(1) Basis of Accounting
 
 The accounts have been prepared on the basis of historical costs and in
 accordance with applicable accounting standards except where otherwise
 stated. The company has adopted accrual method of accounting
 
 (2) Fixed Assets
 
 I.  Fixed Assets are stated at cost less depreciation. Cost comprises
 the purchase price and any attributable cost of bringing the assets to
 working condition for its intended use.
 
 II.  Expenditure for additions, improvements and renewals are
 capitalised and expenditure for maintenance and repairs is charged to
 the Profit & Loss Account. When assets are sold or discarded, their
 cost and accumulated depreciation is removed from the accounts and any
 gain or loss, resulting from their disposal is included in the Profit &
 Loss Account.
 
 III. Capital work-in-progress
 
 Advances paid towards the acquisition of fixed assets, and the cost of
 assets not put to use before the year-end, are disclosed with the
 capital work-in- progress.
 
 (3) Depreciation
 
 Depreciation is provided using the Straight Line Method at the rates
 anb in the manner specified in Schedule XIV to the Companies Act, 1956
 other than on Plant & Machinery and Digital Content. Depreciation on
 additions during the year is provided on a pro-rata basis from the date
 of addition. Plant & Machinery mainly consist of computers and
 peripherals and the rate of depreciation @ 20% has been applied and
 depreciation on Digital Content have been provided @ 17.5% keeping in
 view the useful life of the assets.
 
 (4) Inventories
 
 Inventories are valued at the lower of cost or estimated net realisable
 value.
 
 (5) Revenue Recognition
 
 (i) Sales are net of Tax, where applicable.
 
 (ii) Expenses are net of recoveries where applicable.
 
 (6) Foreign Currency Transaction
 
 (i) Transactions in Foreign Currencies for Import of Material are
 converted at the rates prevailing on the date of transaction.
 
 (ii) Current Assets realizable in Foreign Currency and Liabilities
 payable in Foreign Currency (other than for the Purchase of Fixed
 Assets) are not restated at the year end, however the exchange
 gain/loss arising out of the rates prevailing on the date of remittance
 is taken effected.
 
 (iii) No liabilities incurred for the acquisition of Fixed Assets, the
 loss or gain arising on account of difference in exchange rate, as at
 the year end, is regarded as an adjustment of the cost of the relevant
 assets, and the same is included in the carrying amount of the related
 Fixed Assets.
 
 (7) Research and Development
 
 Research and Development expenses, of revenue nature, are charged to
 the Profit and Loss Account of the year in which they are incurred and
 those of capital nature are shown as addition to the respective fixed
 assets.
 
 (8) Retirement Benefits
 
 Provision for gratuity has been made as per the provisions of the
 Payment of Gratuity Act, 1972.
 
 (9) Amortization of Miscellaneous Expenditure
 
 Preliminary Expenses & Public Issue Expenses are written off over a
 period of ten years.