A Basis for preparation of financial statements
 
 The financial statements have been prepared under the historical cost
 convention, in accordance with Accounting Standards issued by the
 Institute of Chartered Accountants of India and the provisions of the
 Companies Act. 1956 as adopted consistently by the Company. All Income
 and expenditures having material bearing on the financial statements
 are recognised on accrual basis.
 
 The preparation of financial statement in conformity with Accounting
 Standards requires management to make estimates and assumptions that
 affect the reported amounts of assets and liabilities at the date of
 financial statements and the reported amounts of revenues and expenses
 during the reporting period. Examples of such expenses include,
 provisions for doubtful debts and the useful lives of fixed assets.
 Actual results could differ from those estimates B Revenue Recognition
 
 The Company follows the mercantile system of accounting and recognizes
 income and expenditure on accrual basis excepts in case of significant
 uncertainties.The principles of revenue recognition are given below: -
 
 I Revenue from sales is recognised upon the shipment of the products.
 
 II Income from annual maintenance and facilities management contracts
 is accounted for in the ratio of the period expired to the total period
 of contract and amount received from customers towards unexpired
 portion of annual maintenance contracts is shown as advances received
 from customers which is accounted as income in the following financial
 year(s).
 
 III Revenue from services rendered is recognized as and when the
 services are performed.
 
 IV Revenue from turnkey projects is recognised as percentage and
 proportion to work completion.
 
 C Fixed Assets and Depreciation
 
 I Fixed Assets
 
 Fixed Assets are stated at the cost of acquisition less accumulated
 depreciation. Cost includes all identifiable expenditure incurred to
 bring the assets to its present condition and location. Any gains or
 losses on account of exchange difference either on settlement or
 translation where they relate to the acquisition of fixed assets are
 adjusted to the carrying cost of such assets.
 
 II Depreciation
 
 The depreciation on fixed assets is provided using the straight line
 method as per Schedule-XIV of the Companies Act, 1956, except in the
 case of following assets, which are depreciated as follows:
 
 Assets                                    Rate of Depreciation/Period
                                               of Amortisation
 
 i).  Equipment-Tulip Connect
 
 a.  Fiber Cable - Tulip Connect                      5.28%
 
 b.  Plant & Machinery - Tulip Connect                  10%
 
 c. Wireless Equipment & Others -Tulip Connect        12.5%
 
 ii).  Leasehold Land Over the primary lease period
 
 These rates are not less than those prescribed under Schedule XIV of
 the Companies Act, 1956.  
 
 D.  Leases
 
 Lease rentals in respect of operating lease arrangements are recognised
 as an expense in the profit and loss account.  
 
 E Investments
 
 Long-term investment are stated at cost less provision for other than
 temporary diminution in value.  Short-term investments are carried at
 lower of cost and quoted value/fair value, computed category-wise.  
 
 F Miscellaneous Expenses (Preliminary Expenses) Preliminary Expenses
 are amortised over a period of 10 years.  
 
 G Inventories
 
 Inventories are valued at the lower of cost or net realisable value,
 after providing for obsolescence, if any. Cost of inventories comprises
 cost of purchase, freight and other expenses incurred in bringing the
 inventories to their present location and condition.  
 
 H Provision, Contingent Liabilities and Contingent Assets
 
 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.
 Contingent liabilities are not recognised but are disclosed in the
 notes. Contingent assets are neither recognised nor disclosed in the
 financial statements.  
 
 I Cash Flow Statement
 
 Cash flows are reported using the indirect method whereby net profits
 before tax is adjusted for the effect of transaction of non-cash nature
 and any deferrals or accruals of past or future cash receipts or
 payments. The cash flows for the regular revenue generating, investing
 and financing activities are segregated.  
 
 J Income from Investments
 
 Income from investments, where appropriates, is taken into revenue in
 full on declaration or receipt and tax deducted at source thereon is
 treated as advance tax.  
 
 K Foreign Currency Transactions
 
 I Transaction denominated in foreign exchange are recorded at the
 exchange rate prevailing at the date of the transaction. Receivable and
 payables at the year end are translated at the exchange rate prevailing
 on the balance sheet and differences coming there on are recognised in
 profit and loss account.
 
 II Monetary items denominated in foreign currencies at the year ended
 and not covered by forward exchange contracts are translated at year
 end exchange rates and in respect of those covered by forward exchange
 contracts, the difference between the contract rate and the spot rate
 on the date of transaction is charged to the Profit and Loss Account
 over the period of contract.
 
