1 Basis of preparation
 
 The financial statements have been prepared to comply in all material
 respects with the notified Accounting Standards (AS) under the
 Companies (Accounting Standards) Rules, 2006 and the relevant
 provisions of the Companies Act, 1956 (''the Act''). The financial
 statements have been prepared under the historical cost convention on
 an accrual basis. The accounting policies have been consistently
 applied by the Company and are consistent with those used in the prior
 year.
 
 2 Use of estimates
 
 The preparation of 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 at the date of the
 financial statements and the results of operations during the reporting
 year end. Although these estimates are based upon management''s best
 knowledge of current events and actions, actual results could differ
 from these estimates. Any revision in accounting estimates is
 recognised prospectively in current and future periods.
 
 3 Fixed assets and depreciation
 
 (i) Fixed assets are stated at cost of acquisition less accumulated
 depreciation and impairment losses. Cost comprises the purchase price
 and any directly attributable costs of bringing the assets to their
 working condition for their intended use.
 
 (iii) Leasehold improvements are amortised over the period of lease or
 five years, whichever is lower. Assets acquired on finance lease are
 depreciated at the lower of lease term and estimated useful life as
 stated above. Assets individually costing up to Rs. 5 are fully
 depreciated in the year of purchase.
 
 4 Intangible assets
 
 Intangible assets are recognised only if it is probable that future
 economic benefits that are attributable to the asset will flow to the
 enterprise and the cost of the asset can be measured reliably.
 Intangible assets comprise of goodwill, computer software, computer
 software license rights, license to use intellectual property and
 software development costs.
 
 (i) Goodwill arising on acquisition is the difference between the cost
 of an acquired business and the aggregate of the fair value of that
 entity''s identifiable assets and liabilities and the same is amortised
 on a straight line basis over its economic life or the period defined
 in the Court scheme.
 
 (ii) Costs incurred towards development of computer software meant for
 internal use are capitalised subsequent to establishing technological
 feasibility. Computer software is amortised over an estimated useful
 life of two to six years.
 
 (iii) Computer software licences are capitalised on the basis of costs
 incurred to acquire and bring to use the specific software, and are
 amortised on straight line basis over an estimated useful life of two
 to four years.
 
 (iv) License to use intellectual property rights are amortised on
 straight line basis over an estimated useful life of six years.
 
 (v) The amortisation period and method used for intangible assets are
 reviewed at each financial year end.
 
 5 Borrowing costs
 
 Borrowing costs that are directly attributable to the acquisition or
 construction of a qualifying asset are capitalised as part of the cost
 of that asset till such time the asset is ready for its intended use. A
 qualifying asset is an asset that necessarily takes a substantial
 period of time to get ready for its intended use
 
 6 Lease accounting Finance lease
 
 Assets acquired under lease where the Company has substantially all the
 risks and rewards of ownership are classified as finance lease. Such
 lease is capitalised at the inception of the lease at lower of the fair
 value or the present value of the minimum lease payments and a
 liability is created for an 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. Lease management fees, legal charges and
 other initial direct costs are capitalised.
 
 Operating lease
 
 Assets acquired on lease where a significant portion of the risks and
 rewards of ownership are retained by the lessor are classified as
 operating lease. Lease rentals on assets taken on operating lease are
 recognised as an expense in the Profit and Loss Account on a straight
 line basis over the lease term. Operating leases, which are renewed,
 after the primary lease period and have not been opted for transfer of
 ownership, are reclassified to finance lease prospectively.
 
 7 Investments
 
 Investments that are readily realisable and intended to be held for not
 more than a 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 diminution in the value is made to
 recognise a decline, other than temporary, in the value of the
 investments.
 
 8 Inventories
 
 Inventories comprise licenses purchased by the Company for resale to
 customers and are stated at the lower of cost and net realisable value.
 Cost of licenses is determined using the first-in-first-out method.
 
 9 Impairment of assets
 
 At each balance sheet date, the Company assesses whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the Company estimates the recoverable amount. The recoverable
 amount is the greater of the asset''s net selling price and value in
 use. In assessing value in use, the estimated future cash flows are
 discounted to their present value at the weighted average cost of
 capital. If the carrying amount of the asset exceeds its recoverable
 amount, an impairment loss is recognised in the Profit and Loss Account
 to the extent the carrying amount exceeds the recoverable amount.
 
 10 Revenue recognition
 
 Revenue is recognised to the extent that it is probable that economic
 benefit will flow to the Company and that revenue can be reliably
 measured.
 
 (i) Revenue from time and material contracts are recognised as related
 services are performed.
 
 (ii) Revenue from fixed price contracts for delivering services is
 recognised under the proportionate-completion method wherein revenue is
 recognised based on services performed to date as a percentage of total
 services to be performed.
 
 (iii) Revenue from maintenance contracts are recognised rateably over
 the term of the maintenance contract on a straight-line basis.
 
