1. (a) In the opinion of the Management, Investments, Current Assets
 and Loans and Advances have a value on realisation in the ordinary
 course of Business at least equal to the amount at which they are
 stated in the Balance Sheet and the provisions for all known
 liabilities have been made and are adequate.
 
 (b) Based on review of Loan & Advances, Creditors and due to employees,
 old balances amounting to Rs. 33,29,653/- (Previous Year 3,62,03,888/-)
 have been written back and debit balance amounting to Rs. 24,714/- have
 been written off.
 
 (c) Balances of Debtors, Creditors,Various Parties, Loan & Advance and
 some bank are subject to confirmation and / or reconciliation.
 
 (d) The shareholders of the Company have appointed M/s Baweja & Kaul,
 Chartered Accountants as a New Statutory Auditors of the Company in the
 Extra- Ordinary General Meeting of the company held on 27.01.2011 in
 place of M/s Jain Singhal & Associates, who had resigned as Statutory
 Auditors of the Company.
 
 (e) The provision for taxation/deferred tax has been made in accordance
 with Accounting Standard 22 Accounting for Taxes on Income issued by
 ICAI in view of brought forward losses and Depreciation, no provision
 for Income Tax is required.
 
 (f) The other liabilities appearing in the balancesheet as part of
 current liabilities includes an amount of Rs.2,33,98,088/- which
 represents various statutory dues payable by the company to the extent
 of principal amount only. No provision for interest on delayed payments
 has been made.
 
 (g) As per management there are no assest which needs to be impaired at
 the year end.  
 
 (h) The Registrar of Companies, NCT of Delhi & Haryana, New Delhi has
 granted permission for extension of financial year for 18 months u/s
 210(4) of the Companies Act, 1956. Therefore, current financial year is
 for the period from 01/10/2009 to 31/03/2011 and there shall be 6
 quarters in this financial year.
 
 (i) The previous years figures are of twelve months and the current
 cumulative period figures are of eighteen months and are therefore not
 comparable.
 
 (j) In the opinion of management debtors of Rs. 2,24,00,064 outstanding
 for more than 6 months are good and recoverable.
 
 (k) As per the certification received from our R & T Agent that partly
 paid up shares have been decreased from 3,300 to 2,900. Transaction has
 been accounted by debiting bank charges, pending reconcilation.
 
 (l) Provision for employee retirement benefits is provided on actuarial
 valution.
 
 2. Contingent Liabilities not provided              As at      As at
 for in respect of:-                              31.03.11   30.09.09
 
 (i) Guarantees issued by Banker on
 behalf of the company                             416,698  2,053,298
 
 (ii) Additional demands raised by the
 Income Tax Dept.                                33,13,732  33,13,732
 which are under Appeal 
 
 (iii) Legal disputes                            6,454,380  54,57,360
 
 3. In accordance with the Accounting Standard - 22 (AS-22), regarding
 Accounting for Taxes on Income, issued by the Institute of Chartered
 Accountants of India, the Cummulative Tax effects of significant timing
 differences, that resulted in Deferred Tax Assets & Libilities and
 description of item thereof that creates these differences are as
 follows:
 
 4.  As per information available with the Management, the dues payable
 to enterprises covered under The Micro, small and Medium Enterprises
 Development Act, 2006 as at 31.03.2011 is Rs. Nil.
 
 5.  Previous year figures have been regrouped/reclassified, wherever
 necessary.
 
 6.  Related Parties Disclosures 
 
 (A) Names of related parties and description of relationship:
 
 1.  Subsidiaries        Software Technology Group Inc, 
                         San Jose, California (USA)
 
 2.  Individuals having 
     control or          Mr. Y.C.Vaidya 
     Significant 
     influence           Ms. Prasanna Vaidya
 
 3.  Key Management 
     Personnel           Mr. Y.C.Vaidya
 
 4.  Enterprises over 
     which person        (1) Associated Teckno Plastic Pvt. Ltd., 
                             New Delhi 
     under above items
     A (2) & A (3) have  (2) Crescent Software Solution Pvt. Ltd.
                             New Delhi 
     significant 
     influence               (Under the process of strking off u/s 
                             560 of Companies Act, 1956.)
 
                         (3) DNA Lab & Research (P) Ltd. New Delhi 
                             (Under the process of strking
                             off u/s 560 of Companies Act, 1956.)
 
                         (4) Y.P.Associates Pvt. Ltd. - New Delhi
 
                         (5) Vaidya Associates Pvt. Ltd. - New Delhi
 
                         (6) BEI Confluence Communication Ltd. 
                             - New Delhi
 
                         (7) Bay Resources and Technology
                             Corporation , USA
 
 7.  Segment Reporting
 
 1.  Segment Information has been prepared in confirmity with accounting
 policies adopted in preparation and presentation of financial
 statements of the company.
 
 2.  The Company has disclosed business segment as primary segment. The
 segment has been identified taking into account the nature of services,
 the different risks and returns, organisation structure and internal
 reporting system.
 
 3.  The Company is mainly engaged in the Business of imparting Software
 training (Training) and Software development (Consulting) and
 accordingly Training and Consulting have been identified as primary
 segments.
 
 4.  Segment revenue, Segment results, Segment assets, Segment
 liabilities includes respective amounts identifiable to each segment
 and also includes amounts allocated on reasonable basis. The expenses
 which are not attributable to or allocated on reasonable basis to
 business segment are shown as unallocated corporate expenses.
 
 5.  Assets and Liabilities that can not be allocated between the
 segments are shown as a part of unallocated corporate assets and
 liabilities respectively.