a) System of Accounting:
 
 I) The Company follows Mercantile System of Accounting and recognises
 Income and Expenditure on accrual basis except those with significant
 uncertainties.
 
 ii) Financial Statements are prepared on Historical Costs basis.
 
 iii) Taxes on Income:
 
 Current Tax is determined as the amount of tax payable in respect of
 taxable income for the period. Deferred tax is recognised subject to
 consideration of prudance in respect of deferred tax assets, on timing
 difference, being the difference between taxable income and accounting
 income that originate in one year and are capable of reversal in one or
 more subsequent year.
 
 iv) Segment Accounting:
 
 Segment Revenue, Segement Results, Segment Assets and Segment
 Liabilities include the respective amounts identifiable to each of the
 segments.
 
 v) Revenue:
 
 1) Revenue recognition is in, accordance with Accounting Standard 9.
 sale are accounted net of return claims etc.
 
 2) Revenue from Software development on time and material contract is
 recognised based on software development and billed to clients as per
 the terms of specific contracts.
 
 3) Income from Services is recognised upon rendering of services and
 Income from maintenance contract relating to the year is recognised
 when the contract is entered into on a time proportionate basis.
 
 vi) Investments:
 
 Investment is valued at cost which are Long Term in nature .
 
 vii) Valuation of Inventories:
 
 a) Closing Stock is valued at cost or Market Value whichever is lower.
 
 b) Work In Progress;Computer Software product development is in
 progress and all cost incurred related to the same till the Balance
 Sheet date is transferred to work in Progress Account.
 
 viii) Sundry Debtorsand Loans & Advances:
 
 Sundry Debtors and Loans & Advances are stated at the value realised in
 the ordinary course of business. Irrecoverable amounts, if any, are
 accounted and /or provided for as per managements judgement or only
 upon final seulc-vent of accounts with the parties.
 
 ix) Fixed Assets & Depreciation:
 
 Since company dont have any Fixed Assets at beginning or year end
 itsValuation and Depreciation thereon is not applicable.
 
 x) Contingent Liabilities if any are not provided and are disclosed in
 Notes on Accounts .