2.2 Use of Estimates: The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

2.3 Tangible & Intangible Fixed Assets: Tangible Assets are stated in the accounts at historical cost together with all costs directly attributable to their acquisition less accumulated depreciation and impairment if any.

Capital work in progress comprises of the cost of fixed assets that are not yet ready for their intended use at the reporting date.

Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortisation and impairment if any.

2.4 Impairment of Assets: An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged off to the Profit & Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of the recoverable amount.

2.5 Investments: Investments are classified into current investment and long-term investments. Current investments are carried at the lower of cost and fair value, and provision is made to recognize any decline in the carrying value. Long- term investments are carried at cost, and provision is made to recognize any decline, other than temporary, in the value of such investment(s).

2.6 Revenue Recognition: Revenue from software development services and sale of software is recognised based on the milestones achieved on a percentage-of-completion basis. Product sale is recognised on delivery and passing of title. Rejections/returns if any are recognised when Software supplied is found inadequate/product supplied is returned.

Fee for manufacturing license is recognized during the year in which the company has licensed the manufacturing rights using the technology.

Income from royalty is recognized on accrual basis in accordance with the substance of the relevant agreement. Interest income is recorded on accrual basis.

2.7 Depreciation: Depreciation on Tangible Assets has been provided under Straight Line method based on useful life as estimated by the management which are less than the useful life of assets prescribed in Part C of Schedule II of the Companies Act, 2013.

Depreciation is charged on pro-rata basis for assets purchased/sold during the year.

Individual assets costing less than Rs. 5000 are depreciated in full in year of purchase.

Intangible assets are amortised over their respective individual estimated useful life on straight line basis, commencing from the date the asset is available to the Company for its use.

The Management's estimate of useful life for the various fixed assets is given below:

Machinery and Equipment                                    5 years

Tools and Fixtures                                         3 years

Computer Equipment                                         3 years

Furniture and Fixtures                                     5 years

Vehicles                                                   5 years

Library Books                                              1 year

i) Post-employment benefit plans: During the year ended 31st March 2015, in view of the few employees, the company has made provision for gratuity and leave encashment on estimated basis instead of on actuarial valuation.

Till 31st March 2014, for defined benefit schemes, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognised in full in the profit and loss account for the period in which they occur. Past service cost is recognised immediately to the extent that the benefits are already vested, and otherwise is amortized on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognised in the balance sheet represents the present value of the defined benefit obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to the present value of available refunds and reductions in future contributions to the scheme.

ii) Short-term employee benefits: The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognised during the period when the employee renders the service. These benefits include compensated absences such as paid annual leave, overseas social security contributions and performance incentives.

2.9 Provisions, Contingent Liabilities & Contingent Assets: Provisions involving substantial degree of estimation in measurement of recognizing when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements

2.10 Foreign Currency Conversion: Foreign currency transactions are dealt with in accordance with the Accounting Standard on Accounting for Effects of Changes in Foreign Exchange Rates.

2.11 Provision for Current and Deferred Tax: Provision for current tax is made after taking into consideration benefits admissible under the provisions of Income Tax Act, 1961

Deferred tax resulting from "timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable certainty that the asset will be realised in future.

In view of the losses, as a conservative policy, the Company has not recognized deferred tax assets resulting on account of unabsorbed business losses and other benefits available under Income Tax.