(i) Basis of Accounting
 
 The financial statements are prepared in accordance with Indian
 Generally Accepted Accounting principles (GAAP) under the historical
 cost convention on an accrual basis. GAAP comprises mandatory
 Accounting Standards issued by the Institute of Chartered Accountants
 of India (ICAI), the provisions of the Companies Act, 1956, and
 guidelines issued by the Securities and Exchange Board of India.
 Accounting policies have been consistently applied except where a newly
 issued accounting standard is initially adopted or a revision to an
 existing accounting standard requires a change in the accounting policy
 hitherto in use.
 
 The Management evaluates all recently issued or revised accounting
 standards on an ongoing basis.
 
 (ii) Use of Estimates
 
 The preparation of the financial statements in conformity with GAAP
 requires the management to make estimates and assumptions that affect
 the reported balances of assets and liabilities and disclosures
 relating to contingent assets and liabilities as at the date of the
 financial statements and reported amounts of income and expenses during
 the period. Examples of such estimates include provisions for doubtful
 debts, future obligations under employee retirement benefit plans,
 income taxes and the useful lives of fixed assets and intangible
 assets.
 
 The management periodically assesses using, external and internal
 sources, whether there is an indication that an asset may be impaired.
 An asset is treated as impaired when the carrying cost of asset exceeds
 its recoverable value. An impairment loss is charged to the Profit and
 Loss Account in the year in which the asset is identified as impaired.
 Where no reliable estimate can be made; a disclosure is made as
 contingent liability. Actual results could differ from those estimates.
 
 (iii) Fixed Assets and Depreciation
 
 a) Tangible Assets:
 
 Fixed assets are stated at cost, less accumulated depreciation. Costs
 directly attributable to the purchase of fixed assets are capitalized
 until fixed assets are ready for use. Capital work-in- progress
 comprises of advances paid to acquire fixed assets, and the cost of
 fixed assets that are not yet ready for their intended use before the
 balance sheet date.
 
 All assets discarded/ dismantled are written off assuming that the
 scrap value for the same is Nil.  If and when such discarded assets are
 disposed off partially or fully, the amounts realized during the year
 are credited to the profit and loss account of that year.
 
 b) Depriciation:
 
 Depreciation of Fixed Assets is provided on a pro-rata basis on the
 written down value method at the rates prescribed under Schedule XIV to
 the Companies Act, 1956, on all assets, except for the following:
 
 Leasehold improvements are depreciated over the remaining period of
 lease or 10 years whichever is lesser.
 
 Individual low cost assets (acquired for less than Rs.5,000/-) are
 depreciated within a year of acquisition.
 
 c) Intangible Assets and Amortization:
 
 Intangible assets are amortized over their respective individual
 estimated useful lives on a straight line basis, commencing from the
 date the asset is available to the company for its use.  Management,
 using reasonable and supportable assumptions, has estimated the useful
 lives for the intangible assets as follows:
 
 Trademarks 20 years
 
 Goodwill 10 years
 
 Trademarks represent the brand image of the company and constitute an
 asset with no limited useful life. Based on advice received by the
 management and as per the provisions of the Trade Marks and Merchandise
 Act of 1999, the company can retain the ownership and registration of
 the trademarks perpetually by renewing the registration at the end of
 every ten years, leading to the view that the useful life of its
 trademarks are unlimited.
 
 However, as a matter of abandon precaution, the cost of the Trademarks
 is being amortized over a period of 20 years.
 
 Investments
 
 Trade investments are the investments made to enhance the company''s
 business interests.  Investments are either classified as current or
 long-term based on the management''s intention (iv) at the time of
 purchase. Current investments are carried at the lower of cost and fair
 value. Long Term Investments are stated at cost. Provision for
 diminution in their value is made only if such a decline is other than
 temporary in the opinion of the management.
 
 Revenue Recognition
 
 The Company recognizes revenue on accrual basis. Revenue from the sale
 of hardware/software products is recognized when the sale is completed
 with the passing of title. Revenue from services (v) is recognized in
 the ratio of period expired over the total agreement period. Revenue
 from Fixed Price Contracts is recognized proportionately over the
 period in which services are rendered.
 
 Profit on sale of investments is recorded on transfer of title from the
 company and is determined as the difference between the sales price and
 the then carrying value of the investment. Lease rentals are recognized
 using the time-proportion method, based on rates implicit in the
 transaction. Dividend income is recognized when the company''s right to
 receive dividend is established.
 
 (vi) Foreign Currency Transactions
 
 Investments in foreign entities are recorded at the exchange rates
 prevailing on the date of making theinvestments.
 
