Company Overview
 
 The Company, along with its wholly owned subsidiaries in the USA, UK,
 Germany, France and branches at Japan, Singapore and South Africa
 provides software services and IT enabled services to its clients. The
 Company predominantly provides services in Manufacturing and Financial
 services sectors. Most of the revenue is generated from the export of
 services.
 
 1.  Significant Accounting Policies
 
 Basis for preparation of financial statements
 
 The financial statements are prepared in accordance with Indian
 Generally Accepted Accounting Principles (GAAP) under the historical
 cost convention on accrual basis. All items of income and expenditure
 having a material bearing on the financial statements are recognized on
 the accrual basis. GAAP comprises mandatory accounting standards as
 prescribed by the Companies (Accounting Standards) Rules, 2006, the
 provisions of Companies Act, 1956 and guidelines issued by the
 Securities and Exchange Board of India (SEBI).
 
 Use of Estimates
 
 The preparation of financial statements requires the management of the
 Company to make estimates and assumptions that affect the reported
 balances of assets and liabilities and disclosures relating to the
 contingent liabilities as at the date of the financial statements and
 reported amounts of income and expenditure during the year.
 
 1.1 Revenue recognition
 
 Revenue from software development and services on time and material
 basis is recognized based on software development, services rendered
 and billed to clients as per the contractual obligations. In case of
 fixed price contracts, revenue is recognized based on the milestone/s
 achieved as agreed upon in the contract on proportionate completion
 basis and where there is no uncertainty as to measurement or collect
 ability of consideration. Revenue from the sale of software products is
 recognized when the sale is completed with the passing of the
 ownership.
 
 Interest income is recognized on time proportion basis.
 
 Dividend income is recognized when the Companys right to receive
 dividend is established.
 
 1.2 Expenditure
 
 Expenses are accounted on the accrual basis and provisions are made for
 all probable losses and liabilities.
 
 a) Borrowing Costs
 
 Borrowing costs that are directly attributable to the acquisition,
 construction or production of an asset which takes a substantial time
 in getting ready for its intended use are capitalized as part of cost
 of that asset till the date it is put to use. All other borrowing costs
 are charged to the Statement of Profit and Loss.
 
 b) Provision for Doubtful Debts
 
 The Company periodically carries out an exercise to evaluate recovery
 of its receivables. While making such provision, various other factors
 like probable recovery of the dues, business risks, economic factors,
 legal status of the customers/partners are taken into account.
 
 1.3 Fixed Assets, Intangible Assets and Capital Work-in-Progress
 
 a) Fixed Assets are stated at the cost of acquisition, less accumulated
 depreciation and impairment loss, if any. Direct costs are capitalized
 till the assets are put to use. Vehicles taken on Lease have been
 capitalized in accordance with the Accounting Standard (AS) 19
 ‘Accounting for Leases.
 
 b) Intangible Assets
 
 If Company incurs expenditure which meets criteria of intangible asset
 as mentioned in Accounting Standard (AS) 26, such expenditure is
 capitalized and is amortized over its useful life as estimated by the
 Management.
 
 However, in some instances, technical feasibility is completed and the
 market release status is reached in the same period. Therefore, such
 intangible assets are amortized in the same period.
 
 c) Capital Work-in-Progress
 
 Capital Work-in-Progress includes capital advances and the cost of
 fixed assets that are not yet ready for the intended use at the
 reporting date.
 
 1.4 Depreciation/Amortization
 
 Depreciation on fixed assets is provided using straight-line method
 over the useful life of the fixed assets as estimated by the
 Management.  Depreciation is charged on all assets purchased and sold
 during the year on a proportionate basis. The rates of depreciation are
 as per or above minimum rates prescribed under Schedule XIV of the
 Companies Act, 1956. The Rates of Depreciation are as follows:
 
 Individual assets costing less than X 5,000/- and mobile phones issued
 to employees are charged off to the Statement of Profit and Loss in the
 year of purchase.
 
 - Leasehold land                   - Amortized over the lease period.
 
 - Buildings                        - 1.63%
 
 - Buildings (Hinjewadi)            - 7.50%
 
 - Plant and machinery
 
 - Office equipments                - 4.75%
 
 - Office equipments (Hinjewadi)    - 10.00%
 
 -  Electrical systems              - 33.33%
 
 - Electrical systems (Hinjewadi)   - 10.00% 
 
 - Computers                        - 25.00% 
 
 (including software and peripherals)
 
 - Furniture and fittings           - 6.33%
 
 Furniture and fittings (Hinjewadi) - 12.50%
 
 - Vehicles                         - 9.50%
 
 - Vehicles on lease                - Amortized over the lease period
 
 Perpetual Software licenses are amortized over their useful lives as
 stated above. However, time-based software licenses are amortized over
 their duration.
 
 1.5 Goodwill
 
 Goodwill on acquisition is amortized over a period of its useful life
 as estimated by the management.
 
