i.  Basis of preparation of fnancial statements
 
 The fnancial statements are prepared in accordance with Indian
 Generally Accepted Accounting Principles (GAAP) under the historical
 cost convention on the accrual basis, except for certain fnancial
 instruments which are measured on a fair value basis. GAAP comprises
 Accounting Standards specifed in the Companies (Accounting Standards)
 Rules, 2006, Accounting Standards issued by the Institute of Chartered
 Accountants of India (ICAI) and other generally accepted accounting
 principles in India.
 
 ii.  Use of estimates
 
 The preparation of financial statements in accordance with the
 generally accepted accounting principles requires management to make
 judgments, estimates and assumptions that affect the application of
 accounting policies and the reported amounts of assets and liabilities,
 income and expenses. Estimates and underlying assumptions are reviewed
 on an ongoing basis. Revision to accounting estimate is recognised in
 the period in which the estimates are revised and in any future period
 afected.
 
 iii.  Goodwill
 
 The goodwill arising on acquisition of a group of assets is not
 amortised and is tested for impairment if indicators of impairment
 exist.
 
 iv.  Fixed assets, intangible assets and work-in-progress
 
 Fixed assets are stated at historical cost less accumulated
 depreciation. Costs include expenditure directly attributable to the
 acquisition of the asset. Borrowing costs directly attributable to the
 construction or production of qualifying assets are capitalized as part
 of the cost.
 
 Intangible assets are stated at the consideration paid for acquisition
 less accumulated amortization.
 
 Advances paid towards the acquisition of fixed assets outstanding as of
 each balance sheet date and the cost of fixed assets not ready for use
 before such date are disclosed under capital work-in-progress.
 
 v.  Investments
 
 Long term investments are stated at cost less other than temporary
 decline in the value of such investments, if any. Current investments
 are valued at lower of cost and fair value determined by category of
 investment. The fair value is determined using quoted market
 price/market observable information adjusted for cost of disposal.
 
 vi.  Inventories
 
 Inventories are valued at lower of cost and net realizable value,
 including necessary provision for obsolescence. Cost is determined
 using the weighted average method. Cost of work-in-progress and fnished
 goods include material cost and appropriate share of manufacturing
 overheads.
 
 vii.  Provisions and contingent liabilities
 
 Provisions are recognised when the Company has a present obligation as
 a result of past event, it is probable that an outflow of resources will
 be required to settle the obligation, and a reliable estimate can be
 made of the amount of obligation.
 
 A disclosure for a contingent liability is made when there is a
 possible obligation or a present obligation that may, but probably will
 not, require an outflow of resources. Where there is a possible
 obligation or a present obligation in respect of which the likelihood
 of outflow of resources is remote, no provision or disclosure is made.
 
 The Company recognizes provision for onerous contracts based on the
 estimate of excess of unavoidable costs of meeting obligations under
 the contracts over the expected economic benefits.
 
 viii.  Revenue recognition
 
 Services:
 
 The Company recognizes revenue when the signifcant terms of the
 arrangement are enforceable, services have been delivered and the
 collectability is reasonably assured.  The method for recognizing
 revenues and costs depends on the nature of the services rendered:
 
 A.  Time and materials contracts
 
 Revenues and costs relating to time and materials contracts are
 recognized as the related services are rendered.
 
 B.  Fixed-price contracts
 
 Revenues from fixed-price contracts, including systems development and
 integration contracts are recognized using the
 “percentage-of-completion” method. Percentage of completion is
 determined based on project costs incurred to date as a percentage of
 total estimated project costs required to complete the project. When
 total cost estimates exceed revenues in an arrangement, the estimated
 losses are recognized in the statement of income in the period in which
 such losses become probable based on the current contract estimates.
 
 Unbilled revenues included in loans and advances represent cost and
 earnings in excess of billings as at the balance sheet date. Unearned
 revenues included in current liabilities represent billing in excess
 of revenue recognized.
 
 C.  Maintenance contracts
 
 Revenue from maintenance contracts is recognized ratably over the
 period of the contract using the percentage of completion method. When
 services are performed through an indefnite number of repetitive acts
 over a specified period of time, revenue is recognized on a
 straight-line basis over the specifed period unless some other method
 better represents the stage of completion.
 
