(a) Basis of preparation of financial statements
 
 The financial statements of Zensar Technologies Limited are prepared
 under historical cost convention as a going concern on accrual basis
 and to comply in all material aspects with all the applicable
 accounting principles in India, the applicable Accounting Standards
 notified under section 211(3C) and other relevant provisions of the
 Companies Act, 1956 (the Act).
 
 (b) Use of estimates
 
 The preparation of financial statements requires Management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities, the disclosure of contingent liabilities on the date
 of the financial statements and the reported amounts of revenues and
 expenses during the period. Actual results could differ from these
 estimates. Any revision to accounting estimates is recognised
 prospectively in the current and future periods.
 
 (c) Revenue Recognition
 
 Revenues from software development and allied services consist of
 revenues earned from time and material and fixed price contracts.
 Revenue from time and material contracts are recognised as the related
 services are performed. Revenues from fixed price engagements are
 recognized using the percentage-of-completion method of accounting. The
 cumulative impact of any revision in estimates of the percent complete
 is reflected in the period in which the change becomes known.
 Provisions for estimated losses on such engagements are made during the
 period in which a loss becomes probable and can be reasonably
 estimated. Amounts included in the financial statements, which relate
 to recoverable costs and accrued profits not yet billed on contracts,
 are classified in current assets as Accrued Income (Unbilled Services).
 Billings on incomplete contracts in excess of accrued costs and accrued
 profits are classified in current liabilities. Revenue from the sale of
 user licenses for software applications is recognised on transfer of
 the title
 
 (d) Income from Investments
 
 (i) Profit on sale of investments is recorded on transfer of title from
 the Company and is determined as the difference between the sale price
 and the then carrying amount of the investment.
 
 (ii) Dividend income is recognised when the Companys right to receive
 dividend is established.
 
 (iii) Interest income on time deposits is recognised using the time
 proportion method based on underlying interest rates.
 
 (e) Software development expenses
 
 Application software and software purchased for use in the development
 of software for customers is charged to revenue over the life of the
 project.
 
 (f) Fixed Assets, Intangible Assets and Capital Work-in-Progress
 
 Fixed assets are stated at actual cost less accumulated depreciation.
 Cost of Fixed Asset comprises purchase price, duties, levies and any
 directly attributable costs of bringing the asset to its working
 conditions for the intended use, less CENVAT credit.
 
 Intangible assets are recorded at the consideration paid for
 acquisition. Internally generated intangible asset arising from
 development activity is recognised at cost on demonstration of its
 technical feasibility, the intention and ability of the Company to
 complete, use or sell it, only if, it is probable that the asset would
 generate future economic benefit and the expenditure attributable to
 the said assets during its development can be measured reliably.
 Intangible assets are carried at cost less accumulated amortization.
 
 Capital Work-in-Progress includes advances paid to acquire fixed
 assets, and the costs of fixed assets that are not ready for their
 intended use at the balance sheet date.
 
 (g) Depreciation
 
 Depreciation on fixed assets is computed on the straight- line method
 over their useful lives at rates which are higher than the rates
 (except for Building) prescribed under Schedule XIV of the Companies
 Act, 1956. Individual assets acquired for less than Rs. 5,000 are
 entirely depreciated in the year of acquisition.
 
 (h) Impairment
 
 The management periodically assesses, using external and internal
 sources whether there is an indication that an asset may be impaired.
 If an asset is impaired, the Company recognises an impairment loss as
 the excess of the carrying amount of the asset over the recoverable
 amount.
 
 (i) Investments
 
 Investments are classified as current investments and long-term
 investments based on the Managements intention at the time of
 purchase. Long-term investments are carried at cost and provision is
 made to recognise any diminution, other than temporary, in the value of
 such investment. Current investments are carried at lower of cost and
 fair market value. Also refer paragraph (k) (iii) below.
 
