1.  Basis of Preparation of Financial Statements:
 
 The fnancial statements are prepared under the historical cost
 convention on accrual basis and in accordance with the generally
 accepted accounting principles in India (GAAP) and accounting standards
 specifed in the Companies (Accounting Standards) Rules, 2006 notifed by
 the Central Government in terms of Section 211 (3C) of the Companies
 Act, 1956.
 
 2.  Use of Estimates:
 
 The preparation of the fnancial statements in conformity with Indian
 GAAP requires the management to make estimates and assumptions that
 affect the reported amount of assets and liabilities, disclosure of
 contingent liabilities as at the date of the fnancial statements and
 the reported amounts of income and expenses during the reported period.
 Actual results could differ from those estimates. Changes in estimates
 are refected in the fnancial statements in the period in which changes
 are made and if material, their effects are disclosed in the fnancial
 statements.
 
 3.  Fixed Assets:
 
 A.  Tangible Assets:
 
 Fixed Assets are stated at cost (net of duties and taxes) less
 accumulated depreciation. Cost includes installation and expenditure
 during construction, import duties, freight, insurance and incidental
 expenses directly attributable to the Fixed Assets. Fixed Assets
 costing less than Rs.5,000 are fully depreciated in the year of
 purchase. Assessment for indication of any impairment of Fixed Asset is
 made at the year-end and impairment loss, if any, is recognized
 immediately. Depreciation is provided pro-rata on Straight Line Method
 as per the rates and in the manner provided in the Schedule XIV of the
 Companies Act, 1956, except for the following fixed assets where the
 rates applied are higher than the rates provided in Schedule XIV of the
 Companies Act, 1956:-
 
 4.  Borrowing Costs:
 
 Borrowing costs that are attributable to acquisition, construction or
 production of a qualifying asset are capitalized as part of the cost of
 such asset. A qualifying asset is one that necessarily takes a
 substantial period of time i.e., more than 12 months to get ready for
 its intended use. All other borrowing costs are recognised as expense
 in the Profit and Loss account.
 
 5.  Impairment of Assets:
 
 At each balance sheet date, Management reviews the carrying amounts of
 its assets to determine whether there is any indication that those
 assets were impaired. If any such indication exists, the recoverable
 amount of the asset is estimated in order to determine the extent of
 impairment loss. Recoverable amount is the higher of an asset''s net
 selling price and value in use. In assessing value in use, the
 estimated future cash fows expected from the continuing use of asset
 and from its disposal are discounted to their present value using a pre
 tax discount rate that refects the current market assessments of time
 value of money and the risks specifc to the asset.
 
 Reversal of impairment loss recognized in prior years if any is
 recorded when there is an indication that the impairment losses
 recognized for the asset no longer exist or have decreased. However,
 the increase in carrying amount of an asset due to reversal of an
 impairment loss is recognized to the extent it does not exceed the
 carrying amount that would have been determined (net of depreciation)
 had no impairment loss been recognized for the asset in the prior
 years.
 
 6.  Investments:
 
 Long-term Investments are carried at cost less diminution which is
 other than temporay in value of investments. Current investments are
 carried at lower of cost and fair value.
 
 8.  Income Taxes:
 
 The current income tax charge is determined in accordance with the
 relevant tax regulations applicable to the Company. Deferred tax charge
 or credits are recognised for the future tax consequences attributable
 to timing differences that result between the Profit / (loss) offered
 for income taxes and the Profit as per the fnancial statements.
 
 Deferred tax in respect of timing difference which originate during the
 tax holiday period but reverse after the tax holiday period is
 recognised in the year in which the timing differences originate. For
 this purpose the timing differences which originate frst are considered
 to reverse frst. 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, when there is a brought forward loss or unabsorbed
 depreciation under taxation laws, deferred tax assets are recognised
 only if there is virtual certainty of realisation of such assets.
 Deferred tax assets are reviewed as at each Balance Sheet date and
 written down or written up to refect the amount that is reasonably /
 virtually certain to be realised.  The Company offsets, on a year on
 year basis, the current tax assets and liabilities, where it has a
 legally enforceable right and intends to settle such assets and
 liabilities on a net basis.
 
 Defined benefit plans
 
 The Company accounts its liability for future gratuity benefits based on
 actuarial valuation, as at the Balance Sheet date, determined every
 year using the Projected Unit Credit method. Actuarial gains and losses
 are charged to the Profit and Loss account in the period in which they
 arise. Obligation under the defned benefit plan is measured at the
 present value of the estimated future cash fow using a discount rate
 that is determined by reference to the prevailing market yields at the
 Balance Sheet date on Indian Government Bonds where the currency and
 terms of the Indian Government Bonds are consistent with the currency
 and estimated term of the defned benefit obligation.
 
