registered with PF & ESI Authorities and both the
 Employer Contribution and Employee Contributions were not deposited as
 per the relevant Acts, during the period under audit
 
 g.  Transfer Pricing:
 
 In the Current year, the Company has not entered into any international
 transaction which attracts the provisions of Sec.92 - 92 F of the
 Income Tax Act, 1961
 
 h. Quantitative Information:
 
 Since the company does not deal in Inventory, no quantitative details
 are being furnished.  i.  Accounting for Taxes on Income:
 
 Income-tax expense comprises current year tax (i.e. Minimum Alternate
 Tax (MAT) for the period determined in accordance with Income Tax Act,
 1962). Deferred tax resulting from timing differences between book
 profits and tax profits is accounted for under the liability method, at
 the current rate of tax, only to the extent the timing differences are
 expected to crystallize.
 
 j.  Segment Reporting:
 
 Although the company has reportable business and geographical segments,
 segmentation as required by AS-17 Segment Reporting'' issued by the
 Institute of Chartered Accountants of India, has not been complied
 with. This is mainly due to the fact that, products and services
 included in a single business segment is similar with respect to
 majority of factors.
 
 k.  Investments.
 
 Investments in subsidiaries are accounted as per accounting standard 13
 issued by the Institute of Chartered Accountants of India. Investments
 are stated at cost. No provision is made for diminution in value of
 investments as they are long term and strategic in nature.
 
 1.  Related Party Disclosures 1.  Relationships
 
 Category - I - Major shareholders in the company:
 
 - Erstwhile Promoters-20.61%
 
 - Mr. Suresh Venkatachari -64.12%
 
 - Mr.R.S.Ramani-7.12%
 
 Category - II - Subsidiaries and associates of the company.
 
 - Mentor minds solutions and Services Inc (USA) -100% subsidiary
 company
 
 acquired during the preceding financial year.
 
 - Mentor minds solutions and Services Pvt Ltd-100% subsidiary company
 
 acquired during the preceding financial year.
 
 - 8k miles Software Services Inc (USA) -100% subsidiary company
 acquired
 
 during the preceding financial year.
 
 - 8k miles Software Services (FZE) (UAE) -100% subsidiary company
 acquired
 
 during the preceding financial year.
 
 Category - III - Other parties where common control exists.
 
 - Kaveri (India) Ltd, Regd. Office: 1-7-241/11/D.S.D.Road,
 Secunderabad-3.
 
 - Golconda Engg.Entp.Ltd, Regd.Office: 1-7-241/
 11/D.S.D.Road,Secunderabad-3
 
 - Surana Securities Ltd, Regd.Office: 1-7-241/11/D.S.D.Road,
 Secunderabad-3.
 
 - P.M.Telelinks Ltd (Formerly Surana Strips ltd), Regd.Office: 1-7-
 
 241/11/D.S.D.Road, Secunderabad-3.
 
 - Surana Steels Ltd, Regd.Office: 1-7-241/11/D.S.D.Road,
 Secunderabad-3.
 
 - P.M.Telecom, 1-7-241/11/D.S.D.Road, Secunderabad-3.
 
 - Surana Udyog Ltd, 7th floor, 1-7-241/11/D.S.D.Road, Secunderabad-3.
 
 - 8k Miles Web Services Private Limited - No.7, 3rd floor, Ganapathy
 colony 3 rd
 
 street, Teynampet, Chennai - 600018.
 
 - 8k Miles Inc(USA).  - 3525, Quaker bridge road, Suite 1600, Hamilton,
 NJ
 
 08619, USA
 
 - Vinoosh foods and Entertainment private Limited - No.7, 3rd floor,
 Ganapathy
 
 colony 3rd street, Teynampet, Chennai - 600018.
 
 Category - IV - Key Managerial Personnel:
 
 - Mr. G.P.Surana, Director, 19 P & T Colony, Vikrampuri Colony
 Secunderabad.
 
 - Mr. Suresh Venkatachari, Director, Apt Blk 223 Yishun, Street 21,
 #06-475,,
 
 Singapore, 760223, , Singapore.
 
