(i) ACCOUNTING CONVENTION
 
 The financial statements are prepared under the historical cost
 convention, as modified to include the revaluation of certain fixed
 assets, and have been prepared in accordance with the applicable
 Accounting Standards and relevant presentational requirements of the
 Companies Act, 1956.
 
 (ii) USE OF ESTIMATES
 
 The preparation of financial statements requires the management of the
 Company to make estimates and assumptions that affect the reported
 balance of assets and liabilities, revenues and expenses and
 disclosures relating to contingent liabilities. The management believes
 that the estimates used in preparation of the financial statements are
 prudent and reasonable. Future results could differ from these
 estimates. Any revision to accounting estimates is recognised
 prospectively in the current and future periods.
 
 (iii) FIXED ASSETS
 
 Fixed assets are stated at cost of acquisition or construction less
 accumulated depreciation except for certain fixed assets which are
 revalued and are therefore, stated at their revalued book values. Cost
 of acquisition or construction is inclusive of freight, duties, taxes,
 incidental expenses and interest on loans attributable to the
 acquisition of qualifying assets, up to the date of commissioning of
 the assets.
 
 The basis for revaluation is current cost of depreciated assets at the
 time of revaluation. If the revaluation shows an increase in the value
 of a category of assets, the same is added to the historical value net
 of any decline in value of any asset of that category; any such
 decrease is expensed. The decline in value of any individual asset in a
 category is charged to revenue over the remaining useful life of that
 asset and corresponding adjustment made on the amount withdrawn from
 the revaluation reserve.
 
 Consideration is given at each balance sheet date to determine whether
 there is any indication of impairment of the carrying amount of the
 Companys fixed assets. If any indication exists, an assets
 recoverable amount is estimated. An impairment loss is recognized
 whenever the carrying amount of an asset exceeds its recoverable
 amount. The recoverable amount is the greater of net selling price and
 value in use. In assessing value in use, the estimated future cash
 flows are discounted to their present value based on an appropriate
 discount factor.
 
 (iv) DEPRECIATION
 
 a.  Depreciation on fixed assets is provided on straight line method at
 the rates specified in Schedule XIV of the Companies Act, 1956 or at
 rates arrived at on the basis of the balance useful lives of the assets
 based on technical evaluation / revaluation of the related assets,
 whichever is higher, except in case of the following assets where
 depreciation is provided at the rates indicated against each assets: -
 
 Vehicles                      -    21%
 
 Data Processing Equipments    - 31.67%
 
 Mobile Phones                 -    95%
 
 b.  Depreciation is calculated on a pro rata basis except that, assets
 costing upto Rs. 5,000 each are fully depreciated in the year of
 purchase.
 
 c.  On assets sold, discarded, etc. during the year, depreciation is
 provided upto the date of sale / discard.
 
 d.  In respect of revalued assets, a transfer is made from the
 revaluation reserve to the profit and loss account for the sum of the
 differences as below: -
 
 - the difference between the amounts of depreciation on revalued value
 at rates based on useful life prescribed by valuers and on the
 historical cost at rates prescribed in Schedule XIV, if the former is
 higher.
 
 - where assets are discarded / disposed off, the difference between the
 written down value as per the revalued value and historical cost.
 
 e.  No write-off is made in respect of leasehold land as the lease is a
 perpetual lease.
 
 f.  Depreciation (amortization) on intangibles is provided on straight
 line method as follows:
 
 - Trademark and technical knowhow over a period of ten years
 
 - Software over a period of three years
 
 - Goodwill over a period of ten years
 
 (v) FOREIGN CURRENCY TRANSACTIONS
 
 Transactions in foreign currencies are recorded on initial recognition
 at the exchange rate prevailing on the date of the transaction.
 
 All monetary items are re-stated at the exchange rate prevailing as at
 the date of the balance sheet and the loss or gain is taken to the
 profit and loss account as exchange fluctuation.
 
 The Company uses foreign exchange forward and option contracts to hedge
 its exposure to movements in foreign exchange rates relating to certain
 firm commitments and highly probable forecast transactions. Effective
 April 1, 2007, the Company designates such contracts in a cash flow
 hedge relationship by applying the principles set out in Accounting
 Standard (AS) – 30 - Financial Instruments: Recognition and
 Measurement.
 