 Compensated absences
 
 The Company accounts for its liability towards compensated absences
 based on actuarial valuation done as at the Balance Sheet date by an
 independent actuary using the Projected Unit Credit method. The
 liability includes the long term component accounted on a discounted
 basis and the short term component which is accounted for on an
 undiscounted basis.
 
 10.  Revenue Recognition:
 
 A.  Export Sales:
 
 Revenue from Sale of Export of Software is recognized upon transmission
 of software to customers through electronic form, when significant risks
 and rewards relating to the ownership of products are transferred to
 the customers by Company.
 
 B.  Manufactured Sales:
 
 Revenue from Sale of Manufactured Goods is recognized upon dispatch of
 goods to customer, when significant risks and rewards relating to
 ownership of products are transferred to the customers by the Company.
 Gross Sales are inclusive of Excise duty.
 
 C.  Trading Sales:
 
 Revenue from Trading sales are recognized upon transmission of software
 to customer through electronic data transfer or by endorsement of bill
 of lading as the case may be, when significant risks and rewards
 relating to ownership of products are transferred to the customers by
 the Company.
 
 D.  Service Income:
 
 Revenue from services consist primarily of revenue earned from services
 performed on a time and material basis. The related revenue is
 recongised as and when the services are rendered and related costs are
 incurred and when there is no significant uncertainity in realising the
 same.
 
 11.  Foreign currency transactions and translations:
 
 A.  Wholly Owned Foreign Subsidiaries:
 
 Wholly Owned Foreign Subsidiaries are classifed as integral operations.
 All foreign currency monetary items outstanding at the year-end are
 translated at the year-end exchange rates. The resulting exchange gains
 and losses are recognized in the Profit & loss account.
 
 B.  Foreign Branch:
 
 Assets (other than Fixed Assets) and Liabilities of the foreign branch
 are translated into Indian Rupees at the exchange rate prevailing as at
 the Balance Sheet date. Fixed Assets are carried at the exchange rate
 prevailing on the date of transaction. Revenue and Expenses are
 translated into Indian Rupees at yearly average rates.
 
 C.  Other Foreign Currency Transactions:
 
 Transactions denominated in foreign currencies are recorded at the
 exchange rates prevailing on the date of the transaction. Monetary
 items denominated in foreign currencies at year end are restated at the
 exchange rate on the date of the Balance Sheet date. Non-monetary items
 denominated in foreign currencies are carried at cost. Exchange
 differences on settlement or restatement are adjusted in the Profit and
 Loss account.
 
 12.  Leases:
 
 The Company''s significant leasing arrangements are in respect of
 operating leases for premises and equipments. The leasing arrangements
 range from 11 months to 5 years generally and are usually cancellable /
 renewable by mutual consent on agreed terms. The aggregate lease rents
 payable and receivable are charged as rent or recognised as income, in
 the Profit and Loss Account.
 
 13.  Earnings Per Share:
 
 Basic earnings per equity share (EPS) is computed by dividing the Net
 Profit/ (Loss) after Tax for the year attributable to the equity
 shareholders by the weighted average number of equity shares
 outstanding for the year.
 
 Diluted earnings per share is computed by dividing the Net Profit/(Loss)
 after Tax for the year referred to above adjusted for any attributable
 change in expenses or income that would result from the conversion of
 the dilutive potential equity shares, by the weighted average number of
 equity shares outstanding during the year as adjusted for the effects
 of all dilutive potential equity shares, except where the results are
 anti dilutive.
 
 14.  Provisions and Contingent Liabilities:
 
 A provision is recognized when an enterprise has a present obligation
 as a result of past event; it is probable that an outfow of resources
 will be required to settle the obligation, in respect of which a
 reliable estimate can be made. Provisions are not discounted to its
 present value and are determined based on best estimates required to
 settle the obligation at the Balance Sheet date. These are reviewed at
 each Balance Sheet date and adjusted to refect the current best
 estimates. Contingent liabilities are not provided for but disclosed in
 the notes to the fnancial statements.
 
 15.  Redemption Premium:
 
 Premium payable on redemption of Foreign Currency Convertible Bonds
 (''FCCB'') is charged to Securities Premium Account over the life of the
 Bond.