1) Basis of Accounting
 
 The financial statements are prepared under the historical cost
 convention, on the accrual basis of accounting to comply in all
 material aspects with the applicable accounting principles in India,
 the applicable Accounting Standards notified under section 211(3C) of
 the Companies Act, 1956 and the relevant provisions of the Companies
 Act, 1956.
 
 2) Revenue Recognition
 
 (I) Revenue from fixed price service contracts is recognised in
 proportion to the degree of completion of service by reference to and
 based on milestones/acts performed as specified in the contracts and in
 case of time and material service contracts, it is recognised on the
 basis of hours completed and material used.
 
 (ii) Revenue from the sale of user licenses for software applications
 is recognized on transfer of the title in the user license.
 
 (iii) Subscription revenue from data base products is recognized
 proportionately over the period of subscription.
 
 (iv) Revenue from annual maintenance contracts is recognised
 proportionately over the period in which services are rendered.
 
 (v) Revenue from Software Consultancy and Support Services is
 recognized based on proportionate completion method as per specific
 agreements with the customers.
 
 Revenue in excess of billings on service contracts is recorded as
 unbilled receivables and is included in trade accounts receivable.
 Billings in excess of revenue that is recognised on service contracts
 are recorded as deferred revenue until the above revenue recognition
 criteria are met and are included in current liabilities.
 
 Interest on investments and deposits is recognized on a time proportion
 basis.
 
 3) Borrowing Costs
 
 Borrowing costs incurred for the acquisition of qualifying assets are
 recognised as part of cost of such assets when it is considered
 probable that they will result in future economic benefits to the
 company while other borrowing costs are expensed in the period in which
 they are incurred.
 
 4) Fixed Assets
 
 Fixed assets are stated at cost less accumulated depreciation. Cost
 includes duties, taxes and other expenses incidental to development /
 acquisition and installation. In respect of internally developed
 software, costs include development costs directly attributable to the
 design and development of software. Intangible assets are recorded at
 the consideration paid for acquisition/ development.
 
 Operating software is capitalised along with the fixed assets.
 Application software (other than those having an enduring benefit) is
 expensed off on acquisition.
 
 Intangible assets are amortized over a period of three to six years on
 a straight-line basis, commencing from the date the asset is available
 to the company for its use.
 
 Fixed assets individually costing upto Rs.5,000 are depreciated at the
 rate of 100% on purchase.
 
 7) Investments
 
 Long-term investments are valued at cost. Cost includes incidental
 charges incurred towards acquisition of such investments.  Provision
 for diminution, if any, in the value of investments is made to
 recognize a decline, other than temporary in nature. Current
 investments are valued at lower of cost and fair value.
 
 8) Employee Benefits
 
 Defined Contribution Plans:
 
 Contributions to the Employees Provident Fund are as per statute and
 are recognized as expense during the period in which the employees
 perform the services.
 
 Defined Benefit Plans
 
 Liability towards gratuity is determined on actuarial valuation using
 Projected Unit Credit Method at the balance sheet date. Actuarial gains
 and losses are recognized immediately in the Profit and Loss Account.
 
 Other Long Term Employee Benefits:
 
 Liability towards leave benefits is recognized at the present value
 based on actuarial valuation at each Balance Sheet date.
 
 Short Term:
 
 Liability of earned leave, compensated absences, performance incentives
 etc. are recognized during the period when the employee renders the
 services.
 
 9) Accounting for Leases
 
 Assets acquired under leases where the Company has substantially all
 the risks and rewards of ownership are classified as finance lease.
 Such leases are capitalised at the inception of the lease at 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 period.
 
 Assets acquired under leases where a significant portion of the risk
 and rewards of ownership are retained by the lessor are classified as
 operating leases. Lease rentals are charged to the Profit and Loss
 Account on accrual basis.
 
 10) Income Tax
 
 Current tax is determined on the basis of the Income Tax Act, 1961.
 
 Fringe Benefit Tax is determined at current applicable rates on
 expenses falling within the ambit of ‘Fringe Benefit’ as defined under
 the Income Tax Act, 1961.
 
 Deferred tax is recognised on timing differences between the accounting
 income and the taxable income for the year and quantified using the tax
 rates and laws enacted or substantively enacted as on the Balance Sheet
 date.
 
 Deferred tax assets are recognised and carried forward to the extent
 that there is a reasonable certainty that sufficient future taxable
 income will be available against which such deferred tax asset can be
 realised, except for unabsorbed depreciation and carry forward of
 losses under the tax laws where deferred tax assets are recognised only
 to the extent that there is virtual certainty, supported by convincing
 evidence that sufficient future taxable income will be available
 against which such deferred tax assets can be realised.
 
 11) Stock based compensation
 
 The Company measures the compensation cost relating to employee stock
 options using the intrinsic value method. 
 
 The compensation cost is amortised over the vesting period of the
 option.
 
 12) Earnings per Share
 
 Earning (basic and diluted) per equity share is arrived at based on Net
 Profit after taxation to the weighted average number of equity shares
 outstanding during the year.
 
 13) Provisions and contingencies
 
 A Provision is 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 determined based on management estimate required to
 settle the obligation at the balance sheet date.
 
 Provisions are reviewed regularly and are adjusted where necessary to
 reflect the current best estimates of the obligation.  When the Company
 expects a provision to be reimbursed, the reimbursement is recognised
 as a separate asset, only when such reimbursement is virtually certain.
 
 Liabilities which are material and whose future outcome cannot be
 ascertained with reasonable certainty is treated as contingent and to
 the extent not provided for are disclosed by way of notes on the
 accounts.
 
 14) 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, the Company estimates the recoverable amount. If the carrying
 amount of the asset exceeds its recoverable amount, an impairment loss
 is recognized in the Profit and Loss Account to the extent the carrying
 amount exceeds the recoverable amount.