 (j) Employee Retirement Benefits: i.  Superannuation:
 
 The Company has Defined Contribution Plans for Post employment benefits
 for all employees in the form of Superannuation Fund administered by
 Life Insurance Corporation and Family Pension Fund administered by
 Regional Provident Fund Commissioner. These funds are classified as
 defined contribution plans as the Company has no further obligation
 beyond making the contributions. The Companys contributions to Defined
 Contribution Plans are charged to the Profit and Loss Account as and
 when incurred.
 
 ii. Gratuity:
 
 The Company has a defined benefit plan for Post- employment benefit in
 the form of Gratuity for all employees, who are administered through
 Life Insurance Corporation (LIC), AVIVA Life Insurance Company Private
 Limited (AVIVA) and a trust which is administered by the trustees.
 Liability for above defined benefit plan is provided on the basis of
 actuarial valuation, as at the Balance Sheet date, carried out by an
 independent actuary. The actuarial method used for measuring the
 liability is the Projected Unit Credit method.
 
 iii. Provident Fund:
 
 The Company has a post-employment benefit plan in the form of provident
 fund for all the employees, administered through a trust. Liability for
 this plan is charged based on contributions.  Further, the Company has
 an obligation to make good the shortfall, if any, between the return
 from the investments of the trust and the notified interest rate.
 
 iv. Compensated Absences:
 
 Liability for Compensated Absences is provided on the basis of
 valuation, as at the Balance Sheet date, carried out by an independent
 actuary. The Actuarial valuation method used for measuring the
 liability is the Projected Unit Credit method. In respect of encashment
 of leave, the Defined Benefit Obligation is calculated taking into
 account all types of decrement and qualifying salary projected up to
 the assumed date of encashment.
 
 v. Termination benefits are recognised as an expense as and when
 incurred.
 
 vi. The Actuarial gains and losses arising during the year are
 recognised in the Profit and Loss Account of the year without resorting
 to any amortisation.
 
 (k) Foreign Currency Transactions
 
 i) Realised gains and losses on foreign currency revenue transactions
 are recognised in the Profit and Loss Account.
 
 ii) Monetary current assets and monetary liabilities denominated in
 foreign currency at the year-end are translated at the year-end
 exchange rates, and the resulting exchange differences are recognised
 in the Profit and Loss Account, except for the
 
 exchange differences arising on a monetary item that, in substance,
 forms a part of the Companys net investment in a non-integral foreign
 operation, which are accumulated in a Foreign Currency Translation
 Reserve until the disposal of net investment.
 
 iii) Investments in overseas subsidiaries and jointly owned entities
 are recognised at the relevant exchange rates prevailing on the dates
 of allotment of the investments.
 
 (l) Financial instruments
 
 The Company early adopted Accounting Standard (AS) 30 Financial
 Instruments: Recognition and Measurement issued by the Institute of
 Chartered Accountants of India, along with the consequent limited
 revisions to other accounting standards, except so far as they are in
 conflict with other mandatory accounting standards and other regulatory
 requirements
 
 Derivative financial instruments
 
 The Company uses foreign exchange forward contracts and options to
 hedge its exposure to movements in foreign exchange rates. The use of
 these foreign exchange forward contracts and options reduces the risk
 or cost to the Company and the Company does not use the foreign
 exchange forward contracts or options for trading or speculation
 purposes.
 
 Forward and options contracts are fair valued at each reporting date.
 Changes in the fair values of forward contracts designated as cash flow
 hedges are recognized directly in the Hedging Reserve Account and
 reclassified into the Profit and Loss Account upon the occurrence of
 the hedged transaction. Changes in fair value relating to the
 ineffective portion of the hedges and derivatives not designated as
 hedges are recognized in the Profit and Loss Account as they arise.
 
 Non-Derivative Financial Instruments
 
 A financial instrument is any contract that gives rise to a financial
 asset of one entity and a financial liability or equity instrument of
 another entity. Financial assets of the Company mainly include cash and
 bank balances, sundry debtors, accrued income (unbilled services),
 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 sundry creditors, accrued
 expenses and derivative financial instruments with a negative fair
 value. Financial assets / liabilities are recognized on the Balance
 Sheet
 
 when the Company becomes a party to the contractual provisions of the
 instrument.
 
 The Company assesses at each Balance Sheet date whether there is any
 objective evidence that a financial asset or group of financial assets
 is impaired. If any such indication exists, the Company estimates the
 amount of impairment loss as the difference between the assets carrying
 amount and undiscounted amount of future cash flows, which is
 recognised in the Profit and Loss account.
 
 Short-term receivables with no stated interest rates are measured at
 original invoice amount, if the effect of discounting is immaterial.
 Non-interest-bearing deposits are discounted to their present value.
 
 The Company measures the short-term payables with no stated rate of
 interest at original invoice amount, if the effect of discounting is
 immaterial.
 