 (iv) Revenue from certain services are recognised as the services are
 rendered, on the basis of an agreed amount in accordance with the
 agreement entered into by the Company.
 
 (v) Revenue from sale of user licenses for software application is
 recognised on transfer of the title in the user license.
 
 (vi) Interest income is recognised on a time proportion basis taking
 into account the amount outstanding and the rate applicable.
 
 (vii) Provision 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.
 
 (viii) Deferred and unearned revenues represent the estimated unearned
 portion of fees derived from certain fixed-rate claim service
 agreements. Deferred revenues are recognised based on the estimated
 rate at which the services are provided. These rates are primarily
 based on a historical evaluation of actual claim closing rates.
 Unearned revenues for fixed fee contracts are recognised on a pro-rata
 basis over the term of the underlying service contracts, which are
 generally one year.
 
 (ix) Unbilled revenue represents costs and earnings in excess of
 billings as at the balance sheet date
 
 11 Foreign currency transactions
 
 (i) Initial recognition:
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency at the date of the
 transaction.
 
 (ii) Conversion
 
 Foreign currency monetary items are reported using the closing rate.
 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.
 
 (iii) Exchange differences
 
 Exchange differences arising on the settlement of monetary items or on
 reporting the Company''s monetary items at rates different from those at
 which they were initially recorded during the year, or reported in
 prior year financial statements, are recognised as income or as expense
 in the year in which they arise except those arising from investments
 in non-integral operations.
 
 Exchange differences arising on a monetary item that, in substance,
 forms part of the Company''s net investment in a non-integral foreign
 operation is accumulated in a foreign currency translation reserve in
 the financial statements until the disposal of the net investment, at
 which time they are recognised as income or as expense.
 
 (iv) Forward exchange contracts not intended for trading or speculation
 purposes:
 
 The premium or discount arising at the inception of forward exchange
 contracts is amortised as expense or income over the life of the
 contract. Exchange differences on such contracts are recognised in the
 statement of profit and loss in the period in which the exchange rates
 change. Any profit or loss arising on cancellation or renewal of
 forward exchange contract is recognised as income or as expense for the
 period.
 
 12 Employee benefits
 
 (a) Short term employee benefits:
 
 All employee benefits falling due wholly within twelve months of
 rendering the service are classified as short term employee benefits,
 which include benefits like salaries, short term compensated absences,
 performance incentives, etc. and are recognised as expense in the
 period in which the employee renders the related service.
 
 (b) Defined-contribution plans:
 
 The Company''s contribution towards defined contribution plans (where
 Company pays pre-defined amounts and does not have any legal or
 informal obligation to pay additional sums) for post employment
 benefits, namely, Provident Fund, Employee Pension Scheme, etc. are
 charged to Profit and Loss Account as expense during the period in
 which the employees perform the service.
 
 (c) Defined-benefit plan:
 
 The Company has a defined benefit plan for employees in form of
 Gratuity, the liability in respect of which is determined on the basis
 of valuation carried out by an independent actuary (using the projected
 unit credit method) at the balance sheet date.
 
 (d) Other long term employee benefits:
 
 Compensated absences that are not expected to occur within twelve
 months after the end of the period in which the employee renders
 related services are recognised as a liability at the present value of
 the defined benefit obligation based on actuarial valuation (under
 projected unit credit method) carried out at the balance sheet date.
 
 (e) Actuarial gains and losses:
 
 Actuarial gains and losses comprise experience adjustments and the
 effect of changes in the actuarial assumptions, and are recognised
 immediately in the Profit and Loss Account as income or expense.
 
 (f) Deferred employee stock compensation costs:
 
 Stock options granted to the employees under employee stock option
 plans (ESOP''s) are recognised in accordance with the accounting
 treatment prescribed by Securities and Exchange Board of India
 (Employee Stock Option Scheme and Employee Stock Purchase Scheme)
 Guidelines, 1999. Accordingly, the excess of market value of the stock
 options, as on the date of grant, over the exercise price of the
 options, is recognised as deferred employee stock compensation
 expenses, and is charged to Profit and Loss Account on ''graded vesting''
 basis over the vesting period of the options. The fair value of the
 options is measured on the basis of an independent valuation performed
 or the market price in respect of stock options granted.
 
 13 Taxes on income
 
 Tax expense comprises current and deferred taxes. Current income tax is
 measured at the amount expected to be paid to the tax authorities in
 accordance with local tax laws applicable in the respective countries.
 Deferred income taxes reflect the impact of current year timing
 differences between taxable income and accounting income for the year
 and reversal of timing differences of earlier years.
 
