1 Impairment of assets
 
 The management periodically assesses using external and internal
 sources, whether there is an indication that an asset may be impaired.
 An impairment loss is recognized wherever the carrying value of an
 asset exceeds its recoverable amount.  The recoverable amount is higher
 than the asset''s net selling price and value in use, which means the
 present value of future cash flows expected to arise from the
 continuing use of the asset and its eventual disposal. An impairment
 loss for an asset is reversed if and only if, the reversal can be
 related objectively to an event occurring after the impairment loss was
 recognized.  The carrying amount of an asset is increased to its
 revised recoverable amount, provided that this amount does not exceed
 the carrying amount that would have been determined (net of any
 accumulated amortization or depreciation) had no impairment loss been
 recognized for the asset in prior years.
 
 2 Goodwill
 
 The excess cost of acquisition over the carrying value of the net
 assets on the date of merger is recognized in the financial statements
 as goodwill. The Company evaluates carrying value of its goodwill
 whenever events or change in circumstance indicate that its carrying
 value may be impaired for diminution other than temporary. The value of
 the Goodwill in the books as at 31 March 2011 is Rs 71.63 crores. ( PY
 - Rs. 71.63 crores) However, the Company presently reassessed that
 there are no circumstances or change in circumstances to indicate any
 diminution in the carrying value of goodwill.
 
 3 Investments
 
 Investments are either classified as either current or long-term based
 on management intention at the time of purchase. Current investments
 are carried at the lower of cost or market value. Long- term
 investments are stated at cost less provisions recorded to recognize
 any decline, other than temporary, in the carrying value of each
 investment. Cost of overseas investments comprises the Indian rupee
 value of the consideration paid for the investment translated at the
 exchange rate prevalent at the date of investment.
 
 4 Revenue Recognition
 
 4.1 Revenue from software development services comprises revenue from
 time and material and fixed-price contracts.
 
 4.2 Revenue from time and material contracts are recognized as related
 services are performed
 
 4.3 Revenue from fixed-price contracts are recognized in accordance
 with the percentage of completion method / as per the terms of the
 contract.
 
 4.4 Maintenance revenue is considered on acceptance of the contract and
 is accrued over the period of the contract. Other income is recognized
 on accrual basis.
 
 4.5 Revenue from customer training, support and other services is
 recognized as the related services are performed.
 
 4.6 Cost and related earnings in excess of billings are classified as
 ''Unbilled revenues'' under loans and advances while the billing in
 excess of cost and related earnings is classified as ''Unearned revenue''
 under current liabilities.
 
 4.7 Provision for estimated losses, if any, on incomplete contracts are
 recorded in the period in which such losses become probable based on
 the current contract estimates.
 
 5 Foreign Currency transactions
 
 The Company is exposed to currency fluctuations on foreign currency
 transactions. Foreign currency transactions are accounted in the books
 of accounts at the average rate for the month.
 
 Transaction:
 
 The difference between the rate at which foreign currency transactions
 are accounted and the rate at which they are realized is recognized in
 the profit and loss account.
 
 Translation:
 
 Monetary foreign currency assets and liabilities at period end are
 restated at the closing rate. The difference arising from the
 restatement is recognized in the profit and loss account.
 
 The Company did not elect to exercise an irrevocable option to amortize
 exchange rate fluctuation on long term foreign currency monetary asset/
 liability over the life of the asset/ liability or by March 31, 2011,
 whichever is earlier, subsequent to the amendment to AS-11 by the
 Ministry of Corporate affairs.
 
 Non integral Operations
 
 The Standalone Financial Statements are prepared in Indian Rupees,
 which is the functional currency for the Company. The translation of
 the functional currencies into the reporting currency is considered
 under the category Non integral Operation as per Accounting Standard
 11 - The Effects of changes in Foreign exchange rates. While the
 revenues and expenses of the foreign branches have been converted at
 average conversion rate for the year, Assets and liabilities have been
 converted at closing exchange rate. The difference arising from the
 restatement is recognized in The Exchange reinstatement reserve under
 reserves and surplus.
 
