The Financial statements have been prepared in accordance with the
 requirement of Section 209(3)(b) of the Companies Act, 1956.
 
 a Method of accounting
 
 The financial statements have been prepared in accordance with Indian
 Generally Accepted Accounting Principles (GAAP) under the historical
 cost convention on the accrual basis except where specified otherwise.
 GAAP comprises accounting standards notified by the Central Government
 of India u/s 211(3C) of Companies Act, 1956.
 
 The Company has prepared these financial statements as per the format
 prescribed by Revised Schedule VI to Companies Act, 1956 (the Schedule)
 issued by Ministry of Corporate Affairs. Previous periods figures have
 been recast/restated to confirm to the classification required by
 Revised Schedule VI.
 
 b Fixed assets.
 
 Fixed Assets are stated at cost of acquisition less accumulated
 depreciation and impairment cost, if any.
 
 c Depreciation
 
 i.  Fixed assets, except Computer and accessories, has been depreciated
 on a written down value method at rates prescribed in Schedule XIV to
 the Companies Act, 1956.
 
 ii.  Depreciation on Computer and accessories (other than those
 acquired from Globsyn) has been provided on an accelerated basis
 according to which the cost of the said assets would be written off
 over a period of 3 years.
 
 iii.  Computer and accessories acquired from Globsyn has been written
 off over a period of 10 years.  d Impairment of assets
 
 The Carrying amounts of assets are reviewed at each Balance Sheet date
 for any indication of impairment based on internal/external factors. An
 asset is impaired when the carrying amount of the asset exceed the
 recoverable amount. The impairment loss recognized in the prior
 accounting period is reversed if there has been a change in the
 estimate of recoverable amount. Based on management opinion there is no
 impairment in the value of assets in the year under report.
 
 e Investments
 
 Investments, classified as Long Term, are stated at cost of
 acquisition, and include brokerage, fees, and incidental expenses.
 Provision for diminution in the value of long term investments is made
 only if such a decline is other than temporary. But no provision has
 been made in the books for diminution in the value of investment of
 Sigma Soft Pte Ltd. as the amount is unascertainable.
 
 f Retirement Benefits
 
 i.  Short term employee benefits -
 
 All employee benefits payable within twelve months of rendering the
 service are classified as short term benefits. Such benefits include
 salaries, wages, bonus, short term compensated absences, awards, ex-
 gratia, performance pay etc. and the same are recognised in the period
 in which the employee renders the related services.
 
 ii Defined contribution plans -
 
 The Company makes contribution to the Government Provident Fund and
 Employees State Insurance Scheme and contributions paid/payable under
 the scheme is recognised during the period in which the employee
 renders the related service.
 
 iii Defined benefits plans -
 
 At present the Company does not have any defined benefit plan. The
 gratuity, leave encashment and terminal benefits are accounted as and
 when paid. However, Gratuity is provided in the books on accrual basis.
 
 
 g     Foreign Currency Transactions
 
 Income and Expenditure in foreign currency is accounted for at the
 prevailing exchange rates as on the day of the transaction. Monetary
 items like receivables/payables in foreign currency are reported at the
 exchange rate prevailing on the balance sheet date. Gains/Loss arising
 due to exchange rate fluctuations on reporting as stated above and/or
 on actual realization or remittance is transferred to Profit and Loss
 Account.
 
 h Income Taxes:
 
 Income taxes are accounted for in accordance with Accounting Standard
 (AS-22) Accounting for Taxes on Income. Tax expense comprises current
 tax and deferred tax.
 
 Current tax is the amount of tax payable on the taxable income for the
 year as determined in accordance with the provisions of the Income Tax
 Act, 1961.
 
 The Company recognizes deferred tax (subject to consideration of
 prudence) based on the tax effect of timing differences, being
 differences between taxable income and accounting income that originate
 in one period and are capable of reversal in one or more subsequent
 periods. The effect on deferred tax assets and liabilities of a change
 in tax rates is recognized in the statement of profit and loss using
 the tax rates and tax laws that have enacted or subsequently enacted by
 the balance sheet date.
 
 i Provisions, Contingent Liabilities and Contingent Assets:
 
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent liabilities, if any, are not recognized but disclosed by way
 of notes to accounts. Contingent assets are neither recognized nor
 disclosed in the financial statements.
 
 j Revenue Recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue is reliably
 measurable.
 
 Revenue from sale of software and accessories is recognized when all
 the significant risks and rewards of ownership of the goods have been
 passed on to the customers, usually on delivery and successful
 installation of the software and accessories. The value added tax
 collected on such sales is excluded from the revenue.
 
 Revenue from services, other annual maintenance contracts, is
 recognized on the basis of percentage completion or after completion of
 rendering of services, as specified in individual contracts. Revenue
 from annual maintenance contracts are recognized pro-rata over the
 period of contract as and when services are rendered. The service tax
 collected, if any, is excluded from the revenue.
 
 Other operating revenues are recognized after successful completion of
 the specific project. The service tax collected, if any, is excluded
 from the revenue.
 
 Dividend income is recognized when the Company''s right to receive the
 dividend is established by the reporting date.
 
 Interest income is recognized on accrual basis except in respect of
 term deposits with banks, where it is recognized on receipt basis.