A) Basis of preparation
 
 The financial statements are prepared under the historical cost
 convention in accordance with Generally Accepted Accounting Principles
 (GAAP), and materially comply with the mandatory accounting standards
 notified under Section 211(3C) [(Companies (Accounting Standards)
 Rules, 2006, as amended] and other relevant provisions of the Companies
 Act, 1956. All income and expenditure having a material bearing on the
 financial statements are recognized on the accrual basis.
 
 B) Use of estimates
 
 The preparation of financial statements in conformity with GAAP
 requires management to make estimates and assumptions that affect the
 reported balances of assets and liabilities, disclosure related to
 contingent liabilities as 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 software development,
 provision for doubtful debts, and the useful life of fixed assets.
 Actual results could differ from these estimates.
 
 C) Revenue recognition
 
 Revenue from fixed-price contracts is recognized principally on the
 basis of completed milestones as specified in the contracts, on a
 percentage of completion basis. Where milestones are not representative
 of the percentage of completion method, estimates of work completed to
 the Balance Sheet date are used to recognize revenue on fixed-price
 contracts. Revenue from software developed on a time-and-materials
 basis is recognized as per the terms of specific contracts.
 
 D) Fixed Assets
 
 Fixed assets are stated at the cost of acquisition or construction,
 less accumulated depreciation. Direct costs are capitalized until the
 assets are ready to be put to use.
 
 E) Depreciation
 
 Depreciation on fixed assets is provided using the straight-line method
 at the rates specified in the Schedule XIV of the Companies Act, 1956.
 It is charged on a pro-rata basis for assets purchased/sold during the
 year. Individual assets costing Rs. 5,000/- or less are depreciated in
 full in the year of purchase.
 
 F) Impairment
 
 The Company assesses at each Balance Sheet date whether there is any
 indication that any asset may be impaired and if such indication
 exists, the carrying value of such asset is reduced to its recoverable
 amount and a provision is made for such impairment loss in the profit
 and loss account.
 
 G) Foreign Currency Transactions
 
 Foreign currency transactions during the period are recorded at the
 exchange rates prevailing on the date of the transaction. Foreign
 currency denominated assets and liabilities are translated into rupees
 at the rates of exchange prevailing at the date of the balance sheet.
 All exchange differences are dealt with in the statement of profit and
 loss, except for those relating to the acquisition of fixed assets,
 which are adjusted in the cost of the fixed assets.
 
 H) Borrowing Cost
 
 Borrowing cost attributable to the acquisition of fixed assets is
 included in the cost of asset. The balance borrowing cost is charged to
 revenue.
 
 I) Investments
 
 Long Term Investments are stated at cost. Other investments are stated
 at the lower of cost or market value.  Any decline, other than
 temporary in the value of long term investments (including investments
 in subsidiaries) is charged to the Profit & Loss Account.
 
 J) Income Tax
 
 Current Income tax is computed using the tax effect accounting method,
 where taxes are accrued in the same period the related revenue and
 expenses arise. Deferred tax asset or liability is recorded for the
 timing differences. The Deferred tax asset or liability is recognized
 using the tax rates that have been enacted or substantively enacted by
 the Balance Sheet date.
 
 K) Export Benefits
 
 The Company accounts for export benefit entitlements under the Duty
 Entitlement Pass Book Scheme of Government of India, on accrual basis.
 
 L) Contingent Liabilities
 
 Contingent Liabilities as defined in Accounting Standard-29 are
 disclosed by way of notes to accounts.
 
 M) Current / Non Current
 
 All assets and liabilities are presented as Current or Non Current as
 per Company''s normal operating cycle and other criteria set out in the
 Revised Schedule VI of the Companies Act, 1956. Based on the nature of
 products and the time of acquisition of assets and their realisation,
 the Company has ascertained its operating cycle as 12 months for the
 purpose of Current / Non Current classification of assets and
 liabilities.