GENERAL
 
 Basis of Preparation of Financial Statements
 
 1.  The Financial Statements are prepared on mercantile basis under the
 historical cost convention in accordance with the generally accepted
 accounting principles in India, Accounting Standards notified under
 section 211(3C) of the Companies Act 1956, read with the Companies
 (Accounting Standard) Rules, 2006 and the other relevant provisions of
 the Companies Act, 1956.
 
 Fixed Assets
 
 2.  All Fixed Assets are stated at Cost less accumulated Depreciation.
 Costs include purchase price and all other attributable costs of
 bringing the assets to working condition for intended use.
 
 Depreciation
 
 3.  Depreciation on all assets is charged proportionately from the date
 of acquisition/ installation on written down value method at rates
 prescribed in Schedule XIV of the Companies Act, 1956. Assets costing
 less than Rs. 5000/- individually have been fully depreciated in the
 year of purchase.
 
 Investments
 
 4.  Stock/Securities acquired and intended to be held for a longer
 period are classified as Investments.
 
 5.  Investments are valued at cost of acquisition with the provision
 where necessary for diminution, other than temporary, in the value of
 investments.
 
 Revenue Recognition
 
 6.  Income is accounted on accrual basis except Dividend.
 
 Retirement Benefit
 
 7.  None of the Employee has completed the service period to become
 eligible for payment of gratuity.
 
 Income Tax
 
 8.  Provision for taxes comprising of current tax is measured in
 accordance with Accounting Standard 22- Accounting for Taxes on
 Income issued by the Institute of Chartered Accountants of India.
 
 9.  Tax expenses comprise of current and deferred tax.
 
 10.  Provision for current income tax and fringe benefit tax is made on
 the basis of relevant provisions of Income Tax Act, 1961 as applicable
 to the financial year.
 
 11. Deferred Tax is recognized subject to the consideration of prudence
 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.
 
 Provisions, Contingent Liabilities & Contingent Assets
 
 Disclosures in terms of Accounting Standards (AS 29) Provisions,
 Contingent Liabilities and Contingent Assets issued by the Institute of
 Chartered Accountants of India :- 12.  The Company creates a provision
 when there is a present obligation as a result of past event that
 probably requires an outflow of resources and a reliable estimate can
 be made of the amount of the obligation.
 
 13.  A disclosure for a contingent liability is made when there is a
 possible obligation or present obligation that probably will not
 require an outflow of resources or where reliable estimate of the
 amount of the obligation cannot be made.
 
 14.  Contingent Assets are neither recognized nor disclosed.
 
 NBFC Companies
 
 15.  Information as required in terms of paragraph 13 of Non Banking
 Financial (Non Deposit accepting or holding) Companies Prudential Norms
 (Reserve Bank) Directions, 2007 is given in separate annexure.
 
 Others
 
 16.  None of the Raw Materials, Stores, Spares and Components consumed
 or purchased during the year have been imported.
 
 17.  None of the Earnings / Expenditures is in Foreign Currency.
 
 18.  Balance of Debtors, Creditors, Deposits, Loans and Advances are
 subject to confirmation.
 
 19.  In the opinion of the Board, the Current Assets, Loans & Advances
 are approximately of the value stated if realized in the ordinary
 course of business. The provision for depreciation and all known
 liabilities are adequate and not in excess of the amounts reasonably
 necessary.
 
 20.  Investments of the Company have been considered by the management
 to be of a long term nature and hence they are long term investments
 and are valued at cost of acquisitions.
 
 Segment Report
 
 21.  Segment reporting as defined in Accounting Standard 17 as the
 Company was primarily engaged in the business of Software and hardware
 and Mobile phones trading. (Segment Report as under).