 1.6 Impairment of Fixed Assets
 
 The Management periodically assesses using, external and internal
 sources, whether there is an indication that an asset may be impaired.
 Impairment loss is recognised when the carrying value of an asset
 exceeds its recoverable amount. The recoverable amount is higher of the
 assets net selling price and value in use, which means the present
 value of future cash flows expected to arise from the continuing use of
 the asset and its eventual disposal.
 
 1.7 Investments
 
 Investments are either classified as current or long-term, based on
 Managements intention at the time of purchase. Current investments are
 carried at lower of cost and fair value. Cost for overseas investment
 comprises the Indian rupee value of the consideration paid for the
 investment translated at the exchange rate prevalent at the date of
 investment. Long-term Investments are stated at cost less provisions
 recorded to recognise any decline, other than temporary, in the
 carrying value of each investment. Such costs are inclusive of
 acquisition costs directly attributable to the Investments such as
 legal expenses, professional fees etc. incurred during the course of
 such acquisition.
 
 1.8 Leases
 
 Assets leased by the Company in the capacity of their lessee, where the
 Company has substantially all the risks and rewards of ownership are
 classified as Finance Leases. Such leases are capitalized at the
 inception of lease at the lower of their 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
 interest cost so as to obtain a constant periodic rate of interest on
 the outstanding liability for each year.
 
 Lease arrangements where the risks and rewards incidental to the
 ownership of an asset substantially vest with the lessor, are
 recognised as Operating Leases. Lease Rentals under operating leases
 are recognised in the statement of Profit and Loss on
 straight-line-basis
 
 1.9 Earnings per share
 
 Basic earnings per share is computed by dividing the net profit after
 tax by the weighted number of equity shares outstanding during the
 period. Diluted earnings per share is computed by dividing the net
 profit after tax by the weighted number of equity shares considered for
 deriving basic earnings per share and also the weighted average number
 of equity shares that could have been issued upon conversion of
 dilutive potential equity shares. The diluted potential equity shares
 are adjusted for the proceeds receivable had the shares been actually
 issued at fair value which is the average market value of the
 outstanding shares.
 
 1.10 Foreign currency transactions
 
 a) Foreign currency denominated monetary assets and liabilities are
 translated at exchange rates in effect at the balance sheet date. The
 gains or losses resulting from such transactions are included in the
 Statement of Profit and Loss. Income and Expenses denominated in
 foreign currencies are translated using exchange rate in effect on the
 date of transaction. Transaction gains or losses realized upon
 settlement of foreign currency transactions are included in determining
 the net profit for the period in which the transaction is settled.
 
 Premiums or discount on forward exchange contracts are amortized and
 recognized in the Statement of Profit and Loss over the period of the
 contract. Forward exchange contracts and currency option contracts
 outstanding at the balance sheet date, other than designated cash flow
 hedges, are stated at fair values and any gains or losses are
 recognized in the Statement of Profit and Loss.
 
 b) Derivative instruments and hedge accounting
 
 The Company uses foreign currency forward contracts and currency
 options to hedge its risk associated with foreign currency fluctuations
 relating to certain firm commitments and forecast transactions. The
 Company designates these hedging instruments as cash flow hedges
 applying the recognition and measurement principles set out in the
 Accounting Standard (AS) 30 Financial Instruments: Recognition and
 Measurement” of the Institute of Chartered Accountants of India (ICAI).
 
 The use of hedging instruments is governed by the Companys policy
 approved by the Board of Directors, which provides written principles
 on the use of such financial derivatives consistent with the Companys
 risk management strategy. The Company does not use derivative financial
 instruments for speculative purposes. The counter-party to the
 Companys foreign currency forward contracts is generally a bank.
 
 Hedging instruments are initially measured at fair value and are
 re-measured at subsequent reporting dates. Changes in fair value of
 these derivatives that are designated and effective as hedges of future
 cash flow are recognized directly in shareholders fund and the
 ineffective portion, if any is recognized immediately in the Statement
 of Profit and Loss.
 
 Changes in the fair value of derivative financial instruments that do
 not qualify for hedge accounting are recognized in the Statement of
 Profit and Loss as they arise.
 
 Hedge accounting is discontinued when the hedging instrument expires or
 is sold, terminated, or exercised, or no longer qualifies for hedge
 accounting. For forecast transactions any cumulative gain or loss on
 the hedging instrument recognized in shareholders fund is retained
 there until the forecast transaction occurs. When a hedge transaction
 occurs or, is no longer expected to occur, the net cumulative gain or
 loss recognized in shareholders fund is transferred to the Statement
 of Profit and Loss.
 
 1.11 Retirement benefits to employees
 
 Gratuity:
 
 In accordance with the payment of Gratuity Act, 1972, the Company
 provides a liability for gratuity, a defined benefit retirement plan.
 The amount of gratuity is computed based on respective employees
 salary and the tenure of employment with the Company. Gratuity is
 accrued based on actuarial valuation as at the balance sheet date,
 carried out by an independent actuary using projected unit credit
 method. The amount is funded from internal accruals.
 
 For employees of erstwhile KPIT Cummins Infosystems (Bangalore) Pvt.
 Ltd. who were on the roll as at March 31, 2007 (before the date of the
 merger) the amount is funded through an employees group gratuity
 trust, managed by Kotak Mahindra Old Mutual Life Insurance Limited.
 
