(a) Basis for preparation of accounts:
 
 The accompanying financial statements have been prepared to comply in
 all material aspects with generally accepted accounting principles
 applicable in India, the Accounting Standards and the relevant
 provisions of the Companies Act, 1956.
 
 (b) Use of Estimates:
 
 The preparation of financial statements, in conformity with the
 generally accepted accounting principles, requires estimates and
 assumptions to be made that affect the reported amounts of assets and
 liabilities on the date of financial statements and the reported
 amounts of revenues and expenses during the reported period.
 Differences between the actual results and estimates are recognised in
 the period in which the results are known / materialised.
 
 (c) Fixed Assets including intangible assets:
 
 Fixed assets are stated at cost less accumulated depreciation. Costs
 comprise of purchase price and attributable costs, if any.
 
 (d) Leases:
 
 Assets taken on lease are accounted for as fixed assets in accordance
 with Accounting Standard 19 on Leases, (AS 19).
 
 (i) Finance lease
 
 Where the Company, as a lessor, leases assets under finance leases
 such amounts are recognized as receivables at an amount equal to the
 net investment in the lease and the finance income is based on
 constant rate of return on the outstanding net investment.
 
 Assets taken on finance lease are accounted for as fixed assets at
 fair value. Lease payments are apportioned between finance charge and
 reduction of outstanding liability.
 
 (ii) Operating lease
 
 Lease arrangements under which all risks and rewards of ownership are
 effectively retained by the lessor are classifi ed as operating lease.
 Lease rental under operating lease are recognised in Statement of Profi
 t and Loss on straight line basis.
 
 (e) Depreciation / amortization of fixed assets:
 
 (ii) Leasehold land is amortised over the period of lease.
 
 (iii) Leasehold improvements are amortised over the period of lease or
 expected period of occupancy whichever is less.
 
 (iv) Intellectual property rights are amortised over a period of seven
 years.
 
 (v) Assets costing upto Rs. 5,000 are fully depreciated in the year of
 purchase.
 
 (vi) The cost of software purchased for internal use is capitalized and
 depreciated in full in the month in which it is put to use.
 
 (f) Impairment of Assets:
 
 At the end of each period, the Company determines whether a provision
 should be made for impairment loss on assets by considering the
 indications that an impairment loss may have occurred in accordance
 with Accounting Standard 28 on ''''Impairment of Assets''''. Where the
 recoverable amount of any asset is lower than its carrying amount, a
 provision for impairment loss on assets is made for the difference.
 Recoverable amount is the higher of an asset''s net selling price and
 value in use. In assessing value in use, the estimated future cash fl
 ows expected from the continuing use of the asset and from its disposal
 are discounted to their present value using a pre tax discount rate
 that refl ects the current market assessments of time value of money
 and the risks specific to the asset.
 
 Reversal of impairment loss if any is recognised immediately as income
 in the Statement of Profit and Loss.
 
 (g) Investments:
 
 Long term investments are carried at cost.  Provision is made to
 recognise a decline other than temporary in the carrying amount of long
 term investment.
 
 Current investments are carried at lower of cost and fair value.
 
 (h) Inventories:
 
 Components and parts:
 
 Components and parts are valued at lower of cost and net realizable
 value. Cost is determined on First-In-First Out basis.
 
 Finished Goods:
 
 Valued at the lower of the cost or net realisable value. Cost is
 determined on First-In-First Out basis.
 
 (i) Revenue recognition:
 
 Revenue from software services and business process outsourcing
 services include revenue earned from services rendered on ''time and
 material'' basis, time bound fixed price engagements and system
 integration projects.
 
 All revenues from services, as rendered, are recognised when persuasive
 evidence of an arrangement exists, the sale price is fixed or
 determinable and collectability is reasonably assured and are reported
 net of sales incentives, discounts based on the terms of the contract
 and applicable indirect taxes.
 
 The Company also performs time bound fixed price engagements, under
 which revenue is recognized using the proportionate completion method
 of accounting, unless work completed cannot be reasonably estimated.
 Provision for estimated losses, if any on uncompleted contracts are
 recorded in the period in which such losses become probable based on
 the current contract estimates.
 
