1.1) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
 
 The financial statements have been prepared and presented under the
 historical cost convention using the accrual basis of accounting and
 comply with all mandatory accounting standards as specified in the
 Companies (Accounting Standard) Rules 2006 and the relevant provisions
 of Companies Act, 1956.
 
 The preparation of financial statements is in conformity with the
 Generally Accepted Accounting Principles requires management to make
 estimates and assumptions that affect the amounts reported in the
 financial statements and accompanying notes. Although these estimates
 are based on management,s best knowledge of current events and actions,
 the Company may undertake in future, actual results ultimately may
 differ from the estimates.
 
 1.2) FIXED ASSETS :
 
 a) Fixed Assets are recorded at cost of acquisition inclusive of
 freight, duty, taxes and incidental expenses related to acquisition.
 
 b) When assets are sold or discarded, their cost and accumulated
 depreciation are removed from fixed assets and any gain/loss resulting
 there from is reflected in profit & loss account.
 
 1.3) INTANGIBLE ASSETS :
 
 Acquired Intangible Assets represents Software and is recorded at its
 acquisitions price and related expenses thereon is amortised over its
 estimated useful life on straight-line basis, commencing from the date,
 the asset is available for its use. The Management has estimated the
 useful life for such software as 3 (Three) Years. The useful life of
 the Assets shall be reviewed by the management at each Balance Sheet
 Date.
 
 1.4) DEPRECIATION/AMORTISATION :
 
 Depreciation on Fixed Assets has been provided as per Straight Line
 Method (SLM) at rates specified in Schedule XIV of the Companies Act,
 1956.
 
 1.5) INVENTORIES :
 
 Inventories are valued at cost or net realizable value whichever is
 lower, less VAT where applicable.
 
 1.6) REVENUE RECOGNITION:
 
 a) Sales are recognized when goods are supplied to customers and are
 recorded net of trade discounts, rebates, VAT etc.
 
 b) Other items of revenue are recognized in accordance with the
 Accounting Standard (AS-9). Accordingly, wherever there are
 uncertainties in the ascertainment/realization of income, the same is
 accounted when it is measured with certainty.
 
 c) Interest on Fixed Deposits is booked on time proportion basis taking
 into account the amount invested and rate of interest.
 
 1.7) IMPAIRMENT OF ASSETS:
 
 The company tests on annual basis the carrying amount of the asset for
 impairment so as to determine -
 
 a) The provision for impairment loss if any, or
 
 b) The reversal, if any, required on account of impairment loss
 recognized in previous periods.
 
 1.8) EMPLOYEE BENEFITS:
 
 a) Short Term Employees Benefits:
 
 The undiscounted amount of short term employee benefits, expected to be
 paid in exchange for the services rendered by employee is recognized
 during the period when the employee remain under the service. This
 benefit includes salary, wages, short term compensatory absences and
 bonus.
 
 b) Long Term Employee Benefits:
 
 i) Defined Contribution Scheme- This benefit includes contribution to
 Employee,s State Insurance Corporation {ESI} and Provident Fund
 Contribution (PF) to the Regional Provident Fund Commissioner.  These
 contributions are defined as an expense in the Profit & Loss account as
 and when such contributions are due.
 
 ii) Defined Benefit Scheme- For Gratuity and compensated leave- The
 Company records its liability for Gratuity and compensated leave to its
 employees based on actuarial valuation as at the balance Sheet date,
 using the projected unit credit method. Effects of changes in actuarial
 valuations are immediately recognized in the Profit & Loss account. The
 retirement benefit obligation recognized in the balance sheet
 represents value of defined benefit obligation as reduced by the fair
 value of planned assets, if any. Actuarial gains/losses are recognized
 in full during the year in which they occur.
 
 1.9) TAXES ON INCOME:
 
 a) Current Tax is determined as the amount of tax payable as per Income
 Tax Act, 1961.
 
 b) Deferred Tax liability if any is recognized, subject to the
 consideration of prudence in respect of deferred tax assets, on timing
 differences, being the difference in one year and are capable of
 reversal in one or more subsequent years.
 
 1.10) PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS:
 
 a) The Company creates a provision when there is present obligation as
 a result of past events that probably require an outflow of resources
 and a reliable estimate can be made of the amount of obligation.
 
 b) Contingent Liability is disclosed when there is a possible
 obligation or a present obligation that may, but probably will not,
 require an outflow of resources. But where the likelihood of the
 outflow of resources is remote, no disclosure is made.
 
 c) Contingent Assets are neither recognized nor disclosed in financial
 statements.
 
 1.11) EARNING PER SHARE:
 
 Basic earning per share is computed by dividing, the net profit/loss
 for the year attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the year. Diluted
 Earning per Share are computed after adjusting the effects of all
 dilutive potential equity shares.