2.1 Basis of preparation of fnancial statements
 
 The fnancial statements are prepared in accordance with the generally
 accepted accounting principles in India (GAAP) under the historical
 cost convention. GAAP includes mandatory accounting standards
 prescribed by the Companies (Accounting Standards) Rules, 2006 (as
 amended) / issued by the Institute of Chartered Accountants of India
 (‘ICAI) and the relevant provisions of the Companies Act, 1956 (‘the
 Act).
 
 Accounting policies have been consistently applied except where a newly
 issued accounting standard is initially adopted or a revision to an
 existing accounting standard requires a change in accounting policy
 hitherto in use. Where a change in accounting policy is necessitated
 due to changed circumstances, detailed disclosures to that effect along
 with the impact of such change is duly disclosed in the fnancial
 statements.
 
 2.2 Use of estimates
 
 The preparation of the fnancial statements in conformity with GAAP
 requires the Management to make estimates and assumptions that affect
 the reported amounts of assets and liabilities, disclosure of
 contingent liabilities as at the date of the fnancial statements, and
 the reported amounts of income and expenses during the reporting period
 like useful lives of fxed assets, provision for doubtful debts /
 advances, provision for diminution in value of investments, provision
 for employee benefts, future contracts costs expected to be incurred to
 complete the projects, provision for anticipated losses on contracts,
 provision for warranties / discounts, allowances for certain
 uncertainties, provision for taxation, provision for contingencies etc.
 Actual results could differ from those estimates.  Changes in estimates
 are refected in the fnancial statements in the period in which changes
 are made and, if material, their effects are disclosed in the fnancial
 statements.
 
 2.3 Inventories
 
 Inventories comprising of hardware equipments and other items are
 carried at the lower of cost and net realisable value. Cost is
 determined on a specifc identifcation basis. Cost includes material
 cost, freight and other incidental expenses incurred in bringing the
 inventory to the present location / condition.
 
 2.4 Cash and cash equivalents
 
 Cash and cash equivalents in the Balance Sheet comprise cash at bank
 and in hand and short-term deposits with banks with an original
 maturity of three months or less.
 
 2.5 Cash fow statement
 
 Cash fows are reported using the indirect method, whereby proft /
 (loss) before tax is adjusted for the effects of transactions of
 non-cash nature and any deferrals or accruals of past or future cash
 receipts or payments. The cash fows from operating, investing and
 fnancing activities of the Company are segregated based on the
 available information.
 
 2.6 Revenue recognition
 
 Income from operations
 
 Revenue from services consist primarily of revenue earned from services
 performed on a ‘time and material basis. The related revenue is
 recognised as and when the services are rendered and related costs are
 incurred and when there is no signifcant uncertainty in realising the
 same.
 
 Revenue from fxed price, fxed time frame contracts are recognised using
 the percentage of completion method of accounting.  The percentage of
 completion is determined by relating the actual project cost of work
 performed to date to the estimated total project cost for each
 contract. Total contract cost is determined based on technical and
 other assessment of cost to be incurred. The cumulative impact of any
 revision in estimates of the percentage of work completed is refected
 in the year in which the change becomes known.
 
 Provisions for estimated losses on contracts are made during the period
 in which a loss becomes probable and can be reasonably estimated.
 
 Liquidated damages and penalties are accounted as per the contract
 terms wherever there is a delayed delivery attributable to the Company
 and when there is a reasonable certainty with which the same can be
 estimated.
 
 Revenues from the sale of hardware equipments and other items are
 recognised upon delivery / deemed delivery, which is when title passes
 to the customer.
 
 Revenues from maintenance contracts are recognised pro-rata over the
 period of the contract.
 
 Revenue is net of volume discounts / price incentives which are
 estimated and accounted for based on the terms of the contracts and
 also net of applicable indirect taxes.
 
 Amounts received or billed in advance of services performed are
 recorded as advances from customers / unearned revenue.
 
 Unbilled revenue represents amounts recognised based on services
 performed in advance of billing in accordance with contract terms and
 is net of estimated allowance for uncertainties and provision for
 estimated losses.
 
 Revenue recognition is based on the terms and conditions as per the
 contracts entered into with the customers. In respect of expired
 contracts under renewal or where there are no contracts available,
 revenue is recognised based on the erstwhile contract / provisionally
 agreed terms and / or understanding with the customers.
 