 (m) Foreign Branches
 
 All income and expenditure transactions of the foreign branches during
 the year are included in these Financial Statements at the average rate
 of exchange. Monetary assets and liabilities are translated at rates
 prevailing on the Balance Sheet date. Non-monetary assets and
 liabilities are translated at the rate prevailing on the date of the
 transaction. Depreciation on fixed assets is recognised as per the
 Companys policy referred to in paragraph 1(g) above. Net gain/loss on
 foreign currency translation is recognised in the Profit and Loss
 Account.
 
 (n) Employee Stock Option Schemes
 
 Stock options granted to employees under Employee Stock Option Schemes
 are accounted as per the accounting treatment prescribed by Employee
 Stock Option Scheme and Employee Stock Purchase Scheme Guidelines,
 1999, issued by the Securities and Exchange Board of India.
 Accordingly, the excess of the market value of the stock options as on
 the date of the grant over the exercise price of the options is
 recognised as deferred employee compensation and is charged to Profit
 and Loss Account over the vesting period. In the case of graded
 vesting, the vesting period is determined separately for each portion
 of the option. The unamortised portion of the cost is shown under
 Reserves and Surplus.
 
 (o) Taxation 
 
 Current Tax
 
 Provision for current tax is made and retained in the Accounts on the
 basis of estimated tax liability as per the applicable provisions.
 
 Deferred Tax
 
 Deferred tax for timing differences between the book profits and tax
 profits is accounted for using the tax rates and laws that have been
 enacted or substantively enacted as of the Balance Sheet date. Deferred
 tax assets arising from the timing differences are recognised to the
 extent there is reasonable certainty that sufficient future taxable
 income will be available against which such deferred tax assets can be
 realised.
 
 Deferred tax assets are recognised for tax loss and depreciation
 carried forward to the extent that the realisation of the related tax
 benefit through the future taxable profits is virtually certain and is
 supported by convincing evidence that sufficient future taxable profits
 can be realised.
 
 Minimum Alternative Tax (MAT)
 
 Minimum Alternative Tax (MAT) credit is recognized as an asset only
 when and to the extent there is convincing evidence that the Company
 will pay income tax higher than that computed under MAT, during the
 period that MAT is permitted to be set off under the Income Tax Act,
 1961 (specified period). In the year, in which the MAT credit becomes
 eligible to be recognized as an asset in accordance with the
 recommendations contained in the guidance note issued by the ICAI, the
 said asset is created by way of a credit to the Profit and Loss account
 and shown as MAT credit entitlement. The Company reviews the same at
 each Balance Sheet date and writes down the carrying amount of MAT
 credit entitlement to the extent there is no longer convincing evidence
 to the effect that Company will pay income tax higher than MAT during
 the specified period.
 
 (p) Provisions and contingent liabilities
 
 Provisions are recognised when the Company has a present obligation as
 a result of a past event and, it is probable that an outflow of
 resources will be required to settle the obligation and a reliable
 estimate of the amount of the obligation can be made. Provisions are
 determined based on best estimate required to settle the obligation at
 the balance sheet date. Provisions are reviewed at each balance sheet
 date and adjusted to reflect current best estimates. A disclosure for a
 contingent liability is made where there is a possible obligation or a
 present obligation that may, but probably will not, require an outflow
 of resources.
 
 (q) Earnings per share
 
 The basic earnings per share is computed by dividing the net profit
 attributable to equity shareholders for the period
 
 by the weighted average number of equity 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 which would 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 they have been
 issued at a later date.
 
 2. (a) During the previous year, pursuant to the Scheme of Amalgamation
 of the Companys wholly owned Subsidiaries, erstwhile Zensar OBT
 Technologies Limited (ZOBT) and Zensar Transformation Services Limited
 (ZTSL) (i.e. the transferor companies), were amalgamated with the
 Company. The Scheme of amalgamation was sanctioned by the Honble High
 Court of Judicature at Bombay vide its order dated April 9, 2010. The
 Appointed Date of the Scheme was April 1, 2009. In accordance with
 the said Scheme and as per the approval of the Honble High Court of
 Judicature at Bombay, net assets of Rs. 1419.68 lakhs of the transferor
 Companies were transferred to and vested in the Company with effect
 from April 1st, 2009. The Scheme had, accordingly, been given effect to
 in the financial statements for the year ended March 31st, 2010.
 
 (b) The amalgamation was accounted for under the pooling of interests
 method as prescribed by Accounting Standard (AS-14) issued by the
 Institute of Chartered Accountants of India. In accordance with the
 scheme, the difference of Rs.  337.25 lakhs between the amount recorded
 as share capital issued and the amount of share capital of the
 transferor company was adjusted in the General Reserve.