1.  BASIS OF PREPARATION:
 
 The financial statements are prepared under the historical cost
 convention, in accordance with Indian Generally Accepted Accounting
 Principles (GAAP), the mandatory accounting standards issued by the
 Institute of Chartered Accountant of India and the provisions of the
 Companies Act, 1956, as adopted consistently by the company.
 
 2.  USE OF ESTIMATES:
 
 The presentation of financial statements in conformity with the
 generally accepted accounting principles requires estimates and
 assumptions to be made that affect the reported amount of revenues and
 expenses during the reporting period. Difference between the actual and
 estimates are recognized in the period in which the results are known /
 materialized.
 
 2.  Fixed Assets & Depreciation:
 
 i. Fixed assets are stated at the cost, less accumulated depreciation
 and impairment losses. Cost comprises purchase price, duties, levies
 and any other costs relating to the acquisition and installation of the
 assets.  Interest and financing charges on borrowed funds, if any, used
 to finance the acquisition of fixed assets, which take substantial time
 until the assets are ready for use, are capitalized and included in the
 cost of the asset.
 
 ii. Capital work-in-progress includes advances paid towards the
 acquisition of fixed assets, and the cost of assets not put to use
 before the year-end, are disclosed under capital work-in-progress.
 
 iii. Fixed Assets acquired under finance lease are capitalized at the
 lower of the fair value and the present value of the minimum lease
 payments.
 
 iv. Depreciation on the Fixed Assets of the Company is provided on
 Straight-line method as per Schedule XIV of the Companies Act, 1956 on
 pro-rata basis.
 
 v. The Fixed Assets of National Population Register (NPR) project are
 depreciated over a period of 36 months which is the expected useful
 life of the Asset.
 
 vi. Capital Expenditure incurred on Projects Division is written-off
 over the tenure of the project period for the projects where the
 company is required to transfer the assets to the customer at the end
 of the project period and for other capital assets the depreciation is
 provided as per the clause (iv) above.
 
 vii. Assets acquired under finance lease, where there is reasonable
 certainty that the company shall obtain ownership of the assets at the
 end of the lease term, such assets are depreciated as per the clause
 (iv) above.
 
 3.  Revenue Recognition:
 
 The company generally follows mercantile system of accounting and
 recognizes significant items of income on accrual basis.
 
 a) Revenue from sale of goods is recognized on transfer of significant
 risks and reward of ownership in the goods to the customers.
 
 b) Revenue from sale of software products is recognized when the sale
 is completed with the passing of title to the customers and revenue
 from software development on the time-and-material basis is recognized
 based on software developed and billed to clients as per the terms of
 contracts.
 
 c) Revenue from Technical Services is recognized on a pro-rata basis
 over the period in which such services are rendered.
 
 d) Revenue from Maintenance Contracts is recognized on a pro-rata basis
 over the period in which such services are rendered.
 
 e) Revenue from Agency Commission is recognized as and when it is
 receivable.
 
 f) Interest Income on term deposits is recognized using the
 time-proportion method, based on interest rates implicit in the
 transaction.
 
 g) Revenue from Projects Division is recognized on pro-rate basis as
 per the terms of the contract over the life of the project.
 
 h) Other items of income are accounted as and when right to receive
 arises.
 
 i) Unbilled revenues represent cost and earnings in excess of billings
 as at the balance sheet date.
 
 j) Income on investments and dividends on units is recognized as and
 when right to receive the same is established.
 
 4.  Expenditure:
 
 Expenses are accounted on the accrual basis and provisions are made for
 all known losses and liabilities. The cost of software purchased for
 use in software development and services is charged to revenue in the
 same year.  Provisions for deductions towards under performance of
 service level deliverables on services are estimated by the management,
 determined on the basis of past experience.
 
 5.  inventories:
 
 Items of inventories are measured at lower of cost or net realizable
 value. Cost of inventories comprise of all cost of purchase, cost of
 conversion and other cost incurred in bringing the inventory to their
 present location and condition. Raw materials and the finished goods
 are valued on the basis of First In First Out (FIFO) method.
 
 6.  Investments:
 
 i. Long-Term Investments are carried at cost, and provision is made to
 recognize any decline, other than temporary, in the value of such
 investment.
 
 ii.  Current investments are carried at the lower of cost and
 quoted/fair value, computed category wise.
 
 7.  Impairment of Assets
 
 An asset is treated as impaired when the carrying cost of assets
 exceeds its recoverable value. An impairment loss is charged to the
 Profit and Loss Account in the year in which an asset is identified as
 impaired. The impairment loss recognized in prior accounting periods is
 reversed if there has been a change in the estimate of recoverable
 amount.
 
