1.  Basis of Accounting :
 
 (a) These accounts are prepared on the historical cost basis and on the
 accounting principles of a going concern.
 
 (b) Accounting policies which not specifically referred to are
 consistent and in consonance with generally accepted accounting
 principles.
 
 2.  Revenue Recognition :
 
 Expenses and Income considered payable and receivable respectively are
 accounted on accrual basis.
 
 3.  Fixed Assets :
 
 Fixed Assets are stated at cost of acquisition inclusive of taxes and
 incidental expenses.
 
 4.  Depreciation:
 
 Depreciation of fixed assets is provided on straight-line basis over
 their estimated useful lives at the rates which are higher than the
 rate prescribed in Schedule XIV of the Companies Act'' 1956.Individual
 assets for less than Rs.5000 are entirely depreciated in the year of
 acquisition. The estimated useful lives are as follows:
 
 Computer and Peripherals - 3 years Office Equipment - 5 years
 
 In the case of purchase of assets'' depreciation has been provided on
 pro-rata basis from the date of purchase of those assets.
 
 5.  Valuation of Closing Stock :
 
 Inventories are valued at lower of cost (determined on
 first-in-first-out basis) and Market value.
 
 6.  Foreign Currency Transactions :
 
 Foreign currency transactions are recorded at the rate of exchange
 prevailing on the date of the transaction. At the year-end'' all the
 monetary assets and liabilities denominated in foreign currency are
 restated at the closing exchange rates. Exchange differences resulting
 from the settlement of such transactions and from the translation of
 such monetary assets and liabilities are recognized in the Profit and
 Loss Account.