1- Basis of Preparation
 
 The Financial Statements have been prepared on the historical cost
 convention. These statements have been prepared in accordance with the
 generally accepted accounting principles and the applicable Mandatory
 Accounting Standards and relevant requirements of The Companies Act.
 1956 (''the Act1). The accounting  policies have been consistently
 applied by the Company. The preparation requited adoption of estimates
 and assumptions that can affect the reported amounts of revenue and
 expenditure and the assets and liabilities as well as the disclosure of
 contingent liabilities. Differences between the actual results and
 estimates are recognised in the year in which they become known or
 materialises.
 
 During the year, the company has sold'' written off the entire fixed
 assets. The management is of the opinion that the accounting assumption
 of going concerns impaired. Hence necessary adjustments have been made
 to the values of the assets and liabilities of the company as at the
 year end.
 
 2. Revenue Recognition
 
 Income from consultancy are accounted on accrual basis.
 
 3 Investment Subsidy Investment Subsidy received from Government of
 Kerala is treated as Capital Reserve.
 
 4 Leases
 
 Leases where the lesser effectively retains substantially all the risks
 and benefits of ownership of the leased term, are classified as
 operating leases. Operating lease payments are recognised as an expense
 in the Profit & Loss account on a straight-line basis over the lease
 term.
 
 5 Taxation
 
 Tax expense comprises of current and deferred tax. Current income-tax
 is measured at the amount expected to be paid to the tax authorities in
 accordance with the Indian Income-tax Act. Deferred income taxes
 reflects the impact of current year timing differences between taxable
 income and accounting income for the year and reversal of timing
 differences of earlier years.
 
 6 Retirement Benefits
 
 a] In respect of gratuity, the company''s contribution to the Group
 Insurance Scheme of Life Insurance Corporation of India are charged
 against the revenue.
 
 b] Contribution to Provident Fund and other recognised funds is charged
 to Profit & Loss account.