A) ACCOUNTING METHOD
 
 The Accounts have been prepared as per historical cost conversion on an
 accrual basic.
 
 B) FIXED ASSETS
 
 Fixed Assets are stated at their cost of acquisition including expenses
 less accumulated depreciation.
 
 C) INVESTMENTS 
 
 Investments are stated at cost.
 
 D) INVENTORIES
 
 Computer peripherals & C. D. are valued at cost or market value
 whichever is lower.
 
 E) PRELIMINARY AND PUBLIC ISSUE EXPENSES
 
 Preliminary expenses and public issue expenses are written off in ten
 equal annual instalments. Expenses incurred after 01.04.99 to be
 amortised over a period of five years.
 
 F) DEPRECIATION
 
 Depreciation is provided on straight line method in accordance with
 provision of section 205(2)(b) and at the rates prescribed in schedule
 XIV of the Companies Act, 1956 and any amendment there to from time to
 time, on pro rata basis with respect to the period of use.
 
 G) RETIREMENT BENEFITS
 
 Gratuity and other retirement benefits are being accounted for on cash
 basis.
 
 H) REVENUE RECOGNITION
 
 The Revenue of the company have been accounted for on accrual basis
 except the income from accounts in default, which shall be accounted as
 and when received.