(i) Basis of preparation
 
 The financial statements are prepared under the historical cost
 convention on the accrual basis, in accordance with the Indian
 Generally Accepted Accounting Principles (GAAP) and mandatory
 accounting standards as prescribed in the Companies (Accounting
 Standard) Rules, 2006, the provisions of the Companies Act, 1956 and
 guidelines issued by the Securities and Exchange Board of India
 (SEBI). Accounting policies have been consistently applied except
 where a newly issued accounting standard, if initially adopted or a
 revision to an existing accounting standard requires a change in the
 accounting policy hitherto in use. Management evaluates all recently
 issued or revised accounting standards on an ongoing basis.
 
 (ii) use of estimates
 
 The preparation of financial statements in conformity with GAAP
 requires management to make estimates and assumptions that affect the
 reported amounts of assets and liabilities, disclosure of contingent
 assets and liabilities at the date of the financial statements and the
 reported amounts of revenues and expenses during the reporting period.
 Examples of such estimates include estimates of expected contract costs
 to be incurred to complete contracts, provision for doubtful debts,
 future obligations under employee retirement benefit plans and
 estimated useful life of fixed assets. Actual results could differ from
 these estimates. Any changes in estimates are adjusted prospectively.
 
 (iii) Revenue recognition
 
 Revenue from software development services comprises income from time
 and material and fixed price contracts.  Revenue from time and material
 contracts is recognised as the services are rendered. Revenue from
 fixed price contracts and sale of license and related customisation and
 implementation is recognised in accordance with the percentage
 completion method calculated based on output method. Provision for
 estimated losses, if any, on uncompleted contracts are recorded in the
 year in which such losses become certain based on the current
 estimates.
 
 Revenue from annual technical service contracts is recognised on a pro
 rata basis over the period in which such services are rendered.
 
 Service income accrued but not due represents revenue recognised on
 contracts to be billed in the subsequent period, in accordance with
 terms of the contract.
 
 Profit on sale of investments is recorded on transfer of title from the
 Company and is determined as the difference between the sales price and
 the then carrying value of the investment. Interest on deployment of
 surplus funds is recognised using the time-proportion method, based on
 interest rates implicit in the transaction. Dividend income is
 recognised when the right to receive the same is established.
 
 (iv) expenditure
 
 The cost of software purchased for use in software development and
 services is charged to cost of revenues in the year of acquisition.
 Expenses are accounted for on accrual basis and provisions are made for
 all known losses and liabilities.
 
 (v) Fixed assets and capital work in progress
 
 Fixed assets are stated at the cost of acquisition including incidental
 costs related to acquisition and installation. Fixed assets under
 construction, advances paid towards acquisition of fixed assets and
 cost of assets not put to use before the year end, are disclosed as
 capital work-in-progress.
 
 (vi) Depreciation
 
 Depreciation on fixed assets, except leasehold land and leasehold
 improvements, is provided on the straight-line method based on useful
 lives of respective assets as estimated by the management. Leasehold
 land is amortised over the period of lease. The leasehold improvements
 are amortised over the remaining period of lease or the useful lives of
 assets, whichever is shorter. Depreciation is charged on a pro-rata
 basis for assets purchased / sold during the year. Assets costing less
 than Rs. 5,000 are fully depreciated in the year of purchase.
 
 (vii) Investments
 
 Investments are classified into long term and current investments based
 on the intent of management at the time of acquisition. Long-term
 investments including investment in subsidiaries are stated at cost and
 provision is made to recognise any decline, other than temporary, in
 the value of such investments. Current investments are stated at the
 lower of cost and the fair value.
 
 (viii) Research and development
 
 Revenue expenditure incurred on research and development is expensed as
 incurred. Capital expenditure incurred on research and development is
 capitalised as fixed assets and depreciated in accordance with the
 depreciation policy of the Company.
 
 (ix) Foreign exchange transactions
 
 Foreign exchange transactions are recorded at the exchange rates
 prevailing at the date of transaction. Realised gains and losses on
 foreign exchange transactions during the year are recognised in the
 Profit and Loss Account. Monetary assets and monetary liabilities that
 are determined in foreign currency are translated at the exchange rate
 prevalent at the date of balance sheet. The resulting difference is
 recorded in the Profit and Loss Account.
 
 The Company uses foreign exchange forward contracts and options to
 hedge its exposure for movement in foreign exchange rates. The use of
 these foreign exchange forward contracts and options reduces the risk
 or cost to the Company and the Company does not use the foreign
 exchange forward contracts or options for trading or speculation
 purposes.
 
 The Company follows Accounting Standard (AS) 30 – Financial
 Instruments: Recognition and Measurement to the extent that the
 adoption does not conflict with existing mandatory accounting standards
 and other authoritative pronouncements, Company law and other
 regulatory requirements.
 
 The Company follows hedge accounting in accordance with principles set
 out in AS 30. The Company records the gain or loss on effective hedges
 in the hedging reserve until the transactions are complete. On
 completion, the gain or loss is transferred to the Profit and Loss
 Account of that period.  To designate a forward contract or option as
 an effective hedge, management objectively evaluates and evidences with
 appropriate supporting documents at the inception of each contract
 whether the contract is effective in achieving offsetting cash flows
 attributable to the hedged risk. In the absence of a designation as
 effective hedge, a gain or loss is recognized in the Profit and Loss
 Account. (Refer Note 4)
 
 (x) employee stock option based compensation
 
 The excess of market price of underlying equity shares as of the date
 of the grant of options over the exercise price of the options given to
 employees under the employee stock option plan is recognised as
 deferred stock compensation cost and is amortised on graded vesting
 basis over the vesting period of the options.
 