 The cumulative impact of any revision in estimates of the percentage of
 work completed is reflected in the year in which the change becomes
 known.
 
 Liquidated damages and penalties are accounted as per the contract
 terms wherever there is a delayed delivery attributable to the Company
 and when there is a reasonable certainty with which the same can be
 estimated.
 
 Revenues from the sale of software and hardware products are recognised
 upon delivery/deemed delivery, which is when title passes to the
 customer, along with risk and rewards.
 
 Unbilled revenues comprise revenues recognised in relation to efforts
 incurred, not billed as of the period end, where services are performed
 in accordance with agreed terms.
 
 The Company recognizes unearned finance income as fi nancing revenue
 over the lease term using the effective interest method.
 
 Dividend income is recognized when the Company''s right to receive
 dividend is established. Interest income is recognized on time
 proportion basis.
 
 (j) (a) F oreign currency transactions:
 
 Transactions in foreign currencies are recorded at the exchange rates
 prevailing on the date of transaction. Monetary items are translated at
 the period end rates. The exchange difference between the rate
 prevailing on the date of transaction and on the date of settlement as
 also on translation of monetary items at the end of the period is
 recognised as income or expense, as the case may be.
 
 Any premium or discount arising at the inception of the forward
 exchange contract is recognized as income or expense over the life of
 the contract, except in the case where the contract is designated as a
 cash fl ow hedge.
 
 (b) Derivative instruments and hedge accounting:
 
 The Company uses foreign currency forward contracts / options to hedge
 its risks associated with foreign currency fluctuations relating to
 certain forecasted transactions. Effective April 1st 2007 the Company
 designates some of these as cash fl ow hedges applying the recognition
 and measurement principles set out in the Accounting Standard 30
 Financial Instruments: Recognition and Measurements(AS 30).
 
 The use of foreign currency forward contracts/options is governed by
 the Company''s policies approved by the Board of Directors, which
 provide written principles on the use of such financial derivatives
 consistent with the Company''s risk management strategy. The counter
 party to the Company''s foreign currency forward contracts is generally
 a bank. The Company does not use derivative financial instruments for
 speculative purposes.  Foreign currency forward contract/ option
 derivative instruments are initially measured at fair value and are
 re-measured at subsequent reporting dates. Changes in the fair value of
 these derivatives that are designated and effective as hedges of future
 cash fl ows are recognized directly in reserves and the ineffective
 portion is recognized immediately in Statement of Profit and Loss.
 
 The accumulated gains and losses on the derivatives in reserves are
 transferred to Statement of Profit and Loss in the same period in
 which gains or losses on the item hedged are recognized in Statement of
 Profit and Loss.
 
 Changes in the fair value of derivative financial instruments that do
 not qualify for hedge accounting are recognized in the Statement of
 Profit and Loss as they arise.
 
 Hedge accounting is discontinued when the hedging instrument expires or
 is sold, terminated, or exercised, or no longer qualifies for hedge
 accounting. When hedge accounting is discontinued for a cash fl ow
 hedge, the net gain or loss will remain in reserves and be reclassifi
 ed to Statement of Profit and Loss in the same period or periods
 during which the formerly hedged transaction is reported in Statement
 of Profit and Loss. If a hedged transaction is no longer expected to
 occur, the net cumulative gain or loss recognized in reserves is
 transferred to Statement of Profit and Loss (k) Employee Retirement
 benefits: (a) Gratuity:
 
 The Company accounts for its gratuity liability, a defi ned retirement
 benefit plan covering eligible employees. The gratuity plan provides
 for a lump sum payment to employees at retirement, death,
 incapacitation or termination of the employment based on the respective
 employee''s salary and the tenure of the employment. Liabilities with
 regard to a Gratuity plan are determined based on the actuarial
 valuation carried out by an independent actuary as at the Balance Sheet
 date using the Projected Unit Credit method.
 
