SIGNIFICANT ACCOUNTING

POLICIES

1. USE OF ESTIMATES

Accounting estimates could change from period to period. appropriate changes in estimates are made as the mgmt becomes aware of changes in circumstances surrounding the estimates.

2. REVENUE RECOGNITION

Revenue is primarily derived from software development & related services from the licensing of software products.

3. PROVISIONS & CONTINGENT LIABILITIES

A provision is recognized if ,as a result of a past event the company has a present legal obligation that can be estimated reliably & it is probable that an outflow of economic benefits will be required to settle the obligation. Where no reliable estimate can be made a disclosure is made as a contingent liability.

4. FIXED ASSETSFixed assets are stated at cost, less accumulated depreciation & impairments if any. Direct costs are capitalized until the fixed assets are ready to use.

5. INTANGIBLE ASSETS & CAPITAL WORK-IN-PROGRESS.

Intangible assets are recorded at the consideration paid to acquire such assets & are carried at cost less accumulated amortization & impairment Capital work-in-progress comprises outstanding advances paid to acquire fixed assets & the cost of fixed assets that are not yet ready for their intended use at the reporting date.

6. PROVIDENT FUND.It’s a defined benefit plan in which both the company &

employee make monthly contributions to the provident fund plan equal to a specified % of the covered employee’s salary. The company contributes a part of the contribution to the Infosys technologies limited employees’ provident fund trust.

7. DEPRICIATION & AMORTIZATIONDepreciation on fixed assets is provided on the straight line method. Intangible assets are amortized over their respective individual estimated useful lives on a straight line basis. The mgmt estimates the useful lives for the other fixed assets

BUILDINGS 15 YEARSPLANT & MACHINERY 5 YEARSCOMPUTER EQUIPMENT 2- 5 YEARSFURNITURE & FIXTURES 5 YEARSVEHICLES 5 YEARS