a) Basis of accounting and preparation of financial statements
 
 The financial statements which have been prepared under the historical
 cost convention on the accrual basis of accounting, are in accordance
 with the applicable requirements of the Companies Act, 1956 (the Act)
 and comply in all material aspects with the Accounting Standards
 prescribed by the Central Government, in accordance with the Companies
 (Accounting Standards) Rules, 2006, to the extent applicable.
 
 b) Use of estimates
 
 The preparation of the financial statements in conformity with
 generally accepted accounting principles requires management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities, disclosure of contingent liabilities as at the date of
 financial statements and the reported amounts of revenues and expenses
 during the reporting period. Key estimates include estimate of useful
 life of fixed assets, unbilled revenue, income taxes, estimated
 gain/loss on foreign exchange contracts and future obligations under
 employee retirement benefit plans. Actual results could differ from
 those estimates. Any revision to accounting estimates will be
 recognised prospectively in the current and future periods.
 
 c) Fixed Assets, Capital Work-In-Progress and Depreciation
 
 i) Fixed assets are stated at cost less accumulated depreciation. Cost
 includes inward freight, taxes and expenses incidental to acquisition
 and installation, up to the point the asset is ready for its intended
 use.
 
 ii) Depreciation is provided on Building under the Straight-Line Method
 and on other fixed assets, other than Leasehold building improvements,
 under the Written DownValue method. Depreciation is provided on a
 pro-rata basis at the rates and in the manner prescribed under Schedule
 XIV of the Companies Act, 1956, which also represent the useful life of
 fixed assets.
 
 iii) Leasehold building improvements are written off over the period of
 lease or their estimated useful life, whichever is earlier, on a
 straight-line basis.
 
 iv) Capital Advances in respect of Capital Work in progress or assets
 acquired but not ready for use are classified under Capital Work in
 Progress.
 
 v) Management evaluates at regular intervals, using external and
 internal sources, the need for impairment of any asset. Impairment
 occurs where the carrying value exceeds the present value of future
 cash flows expected to arise from the continuing use of the asset and
 its net realisable value on its eventual disposal. Any loss on account
 of impairment is expensed as the excess of the carrying amount over the
 higher of the assets net sales price or present value as determined.
 
 After impairment, depreciation is provided on the revised carrying
 amount of the asset over its remaining useful life.
 
 A previously recognised impairment loss is increased or reversed
 depending on changes in circumstances.  However, the carrying value
 after reversal is not increased beyond the carrying value that would
 have prevailed by charging usual depreciation if there was no
 impairment.
 
 d) Intangible Assets
 
 Costs relating to acquisition of computer software are capitalised as
 Intangible Assets and amortised on a straight line basis over a
 period of three years, which is the managements estimate of the useful
 lives of such software.
 
 e) Investments
 
 Investments are classified into long-term investments and current
 investments. Long-term investments are carried at cost. Provision for
 diminution in the value of long-term investments is not provided for
 unless it is considered other than temporary. Current investments are
 valued at lower of cost and net realisable value.
 
 f) Foreign Currency Transactions
 
 i) Initial Recognition - Transactions denominated in foreign currencies
 are recorded at the rates of exchange prevailing on the date of the
 transaction.
 
 ii) Conversion - Monetary assets and liabilities denominated in foreign
 currency are converted at the rate of exchange prevailing on the date
 of the Balance Sheet.
 
 iii) Exchange Differences - All exchange differences arising on
 settlement/conversion of foreign currency transactions are included in
 the Profit and Loss Account in the year in which they arise.
 
 iv) Forward Cover- The Company uses foreign exchange forward contracts
 and forward option contracts to hedge its exposure to foreign currency
 fluctuations. The premium or discount arising at the inception of
 forward option contracts and foreign exchange forward contracts is
 amortised as expense or income over the life of the contract. Any
 profit or loss arising on cancellation or renewal of foreign exchange
 forward contracts is recognised as income or expense for the year.
 
