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, except
 for certain financial instruments which are measured at fair values,
 and comply with Accounting Standards (AS) prescribed by Companies
 (Accounting Standard) Rules, 2006, other pronouncements of the
 Institute of Chartered Accountants of India (ICAI), relevant provisions
 of the Companies Act, 1956, (the Act) to the extent applicable and the
 guidelines issued by Securities and Exchange Board of India (SEBI).The
 financial statements are presented in thousands of Indian rupees,
 unless otherwise stated, except for per share data.
 
 Use of estimates
 
 The preparation of the financial statements in conformity with
 Generally Accepted Accounting Principles (GAAP) in India requires the
 management to make estimates and assumptions that affect the reported
 amounts of assets and liabilities and disclosure of contingent
 liabilities on the date of the financial statements and reported
 amounts of revenues and expenses for the period. Actual results could
 differ from these estimates.Any revision to accounting estimates is
 recognized prospectively in the current and future periods.
 
 Revenue recognition
 
 Revenue from software development on time-and-material basis is
 recognized based on performance of related services. Revenue from
 software development on fixed price contracts is recognized as per the
 proportionate completion method, which is determined by relating the
 actual efforts to date to the estimated total efforts for each
 contract. Provisions for estimated losses, if any, on incomplete
 contracts are recorded in the period in which such losses become
 probable based on the current contract estimates.  Unbilled revenue
 represents cost and earnings in excess of billings while unearned
 revenue represents the billing in excess of cost and earnings.
 
 Interest on deployment of surplus funds is recognized using the
 time-proportion method, based on interest rates implicit in the
 transaction.
 
 Dividend income is recognized when the right to receive dividend is
 established. Profit on sale of investment is recorded upon transfer of
 title by the Company and is determined as the difference between the
 sale price and the carrying value of the investment.
 
 Expenditure
 
 Expenses are accounted on accrual basis and provision is made for all
 known losses and liabilities.
 
 Fixed assets
 
 Fixed assets are stated at cost of acquisition less accumulated
 depreciation. Direct costs are capitalized until the assets are ready
 for use.
 
 Leases under which the Company assumes substantially all the risks and
 rewards of ownership are classified as finance leases.
 
 Such assets are capitalized at the fair value of the asset or the
 present value of the minimum lease payment at the inception of the
 lease, whichever is lower. Lease payments under operating leases are
 recognized as an expense in the statement of profit and loss on a
 straight line basis over the lease term.
 
 Leasehold land is capitalised as fixed assets where all the risk and
 rewards of ownership is transferred to the lessee at the end of the
 lease term.
 
 Advances paid towards acquisition of fixed assets and the cost of
 assets not put to use before the year-end are disclosed under capital
 work-in-progress.
 
 Depreciation
 
 Depreciation on fixed assets is provided on straight-line method at
 rates, which are based on useful lives of assets as estimated by the
 management. In respect of fixed assets purchased during the year,
 depreciation is provided on a pro-rata basis from the date on which
 such asset is put to use. Individual assets costing less than Rs.5,000
 are depreciated in full in the year of purchase.
 
 The managements estimate of useful lives of various fixed assets is
 given below:
 
 Software and intellectual property ; 1- 3 years
 
 Computers and accessories             1.5 years 
                                       - 3 years
 
 Building                               25 years
 
 Other equipment                         5 years
 
 Electrical installation                 5 years
 
 Furniture and fixtures                  5 years
 
 Generator                               5 years
 
 Improvements to                         5 years 
 (i.e. useful life) or over
 
 leasehold premises : the lease term, whichever is lower
 
 Owned vehicles                         5 years
 
 Foreign currency transactions
 
 The Company is exposed to foreign currency transactions including
 foreign currency revenues and receivables.With a view to minimize the
 volatility arising from fluctuations in currency rates, the Company
 enters into foreign exchange forward contracts and other derivative
 instruments. Software development services billed to customers outside
 India and collections deposited into the foreign currency bank account
 are recorded at exchange rate prevailing on the date of the
 transaction. Expenditure in foreign currency is accounted for at the
 conversion rates prevalent when such expenditure is incurred.
 Disbursements out of foreign currency account are recorded at the
 exchange rates prevailing on the date of such disbursement. Monetary
 assets and liabilities denominated in foreign currency are translated
 at the exchange rate prevalent at the date of the balance sheet.
 Exchange differences arising on foreign currency transactions are
 recognized as income or expense in the year in which they arise.
 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.
 
 Fixed assets purchased at overseas offices are recorded at cost based
 on the exchange rate as of the date of purchase.
 
 Forward contracts and other similar instruments (together referred as
 foreign exchange derivatives) are entered into to hedge the foreign
 currency risk of firm commitments or highly probable forecasted
 transactions.
 
 With effect from April 1, 2008 the Company has adopted the principles
 of Accounting Standard (AS) 30 Financial Instruments: Recognition
 and Measurement in respect of its derivative financial instruments
 that are not covered by AS II Accounting for the effects of Changes in
 Foreign Exchange Rates and that relate to a firm commitment or a
 highly probable forecasted transaction. In accordance with AS 30, such
 derivative financial instruments, which qualify for cash flow hedge
 accounting and where Company has met all the conditions of cash flow
 hedge accounting, are fair valued at the reporting date and the
 resultant exchange loss is debited to the hedging reserve of the
 Company.This loss would be recorded in profit and loss account when the
 underlying transactions affect earnings. Other derivative instruments
 that relate to a firm commitment or a highly probable forecast
 transaction and that do not qualify for hedge accounting have been
 recorded at fair value at the reporting date and the resultant exchange
 loss is debited to profit and loss account for the year.
 
