(i) Basis of preparation of financial statements:
 
 The financial statements are prepared under the historical cost
 convention, on the accrual basis of accounting and in accordance with
 accounting principles generally accepted in India (Indian GAAP) and
 comply with the Accounting Standards notified by the Central Government
 of India under the Companies (Accounting Standards) Rules, 2006, and
 relevant provisions of the Companies Act, 1956.
 
 (ii) Use of Estimates:
 
 The preparation of the financial statements in conformity with the
 Generally Accepted Accounting Principles requires estimates and
 assumptions to be made that affect the reported amount of assets and
 liabilities on the date of financial statements and the reported amount
 of revenues and expenses during the reporting period. Management
 believes that the estimates used in the preparation of financial
 statements are prudent and reasonable. Future results could differ from
 these estimates.
 
 (iii) Fixed Assets and Intangibles:
 
 Fixed Assets and Intangibles (software - purchased as well as developed
 in-house) are stated at cost less accumulated depreciation. The cost of
 assets comprises its purchase price, including import duties and other
 non-refundable taxes or levies, wherever applicable, and any directly
 attributable cost of bringing the asset to its working condition for
 its intended use. Internally developed software is stated at direct
 cost attributable to the asset including other applicable costs.
 
 (iv) Depreciation /Amortisation:
 
 Depreciation has been provided on the Written Down Value method at the
 rates prescribed under Schedule XIV to the Companies Act, 1956, Assets
 individually costing less than Rs.5000/- added during the year are
 fully depreciated.
 
 Computer Software (purchased and developed in-house) of the Publishing
 Solutions business is amortized over a period of 2 to 5 years, based on
 the future economic benefits, as estimated by the management.
 
 The cost of improvements to leasehold premises is being amortized over
 the primary / extended period of lease.
 
 In the foreign branch of the company located in United States of
 America , Fixed Assets are depreciated based on their estimated useful
 life as follows:
 
 - Overhead Equipment, other than Furniture, Production Equipment and
 REG Equipment - 5 years.
 
 - Computer Software - 5 years.
 
 - Furniture - 7 years.
 
 - Leasehold improvements - 3 years.
 
 (v) Impairment of Assets:
 
 The Company determines whether there is any indication of impairment of
 the carrying amount of its assets. The recoverable amount of such
 assets are estimated, if any indication exists and impairment loss is
 recognized wherever the carrying amount of the assets exceeds its
 recoverable amount.
 
 (vi) Investments - Long Term
 
 Long Term Investments are stated at cost. Provision for diminution is
 made if such diminution is considered other than temporary in nature.
 
 (vii) Inventories
 
 Inventories comprising incomplete jobs, are valued at the lower of cost
 and net realisable value. The cost comprises of material cost, direct
 labour and appropriate proportion of overheads. The quantity measured
 in pages considered for valuation is adjusted for pages where no
 realization is expected.
 
 (viii) Revenue Recognition
 
 Sales are recognized on delivery of projects or as per terms specified
 in contracts or purchase orders received from customers.
 
 Revenues for web-site design and development are recognised based on
 the percentage of completion of the project. Revenues from website
 hosting are recognised rateably over the year for which the site is
 hosted and on man-hours basis for BPO operations.
 
 (ix) Foreign Currency Transactions
 
 (a) Transaction in foreign currencies are accounted at the exchange
 rates prevailing on the date of the transaction and the realized
 exchange loss /gain are dealt with in the Profit & Loss Account.
 
 (b) Monetary assets and liabilities denominated in foreign currency are
 restated at the rates of exchange as on the Balance Sheet date and the
 exchange gain/loss is suitably dealt with in the Profit and Loss
 Account.
 
 Overseas Operations
 
 In accordance with Accounting Standard 11 (Revised), Accounting for the
 effects of changes in foreign exchange rates'', the branch located
 outside India has been classified as Integral Foreign Operation.
 Non-monetary assets are translated at the rates as on the date of the
 transaction. Monetary assets and liabilities are translated at the
 closing rate. Income and expenses are translated at the monthly average
 rate. The resultant exchange differences are dealt with in the Profit
 and Loss Account.
 
 (x) Hedge Accounting
 
 The Company uses forward contracts to hedge its risks associated with
 foreign currency fluctuations relating to certain firm commitments and
 highly probable transactions.
 
 The use of forward contracts is governed by the Company''s policies 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.
 
 Forward contract derivative instruments are initially measured at fair
 value, and are re-measured at subsequent reporting dates. Considering
 that these derivative instruments do not qualify for hedge accounting,
 these changes in fair value are recognized in the profit and loss
 account as and when they arise during the year. Gains arising on such
 changes in fair value are however not recognised as a matter of
 prudence.
 
 (xi) Employee Benefits
 
 Defined Contribution Plans:
 
 a.  Provident Fund: Fixed contributions to Provident Fund and Employee
 State Insurance made on monthly basis with relevant authorities are
 absorbed by the Profit and Loss Account.
 
 b.  Superannuation Fund: The Company makes contribution to a Scheme
 administered by the Life Insurance Corporation of India (LIC) to
 discharge its liabilities towards super-annuation to the employees and
 the same is expensed to Profit and Loss Account. The Company has no
 other liability other than its annual contribution.
 
 Defined Benefit Plans (Long term employee benefits):
 
 Gratuity: The Company accounts for its liability for future gratuity
 benefits based on actuarial valuation, as at the balance sheet date,
 determined by LIC using the Projected Unit Credit method. The Company
 makes its contribution to a fund administered by the LIC to discharge
 gratuity liability to the employees. Effects of changes in actuarial
 valuation are immediately recognised in the Profit and Loss Account.
 
 Compensated Absences: Liability for compensated absences payable at the
 time of retirement / resignation is determined on actuarial valuation
 as at the balance sheet date, by LIC using the Projected Unit Credit
 method. The Company makes its contribution to a fund administered by
 the LIC to discharge the liability for compensated absences to the
 employees. Effects of changes in actuarial valuation are immediately
 recognised in the Profit and Loss Account.
 
 Short term employee benefits: Short term employee benefits are
 recognised as an expense as per the Company''s scheme based on expected
 obligations on an undiscounted basis.
 
 With respect to overseas subsidiary, the company has provided for
 employee benefits as per their local regulations.
 
 (xii) Taxation:
 
 Current Tax is determined in accordance with the provisions of the
 Income Tax Act 1961. Minimum Alternate Tax paid in accordance with the
 tax laws which gives rise to future economic benefits in the form of
 adjustment of future Income Tax liability, is considered as an asset if
 there is convincing evidence that the company will pay normal tax after
 the tax holiday period. Accordingly it is recognized as an asset in the
 Balance Sheet when it is probable that the future economic benefit
 associated with it will flow to the Company and the asset can be
 measured reliably.
 
 Deferred Tax is calculated at the rates and laws that have been enacted
 or substantively enacted as of the balance sheet date and is recognized
 on timing differences that originate in one period and are expected to
 reverse after the expiry of exemption period under Section 10Aof the
 Income Tax Act, 1961. Deferred Tax Assets, subject to consideration of
 prudence, are recognised and carried forward only to the extent that
 they can be realized.
 
 (xiii) Provisions, Contingent Liabilities and Contingent Assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognized but are disclosed in the
 notes.  Contingent Assets are neither recognized nor disclosed in the
 financial statements.