 Actuarial gains and losses in respect of defined benefit plans are
 recognized in the Statement of Profit and Loss for the year in which
 they occur.
 
 Provident Fund:
 
 Eligible employees receive benefits from provident fund, which is a
 defined contribution plan. Provident Fund Contribution of covered
 employees basic salary is deducted and paid along with Companys
 Contribution of an equal amount on a monthly basis to the appropriate
 authority.
 
 Leave Accrual:
 
 The liability for leave carried forward has been accounted for on
 actual basis.
 
 1.12 Accounting for Taxes on Income
 
 a) Income Tax Provision
 
 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. Tax expense relating to foreign operations is determined in
 accordance with tax laws applicable in countries where such operations
 are domiciled.
 
 Provisions are also recorded when it is estimated that a liability due
 to disallowances or other matters is probable.
 
 The Company has provided for Minimum Alternate Tax (MAT) in accordance
 with the provisions of Section 115JB of the Income Tax Act, 1961.
 
 In accordance with the Guidance Note on Accounting for Credit Available
 in Respect of Minimum Alternative Tax under the Income- tax Act, 1961
 the Company recognizes MAT credit, where there is convincing evidence
 that the Company will pay normal tax after the tax holiday period.
 
 The Company offsets, on an year-on-year basis, the current tax assets
 and liabilities, where it has a legally enforceable right to offset and
 where it intends to settle such assets and liabilities on a net basis.
 
 Tax on distributed profits payable in accordance with the provisions of
 the Income Tax Act, 1961 is disclosed in accordance with the Guidance
 Note on Accounting for Corporate Dividend Tax issued by the ICAI.
 
 b) Deferred Tax Provision
 
 - Pursuant to the Accounting Standard (AS) 22 on Accounting for taxes
 on income”, the Company has considered the effect of timing differences
 in the tax expenses in the Statement of Profit and Loss as deferred tax
 asset/liability in the Balance Sheet.
 
 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.
 
 In respect of unabsorbed depreciation and carry forward losses,
 deferred tax assets are recognised only to the extent that there is
 virtual certainty supported by convincing evidence that sufficient
 future taxable income will be available to realize such assets. In
 other situations, deferred tax assets are recognised only to the extent
 that there is reasonable certainty that sufficient future taxable
 income will be available to realize these assets.
 
 - As the Company is currently under the tax holiday period, no deferred
 tax asset/liability is recognized for the timing differences arising
 during the tax holiday period and reversing within the tax holiday
 period.
 
 - However, deferred tax asset/liability is recognized on the timing
 differences which arise during the tax holiday period and reverse after
 the tax holiday period is over.
 
 1.13 Provisions, Contingent Liabilities and Contingent Assets
 
 As per Accounting Standard (AS) 29, ‘Provisions, Contingent Liabilities
 and Contingent Assets, the Company recognizes provisions only when it
 has a present obligation as a result of a past event, it is probable
 that an outflow of resources embodying economic benefits will be
 required to settle the obligation and when a reliable estimate of the
 amount of the obligation can be made.
 
 No Provisions is recognized for -
 
 A.  Any possible obligation that arises from past events and the
 existence of which will be confirmed only by the occurrence or
 non-occurrence of one or more uncertain future events not wholly within
 the control of the Company; or
 
 B.  Present obligation that arises from past events but are not
 recognized because -
 
 1.  It is not probable that an outflow of resources embodying economic
 benefits will be required to settle the obligation; or
 
 2.  A reliable estimate of the amount of obligation cannot be made are
 disclosed as Contingent Liabilities. These are assessed periodically
 and only that part of the obligation for which an outflow of resources
 embodying economic benefits is probable, is provided for, except in the
 extremely rare circumstances where no reliable estimate can be made.
 
 Contingent Assets are not recognized in the financial statements since
 this may result in the recognition of income that may never be
 realized.
 
 1.14 Research and Development
 
 Costs incurred during the research phase of a project are expensed when
 incurred. Costs incurred in the development phase are recognised as an
 intangible asset if it is demonstrated that: the project is technically
 feasible, the Company has the intent and the ability to complete the
 development of the asset for use or sale, it is probable that the asset
 will generate future economic benefits, resources to complete the
 development and to use or sell the asset are available, and such costs
 are reliably measurable. Capitalized costs are amortized over a period
 depending upon the assets market release status. Where the release is
 soon after the asset is completed, costs are amortized in the same
 period; otherwise, over the assets useful life.
 
 2. Disclosures as required by Schedule VI of the Companies Act, 1956
 
 2.7 Capital Commitments:
 
 a) Tangible Assets
 
 Estimated amounts of contracts remaining to be executed on Capital
 Account and not provided for (net of advances) is Rs. 19,586,026/- as
 at March 31, 2011 (Previous Year Rs. 1,802,992/-).
 
 b) Intangible Assets
 
 Estimated amounts of contracts remaining to be executed on Capital
 Account and not provided for (net of advances) is Rs. 4,555,716/- as at
 March 31, 2011 (Previous Year Rs. 3,184,906/-).