 Products:
 
 Revenue from sale of products is recognized when the product has been
 delivered, in accordance with the sales contract.  Revenue from product
 sales are shown as net of excise duty, sales tax separately charged and
 applicable discounts.
 
 Other income:
 
 Agency commission is accrued when shipment of consignment is dispatched
 by the principal.
 
 Profit on sale of investments is recorded upon transfer of title by the
 Company. It is determined as the diference between the sales price and
 carrying amount of the related investment.
 
 Interest is recognized using the time-proportion method, based on rates
 implicit in the transaction.
 
 Dividend income is recognized where the Companys right to receive
 dividend is established.
 
 ix.  Leases
 
 Leases of assets, where the Company assumes substantially all the risks
 and rewards of ownership are classifed as fnance leases. Finance leases
 are capitalized at the lower of the fair value of the leased assets at
 inception and the present value of minimum lease payments. Lease
 payments are apportioned between the finance charge and the outstanding
 liability. The fnance charge is allocated to periods during the lease
 term at a constant periodic rate of interest on the remaining balance
 of the liability.
 
 Leases where the lessor retains substantially all the risks and rewards
 of ownership are classifed as operating leases.  Lease rentals in
 respect of assets taken under operating leases are charged to Profit and
 loss account on a straight line basis over the lease term.
 
 In certain arrangements, the Company recognizes revenue from the sale
 of products given under fnance leases. The Company records gross
 finance receivables, unearned income and the estimated residual value
 of the leased equipment on consummation of such leases. Unearned income
 represents the excess of the gross fnance lease receivable plus the
 estimated residual value over the sales price of the equipment. The
 Company recognises unearned income as fnancing revenue over the lease
 term using the efective interest method.
 
 x.  Foreign currency transactions
 
 The Company is exposed to currency fuctuations on foreign currency
 transactions. Foreign currency transactions are accounted in the books
 of accounts at the average rate for the month.
 
 Transaction:
 
 The diference between the rate at which foreign currency transactions
 are accounted and the rate at which they are realized is recognized in
 the Profit and loss account.
 
 Translation:
 
 Monetary foreign currency assets and liabilities at period-end are
 restated at the closing rate. The diference arising from the
 restatement is recognized in the Profit and loss account.
 
 In March 2009, Ministry of Corporate affairs issued a notifcation
 amending AS 11, The efects of changes in foreign exchange rates.
 Before the amendment, AS 11 required the exchange gains/losses on long
 term foreign currency monetary assets/liabilities to be recorded in the
 Profit and loss account.
 
 The amended AS 11 provides an irrevocable option to the Company to
 amortise exchange rate fuctuation on long term foreign currency
 monetary asset/liability over the life of the asset/liability or March
 31, 2011, whichever is earlier. The amendment is applicable
 retroactively from the fnancial year beginning on or after December 7,
 2006.
 
 The Company did not elect to exercise this option.
 
 xi.  Financial Instruments
 
 Financial instruments are recognised when the Company becomes a party
 to the contractual provisions of the instrument.
 
 Derivative instruments and Hedge accounting:
 
 The Company is exposed to foreign currency fuctuations on foreign
 currency assets, liabilities, net investment in a non-integral foreign
 operation and forecasted cash flows denominated in foreign currency. The
 Company limits the efects of foreign exchange rate fuctuations by
 following established risk management policies including the use of
 derivatives. The Company enters into derivative fnancial instruments,
 where the counterparty is a bank.
 
 The Company has adopted Accounting Standard 30, Financial Instruments:
 Recognition and Measurement (AS 30) issued by ICAI except to the extent
 the adoption of AS 30 does not confict with existing accounting
 standards prescribed by Companies (Accounting Standards) Rules, 2006
 and other authoritative pronouncements.
 
 In accordance with the recognition and measurement principles set out
 in AS 30, changes in fair value of derivative fnancial instruments
 designated as cash flow hedges are recognised directly in shareholders
 funds and reclassifed into the Profit and loss account upon the
 occurrence of the hedged transaction.
 
