I.  Basis for preparation of financial statements
 
 The financial statements are prepared under the historical cost
 convention on accrual basis and in accordance with the generally
 accepted accounting principles in India. The financial statements
 comply in all material aspects with the Accounting Standards notified
 under the Companies (Accounting Standards) Rules, 2006 and the relevant
 provisions of the Companies Act, 1956. The Accounting Policies have
 been consistently applied by the company and are consistent with those
 used in the previous year. Accounting Policies not specifically
 referred to otherwise are consistent with the generally accepted
 accounting principles followed by the company.
 
 2 Use of estimates
 
 The preparation of financial statements in conformity with the
 generally accepted accounting principles requires management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities (including contingent liabilities) as on the date of
 financial statements and revenue and expenses during the reporting
 period. The Management believes that the estimates used in preparation
 of the financial statements are prudent and reasonable. Future results
 could differ from these estimates.
 
 3.  Revenue Recognition
 
 Revenue from software development and consulting services is recognized
 either on time and material basis or fixed price basis, as the case may
 be. Revenue on time and material contracts is recognized as & when the
 related services are performed. Revenue on fixed-price contracts is
 recognized on the percentage of completion method under which the sales
 value of performance, including earnings thereon, is recognized on the
 basis of cost incurred in respect of each contract as a proportion of
 total cost expected to be incurred.
 
 Revenue from sale of licenses of software products and other products
 is recognized on transfer of title in the user license.  Maintenance
 revenue in respect of software products is recognized as & when invoice
 raised on the client over the period of the underlying maintenance
 agreement. Revenue is recorded net of service tax & Vat.
 
 Revenue from Call Center & Business Process Outsourcing Operations
 arise from both time based and unit price client contracts. Such
 revenue is recognized on completion of the related services and is
 billable in accordance with the specific terms of contracts with
 clients.
 
 Dividend income is recognized when the company''s right to receive
 dividend is established.
 
 In other cases, income is recognized when there is no significant
 uncertainty as to determination and realization.
 
 4.  Fixed Assets
 
 Tangible: Fixed Assets are stated at cost, less accumulated
 depreciation and impairment losses, if any. Cost comprises of purchase
 consideration and other directly attributable cost of bringing the
 assets to its working condition for the intended use.
 
 Intangible: Intangible assets are recorded at the consideration paid
 for acquisition of such assets and are carried at cost less accumulated
 amortization.
 
 Capital Work in Progress comprises outstanding advances paid to acquire
 fixed assets and the cost of fixed assets that are not yet ready for
 their intended use at the reporting date.
 
 5.  Depreciation / Amortization
 
 Depreciation on fixed assets is provided on straight-line method over
 useful life of assets at the rates and in the manner as prescribed in
 Schedule XIV to the Companies Act, 1956. Software Products are
 amortized over a period of Five years as considered appropriate by the
 management. Leasehold improvements are amortized over primary period of
 lease.  Subsequent upgrades of hardware are entirely charged off to
 revenue in the year of purchase.
 
 Individual assets costing up to Rs. 5000/- are fully depreciated in the
 year of purchase.
 
 6.  Investments
 
 Investments are classified into long-term investments and current
 investments based on the management''s intention at the time of
 purchase. Investments that are readily realisable and intended to be
 held for not more than a year are classified as current investments.
 All other investment are classified as long term investments. Long-term
 investments are carried at cost and provision is made to recognize any
 decline, other than temporary, in the value of such investments,
 determined separately for each investment. Current investments are
 carried at the lower of the cost and fair value and provision is made
 to recognize any decline in the carrying value. The comparison of cost
 and fair value is done separately in respect of each category of
 investments.
 
 7.  Accounting for Taxes on Income
 
 Income tax is accounted for in accordance with Accounting Standard
 (AS)-22- Accounting for taxes on income, notified under the Companies
 (Accounting Standards) Rules 2006. Income tax comprises both current
 and deferred tax.
 
 Current tax is measured on the basis of estimated taxable income and
 tax credits computed in accordance with the provisions of the Income
 tax Act, 1961.
 
 The tax effect of the timing differences that result between taxable
 income and accounting income and are capable of reversal in one or more
 subsequent periods are recorded as a deferred tax asset or deferred tax
 liability. They are measured using substantially enacted tax rates and
 tax regulations as of the Balance Sheet date.
 
