P.1.1. Basis for preparation.
 
 The Financial statements have been prepared under the historical-cost
 convention, in accordance with the Generally Accepted Accounting
 Principles (GAAP) and accounting standards issued by the Institute of
 Chartered Accountants of India (ICAI), the provisions of the Companies
 Act, 1956 and guidelines issued by the Securities and Exchange Board of
 India (SEBI) as adopted consistently by the Company. All Income and
 expenditure having a material bearing on the financial statements are
 recognized on the accrual Basis.
 
 The preparation of financial statements in conformity with GAAP
 requires management to make estimates and assumptions that affect the
 reported amounts of assets and liabilities, and disclosure of
 contingent assets and liabilities at the date of the financial
 statements and the reported amounts of revenue and expenses during the
 reporting period. Examples of such estimates include estimates of
 expected contract costs to be incurred to complete contracts, future
 obligations under employee retirement benefit plans. Actual result
 could differ from these estimates.
 
 P.1.2. Revenue recognition.
 
 Revenue from software development services and other projects on a
 time-and –material basis is recognized based on services rendered and
 billed to clients as per the terms of specific contracts. In the case
 of fixed-price contracts, revenue is recognized based on the milestones
 achieved, as specified in the contracts, on a percentage of completion
 basis.  Interest on deployment of surplus funds is recognized using the
 time-proportion method, based on interest rates implicit in the
 transaction.
 
 P.1.3. Expenditure
 
 Expenses are accounted for on accrual basis and provisions are made for
 all known losses and liabilities. Company has booked sales incentive on
 cash basis.
 
 P.1.4. Fixed Assets
 
 Fixed assets are stated at the cost of acquisition including incidental
 costs related to acquisition and installation. All direct costs are
 capitalized till the assets are ready to be put to use. Fixed assets
 under construction, advances paid towards acquisition of fixed assets
 and cost of assets not put to use before the period/year end, are
 disclosed as capital work in progress.
 
 P.1.5. Depreciation
 
 Depreciation on fixed assets is provided using the written down value
 method, as rates specified in schedule XIV of the Companies Act, 1956.
 Depreciation is charged on a pro- rata basis for assets purchased/sold
 during the year. Individual assets costing less than Rs. 5,000/- are
 depreciated in full in the year of purchase.
 
 P.1.6. Work-in-Process
 
 The value of work in process as on the date of Balance Sheet has been
 derived at cost.  Which comprising all direct cost(s) incurred upon
 ongoing projects client wise up till the end of financial year. The
 value of such unbilled amount has been valued, taken and considered as
 per certificate given by the management.
 
 P.1.7. Foreign Currency Transactions.
 
 Foreign exchange transactions are recorded at the exchange rates
 prevailing at the date of transaction. Realized gains or losses on
 foreign exchange transactions during the period are recognized in
 profit and loss account. However, sundry debtors are accounted upon the
 prevailing rates on the date of invoice issuance. Expenditure in
 foreign currency is accounted at the conversion rate prevalent when
 such expenditure is incurred. Where realizations are deposited into,
 and disbursements made out of, a foreign currency bank account, all
 transactions during the month are reported at a rate which approximates
 the actual monthly rate.
 
 In the case of current assets and current liabilities expressed in
 foreign currency, the exchange rate prevalent at the end of the year is
 taken for the purposes of transaction. Exchange differences are arising
 on foreign currency transactions are recognized as income or expenses
 in the year in which they arise. In the case of forward contracts, the
 difference between the forward rate and the exchange rate on the date
 of the transaction is recognized as income or expenses over the life of
 the contracts.
 
 P.1.8. Investment
 
 Investments are accounted based on the intent of management at the time
 of acquisition.
 
 P.1.9 Investment in subsidiary
 
 The company has its 100% wholly owned subsidiary FCS Software Solutions
 America Ltd.  U.S.A. & FCS Software Middle East FZE, UAE.
 
 P.1.10 Retirement Benefits.
 
 Own Contributions to provident fund and ESI are charged to the profit
 and loss account as incurred. Provisions for gratuity and leave
 encashment are accounted at the year-end and charged off to the profit
 and loss account.
 
 Company has provided the provision for gratuity and leave encashment on
 the basis of actuarial valuation as prescribed under AS-15 prescribed
 by ICAI and liability was provided only for those employees who are
 covered under Gratuity Act as certified by valuer.
 
 Company does not owe any liability for bonus as no employee is covered
 under Payment of Bonus Act and no provision for Ex Gratia was made.
 
 P.1.11 Employee Stock option based compensation.
 
 The company had not issued any shares under employee stock option plan
 and accordingly not claimed any expenses towards employees stock
 compensation account. However, a scheme has been approved by the
 shareholders for issue of 1,00,00,000 equity shares during 2009-10
 fiscal.
 
 P.1.12 Earning per Share.
 
 Basic earning per share is computed using the weighted average number
 of equity shares outstanding during the year. Diluted earnings per
 share is computed using the weighted average number of equity and
 diluted equity equivalent shares outstanding during the year- end,
 except where the results would be anti-dilutive.
 
 P.1.13 Income Tax
 
 a.  Provision is made for income tax on a yearly basis in pursuance
 with the provision prescribed under Income Tax Act, 1961 under the
 tax-payable method, based on the tax liability as computed after taking
 credit for allowances and exemptions as the case may be.
 
 b.  In compliance of Accounting Standard-22 on Accounting for taxes on
 Income issued by ICAI, the company has recorded the deferred tax Asset
 of Rs. 35,64,144/- for the year ended March 31,2011, has been provided
 and the post tax profit has accordingly increased
 
 P.1.14 Employees Stock Option Plan (ESOP).
 
 During the fiscal the company had not issued shares under employees''
 stock option scheme.
 
 P.1.17 Research & Development
 
 Revenue Expenditure incurred on research and development is charged to
 revenue in the year it is incurred. Assets used for research and
 development activities are included in fixed assets.
 
 P.1.18 Foreign Branch
 
 All revenue and expenses transactions are during the year reported at
 average rate. The assets and liabilities both monetary and non-monetary
 are translated at the rate prevailing on the balance sheet date. All
 resulting exchange differences are accumulated in a foreign currency
 translation reserve until the disposal of the net investment. However
 the Balance sheet of branch as on 31st March 2011 has been considered
 and accounted as certified by the certified public accountant and as
 certified by the management for the purpose of this Balance Sheet.
 
 P.1.19 Segment Reporting
 
 The Segment reporting policy complies with the accounting policies
 adopted for preparation and presentation of financial statements of the
 Company and is in conformity with Accounting Standard –17 on Segment
 Reporting, issued by ICAI. The primary segmentation is based on the
 Geographies in which Company operates and internal reporting system.
 The Company operates in two main Geographical Segments India and USA.
 
 P.1.20 Employee Benefits
 
 Contributions to defined schemes such as provident Fund, Employees''
 State Insurance Schemed are charged as incurred on actual basis. The
 Company also provides for other retirement benefits in the form of
 gratuity and leave encashment based on valuation made by independent
 actuaries as at the balance sheet date.
 
 P.1.22 Material Events.
 
 Material events occurring after the Balance Sheet date taken into
 consideration.