1.  Corporate Information
 
 IO System limited had entered into a joint venture(JV) agreement with
 the General Binding Corporation (GBC), USA on 19th june, 1988 for
 manufacturing and selling office Automation products. The JV was
 terminated with mutual consent between the parties on 31st March, 2002
 and now more than 96% capital of the company is held by Spice
 Infotainment Ltd. (formerly known as Spice Corp. Ltd.) except little
 shareholding with the public. The manufacturing activities had been
 discontinued since Feb., 2006 due to continued losses in the company.
 The company has also not done very well in its trading business as
 result of which, there have been no business activities in the company
 during the past five years.
 
 2.  Basis of Accounting
 
 The financial statements are prepared under the historical cost
 convention on the concept of a going concern, in accordance with the
 Generally Accepted Accounting Principles and mandatory Accounting
 Standards as notified under the Companies (Accounting Standards) Rules,
 2006 and as per the provisions and presentational requirements of the
 Companies Act, 1956.
 
 All assets and liabilities have been classified as current or
 non-current as per the criteria set out in the ’ General Instructions
 for Preparation of Balance Sheet'' of the Revised Schedule VI of the
 Companies Act, 1956.
 
 3 Use of estimates
 
 The preparation of financial statements, in conformity with generally
 accepted accounting principles, requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and the disclosure of contingent assets and liabilities on
 the date of the financial statements and the results of operations
 during the reporting year. Actual results could differ from those
 estimates. Any revision to accounting estimates is recognized
 prospectively in current and future periods.
 
 4 Changes in Accounting policies
 
 The accounting policies adopted are consistent with those of previous
 financial year. The management assures that there has been no change in
 accounting policies as compared to that of previous year which would
 have any significant effect on these financials.
 
 5 Recognition of Income
 
 Income is recognized and accounted for on accrual basis unless
 otherwise stated.
 
 6 Tangible Fixed Assets
 
 Fixed assets are stated at cost less accumulated depreciation and
 impairment losses, if any. Cost comprises the purchase price and any
 attributable cost of bringing the asset to its working condition for
 its intended use.  Borrowing costs relating to acquisition of fixed
 assets which take substantial period of time to get ready for its
 intended use are also included to the extent they relate to the period
 till such assets are ready to be put to use.
 
 Depreciation on tangible fixed assets
 
 Each assets costing Rs. 5,000 or less each is 100% depreciated in the
 year of purchase. Depreciation is provided using the SLM Method, at the
 rates prescribed under Schedule XIV of the Companies Act, 1956.
 
 7 Taxes on Income
 
 Current tax is determined and provided for on the amount of taxable
 income at the applicable rates for the relevant financial year.
 Deferred Tax Assets and Liabilities (DTA/ DTL) are recognized, subject
 to consideration of prudence, on timing differences, being the
 difference between taxable income and accounting income that originate
 in one period and is capable of reversal in one or more subsequent
 periods. The DTA is recognized only to the extent that there is
 reasonable certainty of sufficient future profits against which such
 DTA can be realized.
 
 8 Contingent Liability
 
 The contingent liabilities, if any, are disclosed in the Notes to
 Accounts. Provision is made in the accounts, if it becomes probable
 that there will be outflow of resources for settling the obligation.
 
 9 Events occurring after the balance sheet date
 
 Adjustments to assets and liabilities are made for events occurring
 after the balance sheet date to provide additional information
 materially affecting the determination of the amounts of assets or
 liabilities relating to conditions existing at the balance sheet date.
 
 10 Earnings Per Share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the year/ period attributable to equity shareholders by the
 weighted average number of equity shares outstanding during the year/
 period.