a.  Basis of accounting and preparation of financial statements
 
 The financial statements are prepared under the historical cost
 convention and comply in all material aspects with all the applicable
 accounting principles in India, the applicable accounting standard
 notified under sub-section (3C) of section 211 of ‘The Companies Act,
 1956’ of India (the ‘Act’) and other relevant provisions of the Act.
 
 b.  Fixed Assets and Depreciation
 
 Fixed Assets are stated at cost of acquisition less accumulated
 depreciation. Direct costs are capitalized until the assets are ready
 for use and include inward freight, duties, taxes and expenses
 incidental to acquisition and installation.
 
 Depreciation on fixed assets is provided on the straight Line method
 over the useful life of assets, as estimated by the management or as
 per schedule XIV of the Act in cases where the rates specified therein
 are higher. Assets individually costing less than Rs. 5,000 are
 depreciated fully in the year of acquisition. expenditure incurred on
 purchase of software used in operations of the entity is depreciated
 over its estimated life. the useful lives estimated by the management
 which are higher than rates specified as per schedule XIV are as under:
 
 Goodwill                  3 years
 
 Leasehold Land            Lease term ranging from 95-99 years
 
 Owned/Leasehold Premises  25 - 30 years
 
 Computers                 2 years
 (Included in plant 
 and machinery)
 
 Other plant and machinery 5 years
 
 Software                  1 - 5 years
 
 Furniture and Fittings    5 years
 
 Leasehold Improvements    5 years or the primary period 
                           of lease whichever is less
                           Vehicles 5 years
 
 c.  Investments
 
 Long-term investments are stated at cost less provision made to
 recognize any decline, other than temporary, in the value of such
 investments. Investments in subsidiaries are carried at their original
 rupee cost unless impaired. Current investments are stated at the lower
 of cost and fair value. Any reduction in carrying amount and any
 reversal of such reductions are charged or credited to the Profit and
 Loss Account.
 
 d.  Foreign Currency Transactions and Translation
 
 Transactions denominated in foreign currencies are recorded at the
 rates of exchange prevailing on the date of transaction. monetary
 assets and liabilities denominated in foreign currency are converted at
 the rate of exchange prevailing on the date of the Balance sheet.
 exchange differences arising on foreign currency transactions and
 balances are recognized as income or expense in the Profit and Loss
 Account.
 
 In case of forward exchange contract or any other financial instrument
 that is in substance a forward exchange contract to hedge the foreign
 currency risk which is on account of firm commitment and/or is a highly
 probable forecast transaction, the premium or discount arising at the
 inception of the contract is amortized as expense or income over the
 life of the contract.
 
 Gains/losses on settlement of transaction arising on cancellation or
 renewal of such a forward exchange contract are recognized as income or
 expense for the period.
 
 In case of Forward Contracts that are open on the Balance sheet date
 and are not backed by Receivables, the gain or loss is computed by
 multiplying the foreign currency amount of the forward contract by the
 difference between the forward rate available at the reporting date for
 the remaining maturity of the contract and the contracted forward rate.
 the loss so computed is recognised in the profit and loss account for
 the period, however the gain is not recognised.
 
 In respect of transactions related to foreign branch, all revenue and
 expense transactions during the year are reported at average rate.
 monetary assets and liabilities are translated at the rate prevailing
 on the Balance sheet date whereas non-monetary assets and liabilities
 are translated at the rate prevailing on the date of the transaction.
 Net gain/loss on foreign currency translation is recognized in the
 Profit and Loss Account.
 
 e.  Employee Benefits
 
 1.  Defned Contribution Plans
 
 The Company has Defned Contribution Plans for post employment benefits
 in the form of provident Fund and
 
 superannuation Fund in India which are administered through government
 of India and/or Life Insurance Corporation of India (LIC). provident
 Fund and superannuation Fund (which constitutes an insured benefit) are
 classified as Defned Contribution Plans. The Company also makes
 contributions towards defned contribution plans in respect of its
 branches in foreign jurisdictions, as applicable. under such Defned
 Contribution Plans, the Company has no further obligation beyond making
 the contributions. the Company''s contributions to Defned Contribution
 Plans are charged to the Profit and Loss Account as incurred.
 
 2.  Defned Benefit Plans
 
 The Company has Defned Benefit Plans for post employment benefits in
 the form of gratuity and Leave encashment.  gratuity schemes of the
 Company are administered through Life Insurance Company of India.
 Liability for Defned Benefit Plans is provided on the basis of
 actuarial valuations, as at the Balance sheet date, carried out by
 independent actuary. the actuarial valuation method used by independent
 actuary for measuring the liability is the projected unit Credit
 method. Actuarial gains and losses comprise experience adjustments and
 the effects of changes in actuarial assumptions and are recognized
 immediately in the Profit and Loss Account as income or expense.
 
 f.  Revenue Recognition
 
 The Company derives its revenues primarily from software services.
 
 Revenues from customer support services are recognized ratably over the
 term of the support period.
 
 Revenues from software related services are primarily related to
 implementation services performed on a time and materials basis under
 separate service arrangements.  Revenues with respect to time and
 material contracts are recognized as and when services are rendered.
 
 Revenues from fixed price, fixed time frame contracts are recognized in
 accordance with the percentage of completion method measured by the
 percentage of cost incurred over the estimated total cost for each
 contract. the cumulative impact of any revision in estimates of the
 percentage of work completed is refected in the period in which the
 change becomes known. provisions for estimated losses on such
 engagements are made during the period in which a loss becomes probable
 and can be reasonably estimated.
 