 (xi) employee benefits
 
 Short-term employee benefits
 
 All employee benefits payable wholly within twelve months of rendering
 the service are classified as short-term employee benefits. Benefits
 such as salaries, wages, and bonus etc. are recognised in the Profit
 and Loss Account in the period in which the employee renders the
 related service.
 
 Long-term employee benefits
 
 Defined contribution plans
 
 The Company deposits the contributions for provident fund to the
 appropriate government authorities and these contributions are
 recognised in the Profit and Loss Account in the financial year to
 which they relate.
 
 Defined benefit plans
 
 Gratuity
 
 The Companys gratuity plan is a defined benefit plan. The present
 value of gratuity obligation under such defined benefit plan is
 determined based on an actuarial valuation carried out by an
 independent actuary using the Projected Unit Credit Method, which
 recognises each period of service as giving rise to additional unit of
 employee benefit entitlement and measures each unit separately to build
 up the final obligation.  The obligation is measured at the present
 value of the estimated future cash flows. The discount rate used for
 determining the present value of the obligation under defined benefit
 plans, is based on the market yields on Government securities as at the
 valuation date having maturity periods approximating to the terms of
 related obligations. Actuarial gains and losses are recognised
 immediately in the Profit and Loss Account.
 
 Other employee benefits
 
 Benefits under the Companys leave encashment scheme constitute other
 employee benefits. The liability in respect of leave encashment is
 provided on the basis of an actuarial valuation done by an independent
 actuary at the year end.  Actuarial gains and losses are recognized
 immediately in the Profit and Loss Account.
 
 (xii) Operating leases
 
 Lease payments under operating lease are recognised as an expense in
 the profit and loss account on a straight-line basis over the lease
 term.
 
 (xiii) earnings per share
 
 Basic earning per share is computed using the weighted average number
 of equity shares outstanding during the year.  Diluted earning per
 share is computed using the weighted average number of equity and
 dilutive equity equivalent shares outstanding during the year-end,
 except where the results would be anti-dilutive.
 
 (xiv) Taxation
 
 Income taxes are computed using the tax effect accounting method, where
 taxes are accrued in the same period the related revenue and expenses
 arise. A provision is made for income tax annually based on the tax
 liability computed after considering tax allowances and exemptions.
 Provisions are recorded when it is estimated that a liability due to
 disallowance or other matters is probable. Minimum Alternate Tax
 (MAT) paid in accordance to 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 recognised 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.
 
 The differences that result between the profit considered for income
 taxes and the profit as per the financial statements are identified and
 thereafter a deferred tax asset or deferred tax liability is recorded
 for timing differences, namely the differences that originate in one
 accounting period and reverse in another, based on the tax effect of
 the aggregate amount being considered. The tax effect is calculated on
 the accumulated timing differences at the end of an accounting period
 based on prevailing enacted or substantially enacted regulations. Where
 there are unabsorbed depreciation or carry forward losses, deferred tax
 assets are recognised only to the extent there is virtual certainty of
 realisation of such assets. In other situations, deferred tax assets
 are recognised only to the extent there is reasonable certainty of
 realisation in future. Such assets are reviewed at each Balance Sheet
 date and written down or written up to reflect the amount that is
 reasonably/virtually certain (as the case may be) to be realized.
 Deferred tax assets or liabilities arising due to timing differences,
 originating during the tax holiday period and reversing after the tax
 holiday period are recognised in the period in which the timing
 difference originate.
 
 (xv) Impairment
 
 Management periodically assesses using external and internal sources
 whether there is an indication that an asset may be impaired.
 Impairment occurs where the carrying value exceeds the present value of
 future cash flows expected to arise from the continuing use of the
 asset and its eventual disposal. The impairment loss to be expensed is
 determined as the excess of the carrying amount over the higher of the
 assets net sales price or present value as determined above.  An
 impairment loss is reversed only to the extent that the assets carrying
 amount does not exceed the carrying amount that would have been
 determined net of depreciation or amortization, if no impairment loss
 had been recognized.
 
 (xvi) Contingencies
 
 The Company recognises a provision when there is a present obligation
 as a result of a past event and it is probable that it would involve an
 outflow of resources and a reliable estimate can be made of the amount
 of such obligation. Such provisions are not discounted to their present
 value and are determined based on the managements estimation of the
 obligation required to settle the obligation at the balance sheet date.
 These are reviewed at each balance sheet date and adjusted to reflect
 managements current estimates.
 
 A disclosure for a contingent liability is made where it is more likely
 than not that a present obligation or possible obligation may result in
 or involve an outflow of resources. When no present or possible
 obligation exists and the possibility of an outflow of resources is
 remote, no disclosure is made.
 
 As at 31 March 2011, the Company has recorded marked to market gain of
 Rs.14,565,858 (Rs.11,064,760) relating to forward contracts that are
 designated as effective cash flow hedges with a corresponding credit to
 hedging reserves. Further as at 31 March 2011, the Company has recorded
 marked to market loss of Rs. Nil (Rs.862,227) relating to foreign
 currency option which do not qualify for hedging in the profit and loss
 account.