 Forward and option contracts are fair valued at each reporting date.
 The resultant gain or loss from these contracts that are designated and
 effective as hedges of future cash flows are recognised directly in
 Cash Flow Hedge Reserve under Reserves and Surplus, net of applicable
 deferred income taxes and the ineffective portion is recognised
 immediately in profit and loss account.
 
 Amount accumulated in Cash Flow Hedge Reserve are reclassified to
 profit and loss account in the same periods during which the forecasted
 transaction affects the profit and loss.
 
 Hedge Accounting is discontinued when the hedging instrument expires,
 or is sold or terminated or exercised or no longer qualifies for hedge
 accounting. Any cumulative gain or loss on the hedging instrument
 recognised in Cash Flow Hedge Reserve is retained there until the
 forecasted transaction occurs.
 
 If the forecasted transaction is no longer expected to occur, the net
 cumulative gain or loss is immediately transferred from the Cash Flow
 Hedge Reserve to the profit and loss account.
 
 Contracts that are not designated as hedges of future cash flows are
 fair valued at each reporting date and the resultant gain or loss is
 recognised in the profit and loss account.
 
 (vi) RESEARCH AND DEVELOPMENT
 
 Expenditure on research and development of products is included under
 the natural heads of expenditure in the year in which it is incurred
 except which relate to development activities whereby research findings
 are applied to a plan or design for the production of new or
 substantially improved products and processes. Such costs are
 capitalized if they can be reliably measured, the product or process is
 technically and commercially feasible and the Company has sufficient
 resources to complete the development and to use or sell the asset.
 
 Capital expenditure on research and development includes the cost of
 materials, direct labour and an appropriate proportion of overheads
 that are directly attributable to preparing the asset for its intended
 use and is treated in the same manner as expenditure on other fixed
 assets and depreciated as per Company policy.
 
 (vii) INVENTORIES
 
 Stores and spares are valued at cost or under. Stock in trade is valued
 at cost or net realizable value, whichever is lower. The bases of
 determining the cost for various categories of inventory are as
 follows:
 
 Stores, spares and raw materials  - Weighted average rate
 
 Stock in trade
 
 Process stocks and finished goods - Direct cost plus appropriate share
                                     of overheads and excise
                                     duty, wherever applicable
 
 By products                       - At estimated realizable value
 
 (viii) INVESTMENTS
 
 Long term investments are valued at cost unless there is a decline in
 value other than temporary. Current investments are stated at lower of
 cost or fair value.
 
 (ix) EMPLOYEE BENEFITS
 
 Companys contributions paid / payable during the year to Provident
 Fund, Superannuation Fund and Employees State Insurance Corporation
 are recognized in the profit and loss account.
 
 Provision for gratuity, compensated absences and long term retention
 pay are determined on an actuarial basis at the end of the year and
 charged to revenue each year.
 
 (x) PROVISIONS AND CONTINGENT LIABILITIES
 
 The Company recognizes a provision when there is a present obligation
 as a result of past events and it is more likely than not that an
 outflow of resources would be required to settle the obligation and a
 reliable estimate can be made. A disclosure for a contingent liability
 is made when there is a possible obligation or a present obligation
 that may, but probably will not, require an outflow of resources. Where
 there is a possible obligation or a present obligation that the
 likelihood of outflow of resources is remote, no provision or
 disclosure is made.
 
 (xi) REVENUE RECOGNITION
 
 Sale of goods is recognized at the point of dispatch of goods to
 customers. Gross sales are inclusive of excise duty and net of value
 added tax / sales tax.
 
 Sale of Certified Emission Reductions (CERs) is recognized as income
 on the delivery of the CERs to the customers account as evidenced by
 the receipt of confirmation of execution of delivery instructions.
 
 (xii) RESERVES
 
 a.  Revaluation reserve represents the difference between the revalued
 amount of the assets and the written down value of the assets on the
 date of revaluation net of withdrawals therefrom.
 
 b.  Capital receipts are credited to capital reserve.
 
 c.  Cash flow hedge reserve represents the gain or loss arising out of
 adjusting the hedging instruments to mark to market net of applicable
 deferred income taxes.
 
 (xiii) TAXATION
 
 a.  The income tax liability is provided in accordance with the
 provisions of the Income tax Act, 1961.
 
 b.  Deferred tax is recognised, subject to the consideration of
 prudence, on timing differences, being the difference between taxable
 income and accounting income that originate in one period and are
 capable of reversal in one or more subsequent periods.