1.1 BASIS OF ACCOUNTING
 
 The Company maintains its accounts on accrual basis following the
 historical cost convention in accordance with generally accepted
 accounting principles (GAAP) in compliance with the provisions of
 Companies Act, 1956 and the Accounting Standards as specified in the
 Companies (Accounting Standard) Rules 2006 notified by the Central
 Government of India.
 
 1.2 USE OF ESTIMATES
 
 The preparation of financial statements in conformity with GAAP
 requires that the management of the Company makes estimates and
 assumptions that affect the reported amounts of income and expenses of
 the period, the reported balances of assets and liabilities and the
 disclosures relating to contingent liabilities as of the date of the
 financial statements. Difference, if any, between the actual results
 and estimates is recognised in the period in which the results are
 known.
 
 1.3 REVENUE RECOGNITION
 
 Revenue is recognized based on the nature of activity when
 consideration can be reasonably measured and there exists reasonable
 certainty of its recovery.
 
 - Revenue from services rendered is recognised as the service is
 performed based on agreements/ arrangement with concerned parties and
 revenue from end of the last billing to the balance sheet date is
 recognised as unbilled revenue.
 
 - Interest income is recognized on time proportion basis taking into
 account the amount outstanding and applicable interest rates.
 
 - Other items of income are accounted as and when the right to receive
 arises.
 
 1.4 EMPLOYEE BENEFITS
 
 1.4.1 All employee benefits falling due within twelve months of
 rendering the services are classified as short term employee benefits.
 Benefits like salaries, wages, short term compensated absences etc and
 the expected cost of bonus, ex-gratia are recognized in the period in
 which the employee renders the related service
 
 1.4.2 Retirement benefits in the form of Provident Fund and Employees
 State Insurance Scheme are defined contribution schemes and the
 contributions are charged to the Profit and Loss Account of the period
 when the contributions to the respective funds are due. There are no
 other obligations other than the contribution payable to the respective
 funds.
 
 1.4.3 Gratuity liability is a defined benefit obligation and is
 provided for on the basis of an actuarial valuation on projected unit
 credit method made at the end of each financial period.
 
 1.4.4 Long term compensated absences are provided for based on
 actuarial valuation. The actuarial valuation is done as per projected
 unit credit method.
 
 1.4.5 Actuarial gains/losses are recognized immediately in the Profit
 and Loss Account.
 
 1.5 FIXED ASSETS
 
 Fixed assets are stated at their cost net of tax/duty credits availed,
 if any, less accumulated depreciation and accumulated amortizations.
 Costs comprise the purchase price and any attributable costs of
 bringing the assets to its working condition, for its intended use.
 
 1.6 DEPRECIATION AND AMORTISATION
 
 Depreciation on tangible assets is provided on Straight line method at
 the rates prescribed under Schedule XIV to the Companies Act, 1956.
 Intangible Assets are amortised over their useful life not exceeding
 ten years.
 
 1.7 LEASES
 
 Assets acquired on lease where a significant portion of the risks and
 rewards of ownership are retained by the lessor are classified as
 Operating leases. Lease rentals are charged to the Profit and Loss
 Account on accrual basis.
 
 1.8 IMPAIRMENT OF ASSETS
 
 An asset is treated as impaired when the carrying cost of the asset
 exceeds its recoverable value. An impairment loss is charged to Profit
 & Loss Account in the year in which the asset is impaired and the
 impairment loss recognized in prior accounting periods is reversed if
 there has been a change in the estimate of recoverable amount. For the
 purpose of assessing impairment, assets are grouped at the lowest level
 of cash generating units.
 
 1.9 INVESTMENTS
 
 Current investments are carried at lower of cost or fair value.
 Determination of carrying amount of such investments is done on the
 basis of specific identification.
 
 1.10 BORROWING COSTS
 
 Borrowing costs that are attributable to the acquisition, construction
 or production of a qualifying asset are capitalized as part of the cost
 of such asset till such time as the asset is ready for its intended use
 or sale.
 
 All other borrowing costs are recognized as an expense in the period in
 which they are incurred
 
 1.11 FOREIGN CURRENCY TRANSACTIONS
 
 Foreign currency transactions are recorded on initial recognition in
 the reporting currency using the exchange rate at the date of the
 transaction. At each Balance sheet date, foreign currency monetary
 items are reported using the closing rate. Exchange differences are
 recognized as income or expense in the period in which they arise.
 
 1.12 TAXES ON INCOME
 
 Current Taxes
 
 Provision for current income tax is recognized in accordance with the
 provisions of Indian Income Tax Act, 1961 and is made annually based on
 the tax liability after taking credit for tax allowances and
 exemptions.
 
 Deferred Taxes
 
 Deferred tax assets resulting from timing difference between taxable
 and accounting income is accounted for using the tax rates and laws
 that are enacted or substantively enacted as on the balance sheet date.
 Deferred tax asset is recognized and carried forward only to the extent
 there is a virtual certainty that the asset will be realized in future.
 
 1.13 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
 
 The Company recognizes a provision when there is a present obligation
 as a result of past event that probably requires an outflow of
 resources and a reliable estimate can be made of the amount of the
 obligation. A disclosure for a contingent liability is made when there
 is a possible obligation or a present obligation that may, but probably
 will not, require an outflow of resources. Where there is a possible
 obligation or a present obligation that the likelihood of outflow of
 resources is remote, no provision or disclosure is made.