a) Basis of preparation
 
 The financial statements have been prepared to comply with the
 Accounting Standards notified by Companies (Accounting Standards)
 Rules, 2006, (as amended) the provisions of the Companies Act, 1956 and
 guidelines issued by the Securities and Exchange Board of India (SEBI).
 The financial statements have been prepared under the historical cost
 convention on an accrual basis except for certain financial instruments
 which are measured at fair values. The accounting policies have been
 consistently applied by the Company and are consistent with those used
 in the previous year.
 
 b) Use of estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the results of operations during the reporting
 period. Although these estimates are based upon management''s best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 c) Revenue recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured. Revenue from sale of goods and rendering of services
 is recognised when risk and reward of ownership has been transferred to
 the customer, the sale price is fixed or determinable and
 collectability is reasonably assured.
 
 The Company derives revenues primarily from:-
 
 - Software services;
 
 - Infrastructure service; and
 
 - Business process outsourcing services.
 
 i) Software Services
 
 Revenue from Software services comprises income from time and material
 and fixed price contracts. Revenue with respect to time and material
 contracts is recognized as related services are performed. Revenue from
 fixed price contracts and fixed time frame contracts is recognized in
 accordance with the percentage completion method under which the sales
 value of performance, including earnings thereon, is recognized on the
 basis of cost incurred in respect of each contract as a proportion of
 total cost expected to be incurred. The cumulative impact of any
 revision in estimates of the percentage of work completed is reflected
 in the year in which the change becomes known.  Provisions for
 estimated losses are made during the year in which a loss becomes
 probable based on current contract estimates. Revenue from sale of
 licenses for the use of software applications is recognised on transfer
 of title in the user license. Revenue from annual technical service
 contracts is recognised on a pro rata basis over the period in which
 such services are rendered. Income from revenue sharing agreements is
 recognized when the right to receive is established.
 
 ii) Infrastructure services
 
 Revenue from infrastructure services is derived from both time based
 and unit priced contracts. Revenue is recognized as the related
 services are performed in accordance with specific terms of the
 contract. In case of multi-deliverable contracts where revenue cannot
 be allocated to various deliverables in a contract, the entire contract
 is accounted for as one deliverable and accordingly the revenue is
 recognized on a proportionate completion method following the
 performance pattern of predominant services in the contract or is
 deferred until the last deliverable is delivered.
 
 iii) Business Process Outsourcing services
 
 Revenue from Business Process Outsourcing services is derived from both
 time based and unit-price contracts.  Revenue is recognized as the
 related services are performed in accordance with the specific terms of
 the contracts with the customers.
 
 Schedules forming part of the accounts
 
 (All amounts in crores of Rs except share data and unless otherwise
 stated)
 
 Schedule 20: Notes to the accounts (Contd.)
 
 Cost and earnings in excess of billing are classified as unbilled
 revenue, while billing in excess of cost and earnings are classified as
 unearned revenue. Incremental revenue from existing contracts arising
 on future sales of the customers'' products will be recognized when it
 is earned. Revenue and related direct costs from transition services in
 outsourcing arrangements are deferred and recognized over the period of
 the arrangement. Certain upfront non-recurring costs incurred in the
 initial phases of outsourcing contracts and contract acquisition costs,
 are deferred and amortized usually on a straight line basis over the
 term of the contract. The Company periodically estimates the
 undiscounted cash flows from the arrangement and compares it with the
 unamortized costs. If the unamortized costs exceed the undiscounted
 cash flow, a loss is recognized.
 
 The Company gives volume discounts and pricing incentives to customers.
 The discount terms in the Company''s arrangements with customers
 generally entitle the customer to discounts, if the customer completes
 a specified level of revenue transactions. In some arrangements, the
 level of discount varies with increases in the levels of revenue
 transactions. The Company recognizes discount obligations as a
 reduction of revenue based on the rateable allocation of the discount
 to each of the underlying revenue transactions that result in progress
 by the customer toward earning the discount.
 
