1.1 Figures for the previous year have been re-grouped / re-arranged,
 wherever considered necessary, to conform to current years
 presentation. The current years fgures are not comparable with those
 of the previous year to the extent of acquisitions / divestments made
 by the Group during the current year and those made during the previous
 year.
 
 1.2 Capital commitments and contingent liabilities
 
                                                        Rs.in crores
                                            As at            As at
 
                                   March 31, 2011    March 31, 2010
 Capital Commitments*
 
 Estimated amount of contracts 
 remaining to be executed on capital ac-     2.96              6.92
 count and not provided for (net of 
 advances)
 
 Contingent Liabilities
 
 Outstanding guarantees                     20.40              7.19
 
 Premium on redemption of FCCB 
 (Refer Note No. 2.5)                       43.32             84.21
 
 Estimated amount of claims against 
 the Group not acknowledged
 as debts in respect of :
 
 -Disputed Income Tax matter                 8.02              5.75
 
 -Disputed Sales Tax matter                  2.12              1.08
 
 -Customer claims                            0.37              0.20
 
 -Others**                                  83.56             18.38
 
 *Except where amount is not ascertainable in respect of acquisition as
 mentioned in note no.2.4.1
 
 **Includes expenses of legal cases relating to Registrar & Transfer
 Services, which are reimbursable by the Principal
 to the extent of Rs. 0.74 crores (as at March 31, 2010 -Rs. 1.21 crores).
 
 1.3 Qualifed Institutional Placement Issue -
 
 During the year, the Parent Company has issued and allotted 2,29,00,099
 fully paid-up Equity Shares at a price of Rs. 78.60 per Equity Share
 (including premium ofRs. 68.60 per Equity Share) aggregating Rs. 179.99
 crores on April 7, 2010. These shares rank pari passu with the existing
 shares of the Parent Company with respect to dividend.
 
 1.4.1 In April 2008, the Parent Company entered into a share purchase
 agreement with the owners of Locuz Enterprise Solutions Limited,
 Hyderabad, to acquire the 2,60,000 shares (representing 26% of the
 paid-up equity capital of Locuz Enterprise Solutions Limited) for a
 consideration of Rs. 6.93 crores. In November, 2009, the Parent Company
 acquired further 25% stake in Locuz Enterprise Solutions Limited for a
 consideration of Rs. 5.32 crores along with a commitment to acquire the
 balance of the paid-up capital at a future date for additional
 consideration payable on achieving certain measurable criteria such as
 future revenue / proftability etc., as per the agreement. In September
 2010, the Parent Company acquired further 23% stake in Locuz Enterprise
 Solutions Limited for a consideration of Rs. 10.55 crores along with a
 commitment to acquire the balance of the paid-up capital at a future
 date for additional consideration payable on achieving certain
 measurable criteria such as future revenue / proftability etc., as per
 the agreement.
 
 Excess of consideration over the value of the net worth of Locuz is
 shown as goodwill arising on consolidation.
 
 1.4.2 a) In May 2008, the Parent Company entered into a share purchase
 agreement with the owners of Fineing
 Solutions Private Limited, Mumbai to acquire the 60,165 shares
 (representing 51% of the paid-up equity capital of FinEng Solutions
 Private Limited) for a consideration of Rs. 17.73 crores. In June 2009,
 the Parent Company has acquired additional 9% of the paid-up capital of
 FinEng Solutions Private Limited for a consideration of Rs. 3.67 crores.
 As agreed in the Share Purchase Agreement, in October 2009 the Parent
 Company made an upside payment of Rs. 2.71 crores to the Promoter
 Shareholders of FinEng Solutions Private Limited. In June 2010, the
 Parent Company acquired the balance 40% stake for a consideration of Rs.
 15.86 crores.
 
 b) In July 2010, the Parent Company entered into business purchase
 agreement with FinEng Solutions Private Limited.The Parent Company has
 acquired / assumed the assets and liabilities at their respective book
 values.
 
 1.4.3 The Board of Directors of the Parent Company have approved the
 amalgamation of J&B Software India Pvt. Ltd.  (J&B) with the Parent
 Company. In this regard, the Parent Company has received an
 in-principle approval from the Stock Exchange. The Parent Company is
 now in the process of fling a single petition for J & B in Madras High
 Court.
 
 1.4.4 a) During the year, the Parent Company has sold its 100% stake in
 eMudhra Consumer Services Limited (formerly
 known as 3i Infotech Consumer Services Limited) (including its
 subsidiaries) at a value of Rs. 29.88 crores, out of which Rs. 6.00 crores
 has been received in the current year and balance consideration of Rs.
 23.88 crores will be received as per the terms of agreement before
 December 2011;and
 
 b) Other receivable amounts of Rs. 25.00 crores from eMudhra Consumer
 Services Limited (formerly known as 3i Infotech Consumer Services
 Limited) have been converted into Zero Coupon Non Convertible
 Redeemable Preference Shares, redeemable by December 14, 2015.
 
 1.4.5 During the year, the Parent Company has sold its 100% stake in
 its subsidiary 3i Infotech Insurance & Reinsurance Brokers Limited for
 a consideration of Rs. 0.05 crores. The difference between the carrying
 value of investment and sale proceeds is accounted as loss on sale of
 investment and charged to Proft and Loss Account.
 
 1.4.6 In February 2010, 3i Infotech (Middle East) FZ LLC, Soft
 Solutions Ltd, Skye Bank PLC and Unity Bank PLC entered into a joint
 venture contract for the establishment of Joint Venture Company in
 Lagos, Nigeria. In pursuance to this, a Joint Venture Company, Process
 Central Limited was set up in Nigeria in May 2010, wherein the 3i
 Infotech (Middle East) FZ LLC interest in the equity was 47.50% and
 other partners having share of 17.5% each. 3i Infotech (Middle East) FZ
 LLC would have an option to raise its stake to 51% from 47.50% within 3
 years.
 
