1.  Company Overview
 
 Datamatics Global Services Limited (DGSL) was incorporated on November
 3,1987 as Interface Software Resources Private Limited.  The name of
 the Company was changed to Datamatics Technologies Private Limited on
 December 18, 1992. On December 27,1999, the Company converted itself
 from a Private Limited Company into a Public Limited Company and the
 name of the Company was changed to Datamatics Technologies Limited on
 January 13,2000. The name of the Company was changed from Datamatics
 Technologies Limited to Datamatics Global Services Limited (DGSL)
 with effect from January 17,2009.
 
 Datamatics, a trusted partner to several Fortune 500 Companies is a
 global provider of Information Technology (IT) and Knowledge Process
 Outsourcing (KPO) and Consulting services. The Company provides
 business aligned next-generation solutions to a wide-range of industry
 verticals that help enterprises across the world overcome their
 business challenges and achieve operational efficiencies. These
 solutions leverage innovations in technology, knowledge of business
 processes, and domain expertise to provide clients a competitive edge.
 
 2.  Contingent Liability:
 
 Provision is made in the accounts if it becomes probable that an
 outflow of resources embodying economic benefits will be required to
 settle the obligation.
 
 Contingent Liabilities to the extent not provided for:
 
                                        31.03.2011           31.03.2010
                                            (3 )                 (^)
 
 (a) Details of guarantees and 
     sureties outstanding as at:
 
 (i) Guarantees given by Banks to 
     Embassy Centre Premises Co-operative
     Society Ltd.                          405,295            405,295
 
 (ii) Guarantees given by Banks to the 
     Assistant Commissioner of Central
     Excise and Customs department       1,134,250          1,134,250
 
 (iii) Guarantees given by Banks to 
       UNFCCC, BONN, Germany for Euro    
       84,398.70                         4,650,000          4,650,000
 
 (b)  Disputed Income Tax Liability     15,604,689          6,030,769
 
 (c)       Sales Tax                     5,074,525            229,000
 
 (d)       Others                           —               5,434,236
 
 
 3.  Capital and other commitments:
 
 Estimated amount of contracts on capital account remaining to be
 executed and not provided (net of advances) for Rs 244.17 million (P.Y.Rs
 69.53 million).
 
 4.  Forward and Options Contracts Outstanding as on 31.03.2011 is USD
 7.9 million (P.Y. USD 6.5 million) (equivalent to Rs 374.9 million (P.Y.
 Rs 316 million)). The foreign currency exposures that are not hedged by
 a derivative instrument or otherwise is r 23.99 million (P.YRs 79.74
 million).
 
 5.  In the opinion of the Company, the Current Assets, Loans and
 Advances are approximately of the value stated, if realized in the
 ordinary course of business. The provision for all known Liabilities
 and for Depreciation is adequate and not in excess of the amount
 reasonably necessary.
 
 6.  The Company has received confirmations from few debtors and for
 majority of loans and advances. Remaining debtors,creditors and loans
 and advances are subject to confirmation and reconciliation if any.
 
 7. The Management information system of the Company identifies and
 operates in a single primary business segment. In the opinion of the
 management these activities are governed by the same set of risk and
 returns as per AS-17 dealing with segmental reporting. All the assets
 of the Company are located in India and hence secondary segmental
 reporting is on the basis of the geographical location of customers.
 
 Fixed assets in India used in the company''s business or liabilities
 contracted in India cannot be identified to any geographical segment as
 the fixed assets and services are used interchangeably between
 geographical segments and a meaningful segregation is not possible.
 
 8.  Related party disclosures:
 
 (i) As per Accounting Standard 18, as notified by the rules the
 disclosures of Related Parties and transactions during the year as
 deemed in the Accounting Standard are given below:
 
 (A) Subsidiary Companies:
 
 Datamatics Global Services Inc.  Datamatics Global Services GmbH
 Datamatics Technologies UK Ltd.  Datamatics Software Services Ltd.
 Datamatics Global Technologies Ltd.  Datamatics Global Technologies AG
 Datamatics Infotech Ltd.  Datamatics Global Services Pty. Ltd.
 Datamatics Global Technologies GmbH
 
 (Q Key Managerial Personnel Dr. L. S. Kanodia Mr. Rahul Kanodia
 Mr.Vidur Bhogilal Mr. Sameer Kanodia
 
 (D) Relatives of Key Managerial Personnel Mrs. Asha Kanodia Mrs.
 Priyadarshini Kanodia Datamatics Staffing Services Pvt. Ltd.
 
