1.  Subsidiaries to consolidation:
 
 The consolidated financial statements present the consolidated accounts
 of Vishal Information Technologies Ltd., with the following
 subsidiaries.
 
 The consolidated accounts thus includes the results of the aforesaid
 subsidiaries and there are no other body corporate/entities, where the
 company hold 50% or more of the share capital or where the Company can
 control the composition of the Board of Directors/governing bodies of
 such companies/entities, where the holding may be less than 50%.
 Significant Accounting Policies and Notes to consolidated financial
 statements are intended to serve as a means of informative disclosure
 and a guide to better understand the consolidated position of the
 Group, Recognizing this purpose, the Company has disclosed only such
 policies and Notes from the individual financial statements, which
 fairly present the needed disclosures.
 
 We have verified the above Cash Flow Statement of Vishal Information
 Technologies Limited derived from Audited Financial Statements for the
 period ended 30th June 2010 and found the same in accordance therewith,
 and also with requirements of clause 32 of the listing agreement of the
 Stock Exchanges.