1) Background and Operational outlook
 
 Axis-IT&T Limited is a pure play Engineering Design Services (EDS)
 Company that delivers design based solutions to global engineering
 majors. Axis-IT&T Limited is organized into two divisions – EDS and
 Software Development Services.  The Company has made profit after tax
 of Rs. 62,267,727 during the year ended 31 March 2011 and its
 accumulated losses are Rs. 141,408,896. These accumulated losses
 represent erosion of more than fifty percent of net worth of the
 Company. The Company is projecting better performance in forthcoming
 years on the basis of increase in number of contracts with existing and
 new customers and cost control measures. There is no impact on the
 carrying/ recoverable value of the assets and liabilities and so no
 adjustments have been recorded for these assets and liabilities thereon
 in the financial statements. Accordingly, these financial statements
 have been prepared on a going concern basis.
 
 2) Earnings /(Loss) Per Share
 
 Basic earnings per share is calculated by dividing the net profit or
 loss for the period attributable to equity shareholders (after
 deducting preference dividends and attributable taxes) by the weighted
 average number of equity shares outstanding during the period. Partly
 paid equity shares will be treated as a fraction of an equity share to
 the extent that they were entitled to participate in dividends relative
 to a fully paid equity share during the reporting period.
 
 The weighted average numbers of equity shares outstanding during the
 period will be adjusted for events of bonus issue, bonus element in a
 rights issue to existing shareholders; share split; and reverse share
 split (consolidation of shares).
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the period attributable to equity shareholders and
 the weighted average number of shares outstanding during the period
 will be adjusted for the effects of all dilutive potential equity
 shares.
 
 3) Operating and finance leases
 
 Operating Leases
 
 The Company has entered into cancellable and non-cancellable operating
 lease agreements for its Business Centers and Corporate Office
 premises. These leases expire over the period extending up to 30
 November 2012 and are further renewable at the mutual consent of the
 Company and the lessor.
 
 The lease expenses for cancellable and non-cancellable operating leases
 during the year ended 31 March 2011 was ¹ 23,967,867 (31 March 2010 -
 Rs. Nil)
 
 c) Defined contribution plan
 
 The Company makes contribution of statutory provident fund as per
 Employees Provident Fund and Miscellaneous Provision Act, 1952. This is
 a defined contribution plan as per AS 15. Contribution made during the
 year ended 31 March 2011 is Rs. 4,992,640 (31 March 2010 - Rs.
 3,337,401)
 
 4) Miscellaneous expenditure
 
 Public issue expenses are amortised over a period of five years on
 pro-rata basis. However, if the equity offering is not probable or the
 offering is aborted, such costs will be expensed off in the year during
 which the offering is aborted or considered not probable.
 
 5) Other notes
 
 a) As at 31 March, 2011 debtors include a sum of Rs. 1,089,339 (31
 March 2010: Rs. 1,811,027) receivable outstanding for more than 365
 days. In this regard the Company is in the process of determining the
 appropriate course of action to ensure compliance with the requirements
 of Reserve Bank of India (RBI) Regulation and the Foreign Exchange
 Management Act, 1999.
 
 6) Related party disclosures
 
 Natureofrelationship Nameofparty
 
 i.  Parties where control exists : Holding company information
 
 The Company is a subsidiary of Tayana Digital Private Limited
 (demergedfrom Tayana Software Solutions Private Limited) which is a
 subsidiary of Axis Aerospace & Technologies Private Limited. (AATPL,
 formerly known as Jupiter Strategic Technologies Private Limited).
 AATPL, a venture funded by Jupiter Capital Private Limited (JCPL), is
 a subsidiary of JCPL.
 
 Subsidiary companies
 
 Axis Inc., U.S.A.
 
 Axis E.U. Limited
 
 Cades Digitech Private Limited
 
 Cades Technology Canada Inc
 
 ii.  Key Management Personnel : Chairman and CEO
 
 Mr. S Ravi Narayanan
 
 7) Additional disclosures under Schedule VI
 
 The Company is engaged in the business of rendering engineering design
 services. The production and sale of such services is not capable of
 being expressed in any generic unit. Consequently, the quantitative
 details of sales and the particulars required under paragraph 3, 4C and
 4D of Part II of Schedule VI to the Companies Act, 1956 have not been
 disclosed.
 
 8) Prior year comparatives
 
 Previous year figures have been regrouped or reclassified wherever
 considered necessary to conform to current year classification.