 Deferred tax is measured based on the tax rates and the tax laws
 enacted or substantively enacted at the balance sheet date. Deferred
 tax assets and deferred tax liabilities across various countries of
 operation are not set-off against each other as the Company does not
 have a legal right to do so. Deferred tax assets are recognised only to
 the extent that there is reasonable certainty that sufficient future
 taxable income will be available against which such deferred tax assets
 can be realised. In situations where the Company has unabsorbed
 depreciation or carry forward tax losses, all deferred tax assets are
 recognised only if there is virtual certainty supported by convincing
 evidence that they can be realised against future taxable profits.
 
 At each balance sheet date, the Company re-assesses unrecognised
 deferred tax assets. It recognises unrecognised deferred tax assets to
 the extent that it has become reasonably certain or virtually certain,
 as the case may be, that sufficient future taxable income will be
 available against which such deferred tax assets can be realised.
 
 The carrying amount of deferred tax assets are reviewed at each balance
 sheet date. The Company writes-down the carrying amount of a deferred
 tax asset to the extent that it is no longer reasonably certain or
 virtually certain, as the case may be, that sufficient future taxable
 income will be available against which deferred tax asset can be
 realised. Any such write-down is reversed to the extent that it becomes
 reasonably certain or virtually certain, as the case may be, that
 sufficient future taxable income will be available.
 
 Minimum Alternative Tax (''MAT'') credit is recognised as an asset only
 when and to the extent there is convincing evidence that the Company
 will pay normal income tax during the specified period. In the year in
 which the MAT credit becomes eligible to be recognised as an asset in
 accordance with the recommendations contained in the Guidance Note on
 Accounting in respect of Minimum Alternative Tax issued by the
 Institute of Chartered Accountants of India, the said asset is created
 by way of a credit to the Profit and Loss Account and disclosed as MAT
 Credit Entitlement.  The Company reviews the same at each balance sheet
 date and writes down the carrying amount of MAT Credit Entitlement to
 the extent there is no longer convincing evidence to the effect that
 Company will pay normal income tax during the specified period.
 
 14 Earnings / (loss) per share
 
 Basic earnings/ (loss) per share is calculated by dividing the net
 profit/ (loss) for the year attributable to equity shareholders by the
 weighted average number of equity shares outstanding during the year.
 The weighted average number of equity shares outstanding during all the
 years presented is adjusted for capital reduction.
 
 For the purpose of calculating diluted earnings/ (loss) per share, the
 net profit/ (loss) for the year attributable to equity shareholders and
 the weighted average number of shares outstanding during the year are
 adjusted for the effects of all dilutive potential equity shares.
 
 15 Provisions and Contingent Liabilities
 
 Provisions are recognised when the Company has a present obligation as
 a result of past events, for which it is probable that an outflow of
 resources embodying economic benefits will be required to settle the
 obligation and a reliable estimate of the amount can be made.
 Provisions are reviewed regularly and are adjusted where necessary to
 reflect the current best estimates of the obligation. When the Company
 expects a provision to be reimbursed, the reimbursement is recognised
 as a separate asset, only when such reimbursement is virtually certain.
 
 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 cash 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.
 
 Contingent liabilities are disclosed when there is a possible
 obligation or a present obligation that may (but probably will not)
 require an outflow of resources.
 
 16 Segment reporting
 
 Identification of segments: The Company''s operating businesses are
 organised and managed separately according to the nature of services
 rendered. The analysis of geographical segments is based on the
 geographical location of the Company''s customer.
 
 Inter segment transfers: The Company generally accounts for inter
 segment sales and transfers as if the sales or transfers were to third
 parties at current market prices.
 
 Allocation of common costs: Common allocable costs are allocated to
 each segment according to the relative contribution of each segment to
 the total common costs.
 
 Unallocated items: The unallocated items include general corporate
 income and expense items which are not allocated to any business
 segment.
 
 17 Exceptional items
 
 Exceptional items are generally non-recurring items of income and
 expense within profit or loss from ordinary activities, which are of
 such size, nature or incidence that their disclosure is relevant to
 explain the performance of the Company for the year.
 
 18 Project work expenses
 
 Project work expenses represents amounts charged by sub-contractors and
 cost of hardware and software incurred for execution of projects. These
 expenses are recognised on an accrual basis.
 
 19 Cash and cash equivalents
 
 Cash and cash equivalents in the balance sheet comprise cash at bank
 and on hand and short-term investments with an original maturity of
 three months or less.
 
 20 Derivative instruments
 
 With respect to derivative instruments (foreign currency forward
 contracts) to hedge the risks associated with highly probable forecast
 transactions, the (gain)/ loss arising on forward exchange contracts in
 foreign currency, entered into to hedge highly probable forecast
 transactions, which qualify for hedge accounting, are accounted for
 under Hedging Reserve to be ultimately recognised in the Profit and
 Loss Account when the forecasted transactions arise, as per the
 principles of hedge accounting enunciated in Accounting Standard 30,
 Financial Instruments: Recognition and Measurement issued by the
 Institute of Chartered Accountants of India.