 8.  Benefits to employees:
 
 i. Short-Term employee benefits are recognized as an expense at the
 undiscounted amount in the profit and loss account of the year in which
 the related services are rendered.
 
 ii. Post employment benefits are recognized as an expense in the profit
 and loss account for the year in which the employee has rendered
 services. The expense is recognized at the present value of the amount
 payable to the amount payable towards contributions. The present value
 is determined using the market yields of government bonds, at the
 balance sheet date, as the discounting rate.
 
 iii. Other long-term/short-term employee benefits are recognized as an
 expense in the profit and loss account for the period in which the
 employee has rendered services. Estimated liability on account of
 long-term benefits is discounted to the current value, using the yield
 on government bonds, as on the date of balance sheet, as the
 discounting rate.
 
 iv. Actuarial gains and losses in respect of post employment and other
 long-term benefits are charged to the profit and loss account.
 
 v.  Provident Fund:
 
 The company makes contribution to Provident Fund administered by the
 Central Government under the Provident Fund Act, 1952.
 
 9.  Foreign Currency transaction:
 
 i. Transactions denominated in foreign currencies are normally recorded
 at the exchange rate prevailing at the time of transaction.
 
 ii. Monetary items denominated in foreign currencies at the year-end
 and not covered by forward exchange contracts are translated at the
 rates of exchange at the balance sheet date and resulting gain or loss
 is recognized in the profit and loss account.
 
 10.  Borrowing Costs
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalized as part of the cost
 of such assets. A qualifying asset is one that necessarily takes
 substantial period of time to get ready for intended use. All other
 borrowing costs are charged to revenue.
 
 11.  Provision, Contingent Liabilities and Contingent Assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is a present obligation as a result of past
 events and it is probable that there will be an outflow or resources.
 Contingent Liabilities are not recognized but are disclosed in the
 notes. Contingent Assets are neither recognized nor disclosed in the
 financial statement.
 
 12.  Product Warranty Expenses:
 
 Liabilities for warranties are recognized at the time, the claim is
 passed. The necessary provisions are made with respective to warranties
 claimed and passed pertaining to the year, as are received up to the
 end of one month from the close of the year.
 
 13.  Claims Receivable:
 
 Claims receivable are accounted for depending on the certainty of
 receipt and claims payable are accounted at the time of acceptance.
 
 14.  Income Tax:
 
 Provision for income tax is made for both current and deferred taxes.
 Provision for current Income tax is made at current tax rates based on
 assessable income. Deferred income taxes are recognized for the future
 tax consequences attributable to timing differences between the
 financial statements carrying amounts of existing assets and
 liabilities and their respective tax bases.The effect on deferred tax
 assets and liabilities of a change in tax rates was recognized using
 the tax rates and tax laws that have been enacted or substantively
 enacted by balance sheet date. Deferred tax assets are recognized and
 carried forward only to the extent that there is a reasonable certainty
 that sufficient future taxable income will be available against which
 such deferred tax assets can be realized.
 
 15.  Earnings per share
 
 1.  Basic Earnings per Share: In determining earnings per share, the
 company considers the net profit after tax and includes the post-tax
 effect of any extra-ordinary items. The number of shares used in
 computing the basic earnings per share is the weighted average number
 of shares outstanding during the year.
 
 2.  Diluted Earnings per share is calculated by dividing the net
 earnings available to existing and potential Equity Shareholders by
 aggregate of the weighted average number of Equity Shares considered
 for deriving basic earnings per share and also the weighted average
 number of equity shares that could have been issued on the conversion
 of all dilutive potential equity shares. Dilutive potential equity
 shares are deemed converted as of the beginning of the period, unless
 issued at a later date.
 
 The number of shares and potential dilutive equity shares are adjusted
 for any bonus issues.
 
 16.  Leases:
 
 a) FINANCE LEASE:
 
 1.  Assets given under finance lease are recognized as a sale
 transaction in the Profit and Loss Account and are treated like other
 outright sales.
 
 The Finance Lease amount is shown as the receivables at an amount equal
 to the net investment in the lease.
 
 Finance lease income is recognized over the period of the lease so as
 to yield a constant rate of return on the net investment in the lease.
 
 2.  Assets acquired under leases where the company has substantially
 transferred all the risk and rewards of ownership are classified as
 finance lease. Such assets are capitalized at the inception of the
 lease at the lower of fair value or present value of minimum lease
 payments and a liability is created for an equivalent amount. Each
 lease rental paid is allocated between the liability and the interest
 cost, so as to obtain a constant periodic rate of interest on the
 outstanding liability for each period.
 
 b) OPERATING LEASE:
 
 1.  Rentals are expensed with reference to the Lease terms and other
 considerations.
 
 17.  Sales:
 
 Sales are stated at net of returns and exclusive of sales tax.