 Amounts received or billed, in advance of services performed are
 recorded as unearned revenue. unbilled revenue included in debtors
 represents amounts recognized based on services performed in accordance
 with contract terms and where billings are pending.
 
 Dividend income from investments is recognized when the right to
 receive payment is established. Dividend declared by the subsidiary
 companies after the date of the Balance sheet is accounted during the
 year as required by Accounting standard (As) 9 - ‘Revenue Recognition’.
 
 Interest income is recognized on time proportion basis.
 
 g.  Borrowings Costs
 
 Borrowing costs that are incurred on borrowings made specifically for
 the acquisition, construction or production of a qualifying asset are
 capitalized as a part of that asset. the amount of borrowing costs from
 funds that are borrowed generally and used for the purpose of obtaining
 a qualifying asset are calculated by applying a weighted average
 capitalization rate to the expenditure on that asset. other borrowing
 costs are recognized as an expense in the period in which they are
 incurred.
 
 h.  Leases
 
 Assets taken on leases which transfer substantially all the risks and
 rewards incidental to ownership of the assets i.e. finance leases, in
 terms of provisions of Accounting standard (As) 19 - ‘Leases’, are
 capitalized. the assets are capitalized at the lower of the fair value
 at the inception of the lease and the present value of minimum lease
 payments and a liability is created for an equivalent amount. such
 assets are disclosed as a part of the class of owned assets to which
 they belong and are depreciated accordingly.  Each lease rental paid on
 the finance lease is allocated between the liability and interest cost,
 so as to obtain a constant periodic rate of interest on the outstanding
 liability for each period. Other leases are classified as operating
 leases and rental payments in respect of such leases are charged to
 Profit and Loss Account on a straight line basis over the lease term.
 
 i.  Earnings per share
 
 Basic earnings per share (EPS) are calculated by dividing the net
 loss/profit after tax for the year (including the post-tax effect of
 extraordinary items, if any) attributable to equity shareholders by the
 weighted average number of equity shares outstanding during the period.
 Diluted earnings per share is computed by adjusting the number of
 shares used for basic EPS with the weighted average number of shares
 that could have been issued on the conversion of all dilutive potential
 equity shares.
 
 Dilutive potential equity shares are deemed converted as of the
 beginning of the year, unless they have been issued at a later date.
 the diluted potential equity shares have been adjusted for the proceeds
 receivable had the shares been actually issued at fair value i.e.
 average market value of outstanding shares.  the number of shares and
 potentially dilutive shares are adjusted for share splits and bonus
 shares, as appropriate. In calculating diluted earnings per share, the
 effects of anti dilutive potential equity shares are ignored. potential
 equity shares are anti-dilutive when there conversion to equity shares
 would increase earnings per share or decrease loss per share.
 
 j.  Income taxes
 
 Provision for tax for the year comprises of current tax and deferred
 tax. Current tax provision is measured by the amount of tax expected to
 be paid on the taxable profits after considering tax allowances and
 exemptions and using applicable tax rates and laws. Deferred tax assets
 and liabilities are recognized for the future tax consequences
 attributable to timing differences between the financial statements’
 carrying amounts of existing assets and liabilities and their
 respective tax bases and operating loss carry forwards. Deferred tax
 assets and liabilities are measured on the timing differences applying
 the tax rates and tax laws that have been enacted or substantively
 enacted by the Balance sheet date. Changes in deferred tax assets and
 liabilities between one Balance sheet date and the next are recognized
 in the Profit and Loss Account in the year of change.  the effect on
 deferred tax assets and liabilities of a change in tax rates is
 recognized in the Profit and Loss Account in the year of change.
 Deferred tax assets are recognized only if there is reasonable
 certainty that they will be realized by way of future taxable income.
 Deferred tax assets related to unabsorbed depreciation and carry
 forward losses are recognized only to the extent that there is virtual
 certainty of realization. Deferred tax assets are reviewed for
 appropriateness of their carrying amounts at each Balance sheet date.
 
 k.  Accounting for Employee Stock Options
 
 Stock options granted to employees of the Company and its subsidiaries
 under the stock option schemes established after June 19, 1999 are
 accounted as per the treatment prescribed by employee stock option
 scheme and employee stock purchase scheme guidelines 1999 (SEBI
 guidelines) as amended from time to time, issued by the securities and
 exchange Board of India. According to the above guidelines, the excess
 of market value of the stock options as on the date of grant over the
 exercise price of the options, if any is to be recognized as deferred
 employee compensation and is charged to the Profit and Loss account
 ratably over the vesting period of the options.
 
 l.  Estimates
 
 The preparation of financial statements in conformity with GAAP
 requires that the management makes estimates and assumptions that
 affect the reported amounts of assets and liabilities, disclosure of
 contingent liabilities as at the date of the financial statements, and
 the reported amounts of revenue and expenses during the reported
 period. Actual results could differ from those estimates.
 
 m.  Provisions
 
 Provisions are recognised when the Company has a present obligation as
 a result of past events, for which it is probable that an outflow of
 resources embodying economic benefits will be required to settle the
 obligation, and a reliable estimate of the amount can be made.
 provisions are reviewed regularly and are adjusted where necessary to
 refect the current best estimates of the obligation.  Where the Company
 expects a provision to be reimbursed, the reimbursement is recognized
 as a separate asset, only when such reimbursement is virtually certain.
 
 n.  Impairment of Assets
 
 At each Balance sheet date, the Company assesses whether there is any
 indication that an asset may be impaired. If any such indication
 exists, management estimates the recoverable amount. If the carrying
 amount of the asset exceeds its recoverable amount, an impairment loss
 is recognised in the Profit and Loss Account to the extent carrying
 amount exceeds recoverable amount.