i) Basis of Preparation of Financial Statements-
 
 The accounts have been prepared to Comply in all material aspects with
 applicable accounting Principles in India, the Accounting Standards
 (AS) notified in the Companies (Accounting Stan- dards) Rules, 2006,
 the provisions of the Companies Act, 1956(the Act)
 
 ii) Use of estimates -
 
 The preparation of financial statements in conformity with Generally
 Accepted Accounting Prin- ciples requires estimates and assumptions
 that affect the reported amounts of assets and liabilities and
 disclosures relating to contingent assets and liabilities as at the
 date of financial statements and reported amounts of revenues and
 expenses during the reporting year. Differ- ences between actual and
 estimates are recognized in the periods in which the results are known
 / materialize.
 
 iii) Fixed Assets -
 
 Fixed Assets are stated at their historical cost of acquisition or
 construction, less accumulated depreciation/amortization and impairment
 loss. Costs include all costs incurred to bring the assets to their
 working condition and location. Assets retired from the active use and
 held for disposal are stated at lower or net book value or net
 realizable value.
 
 iv) Depreciation -
 
 Fixed Assets are depreciated on a Straight-Line basis prescribed in
 Schedule XIV to the Compa- nies Act 1956.
 
 v) Investments -
 
 Current Investments are carried at lower of cost and fair value. Long
 term investments are carried at cost. Provision is made to recognize
 decline other than temporary in the carrying amount of the long term
 investments.
 
 vi) Employee benefits -
 
 Retirement benefit costs are expensed to revenue as incurred.
 Contributions to the Provident fund are made in accordance with the
 rules of the funds.
 
 Provision for the year in respect of Gratuity in made on the basis of
 actuarial valuation as at the end of the year. The company does not
 participate in group gratuity cum life assurance adminis- tered by the
 Life insurance Corporation (LIC).
 
 Leave encashment is provided for on the basis of accrual at the end of
 the year.
 
 The company has granted options for the financial year 2009-10 of Rs.
 4,15,000 as per the Nettlinx ESOP 2007 for which the company follows
 the Intrinsic value method .The company has not recognize any
 compensation expenses since the market price the underlying shares at
 the grant date is the same as exercise price and the intrinsic value of
 the options is nil.
 
 vii) Borrowing costs -
 
 Borrowing costs attributable to the acquisition of a qualifying asset,
 as defined in AS – 16 on Borrowing Costs, are capitalised as part of
 the acquisition. Other borrowing costs are ex- pensed as incurred.
 
 viii) Foreign Currency Transactions -
 
 Transactions in foreign currency are recorded at exchange rate
 prevailing on the date of transac- tion, monetary assets and
 liabilities denominated in foreign currency are translated at the rate
 of exchange at the balance sheet date and resultant gain or loss is
 recognized in the profit and loss account.
 
 ix) Revenue Recognitions -
 
 Revenue from Online information and database access or retrieval
 recognized as the service is performed on the basis of actual usage of
 the company network in accordance with contractual obligation and is
 recorded net of service tax .The amount charged to subscribers for
 specialized features which entitle them to access the network of the
 company and where all other services or products paid for separately,
 are recognized and when such features are activated.
 
 x) Cash Flow statement-
 
 The cash flow statement is prepared by the indirect method set out in
 AS 3 on Cash flow Statement and present cash flows by operation,
 investing and financing activities of the Com- pany.
 
 xi) Inventories -
 
 Inventories are valued at lower of cost or net realizable value .Cost
 of inventories, includes of all costs of purchases, costs of conversion
 and other cost incurred bringing the inventories to their present
 location and condition.
 
 xii) Earnings Per Share -
 
 The company reports basic and diluted earnings per share in accordance
 with AS20 on Earnings per share. Basic earnings per share are
 computed by dividing the net profit or loss for the year by the
 weighted average number of equity shares outstanding during the year.
 Diluted earnings per share is computed by dividing the net profit or
 loss for the year by the weighted average number of equity shares
 outstanding during the year as adjusted for the effect of all dilutive
 preferential equity shares, except where results are anti dilutive
 
 xiii) Impairment of Assets -
 
 An asset is considered as impaired in accordance with AS 28 Impairment
 of Assets when at the balance sheet date there are indications of
 impairment and the carrying amount of the asset, or where applicable
 the cash generating unit to which the assets belongs, exceeds its
 recoverable amount (i.e higher of the assets net selling price and
 value in case).In assessing the value in use, the estimated future cash
 flows expected from the continuing use of the asset and from its
 ultimate disposal are discounted to their present values using a
 pre-determined discount rate.  The carrying amount is reduced to the
 recoverable amount and the reduction is recognized as an impairment
 loss in the Profit and Loss account.