 v) Pursuant to the Announcement Accounting for Derivatives by the
 Institute of Chartered Accountants of India, the Company has adopted
 Accounting Standard 30, Financial Instruments: Recognition and
 Measurement, prescribed by the Institute of Chartered Accountants of
 India, with effect from April 1, 2008. Consequently, outstanding
 forward contracts have been treated as highly probable forecast
 transactions based on historic trends. Accordingly, gains / losses
 arising on mark to market of such open forward contracts have been
 accumulated in Hedging Reserve Account. The Company uses forward
 contracts as economic hedges and not for trading or speculative
 purposes.
 
 g) Staff benefits
 
 i) All short term employee benefits are accounted on undiscounted basis
 during the accounting period based on services rendered by employees.
 
 ii) The Companys contribution to Provident Fund is remitted to a trust
 established for this purpose based on a fixed percentage of the
 eligible employees salary and charged to Profit and Loss Account. The
 Company has categorised its Provident Fund as a defined contribution
 plan since it has no further obligations beyond these contributions.
 
 iii) The Companys contribution under a defined Superannuation Plan to
 the trust established for this purpose based on a specified percentage
 of salary of eligible employees is charged to Profit and Loss Account.
 The Company has categorised Superannuation Plan as a defined
 contribution plan since it has no further obligations beyond these
 contributions.
 
 iv) The Companys liability towards gratuity and compensated absences,
 being defined benefit plans is accounted for on the basis of an
 independent actuarial valuation done at the year end and actuarial
 gains / losses are charged to the Profit and Loss Account. Gratuity
 liability is funded by payments to the trust established for the
 purpose.
 
 h) Revenue recognition
 
 i) Revenue from software development with respect to time and material
 contracts is recognised as related costs are incurred and services are
 performed in accordance with the terms of specific contracts.
 
 ii) Revenue from fixed price contracts are recognised based on the
 milestones achieved as specified in the contracts and for interim
 stages, until the next milestone is achieved, on the percentage of
 completion basis.
 
 iii) Revenue from sale of traded software licenses and traded hardware
 is recognised on delivery to the customer.
 
 iv) Cost and earnings in excess of billings are classified as unbilled
 revenue while billings in excess of cost and earnings are classified as
 unearned revenue.
 
 v) Dividend income is recognized when the right to receive the dividend
 is established.
 
 vi) Interest income is recognized on time proportion basis.
 
 i) Lease Rentals
 
 Rent expense is recognised with reference to the terms of lease
 agreement and other consideration in respect of operating leases on a
 straight line basis. Assets given on operating lease are included under
 fixed assets of the Company. Lease income is recognised on straight
 line basis over the primary period of lease.
 
 j) Taxes on Income
 
 The provision for current taxation is computed in accordance with the
 relevant tax regulations. Deferred tax is recognised on timing
 differences between the accounting and taxable income for the year and
 quantified using the tax rates and laws enacted or substantively
 enacted as at the Balance Sheet date. Deferred tax assets in respect of
 unabsorbed depreciation and carry forward losses under tax laws are
 recognised and carried forward to the extent there is virtual certainty
 supported by convincing evidence that sufficient future taxable income
 will be available against which such deferred tax assets can be
 realised in future. Other deferred tax assets are recognised only to
 the extent there is a reasonable certainty of realisation in future.
 Such assets are reviewed at each Balance Sheet date to reassess
 realisation.
 
 Tax credit is recognized in respect of Minimum Alternate Tax (MAT) as
 per the provisions of Section 115 JAA of the Income Tax Act, 1961 based
 on convincing evidence that the Company will pay normal income tax
 within statutory time frame and is reviewed at each Balance Sheet date.
 
 k) Provisions and contingent liabilities
 
 Provisions are recognised in the financial statements in respect of
 present probable obligations, for amounts which can be reliably
 estimated.
 
 Contingent Liabilities are disclosed in respect of possible obligations
 that arise from past events, whose existence would be confirmed by the
 occurrence or non occurrence of one or more uncertain future events not
 wholly within the control of the Company.