The Financial statements have been prepared in accordance with the
 requirement of Section 209(3) (b) of the Companies Act, 1956.
 
 1.1.  Income/Expenditure
 
 The Company recognises its revenue and expenses on accrual basis.
 
 1.2.  Fixed assets.
 
 Fixed Assets are stated at cost of acquisition less accumulated
 depreciation.
 
 1.3.  Depreciation
 
 i. Fixed assets, except Computer Hardware, depreciation has been
 provided on a written down value method at rates prescribed in Schedule
 XIV to the Companies Act, 1956.
 
 ii. Depreciation on Computer & accessories (other than those acquired
 from Globsyn) has been provided on an accelerated basis according to
 which the cost of Computer hardware would be written off over a period
 of 3 years.
 
 iii.  Computer Hardware acquired from Globsyn has been written off over
 a period of 10 years.
 
 iv. As per Management Policy the cost of the ITMS Software Design would
 be amortized over 50 copies. Since there were no ITMS product sales
 during the financial year, depreciation has not been provided for in
 the books.
 
 1.4.  Investments
 
 Investments classified as Long Term, are stated at cost of acquisition,
 and includes brokerage, fees, and incidental expenses. 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.
 
 1.5.  Retirement Benefits
 
 The Company contributes to provident fund maintained under the
 Employees'' Provident Fund and ESIC Scheme run by the Central
 Government. The Company recognizes its obligation towards gratuity
 payable to employees on actuarial valuation.
 
 1.6.  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 realisation or remittance is transferred to Profit and Loss
 Account.
 
 1.7.  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.
 
 1.8.  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.