 (B) Associate Companies and Joint Ventures: Datamatics Financial
 Services Ltd.  Cybercom Datamatics Information Solutions Ltd Datamatics
 Applied DSP Pvt. Ltd.  Anemone Management Consultancy Pvt. Ltd.
 Datascan Services
 
 (E) Holding Company
 
 Delta Infosolutions Pvt. Ltd.
 
 9.  Deferred Tax:
 
 (i) During the year ended 31st March, 2011, the Company has reversed
 deferred tax liability ofRs 2,816,204 in the Profit & Loss Account.
 
 10.  The Company has Outstanding Working Capital Loan/Advance of Euro
 100,000 from its subsidiary Datamatics Technologies GmbH at a interest
 rate of 1% p.a. above the LIBOR rate, and ofRs 81,843,468 from its
 subsidiary Datamatics Software Services Limited at a interest rate of
 8% p.a. as on March 31,2011.
 
 11.  Amount Recoverable from ESOP trust consists of Rs 69,347,270 paid
 to Datamatics Staff Welfare trust during the year for purchase of
 1,753,261 Equity shares of the Company.
 
 12.  During the year, Company has invested in 8% Non-Cumulative
 Redeemable Preference Share capital of USD 500,000 in Datamatics Global
 Technologies Ltd., incorporated in Mauritius.The said shares are
 redeemable at the option of the Company.
 
 * Since the employee wise break up of liabilities on account of
 retirement schemes based on actuarial valuation is not ascertainable,
 the amount relatable to Directors could not be included in above.  **
 The amount of commission payable includes Rs 525,000 (RY.  Rs 650,000)
 payable to non-wholetime directors.  *** Does not include monetary
 value of non-cash perquisites as per Income Tax Act,1961.
 
 13.  Portfolio Management services are provided by the Portfolio
 Manager - Reliance Capital Asset Management Ltd (RCAML) registered with
 SEBI vide registration No. INP000000423 and Trust Investment Advisors
 Pvt. Ltd. (TIAPL) registered with SEBI vide registration No.
 INP000001843. The portfolio Manager is engaged in investing funds in
 accordance with SEBI (Portfolio Managers) Regulations, 1993 of its
 client - Datamatics Global Services Ltd in securities and providing
 portfolio management services.
 
 RCAML and TIAPL has been appointed as the Portfolio Manager for
 managing the investments of its funds on a discretionary basis to avail
 of investment advisory and portfolio management services for the
 purpose of investment to be made in securities.  RCAML also holds the
 Power of Attorney to hold investments in its name for investments made
 on behalf of company. Investments made by RCAML under the Portfolio
 Management Services are made in a pool account and therefore are not
 held in the name of the Company.
 
 14.  The Company has Rs 101,714,678 (P.Y. Rs 139,592,553) as outstanding
 Loans and Advances (Refer note 21 below) and Rs 812,412,594 (P.Y. Rs
 731,278,219) as investment in seven of it''s 100% Subsidiaries at the
 year end. The net worth of these subsidiaries has declined. The Company
 has assured Financial Support. These investments are for long term and
 are of strategic nature. As the management is confident of turning
 around the subsidiaries in the near future provision for dimuniton in
 the value, if at all required, is not made.
 
 15.  In terms of Section 22 of the Micro, Small and Medium Enterprises
 Development Act, 2006, the outstanding to these enterprises are
 required to be disclosed. However, these enterprises are required to be
 registered under the Act. In the absence of the information about
 registration of the enterprise under the above Act, the required
 information could not be furnished.
 
 16.  Export of Service includes gain of Rs 28.88 million (P.Y. Nil)
 towards difference in the rate due to exchange fluctuation on
 realisation of export/revaluation of debtors at the end of the year.
 
 17.  Prior period comparative:
 
 Previous year figures have been appropriately reclassified/recast to
 confirm to the current year''s presentations.