a Basis of Preparation
 
 The financial statements are prepared under the historical cost
 convention, in accordance with the accounting standards and the
 provisions of the Companies'' Act, 1956, as adopted consistently by the
 company. All income and expenditure having a material bearing on the
 financial statements are recognized on accrual basis.
 
 The preparation of statements in conformity with accounting standards,
 requires management to make estimates and assumptions that effect the
 reported amounts of assets and liabilities at the date of financial
 statements, and the reported amounts of revenues and expenses during
 the reporting period. Examples of such expenses include provision for
 doubtful debts, miscellaneous expenditure and useful lives of fixed
 assets.  Actual results could differ from those estimates. Any revision
 to such accounting estimates is recognized in the accounting period in
 which such revision takes place.  
 
 b Revenue Recognition Izmo Cars Solutions :
 
 Revenue from fixed price software contracts are recognized principally
 on the basis of completed mile-stones as specified in the contracts.
 Revenue from software development and service on time basis is
 recognized as per terms of specified contracts.
 
 Enterprise Connectivity & Security :
 
 Revenue from sale of hardware and software products is recognized on
 the dispatch of goods from the company''s premises/transfer of Licenses.
 
 Income from Maintenance Contracts is accounted for in the ratio of the
 period expired to the total period of contract and the amount invoiced
 from the customers towards the unexpired portion of such contracts is
 treated as Deferred Revenue.
 
 Dividend Income & Interest Income :
 
 Dividend income is recognized when the right to receive dividend is
 established and Interest income is accrued at the applicable interest
 rate.  
 
 c Inventory Valuation
 
 Trading Stock have been valued at the lower of cost or net realizable
 value. Software Work-in-Progress is valued at the cost incurred on the
 specific project up to the date of Balance Sheet pending achievement of
 requisite mile- stone on which revenue is recognized subsequent to the
 date of the Balance Sheet. 
 
 d Fixed Assets
 
 Fixed Assets are stated at the original cost of acquisition less
 depreciation. Original cost includes purchase price, levies, directly
 attributable cost of bringing the assets to its working condition for
 its intended use as also the capitalized portion of pre-operative
 expenses.  
 
 e Depreciation
 
 Depreciation is provided at the rates prescribed in Schedule
 
 XIV of the Companies Act, 1956, under Written Down Value Method.
 Depreciation is charged on prorata basis on the additions during the
 year. Intangible assets are amortized over a period of 3-5 years.  
 
 F Investments
 
 Short Term Investments: It is re-stated at lower of the cost or Market
 value as at the year end.
 
 Subsidiary Companies: Investments held by the company are long term in
 nature and are stated at cost unless there is a permanent diminution in
 the value of the Investment.  
 
 g Foreign Currency Transactions
 
 Transactions in Foreign Currency are recorded at a rate which
 approximates the exchange rate prevailing on the date of the
 transaction. Current Assets and Liabilities denominated in Foreign
 Currency are translated at the exchange rate as at the Balance Sheet
 date. The resulting net gain or loss is recognized in the Profit and
 Loss Account.  h Borrowing Cost Borrowing costs that are attributable
 to the acquisition/ construction of fixed assets are capitalized as
 part of the cost of the respective assets. Other borrowing costs are
 recognized as expenses in the year in which they are incurred.  i
 Taxation
 
 Provision for Income-tax has been made at the current tax rates at the
 higher of that on the basis of estimated assessable income or on the
 basis of Section 115 J B of the Income Tax Act, 1961.
 
 Deferred tax is recognized subject to consideration of prudence, on
 timing differences being the differences between taxable income and
 accounting income that originate in one period and are capable of
 reversal in one or more subsequent periods. The deferred tax charge or
 credit is recognized using current tax rates. Deferred tax
 assets/liabilities are reviewed as at each Balance sheet date.  In
 terms of the Guidance note on accounting for credit available in
 respect of Minimum Alternative Tax(MAT) under the Income Tax Act, 1961,
 issued by the ICAI, the excess of MAT over normal current tax payable
 has been recognized as an asset by way of credit to the profit & loss
 account as MAT credit entitlement.  
 
 j Retirement/ Employee Benefits
 
 In accordance with the requirements of revised Accounting Standard-15
 Employee Benefits, the company provides for gratuity covering
 eligible employees on the basis of actuarial valuation as carried out
 by an Actuary using the Projected Unit Credit Method. The liability in
 unfunded Actuarial gains or losses arising from the changes in the
 actuarial assumptions are charged or credited to the Profit and Loss
 account in the year in which such gains or losses arise.
 
 Leave encashment benefits payable to the employees of the Company with
 respect to accumulated leave outstanding at the year end are accounted
 for on the basis of actuarial valuation using Projected Unit Credit
 Method as at the Balance Sheet date. The liability is unfunded.  The
 Company''s contribution to employee'' Provident Fund is accounted on
 accrual basis.
 
 Other Employee benefits are accounted for on accrual basis.
 
 Since the attrition rate in the software industry is significant, the
 company has taken the stand, as in the previous years, not to provide
 for superannuation benefits to the employees . Superannuation expenses
 will be charged to the Profit & Loss Account as and when it is paid.
 Due to the nature of the industry, the company does not foresee
 significant expenses under this head in the foreseeable future.  
 
 K Intangible Assets
 
 Intangible assets, mainly software, are capitalized at cost.  Based on
 the managements estimate of useful life, the same are amortized over
 3-5 years. All Intangible assets are reviewed as at the date of the
 financial statements for impairment.  
 
 l Earnings per Share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the period attributable to equity share holders by the
 weighted average number of equity shares during the period. For the
 purpose of calculating the diluted earnings per share, the net profit
 or loss for the period attributable to the equity share holders and
 weighted average number of shares outstanding during
 
 the period are adjusted for the effects of all potential dilutive
 equity shares.  
 
 m Provisions & Contingent Liabilities
 
 The Company recognizes a provision when there is a present obligation
 as a result of a past event that probably requires an outflow of
 resources and a reliable estimate can be made of the amount of the
 obligation. A disclosure for a contingent liability is made when there
 is a possible obligation or a present obligation that may, but probably
 will not, require an outflow of resources. Where there is a possible
 obligation or a present obligation that the likelihood of outflow of
 resources is remote, no provision or disclosure is made.  n Employee
 Stock Option Plan
 
 The Company measures the compensation cost relating to employee stock
 options using the intrinsic value method. The compensation cost is
 amortized over the vesting period of the option. The Number of options
 expected to vest is based on the best available estimate and revised,
 if necessary, if subsequent information indicates that the number of
 stock options expected to vest differs from the previous estimates.