 Actuarial gains and losses are recognised in full in the Statement of
 Profit and Loss in the year in which they occur. (Refer note 29 below)
 
 (b) Provident fund:
 
 The eligible employees of the Company are entitled to receive the
 benefits of Provident fund, a defi ned contribution plan, in which
 both employees and the Company make monthly contributions at a specifi
 ed percentage of the covered employees'' salary (currently at 12% of the
 basic salary) and super annuation contributions, which are charged to
 the Statement of Profit and Loss on accrual basis. The provident fund
 contributions are paid to the Regional Provident Fund Commissioner by
 the Company.
 
 The Company has no further obligations for future provident fund and
 superannuation fund benefits other than its annual contributions.
 
 (c) Compensated absences:
 
 The Company provides for the encashment of leave subject to certain
 Company''s rules. The employees are entitled to accumulate leave subject
 to certain limits, for future encashment or availment. The liability is
 provided based on the number of days of unavailed leave at each balance
 sheet date on the basis of an independent actuarial valuation using the
 Projected Unit Credit method.
 
 Actuarial gains and losses are recognised in full in the Statement of
 Profit and Loss in the year in which they occur.
 
 The Company also offers a short term benefit in the form of encashment
 of unavailed accumulated leave above certain limit for all of its
 employees and same is being provided for in the books at actual cost.
 
 (d) Other short term employee benefits:
 
 Other short-term employee benefits, including overseas social security
 contributions and performance incentives expected to be paid in
 exchange for the services rendered by employees, are recognised during
 the period when the employee renders the service.
 
 (l) Borrowing costs:
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalized as part of the cost
 of such assets. A qualifying asset is one that necessarily takes a
 substantial period of time to get ready for its intended use or sale.
 All other borrowing costs are charged to revenue.
 
 (m) Taxation:
 
 Tax expense comprises of current tax and deferred tax. Current tax is
 measured at the amount expected to be paid to/recovered from the tax
 authorities, based on estimated tax liability computed after taking
 credit for allowances and exemption in accordance with the local tax
 laws existing in the respective countries.
 
 Minimum Alternative Tax (MAT) paid in accordance with 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 tax after the tax
 holiday period. Accordingly, it is recognized as an asset in the
 Balance Sheet when it is probable that the future economic benefit
 associated with it will fl ow to the Company and the asset can be
 measured reliably.
 
 Deferred tax assets and liabilities are recognised for future tax
 consequences attributable to timing differences between taxable income
 and accounting income that are capable of reversal in one or more
 subsequent years and are measured using relevant enacted tax rates. The
 carrying amount of deferred tax assets at each Balance Sheet date is
 reduced to the extent that it is no longer reasonably certain that
 sufficient future taxable income will be available against which the
 deferred tax asset can be realized.
 
 Tax on distributed Profits payable in accordance with the provisions
 of the Income-Tax Act, 1961 is disclosed in accordance with the
 Guidance Note on Accounting for Corporate Dividend Tax issued by the
 ICAI.
 
 (n) Employee Stock Option Plans:
 
 Stock options granted to the employees are accounted as per the
 accounting treatment prescribed by the Employee Stock Option Scheme and
 Employee Stock Purchase Scheme Guidelines, 1999 (ESOP Guidelines)
 issued by Securities and Exchange Board of India (SEBI) and the
 Guidance Note on Accounting for Employee Share-based Payments, issued
 by the ICAI. Employees eligible for Employee Stock Option Plan 2010 are
 granted an option to purchase shares of TML at predetermined exercise
 price. These options vest over a period of three years from the date of
 grant. The stock compensation cost is computed under the intrinsic
 value method and amortised on a straight line basis over the total
 vesting period of three years.
 
 (o) Provision, Contingent Liabilities and Contingent Assets:
 
 Provision is recognised, when the Company has a present obligation as a
 result of arising out of past events and it becomes probable that any
 outfl ow of resources embodying economic benefits will be required to
 settle the obligation, in respect of which a reliable estimate can be
 made.
 
 Contingent liabilities are not recognised in the financial statement.
 A Contingent asset is neither recognised nor disclosed in Financial
 statements.