 Revenues are shown net of sales tax, value added tax, service tax and
 applicable discounts and allowances.
 
 iv) Others
 
 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. Interest on the deployment
 of surplus funds is recognised using the time-proportion method, based
 on interest rates implicit in the transaction. Brokerage, commission
 and rent are recognised once the same are earned and accrued to the
 Company and dividend income is recognised when the right to receive the
 same is established. Dividend from subsidiaries is recognised even if
 same are declared after the balance sheet date but pertains to period
 on or before the date of the balance sheet as per the requirements of
 schedule VI of the Companies Act, 1956.
 
 d) Fixed assets
 
 Fixed assets are stated at the cost less accumulated depreciation and
 impairment losses if any. Cost comprises the purchase price and any
 attributable cost of bringing the asset to its working condition for
 its intended use. Fixed assets under construction, advances paid
 towards acquisition of fixed assets and cost of assets not ready for
 use before the year- end, are disclosed as capital work in progress.
 
 e) Depreciation and amortization
 
 Depreciation on fixed assets except leasehold land and leasehold
 improvements is provided on the straight-line method over their
 estimated useful lives, as determined by the management, at the rates
 which are equal to or higher than the rates prescribed under Schedule
 XIV of the Companies Act, 1956. Leasehold land is amortised over the
 period of lease. Leasehold improvements are amortised over a period of
 four years or the remaining period of the lease, whichever is shorter.
 Depreciation is charged on a pro-rata basis for assets purchased/sold
 during the year. Assets costing less than Rs 5,000 are fully depreciated
 in the year of purchase.
 
 Intangible assets are amortized over their respective individual
 estimated useful life or on a straight line basis.
 
 (f) Impairment of assets:
 
 The carrying amounts of assets are reviewed at each balance sheet date
 if there is any indication of impairment based on internal/external
 factors. An impairment loss is recognized wherever the carrying amount
 of an asset exceeds its recoverable amount. The recoverable amount is
 the greater of the asset''s net selling price and value in use. In
 assessing value in use, the estimated future cash flows are discounted
 to their present value using a pre-tax discount rate that reflects
 current market assessments of the time value of money and risks
 specific to the asset.
 
 g) Leases
 
 Where the Company is the lessee
 
 Finance leases, which effectively transfer to the Company substantially
 all the risks and benefits incidental to ownership of the leased item,
 are capitalized at the lower of the fair value and present value of the
 minimum lease payments at the inception of the lease term and disclosed
 as leased assets. Lease payments are apportioned between the finance
 charges and reduction of the lease liability based on the implicit rate
 of return. Finance charges are charged directly against income.
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased item, are classified as
 operating leases. Operating lease payments are recognized as an expense
 in the Profit and Loss account on a straight-line basis over the lease
 term.
 
 h) Investments
 
 Trade investments are the investments made to enhance the Company''s
 business interests. Investments that are readily realisable and
 intended to be held for not more than a year are classified as current
 investments. All other investments are classified as long-term
 investments. Current investments are carried at lower of cost and fair
 value determined on an individual investment basis. Long-term
 investments are carried at cost. However, provision for diminution in
 value is made to recognise a decline other than temporary in the value
 of the investments.
 
 i) Foreign exchange transactions
 
 (i) Initial Recognition
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency at the date of the
 transaction.
 
 (ii) Conversion
 
 Foreign currency monetary items are reported using the closing rate.
 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.
 
 (iii) Exchange Differences
 
 Exchange differences arising on the settlement of monetary items, or on
 reporting such monetary items of Company at rates different from those
 at which they were initially recorded during the year, or reported in
 previous financial statements, are recognized as income or as expenses
 in the year in which they arise.
 
 (iv) Hedging
 
 a) Cash flow hedging
 
 The Company uses derivative financial instruments (foreign currency
 forward and option contracts) to hedge its risks associated with
 foreign currency fluctuations relating to certain forecasted
 transactions.
 
 The use of foreign currency forward contracts and options are governed
 by the Company''s policies, which provide written principles on the use
 of such financial derivatives consistent with the Company''s risk
 management strategy. The Company does not use derivative financial
 instruments for speculative purposes.
 
 The derivative instruments are initially measured at fair value, and
 are remeasured at subsequent reporting dates.
 
 In respect of derivatives designated as hedges, the Company formally
 documents all relationships between hedging instruments and hedged
 items, as well as its risk management objective and strategy for
 undertaking various hedge transactions. The Company also formally
 assesses both at the inception of the hedge and on an ongoing basis,
 whether each derivative is highly effective in offsetting changes in
 fair values or cash flows of the hedged item. Changes in the fair value
 of these derivatives (net of tax) that are designated and effective as
 hedges of future cash flows are recognised directly in Hedging Reserve
 Account under shareholders'' funds and the ineffective portion is
 recognized immediately in profit and loss account. Changes in the fair
 value of derivative financial instruments that do not qualify for hedge
 accounting are recognized in profit and loss account as they arise.
 
