(i) Basis of Preparation of Financial Accounts :
 
 These financial statements have been prepared under the historical cost
 convention, on accrual basis and are in accordance with the generally
 accepted accounting principles (GAAP) in India, the provisions of the
 Companies Act, 1956 and the Accounting Standards as specif ed in the
 Companies (Accounting Standards) Rules, 2006 prescribed by the central
 government.
 
 (ii) Use of Estimates :
 
 The preparation of financial statements requires management to make
 estimates and assumptions that affect the reported balances of assets
 and liabilities and disclosures relating to contingent liabilities as
 at the date of the financial statement and reported amounts of income
 and expenses during the period. Any revision to accounting estimates
 and or difference, if any, between the actual results and estimates is
 recognized in the period in which the results are known.
 
 (iii) Tangible Fixed Assets :
 
 All f xed assets are stated at cost less accumulated depreciation. Cost
 is inclusive of freight, duties, levies and any directly attributable
 cost of bringing the assets to their present working condition.
 
 Capital Work-in-Process represents cost of f xed assets that are not
 yet ready for their intended use as at the Balance sheet date and
 includes advances paid.
 
 (iv) Intangible Assets
 
 Intellectual Property Rights (IPR) and Software Licenses which have
 been separately paid for and put to use are shown under  Fixed Assets
 in the Balance sheet.
 
 Expenses incurred for software product development are expensed as
 incurred unless technical and commercial feasibility of the project is
 demonstrated, future economic benef ts are probable, the Company has an
 intention and ability to complete and use or sell the software and the
 costs can be measured reliably. Such expenses and the advances paid for
 acquiring intellectual property rights & licenses for projects under
 development on balance sheet date are shown under Capital Work in
 Process.
 
 (v) Depreciation
 
 Depreciation on f xed assets is provided on Straight Line Method at the
 rates prescribed under Schedule XIV of the Companies Act, 1956 on
 pro-rata basis, except depreciation on assets used in BOOT projects
 which are
 
 depreciated equally over the period of respective project; depreciation
 on foreign branch assets has been provided at the rates followed under
 the relevant law of the foreign country which are: Computers 5%;
 Furniture & Fixture 5% and Computer Software are amortized over 5
 years.
 
 (vi) Impairment of Assets
 
 An asset is treated as impaired when the carrying cost of assets
 exceeds its recoverable value. An impairment loss, if any is charged to
 the Profit and Loss Account in the year in which an asset is identif ed
 as impaired. The impairment loss recognized in prior accounting period
 is reversed if there has been a change in the estimate of recoverable
 amount.
 
 (vii) Leases
 
 Lease arrangement, where the risks and rewards incidental to ownership
 of an asset substantially vests with the lessor, are recognized as
 operating leases. Lease payments under operating lease are recognized
 as an expense in the Profit & loss account.
 
 (viii) Foreign Currency Transactions
 
 a.  Transactions denominated in foreign currencies are recorded at the
 rate of exchange prevailing on the date of transactions.
 
 b.  Monetary items denominated in foreign currencies at the year end
 are restated at year end rates.
 
 c.  Non -monetary foreign currency items are carried at cost.
 
 d.  In respect of branches, which are non-integral operations, all
 assets and liabilities, both monetary and non-monetary, are translated
 at closing rate, while all income and expenses are translated at
 average exchange rate for the year. The resulting exchange differences
 are accumulated in the Foreign Currency Translation Reserve.
 
 e.  Any income or expense on account of exchange difference either on
 settlement translation or restatement, is recognized in the Profit and
 loss account.
 
 (ix) Investments
 
 Current investments are carried at the lower of the cost and fair
 market value.
 
 Long-term investments are stated at cost. Cost includes costs
 incidental to acquisition such as legal costs,
 
 investment banking fees etc. Provision for diminution in the value of
 long-term investments is made only if such a decline is other than
 temporary.
 
 (x) Inventories
 
 The portion of the Software development contracts which has remained
 unbilled, though partly completed is inventorised as Software
 Development – Work-in- Process.
 
 The aggregate of Software Development income and the inventories viz.
 Software Development – Work-in- Process is restricted to the contract
 value or the net realizable value of the work completed or the cost,
 whichever is less. For this purpose, manpower cost of the software
 development team and other directly attributable costs are considered
 for valuation.
 
 (xi) Revenue Recognition
 
 Revenue from Software Development and services contracts are recognized
 to the extent of billings based on achievements as per customer conf
 rmed milestone, if available, or else according to the management
 estimate of the completed work.
 
 Revenues in case of hardware and software trading are recognized as and
 when these are delivered.
 
 (xii) Employee Benef ts
 
 a) Short-term employee benef ts are recognized as an expense at the
 undiscounted amount in the Profit and loss account of the year in which
 the related service is rendered.
 
 b) In respect of Indian operations of the Company, post-employment and
 other long-term employee benef ts are recognized as an expense in the
 Profit and loss account for the year in which the employee has rendered
 services. The expense is recognized at the present value of the amount
 payable determined using actuarial valuation techniques. Actuarial
 gains and losses in respect of post employment and other long term
 benef ts are charged to the Profit and loss account.
 
 c) In respect of employee stock options, the intrinsic value of the
 options, i.e. the excess of market price of the underlying share on the
 date of the grant over the exercise price of the option is accounted as
 deferred employee compensation cost to be amortized over the vesting
 period.
 
 (xiii) Borrowing Cost
 
 Borrowing costs that are specif cally attributable to the acquisition
 or construction of qualifying asset are capitalised as part of the cost
 of such asset till such time as the asset is ready for its intended
 use. A qualifying asset is an asset that necessarily requires/takes a
 substantial period of time to get ready for its intended use. All other
 borrowing costs, i.e. not specif cally attributable to the qualifying
 asset are charged to revenue in the period in which those are incurred.
 
 (xiv) Taxes on Income
 
 Current Income Tax comprises of taxes on income from operations in
 India and in foreign jurisdictions. Income tax liability in India is
 determined and provided in accordance with the provisions of the Income
 Tax Act, 1961.
 
 Deferred tax resulting from timing differences between taxable income
 and accounting income is accounted for using the tax rates and laws
 that are enacted or substantively enacted as on the balance sheet date.
 The deferred tax asset is recognized and carried forward only to the
 extent that there is a virtual certainty that the asset will be
 realized in future.
 
 (xv) Provisions, Contingent Liabilities and Contingent Assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is a present obligation as a result of past
 events and it is probable that there will be an outf ow of resources.
 Contingent Liabilities are not recognized but are disclosed in the
 notes. Contingent assets are neither recognized nor disclosed in the f
 nancial statements.