1.  Basis of preparation
 
 The financial statements are prepared in accordance with Indian
 Generally Accepted Accounting Principles (GAAP) under the historical
 cost convention on the accrual basis of accounting and comply with the
 accounting standards applicable in India and the provisions of the
 Companies Act, 1956.
 
 2.  Use of estimates
 
 The preparation of financial statements requires the management of the
 Company to make estimates and assumptions that affect the reported
 balances of assets and liabilities and disclosures relating to the
 contingent liabilities as at the date of the financial statements and
 reported amounts of income and expenses during the year. Example of
 such estimates include provisions for doubtful debts, employee
 benefits, provision for income taxes, the useful life of fixed assets,
 etc..
 
 3.  Fixed assets and Intangible assets
 
 Fixed Assets are stated at cost, less accumulated depreciation. Costs
 include all expenses incurred to bring the assets to its present
 location and condition.
 
 Depreciation is provided on straight-line method on pro rata basis in
 accordance with the provisions of Schedule XIV to the Companies Act,
 1956, except that leasehold land and improvements to leasehold premises
 is depreciated over the lease period on straight-line basis.
 
 Software licenses are depreciated over a period of 6 years.
 
 Individual assets costing less than Rs. 5,000/- are depreciated in full
 in the year of its purchase.
 
 Capital advances represent outstanding advance paid to acquire fixed
 assets.
 
 4.  Impairment of assets
 
 At each Balance Sheet date, the Company reviews the carrying amounts of
 its fixed assets to determine whether there is any indication that
 those assets suffered an impairment loss. If any such indication
 exists, the recoverable amount of the asset is estimated in order to
 determine the extent of impairment loss.
 
 Recoverable amount is the higher of an assets net selling price and
 value in use. In assessing value in use, the estimated future cash
 flows expected from the continuing use of the asset and from its
 disposal are discounted to their present value using a pre-discount
 rate that reflects the current market assessment of time value of money
 and the risks specific to the asset.
 
 Reversal of impairment loss is recognised immediately as income in the
 Profit and Loss account.
 
 5.  Leases
 
 Where the Company, as a lessor, leases assets under finance lease such
 amounts are recognised as receivables at an amount equal to the net
 investment in the lease and the finance income is based on a constant
 rate of return on the outstanding net investment.
 
 Lease arrangements where the risks and rewards incident to ownership of
 an asset substantially vest with the lessor, are recognised as
 operating leases. Lease rents under operating leases are recognised in
 the Profit and Loss account on a straight- line basis.
 
 6.  Inventories
 
 Components and spares are valued at lower of cost and net realizable
 value. Cost is determined on the basis of specific identification
 method.
 
 Computer systems and software, components and spares intended for
 customer support are written off over the effective life of the systems
 maintained, as estimated by management.
 
 7.  Income
 
 Sales
 
 Income from sales of goods is recognised upon passage of risks and
 rewards of ownership to the goods, which generally coincide with the
 delivery.
 
 Services
 
 a) Income from services is recognised upon rendering of the services.
 Income from maintenance contracts relating to the year is recognised
 when the contracts are entered into on a time proportionate basis.
 
 b) Revenue from software development on fixed price, fixed time frame
 contracts is recognised as per the proportionate completion method. On
 time and materials contracts, revenue is recognised as the related
 services are rendered.
 
 c) In respect of orders procured, for which sales are effected directly
 to the customers by the vendors, the Company accounts only for the
 commission, installation and other charges to which it is entitled.
 
 8.  Employee Benefits
 
 a) Post-employment benefit plans
 
 Contributions to defined contribution retirement benefit schemes are
 recognised as an expense when employees have rendered services
 entitling them to contributions. For defined benefit schemes, the cost
 of providing benefits is determined using the Projected Unit Credit
 Method, with actuarial valuations being carried out at each Balance
 Sheet date. Actuarial gains and losses are recognised in full in the
 Profit and Loss account for the period in which they occur. Past
 service cost is recognised immediately to the extent that the benefits
 are already vested, and otherwise is amortised on a straight-line basis
 over the average period until the benefits become vested.
 
 The retirement benefit obligation recognised in the Balance Sheet
 represents the present value of the defined benefit obligation as
 adjusted for unrecognised past service cost, and as reduced by the fair
 value of scheme assets. Any asset resulting from this calculation is
 limited to the present value of available refunds and reductions in
 future contributions to the scheme.
 
 b) Short-term employee benefits
 
 The undiscounted amount of short-term employee benefits expected to be
 paid in exchange for the services rendered by employees is recognised
 during the period when the employee renders the service. These benefits
 include compensated absences such as paid annual leave, overseas social
 security contributions and performance incentives.
 
 c) Long-term employee benefits
 
 Compensated absences which are not expected to occur within twelve
 months after the end of the period in which the employee renders the
 related services are recognised as a liability at the present value of
 the defined benefit obligation at the Balance Sheet date.
 
