Accounting Assumptions
 
 The financial statements have been prepared on the basis of going
 concern, under historical cost convention on accrual basis, to comply
 in all material aspects with the applicable accounting principles in
 India, the Accounting Standards issued by the Institute of Chartered
 Accountants of India and the relevant provisions of the Indian
 Companies Act, 1956.
 
 Revenue Recognition
 
 a) Income is recognized on accrual basis unless otherwise stated in
 these accounts.
 
 b) Revenue from sale is recognized after dispatch of goods to
 customers.
 
 c) Revenue for services is recognized after completion of each stage of
 service
 
 d) Revenue from software development (on time or material basis) is
 recognized based on software developed and billed to the clients.
 
 Fixed Assets and Depreciation
 
 Fixed Assets are stated at cost of acquisition less depreciation. Cost
 of acquisition is inclusive of freight, duties levies and all
 incidentals attributable to bringing the assets to its working
 condition. Assets under installation or under construction as at
 balance sheet date are shown as capital work in progress.
 
 Depreciation is provided pro rata to the period of use on the written
 down value method at the rates specified under Schedule XIV of the
 Companies Act, 1956 except the Temporary structures. Depreciation on
 Temporary structures is provided over the construction period on
 straight line method. Individual assets costing less than Rs.5, 000 are
 fully depreciated in the year of acquisition.
 
 Foreign Exchange Transactions
 
 The transactions in foreign currency are accounted at the exchange rate
 prevailing on the date of transaction.  Gains / Losses arising out of
 fluctuations in exchange rates are accounted for in the Profit and Loss
 Account on realization / payment.
 
 Foreign currency monetary assets and liabilities are translated at the
 exchange rate prevailing on the Balance Sheet date and resultant gain
 or loss is recognised in the Profit and Loss Account.
 
 Investments
 
 Investments that are readily realisable and intended to be held for not
 more than a year are classified as current investments. All other
 investments are classified as long-term investments.
 
 All investments are stated at cost, i.e., cost of acquisition inclusive
 of expenditure incidental to acquisition.  Income from investments is
 recognised in the accounts in the year in which it is accrued and
 stated at gross values.
 
 Short Term Investments are valued at cost or market value whichever is
 lower. In case of Long Term Investments, provision for diminution in
 value is made when it is permanent and material.
 
 Retirement Benefits
 
 Gratuity liability under the Payment of Gratuity Act is accrued and
 provided for on cash basis.
 
 Borrowing Costs
 
 Borrowing costs are recognized as expenditure in the year in which they
 are incurred.
 
 Earnings Per Share
 
 The earnings considered in ascertaining the Company''s Earnings per
 Share (EPS) comprise the net profit/ (loss) after tax. The number of
 shares used in computing Basic EPS is the weighted average number of
 shares outstanding during the year. The number of shares used in
 computing Diluted EPS comprises of weighted average shares considered
 for deriving Basic EPS, and also the weighted average number of equity
 shares which could have been issued on the conversion of all dilutive
 potential equity shares where applicable. Dilutive potential equity
 shares are deemed to have been converted as of the beginning of the
 year, unless they have been issued at a later date.
 
 Taxes on Income
 
 Tax expense comprises both current and deferred taxes. Provision for
 current tax is made based on the applicable tax rates and tax laws with
 respect to that year. Deferred tax assets and liabilities are
 recognized for the future tax consequences attributable to differences
 between financial statements carrying amounts of existing assets and
 liabilities and their respective tax bases and operating loss carry
 forwards. Deferred tax assets and liabilities are measured using the
 tax rates and tax laws that have been enacted or substantively enacted
 by the balance sheet date. The effect of deferred tax assets and
 liabilities of a change in tax rates is recognized in the profit and
 loss account in the year of change.