I.  The Company has purchased Motor Car on Hire Purchase basis from
 Kotak Mahindra in the year 2008. The same has been secured against the
 hypothecat and personal guarantee of the directors
 
 II.  The Company has received Rs. 12,92,636/- (equivalent to Euros
 20,000) during the financial year 2009-10 towards advance for the sale
 of 80% shareholding in its wholly owned subsidiary B2B Technologies
 Kassel Gmbh. The shares have not been transferred pending approval from
 RBI.  The company has made a provision of Rs. 39,37,554 towards loss on
 sale of investment and a provision for Rs. 13,07,549 for dimunition in
 the value of investment.
 
 III. The Wholly Owned Subsidiaries of the company at Malaysia, B2B
 Infotech SDN BHD and at Singapore, B2B Infotech Pte Ltd are under
 liquidation/The Company has made a provision for dimunition in the
 value of investment to the extent of 100% of the carrying amount.
 
 IV.  The Company is primarly engaged in Information Technology and
 related services. There are no other reportable segments in terms of
 Accounting Standard 17 on Segment Reporting issued by the The Institute
 of Chartered Accountants of India
 
 V. Consolidated financial Statements - Accounting Standard 21
 
 Consolidated financial statements of the company and its wholly owned
 subsidiary viz., B2B Softech inc, USA are enclosed
 
 VI.  Interim Financial Reporting - Accounting Standard 25
 
 Quarterly financial result are published in accordance with the
 requirement of the listing agreement with Stock Exchange. The
 reorganisation and measurement principle as laid down in the standard
 have been followed in the preparation of these results.
 
 VII. Intangible Assets - Accounting Standard 26
 
 The company owns Intellectual Property Right relating to its service
 business and the carrying amount thereof is disclosed in the schedule
 of Fixed Assets. This would be amortised on a written down value method
 @ 20 % per annum.
 
 VIII.  Basis Of Presentation
 
 The financial statements of the Company are prepared under the
 historical cost convention in accordance with the Generally Accepted
 Accounting Principles (GAAP) applicable in India and the relevant
 provisions of the Companies Act, 1956. The preparation of the financial
 statements in conformity with the GAAP requires that the management
 makes estimates and assumptions that affect the reported amounts of
 assets and liabilities, disclosure of contingent liabilities as at the
 date of the financial statements, and the reported amounts of revenue
 and expenses during the reporting period.
 
 IX.  Revenue Recognition
 
 Revenue from professional services consists of revenue earned from
 services performed on a time and material basis and time bound fixed -
 price engagements. In respect of Time and Material Contracts, revenue
 is recognised as and when the services are performed. In respect of
 time bound fixed- price engagements, revenue is recognised using the
 percentage of completion method of accounting, unless work completed
 cannot be reasonably estimated. The cumulative impact of any revision
 in estimates of the percentage of work completed is reflected in the
 period in which the change becomes known. In respect of trading
 activities, revenue is recognised on transfer of ownership to the
 customers.  
 
 X.  Fixed Assets
 
 Fixed assets are stated at cost less accumulated depreciation. The cost
 capitalised includes material cost, freight, installation cost, duties
 and taxes, finance charges and other incidental expenses incurred
 during the constructions/installation stage. Depreciation on fixed
 assets is computed on the written down value method at the rates
 prescribed under Schedule XIV of the Companies Act, 1956. Individual
 assets costing less than Rs. 5,000 are depreciated in full in the year
 of purchase. Costs of application software for internal use are
 generally charged to revenue as incurred due to its estimated useful
 lives being relatively short. Capital work in progress includes all
 direct expenditure incurred in connection with the acquisition of fixed
 assets and also the advances paid therefore.  
 
 XI. Investments
 
 Investments are classified into current investments and long-term
 investments. Current investments are carried at the lower of cost or
 fair value. Any reduction in carrying amount and any reversals of such
 reductions are charged or credited to the Profit and Loss account.
 Long-term investments are carried at cost less provision made to
 recognise any decline, other than temporary, in the value of such
 investments.  
 
 XII.  Foreign Currency Transactions
 
 In foreign currency are translated at the rates of exchange at the
 balance sheet date and resultant gain or loss is recognized in the
 profit and loss account.  
 
 XIII.  Retirement Benefits
 
 Contributions to defined schemes such as provident Fund, Employees
 State Insurance scheme are charged as incurred on accrual basis.
 Provision for gratuity is made on the basis actuarial valuation.
 
 XIV.  Inventories
 
 Work in progress is valued at cost or rate assured under a contract
 whichever is lower.
 
 XV.  During the year under March 31st 2012, the revised schedule VI
 notified under the Companies Act, 1956, has become applicable to the
 company, for preparation and presentation of its financial statements.
 The adoption of revised Schedule VI does not impact recognition and
 measurement principles followed for preparation of financial
 statements. However, it has significant impact on presentation and
 disclosure made in the financial statements.  The company has also
 reclassified/regrouped the previous years figures in accordance with
 the requirements applicable in the current year.