1.  Basis for Preparation of Financial Statements:
 
 The Financial Statements are prepared in accordance with the Generally
 Accepted Accounting Principles (GAAP) applicable in India under the
 historical cost convention, on the accrual basis, in compliance with
 the Accounting Standards (AS) prescribed by the Companies (Accounting
 Standards) Rules, 2006 to the extent applicable and on the principles
 of a going concern.
 
 2.  Use of Estimates:
 
 The preparation of financial statements in conformity with AS and GAAP
 requires management to make estimates and assumptions that affect the
 reported amounts of assets and liabilities and the disclosures of
 contingent liabilities on the date of financial statements and reported
 amounts of revenue and expenses for that year. Actual result could
 differ from these estimates.  Any revision to accounting estimates is
 recognized prospectively.
 
 3.  Revenue Recognition:
 
 The revenue from Finance and Accounting sector of the BPO sector
 including software development and support services is recognized as
 per the work orders/agreements entered with the parties.
 
 License fee is recognized on delivery and as per the terms of the
 contract.
 
 4.  Fixed Assets:
 
 Tangible: Fixed assets are stated at historical cost less accumulated
 depreciation. Replacements are either capitalized or charged to revenue
 depending upon their nature and long term utility.
 
 Intangible: Costs that are directly associated with identifiable and
 unique software products controlled by the Company, whether developed
 in-house or acquired, and have probable economic benefits exceeding the
 cost beyond one year are recognized as software products.
 
 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 as at the Balance Sheet date.
 
 5.  Impairment of Assets:
 
 In accordance with AS 28 on Impairment of Assets prescribed by the
 Companies (Accounting Standard) Rules,2006 where there is an indication
 of impairment of the Companys assets
 
 related to cash generating units, the carrying amounts of such assets
 are reviewed at each balance sheet date to determine whether there is
 any impairment. The recoverable amount of such assets is estimated as
 the higher of its net selling price and its value in use. An impairment
 loss is recognized whenever the carrying amount of such assets exceeds
 its recoverable amount.  Impairment loss is recognized in the profit
 and loss account. If at the balance sheet date, there is an indication
 that a previously assessed impairment loss no longer exists, then such
 loss is reversed and the asset is restated to extent of the carrying
 value of the asset that would have been determined (net of amortization
 / depreciation), had no impairment loss been recognized.
 
 6.  Depreciation / Amortization:
 
 a) Tangible Assets - Depreciation is provided under Straight Line
 Method and in the manner prescribed in the Schedule XIV of the
 Companies Act, 1956. Individual assets acquired for less than Rs 5,000
 are entirely depreciated in the year of acquisition.
 
 b) Intangible Assets – Software product (meant for sale) are amortised
 over its estimated useful life of 8 years. Other Software products are
 amortized over its period of license.
 
 7.  Investments:
 
 Investments are classified into long term and current investments.
 Long-term investments are carried at cost and provision is made to
 recognize any decline in the value other than temporary in the value of
 such investments. Current investments are carried at the lower of the
 cost or fair value/market value and provision is made to recognize any
 decline in the carrying value of the investments.
 
 8.  Employee Benefits:
 
 a) Gratuity:
 
 Gratuity liability is a defined benefit obligation. The Company has
 taken an insurance policy under the Group Gratuity Scheme with the Life
 Insurance Corporation of India (LIC) to cover the gratuity liability of
 the employees and the amount paid / payable in respect of the present
 value of liability of past services is charged to the Profit and loss
 account every year. The difference between the amount paid / payable to
 LIC and the actuarial valuation made at the end of each financial year
 is charged to Profit and Loss account.
 
 b) Provident Fund:
 
 Retirement benefits in the form of Provident Fund / Pension Fund is a
 defined contribution scheme and the contributions are charged to the
 Profit and Loss Account of the year when the contributions to the
 respective funds are due. There are no other obligations other than the
 contribution payable to the respective trusts.
 
 c) Leave Entitlement:
 
 Liability towards Leave Entitlement Benefit is provided for as at the
 Balance Sheet date as per the actuarial valuation taken at the end of
 the year.
 
 9.  Foreign Exchange Transactions:
 
 Transactions in foreign currency are recorded at the rate of exchange
 in force on the date of the transactions. Current assets, current
 liabilities and borrowings denominated in foreign currency are
 translated at the exchange rate prevalent at the date of Balance Sheet.
 The resultant gain or loss is recognized in the profit and loss
 account.
 
 10.  Accounting for Taxes on Income:
 
 Provision for current income tax is made on the basis of the estimated
 taxable income for the year in accordance with the Income Tax Act,
 1961.
 
 MAT credit asset is recognized and carried forward only if there is a
 reasonable certainty of it being set off against regular tax payable
 within the stipulated statutory period.
 
 Deferred tax resulting from timing differences between book profits and
 tax profits is accounted for under the liability method, at the current
 rate of tax, to the extent that the timing differences are expected to
 crystallise. Deferred tax assets are recognized and carried forward
 only if there is a virtual/ reasonable certainty that they will be
 realized and are reviewed for the appropriateness of their respective
 carrying values at each Balance Sheet date.
 
 11.  Borrowing Costs:
 
 Borrowing costs attributable to acquisition and construction of
 qualifying assets are capitalized as a part of the cost of such assets
 up to the date when such asset is ready for its intended use. Other
 borrowing costs are charged to profit and loss account.
 
 12.  Leases:
 
 Where the Company has substantially acquired all risks and rewards of
 ownership of the assets, leases are classified as financial lease. Such
 assets are capitalized at the inception of the lease, at the lower of
 the fair value or present value of minimum lease payment and liability
 is created for equivalent amount. Each lease rent paid is allocated
 between liability and interest cost so as to obtain constant periodic
 rate of interest on the outstanding liability for each year.
 
 Where significant portion of risks and reward of ownership of assets
 acquired under lease are retained by lessor, leases are classified as
 Operating Lease. Lease rentals for such leases are charged to Profit
 and Loss account.
 
 13.  Earnings Per Share:
 
 The earnings considered in ascertaining Earnings Per Share comprise the
 net profit after tax.  The number of shares used in computing Basic EPS
 is weighted average number of shares outstanding during the year. The
 number of shares used in computing diluted EPS comprises of weighted
 average shares considered for deriving Basic EPS, and also weighted
 average number of equity shares which could have been issued on the
 conversion of all diluted potential equity shares. Diluted potential
 equity shares are deemed converted at the beginning of the year, unless
 they have been issued at later date.
 
 14. Provisions, Contingent Liability and Contingent Assets:
 
 i) Provisions involving substantial degree of estimation in measurement
 are recognized when there is present obligation as a result of past
 events and it is probable that there will be outflow of resources.
 
 ii) Disclosures for a contingent liability is made, without a provision
 in books, when there is an obligation that may, but probably will not,
 require outflow of resources.
 
 iii) Contingent Assets are neither recognized nor disclosed in the
 financial statement.