a. Basis of presentation
 
 The financial statements are prepared under the historical cost
 convention, on the accrual basis of accounting, in conformity with
 accounting principles generally accepted in India and complying in all
 material respects with the Accounting Standards notified by Companies
 (Accounting Standards) Rules, 2006 (as amended) and the relevant
 provisions of the Companies Act, 1956 (the ‘Act''). The accounting
 policies have been consistently applied by the Company and are
 consistent with those used in the previous years'' except for the
 changes in accounting policies described in note (c) below. The
 financial statements are presented in the general format specified in
 Schedule VI to the Act.
 
 The significant accounting policies adopted by the Company, in respect
 of the financial statements are set out as below:
 
 b. Use of estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the results of operations during the reporting
 year end. Although these estimates are based upon management''s best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 c. Change in Accounting Policy of revenue recognition for fixed price
 contracts
 
 In the current year, the Company has changed its policy of revenue
 recognition for fixed price contracts related to customisation
 projects. The revenue has been recognised using proportionate
 completion method till contract reaches 90% completion. Balance is
 recognised at the time of receipt of customer acceptance. Hitherto,
 such revenue was restricted to the lower of proportionate completed
 efforts and acceptance received from the customer for the milestone
 achieved.
 
 As a result of this change in policy, revenue and net profit for the
 current year of the Company and its Products segment is higher by Rs.
 405,331.
 
 d. Fixed assets, depreciation and amortisation
 
 Fixed assets including assets under finance lease arrangements are
 stated at cost less accumulated depreciation. The Company capitalises
 all direct costs relating to the acquisition and installation of fixed
 assets. Advances paid towards the acquisition of fixed assets
 outstanding at each balance sheet date and the cost of fixed assets not
 ready to use before such date are disclosed under ‘Capital
 workRs.inRs.progress and advances''. Customer contracts and product IPRs
 acquired as part of business acquisitions are capitalised based on a
 fair value. The Company records the difference between considerations
 paid to acquire these contracts and the fair value of assets and
 liabilities acquired as goodwill.
 
 The Company purchases certain specificRs.use application software, which
 is in ready to use condition, for internal use. It is estimated that
 such software has a relatively short useful life, usually less than one
 year. The Company, therefore, charges to income the cost of acquiring
 such software.
 
 The carrying amounts of assets are reviewed at each balance sheet date
 if there is any indication of impairment based on internal/external
 factors. An impairment loss is recognised wherever the carrying amount
 of an asset exceeds its recoverable amount. The recoverable amount is
 the greater of the assets net selling price and value in use. In
 assessing value in use, the estimated future cash flows are discounted
 to their present value using a preRs.tax discount rate that reflects
 current market assessments of the time value of money and risks
 specific to assets. After impairment, depreciation is provided on the
 revised carrying amount of the asset over its remaining useful life.
 
 e. Investments
 
 Investments that are readily realisable and intended to be held for not
 more than a year are classified as current investments. All other
 investments are classified as longRs.term investments. Trade investments
 refer to the investments made with the aim of enhancing the Company''s
 business interests in providing information technology solutions to the
 financial services industry worldwide.
 
 Long term investments are stated at cost less provision for diminution
 on account of other than temporary decline in the value of the
 investment.
 
 Current investments are stated at lower of cost and fair value
 determined on an individual investment basis.
 
 f. Foreign currency transactions
 
 Foreign currency transactions during the year are recorded at the
 exchange rates prevailing on the date of the transaction. Foreign
 currency denominated monetary items are translated into Indian Rupees
 at the closing rates of exchange prevailing at the date of the balance
 sheet. NonRs.monetary items, which are carried in terms of historical
 cost denominated in a foreign currency, are reported using the exchange
 rate at the date of the transaction. Exchange differences arising on
 the settlement of monetary items or on reporting Company''s monetary
 items at rates different from those at which they were initially
 recorded or reported in previous financial statements are recognised as
 income or expenses in the year in which they arise.
 
 g. Revenue recognition Revenue is recognised as follows:
 
 Product licenses and related revenue
 
 – License fees are recognised, on delivery and subsequent milestone
 schedule as per the terms of the contract with the end user.
 
