1.  BASIS OF ACCOUNTING
 
 The financial statements of the Company have been prepared and
 presented under the historical cost convention, on the accrual basis of
 accounting in accordance with the accounting principles generally
 accepted in India and comply with the mandatory Accounting Standards
 notified under section 211(3C) of the Companies Act, 1956 and the
 relevant provisions of the Companies Act, 1956.
 
 2.  FIXED ASSETS
 
 Fixed Assets including in-house capitalisation and Capital
 Work-In-Progress are stated at cost except those which are revalued
 from time to time on the basis of current replacement cost / value to
 the Company, net of accumulated depreciation.
 
 Assets taken on finance lease on or after April 1, 2001 are stated at
 fair value of the assets or present value of minimum lease payments
 whichever is lower.
 
 Intangible Assets are stated at cost net of amortisation.
 
 3.  DEPRECIATION
 
 (a) Depreciation has been calculated as under:
 
 (i) Depreciation on fixed assets is provided on a prorata basis using
 the straight-line method based on economic useful life determined by
 way of periodical technical evaluation.
 
 (ii) The assets taken on finance lease on or after April 1, 2001 are
 depreciated over their expected useful lives.
 
 (b) Leasehold land is amortised over a period of lease. Leasehold
 improvements are amortised on straight line basis over the period of
 three years or lease period whichever is lower.
 
 (c) Intangible assets other than Goodwill are amortised over their
 estimated useful life i.e. over a period of 1-5 years.
 
 (d) Goodwill arising on acquisition is tested for impairment at each
 balance sheet date.
 
 (e) Individual assets costing Rs. 5,000 or less are depreciated/
 amortised fully in the year of acquisition.
 
 4.  INVESTMENTS
 
 Long-term investments are stated at cost of acquisition inclusive of
 expenditure incidental to acquisition. Any decline in the value of the
 said investment, other than a temporary decline, is recognised and
 charged to profit and loss account.
 
 Current investments are carried at lower of cost or fair value where
 fair value for mutual funds is based on net asset value and for bonds
 is based on market quote.
 
 5.  INVENTORIES
 
 Raw Materials and Components held for use in the production of
 inventories and Work-In-Progress are valued at cost if the finished
 goods in which they will be incorporated are expected to be sold at or
 above cost. If there is a decline in the price of materials/ components
 and it is estimated that the cost of finished goods will exceed the net
 realisable value, the materials/ components are written down to net
 realisable value measured on the basis of their replacement cost. Cost
 is determined on the basis of weighted average.
 
 Finished Goods and Work-In-Progress are valued at lower of cost and net
 realisable value.
 
 Cost of Finished Goods and Work-In-Progress includes cost of raw
 materials and components, direct labour and proportionate overhead
 expenses. Cost is determined on the basis of weighted average.
 
 Stores and Spares are valued at lower of cost and net realisable
 value/future economic benefits expected to arise when consumed during
 rendering of services. Adequate adjustments are made to the carrying
 value for obsolescence. Cost is determined on the basis of weighted
 average.
 
 Goods in Transit are valued inclusive of custom duty, where applicable.
 
 6.  FOREIGN CURRENCY TRANSACTIONS
 
 a) Foreign currency transactions are recorded at the exchange rates
 prevailing at the date of transaction. Exchange differences arising on
 settlement of transactions, are recognised as income or expense in the
 year in which they arise.
 
 b) At the balance sheet date, all monetary items denominated in foreign
 currency, are reported at the exchange rates prevailing at the balance
 sheet date and the resultant gain or loss is recognised in the profit
 and loss account. 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.
 
 c) Pursuant to notification under section 211(3C) of the Companies Act,
 1956 issued by Ministry of Corporate Affairs on March 31, 2009 amending
 Accounting Standard - 11 (AS - 11) ''The Effects of Changes in Foreign
 Exchange Rates (revised 2003)'', exchange differences arising on
 translation of long term foreign currency monetary items having a term
 of 12 months or more are recognised as stated below:
 
 (i) Exchange differences relating to long term foreign currency
 monetary items, arising during the year, in so far as they relate to
 the acquisition of a depreciable capital asset are added to or deducted
 from the cost of the asset and depreciated over the balance life of the
 asset.
 
