1.1 Basis of preparation of Financial Statements:
 
 The financial statements have been prepared under the historical cost
 convention, on the basis of going concern and on accrual method of
 accounting, in accordance with Normally Accepted Accounting Principles
 and provisions of the Companies Act, 1956 as adopted consistently by
 the Company. All incomes and expenditures having material bearing on
 financial statements are recognized on accrual basis. The Company has
 complied with all the mandatory Accounting Standards (AS) to the extent
 applicable as prescribed by the Company''s (Accounting Standards) Rules,
 2006, the provisions of the Companies Act 1956. The Accounting policies
 have been consistently applied except where a newly issued Accounting
 Standard is initially adopted or a revision to an existing Accounting
 Standard requires a change in the Accounting Policy hitherto in use.
 
 1.2 Presentation and disclosure of financial statements
 
 During the year ended 31st March 2012, the Revised Schedule VI notified
 under the Companies Act, 1956 has become applicable to the Company, for
 preparation and presentation of its financial statements. The Company
 has also reclassified the previous year figures in accordance with the
 requirements applicable in the current year.
 
 1.3 Use of Estimates:
 
 The preparation of the financial statements in conformity with Normally
 Accepted Accounting Principles requires estimates and assumptions to be
 made that affect the reported amounts of the assets and liabilities on
 the date of financial statements and the report amount of revenues and
 expenses during the reported period. Difference between the actual
 results and estimates are recognized in the period in which it gets
 materialized.
 
 1.4 Revenue Recognition
 
 Revenue from services is recognized based on time and material and
 billed to the clients as per the terms of the contract. In the case of
 fixed price contracts, revenue is recognized on periodical basis based
 on units executed and delivered.
 
 Revenue from sale of software is recognized on delivery and transfer of
 ownership of the software to the clients.
 
 Revenue from sale of software licenses are recognized upon delivery
 where there is no customization required. In case of customization the
 same is recognized over the life of the contract using the
 proportionate completion method.
 
 Other Income: Interest Income is accounted on accrual basis. Dividend
 income is accounted for when right to receive is established.
 
 1.5 Fixed Asset, Depreciation and Amortisation
 
 a) Fixed Assets:
 
 Fixed Assets are stated at cost less accumulated depreciation. For this
 purpose cost comprises of cost of acquisition and all costs directly
 attributable to bringing the asset to the present condition for its
 intended use. Capital work in progress comprises advance paid to
 acquire fixed assets and the cost of fixed assets that are not ready
 for their intended use at the balance sheet date.
 
 b) Metho d of Depreciation:
 
 Depreciation is provided during the year under Straight Line method, on
 pro-rata basis on assets put to use at the rates prescribed under
 Schedule XIV of the Companies Act, 1956.  Individual low cost assets
 (acquired for less than Rs. 5,000/-) are entirely depreciated in the year
 of acquisition.
 
 1.6 Investments :
 
 Investments are valued at cost inclusive of all expenses incidental to
 their acquisition. All the investments are intended to be held for a
 period of more than one year from the date on which investments are
 made are classified as long term investments. All long term investments
 are carried at cost. No provision for diminution in value of long term
 investments is made. Overseas Investments are carried at their original
 rupee cost of acquisition.
 
 1.7 Foreign Currency Transactions:
 
 Transactions in foreign currency are recorded at the rates of exchange
 prevailing on the date of transactions. Exchange differences are
 recorded when the amount actually received on sales or actually paid
 when expenditure is incurred, is converted into Indian Rupees. The
 exchange differences arising on foreign currency transactions are
 recognized as income or expense in the year in which they arise.
 
 Forward premia/discount in respect of forward exchange contracts are
 recognized over the life of the contract.
 
 Fixed assets purchased are recorded at cost, based on the exchange rate
 as of the date of purchase.
 
 Monetary current assets and monetary current liabilities that are
 denominated in foreign currency are translated at the exchange rate
 prevailing at the date of balance sheet. In case of items which are
 covered by forward exchange contracts, the difference between the
 exchange rate prevailing at the Balance Sheet date and the rate on the
 day of contract is recognized as exchange difference. The resulting
 difference is also recorded in the Statement of Profit and Loss.
 
 1.8 Retiring Benefits:
 
 The Company has Defined Contribution Plan for its Employees'' Retirement
 Benefits comprising of Provident Fund, Employees'' State Insurance Fund
 which are recognized by the Income Tax Authorities. The Company and
 eligible employees make monthly contributions to the Provident
 
 Fund equal to specified percentage of the covered employees'' salary.
 The Company also contributes to Employees'' State Insurance Fund and has
 no further obligation to the plan beyond its monthly contribution.
 
 The Company has Defined Benefit Plan comprising of Gratuity. The
 benefits are based on final salary and cost of the benefit is entirely
 borne by the Company. The benefits of the scheme are paid in accordance
 with the Payment of Gratuity Act, 1972 without any monetary limit. The
 liability for Gratuity is determined on the basis of an independent
 actuarial valuation done at the year end. The liability is computed
 based on current salary levels projected to the probable due date. The
 method employed is projected unit credit method.
 
 As per Company Policy the unused accumulated leave balance lapses at
 the yearend and no employee is entitled to cash compensation for unused
 accumulated leave balance at the end of the year , hence, no provision
 is required to be made.
 
 1.9 Income Tax
 
 Tax expense comprises of current and deferred tax.
 
 Current income tax is measured at the amount expected to be paid to the
 tax authorities in accordance with the Income-tax Act, 1961 after
 complying with the various provisions of the Act.
 
 Provision for deferred tax is made using the applicable rate of
 taxation, for all timing differences which arise during the year and
 are reversed in subsequent periods.
 
 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 when there is
 convincing evidence that the Company will pay normal income tax after
 the tax holiday period. Accordingly MAT is recognized as 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.
 
 1.10 Inventory:
 
 Work in Progress is valued at cost. Traded goods are valued at lower of
 cost or net realizable value.
 
 1.11 Software:
 
 The Company has internally generated software for its captive use for
 the various long term projects received. The direct cost of this
 software is capitalized and shown as Intangible assets under the Group
 Fixed Assets. This amount would be amortized beginning from the year
 subsequent to the year in which the said is put to use. The
 amortization period would be the project period or three equal yearly
 installments whichever is less.
 
 1.12 Earning Per Share:
 
 In determining earnings per share, the Company considers the net profit
 after tax. The number of shares used in computing basic earnings per
 share is the weighted average number of shares outstanding during the
 period. The number of shares used in computing diluted earnings per
 share comprises the weighted average shares considered for deriving
 basic earnings per share, and also the weighted average number of
 equity shares that could have been issued on the conversion of all
 dilutive potential equity shares.
 
 1.13 Contingent Liability:
 
 Claims against the Company are recognized when Board of Directors
 determine that it is probable that the liability will be payable.
 Claims made by the Company are recognized when formal intimation of the
 agreement of the Claim is received from the counter parties. Contingent
 Liabilities are not recognized but are disclosed in the notes (Refer
 note 3.1).
 
 1.14 Leases:
 
 In respect of Operating leases, lease rentals are expensed with
 reference to the terms of lease.
 
 1.15 Miscellaneous Expenditure (to the extent not written off or
 adjusted):
 
 Expenses incurred would be amortized over a period of ten years
 beginning from the date of incurrence.
 
 1.16 Accounting policies not specifically referred to are consistent
 with the Indian Normally Accepted Accounting Principles.