 The fair value of derivative financial instruments is determined based
 on observable market inputs including currency spot and forward rates,
 yield curves, currency volatility etc.
 
 Non-Derivative Financial Instruments
 
 A fnancial instrument is any contract that gives rise to a fnancial
 asset of one entity and a fnancial liability or equity instrument of
 another entity. Financial assets of the Company mainly include cash and
 bank balances, sundry debtors, unbilled revenues, finance lease
 receivables, employee travel and other advances, other loans and
 advances and derivative financial instruments with a positive fair
 value. Financial liabilities of the Company mainly comprise secured and
 unsecured loans, sundry creditors, accrued expenses and derivative
 financial instruments with a negative fair value. Financial assets are
 derecognized when all of risks and rewards of the ownership of the
 fnancial asset have been transferred. In cases where substantial risk
 and rewards of ownership of the fnancial assets are neither transferred
 not retained, fnancial assets are derecognized only when the Company
 has not retained control over the fnancial asset.
 
 The Company measures the fnancial assets and liabilities, except for
 derivative financial assets and liabilities at amortized cost using the
 effective interest method.  The Company measures the short-term
 payables and receivables with no stated rate of interest at original
 invoice amount, if the efect of discounting is immaterial. Non-
 interest-bearing deposits are discounted to their present value.
 
 xii.  Depreciation and amortization
 
 The Company has provided for depreciation using straight line method,
 at the rates specifed in Schedule XIV to the Companies Act, 1956,
 except in cases of the following assets, which are depreciated based on
 estimated useful life, which is higher than the rates specifed in
 Schedule XIV.
 
 Fixed assets individually costing Rs. 5,000/- or less are depreciated at
 100%.
 
 Assets under capital lease are amortised over their estimated useful
 life or the lease term, whichever is lower.  Intangible assets are
 amortized over their estimated useful life on a straight line basis.
 For various brands acquired by the Company, estimated useful life has
 been determined ranging between 20 to 25 years. The Company believes
 this based on number of factors including the competitive environment,
 market share, brand history, product life cycles, operating plan, no
 restrictions on title and the macroeconomic environment of the
 countries in which the brands operate. Accordingly, such intangible
 assets are being amortised over the determined useful life. Payments
 for leasehold land are amortised over the period of lease.
 
 xiii.  Impairment of assets
 
 Financial assets:
 
 The Company assesses at each balance sheet date whether there is any
 objective evidence that a fnancial asset or group of fnancial assets is
 impaired. If any such indication exists, the Company estimates the
 amount of impairment loss.  The amount of loss for short-term
 receivables is measured as the diference between the assets carrying
 amount and undiscounted amount of future cash flows. Reduction, if any,
 is recognised in the Profit and loss account. If at the balance sheet
 date there is any indication that a previously assessed impairment loss
 no longer exists, the recognised impairment loss is reversed, subject
 to maximum of initial carrying amount of the short-term receivable.
 
 Other than fnancial assets:
 
 The Company assesses at each balance sheet date whether there is any
 indication that a non-fnancial asset including goodwill may be
 impaired. If any such indication exists, the Company estimates the
 recoverable amount of the asset.  If such recoverable amount of the
 asset or the recoverable amount of the cash generating unit to which
 the asset belongs to is less than its carrying amount, the carrying
 amount is reduced to its recoverable amount. The reduction is treated
 as an impairment loss and is recognised in the Profit and loss account.
 If at the balance sheet date there is an indication that a previously
 assessed impairment loss no longer exists, the recoverable amount is
 reassessed and the asset is refected at the recoverable amount subject
 to a maximum of depreciated historical cost. In respect of goodwill,
 the impairment loss will be reversed only when it was caused by specifc
 external events of an exceptional nature that is not expected to recur
 and their efects have been reversed by subsequent external events.
 
 xiv.  Employee benefits
 
 Provident fund:
 
 Employees receive benefits from a provident fund. The employee and
 employer each make monthly contributions to the plan equal to 12% of
 the covered employees salary.  A portion of the contribution is made
 to the provident fund trust managed by the Company, while the remainder
 of the contribution is made to the Governments provident fund.
 
