Avaya GlobalConnect

1 Contingent liabilities in respect of disputed demands of:
 
 (a) Income tax authorities                       17.52        15.66
 
 (b) Excise and Customs authorities               12.43         8.23
 
 (c) Sales tax matters                             0.82         1.86
 
 (d) Bills Discounted                              6.50         2.87
 
 2 (a) Managerial Remuneration 
 (to the Vice-Chairman and Managing
 Director)
 
 Perquisites (includes Rs.0.21 Crore in 
 respect of earlier year)                          1.69         3.20
 
 Total                                             1.69         3.20
 
 (b) Managerial remuneration excludes Rs. 0.72 crore, being the amount
 paid to the Director in excess of the limits specified under the
 Companies Act 1956, for which an application has been made by the
 Company to the Central Government. In the event the approval is not
 received, Avaya Inc., the ultimate holding company, has agreed to pay
 this amount to the Company.
 
 3 In respect of contracts, for the provision / supply of services /
 goods, with a private company in which a Director of the Company is
 Director, the Company is of the view that the provisions of Section 297
 of the Companies Act, 1956 are not applicable. However, as a matter of
 abundant caution, the Board of Directors of the Company in their
 meeting held on 26th October, 2007 resolved to make an application
 seeking the approval of the Central Government.
 
 Pursuant to above, Company has filed application under section 621 (A)
 for compounding of offence committed under the section 297 of the
 Companies Act, 1956, for the transactions entered in 2006-07 and in
 2007-08 (upto February 24, 2008) for which approval is pending. The
 Company has obtained Central Government approval for entering into
 transactions with the above mentioned Company from the date of approval
 February 25, 2008 to September 30, 2010.
 
 4 (a) Sundry Debtors include amounts due from a Private Limited Company
 in which a Director is a Director
 
 Nil (Previous year Rs. 0.15 Crore).
 
 (b) Advances include a loan of Rs. 5.70 Crores granted to a trust
 formed pursuant to an engagement and retention plan for the benefit of
 certain employees of the Company. The trust has invested the amount
 borrowed in the equity shares of the Company.
 
 5 Segment Reporting
 
 (a) Primary Segment
 
 The Company operates in one business segment i.e., Business
 Communication Solutions.
 
 (b) Secondary Segment
 
 The Company caters mainly to the needs of Indian market and the export
 turnover for the current year being less than 10%, there are no
 reportable geographical segments.
 
 6 Related Party Disclosures
 
 1) Avaya Inc. and Avaya Singapore Pte. Ltd. have reimbursed the Company
 a sum of Rs. 1.03 Crores & Rs. 0.06 Crore (previous year Rs. 1.54
 Crores & Rs. Nil) and Rs. 1.51 Crores & Rs. 0.29 Crore (previous year
 Rs. 0.84 Crores & Rs. Nil) is recoverable as on September 30, 2008
 towards Avaya Technical Assistance Center (ATAC) project in accordance
 with agreements dated September 17, 2004 and October 1, 2007
 respectively.
 
 2) Consists of reimbursement of Advertisement costs and other expenses.
 
 3) Consists of reimbursement of Rent & other expenses
 
 Recovery of above expenses/cost of fixed assets aggregating to Rs. 4.79
 Crores (previous year Rs.5.75 Crores) have been netted off against the
 respective accounts in the Profit and Loss Account/Fixed Assets.
 
 4) Figures in brackets are in respect of previous year.
 
 7 Dues to Micro, Small and Medium Enterprises
 
 There has been no delayed payment on account of principal / interest as
 at the end of September 30, 2008.  There has been no interest payment
 due on principal amount paid / payable beyond due date during the
 period or relating to prior periods and no interest is accrued but not
 due on the said principal amount.
 
 8 The Company had, with requisite approvals, changed its accounting
 year from April-March to October- September; and its previous financial
 year was for a period of eighteen months period from April 01, 2006 to
 September 30, 2007. As a result, previous periods figures are not
 comparable with that of current year.
 
 However, wherever necessary, previous period figures have been
 re-grouped and reclassified to correspond to those of the current year.