 Interest income
 
 Interest income is recognised using the time proportion method, based
 on the transactional interest rates.
 
 Dividend income
 
 Dividend income is recognised when the Companys right to receive
 dividend is established.
 
 2.7 Post-sales client support and warranties
 
 Post-sales client support and warranty costs are estimated by the
 Management on the basis of technical evaluation and past experience of
 costs. Provision is made for the estimated liability in respect of
 warranty costs in the year of recognition of revenue and is included in
 the Proft and Loss account. The estimates used for accounting for
 warranty costs are reviewed periodically and revisions are made as and
 when required.
 
 2.8 Fixed assets
 
 Fixed assets are stated at actual cost less accumulated depreciation
 and net of impairment. The actual cost capitalised includes material
 cost, freight, installation cost, duties and taxes, eligible borrowing
 costs and other incidental expenses incurred during the construction /
 installation stage.
 
 Depreciation on fxed assets is computed on the straight line method
 over their estimated useful lives at the rates which are higher than
 the rates prescribed under Schedule XIV of the Act. Depreciation is
 charged on a pro-rata basis from the date of capitalisation.
 Individual assets costing Rs. 5,000 or less are fully depreciated in the
 year of acquisition.
 
 Depreciation is accelerated on fxed assets, based on their condition,
 usability etc., as per the technical estimates of the Management, where
 necessary.
 
 The cost and the accumulated depreciation of fxed assets sold, retired
 or otherwise disposed off are removed from the stated values and the
 resulting gains and losses are included in the Proft and Loss account.
 
 Assets under installation or under construction as at the Balance Sheet
 date are shown as capital work-in-progress. Advances paid towards
 acquisition of assets are also included under capital work-in-progress.
 
 Intangible assets
 
 Intangible assets, including computer software, are recorded at the
 consideration paid for acquisition of such assets and are carried at
 cost less accumulated amortisation and impairment. Intangible assets
 are amortised over their respective individual estimated useful lives
 (generally one to three years) on a straight line basis or over the
 license period (where applicable), whichever is lower.
 
 2.9 Foreign currency transactions / translations
 
 Transactions in foreign currency are recorded at the exchange rates
 prevailing on the date of transactions. Monetary assets and liabilities
 denominated in foreign currency are translated at the rates of exchange
 at the Balance Sheet date and the resultant gain or loss is recognised
 in the Proft and Loss account.
 
 Gains or losses realised upon settlement of foreign currency
 transactions are recognised in the Proft and Loss account.
 
 The operations of foreign branches of the Company are integral in
 nature and the fnancial statements of these branches are translated
 using the same principles and procedures as those of the head offce.
 
 The Company enters into forward exchange contracts and other
 instruments that are in substance a forward exchange contract to hedge
 its risks associated with foreign currency fuctuations. The premium or
 discount arising at the inception of a forward exchange contract (other
 than for a frm commitment or a highly probable forecast) or similar
 instrument is amortised as expense or income over the life of the
 contract. Exchange differences on such a contract are recognised in the
 Proft and Loss account in the year in which the exchange rates change.
 Any proft or loss arising on cancellation of such a contract is
 recognised as income or expense for the year.
 
 The Company uses forward / option contracts to hedge its risks
 associated with foreign currency fuctuations relating to certain frm
 commitments and forecasted transactions. The use of forward contracts
 is governed by the Companys policies on the use of such fnancial
 derivatives consistent with the Companys risk management strategy. The
 Company does not use derivative fnancial instruments for speculative
 purposes.
 
 Forward contracts in the nature of derivatives are marked to market
 where ever required, as at the Balance Sheet date and provision for
 losses, if any, is dealt with in the Proft and Loss account. Unrealised
 gains, if any, on such derivatives are not recognised in the Proft and
 Loss account.
 
 2.10 Government grants
 
 Government grants are recognised when there is reasonable assurance
 that the Company will comply with the conditions attached to them and
 the grants will be received.
 
 Government grants whose primary condition is that the Company should
 purchase, construct or otherwise acquire capital assets are presented
 by deducting them from the carrying value of the assets. The grant is
 recognised as income over the life of the depreciable asset by way of
 reduced depreciation charge. Grants in the nature of capital subsidy
 are treated as capital reserve based on receipt / eligibility.
 
