1.  Basis of Preparation
 
 The financial statements are prepared under the historical cost
 convention in accordance with generally accepted accounting principles
 and applicable accounting standards.
 
 Use of estimates
 
 The preparation of financial statements requires the management of the
 Company to make estimates and assumptions that affect the reported
 balances of assets and liabilities and disclosures relating to the
 contingent liabilities as at the date of financial statements and
 reported amounts of income and expenses during the year. Example of
 such estimates include provision for doubtful debts, employee benefits,
 provision for income taxes, accounting for contract costs expected to
 be incurred to complete software development and the useful lives of
 fixed assets.
 
 2.  Fixed Assets
 
 Fixed Assets are stated at cost less depreciation/amortization. Cost of
 acquisition includes freight, duties and installation expenses net of
 taxes and duties eligible for credit.
 
 Capital Work-in-Progress
 
 Advances paid for acquisition of fixed assets and cost of assets (net
 of taxes and duties eligible for credit) not put to use before the
 year-end are disclosed under Capital Work-in-Progress.
 
 Assets are capitalised when they are ready for use / put to use.
 
 3.  Intangible Assets
 
 Intellectual Property Rights (IPR) is stated at cost less amortization.
 All costs incurred for development are carried forward till development
 is complete.
 
 The Intangible assets are tested for impairment for both value and
 availability for use at the end of year and impairment loss is provided
 and deducted from the carrying amounts.
 
 4.  Investments
 
 Long-term investments are stated at cost. Diminution is provided for
 decline in the carrying cost of long-term investments, if the decline
 is other than temporary.
 
 5.  Inventories
 
 Stock of Courseware is valued on FIFO basis at lower of cost and net
 realizable value.
 
 6.  Revenue and Expenditure recognition
 
 Revenue is recognized and expenditure is accounted for on their
 accrual, where there is no uncertainty as to measurement or
 collectibles other than the following
 
 7.  Employee Benefits
 
 Short term employee benefits are charged at the undiscounted amount to
 Profit and Loss Account in the year in which the related service is
 rendered.
 
 Defined contributions towards retirement benefits in the form of
 Provident Fund and Employees State Insurance Scheme for the year are
 charged to Profit and Loss Account.
 
 Defined benefit plan - Gratuity and Long term compensated absence
 
 Liability in respect of defined benefit plan in the form of gratuity is
 determined based on actuarial valuation made by an independent actuary
 using Projected Unit Credit Method as at the balance sheet date and are
 unfunded. Liabilities for long term compensated absences are recognised
 in the same manner.
 
 8.  Foreign Currency Transactions
 
 Transactions in foreign exchange are accounted at the rates prevailing
 on the dates of Transactions.
 
 Foreign Currency liabilities/Assets at the close of the year are
 restated, adopting the year end rates. The resultant difference, if
 any, is recognized as income or expense in Profit and Loss Account.
 
 Exchange difference, arising on forward contracts, is recognized in the
 statement of Profit and Loss in the reporting period in which the
 exchange rates change.
 
 Premium / discounts arising on forward contract are amortized as
 expense or income over the life of the contract.
 
 Any Profit or Loss arising on cancellation or renewal of a forward
 exchange contract is recognized as income or as expense for the period.
 
 10.  Segment Reporting
 
 The company has identified business segments as primary reporting
 segments and geographical segments as its secondary segment.
 
 The company has identified three business segments;-
 
 a) Software Development & Services
 
 b) Education & Training
 
 c) E-Governance.
 
 Revenue and expenses have been identified to respective segments on the
 basis of operating activities of the Enterprise.  Revenue and expenses
 which relate to the enterprise as a whole and are not allocable to a
 segment on a reasonable basis has been disclosed as un-allocable
 revenue and expenses.
 
 There are no inter-segmental transfers.
 
 Segment assets and liabilities represent assets and liabilities in
 respective segments. Other assets and liabilities that cannot be
 allocated to a segment on a reasonable basis have been disclosed as
 un-allocable assets and liabilities.
 
 Geographical segments have been identified by treating sales in India
 and Rest of the world as reportable geographical segments
 
 11.  Lease
 
 Finance Leases are accounted in accordance with AS 19
 
 12.  Taxes on Income
 
 Current tax is the amount of tax payable on the taxable income for the
 year as determined in accordance with the provisions of Income Tax Act
 1961. Deferred tax is recognised, on timing differences, being the
 difference between taxable income and accounting income that originate
 in one period and are capable of reversal in one or more subsequent
 periods. Deferred tax assets in respect of unabsorbed depreciation and
 carry forward of losses are recognised if there is virtual certainty
 that there will be sufficient future taxable income available to
 realise such losses.
 
 13.  Impairment of Assets
 
 Impairment loss, if any, is provided to the extent, the carrying amount
 of assets exceeds their recoverable amount.  Impairment loss is
 aggregated with depreciation
 
 14.  Provisions
 
 A provision is recognised when there is a present obligation as a
 result of a past event, it is probable that an outflow of resources
 will be required to settle the obligation and in respect of which
 reliable estimate can be made. Provision is not discounted to its
 present value and is determined based on the best estimate required to
 settle the obligation at the year-end date. These are reviewed at each
 year-end date and adjusted to reflect the best current estimate.
 
 Contingent Liabilities are disclosed by way of notes in the Financial
 Statements.
 
 Contingent Assets are neither recognised nor disclosed.