1) Basis of Preparation
 
 The financial statements are prepared under the historical cost
 convention and as per the requirements of the Companies Act, 1956.
 
 2) Use of Estimates
 
 The preparation of financial statements requires the management of the
 Company to make estimates and assumptions that affect the reported
 balances of assets and liabilities and disclosures relating to the
 contingent liabilities as at the date of the financial statements and
 reported amounts of income and expenses during the year. Examples of
 such estimates include provisions for doubtful debts, employee
 benefits, provision for income taxes, accounting for contract costs
 expected to be incurred to complete software development and the useful
 lives of depreciable fixed assets.
 
 3) Fixed Assets
 
 Fixed assets are stated at cost, less accumulated depreciation. Costs
 include all expenses incurred to bring the assets to its present
 location and condition. Financing cost related to acquisition of Fixed
 Assets are also included to the extent they relate to the period till
 such assets are ready to put to use.
 
 5) Leases
 
 Lease arrangements where the risks and rewards incidental to ownership
 of an asset substantially vest with the lesser, are recognised as
 operating leases. Lease rentals under operating leases are recognised
 in the profit and loss account on pro-rata basis over the period of the
 lease.
 
 6) Impairment
 
 At each Balance Sheet date, the management reviews the carrying amounts
 of its assets included in each cash generating unit to determine
 whether there is any indication that those assets were impaired. If any
 such indication exists, the recoverable amount of the asset is
 re-estimated in order to determine the extent of impairment loss.  Any
 deviation in the value of such asset is recognized in the Profit and
 Loss Account. Recoverable amount is the higher of an asset''s net
 selling price and value in use.
 
 7) Investments
 
 Long-term investments are stated at cost, less provision for other than
 temporary diminution in value. Current investments comprising
 investments in mutual funds are stated at the lower of cost and fair
 value, determined on a portfolio basis.
 
 Profit or Loss on sale of Investment is determined on the specific
 identification basis.
 
 8) Employee Benefits
 
 (i) Post Retirement Benefit Plans
 
 Payments to the defined retirement benefit schemes are recognized as
 expenses when employees have rendered services entitling them to
 contributions.
 
 In accordance to the applicable Indian Laws and as per the Accounting
 Standard 15 (Revised) for Accounting for Employees Benefit, the
 Company with effect from April 1, 2006 provides for gratuity for its
 eligible employees.  The Actuarial Gains or Losses are charged to the
 Profit and Loss Account for the period in which they occur.
 
 (ii) Employees Defined Contribution Plans
 
 The Company makes Provident Fund contributions to defined contribution
 plans for qualifying employees.  Under the schemes, the Company is
 required to contribute a specified percentage of the payroll costs to
 fund the benefits. This contribution is made to the Government''s
 Provident Fund.
 
 9) Revenue Recognition
 
 Revenues from contracts priced on a time and material basis are
 recognised when services are rendered and related costs are incurred.
 
 Sales in case of supply of goods are recognized when the goods are
 invoiced or dispatched to the customers and are recorded exclusive of
 VAT, CST, other local levies and other discounts and rebates.
 
 Revenue from sale of software licenses are recognized upon delivery
 where there is no customization required.  In case of sale of
 customized software the same is recognized on the basis of achieving
 the various milestones attached with the customization, net of all
 taxes, local levies and other discounts & rebates.
 
 Service revenue is considered on acceptance of the contract and is
 accrued over the period of the contract, net of all taxes, local levies
 and other discounts & rebates.
 
 Dividends are recorded when the right to receive payment is
 established.
 
 Interest income is recognised on time proportion basis.
 
 10) Taxation
 
 Current income tax expense comprises taxes on income from operations in
 India.
 
 Income tax payable in India is determined in accordance with the
 provisions of the Income Tax Act, 1961.
 
 Deferred tax expense or benefit is recognised on timing differences;
 being the difference between taxable income and accounting income that
 originate in one period and are capable of reversal in the subsequent
 periods. Deferred tax assets and liabilities are measured using the tax
 rates and tax laws prevailing as on the date of the Balance Sheet.
 
 In the event of unabsorbed depreciation and carry forward of losses,
 deferred tax assets are recognised to the extent that there is virtual
 certainty that sufficient taxable income will be available in future to
 realise such assets.
 
 Provisions for income taxes are presented in the balance sheet after
 offsetting Advance Taxes paid and TDS deductions for the respective
 assessment years.
 
 The Company offsets deferred tax assets and deferred tax liabilities,
 if it has a legally enforceable right and these relate to taxes on
 income levied by the same governing taxation laws.
 
 MAT credit is recognized as an asset only when and to the extent there
 are adequate and satisfying reasons that the Company will pay normal
 income tax during the specified period. The Company reviews the same at
 each balance sheet date and writes down the carrying amount of MAT
 credit entitlement to the extent that there is no satisfying reason to
 the effect that the Company will pay normal income tax during the
 specified period.
 
 11) Foreign Currency Transactions
 
 The transactions in foreign currencies on revenue accounts are stated
 at the rate of exchange prevailing on the date of transaction. The
 difference on account of fluctuation in the rate of exchange prevailing
 on the date of transaction and the date of realization is treated as
 revenue / expenditure.
 
 Differences on translation of Current Assets and Current Liabilities
 remaining unsettled at the year end are recognized in the Profit and
 Loss Account except those relating to acquisition of fixed assets which
 are adjusted in the cost of the assets.
 
 12) Employee Stock Option Scheme
 
 In accordance with the Employee Stock Option Scheme and Employee Stock
 Purchase Scheme Guidelines, 1999 issued by the Securities and Exchange
 Board of India (SEBI), the Company is following the Intrinsic Value
 Method of ESOP cost whereby the excess of Fair Market Value of the
 shares of the Company one day prior to the date of issue of the shares
 over the price at which they are issued is recognised as employee
 compensation cost.  This cost is amortized on straight-line basis over
 the period of vesting of the Option.
 
 However, during the year there were no Options vested below the Fair
 Market Value of the Shares hence no expenses have been provided on
 account of Employee Stock Options Cost (Previous Year: Nil).
 
 13) Inventories
 
 Inventories are carried at lower of cost and net realizable value. Cost
 is determined on a first in first out basis.  Purchased goods in
 transit are carried at cost. Stores and spare parts are carried at cost
 less provision for obsolescence.