 – Implementation and customisation services are recognised as services
 are provided, when arrangements are on a time and material basis.
 Revenue for fixed price contracts is recognised using the proportionate
 completion method till contracts reach 90% completion. Balance revenue
 is recognised at the time of receipt of customer acceptance.
 
 Proportionate completion is measured based upon the efforts incurred to
 date in relation to the total estimated efforts to complete the
 contract. The Company monitors estimates of total contract revenue and
 cost on a routine basis throughout the delivery period.
 
 The cumulative impact of any change in estimates of the contract
 revenue or costs is reflected in the period in which the changes become
 known. In the event that a loss is anticipated on a particular
 contract, provision is made for the estimated loss.
 
 – Product maintenance revenue is recognised, over the period of the
 maintenance contract on a straight line basis.
 
 IT solutions and consulting services
 
 – Revenue from IT solutions and consulting services are recognised as
 services are provided, when arrangements are on a time and material
 basis.
 
 – Revenue from fixed price contracts is recognised using the
 proportionate completion method till contract reach 90% completion.
 Balance revenue is recognised at the time of receipt of customer
 acceptance. Proportionate completion is measured based upon the efforts
 incurred to date in relation to the total estimated efforts to complete
 the contract. The Company monitors estimates of total contract revenue
 and cost on a routine basis throughout the delivery period. The
 cumulative impact of any change in estimates of the contract revenue or
 costs is reflected in the period in which the changes become known. In
 the event that a loss is anticipated on a particular contract,
 provision is made for the estimated loss.
 
 Cost and revenue in excess of billings is classified as unbilled
 revenue while billing in excess of revenue is classified as deferred
 revenue.
 
 Reimbursable expenses for projects are invoiced separately to customers
 and although reflected as sundry debtors to the extent outstanding as
 at year end, are not included as revenue or expense.
 
 Interest income
 
 Interest income is recognised on a time proportion basis taking into
 account the amount outstanding and the rate applicable.
 
 h. Research and development expenses for software products
 
 Research and development costs are expensed as incurred. Software
 product development costs are expensed as incurred until technological
 feasibility is established. Software product development costs incurred
 subsequent to the achievement of technological feasibility are not
 material and are expensed as incurred.
 
 i. Retirement and other employee benefits
 
 The Company''s employee benefits primarily cover provident fund,
 superannuation, gratuity and compensated absences.
 
 Provident fund and superannuation fund are defined contribution schemes
 and the Company has no further obligation beyond the contributions made
 to the fund. Contributions are charged to profit and loss account in
 the year in which they accrue.
 
 Gratuity liability is a defined benefit obligation and is recorded
 based on actuarial valuation on projected unit credit method made at
 the end of the year. The gratuity liability and net periodic gratuity
 cost is actuarially determined after considering discount rates,
 expected long term return on plan assets and increase in compensation
 levels. All actuarial gain/loss are immediately recorded to the profit
 and loss account and are not deferred. The Company makes contributions
 to a fund administered and managed by the Life Insurance Corporation of
 India (LIC) to fund the gratuity liability. Under this scheme, the
 obligation to pay gratuity remains with the Company, although LIC
 administers the scheme.
 
 Short term compensated absences are provided for based on estimates.
 Long term compensated absences are provided for based on actuarial
 valuation. The actuarial valuation is done as per projected unit credit
 method. All actuarial gains/losses are immediately recognised to the
 profit and loss account and are not deferred.
 
 j. Leases
 
 i. Where the Company is the lessee
 
 Lease of assets under which substantially all the risks and benefits
 incidental to ownership are transferred to the Company are classified
 as finance leases. These assets are capitalised at the lower of the
 fair value and present value of the minimum lease payments at the
 inception of the lease term and disclosed as leased assets. Lease
 payments are apportioned between the finance charges and reduction of
 the lease liability based on the implicit rate of return. Finance
 charges are charged directly against income. Lease management fees,
 legal charges and other initial direct costs are capitalised.
 
