a) Basis of preparation of Financial Statements:
 
 i) The financial statements of the subsidiaries used in the
 consolidation are drawn up to March 31,2010 whereas that of the parent
 company is for a period of 15 months namely June 30,2010.
 
 ii) The financial statements have been prepared under the historical
 cost convention and on the accrual basis of accounting. The accounts of
 the Parent Company and the Indian subsidiary have been prepared in
 accordance with the Accounting Standards issued by the Institute of
 Chartered Accountants of India, and those of the foreign subsidiaries
 have been prepared in accordance with the local laws and the applicable
 Accounting Standards/generally accepted accounting practices.
 
 iii) The preparation of financial statements are in conformity with the
 generally accepted accounting principles require, estimates and
 assumptions to be made that affect the reported amounts of assets and
 liabilities on that date of the financial statements and the reported
 amounts of revenues and expenses during the reporting period.
 Differences between the actual results and estimated are recognized in
 the period in which the results are known / materialized.
 
 b) Principles of consolidation:
 
 i) The financial statements of the Parent Company and its Subsidiaries
 have been consolidated on a line to line basis by adding together the
 book value of like items of assets, liabilities, income and expenses,
 after fully eliminating intra-group balances, intra-group transactions
 and the unrealized profits.
 
 ii) The financial statements of the Parent Company and its Subsidiaries
 have been consolidated using uniform accounting policies for like
 transactions and other events in similar circumstances.
 
 iii) The excess of the cost to the Parent Company of its investments in
 the subsidiaries over and above the share of equity in the respective
 subsidiary, on the acquisition date, is recognized in the financial
 statements as Goodwill and carries forward accounts.
 
 c) Fixed Assets:
 
 Fixed assets are recorded at cost of acquisition or construction. These
 are stated at historical cost.
 
 Goodwill arising on consolidation is carried forward and the same will
 be tested for impairment in the year in which the Accounting Standard
 Impairment of Assets (AS 28) becomes mandatory.
 
 d) Investments:
 
 Long Term Investments are stated at cost, which includes cost of
 acquisition and related expenses.
 
 e) Depreciation:
 
 Depreciation is provided for on Straight Line Method at the rates
 prescribed in schedule XIV to the Companies Act, 1956.
 
 f) Inventories:
 
 Work in Progress:
 
 Work in progress is valued at cost or net realizable value, whichever
 is lower. Costs include direct labour and direct overheads but exclude
 interest and finance charges and administration, selling and
 distribution expenses, which are allocated on the basis of technical
 man-hours, based on the timesheets submitted.
 
 g) Foreign Currency Transactions:
 
 Transactions in foreign currency are recorded at the original rates of
 exchange in force at the time transactions are effected. Exchange
 differences arising on settlement of transaction are recognized in the
 profit and loss account.
 
 h) Revenue recognition:
 
 IT Enabled Services revenue is recognized on the basis of chargeable
 time or achievement of prescribed milestones for billing as provided in
 the contracts or as and when the services are rendered. Revenue is
 recognized only when it is reasonably certain that the ultimate
 collection will be made.
 
 i) Income tax are accounted for in accordance with Accounting Standard
 22 (AS 22) on
 
 Accounting for Taxes on Income issued by the Institute of Chartered
 Accountants of India. Tax expense comprises both current and deferred
 tax. Current tax is measured at the amount expected to be paid to /
 recovered from the tax authorities using the applicable tax rates.
 Deferred tax assets and liabilities are recognized for future tax
 consequences attributable to timing differences between taxable income
 and accounting income that are capable of reversing in one or more
 subsequent periods and are measured using the relevant enacted tax
 rate.