 Hedge accounting is discontinued from the last testing date when the
 hedging instrument expires or is sold, terminated, or exercised, or no
 longer qualifies for hedge accounting. Cumulative gain or loss on such
 hedging instrument recognised in shareholder''s funds is retained there
 until the forecasted transaction occurs. If a hedged transaction is no
 longer expected to occur, the net cumulative gain or loss recognised in
 shareholders'' funds is transferred to profit and loss account for the
 year.
 
 b) Hedging of monetary assets and liabilities
 
 The premium or discount arising at the inception of forward exchange
 contracts and option is amortised as expense or income over the life of
 the contract. Exchange differences on such contracts are recognised in
 the statement of profit and loss in the year in which the exchange
 rates change. Any profit or loss arising on cancellation or renewal of
 forward exchange contract is recognised as income or as expense for the
 year.
 
 (v) Translation of Integral and Non-integral foreign operation
 
 The financial statements of an integral foreign operation are
 translated as if the transactions of the foreign operation have been
 those of the Company itself.
 
 In translating the financial statements of a non-integral foreign
 operation for incorporation in financial statements, the assets and
 liabilities, both monetary and non-monetary, of the non-integral
 foreign operation are translated at the closing rate; income and
 expense items of the non-integral foreign operation are translated at
 monthly weighted average rates ,which approximate the actual exchange
 rates; and all resulting exchange differences are accumulated in a
 foreign currency translation reserve until the disposal of the net
 investment.
 
 On the disposal of a non-integral foreign operation, the cumulative
 amount of the exchange differences which have been deferred and which
 relate to that operation are recognised as income or as expenses in the
 same period in which the gain or loss on disposal is recognised.
 
 j) Inventories
 
 Finished goods are valued at lower of cost and net realisable value.
 Net realizable value is the estimated selling price in the ordinary
 course of business, less estimated costs of completion and estimated
 costs necessary to make the sale. Cost of goods that are procured for
 specific projects is assigned by specific identification of their
 individual costs. Cost of goods that are interchangeable and not
 specific to any project is determined using weighted average cost
 formula. Stores and spare parts are carried at cost, less provision for
 obsolescence.
 
 k) Employee stock compensation cost
 
 The Company calculates the compensation cost based on the intrinsic
 value method wherein the excess of market price of underlying equity
 shares on the date of the grant of options over the exercise price of
 the options given to employees under the employee stock option schemes
 of the Company, is recognised as deferred stock compensation cost and
 is amortised on a graded vesting basis over the vesting period of the
 options.
 
 l) Taxation
 
 Tax expense comprises current and deferred tax. Current income tax
 expense comprises taxes on income from operations in India and in
 foreign jurisdictions. Income tax payable in India is determined in
 accordance with the provisions of the Income Tax Act, 1961 and tax
 expense relating to overseas operations is determined in accordance
 with tax laws applicable in countries where such operations are
 domiciled.
 
 Deferred tax expense or benefit is recognised on timing differences
 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 assets and liabilities are measured using the tax rates
 and tax laws that have been enacted or substantively enacted by the
 balance sheet date. Deferred tax assets and deferred tax liabilities
 are offset, if a legally enforceable right exists to set off current
 tax assets against current tax liabilities and the deferred tax assets
 and deferred tax liabilities relate to the taxes on income levied by
 the same governing taxation laws.
 
 Deferred tax assets are recognised only to the extent that there is
 reasonable certainty that sufficient future taxable income will be
 available against which such deferred tax assets can be realised. In
 situations where the Company has unabsorbed depreciation or carry
 forward tax losses, all deferred tax assets are recognised only if
 there is virtual certainty supported by convincing evidence that they
 can be realised against future taxable profits.
 
 At each balance sheet date the Company re-assesses recognized and
 unrecognised deferred tax assets. The Company writes-down the carrying
 amount of a deferred tax asset to the extent that it is no longer
 reasonably certain or virtually certain, as the case may be, that
 sufficient future taxable income will be available against which the
 deferred tax asset can be realised. Any such write-down is reversed to
 the extent that it becomes reasonably certain or virtually certain, as
 the case may be, that sufficient future taxable income will be
 available. The Company recognizes unrecognized deferred tax assets to
 the extent that it has become reasonably certain or virtually certain,
 as the case may be, that sufficient future taxable income will be
 available against which such deferred tax assets can be realised.
 