 Grants related to revenue are accounted for as other income in the
 period in which the related costs which they intend to compensate are
 accounted for to the extent there is no uncertainty in receiving the
 same. Incentives which are in the nature of subsidies given by the
 Government which are based on the performance of the Company are
 recognised in the year of performance / eligibility in accordance with
 the related scheme.
 
 Government grants in the form of non-monetary assets, given at a
 concessional rate are accounted for at their acquisition costs.
 
 2.11 Investments
 
 Investments are classifed into current investments and long-term
 investments based on their nature / holding period / Managements
 intent etc., at the time of purchase. Current investments are carried
 at the lower of cost and fair value. Long-term investments are carried
 at cost less provision made to recognise any decline, other than
 temporary, in the value of such investments. Any reduction in carrying
 amount or any reversals of such reductions are charged or credited to
 the Proft and Loss account.
 
 2.12 Employee benefts
 
 Defned contribution plans
 
 Contributions payable to the recognised provident fund and pension fund
 maintained with the Central Government and superannuation fund, which
 are defned contribution schemes, are charged to the Proft and Loss
 account on accrual basis. The Company has no further obligations for
 future provident fund and superannuation fund benefts other than its
 annual contributions.
 
 Defned beneft plans
 
 The Company accounts its liability for future gratuity benefts based on
 actuarial valuation, as at the Balance Sheet date, determined every
 year using the Projected Unit Credit method. Actuarial gains and losses
 are charged to the Proft and Loss account in the period in which they
 arise. Obligation under the defned beneft plan is measured at the
 present value of the estimated future cash fow using a discount rate
 that is determined by reference to the prevailing market yields at the
 Balance Sheet date on Indian Government Bonds where the currency and
 terms of the Indian Government Bonds are consistent with the currency
 and estimated term of the defned beneft obligation.
 
 Compensated absences
 
 The Company accounts for its liability towards compensated absences
 based on actuarial valuation done as at the Balance Sheet date by an
 independent actuary using the Projected Unit Credit method. The
 liability includes the long term component accounted on a discounted
 basis and the short term component which is accounted for on an
 undiscounted basis.
 
 Other short term employee benefts
 
 Other short-term employee benefts, including overseas social security
 contributions and performance incentives expected to be paid in
 exchange for the services rendered by employees, are recognised during
 the period when the employee renders the service.
 
 2.13 Associates stock options scheme
 
 Stock options granted to the associates(employees) are accounted as per
 the accounting treatment prescribed by the Employee Stock Option Scheme
 and Employee Stock Purchase Scheme Guidelines, 1999 (‘ESOP Guidelines)
 issued by Securities and Exchange Board of India (‘SEBI) and the
 Guidance Note on Accounting for Employee Share-based Payments, issued
 by the ICAI. The Company measures compensation cost relating to
 employee stock options using the intrinsic value method. The
 compensation cost, if any, is amortised over the vesting period of the
 options.
 
 2.14 Borrowing costs
 
 Borrowing costs directly attributable to the acquisition or
 construction of qualifying assets, which necessarily take a substantial
 period of time to get ready for their intended use, are capitalised.
 Other borrowing costs are recognised as expense in the Proft and Loss
 account.
 
 2.15 Leases
 
 Assets taken on lease by the Company in the capacity of a lessee, where
 the Company has substantially all the risks and rewards of ownership
 are classifed as fnance lease. Such leases are capitalised at the
 inception of the lease at the lower of the fair value or the present
 value of the minimum lease payments and a liability is created for an
 equivalent amount. Each lease rental paid is allocated between the
 liability and the 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 ownership
 of an asset substantially vest with the lessor, are recognised as
 operating leases. Lease rentals under operating leases are recognised
 in the Proft and Loss Account on a straight line basis.
 
 2.16 Earnings per share
 
 Basic earnings per share is computed by dividing the proft / (loss)
 after tax (including the post tax effect of extra ordinary items, if
 any) by the weighted average number of equity shares outstanding during
 the year. Diluted earnings per share is computed by dividing the proft
 / (loss) after tax (including the post tax effect of any extra ordinary
 items, if any) by the weighted average number of equity shares
 considered for deriving basic earnings per share and also the weighted
 average number of equity shares which could have been issued on the
 conversion of all dilutive potential equity shares. Dilutive potential
 equity shares are deemed converted as at the beginning of the period,
 unless they have been issued at a later date. The dilutive potential
 equity shares are adjusted for the proceeds receivable had the shares
 been actually issued at fair value (i.e. average market value of the
 outstanding shares). Dilutive potential equity shares are determined
 independently for each period presented.
 