 Compensated absences:
 
 The employees of the Company are entitled to compensated absence. The
 employees can carry-forward a portion of the unutilized accrued
 compensated absence and utilize it in future periods or receive cash
 compensation at retirement or termination of employment for the
 unutilized accrued compensated absence. The Company records an
 obligation for compensated absences in the period in which the employee
 renders the services that increase this entitlement. The Company
 measures the expected cost of compensated absence as the additional
 amount that the Company expects to pay as a result of the unused
 entitlement that has accumulated at the balance sheet date. Long term
 compensated absences is accrued based on actuarial valuation at the
 balance sheet date carried out by an independent actuary.
 
 Gratuity:
 
 In accordance with the Payment of Gratuity Act, 1972, the Company
 provides for a lump sum payment to eligible employees, at retirement or
 termination of employment based on the last drawn salary and years of
 employment with the Company. The gratuity fund is managed by the Life
 Insurance Corporation of India (LIC), HDFC Standard Life, TATA AIG and
 Birla Sun-life. The Companys obligation in respect of the gratuity
 plan, which is a defned beneft plan, is provided for based on actuarial
 valuation carried out by an independent actuary using the projected
 unit credit method. The Company recognizes actuarial gains and losses
 immediately in the Profit and loss account.
 
 Superannuation:
 
 The employees of the Company also participate in a defned contribution
 plan maintained by the Company.  This plan is administered by the LIC
 and ICICI Prudential Insurance Company Limited. The Company makes
 annual contributions based on a specifed percentage of each covered
 employees salary.
 
 xv.  Employee stock options
 
 The Company determines the compensation cost based on the intrinsic
 value method. The compensation cost is amortised on a straight line
 basis over the vesting period.
 
 xvi.  Taxes
 
 Income tax:
 
 The current charge for income taxes is calculated in accordance with
 the relevant tax regulations.
 
 Deferred tax:
 
 Deferred tax assets and liabilities are recognised for the future tax
 consequences attributable to timing diferences that result between the
 Profit ofered for income taxes and the Profit as per the fnancial
 statements of each entity in the Company.
 
 Deferred taxes are recognised in respect of timing diferences which
 originate during the tax holiday period but reverse after the tax
 holiday period. For this purpose, reversal of timing diference is
 determined using frst in frst out method.
 
 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. The efect on deferred tax assets and liabilities of
 a change in tax rates is recognised in the period that includes the
 enactment/ substantive enactment date.
 
 Deferred tax assets on timing diferences are recognised only if there
 is a reasonable certainty that sufcient future taxable income will be
 available against which such deferred tax assets can be realized.
 However, deferred tax assets on the timing diferences when unabsorbed
 depreciation and losses carried forward exist, are recognised only to
 the extent that there is virtual certainty that sufcient future taxable
 income will be available against which such deferred tax assets can be
 realized.
 
 Deferred tax assets are reassessed for the appropriateness of their
 respective carrying amounts at each balance sheet date.
 
 The Company ofsets, on a year on year basis, the current tax assets and
 liabilities, where it has a legally enforceable right and where it
 intends to settle such assets and liabilities on a net basis.
 
 xvii. Earnings per share
 
 Basic:
 
 The number of equity shares used in computing basic earnings per share
 is the weighted average number of shares outstanding during the period
 excluding equity shares held by controlled trust.
 
 Diluted:
 
 The number of equity shares used in computing diluted earnings per
 share comprises the weighted average equity 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.
 
 Dilutive potential equity shares are deemed converted as of the
 beginning of the period, unless issued at a later date. The number of
 equity shares and potentially dilutive equity shares are adjusted for
 any stock splits and bonus shares issued.
 
 xviii. Cash flow statement
 
 Cash flows are reported using the indirect method, whereby net Profits
 before tax is adjusted for the efects of transactions of a non-cash
 nature and any deferrals or accruals of past or future cash receipts or
 payments. The cash flows from regular revenue generating, investing and
 fnancing activities of the Company are segregated.