SYSTEM OF ACCOUNTING
 
 (a) The Company follows the mercantile system of accounting and
 recognises income and expenditure on accrual basis.
 
 The financial statements have been prepared in all material respects
 with accounting standards as notified in the Companies (Accounting
 Standards) Rules, 2006 and relevant provisions of the Companies Act,
 1956.
 
 (b) Financial statements are prepared on historical cost basis and as a
 going concern.
 
 II USE OF ESTIMATES
 
 The preparation of financial statements requires management to make
 certain estimates and assumptions that affect the amounts reported in
 the financial statements and notes thereto. Differences between actual
 results and estimates are recognized in the period in which they
 materialize.
 
 III FIXED ASSETS AND DEPRECIATION
 
 (a) Fixed Assets
 
 Fixed assets are stated at cost of acquisition including attributable
 expenses and are stated at cost less depreciation.
 
 (b) Depreciation
 
 Depreciation is charged in the Accounts on straight line method in
 accordance with the rates and in the manner specified in Schedule XIV
 of the Companies Act, 1956 except as follows:
 
 - Licence Fee is depreciated at the rate of 25%
 
 - Leased premises are depreciated at the rate of 20%
 
 IV REVENUE RECOGNITION
 
 Revenue is recognized to the extent that it can be reliably measured
 and is probable that the economic benefit will follow to the company.
 
 (a) Sales : Revenue is recognized on accrual basis. Sales comprise of
 sale of goods and services and are net of Value Added Tax and Service
 Tax.
 
 (b) Interest : Revenue is recognized on time proportion basis taking
 into account the outstanding amount and the applicable rate of
 interest.
 
 (c) Dividends : Revenue is recognized when the right to receive payment
 is established.
 
 V INVESTMENTS
 
 The Companys investments comprise long term and current investments.
 Long Term investments are stated at cost less permanent diminution, if
 any, in value. Current investments are stated at lower of cost or
 market value.
 
 VI INVENTORIES
 
 Inventories are valued at cost. Cost is computed at purchase price and
 other related expenses incurred in bringing the inventories to their
 present location and condition.
 
 VII FOREIGN CURRENCY TRANSACTIONS
 
 (a) Transactions in Foreign Currency are recorded at the exchange rates
 prevailing on the date of Transactions.
 
 (b) Monetary items denominated in foreign currencies (such as cash
 receivables , payables, etc.) outstanding at the year end, are
 translated at exchange rate applicable as of that date.
 
 (c) Non-monetary items denominated in foreign currency (such as
 investments, fixed assets, etc) are valued at the exchange rate
 prevailing on the date of transaction.
 
 (d) Any gains or losses arising due to exchange differences at the time
 of translation or settlement are accounted in the Profit & Loss
 Account, except as indicated in Note 4 below.
 
 VIII BORROWING COSTS
 
 Borrowing costs attributable to acquisition, construction or production
 of a qualifying asset are capitalized as part of the cost of that
 asset.  A qualifying asset is one that necessarily takes substantial
 period of time to get ready for intended use. All other borrowing costs
 are recognized as an expense in the period in which they are incurred
 
 IX EMPLOYEE BENEFITS
 
 (a) Contributions to Provident Fund are made to Employees Provident
 Fund of the Government and are charged to Profit & Loss Account.
 
 (b) The company has created an Employees Group Gratuity Fund which has
 taken a Group Gratuity Assurance Scheme with the Met Life Insurance Co.
 Premium charged by the Met Life Insurance Co, based on actuarial
 valuation is debited to the Profit and Loss account.
 
 (c) Liability towards Leave Encashment Benefit is provided for based on
 actuarial valuation done at the year end.
 
 X PROVISIONS & CONTINGENCIES
 
 (a) A provision arising out of a present obligation is recognized when
 it is probable that an outflow of resources will be required to settle
 the obligation and the amount can be reasonably estimated.
 
 (b) Wherever there is a possible obligation that may, but probably will
 not require an outflow of resources, the same is disclosed by way of
 contingent liability.
 
 (c) Show Cause Notices are not considered as Contingent Liabilities
 unless converted into demand.
 
 XI TAXES ON INCOME
 
 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. Credit in respect of Minimum Alternate Tax paid is recognized
 only if there is convincing evidence of realization of the same.
 Deferred Tax which is computed on the basis of enacted/substantively
 enacted rates, is recognized, on timing differences, being the
 difference between taxable income and accounting income that originate
 in one period and are capable of reversal in one or more subsequent
 periods.  Where there is unabsorbed depreciation or carry forward
 losses, deferred tax assets are recognized only if there is virtual
 certainty of realization of such assets. Other deferred tax assets are
 recognized only to the extent there is reasonable certainty of
 realization in future.
 
 XII IMPAIRMENT OF ASSET
 
 The carrying amount of assets are reviewed at each balance sheet date
 for indication of any impairment based on internal / external factors.
 An impairment loss is recognized wherever the carrying amount of the
 assets exceeds its recoverable amount. Any such impairment loss is
 recognized by charging it to the profit and loss account. A previously
 recognized impairment loss is reversed where it no longer exists and
 the asset is restated to that effect.
 
 XIII LEASES
 
 Assets acquired under finance leases are capitalized at the lower of
 the fair value of the leased assets at the inception of the lease term
 and the present value of minimum lease payments. Lease payments are
 apportioned between the finance charge and the reduction of the
 outstanding liability. The finance charge is allocated to periods
 during the lease term at constant periodic rate of interest on the
 remaining balance of liability.
 
 Operating lease expense is recognized in the Profit and Loss Account on
 straight line basis over the lease term.