1.  Accounting Concepts The accounts are prepared on historical cost
 concept based on accrual method of accounting as a going concern, and
 consistent with generally accepted accounting principles in accordance
 with the mandatory accounting standards and disclosure requirements as
 per the provisions of the Companies Act, 1956.
 
 2.  Income Recognition
 
 (A) Income from services rendered is accounted for:
 
 (a) In the case of cost plus jobs, on the basis of amount billable
 under the contracts;
 
 (b) In the case of lumpsum services and lumpsum Turnkey contracts, as
 proportion of actual direct costs of the work to latest estimated total
 direct cost of the work; and
 
 (c) In the case of contracts providing for a percentage fee on
 equipment/project cost, on the basis of physical progress duly
 certified.
 
 (B) Other claims including interest on outstandings are accounted for
 when there is virtual certainty of ultimate collection.
 
 3.  Turnover/work-in-progress
 
 (A) No income has been taken into account on jobs for which:
 
 a) The terms of remuneration receivable by the Company have not been
 settled and/or scope of work has not been clearly defined and,
 therefore, it is not possible in the absence of settled terms to
 determine whether there is a profit or loss on such jobs. However, in
 cases where minimum undisputed terms have been agreed to by the
 clients, income has been accounted for on the basis of such undisputed
 terms though the final terms are still to be settled.
 
 b) The terms have been agreed to at lumpsum services / lumpsum turnkey
 contracts and physical progress is less than 25%.
 
 (B) The Cost of such jobs as stated in ''A'' above is carried forward as
 work-in-progress at actual direct cost.
 
 4.  Fixed Assets
 
 a) Fixed Assets are stated at cost of acquisition or construction less
 accumulated depreciation. Cost of acquisition is inclusive of freight,
 duties, taxes and other incidental expenses.
 
 b) The cost of any software purchased initially along with the computer
 hardware is being capitalised along with the cost of the hardware. Any
 subsequent acquisition / upgradation of software is being capitalized
 as an asset.
 
 c) Whenever any new office space is acquired and partitions/fixtures
 and fittings are provided to make it suitable for use, the expenditure
 on the same is capitalised and depreciation charged as per Para 5 (a)
 below. All expenditure on subsequent modifications and repairs of
 partitions/fixtures and fittings are charged to revenue in the year it
 is incurred.
 
 5.  Depreciation
 
 a) Depreciation on fixed assets is charged on straight line method
 either on the basis of rates arrived at with reference to the useful
 life of the assets evaluated by the Committee consisting of Technical
 experts and approved by the Management, or the minimum rates prescribed
 under Schedule XIV of the Companies Act, 1956, whichever is higher.
 
 b) No depreciation has been provided in the case of land which is on
 perpetual lease or where no lease deeds have been executed. Premium
 paid on land where lease agreements have been executed are written off
 over the period of lease proportionately.
 
 c) The cost of capitalized software is amortized over a period of three
 years from the date of its acquisition. However, software individually
 costing upto Rs. 5 lakhs is fully amortized during the year of its
 acquisition.
 
 d) 100% depreciation is provided on library books in the year of
 purchase since individual books are low value items.
 
 e) Assets individually costing less than Rs. 5,000 are fully depreciated
 in the year of acquisition.
 
 6.  Impairment of Assets Impairment of cash generating assets are
 reviewed for impairment whenever an event or changes in circumstances
 indicate that carrying amount of such assets may not be recoverable. If
 such assets are considered to be impaired, the impairment to be
 recognized is measured by the amount by which the carrying amount of
 the assets exceeds the fair value of assets. If it is found that some
 of the impairment losses already recognized needs to be reversed the
 same are recognized in the statement of Profit & Loss Account in the
 year of reversal.
 
 7.  Inventories Inventories in respect of stores, spares and chemicals
 etc. are valued at cost or net realisable value which ever is less.
 Cost is determined on First In First Out Basis.
 
