1) (a) Basis of preparation of financial statements
 
 The financial statements have been prepared and presented under the
 historical cost convention on the accrual basis of accounting in
 accordance with the Generally Accepted Accounting Principles in India
 (Indian GAAP) and comply with the mandatory Accounting Standards
 (AS) prescribed by Companies (Accounting Standard) 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 unless otherwise
 stated.
 
 (b) Use of estimates
 
 The preparation of financial statements is in conformity with generally
 accepted accounting principles, which requires the management of the
 Company to make estimates and assumptions that affect the reported
 amounts of assets and liabilities and disclosure of liabilities at the
 date of the financial statements and the results of operations during
 the reporting periods. Although these estimates are based upon
 managements best knowledge of current events and actions, actual
 results could differ from those estimates. Significant estimates used
 by management in the preparation of these financial statements include
 the estimates of the economic useful lives of the fixed assets,
 provisions for bad and doubtful debts, employee benefits, estimation of
 revenue and project completion. Any revision to accounting estimates
 are recognised prospectively.
 
 3) Significant accounting policies
 
 i.  Revenue recognition
 
 The Company derives its revenues primarily from engineering design
 services. Service income comprises of income from time-and-material and
 fixed-price contracts. Revenue from time-and-material contracts is
 recognised in accordance with the terms of the contracts with clients.
 Revenue from fixed-price contracts is recognised using the percentage
 of completion method, calculated as the proportion of the efforts
 incurred up to the reporting date to the estimated total efforts.
 Provisions for estimated losses on incomplete contracts are recorded in
 the period in which such losses become probable based on the current
 contract estimates.Revenue from the software development priced on
 time and materials basis is recognised when the services are rendered
 and related costs are incurred.Unbilled receivables represent costs
 incurred and revenue recognized on amounts to be billed in subsequent
 periods as per contractual terms. The related billings are made within
 the next operating cycle.Interest income is recognised on a time
 proportion basis taking into account the amount outstanding and the
 rate applicable.Dividend on investments is recognised when the right to
 receive dividend is established.
 
 ii.  Fixed assets and depreciation/amortisation
 
 a) Tangible
 
 Fixed assets are carried at the cost less accumulated depreciation and
 impairment losses. The cost of fixed assets comprises its purchase
 price and other costs attributable to bringing such assets to its
 working condition for its intended use. Advances paid towards the
 acquisition of fixed assets outstanding at each Balance Sheet date and
 the cost of fixed assets not ready for their intended use before such
 date are disclosed as capital work-in-progress. Expenditure on account
 of modification / alteration in fixed assets, which increases the
 future benefit from the existing asset beyond its previous assessed
 standard of performance, is capitalised.
 
 
 b) Intangible
 
 Intangible asset comprises of non-compete fee, software and goodwill,
 is stated at cost less accumulated amortisation and impairment losses.
 
 c) Depreciation and amortisation
 
 Depreciation on fixed assets is provided on straight line method at
 rates which are either greater than or equal to the corresponding rates
 in Schedule XIV to the Act, based on the managements estimates of
 useful life, as follows:
 
 Depreciation/amortisation is charged on a proportinate basis for all
 the assets purchased and sold during the year. Fixed assets
 individually costing less than Rs. 5,000 are fully depreciated in the
 year of purchase.
 
 Assets under capital lease are amortised over their estimated useful
 life or the lease term whichever is lower.  Non-compete fee is
 amortised over the period of expected benefit. Goodwill on amalgamation
 is being amortised over a period of 5 years.
 
 iii.  Impairment of assets
 
 The Company assesses at each Balance Sheet date whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the Company estimates the recoverable amount of the asset. If
 such recoverable amount of the asset or the recoverable amount of the
 cash generating unit to which the asset belongs is less than its
 carrying amount, the carrying amount is reduced to its recoverable
 amount. The reduction is treated as an impairment loss and is
 recognised in the Profit and Loss Account. If at the Balance Sheet date
 there is an indication that if a previously assessed impairment loss no
 longer exists, the recoverable amount is reassessed and the asset is
 reflected at the recoverable amount subject to a maximum of depreciated
 historical cost.
 
 iv.  Investments
 
 Investments that are readily realisable and intended to be held for not
 more than one year are classified as current investments. All other
 investments are classified as long-term investments. Current
 investments are carried at lower of cost and fair value determined on
 an individual investment basis. Long-term investments are carried at
 cost.  However, provision for dimunition in value is made to recognise
 a decline other than temporary in the value of the long-term
 investments.
 
 v.  Borrowing costs
 
 Borrowing costs directly attributable to the acquisition, construction
 or production of qualifying assets are capitalised as part of assets.
 Other borrowings cost are recognized as an expense in the period in
 which they are incurred.
 
 vi.  Foreign currency transactions
 
 Foreign currency transactions are recorded at the exchange rate
 prevailing on the date of the transaction. Differ- ences arising out of
 foreign currency transactions settled during the year are recognised in
 the profit and loss account.Monetary items outstanding at the balance
 sheet date and denominated in foreign currencies are recorded at the
 exchange rate prevailing at the end of the year. Differences arising
 there from are recognised in the profit and loss account.Non-monetary
 items which are carried in terms of historical cost denominated in a
 foreign currency are reported using the exchange rate at the date of
 the transaction; and non-monetary items which are carried at fair value
 or other similar valuation denominated in a foreign currency are
 reported using the exchange rates that existed when the values were
 determined.Investments in foreign companies are recorded at the
 exchange rate prevailing on the date of making the respective
 investments.
 
 vii.  Employee benefits
 
 Expenses and liabilities in respect of employee benefits are recorded
 in accordance with Accounting Standard 15 Employee Benefits.
 
