1.  Taxes on Income:
 
 In the absence of convincing evidence regarding availability of
 sufficient taxable income in near future against which the deferred tax
 asset / liability can be adjusted, the company has not recognized the
 deferred tax asset / liability arising due to tax effect of timing
 difference at present.
 
 2.  Foreign Currency Transactions:
 
 The long term monetary assets in foreign currency holding, for more
 than one year are translated into reporting currency without
 considering the exchange fluctuation during the year.
 
 3.  Related Party Transactions:
 
 A.  Related Parties and their Relationship
 
 I.  Associate or Joint Venture:
 
 a) Saven Technologies Inc., USA, a Subsidiary of the Company.
 
 b) Penrillian Limited, a Joint Venture Company in the U.K.
 
 c) Pennar Industries Limited - Common Director.
 
 d) Pennar Engineered Building Systems Limited - Common Director.
 
 e) Pennar Chemical Limited - Common Director.
 
 II.  Key Management Person:
 
 Mr. Murty Gudipati - Executive Director
 
 4.  Quantitative details:
 
 The Company is engaged in the Development of Computer Software and IT
 Enabled Services (ITES). The sale and production of such software
 cannot be expressed in any generic unit. Hence, it is not possible to
 give the quantitative details of sales and certain information as
 required under Paragraphs 3, 4C and 4D of Part II of Schedule VI to the
 Companies Act, 1956.
 
 5.  Other Liabilities:
 
 Other Liabilities includes an amount of Rs.3.54 Lakhs relating to Hire
 Purchase of cars excluding Hire charges, and the said loan was secured
 by hypothecation of the said cars.
 
 8.  Segment-wise / Product-wise performance
 
 Business Segments of the Company are primarily Software Development
 Services in respect of offshore projects working in India and
 IT-Enabled Services.
 
 Geographical revenues are segregated based on the location of the
 customer who is invoiced or in relation to which the revenue is
 otherwise recognized.
 
 6.  Dues to Micro, Small and Medium Enterprises:
 
 The amount due to Micro, Small and Medium Enterprises as defined in the
 The Micro, Small and Medium Enterprises Development Act, 2006  has
 been determined to the extent such parties have been identified on the
 basis of information available with the company.
 
 7.  Sundry Debtors:
 
 Sundry Debtors include an amount of Rs.34,109,583/- due from Saven
 Technologies Inc., a subsidiary in USA, (out of which an amount of Rs.
 61.38 Lakhs has been provided for provision for doubtful debts) which
 has been provided in full as provision for doubtful debts in the books
 of accounts.
 
 During the year, an amount of Rs.40,93,000/- has been written off
 against the provision of the same amount, due from Saven Technologies
 (UK) Limited made during the earlier years, towards sundry debtors
 amounting to Rs.2,005,040/- advances amounting to Rs. 1,411,742/- and
 investments amounting to Rs.6,76,218/- pursuant to the approval of
 Reserve Bank of India for dissolution of the wholly-owned subsidiary.
 
 8.  Reclassification:
 
 The previous year''s figures have been recast, regrouped, rearranged
 wherever necessary, to conform to the current year''s classification.