 8.  Provision for Contractual Obligations The provision for estimated
 liabilities on account of guarantees & warranties etc. in respect of
 lumpsum services and lumpsum turnkey contracts awarded to the Company
 are being made on the basis of assessment of risk and consequential
 probable
 
 liabilities on each such job made by the management.
 
 9.  Foreign Currency Transactions
 
 a) Fixed assets are incorporated at the rates in force when transaction
 takes place.
 
 b) Current Assets and Current Liabilities including Cash and Bank
 balances are carried at the year end exchange rates. Any gain or loss
 on account of exchange difference is charged to the Profit & Loss
 Account.
 
 c) Foreign currency transactions (Income & Expenditure) are accounted
 for at average monthly rates based on market rates for preceding month
 in respect of Pound Sterling, US Dollars, Euro, Australian Dollar,
 Canadian Dollar, Swiss Franc & Japanese Yen and in respect of other
 currencies at Government rates prevailing in the month. Payments to
 sub- contractors/vendors from Foreign Currency (FCN) account are
 recorded at bank rate prevailing on the date of transaction.
 
 10.  Research and Development Expenditure/Government Grant
 
 (a) Revenue expenditure on Research and Development is charged to
 Profit and Loss Account in the year the expenditure is incurred.
 Capital Expenditure on Research and Development is capitalized under
 respective fixed assets.
 
 (b) Government grant of capital nature for promotion and setting up of
 R&D Centre is treated as Capital Reserve and shown separately under
 Reserves and Surplus.
 
 (c ) Funds received from Government Agencies to carry out Research and
 Development activities are shown under the Head ''other income'' as
 adjustment against expenditure incurred.  Unutilised funds are shown
 under other liabilities.
 
 11.  Retirement / Other Long Term Employee Benefits
 
 a) Liability in respect of Gratuity, a defined benefit plan, is being
 paid to a fund maintained by LIC and administered through a separate
 irrevocable trust set up by the company. Difference between the fund
 balance and accrued liability at the end of the year based on actuarial
 valuation is charged to Profit & Loss Account.
 
 b) Liability towards carried forward leave and post retirement medical
 benefits, being defined benefit plans, is paid to a fund maintained by
 LIC and difference between the fund balance and accrued liability at
 the end of the year based on actuarial valuation is charged to Profit &
 Loss Account.
 
 c) Contributions with respect to Provident Fund, a defined contribution
 plan, are made to the trust set-up by the Company for the purpose.
 
 d) Contribution with respect to Superannuation Scheme, a defined
 contribution plan for employees is paid to a fund maintained by the
 Life Insurance Corporation of India and administered through separate
 irrecoverable Trust set up by the Company.
 
 e) Liability in respect of other long term/terminal employee benefits,
 being defined benefit plans, is recognized on the basis of actuarial
 valuation.
 
 f) Voluntary retirement expenses are charged to Profit & Loss Account
 in the year of its incurrence.
 
 12.  Expenses/Income booked to Profit and Loss Account are after
 adjustment of excess/short provisions. However, in cases of specific
 provisions where no expenses/income has been incurred/received against
 such provisions, the same are adjusted as excess provisions of previous
 years written back/Miscellaneous income.
 
 13.  Dividend on Units/Shares is accounted for on declaration made upto
 the close of the accounting year. Income distributed/undistributed
 surplus on investment in an AOP is recognised as income as per
 intimation received.
 
 14.  Taxes On Income
 
 Current tax is determined as the amount of tax payable in respect of
 taxable income for the period. Deferred tax is recognized on timing
 difference, being the difference between taxable income and accounting
 income that originate in one period and are capable of reversal in one
 or more subsequent periods. Deferred Tax Asset is recognized only to
 the extent that there is a reasonable certainty that sufficient future
 taxable income will be available against which such deferred assets can
 be realised.
 
 15.  Investment
 
 Long-term investments are carried at cost. However, when there is a
 decline, other than temporary, in the value of a long-term investment,
 the carrying amount is reduced to recognise the decline.  Current
 Investments are carried at the lower of cost or market value.