 9.  Research and Development
 
 Research and Development expenditure is recognised in the profit and
 loss account when incurred. Assets acquired for research and
 development activity are capitalised and depreciated in the same manner
 as other fixed assets.
 
 Expenses incurred in developing intellectual property, if they meet the
 criteria of achieving technical feasibility, retention of control and
 have the potential to provide economic benefits, are capitalised and
 carried forward as intangible assets and amortised over their expected
 useful life. Otherwise, such expenses are charged off to the Profit &
 Loss Account in the year in which they are incurred
 
 10.  Foreign currency transactions
 
 a) Income and expenses in foreign currencies are converted at exchange
 rates prevailing on the date of the transaction.
 
 Exchange differences arising on restatement / settlement of foreign
 currency monetary liabilities having an initial term of 12 months or
 more that are incurred for acquisition of fixed assets are translated
 at year end exchange rates and the resulting gains / losses are
 adjusted against the cost of the fixed assets. Exchange differences
 arising on restatement of other foreign currency monetary assets and
 liabilities, having an initial term of 12 months or more, are
 accumulated in the Foreign Currency Monetary Item Translation
 Difference Account and amortised over the balance period of such long
 term asset/liability or up to March 31,2011 whichever is earlier.
 
 Other foreign currency liabilities and assets are restated at the rates
 ruling at the year-end. Exchange differences arising on restatement /
 settlement of foreign currency balances are adjusted in the Profit and
 Loss account.
 
 Premium or discount on forward exchange contracts are amortised and
 recognised in the Profit and Loss account over
 
 the period of the contract. Forward contracts and currency options
 outstanding at the Balance Sheet date, other than designated Cash Flow
 hedges, are stated at fair values and any gains or losses are
 recognised in the Profit and Loss account.
 
 b) In the case of non-integral operations, assets and liabilities are
 translated at the exchange rate prevailing on the Balance Sheet date.
 Revenue and expenses are translated at exchange rates prevailing on the
 date of transactions. Exchange differences arising out of these
 translations are included in Exchange Reserve under Reserves and
 Surplus.
 
 c) In the case of integral operations, assets and liabilities (other
 than non-monetary items), are translated at the exchange rate
 prevailing on the Balance Sheet date. Non-monetary items are carried at
 historical cost. Revenue and expenses are translated at exchange rates
 prevailing on the date of transactions. Exchange differences arising
 out of these translations are charged to the Profit and Loss account.
 
 11.  Taxation
 
 Current income tax expense comprises taxes on income from operations in
 India and in foreign jurisdictions. Income tax payable in India is
 determined in accordance with the provisions of the Income Tax Act,
 1961. Tax expense relating to foreign operations is determined in
 accordance with tax laws applicable in countries where such operations
 are domiciled.
 
 Minimum alternative tax (MAT) paid in accordance to the tax laws, which
 gives rise to future economic benefits in the form of adjustment of
 future income tax liability, is considered as an asset if there is
 convincing evidence that the Company will pay normal income tax after
 the tax holiday period. Accordingly, MAT is recognised as an asset in
 the Balance Sheet when it is probable that the future economic benefit
 associated with it will flow to the Company and the asset can be
 measured reliably.
 
 Deferred tax expense or benefit is recognised 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. 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.
 
 In the event of unabsorbed depreciation and carry forward of losses,
 deferred tax assets are recognised only to the extent that there is
 virtual certainty that sufficient taxable income will be available to
 realise such assets.
 
 In other situations, deferred tax assets are recognised only to the
 extent that there is reasonable certainty that sufficient future
 taxable income will be available to realise these assets.
 
 Advance taxes and provisions for current income taxes are presented in
 the Balance Sheet after offsetting advance taxes paid and income tax
 provisions arising in the same tax jurisdiction and the Company intends
 to settle the asset and liability on a net basis.
 
 The Company offsets deferred tax assets and deferred tax liabilities if
 it has a legally enforceable right and these relate to taxes on income
 levied by the same governing taxation laws.
 
 12.  Subsidies
 
 Subsidies not specifically related to fixed assets are credited to
 capital reserve.
 
 Other revenue subsidies are credited to Profit and Loss account or
 deducted from related expenses.
 
 13.  Investments
 
 Long-term investments are stated at cost, less provision for other than
 temporary diminution in value.
 
 14.  Other Provisions and Contingencies
 
 A provision is recognised when the Company has a present legal or
 constructive 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 reliable estimate can be made.
 
 Provisions (excluding retirement benefits) are not discounted to its
 present value and are determined based on best 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 best
 estimates. Contingent liabilities are not recognised in the financial
 statements, but are disclosed. A contingent asset is neither recognised
 nor disclosed in the financial statements.