1.  BASIS OF PREPARATION OF FINANCIAL STATEMENTS
 
 The financial statements have been prepared under the historical cost
 convention, on the accrual basis of accounting and comply with the
 mandatory accounting standards and statements issued by the Institute
 of Chartered Accountants of India (ICAI) and the provisions of the
 Companies Act. 1956. to the extent applicable.
 
 2.  REVENUE RECOGNITION
 
 Revenue from software development on time-and-material basis is
 recognized based on performance of related services. For fixed price
 contracts, revenue is recognized on the percentage of completion basis.
 Revenue from the sale of software products developed is recognized when
 the sale has been completed with the passing of title. However from last
 two- three years company is not doing any business.
 
 3.  INVESTMENT
 
 The investments are stated at cost.
 
 4.  FIXED ASSETS AND DEPRECIATION
 
 The company had suspended all its services earlier and major portion of
 the fixed assets have been sold , hence no depreciation has been
 charged. Fixed assets have been sold off at the net realizable value.
 
 5.  RETIREMENT AND OTHER BENEFITS
 
 Provident fund
 
 All eligible employees receive benefits from a provident fund, which is
 a defined contribution plan. Both the employee and the Company make
 monthly contributions to the fund, which is equal to a specified
 percentage of the covered employee''s basic salary. The Company has no
 further obligations under this plan as because services of employees
 have been terminated earlier.
 
 Gratuity
 
 In accordance with the Payment of Gratuity Act, 1972, the Company
 provides for gratuity, a defined benefit retirement plan covering
 eligible employees. The gratuity plan provides a lump sum payment to
 the vested employees at retirement, death, incapacitation or
 termination of employment, of an amount based on the respective
 employee''s basic salary and the year of employment with the Company.
 Provision for gratuity is determined by actuarial valuation as per AS
 15 on Employees Benefits (Revised 2005) issued by ICAI. During the year
 no further provision made due to termination of services of employees.
 
 Leave encashment
 
 During the year no further provision made due to termination of
 services of employees.