NOTE 1: Significant Accounting Policies

i Basis of preparation of financial statements

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under
the historical cost convention on the accrual basis. GAAP comprises mandatory Accounting Standards as prescribed
under Section 133 of the Companies Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014 and the
provisions of the Act (to the extent notified). Accounting policies have been consistently applied by the Company and are
consistent with those used in the previous year except where a newly issued accounting standard is initially adopted or a
revision to an existing accounting standard required a change in the accounting policy hitherto in use. As per MCA
Notification dated 16th February 2015, the companies whose shares are listed on SME exchange are exempted from the
compulsory requirement of adoption of Ind AS. As the company is covered under exempted from the compulsory
requirement of adoption of Ind AS, the company has not adopted Ind AS.

All assets and liabilities have been classified as current or non-current as per the Company's operating cycle and other
criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of services and the time between the
rendering of service and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle
as twelve months for the purpose of current and non-current classification of assets and liabilities.

All monetary values in the financial statements are presented in INR in Lakhs, except where otherwise indicated.
Quantitative disclosures relating to equity share capital are stated in number of shares.

ii Use of estimates and judgments

The preparation of the Company's financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result
in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
Difference between the actual results and estimates are recognized in the period in which actual the results are known or
materialized.

iii Going Concern Assumption

The Management believes that the Company would be in a position to continue as a going concern for the foreseeable
future and may meet its financial obligations as they fall due. Accordingly, these financial statements have been prepared
under the going concern assumption.

iv Revenue recognition

a) Service charges

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company
and the revenue can be reliably measured.

Revenue is recognized upon transfer of control of products or services to customers for the consideration which the
Company agreed to receive in exchange for those products or services. Revenue is measured at the fair value of the
consideration received or receivable, net of returns, discounts and volume rebates and tax collected from customers.

Revenue for fixed-price contracts is recognised using percentage-of-completion method. The revenue recognized under
this method would be determined on the basis of contract value, associated costs, number of activities or other suitable
basis. Further, revenue is ascertained only if , no significant uncertainty exists about the collection of amount of service
charges for the performed activities.

The Company exercises judgement for identification of performance obligations, determination of transaction price,
ascribing the transaction price to each distinct performance obligation and in determining whether the performance
obligation is satisfied at a point in time or over a period of time.

Revenue related to fixed price maintenance and support services contracts where the Company is standing ready to
provide services is recognised based on time elapsed mode and revenue is straight-lined over the period of performance.

The Company exercises judgement in determining whether the performance obligation is satisfied at a point in time or
over a period of time. The Company considers indicators such as how customer consumes benefits as services are
rendered or who controls the asset as it is being created or existence of enforceable right to payment for performance to
date and alternate use of such product or service, transfer of significant risks and rewards to the customer, acceptance of
delivery by the customer, etc.

Invoices are billed as per the contract terms and income recognized in excess of billed amounts is booked as a current
asset under "Unbilled revenue / contract assets" and billed amounts to clients in excess of income recognized to date are
booked as a current liability under "advance billings on contracts."

Expenses which are incurred but billing cannot be done due to the contract terms, such expenses are booked under
current assets under "deferred contract cost" as per the matching concept under generally accepted revenue recognition
policy.

b) Interest Income

Interest income is recognized on a time proportionate basis taking into account the amount outstanding and the
applicable effective interest rate. Interest income is included under the head "Interest Income" in the statement of profit
& loss.

c) Dividends

Dividends income is recognized when the company's right to receive dividend is established.
v Income Tax

Current tax is determined on the amount of tax payable in respect of taxable income for the year. Current income tax
assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The
tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting
date.

Deferred tax assets are recognized only to the extent there is reasonable certainty that they will be realised in future;
however, where there is unabsorbed depreciation and carry forward loss under taxation laws, deferred tax assets are
recognised only if there is a virtual certainty of realisation of such assets. Deferred tax assets are reviewed at each
Balance Sheet date and written down or written-up to reflect the amount that is reasonably/ virtually certain (as the case
may be) to be realised.

vi Property, plant and equipment

Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in
respect of periodic depreciation is derived after determining an estimate of an asset's expected useful life and the
expected residual value at the end of its life. The useful lives and residual values of Company's assets are determined by
the management at the time the asset is acquired and reviewed periodically, including at each financial year end. The
lives are based on historical experience with similar assets as well as anticipation of future events, which may impact
their life, such as changes in technology.

Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, if any. The Company
provided depreciation on Property, Plant and Equipment on written down value method over the useful life of assets as
prescribed under schedule II of Companies Act, 2013 or as estimated by the management, taking into account the nature
of the asset on technical advice and estimated usage of the asset and past history of the replacement. Costs directly
attributable to acquisition are capitalized until the property, plant and equipment are ready for use, as intended by the
management.