 (ii) In other cases, such differences are accumulated in the Foreign
 Currency Monetary Translation Difference Account and amortised over
 the balance period of the long term assets/liabilities but not beyond
 March 31, 2011.
 
 d) In case of forward foreign exchange contracts where an underlying
 asset or liability exists at the balance sheet date, the difference
 between the forward rate and the exchange rate at the inception of the
 contract is recognised as income or expense over the life of the
 contract.
 
 e) In case of forward foreign exchange contracts taken for highly
 probable/forecast transactions, the net loss, if any, calculated on
 ''Mark to Market'' principle as at the balance sheet date is recorded.
 
 f) Profit or loss arising on cancellation or renewal of a forward
 contract is recognised as income or expense in the year in which such
 cancellation or renewal is made.
 
 7.  EMPLOYEE BENEFITS
 
 Defined Benefit:
 
 Liability for gratuity is provided as determined on actuarial valuation
 made at the end of the year which is computed using projected unit
 credit method. Gains/losses arising out of actuarial valuation are
 recognised immediately in the profit and loss account as
 income/expense.
 
 Company''s contributions towards recognised Provident Fund is accounted
 for on accrual basis. The Company has an obligation to make good the
 shortfall, if any, between the return from the investment of the
 provident fund trust and the notified interest rate.
 
 Defined Contribution:
 
 Company''s contributions towards Superannuation Fund is accounted for on
 accrual basis.
 
 The Company makes defined contributions to a superannuation trust
 established for the purpose. The Company has no further obligation
 beyond the monthly contributions.
 
 Other Benefit:
 
 Liability for leave encashment is provided as determined on actuarial
 valuation made at the end of the year which is computed using projected
 unit credit method. Gains/losses arising out of actuarial valuation are
 recognised immediately in the profit and loss account as
 income/expense.
 
 8.  REVENUE RECOGNITION
 
 (a) Sales, after adjusting trade discount, are inclusive of excise duty
 and the related revenue is recognised (after providing for expenses to
 be incurred connected to such sale) on transfer of all significant
 risks and rewards of ownership to the customer and when no significant
 uncertainty exists regarding realisation of the consideration.
 
 (b) Composite contracts, outcome of which can be reliably estimated,
 where no significant uncertainty exists regarding realisation of the
 consideration, revenue is recognised in accordance with the percentage
 completion method, under which revenue is recognised on the basis of
 cost incurred as a proportion of total cost expected to be incurred.
 The foreseeable losses on the completion of contract, if any, are
 provided for immediately.
 
 (c) Service income includes income:
 
 i) From maintenance of products and facilities under maintenance
 agreements and extended warranty, which is recognised upon creation of
 contractual obligations rateably over the period of contract, where no
 significant uncertainty exists regarding realisation of the
 consideration.
 
 ii) From software services:
 
 (a) The revenue from time and material contracts is recognised based on
 the time spent as per the terms of contracts.
 
 (b) In case of fixed priced contracts revenue is recognised on
 percentage of completion basis. Foreseeable losses, if any, on the
 completion of contract are recognised immediately.
 
 9.  GOVERNMENT GRANTS
 
 Revenue grants, where reasonable certainty exists that the ultimate
 collection will be made are recognised on a systematic basis in profit
 and loss account over the periods necessary to match them with the
 related cost which they are intended to compensate.
 
 10.  ROYALTY
 
 Royalty expense, net of performance based discounts, is recognised when
 the related revenue is recognised.
 
 11.  LEASES
 
 a) Assets taken under leases where the Company has substantially all
 the risks and rewards of ownership are classified as finance leases.
 Such assets are capitalised at the inception of the lease at the lower
 of fair value or the present value of 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 outstanding liability
 for each period.
 
 b) Initial direct costs relating to the finance lease transactions are
 included as part of the amount capitalised as an asset under the lease.
 
 c) Assets taken on leases where significant portion of the risks and
 rewards of ownership are retained by the lessor are classified as
 operating leases. Lease rentals are charged to the profit and loss
 account on straight-line basis over the lease term.
 
 d) Profit on sale and leaseback transactions is recognised over the
 period of the lease.
 
 e) Assets given under finance lease are recognised as receivables at an
 amount equal to the net investment in the lease.  Inventories given on
 finance lease are recognised as deemed sale at fair value. Lease income
 is recognised over the period of the lease so as to yield a constant
 rate of return on the net investment in the lease.
 
 f) Assets leased out under operating leases are capitalised. Rental
 income is recognised on accrual basis over the lease term.
 
 g) In sale and leaseback transactions and further sub-lease resulting
 in financial leases, the deemed sale is recognised at fair value at an
 amount equal to the net investment in the lease where substantially all
 risks and rewards of ownership have been transferred to the sub-lessee.
 A liability is created at the inception of the lease at the lower of
 fair value or the present value of minimum lease payments for sale and
 leaseback transaction. Each lease rental payable/receivable is
 allocated between the liability/receivable and the interest
 cost/income, so as to obtain a constant periodic rate of interest on
 outstanding liability/receivable for each period.
 
