A.  Basis of Preparation of Financial Statements
 
 The financial statements are prepared under the historical cost
 convention from the books of accounts maintained on accrual basis, in
 conformity with accounting principles generally accepted in India, and
 comply with the accounting standards issued by the council of the
 Institute of Chartered Accountants of India and referred to in Section
 211 (3C) of the Companies Act, 1956, (the Act).
 
 B.  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, 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 period. Actual
 results could differ from these estimates. Any revision in accounting
 estimates is recognised prospectively in current and future periods.
 
 C.  Revenue Recognition
 
 i) Revenue from software development / software products recognized on
 the basis of delivery of the licenses of the required software products
 specified in the purchase order. The company also performs time bound
 fixed price engagements, under which, revenues are recognized using the
 stages of completion method of accounting.
 
 ii) Income and expenditure is accounted on accrual basis.
 
 iii) Dividends are recorded when the right to receive payment is
 established.
 
 D.  Fixed Assets
 
 i) Fixed assets are stated at cost less depreciation. All costs
 relating to the acquisition and installation of fixed assets are
 capitalised including directly attributable financing costs relating to
 borrowed funds and costs of bringing the asset to working condition for
 its intended use.
 
 ii) Software product development expenditure including expenditure on
 upgrades and new version are capitalized on completion of the product.
 Cost of Software purchased and procured for product
 development/customisation is added to software purchase expenditure.
 
 iii) Capital Work in Progress comprises of all directly attributable
 costs of bringing the assets to their working condition for their
 intended use and all indirect and incidental expenses.
 
 E.  Depreciation / Amortisation
 
 Depreciation is provided on straight-line method at the rates and in
 the manner specified in Schedule XIV to the Companies Act, 1956.
 Software product development expenditure is amortised over a period of
 three years. Lease hold buildings are amortised over the period of
 lease.
 
 F.  Borrowing cost
 
 Borrowing costs are recognised as an expense in the period in which
 they are incurred except those which are directly attributable to
 acquisition/construction of fixed asset, till the time such assets are
 ready for use, in which case the borrowing costs are capitalised as
 part of the cost of asset.
 
 G.  Investments
 
 i) Long term Investments are stated at cost. Provision for diminution
 in value of long term investments is made only if there is a decline
 other than temporary in the opinion of the management.
 
 ii) Current Investments are stated at cost or market value whichever is
 lower.
 
 H.  Foreign Currency Transactions
 
 i) India: Transactions in foreign currency are recorded at the exchange
 rate prevailing at the date of the transactions.  Resultant exchange
 difference, arising on payment is recognised as income or expense, in
 the period in which they arise.
 
 ii) The foreign exchange gain on reinstatement of Debtors, Creditors
 and Advances during the period has not been recognised in the books of
 accounts.
 
 iii) Any income and expenses on account of currency exchange difference
 either on settlement or on translation is recognised in the profit &
 loss account, except in accordance with schedule VI till March 31st
 2011 on the amount of payables and receivables related to purchase and
 sales.
 
 iv) Overseas Branches: Revenue transactions in foreign currency from
 overseas branches are recorded at the average exchange rate for the
 period, whereas the asset and liabilities are stated at closing
 exchange rates except for Investments for which rate prevailing on the
 date of investment or acquisition is applied for conversion. Resulting
 exchange difference, on conversion of assets and liabilities and income
 and expenses are transferred to Foreign Currency Translation Reserve.
 
 I.  Retirement Benefits
 
 i) The Company''s Contribution to Provident Fund are charged to Profit
 and Loss Account.
 
 ii) The liability for gratuity determined as on the Balance Sheet date,
 as per the provisions of Payment of Gratuity Act, is provided for and
 this liability is not funded.
 
 iii) In respect of Overseas Branches, the liability for gratuity and
 leave encashment is provided as per the prevailing laws of the
 respective countries.
 
 J. Taxes on Income
 
 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.  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. Deferred tax assets
 consisting of unabsorbed depreciation and carry forward of losses are
 recognised only to the extent that there is virtual certainty that
 sufficient future taxable income will be available to realise these
 assets.
 
 K. Earnings per share
 
 The basic earnings per share is computed by dividing the net profit
 after tax for the period by the weighted average number of equity
 shares outstanding during the period. Diluted earnings per share, if
 any is computed using the weighted average number of equity shares and
 dilutive potential equity share outstanding during the period except
 when the results would be anti-dilutive.
 
 L. Impairment
 
 Except otherwise than for Financial Assets, Inventories and Deferred
 Tax Asset, the Carrying Amounts of all the Assets are reviewed at each
 balance sheet date to determine any indications of impairment. An asset
 is treated as impaired when the carrying cost of assets exceeds its
 recoverable value . An impairment loss is charged to the Profit and
 Loss account in the period in which an asset is identified as impaired.
 The impairment loss recognised in prior accounting periods is reversed
 if there has been a change in the estimate of recoverable amount.
 
 M. Provision, Contingent Liabilities and Contingent Assets
 
 Contingent liabilities, if any, are disclosed by way of Notes on
 accounts. Provisions involving substantial degree of estimation in
 measurement are recognised when there is a present obligation as a
 result of past events and it is probable that there will be an outflow
 of resources. Provision is made in the Accounts in respect of those
 contingencies which are likely to materialise into liabilities after
 the period end, till the approval of accounts by the Board of Directors
 and which have material effect on the position stated in Balance sheet.