 Leases of assets under which all the risks and rewards of ownership are
 effectively retained by the lessor are classified as operating leases.
 Lease payments under operating leases are recognised as an expense in
 the profit and loss account on a straightRs.line basis over the lease
 term.
 
 ii. Where the Company is the lessor
 
 Assets given under a finance lease are recognised as a receivable at an
 amount equal to the net investment in the lease. Lease rentals are
 apportioned between principal and interest on the IRR method. The
 principal amount received reduces the net investment in the lease and
 interest is recognised as revenue.
 
 k. Income-tax
 
 Tax expense comprises of current and deferred tax. Current income tax
 and fringe benefit tax is measured at the amount expected to be paid to
 the tax authorities in accordance with the Indian Income Tax Act, 1961
 (‘Indian Income Tax Act''). Deferred income taxes
 
 are recognised for the future tax consequences attributable to timing
 differences between the financial statement determination of income and
 their recognition for tax purposes. Deferred tax is measured based on
 the tax rates and the tax laws enacted or substantively enacted at the
 balance sheet date. Deferred tax assets are recognised and carried
 forward only to the extent that there is a reasonable certainty that
 sufficient future taxable income will be available against which such
 deferred tax assets can be realised. Unrecognised deferred tax assets
 of earlier years are reRs.assessed and recognised to the extent that it
 has become reasonably certain that future taxable income will be
 available against which deferred tax assets can be realised. The
 carrying value of assets is reviewed at each balance sheet date.
 Deferred tax asset is recognised only on those timing differences,
 which reverses in post tax free period, as Company enjoys exemption
 under Section 10A of Indian Income Tax Act up to financial year ended
 March 31, 2011. Minimum Alternative 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 specified period. In
 the year in which the MAT credit becomes eligible to be recognised as
 an asset in accordance with the recommendations contained in guidance
 note issued by the Institute of Chartered Accountants of India
 (‘ICAI''), the said asset is created by way of a credit to the profit
 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 Company will pay normal
 Income Tax during the specified period.
 
 l. Earnings per share
 
 The earnings considered in ascertaining the Company''s earnings per
 share comprise the net profit after tax. The number of shares used in
 computing basic earnings per share is the weighted average number of
 shares outstanding during the year. The number of shares used in
 computing diluted earnings per share comprises the weighted average
 number of shares considered for deriving basic earnings per share, and
 also the weighted average number of shares, if any which would have
 been issued on the conversion of all dilutive potential equity shares.
 The weighted average number of shares and potentially dilutive equity
 shares are adjusted for the bonus shares and subRs.division of shares.
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the year attributable to equity shareholders and the
 weighted average number of shares outstanding during the year are
 adjusted for the effects of all dilutive potential equity shares.
 
 m. ShareRs.based compensation/payments
 
 Measurement and disclosure of the employee shareRs.based payment plans is
 done in accordance with Securities Exchange Board of India (‘SEBI'')
 (Employee Stock Option Scheme and Employee Stock Purchase Scheme)
 Guidelines, 1999 and the Guidance Note on Accounting for Employee
 ShareRs.based Payments, issued by the ICAI. The Company uses the
 intrinsic value method of accounting for its employee share based
 compensation plan and other share based arrangements. Under this method
 compensation expense is recorded over the vesting period of the option
 on a straight line basis, if the fair market value of the underlying
 stock exceeds the exercise price at the grant date.
 
 n. Provision and contingencies
 
 A provision is recognised when an enterprise has a present obligation
 as a result of past event 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
 its present value and are determined based on management 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
 management estimates.
 
 o. Cash and cash equivalents
 
 Cash and cash equivalents for the purpose of cash flow statement
 comprise cash at bank and in hand and shortRs.term investments with an
 original maturity of three months or less.