 Till 31 arch 2008,for the foreign exchange derivatives entered into to
 hedge the foreign currency risk of the underlying outstanding at the
 balance sheet date, the exchange difference was calculated and recorded
 in accordance with AS-1 1(revised 2003).The exchange difference on such
 a foreign exchange derivatives contract was calculated as the
 difference between the foreign currency amount of the contract
 translated at the exchange rate at the reporting date, or the
 settlement date where the transaction is settled during the reporting
 period, and the corresponding amount translated at the latter of the
 date of inception of the forward exchange contract and the last
 reporting date. Such exchange differences were recognised in the profit
 and loss account in the reporting period in which the exchange rate
 changes.
 
 Investments
 
 Investments are classified into long-term investments and current
 investments. Long-term investments are valued at cost less provision
 for diminution, other than temporary to recognize any decline in the
 value of such investments. Current investments are carried at lower of
 cost and fair market value. The comparison of cost and fair value is
 carried out separately in respect of each category of investment.
 
 Retirement benefits 
 
 a. Provident fund
 
 All eligible employees receive benefits from a provident fund, which is
 a defined contribution plan. Both the employee and the Company make
 monthly contributions to the fund, which is equal to a specified
 percentage of the covered employees basic salary. The Company has no
 further obligations under this plan beyond its monthly contributions.
 
 b.  Gratuity
 
 The Company provides for gratuity to its eligible employees. The
 gratuity provides a lump sum payment to the eligible employees at
 retirement, death, incapacitation or termination of employment, of an
 amount based on the respective employees basic salary and the years of
 employment with the Company. Gratuity is accrued based on an actuarial
 valuation at the balance sheet date, carried out by an independent
 actuary. The Companys gratuity plan is managed by the Life Insurance
 Corporation of India (LIC) and the contributions by the Company to this
 gratuity plan are as determined by LIC.
 
 c.  Leave Encashment
 
 Leave encashment is a long-term employee benefit and is accrued based
 on an actuarial valuations at the balance sheet date, carried out by an
 independent actuary. The Company accrues for the expected cost of short
 - term compensated absences in the period in which the employee renders
 services.
 
 Taxation
 
 The current income tax charge is determined in accordance with the
 relevant tax regulations applicable to the Company. Deferred tax charge
 or credit reflects the tax effects of timing difference between
 accounting income and taxable income for the year. The deferred tax
 charge or credit and the corresponding deferred tax liabilities or
 assets are recognized using the tax rates that have been substantially
 enacted by the balance sheet date. Deferred tax assets are recognized
 only to the extent there is reasonable certainty that the asset can be
 realized in the future, however, where there is unabsorbed depreciation
 or carry forward of losses, deferred tax assets are recognized only if
 there is a virtual certainty of realization of such assets.
 
 Deferred tax asset/liability are reviewed at the balance sheet date and
 are adjusted to reflect the amount that is reasonably certain or
 virtually certain (as the case may be) to be realized.
 
 Deferred tax asset/liability as at the balance sheet date resulting
 from timing differences between book profit and tax profit are not
 considered to the extent that such asset/liability is expected to get
 reversed in the future years within the tax holiday period.
 
 Minimum alternate tax (MAT) paid in accordance with the tax laws,
 which gives rise to future economic benefits in the form of tax credit
 against future income tax liability, is recognised as an assets in the
 balance sheet if there is convincing evidence that the company will pay
 normal tax after the tax holiday period and the resultant assets can be
 measured reliably.
 
 The Company offsets, on a year on year basis, the current tax assets
 and liabilities, where it has a legally enforceable right and where it
 intends to settle such assets and liabilities on a net basis.
 
 Consequent to the introduction of Fringe BenefitTax (FBT) effective
 April 1,2005, in accordance with the guidance note on accounting on
 accounting for fringe benefits tax issued by the ICAI, the Company has
 made provisions for FBT under income taxes.
 
 The Finance Act, 2007 included FBT on Employees Stock Option Plan. The
 Company recovers such FBT from the employees, upon the exercise of the
 stock options. Since the liability to pay FBT crystallizes only
 subsequent to the exercise of the options, the FBT liability and the
 related recovery are recorded at the time of exercise of the stock
 options.
 
 Earnings per share
 
 In determining earnings per share, the Company considers the net profit
 after tax and includes the post-tax effect of any extra- ordinary item.
 The number of equity shares used in computing basic earnings per share
 is the weighted average number of equity shares outstanding during the
 year. The number of equity shares used in computing diluted earnings
 per share comprises weighted average number of equity shares considered
 for deriving basic earnings per share and also weighted average number
 of equity shares which could have been issued on the conversion of all
 dilutive potential equity shares. The dilution is determined using the
 treasury stock method. Dilutive potential equity shares are deemed
 converted as of the beginning of the period, unless issued at a later
 date.
 
 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
 recognized 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 depreciable
 historical cost.
 
 Provisions and contingent liabilities
 
 The Company creates a provision when there is 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. When there is a possible obligation or
 a present obligation in respect of which the likelihood of outflow of
 resources is remote, no provision or disclosure is made.
 
 Provisions for onerous contracts, i.e. contracts where the expected
 unavoidable costs of meeting the obligations under the contract exceed
 the economic benefits expected to be received under it are recognised
 when it is probable that an outflow of resources embodying economic
 benefits will be required to settle a present obligation as a result of
 an obligating event, based on a reliable estimate of such obligation.
 
 Employee stock options
 
 The Company measures the compensation cost relating to employee stock
 options using the intrinsic value method. The compensation cost, if
 any, is amortized over the vesting period of the option.
 
 Cash flow statement
 
 Cash flows are reported using the indirect method, whereby net profit
 before tax is adjusted for the effects of transactions of a non-cash
 nature and any deferrals or accruals of past or future cash receipts or
 payments. The cash flows from regular revenue generating, investing and
 financing activities of the Company are segregated.