 - Mr.R.S.Ramani, Director, No 62 Vellala Street,Purasawalkam, Chennai -
 
 600084,
 
 - Mr. M.V.Bhaskar, Director, Tl Venkatesh Nagar, II Street, 1st
 Extension,
 
 Virugambakkam, Chennai -600092.
 
 - Mr. Ravi Surana, 19 P & T Colony, Vikrampuri Colony Secunderabad.
 
 
 -  Ms.T.P.Saira, Director, Old No. 15 New No.6 II Cresent 
 Park Street, Gandhi nagar, Adyar, Chennai - 600020.
 
 - Ms.Padmini Ravichandran - 15, 6th Cross Street, Karpagam Gardens,
 Adyar, Chennai - 600020.
 
 - Mr.V.Srinivasan - 56, Thambiah Road, West Mambalam,Chennai - 600033.
 
 Category - V - Relatives of Key Managerial Personnel:
 
 - Sri G.P.Surana, Father of Ravi Surana 19 P & T Colony, Secunderabad.
 
 2.  Transactions with related parties:-
 
 Category - I - Major shareholders in the company:
 
 Loan Received from Directors:
 
 - Mr.Suresh Venkatachari : Rs.22,65,747/-.
 
 - Mr.R.S.Ramani : Rs.27,531/-.
 
 Category - II - Subsidiaries and associates of the company.
 
 8k miles Software Services Inc(USA) :
 
 Amount Invoiced: US$ 52400 (Rs.2613644)
 
 Amount Reed against invoices raised: US$ 57147.17(Rs.2588560)
 
 Amount invested in share capital: US$ 1000 (Rs.45220).
 
 8k miles Software Services FZE (UAE):
 
 Amount invested in share capital: AED150000 (Rs.18, 40,500).
 
 Mentor Minds Solutions Services Inc:
 
 Amount Invoiced: US$ 97300 (Rs.49,10,256)
 
 Amount Received against invoices raised: US$ 49000 (Rs.24,68,775)
 
 Amount invested in share capital: Rs.l 1,50,11,500.
 
 Mentorminds solutions and Services Pvt Ltd:
 
 Amount invested in share capital: Rs.88,07,505.  Advances made:
 Rs.54,10,695.
 
 Category - III - Other parties where common control exists.  8k Miles
 Software Services Singapore
 
 Amount Invoiced: US$ 15000 (Rs.8040600) Amount Received against
 invoices raised: Rs.768548.
 
 Vinoosh foods USA
 
 Amount Invoiced: US$ 15000 (Rs.697050)
 
 Amount Received against invoices raised: Rs.783304.
 
 8k Miles Web Services Private Limited
 
 Consideration payable for business purchased - Rs.l,60,00,000/- Loan
 repayable: Rs.45,57419.
 
 
 8k Miles Inc(USA)
 
 Amount Invoiced: Nil
 
 Amount Received against invoices raised: US950.78 (Rs.29,45,873).
 
 Consideration payable for business purchased - Rs.7,40,00,000/-
 
 m. Interest on loans:
 
 The management has decided not to charge any interest on loans advanced
 to sist concerns and also not to pay interest on loans taken from
 sister concerns and companj directors.
 
 n. Cash flow statement
 
 The cash flows are reported using the indirect method, whereby net
 profit after tax adjusted for the effects of transactions of noncash
 nature and any deferrals or accruals past or future cash receipts or
 payments. The cash flows from operating, investing ai financing
 activities of the company are segregated.
 
 p.  Details of Capacity and Production
 
 The company is into software development, which cannot be expressed in
 any generic un As the company is not into manufacture / production of
 any product, data relating capacity and production is not relevant and
 hence not provided.
 
 
 q.  Debtors & Creditors
 
 Balances of Debtors and Creditors are yet to be confirmed r.  Previous
 year figures:
 
 Figures for the prior year have been regrouped, recast or rearranged to
 conform to the current year''s classification.