 Deferred tax assets arising mainly on account of brought forward losses
 and unabsorbed depreciation under tax laws, are recognized, only if
 there is virtual certainty of its realization, supported by convincing
 evidence. Deferred tax assets on account of other timing differences
 are recognized only to the extent there is reasonable certainty of its
 realization.
 
 8.  Translation of Foreign Currency Items
 
 Transactions in foreign currency are recorded in the reporting currency
 at the rate of exchange between reporting currency and foreign currency
 in force on the date of the transactions. Monetary assets and
 liabilities denominated in foreign currency are translated at the
 exchange rate prevalent at the Balance Sheet date, Non- monetary items
 are carried at cost. The resultant gain/loss is recognized in the
 Profit & Loss Account. Overseas investments are recorded at the rate of
 exchange in force on the date of allotment/ acquisition.
 
 9.  Accounting of Employee Benefits
 
 The Company has for its employees in India, benefits such as Gratuity
 and Provident Fund.
 
 Provident Fund:
 
 The Company''s contribution to the provident fund along with the
 employee share of provident fund deducted from the salary is paid into
 Employee Provident Fund of Government of India. The Company''s
 contribution to EPF is charged to revenue.
 
 Gratuity Plan:
 
 The Company''s Gratuity benefit scheme is a defined benefit plan. The
 company''s net obligation in respect of the Gratuity benefit scheme is
 provided based on the actuarial valuation made at the end of each
 financial year on projected unit credit method.
 
 Actuarial gains and losses are recognized immediately in the Profit &
 Loss Account.
 
 10.  Provisions and Contingent Liabilities
 
 The Company recognizes a provision when there is a present obligation
 as a result of a past event that probably requires outflow of
 resources, which can be reliably estimated. Provisions are determined
 based on the best estimate of the outflow of the economic benefits
 required to settle the obligation at the reporting date. Disclosures
 for a contingent liability is made, without a provision in books, when
 there is an obligation that may, but probably will not, require outflow
 of resources. However, when there is an obligation in respect of which
 likelihood of outflow of resources is remote, no provision or
 disclosure is made. Contingent assets are neither recognized nor
 disclosed.
 
 11.  Impairment of Assets
 
 The Company assesses at each balance sheet date, whether there is any
 indication that any asset may be impaired. If any such indication
 exists, the carrying value of such assets is reduced to its recoverable
 amount and the amount of such impairment loss is charged to profit and
 loss account. The recoverable amount is the greater of the assets net
 selling price and value in use. After the impairment, assets are
 depreciated/ amortized on the revised carrying amount over its
 remaining useful life.
 
 12.  Borrowing Costs
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalized as part of the cost
 of such assets. A qualifying asset is one that necessarily takes
 substantial period of time to get ready for intended use or sale or
 those assets that are not ready for their intended use or sale when
 acquired. All other borrowing costs are charged to revenue in the
 period in which they are incurred.
 
 13.  Operating lease
 
 Lease arrangement where the risk and rewards incidental to ownership of
 an assets substantially vest with lessor, are recognized as operating
 lease. Lease rentals under operating leases are recognized in the
 profit & loss on a straight line basis over the period of lease.
 
 14.  Shares Issue Expenses
 
 Share issue expenses are written off in the years in which incurred.
 
 15.  Work-in-progress:
 
 Work in progress is valued at cost based on the technical evaluation of
 the projects by the management.
 
 16.  Earning Per Share:
 
 Basic earning per share is computed by dividing the net profit after
 tax by weighted average number of equity shares outstanding during the
 period. Diluted earnings per share is computed by dividing the net
 Profit after tax by the weighted average number of equity shares
 considered for deriving basic earnings per share and also the weighted
 average number of equity shares that could have been issued upon
 conversion of all dilutive potential equity shares. The diluted
 potential equity shares are adjusted for the proceeds receivable had
 the shares been actually issued at the fair value, which is the average
 market value of the outstanding shares. Dilutive potential equity
 shares are deemed converted as at beginning of the period, unless
 issued at a later date. Dilutive potential equity shares are determined
 independently for each period presented.
 
 The number of shares and potentially dilutive equity shares are
 adjusted retrospectively for all periods presented for any share splits
 and bonus shares issues, including for changes effected prior to the
 approval of the consolidated financial statements by the Board of
 Directors.
 
 17.  Cash and cash equivalents
 
 Cash and cash equivalents for the purpose of cash flow statement on
 balance sheet date comprise cash at bank and on hand and short term
 investments with an original maturity of three months or less.