 6 Employee Benefits
 
 a.  Short term employee benefit obligations are estimated and provided
 for.
 
 b.  Post employment benefits and other long term employee benefits (i)
 Defined Contribution plans
 
 Company''s contribution to provident fund, superannuation fund, employee
 state insurance and other funds are determined under the relevant
 schemes and / or statute and charged to revenue.  (ii) Defined benefit
 plans and compensated absences Company''s liability towards gratuity,
 other retirement benefits and compensated absences are not actuarially
 determined. In accordance with the Payment of Gratuity Act, 1972 the
 company provides for a lump sum payment to eligible employees, at
 retirement or termination of employment based on the last drawn salary
 and year of employment with the company. The gratuity fund is managed
 by SBI Gratuity Fund. The gratuity obligation is provided for based on
 estimates from SBI gratuity fund.  The company records an obligation
 for compensated absences in the period in which the employee renders
 services that increase this entitlement. The company measures the
 expected cost of compensated absence as the additional amount that the
 company expects to pay as a result of the unused entitlement that has
 accumulated at the balance sheet date.
 
 7  Provisions, Contingent Liabilities and Contingent Assets
 
 Provisions are recognized only when there is a present obligation
 as a result of past events and when a reasonable estimate of the
 amount of obligation can be made. Contingent liability is disclosed
 for (i) Possible obligations which will be confirmed 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 outflow of resources will be required to settle the obligation or
 Significant Accounting Policies and Notes on Accounts (contd.) a
 reliable estimate of the amount of the obligation cannot be made.
 
 Contingent assets are neither recognized nor disclosed in the financial
 statements.
 
 8 Cash Flow Statement
 
 Cash flows are reported using the indirect method, whereby net profits
 before tax is adjusted for the effects of transactions of a non-cash
 nature and any deferrals or accruals of past or future cash receipts or
 payments. The cash flows from regular revenue generating, investing and
 financing activities of the Company are segregated.
 
 9 Earnings per share
 
 Basic
 
 The number of equity shares used in computing basic earnings per share
 is the weighted average number of shares outstanding during the period
 excluding equity shares held by controlled trust.
 
 Diluted
 
 The number of equity shares used in computing diluted earnings per
 share comprises the weighted average equity shares considered for
 deriving basic earnings per share, and also the weighted average number
 of equity 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 period, unless issued at a
 later date. The number of equity shares and potentially dilutive equity
 shares are adjusted for any stock splits and bonus shares issued if
 any.
 
 10 Accounting for Taxes
 
 Deferred tax assets and liabilities are recognized for the future tax
 consequences attributable to timing differences that result between the
 profit offered for income taxes and the profit as per the financial
 statements of each entity in the Company.  Deferred taxes are
 recognized in respect of timing differences which originate during the
 tax holiday period but reverse after the tax holiday period. For this
 purpose, reversal of timing difference is determined using first in
 first out method.  Deferred tax assets and liabilities are measured
 using the tax rates and tax laws that have been enacted or
 substantively enacted by the balance sheet date. The effect on deferred
 tax assets and liabilities of a change in tax rates is recognized in
 the period that includes the enactment/substantive enactment date.
 Deferred tax assets on timing differences are recognized only if there
 is a reasonable certainty that sufficient future taxable income will be
 available against which such deferred tax assets can be realized.
 However, deferred tax assets on the timing differences when unabsorbed
 depreciation and losses carried forward exist, are recognized only to
 the extent that there is virtual certainty that sufficient future
 taxable income will be available against which such deferred tax assets
 can be realized.  Deferred tax assets are reassessed for the
 appropriateness of their respective carrying amounts at each balance
 sheet date.  The Company offsets, on a year on year basis, the current
 tax assets and liabilities, where it has a legally enforceable right
 and where it intends to settle such assets and liabilities on a net
 basis.
 
 11 Research and development cost
 
 Research costs are expenses as incurred. Software product development
 costs are expensed as incurred unless technical and commercial
 feasibility of the project is demonstrated, future economic benefits
 are probable, the company has an intention and ability to complete and
 use or sell the software and the cost can be measured reliably.
 
 12 Financial Instruments
 
 The company does not have any risk management policy with respect to
 risk of foreign exchange fluctuations and is not a party to the
 contractual provisions of the instrument.