a) Basis of preparation of Financial Statements
 
 The financial statements have been prepared to comply in all material
 respects with the notified Accounting Standards by Companies Accounting
 Standard Rules 2006 (as amended) and the relevant requirements of the
 Companies Act, 1956. The financial statements have been prepared under
 historical cost convention on an accrual basis of accounting except in
 case of assets for which impairment is carried out. The accounting
 policies have been consistently applied by the company.
 
 b) Use of Estimates
 
 The preparation of the financial statements in conformity with the
 generally accepted accounting principles requires management to make
 estimates and assumptions that affect the reported amount of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the reported amount of revenues and expenses
 during the reporting year. Difference between the actual result and
 estimates are recognized in the year in which the results are
 known/materialized.
 
 c) Fixed Assets
 
 i) Fixed Assets are stated at cost of acquisition less accumulated
 depreciation and impairment. Cost includes any borrowing costs directly
 attributable to the acquisition/ construction of fixed assets and
 bringing the assets to its working condition for its intended use.
 
 ii) Exchange difference arising on account of liabilities incurred for
 acquisition or construction of Fixed Assets is adjusted in the carrying
 amount of related Fixed Assets.
 
 d) Capital Work-in-Progress
 
 Advances paid towards the acquisition of fixed assets, costs of assets
 not ready for use before the year-end and expenditure during
 construction period that is directly or indirectly related to
 construction, including borrowing costs are included under Capital
 Work-in-Progress.
 
 e) Depreciation
 
 i) Depreciation on Fixed Assets is provided on straight-line method at
 the rates specified in schedule XIV of the Companies Act, 1956.
 Depreciation is charged on pro-rata basis for assets purchased/ sold
 during the year.  Individual assets costing up to Rs. 5,000/- are
 depreciated in full in the year of purchase.
 
 Depreciation on equipments installed at customer premises is being
 provided at 20% on useful life estimated by the management.
 
 Licence fee is amortised over the licenced period.
 
 ii) Cost of leasehold land is amortized over lease period on a
 straight-line basis.
 
 iii) Cost of software is amortised over its useful life on a
 straight-line basis.
 
 f) Impairment of Assets
 
 i) The carrying amounts of assets are reviewed at each balance sheet
 date if there is any indication of impairment based on
 internal/external factors. An impairment loss is recognized wherever
 the carrying amount of an asset exceeds its recoverable amount. The
 recoverable amount is the greater of the assets net selling price and
 value in use. In assessing value in use, the estimated future cash
 flows are discounted at their present value at the weighted average
 cost of capital.
 
 ii) After impairment, depreciation is provided on the revised carrying
 amount of the asset over its remaining useful life.
 
 iii) A previously recognized impairment loss is increased or reversed
 depending on changes in circumstances.  However, the carrying value
 after reversal is not increased beyond the carrying value that would
 have prevailed by charging usual depreciation if there was no
 impairment.
 
 g) Investments
 
 Investments that are readily realizable and intended to be held for not
 more than a year are classified as current investments. All other
 investments are classified as long-term investments. Long Term
 investments are stated at cost. Provision for diminution in the value
 of long- term investments is made only if such diminution is other than
 temporary. Current Investments are carried at the lower of cost and
 fair value and provisions are made to recognize the decline in the
 carrying value.
 
 m) Taxes on Income
 
 Income taxes are computed using the tax effect accounting method where
 taxes are accrued in the same period, as the related revenue and
 expenses to which they relate. The differences that result between
 profit offered for income tax and the profit before tax as per
 financial statements are identified and deferred tax assets or deferred
 tax liabilities are recorded for timing differences, namely differences
 that originate in one accounting period and are capable of reversal in
 future. Deferred tax assets and liabilities are measured using tax
 rates and tax laws enacted or substantively enacted by the balance
 sheet date.
 
 Deferred tax assets are recognized only if there is reasonable
 certainty that they will be realized. However, where the Company has
 unabsorbed depreciation or carried forward losses under taxation laws,
 a much stricter test, viz, virtual certainty of realization, is applied
 for recognition of deferred tax assets. Deferred tax-assets are
 reviewed for the continuing appropriateness of their respective
 carrying values 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) of realisation.
 
 n) Operating Leases
 
 Assets given on operating leases are included in fixed assets. Lease
 income is recognised in the Profit and Loss Account on a straight-line
 basis over the lease term. Costs, including depreciation are recognised
 as an expense in the Profit and Loss Account. Initial direct costs such
 as legal costs, brokerage costs, etc. are recognised immediately in the
 Profit and Loss Account.
 
 o) Earnings Per Share
 
 The Company reports basic and diluted earnings per share in accordance
 with Notified AS 20 under the Companies (Accounting Standards) Rules,
 2006 (as amended) issued by The Institute of Chartered Accountants of
 India on Earnings Per Share. Basic earnings per share is computed by
 dividing the net profit or loss for the period attributable to equity
 shareholders after deducting attributable taxes by the. weighted
 average number of equity shares outstanding during the period. Diluted
 earnings per share are computed by dividing the net profit or loss for
 the period by the weighted average number of equity shares outstanding
 during the period. Both profit for the year and weighted average
 numbers of shares are adjusted for the effects of all diluted potential
 equity shares except where the results are anti-dilutive.
 
 p) Provisions, Contingent Liabilities and Contingent Assets
 
 As per Notified AS 29 under the Companies (Accounting Standards) Rules,
 2006 (as amended), Provisions, Contingent Liabilities and Contingent
 Assets, issued by the Institute of Chartered Accountants of India, the
 Cornpany recognizes provisions (without discounting to its present
 value) only when it has a present obligation as a result of a past
 event, it is probable that an outflow of resources embodying economic
 benefits will be required to settle the obligation as and when a
 reliable estimate of the amount of the obligation can be made.
 
 No provision is recognized for -
 
 Any possible obligation that arises from past events and the existence
 of which will be confirmed only by the occurrence or non-occurrence of
 one or more uncertain future events not wholly within the control of
 the Company;
 
 or
 
 Any present obligation that arises from past events but is not
 recognized because -
 
 - It is not probable that an outflow of resources embodying economic
 benefits will be required to settle the obligation; or
 
 - A reliable estimate of the amount of obligation cannot be made.
 
 Such obligations are disclosed as Contingent Liabilities. These are
 assessed continually and only that part of the obligation for which an
 outflow of resources embodying economic benefits is probable, is
 provided for, except in the extremely rare circumstances where no
 reliable estimate can be made.
 
 q) Miscellaneous Expenditure
 
 Expenditure on issue of shares / foreign currency convertible bonds
 (FCCBs) / Global Depository Receipts (GDRs) / shares under Qualified
 Institutional Placements (QIP) and premium on redemption of FCCBs are
 adjusted against Securities Premium account.