 The number of equity shares and potentially dilutive equity shares are
 adjusted for share splits / reverse share splits and bonus shares, as
 appropriate.
 
 2.17 Taxes on income
 
 The current income tax charge is determined in accordance with the
 relevant tax regulations applicable to the Company. Deferred tax charge
 or credits are recognised for the future tax consequences attributable
 to timing differences that result between the proft / (loss) offered
 for income taxes and the proft as per the fnancial statements.
 
 Deferred tax in respect of timing difference which originate during the
 tax holiday period but reverse after the tax holiday period is
 recognised in the year in which the timing differences originate. For
 this purpose the timing differences which originate frst are considered
 to reverse frst. The deferred tax charge or credit and the
 corresponding deferred tax liabilities or assets are recognised using
 the tax rates that have been enacted or substantively enacted by the
 Balance Sheet date. Deferred tax assets are recognised only to the
 extent there is reasonable certainty that the assets can be realised in
 future; however, when there is a brought forward loss or unabsorbed
 depreciation under taxation laws, deferred tax assets are recognised
 only if there is virtual certainty of realisation of such assets.
 Deferred tax assets are reviewed as at each Balance Sheet date and
 written down or written up to refect the amount that is reasonably /
 virtually certain to be realised.
 
 The Company offsets, on a year on year basis, the current tax assets
 and liabilities, where it has a legally enforceable right and intends
 to settle such assets and liabilities on a net basis.
 
 MAT credit
 
 Minimum Alternate Tax (MAT) credit is recognised as an asset only when
 and to the extent there is convincing evidence that the Company will
 pay normal income tax during the specifed period. In the year in which
 the MAT credit becomes eligible to be recognised as an asset, in
 accordance with the provisions contained in the Guidance Note on
 Accounting for Credit Available under Minimum Alternative Tax, issued
 by the ICAI, the said asset is created by way of a credit to the Proft
 and Loss account and shown as MAT Credit Entitlement. The Company
 reviews the same at each Balance Sheet date and writes down the
 carrying amount of MAT Credit Entitlement to the extent there is no
 longer convincing evidence to the effect that the Company will pay
 normal income tax during the specifed period.
 
 2.18 Research and development
 
 Research costs are expensed as incurred. Development costs are expensed
 as incurred unless technical and commercial feasibility of the project
 is demonstrated, future economic benefts are probable, the Company has
 an intention and ability to complete and use the asset and the costs
 can be measured reliably.
 
 2.19 Impairment
 
 The Company assesses at each Balance Sheet date whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the Company estimates the recoverable amount of the asset. For
 an asset that does not generate largely independent cash infows, the
 recoverable amount is determined for the cash-generating unit to which
 the asset belongs. If such recoverable amount of the asset or the
 recoverable amount of the cash generating unit to which the asset
 belongs is less than its carrying amount, the carrying amount is
 reduced to its recoverable amount. The reduction is treated as an
 impairment loss and is recognised in the Proft and Loss account. If at
 the Balance Sheet date there is an indication that a previously
 assessed impairment loss no longer exists, the recoverable amount is
 reassessed and the asset is refected at the recoverable amount. An
 impairment loss is reversed only to the extent that the carrying amount
 of asset does not exceed the net book value that would have been
 determined if no impairment loss had been recognised.
 
 2.20 Provisions and contingent liabilities
 
 Provisions are recognised only when there is a present obligation as a
 result of past events and when a reliable estimate of the amount of
 obligation can be made. Contingent liability is disclosed for (i)
 Possible obligation which will be confrmed only by future events not
 wholly within the control of the Company or (ii) Present obligations
 arising from past events where it is not probable that an outfow of
 resources will be required to settle the obligation or a reliable
 estimate of the amount of the obligation cannot be made. Contingent
 assets are not recognised in the fnancial statements since this may
 result in the recognition of income that may never be realised.
 
 2.21 Insurance claims
 
 Insurance claims are accounted for on the basis of claims admitted /
 expected to be admitted and to the extent that there is no uncertainty
 in receiving the claims.
 
 2.22 Service tax input credit
 
 Service tax input credit is accounted for in the books in the period in
 which the underlying service received is accounted and when there is no
 uncertainty in availing / utilising the credits.