 III Any gain or losses on account of exchange difference either on
 settlement or on translation is recognised in the Profit and Loss
 Account except in cases where they relate to the acquisition of fixed
 assets in which case they are adjusted to the carrying cost such
 assets.
 
 IV Foreign currency assets and liabilities are translated at the year
 end rates and resultants gains/losses on foreign exchange transaction
 other than those relating to fixed assets are recognised in the profit
 and loss account.
 
 V Non-monetary foreign currency items are carried at cost.
 
 VI During the year, the Company has exercised the option available in
 notification issued by Ministry of Corporate Affairs vide GSR 225(E)
 dated 31 st March, 2009 on Accounting Standard (AS) 11. Henceforth, as
 on 30th June, 2010, the Company has added Rs. 1891.20 lacs to fixed
 assets on account of fluctuation in rate of foreign currency long term
 assets and liabilities by crediting Rs. 752.47 lacs to General Reserve
 for foreign exchange loss pertaining to period from 7th December, 2006
 to 31st March, 2010 and Rs. 1,138.72 lacs of foreign exchange loss
 pertaining to period 1st April, 2010 to 30th June, 2010. Had the option
 not been exercised, net profit would have been lower by Rs. 228.73 lacs
 for the year 2010-11. Other Income includes Rs. 4,384.08 lacs in year
 2009-10, which are related to gain on foreign exchange pertaining to
 aforementioned long term foreign currency assets and liabilities.
 
 L Research and Development
 
 Revenue expenditure on Research and Development is charged off to
 Profit and Loss Account in the year in which it is incurred.  Capital
 expenditure on Research and Development is shown under the relevant
 fixed assets and depreciation is provided as given in note no. 1 ( c )
 (ii) above.
 
 M Employee Benefits
 
 Short Term Employee Benefits
 
 Short-term employee Benefits are recognised in the period during which
 the services have been rendered.
 
 II Long Term Employees Benefits
 
 a. Defined Contribution Plans
 
 Contribution to Provident Fund are deposited with the appropriate
 authorities and charged to the profit and loss account on Accrual
 basis.
 
 b Defined Benefit Plans
 
 1 Gratuity
 
 The Company provides for the gratuity based on the Actuarial valuation
 as per the Projected Unit Credit Method in accordance with Accounting
 Standard - 15, (Revised), Employee Benefits
 
 ii Leave encashment
 
 The Company has provided for the liability at the year end on account
 of unavailed Earned Leave as per the Actuarial valuation as per the
 Projected Unit Credit Method in accordance with Accounting Standard
 -15, (Revised), Employee Benefits
 
 N Provision for Tax
 
 Tax expense for the year comprising current tax and, deferred tax is
 included in determining the net profit for the year.
 
 Provision is made for Current Tax on the basis of estimated taxable
 income for the current accounting year in accordance with the provision
 applicable under IncomeTaxAct-1961 with respect to that accounting
 year.  Deferred tax liability on account of timing differences between
 the book profit and the taxable profits for the year is accounted for
 using the tax rates as applicable as on the balance sheet date.
 
 Deferred tax assets arising on account of timing differences are
 recognised to the extent there is virtual certainty that these would be
 realized in the future.
 
 Deferred Tax assets and liabilities are measured using the tax rates
 and the tax laws that have been enacted or substantively enacted at the
 balance sheet date.
 
 0 Borrowing Cost
 
 Borrowing Cost that are attributable to the acquisition or construction
 of qualifying assets are capitalized as part of cost of such assets. A
 qualified asset is one that necessarily takes substantial period of
 time to get ready for intended use. All other borrowing costs are
 charged to revenue.
 
 P Earning Per Share
 
 Basic Earnings per share are calculated by dividing the net profit or
 loss for the year attributable to equity share holders after tax (and
 including post tax effect of any extra ordinary item) by the weighted
 average number of equity shares outstanding during the year, the
 weighted average number of equity shares outstanding during the period
 are adjusted for the events of number of shares to be issued against
 Foreign Currency Convertible Bonds issued by the Company.
 
 Q Modvat/Cenvat
 
 Modvat/Cenvat claimed on capital assets is credited to assets/ capital
 work in progress account. Modvat/Cenvat on purchase of raw material and
 other materials and services are deducted for the cost of such material
 and services.
 
 The policies not specifically mentioned above are in agreement with the
 Accounting Standards issued by the Institute of Chartered Accountants
 of India.