 12.  INCOME TAXES
 
 The current charge for income taxes is calculated in accordance with
 the relevant tax regulations.
 
 Deferred tax assets and liabilities are recognised for timing
 differences between the financial statements carrying amounts of
 existing assets and liabilities and their respective tax bases.
 Deferred tax assets and liabilities are measured using the tax rates
 that have been enacted or substantially enacted at the balance sheet
 date. Deferred tax asset is recognised and carried forward when it is
 reasonably certain that sufficient taxable profits will be available in
 future against which deferred tax assets can be realised except in case
 of carry forward tax losses or unabsorbed depreciation where deferred
 tax asset is recognised only when it is virtually certain that
 sufficient taxable profit will be available in future against which
 deferred tax assets can be realised.
 
 13.  PROVISIONS AND CONTINGENCIES
 
 The Company creates a provision when there is a present obligation as a
 result of a past event that probably requires an outflow of resources
 and a reliable estimate can be made of the amount of the obligation. A
 disclosure for a contingent liability is made when there is a possible
 obligation or a present obligation that probably will not require an
 outflow of resources or where a reliable estimate of the amount of the
 obligation cannot be made.
 
 14.  USE OF ESTIMATES
 
 The preparation of financial statements in conformity with Generally
 Accepted Accounting Principles requires the 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 period. Examples of such estimates include estimate of cost
 expected to be incurred to complete performance under composite
 arrangements, income taxes, provision for warranty, employment benefit
 plans, provision for doubtful debts and estimated useful life of the
 fixed assets. The actual results could differ from those estimates. Any
 revision to accounting estimates is recognised prospectively in current
 and future periods.
 
 15.  EMPLOYEE STOCK OPTION SCHEME
 
 The Company calculates the employee stock compensation expense based on
 the intrinsic value method wherein the excess of market price of
 underlying equity shares as on the date of the grant of options over
 the exercise price of the options given to employees under the Employee
 Stock Option Scheme of the Company, is recognised as deferred stock
 compensation expense and is amortised over the vesting period on the
 basis of generally accepted accounting principles in accordance with
 the guidelines of Securities and Exchange Board of India.
 
 16.  BORROWING COSTS
 
 Borrowing costs to the extent related/attributable to the
 acquisition/construction of assets that necessarily take substantial
 period of time to get ready for their intended use are capitalised
 along with the respective fixed asset up to the date such asset is
 ready for use. Other borrowing costs are charged to the profit and loss
 account.
 
 17.  SEGMENT ACCOUNTING
 
 The segment accounting policy is in accordance with the policies
 consistently used in the preparation of financial statements.  The
 basis of reporting is as follows:
 
 a) Revenue and expenses distinctly identifiable to a segment are
 recognised in that segment. Identified expenses include direct
 material, labour, overheads and depreciation on fixed assets. Expenses
 that are identifiable with/allocable to segments have been considered
 for determining segment results.
 
 Allocated expenses include support function costs which are allocated
 to the segments in proportion of the services rendered by them to each
 of the business segments. Depreciation on fixed assets is allocated to
 the segments on the basis of their proportionate usage.
 
 b) Unallocated expenses/income are enterprise expenses/income, which
 are not attributable or allocable to any of the business segment.
 
 c) Assets and liabilities which arise as a result of operating
 activities of the segment are recognised in that segment. Fixed assets
 which are exclusively used by the segment or allocated on a reasonable
 basis are also included.
 
 d) Unallocated assets and liabilities are those which are not
 attributable or allocable to any of the segments and includes liquid
 assets like investments, bank deposits and investments in assets given
 on finance lease.
 
 e) Segment revenue resulting from transactions with other business
 segments is accounted on the basis of transfer price which is at par
 with the prevailing market price.
 
 18.  IMPAIRMENT OF ASSETS
 
 At the 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 and 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.