 Expenditure in foreign currency is accounted at the exchange rate
 prevalent when such expenditure is incurred. Exchange differences are
 recorded when the amount actually received on sales or actually paid
 when expenditure is incurred, is converted into Indian Rupees. The
 exchange differences arising on foreign currency transactions are
 recognized as income or expense in the period in which they arise
 except in respect of liabilities for acquisition of fixed assets, where
 such exchange difference is adjusted in the carrying cost of the
 respective fixed asset.
 
 Monetary current assets and monetary current liabilities that are
 denominated in foreign currency are translated at the exchange rate
 prevalent at the date of the balance sheet. The resulting gain or loss
 is also recorded in the profit and loss account.
 
 (vii) Inventories
 
 Inventory is valued at lower of cost (determined on First in First out
 basis) and estimated net realizable value. Cost is inclusive of all
 purchase costs and other costs incurred in bringing the inventories to
 their present location and conditions.
 
 (viii) Retirement Benefits
 
 All employees of the Company are entitled to receive benefits under the
 Provident Fund, which is a defined contribution plan. Both the employee
 and the employer make monthly contributions to the plan at a
 predetermined rate (presently 12.0%) of the employees'' basic salary.
 These contributions are made to the fund administered and managed by
 the Government of India. In addition, some employees of the Company are
 covered under the employees'' state insurance schemes, which are also
 defined contribution schemes recognized and administered by the
 Government of India.
 
 The Company''s contributions to both these schemes are expensed in the
 Profit and Loss Account.  The Company has no further obligations under
 these plans beyond its monthly contributions.
 
 Gratuity has been provided in the Profit and Loss Account as per the
 provisions of the Payment of Gratuity Act, 1972. Provisions for
 gratuity is based on independent Actuarial Valuation Certificate.
 
 Provision for Leave encashment is made on the basis of unutilized leave
 due to employees at the end of the year.
 
 (ix) Research and Development
 
 Revenue expenditure incurred on research and development is expensed as
 incurred. Capital expenditure is included in the respective heads under
 fixed assets and depreciation thereon is charged to the profit and loss
 account.
 
 (x) Borrowing Cost
 
 Interest and other costs in connection with the borrowing of funds to
 the extent related/attributed to the acquisition/construction of
 qualifying fixed assets are capitalized upto the date when such assets
 are ready for its intended use and other borrowing costs are charged to
 Profit & Loss Account.
 
 (xi) Leases
 
 Lease rentals in respect of assets taken on ''Operating Lease'' are
 charged to the profit & loss Account on straight line basis over the
 lease term.
 
 (xii) Earning per Share
 
 Basic earning per share (EPS) is calculated by dividing the net profit
 after tax for the year (including the post-tax effect of extraordinary
 items, if any) attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the period. The
 weighted average number of equity shares outstanding during the period
 is adjusted for events of bonus issue and share split.
 
 (xiii) Taxation
 
 Tax expense for the year comprises of current tax and deferred tax.
 
 Income tax is computed using the tax effect accounting method, where
 tax is accrued in the same period the related revenue and expense
 arises. Provision is made for income tax annually based on the tax
 liability computed, after considering tax allowances and exemptions.
 
 The differences that result between the profit considered for income
 taxes and the profit as per the financial statements are identified,
 and thereafter a deferred tax asset or deferred tax liability is
 recorded for timing differences, namely the differences that originate
 in one accounting period and reverse in another, based on the tax
 effect of the aggregate amount being considered. The tax effect is
 calculated on the accumulated timing differences at the end of an
 accounting period based on prevailing enacted or substantially enacted
 regulations. Deferred tax assets are recognized only if there is
 reasonable certainty that they will be realized and are reviewed for
 the appropriateness of the respective carrying values at each balance
 sheet date. The income tax provision for the interim period is made
 based on the best estimate of the annual average tax rate expected to
 be applicable for the full fiscal year.
 
 (xiv) Cash Flow Statement
 
 Cash flows are reported using the indirect method, whereby profit
 before tax is adjusted for the effects of transactions of a non-cash
 nature and any deferrals or accruals of past or future cash receipts or
 payments. The cash flows from regular revenue generating, financing,
 and investing activities of the company are segregated.
 
 (xv) Contingent Liabilities
 
 Depending on the facts of each case, and after evaluation of relevant
 legal aspects, the Company makes a provision when there is a present
 obligation as a result of a past event where the outflow of economic
 resources is probable and a relevant estimate of the amount of
 obligation can be made. The disclosure is made for all possible or
 present obligations that may but probably will not require outflow of
 resources as contingent liability in the financial statement.