1) Basis of Preparation of Financial Statements:
 
 The financial statements are prepared in accordance with Indian
 Generally Accepted Accounting Principles (GAAP) under the his torical
 cost convention on the accrual basis. GAAP comprises mandatory
 accounting standards notified under the Companies Act, 1956.
 
 Management evaluates all recently issued or revised accounting
 standards on an ongoing basis.
 
 2) Use of Estimates:
 
 The p reparation of financial statements in conformity with GAAP
 requires management to make estimates and assumptions that affect the
 reported balances of assets and liabilities and disclosures relating to
 contingent assets and liabilities as at the date of the financial
 statements and reported amounts of income and expenses during the
 period.  Examples of such estimates include provision for doubtful
 debts, future obligations under employee retirement benefit plans,
 income taxes, and the useful lives of fixed assets and intangible
 assets.
 
 3) Revenue recognition:
 
 Revenue from Software Development on fixed-price, fixed time frame
 contracts, where there is no uncertainty as to the measurement or
 collectability of consideration is recognized as per the percentage of
 completion method. On time and material contracts, revenue is
 recognized as the related services are rendered. Provision for
 estimated losses, if any, on uncompleted contracts are recorded in the
 period in which such losses become probable based on the current
 estimates. Annual technical services revenue and revenue from fixed
 price maintenance contracts are recognized proportionately over the
 period in which services are rendered. Revenue from the sale of user
 licenses for software applications is recognized on transfer of the
 title in the user license, except multiple element contracts, where
 revenue is recognized as per the percentage of completion method.
 
 Profit on sale of investments is recorded on transfer of title from the
 company and is determined as the difference between the sales price and
 the then carrying value of the investment. Dividend income is
 recognised where the company''s right to receive dividend is
 established. Interest and Other Income is recognised on accrual basis.
 
 4) Expenditure and provisions:
 
 All items of expenditure are accounted on accrual basis. Provisions are
 made for all known losses and liabilities, which involves substantial
 degree of estimation in measurement and when there is present
 obligation as a result of past events and it is probable that there
 will be an outflow of resources.
 
 5) Fixed Assets, Intangible Assets and Capital work in progress:
 
 Fixed assets are stated at cost less accumulated depreciation. All
 costs, directly attributable to bringing the asset to the present
 condition for its intended use of assets, are capitalised.
 
 Intangible assets are stated at the cost of acquisition /development of
 such assets and are carried at cost less accumulated amortization and
 impairment.
 
 Capital work in progress comprises outstanding advances paid to acquire
 fixed assets, and the cost of fixed assets that are not yet ready for
 their intended use at the balance sheet date.
 
 6) Depreciation and Amortisation:
 
 Depreciation on Fixed assets has been provided on Written down method
 and depreciation on assets acquired during the year is provided on
 pro-rata basis at the rates specified in schedule XIV of the companies
 act, 1956 or at the rates based on their estimated useful lives of the
 assets.
 
 Intangible assets are amortized over their respective individual
 estimated useful lives on a straight line basis commencing from the
 date the asset is available to the Company for its use.
 
 7) Impairment of Assets:
 
 The carrying amount of assets are being tested on annual basis for
 impairment so as to determine the provision required for impairment
 loss, if any, or for reversal of the provision, if any required on
 account of impairment loss recognised in previous periods.
 
 8) Investments
 
 Investments are classified into current investments and long term
 Investments. Current investments are carried at the lower of cost or
 market value. Any reduction in carrying amount and any reversals of
 such reduction are charged or credited to the profit and loss account.
 Long-term investments are carried at cost less provision made to
 recognize any decline, other than temporary, in the value of such
 investments.
 
 9) Foreign Currency Transactions:
 
 Revenue from overseas clients and collections deposited are recorded at
 the exchange rate as at the date of the respective transactions.
 Expenditure in foreign currency during the year is accounted at the
 exchange rate prevalent when such expenditure is incurred. The exchange
 differences arising on the foreign currency transactions during the
 year are recognized as income or expenses in the period in which they
 arise.
 