 Provident fund
 
 The Company contributes to the statutory provident fund of the Regional
 Provident Fund Commissioner, in accor- dance with Employees provident
 fund and Miscellaneous Provision Act, 1952. The plan is a defined
 contribution plan and contribution paid or payable is recognised as an
 expense in the period in which the employee renders services.
 
 Gratuity
 
 Gratuity is a post employment benefit and is a defined benefit plan.
 The liability recognised in the Balance Sheet represents the present
 value of the defined benefit obligation at the Balance Sheet date, less
 the fair value of plan assets (if any), together with adjustment for
 unrecognised actuarial gains or losses and past service cost. Indepen-
 dent actuaries using the Projected Unit Credit Method calculate the
 defined benefit obligation annually.
 
 Actuarial gains or losses arising from experience adjustments and
 changes in actuarial assumptions are credited or charged to the Profit
 and Loss Account in the year in which such gains or losses arises.
 
 Compensated Absences
 
 The Company also provides benefit of compensated absences under which
 un-availed leave are allowed to be accumulated to be availed in future.
 The scheme is considered as a long term benefit. The compensated
 absences comprises of vesting as well as non vesting benefit and the
 liability is determined in accordance with the rules of the Company and
 is based on actuarial valuations made on projected unit method at the
 balance sheet date for the balance.
 
 viii.  Income taxes
 
 Current tax
 
 Provision is made for income tax under the tax payable method, based on
 the liability computed, after taking credit for allowances and
 exemptions. Minimum Alternative Tax (MAT) paid in accordance with the
 tax laws which gives rise to future economic benefits in the form of
 adjustments of future income tax liability, is considered as an asset
 if there is convincing evidence that the Company will pay normal tax
 after the tax holiday period. MAT credit entitle- ment can be carried
 forward and utilised for a period of ten years from the year in which
 the same is availed.  Accordingly, it is recognised as an asset in the
 balance sheet when it is probable that the future economic benefit
 associated with it will flow to the Company and the asset can be
 measured reliably. Tax expenses comprise both current and deferred
 taxes.
 
 Deferred tax
 
 Deferred tax charge or credit reflects the tax effect of timing
 differences between accounting income and taxable income for the
 period. The deferred tax charge or credit and the corresponding
 deferred tax liabilities or assets are recognised using the tax rates
 that have been enacted or substantively enacted by the Balance Sheet
 date. Deferred tax assets are recognised only to the extent there is
 reasonable certainty that the assets can be realised in future;
 however, where there is unabsorbed depreciation or carried 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.
 
 Unrecognised deferred tax assets of earlier years are re-assessed and
 recognised to the extent that it has become reasonably certain that
 future taxable income will be available against which such deferred tax
 assets can be realised.
 
 ix.  Provisions and contingent liabilities
 
 The Company creates a provision when there is a present obligation as a
 result of a past event that probably requires an outflow of resources
 and a reliable estimate can be made of the amount of the obligation. A
 disclosure for a contingent liability is made when there is a possible
 obligation or a present obligation that may but probably will not
 require an outflow of resources. Disclosure is also made in respect of
 a present obligation that probably requires an outflow of resources,
 where it is not possible to make a reliable estimate of the related
 outflow. Where there is a present obligation in respect of which the
 likelihood of outflow of resources is remote, no provision or
 disclosure is made.Contingent assets are not recognised in the
 financial statements. However, contingent assets are assessed con-
 tinually and if it is virtually certain that an inflow of economic
 benefits will arise, the asset and related income are recognised in the
 period in which the change occurs.
 
 x.  Leases
 
 Lease where the lessor effectively retains substantively all the risks
 and benefits of ownership of the leased assets are classified as
 operating leases. Operatig lease payments are recognised as an expense
 in the profit and loss account on a straight-line basis over the lease
 term.Assets acquired on lease where the Company has substantially all
 the risks and rewards of ownership are classified as finance leases.
 Such assets are capitlised at the inception of the lease at the lower
 of fair value or the present value of mnimum lease payments and a
 liability is created for equivalent amount.  Each lease rental paid is
 allocated between the liability and the interest cost, so as to obtain
 a constant periodic rate of interest on the outstanding liability for
 each period. The resultant interest cost is charged to profit and loss
 account on accrual basis.