1.  Basis of preparation of financial statements
 
 The financial statements have been prepared and presented under the
 historical cost convention on an accrual basis of accounting and are in
 compliance with the applicable Accounting Standards notified in the
 Companies (Accounting Standard) Rules, 2006 (as amended) and the
 relevant provisions of the Companies Act, 1956 (the Act). Except
 otherwise mentioned, the accounting policies have been consistently
 applied by the Company and are consistent with those used in the
 previous year.
 
 2.  Use of estimates
 
 The preparation of financial statements is in conformity with Indian
 Generally Accepted Accounting Principles, which require the management
 to make estimates and assumptions, that affect the reported amounts of
 assets and liabilities and disclosure of contingent liabilities on the
 date of the financial statements and the reported amounts of revenues
 and expenses during the reporting period. Actual results could differ
 from those estimates and differences between actual results and
 estimates are recognised in the periods in which the results are
 known/materialised.
 
 3.  Revenue recognition
 
 Fees are recognised on accrual basis in accordance with
 agreements/arrangements.
 
 Dividend income on investments is accounted for when the Companys
 right to receive dividend is established.
 
 Interest income is recognised on accrual basis.
 
 4.  Fixed assets and depreciation Owned tangible assets
 
 Tangible fixed assets are stated at original cost of acquisition less
 accumulated depreciation and impairment losses.  Cost comprises of all
 costs incurred to bring the assets to their present location and
 working condition.
 
 Depreciation on tangible fixed assets is provided, on a pro-rata basis
 for the period of use, on the Straight Line Method (SLM), based on
 rates as per managements estimate of useful life of the fixed assets,
 or at the rates prescribed in Schedule XIV to the Act whichever is
 higher. The estimated useful life is as per the following table:
 
 Assets                       Useful Life
 
 Furniture                    10 years
 
 Office equipment             5 years
 
 Computers                    5 years
 
 Leasehold improvements       10 years or lease period whichever 
                              is lower
 
 Office premises              61 years
 
 
 Assets costing Rs. 5,000/- or less are fully depreciated in the year of
 acquisition.
 
 Owned intangible assets
 
 Intangible fixed assets are stated at the cost of acquisition or
 internal generation, less accumulated amortisation and impairment
 losses. An intangible asset is recognised, where it is probable that
 the future economic benefits attributable to the assets will flow to
 the enterprise and where its cost can be reliably measured. The
 depreciable amount of the intangible assets is allocated over the best
 estimate of its useful life on a straight line basis.
 
 The Company capitalises software and related implementation costs where
 it is reasonably estimated that the software has an enduring useful
 life. Software is depreciated over management estimate of its useful
 life not exceeding 5 years.
 
 Leased assets
 
 Assets acquired under finance lease are capitalised at the inception of
 lease at the fair value of the assets or present value of minimum lease
 payments whichever is lower. These assets are fully depreciated on a
 straight line basis over the lease term or its useful life whichever is
 shorter.
 
 5.  Impairment of assets
 
 An asset is considered as impaired when on the balance sheet date there
 are indications of impairment in the carrying amount of the assets, or
 where applicable the cash generating unit to which the asset belongs,
 exceeds its recoverable amount (i.e., the higher of the assets net
 selling price and value in use). The carrying amount is reduced to the
 level of recoverable amount and the reduction is recognised as an
 impairment loss in the profit and loss account.
 
 6.  Investments
 
 Investments are classified as long term or current. Long term
 investments are carried at cost; however, provision for diminution in
 the value of long term investments is made to recognise a decline,
 other than temporary, in the value of investments. The provision for
 diminution in the value of the quoted long term investments is made to
 recognise the decline at lower of cost and market value, determined on
 the basis of the quoted prices of individual investment.  Provision for
 diminution in the value of unquoted long term investments is made as
 per the Managements estimate.  Current investments are carried at
 lower of cost or fair value.
 
 7.  Foreign currency transactions
 
 Transactions in foreign currency are recorded at the rate of exchange
 prevailing on the date of transaction. Foreign currency monetary items
 are reported using closing rate of exchange at the end of the year. The
 resulting exchange gain/loss is reflected in the profit and loss
 account. Other non-monetary items like fixed assets, investments in
 equity shares, are carried in terms of historical cost using the
 exchange rate at the date of transaction.
 
 8.  Employee benefits Defined contribution plan
 
 The Company makes defined contribution to the provident fund, which is
 recognised in the profit and loss account on accrual basis.
 
 Defined benefit plan
 
 The Companys liabilities under the Payment of Gratuity Act are
 determined on the basis of actuarial valuation made at the end of each
 financial year using the projected unit credit method. Actuarial gains
 and losses are recognised in the
 
 statement of profit and loss account as income or expense respectively.
 Obligation is measured at the present value of estimated future cash
 flows using a discounted rate that is determined by reference to market
 yields on the date of balance sheet on government bonds where the
 currency and terms of the government bonds are consistent with the
 currency and estimated terms of the defined benefit obligation.
 
 Short-term employee benefits
 
 Short-term employee benefits are recognised as an expense at the
 undiscounted amount in the profit and loss account of the year in which
 the related services are rendered.
 
 9.  Taxation
 
 Tax expenses comprise current and deferred tax.
 
 A provision for current tax is made on the basis of the estimated
 taxable income for the current accounting year in accordance with the
 provisions of Income Tax Act, 1961.
 
 Deferred tax for timing differences between the book and tax profits
 for the year is accounted for, using the tax rates and laws that apply
 substantively as on the date of balance sheet. Deferred tax assets,
 arising from timing differences, are recognised only if there is
 reasonable certainty that these will be realised in future.
 
 Deferred tax assets, in case of unabsorbed losses and unabsorbed
 depreciation, are recognised only if there is virtual certainty that
 such deferred tax asset can be realised against future taxable profits.
 
 At each balance sheet date the Company re-assesses unrecognised
 deferred tax assets. It recognises unrecognised 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. 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.
 
 10.  Operating leases
 
 Leases, where significant portion of risk and reward of ownership
 retained by the lessor, are classified as operating leases and lease
 rentals thereon are charged to the profit and loss account.
 
 11.  Employee stock option scheme
 
 The stock options granted are accounted for as per the accounting
 treatment prescribed by the Securities and Exchange Board of India
 (SEBI) (Employees Stock Option Scheme and Employee Stock Purchase
 Scheme) Guidelines, 1999, whereby the intrinsic value of the option is
 recognised as deferred employee compensation. The deferred employee
 compensation is charged to the profit and loss account over the period
 of vesting. The employee stock option outstanding account, net of any
 unamortised deferred employee compensation, is shown separately as part
 of Reserves.
 
 12.  Provisions, contingent liabilities and contingent assets
 
 Contingent liabilities are possible but not probable obligations as on
 the balance sheet date, based on the available evidence. Provisions are
 recognised when there is a present obligation as a result of past
 event; 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 determined based on best estimate required to
 settle the obligation at the balance sheet date. Contingent assets are
 not recognised in the financial statements.