 Non-Monetary assets and liabilities are translated at the rate on the
 date of the transaction.
 
 Current assets and Current Liabilities denominated in foreign currency
 are translated at the exchange rate prevalent at that date o f the
 Balance Sheet. The resulting differences are also recorded in the
 Profit and Loss Account.
 
 The operations of foreign branches of the company are of integral in
 nature and the financial statements of these branches are translated
 using the same principles and procedures of the head office. The
 resulting net exchange difference on translation is also recorded in
 the Profit and Loss Account.
 
 10) Taxes on Income:
 
 Tax expense for the year comprises of current tax and deferred tax.
 Current taxes are measured at the amounts expected to be paid using the
 applicable tax rates and tax laws.  Deferred tax assets and liabilities
 are measured using tax rates and tax laws that have been enacted or
 substantively enacted by the balance sheet date. The effect on deferred
 tax assets and liabilities of a change in tax rates is recognized in
 the profit and loss account in the year of change. Deferred tax assets
 and deferred tax liabilities are recognised for the future tax
 consequences attributable to differences between the financial
 statements carrying amounts of existing assets and liabilities and
 their respective tax bases.
 
 11) Employee Benefits Short Term Benefits:
 
 Short Term Employee Benefits, at the undiscounted amount in the year in
 which the services have been rendered, are charged off to the Profit
 and Loss Account.
 
 Long Term Benefits:
 
 Provident Fund:
 
 Eligible employees receive benefit from matching contribution from the
 employer to Government Provident Fund Scheme, which is a defined
 benefit plan.  Both the employee and company make monthly contributions
 to the Provident Fund plan equal to specified percentage of the
 employee''s salary .
 
 Gratuity:
 
 In accordance with Payment o f Gratuity Act 1972, the company provides
 for Gratuity, a defined benefit plan covering eligible employees. The
 Gratuity plan provides a lump sum payment to eligible employees on
 retirement, death, incapacitation or termination of employment, of an
 amount based on the respective employee salary and the tenure of the
 employment with company. In this regard the Company is contributing its
 liability to the Gratuity Fund maintained under a master policy with
 Life Insurance Corporation of India, as advised from time to time. The
 provision is made for difference if any, between the liabilities
 determined under actuarial valuation carried out under Projected Unit
 Credit Method and the value of funds at the balance sheet date.
 
 Leave Encashment:
 
 The company provides for unutilized encashable earned leave based on
 the undiscounted value of such leave balance eligible for carry forward
 as per the policy of the company.
 
 Terminal Benefits:
 
 Terminal Benefits to employees are recognised as an expense as and when
 incurred.
 
 12) Borrowing Costs:
 
 Borrowing costs that are attributable to the acquisition of a
 qualifying asset are capitalised as part of cost of such asset till
 such time as the asset is ready for its intended use. Other borrowing
 costs are recognised as expense for the period.
 
 13) Leases:
 
 Lease of assets under which all the risks and rewards of ownership are
 effectively retained by the Lessor are classified as operating leases.
 Lease Payments under operating leases are recognised as an expense on a
 straight line basis over the period of lease.
 
 14) Proposed Dividend:
 
 Dividends, if any as recommended by the Board of Directors are
 accounted in the books of account, pending approval of the members at
 the Annual General Meeting.
 
 15) Earnings Per Share:
 
 The basic earnings per share is calculated considering the weighted
 average number of equity shares outstanding during the year.
 
 The diluted earnings per share is calculated considering the effects of
 potential equity shares on net profits after tax for the year and
 weighted average number of equity shares outstanding during the year.
 
 16) Contingent Liabilities and Contingent Assets:
 
 Contingent Liabilities, which are possible or present obligations that
 may but probably will not require outflow of resources, are not
 recognised but are disclosed in the Notes to Accounts to the financial
 statement. Contingent Assets are neither recognised not disclosed in
 the financial statements.