 In July 2010, 3i Infotech (Middle East) FZ LLC has invested USD 285,000
 being 60% of the Groups share of interest in Equity of the Joint
 Venture.
 
 1.6 (i) During the previous year, the Parent Company has bought back
 and cancelled FCCBs (out of the third and the fourth issues) of face
 value of EURO 6,000,000 and USD 8,500,000 equivalent to Rs. 82.42 crores
 at a discount resulting in reduction of liability by Rs. 29.19 crores.
 The same has been shown as exceptional income in the Proft & Loss
 Account.
 
 (ii) During the previous year, the Parent Company has incurred an
 amount of Rs. 1.33 crores towards professional fees in respect of the
 aforesaid buyback. The same has been shown as exceptional expenditure
 in the Proft & Loss Account.
 
 1.7 During the previous year, the Parent Company had exited from
 agreements with various State Governments in respect of setting up and
 operating Citizen Service Centers and loss of Rs. 260.46 crores thereon
 was disclosed as Impact Of Discontinuing Operations
 
 1.8 a) In the opinion of the Board, the investments, current assets,
 loans and advances are realizable at a value, which
 is at least equal to the amount at which these are stated, in the
 ordinary course of business and provision for all known and determined
 liabilities are adequate and not in excess of the amount stated.
 
 b) The accounts of certain Sundry Debtors, Creditors, Loans & Advances
 and Banks are however, subject to confrmations / reconciliations and
 consequent adjustments, if any. The management does not expect any
 material difference affecting the current years fnancial statements on
 such reconciliation / adjustments.
 
 1.9 Leases:
 
 a) Operating Lease:
 
 (i) The Parent Company has acquired certain Land and Building under a
 lease arrangement for a period of sixty years at a premium of Rs. 0.50
 crores starting from December 4, 2000 for Land and Rs. 15.62 crores
 starting from March 13, 2000 and Rs. 5.05 crores from March 1, 2003 for
 building and the same is being amortized over the lease period. All
 other lease arrangements in respect of properties are renewable /
 cancelable at the Groups and / or lessors option as mutually agreed.
 The future lease rental payment that the Group is committed to make is:
 
 1.10 Employee Stock Option Plan (ESOP):
 
 The Parent Companys Employees Stock Option Plan provides for issue of
 equity option up to 25% of the paid- up Equity Capital to eligible
 employees. The scheme covers the managing director, whole time
 directors and the employees of the subsidiaries, the erstwhile holding
 Company and subsidiaries of the erstwhile holding Company, apart from
 the employees of the Parent Company. The options vest in a phased
 manner over three years with 20%, 30% and 50% of the grants vesting at
 the end of each year from the date of grant and the same can be
 exercised within ten years from the date of the grant by paying cash at
 a price determined on the date of grant.
 
 Method used for accounting for the share based payment plan:
 
 The Parent Company has elected to use the intrinsic value method to
 account for the compensation cost of stock options to employees of the
 Parent Company. Intrinsic value is the amount by which the quoted
 market price of the underlying share as on the date of grant exceeds
 the exercise price of the option.
 
 Fair Value methodology for the option
 
 The fair value of options used to compute net income and earnings per
 equity share have been estimated on the dates of each grant within the
 range of Rs. 58.00 to Rs. 143.38 using the Black - Scholes pricing model.
 The Parent Company estimated the volatility based on the historical
 share prices. The various assumptions considered in the pricing model
 for the options granted under ESOP are:
 
 1.11 Related Party Transactions:
 
 Directors / Key Management Personnel: Mr. V Srinivasan (Managing
 Director), Mr. Amar Chintopanth (Deputy Managing Director & CFO), Mr.
 Anirudh Prabhakaran (Executive Director & President – South Asia (till
 November 2, 2010)).
 
 Enterprise in which relative of key managerial personnel has
 substantial interest – Cadenza Solutions Private Limited
 
 The following transactions were carried out with the related parties in
 the ordinary course of business during the year
 
 1.12 Disclosures pursuant to AS 17 – Segment Reporting:
 
 a) The Parent Company has started reporting two Operating Segments, IT
 Solutions and Transaction Services from this year as against to the
 segments IT Products, IT Services and Transaction Services
 hitherto being reported.
 
 b) As the Parent Company has increasingly commenced providing bundled
 solutions to clients, combining products & services, the management is
 viewing the entire IT business as a solution based segment. The change
 in reporting segment is in line with this change in the business
 offering.
 
 e) Considering the nature of the Groups business, the assets and
 liabilities cannot be identifed to any specifc business segment.
 
 1.13 Residual Dividend represents dividend on shares issued (entitled
 to previous year dividend) between the date of proposed dividend and
 record date.
 
 Residual dividend of Rs. 4.03 crores (inclusive of tax Rs. 0.57 crore) (for
 the year ended March 31, 2010 Rs. 0.02 crores (inclusive of tax Rs. 0.00
 crore)), is appropriated out of Proft & Loss Account.
 
 1.14 Amount of exchange difference (net) credited to Proft & Loss
 Account during the year ended March 31, 2011 is Rs. 2.99 crores (for the
 year ended March 31, 2010 credited Rs. 8.46 crores).
 
 1.15 a) Figures for the previous year have been re-grouped /
 re-arranged, wherever considered necessary to conform to current years
 presentation.
 
 b) Rs. 0.00 crores denotes fgures less than Rs. 50,000.