 Minimum Alternative tax (MAT) credit is recognised as an asset only
 when and to the extent there is convincing evidence that the Company
 will pay normal income tax during the specified period. In the year in
 which the MAT credit becomes eligible to be recognized as an asset in
 accordance with the recommendations contained in guidance note issued
 by the Institute of Chartered Accountants of India, the said asset is
 created by way of a credit to the profit and loss account and shown as
 MAT Credit Entitlement. The Company reviews the same at each balance
 sheet date and writes down the carrying amount of MAT Credit
 Entitlement to the extent there is no longer convincing evidence to the
 effect that Company will pay normal income tax during the specified
 period.
 
 m) Employee benefits
 
 i) Contributions to provident fund, a defined benefit plan, are
 deposited with a Recognised Provident Fund Trust, set up by the
 Company. The contributions are charged to the profit and loss account
 of the year when the contributions to the fund are due. The interest
 rate payable by the trust to the beneficiaries every year is notified
 by the government and the Company has an obligation to make good the
 shortfall, if any, between the return from the investments of the trust
 and the notified interest rate.
 
 ii) The Company makes contributions to a scheme administered by an
 insurance company in respect of superannuation for applicable employees
 and such contributions are charged to profit and loss account. The
 Company has no further obligations to the superannuation plan beyond
 its contributions.
 
 iii) Gratuity liability is a defined benefit obligation and is provided
 for on the basis of an actuarial valuation on projected unit credit
 method made at the end of each financial year
 
 iv) Short term compensated absences are provided for based on
 estimates. Long term compensated absences are provided for based on
 actuarial valuation at the year end. The actuarial valuation is done as
 per projected unit credit method.
 
 v) Actuarial gains/losses are immediately taken to profit and loss
 account and are not deferred.
 
 vi) The Company''s contribution to State Plans namely Employee State
 Insurance Fund and Employees Pension Scheme are charged to profit and
 loss account when the contributions are due.
 
 n) Research and Development
 
 Research costs are expensed as incurred. Development expenditure
 incurred on an individual project is recognized as an intangible asset
 when the Company can demonstrate:
 
 (i) The technical feasibility of completing the intangible asset so
 that it will be available for use or sale;
 
 (ii) Its intention to complete the asset and use or sell it;
 
 (iii) its ability to use or sell the asset;
 
 (iv) how the asset will generate probable future economic benefits;
 
 (v) the availability of adequate resources to complete the development
 and to use or sell the asset; and
 
 (vi) the ability to measure reliably the expenditure attributable to
 the intangible asset during development.
 
 Any expenditure so capitalized is amortised over the period of expected
 future sales from the related project.
 
 The carrying value of development costs is reviewed for impairment
 annually when the asset is not yet in use, and otherwise when events or
 changes in circumstances indicate that the carrying value may not be
 recoverable.
 
 o) Earnings per share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the period attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the period. For the
 purpose of calculating diluted earnings per share, the net profit or
 loss for the period attributable to equity shareholders and the
 weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.
 
 p) Borrowing cost
 
 Borrowing costs directly attributable to the acquisition, construction
 or production of an asset that necessarily takes a substantial period
 of time to get ready for its intended use or sale are capitalized as
 part of the cost of the respective asset.  All other borrowing costs
 are expensed in the period they occur. Borrowing costs consist of
 interest and other costs that the Company incurs in connection with the
 borrowing of funds.
 
 q) Provisions
 
 A provision is recognised when there exists a present obligation as a
 result of past events and it is probable that an outflow of resources
 will be required to settle the obligation, in respect of which a
 reliable estimate can be made. Provisions are not discounted to present
 value and are determined based on best estimate required to settle the
 obligation at the balance sheet date. These are reviewed at each
 balance sheet date and adjusted to reflect the current best estimates.
 
 r) Cash and cash equivalents
 
 Cash and cash equivalents for the purposes of cash flow statement
 comprise cash at bank and in hand and deposit with banks with an
 original maturity of three months or less.
 
 Each option granted under the above plans entitles the holder to four
 equity shares of the Company at an exercise price, which is approved by
 the Compensation Committee.
 
 The expected volatility was determined based on historical volatility
 data.
 
 Movement in Stock options Year ended Year ended