(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 the 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. Differences between the actual
 results and estimates are regrouped in the period in which the results
 are known/materialized.
 
 (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 less
 amortization.
 
 (iv) Depreciation / Amortization
 
 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 Rs5,000 added in the year of purchase 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 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:
 
 Plant & Machinery - 5 years.
 
 Intangible Software - 5 years.
 
 Furniture & Fixtures - 7 years.
 
 Leasehold improvements - 3 years.
 
 (v) Impairment of Assets
 
 The carrying values of assets of the cash-generating units at each
 Balance Sheet date are reviewed for impairment. If any indication of
 such impairment exists, the recoverable amounts of those assets are
 estimated and impairment loss is recognized, if the carrying amount of
 those assets exceeds their recoverable amount. The recoverable amount
 is the greater of the net selling price and their value in use. Value
 in use is arrived at by discounting the estimated future cash flows to
 their present value based on appropriate discount factor.
 
 (vi) Investments
 
 Long-term Investments are carried at cost. Provision for diminution, if
 any, in the value of long-term investments is made, to recognize a
 decline, other than temporary. Such diminution is determined for each
 investment individually. Current Investments are stated at lower of
 cost or fair value.
 
 (vii) Inventories
 
 Inventories comprising Work in Process, are valued at the lower of cost
 and net realizable value. The cost comprises 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
 
 Revenue is recognized on delivery of projects or as per terms specified
 in contracts/purchase orders received from customers.
 
 Revenues for web-site design and development are recognized based on
 the percentage of completion of the project. Revenues from web-site
 hosting are recognized ratably over the year for which the site is
 hosted and on man-hours basis for BPO operations.
 
 Dividend income from investment in units of Mutual Funds is recognized
 on accrual basis when the right to receive the same is established
 based, on declaration by the Mutual Funds.
 
 Rental Income is recognized as per contractual terms. Interest income
 is accounted on accrual basis.
 
 (ix) Foreign Currency Transactions
 
 (a) Transactions in foreign currency 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 and 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.
 
 (c) Overseas Operations
 
 In accordance with Accounting Standard 11 (Revised), ''Accounting for
 the effects of changes in foreign exchange rates'', the branches located
 outside India have been classified as Integral Foreign Operations.
 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) Employee Benefits Defined contribution plans:
 
 a.  Provident Fund: Fixed contributions to defined contribution plans
 such as Provident Fund and Employee State Insurance made on a monthly
 basis to relevant authorities are charged to the Profit and Loss
 account as they fall due.
 
 b.  Superannuation Fund: The Company makes contribution to a scheme
 administered by the Life Insurance Corporation of India (LIC) to
 discharge its liabilities towards superannuation to certain employees
 and the same is charged to the Profit and Loss account.
 
 Defined benefit plans
 
 Gratuity: The Company accounts for its liability for future gratuity
 benefits, as at the Balance Sheet date. This is determined through
 actuarial valuation using the projected unit credit method. The Company
 makes its contribution to a fund administered by the LIC. Actuarial
 gains and losses are immediately recognized in the Profit and Loss
 account.
 
 Other Long term benefits: Liability for compensated absences payable at
 the time of retirement / resignation is determined on actuarial basis
 as at the Balance Sheet date, using the projected unit credit method.
 The Company makes its contribution to a fund administered by the LIC.
 Actuarial gains and losses are immediately recognized in the Profit and
 Loss account.
 
 Short term employee benefits: Short term employee benefits are
 recognized as an expense as per the Company''s scheme based on expected
 obligations on an undiscounted basis.
 
 With respect to the overseas branch, the Company provides for employee
 benefits as per the local regulations.
 
 (xi) Taxation
 
 Current income tax expenses comprise 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.
 
 Minimum Alternate Tax (MAT) 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 in the
 subsequent years. 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 substantially enacted as of the Balance Sheet date and is recognized
 on timing differences that originate in one period and are capable of
 reversal in one or more subsequent periods. Deferred tax assets,
 subject to consideration of prudence are recognized and carried forward
 only to the extent that they can be realized.
 
 (xii) Cash Flow Statement
 
 The Cash Flow Statement has been prepared in accordance with the
 Indirect method prescribed in Accounting Standard 3 - ''Cash flow
 statements''. The cash flows from operating, investing and financing
 activities of the Company are segregated.
 
 (xiii) Provisions, Contingent Liabilities and Contingent Assets
 
 Provisions and Contingencies: A provision is recognized when the
 Company has 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. Contingent Liabilities are not
 recognized but are disclosed in the notes.
 
 Contingent assets are neither recognized nor disclosed in the financial
 statements.