1.  Contingent Liabilities not provided for:
 
 a) Claims not acknowledged as debts
 
 (Rs. in lacs)
 
 S.    Particulars             March 31, 2011     March 31, 2010
 No.
 
 i)    VAT/Sales Tax Matters           390.65             321.80
  
 ii)   Stamp Duty                       40.42                  -
 
 iii)  Others                          113.41             101.26
 
 b) Corporate Guarantee given by erstwhile Aksh Broadband Ltd. amounting
 to Rs. 582.03 lacs (Previous Year Rs.  582.03 lacs) in favour of M/s
 Cisco Systems Capital India Private Limited for loan taken by APAKSH
 Broadband Ltd., subsidiary of erstwhile Aksh Broadband Ltd.
 
 c) Corporate Guarantee given by the Company amounting to Rs. 6055.00
 lacs (Previous Year Rs. 6055.00 lacs) in favour of Union Bank of India,
 Punjab National Bank and ICICI Bank (Consortium Banks) for working
 capital facilities sanctioned to Aksh Technologies Ltd, a subsidiary
 company. Further the Immovable properties of the company are also
 charged for working capital facilities sanctioned to Aksh Technologies
 Limited.
 
 d) Estimated amounts of contracts remaining to be executed on Capital
 Account (net of advances) is Rs 983.88 lacs ( Previous Year Rs. 1510.03
 lacs).
 
 2.  Employee Benefits:
 
 The disclosures as per the Notified AS 15 under the Companies
 (Accounting Standards) Rules, 2006 (as amended) on Employee Benefits,
 are as follows:
 
 b) Defined Benefit Plans
 
 Gratuity and Leave Encashment - actuarial valuation done in accordance
 with the Accounting Standard -15 (Revised), details of the same are
 given :
 
 3. The Company had earlier issued 1% Foreign Currency Convertible Bonds
 (FCCBs) aggregating USD 8.75 Mn in January 2007 against which FCCBs
 aggregating USD 2.50 Mn were converted and balance USD 6.25 Mn were
 outstanding. These FCCBs were due for redemption in Janurary 2010.
 Pursuant to RBI approval, the Company exchanged the FCCBs aggregating
 USD 5.25 Mn with the new FCCBs of USD 6.328 Mn. The redemption premium
 of USD 1.078 Mn payable on redemption was adjusted against Securities
 Premium Account. The outstanding FCCBs of USD 1.00 Mn (due 2010) have
 been included under FCCBs and the redemption premium of USD 205,300 is
 included under current liabilities.
 
 In respect of outstanding FCCBs of USD 1 Million (due 2010), The Bank
 of New York has filed a winding up petition against the Company in
 Jaipur High Court under section 433 of the Companies Act, 1956. The
 matter is sub-judice and the Company is in process of filing suitable
 reply.
 
 4.  The Authorised Share Capital of the Company has increased from Rs
 8,000 lacs to Rs. 39,500 lacs vide shareholders resolution dated 22nd
 October 2010. However, the relevant Form 5 as per Companies Act, 1956
 has not been filed with Registrar of Companies. Consequently, Form 2
 with regard to allotment of 4,794,932 Equity Shares upon conversion of
 FCCBs after 22nd October 2010 has also not been filed with Registrar of
 Companies.
 
 5.  During the year, The Company has incorporated a wholly owned
 subsidiary in Dubai, viz. AOL FZE for expansion of Companies
 businesses. The Company also applied for winding up of its three wholly
 owned subsidiaries, i.e Aksh Net Tel Limited, Spyk Global Limited
 and Aksh Infratel Limited, which have accordingly been dissolved
 under section 560 of the Companies Act, 1956.
 
 6. Related Party Disclosures
 
 Related party disclosures as required under Accounting Standard - 18 on
 Related Party Disclosures issued by The Institute of Chartered
 Accountants of India are as given below as on 31st March, 2011:
 
 a) Subsidiary Companies :
 
 - APAKSH Broadband Limited
 
 - Aksh Technologies Limited
 
 - Aksh Net Tel Limited (Dissolved)
 
 - Aksh Infratel Limited (Dissolved)
 
 - SPYK Global Limited (Dissolved) 
 
 - AOL FZE
 
 b) Individuals exercising significant influence & their relatives:
 
 - Dr. Kailash S. Choudhari (Managing Director upto 31st August 2010,
 thereafter appointed as Chairman of the Company)
 
 - Mr P. F. Sundesha
 
 - Mr Shailesh Popat Lal (Relative of Mr. P F Sundesha)
 
 c) Key Management Personnel & their relatives:
 
 - Dr. Kailash S. Choudhari (Managing Director upto 31st August 2010,
 thereafter appointed as Chairman of the Company)
 
 d) Enterprise over which personnel referred in b & c aforementioned
 exercise significant influence : 
 
 - Fulchand Finance Private Limited (Relates to Mr. P F Sundesha)
 
 7.  Computation of net profit in accordance with Section 349 of the
 Companies Act, 1956, has not been given as no commission is payable to
 Managing Director for the current year.
 
 8.  There is no party to the extent to which they could be identified
 as Micro, Small and Medium Enterprises (MSMED), as none of the
 creditors have confirmed to be registered under the MSMED Act, 2006.
 
 9.  The Company has an investment of Rs. 11,297.50 Lacs in the equity
 shares and has outstanding dues of Rs. 1,727.97 Lacs (net of advances)
 from APAKSH Broadband Limited (APAKSH), subsidiary acquired as a result
 of the amalgamation of erstwhile Aksh Broadband Limited with the
 Company. APAKSHs operations are presently suspended due to some
 litigation. One of the shareholder of APAKSH filed a petition under
 sections 397, 398, 402, 403 of The Companies Act before Company Law
 Board(CLB), Additional Principal Bench, Chennai. The Honble Company
 Law Board gave specific findings of fact and law and dismissed the said
 petition. An appeal was filed against the judgment passed by CLB in
 Honble High Court of Andhra Pradesh, which was also dismissed. A
 Special Leave Petition (SLP) was filed against the Honble High Court
 order in the Honble Supreme Court. The Honble Supreme Court vide its
 order dated 7th May 2010 has dismissed the SLP. The Management of the
 Company has now initiated discussions on the revival of the project and
 is hopeful to restart the same. In view of the above, no provision has
 been considered necessary in respect of the outstanding dues and
 investment at this stage.
 
 10.  Operating Leases
 
 The Company has given factory land and building on operating lease. The
 lease term is for a period of eleven months and renewable as mutually
 agreed by both the parties. Disclosures in respect of Operating Leases
 of factory buildings as per the requirement of Notified AS-19 under the
 Companies (Accounting Standard) Rules, 2006 (as amended) on Leases
 issued by The Institute of Chartered Accountants of India, is as under:
 
 Lease rental recognized in the statement of Profit and Loss for the
 year is Rs. 444 Lacs (Previous year Rs. 148 Lacs).
 
 The future minimum lease rental receivable over the remaining lease
 period is Rs. 259 Lacs (Previous year Rs. 259 Lacs ).
 
 11.  Derivative Instruments and unhedged Foreign Currency Exposure
 
 No forward exchange contract, for hedge purpose, has been outstanding
 as on 31st March 2011.
 
 12 Previous years figures have been reworked, regrouped, rearranged
 and reclassified to conform to those of current years figures wherever
 necessary.