The estimated useful lives of assets and Depreciation method are as follows:

Assets Useful Life Method

Computer 3 years Written Down Value

Furniture and Fixture 10 years Written Down Value

Office Equipment 5 years Written Down Value

Depreciation on addition to Property, Plant & Equipment is provided on pro-rata basis from the date of acquisition.
Depreciation on sale/deduction from Property, Plant & Equipment is provided up to the date preceding the date of sale,
deduction as the case may be. Gains and losses on disposals are determined by comparing proceeds with carrying
amount. These are included in Statement of Profit and Loss.

vii Impairment of Asset :

The carrying amounts of the Company's assets including intangible assets are reviewed at each Balance Sheet date to
determine whether there is any indication of impairment. In the opinion of the management, if any such indications exist,
the assets recoverable amount is estimated, as the higher of the net selling price and the value in use. An impairment
loss is recognised whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount.
If at the Balance Sheet date, there is an indication that a previously assessed impairment loss no longer exists, the
recoverable amount is reassessed and the asset is reinstated at the recoverable amount subject to a maximum of
depreciable historical cost.

viii Intangible Asset

Costs associated with maintaining software programmes are recognised as an expense as incurred. Development costs
that are directly attributable to the design and testing of identifiable and unique software products controlled by the
Company are recognized as intangible assets when the following criteria are met:

1) It is technically feasible to complete the software so that it will be available for use

2) There is an ability to use or sell the software

3) Directly attributable employee costs that are capitalized as part of the software and other related cost, if any
which can be reliably measured.

Intangible assets are amortised on written down value basis over the estimated useful economic life. Amortization on
addition to intangible assets is provided on pro-rata basis from the date of acquisition/capitalisation.

Assets Useful Life

Software 7 years

Based on the technical assessment of useful life, intangible assets are being amortised as per the management
assessment to the estimated useful lives as are realistic and can reflect fair approximation of the period over which the
assets are likely to be used.

ix Investments

Classification of Investment:

Investment that are by their nature are readily realisable and are intended to be held for not more than one year from
the date on which such investment are made is classified as current investments. Investment other than current
investment are classified as Long term investments. Investments are initial recognised at cost.

Valuation of Investment:

i. Investment are initially recognised at cost. The cost of an investment includes acquisition charges such as
brokerage, fees and duties.

ii. the current investments are carried at cost or market value, whichever is lower

iii. interest, dividends, and rentals on investments are recognised as and when accrued

iv. Long Term Investments are stated at cost. Provision for diminution in value of Long term investments is
made only if such a decline is other than temporary.

x Employee benefits

(i) Short term employee benefits

All employee benefits falling due wholly within twelve months of rendering the service are classified as short term
employee benefits. The benefits like salaries, wages, and short term compensated absences and performance incentives
are recognized in the period in which the employee renders the related service.

(ii) Post-employment benefits

a) Defined contribution plan

The Company's state governed provident fund scheme are classified as defined contribution plans. The contribution paid
/ payable under the schemes is recognised in the statement of profit and loss in the period in which the employee
renders the related service.

b) Defined Benefit Plan- Gratuity Plan

The Company's is having gratuity plan wherein every eligible employee is entitled to the benefit equivalent to fifteen
days salary drawn for each completed year of service, subject to a maximum ceiling as per Payment of Gratuity Act, 1972.
Gratuity shall be payable to an employee on termination of employment due to superannuation, retirement, resignation,
death or permanent disablement after successful completion of the vesting period, if applicable. However, the
completion of vesting period is not applicable in the case where termination of employment is due to death or
permanent disablement.

The benefit vest after five years of continuous service and is governed as per the payment of Gratuity Act,1972. The cost
of providing benefits is determined using the projected unit credit method and the Gratuity Liability is computed as per
actuarial valuation. The retirement benefit obligation recognised in the balance sheet represents the present value of the
defined benefit obligation as reduced by the fair value of plan assets. The Company has created a Trust with respect to
establishment of Funded Group Gratuity (cash accumulation) Scheme through PNB MetLife. Contribution is made to such
fund based on regular intervals.

xi Borrowing Cost:

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other
borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that
the Company incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the
extent regarded as an adjustment to the borrowing costs.

xii Current and non-current classification

The Company presents assets and liabilities in the balance sheet as restated based on current / non-current
classification.

An asset is classified as current when it satisfies any of the following criteria:

(a) It is expected to be realised in, or is intended for sale (Service) or consumption in, the Company's normal
operating cycle.

(b) It is held primarily for the purpose of being traded;

(c) It is expected to be realised within 12 months after the reporting date; or

(d) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at
least 12 months after the reporting date.

(e) All other assets are classified as non-current.

A liability is classified as current when it satisfies any of the following criteria:

(a) It is expected to be settled in the Company's normal operating cycle;

(b) It is held primarily for the purpose of being traded.

(c) It is due to be settled within 12 months after the reporting date; or the Company does not have an unconditional right
to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the
option of the counter party, result in its settlement by the issue of equity instruments do not affect its classification.

(d) All other liabilities are classified as non-current.

xiii Lease expense

Lease payments under an operating lease recognised as an expense in the statement of profit and loss on a straight line
basis over the lease term. Company has not entered into any finance lease arrangements.

xiv Foreign Currency Transactions

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transactions. Monetary
items denominated in foreign currencies and outstanding at the balance Sheet date are translated at the exchange rate
ruling at the year end. Exchange differences arising on foreign currencies transactions are recognized as income or
expense in the period in which they arise.

xv Earnings Per Share

Basic Earnings per Share is calculated by dividing the net profit for the year attributable to equity shareholders by
weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted per share, the net profit for the year attributable to equity shareholders and the
weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential
equity shares.