l.corporate information;
 
 helios and matheson information technology ltd is a public ltd company
 registered in india and incorporated under the provisions of the
 companies act,1956. its shares are listed in nse and bse in india and
 its subsidiary company helios and matheson information technology inc,
 usa is listed in NASDAQ.
 
 helios and matheson information technology ltd along with its
 subsidiaries namely helios and matheson information technology inc,
 usa, maruthi consulting inc, usa ,the laxmi group inc, usa, helios
 matheson inc,usa , helios & matheson(singapore) pte ltd helios &
 matheson it (bangalore)ltd, bangalore and jayamaruthi software services
 (p) ltd, chennai provide a wide range of information technology and
 consultancy services including software management solution, technology
 corporate training education services, the company''s full services
 portfolio consist of application development and maintenance ,system
 integration, independent verification ,managed services, the company
 caters to the bfsi (banking financial services and insurance),health
 care and technology sectors in india and across the global
 
 (a) rights, preferences and restrictions attaching to various classes
 of shares equity
 
 the company has issued only one type of share, ie, equity, the rights
 and resrictions are as per the provisions of the companies act and the
 articles of association.
 
 note 2
 
 money received against share warrants
 
 share application money received as on September 30,2012 represents the
 amount received from the promoters towards preferential allotment of
 equity shares as per sebi guidelines.
 
 note 3
 
 advance received towards subscription of redeemable preference shares
 
 this represents advance amount received from the sellers of vMoksha
 towards subscription of redeemable preference shares of your company as
 provided in the transaction agreements dated may 11, 2005. however, the
 sellers tried to renege the agreements and the company initiated
 arbitration proceedings, this matteris, therefore, sub-judice.
 
 this is a contra entry - refer to note 14 - arising out of a cash
 neutral structure envisioned in the transaction agreements, based on
 the legal opinion received, in the opinion of the management, outcome
 of the arbitration proceedings is unlikely to have any adverse effect
 on the operations of the company.
 
 note 4
 
 advance
 
 the represents the advance paid by our company for investment in 100%
 equity of vMoksha entities - 3,31,165 equity share of Rs.. 100 each
 (unquoted) as provided in the transaction agreements dated may 11,
 2005. however, the sellers tried to renege the agreements and the
 company initiated arbitration proceedings, this matter is, therefore,
 sub-judice.
 
 this is a contra entry - refer to note 6 - arising out of a cash
 neutral structure envisioned in the transaction agreements, based on
 the legal opinion received, in the opinion of the management, outcome
 of the arbitration proceedings is unlikely to have any adverse effect
 on the operations of the company.
 
 5) quantitative details
 
 the company is engaged in software development, software consultancy
 and maintenance of computer software, the production and sale of such
 software cannot be expressed in any generic unit, hence, it is not
 possible to give the quantitative details of sales and certain
 information as required under part ii of schedule vi to the companies
 act, 1956.
 
 the tax year for the company being the year ending 31st, march, the
 provision for taxation for the period is the aggregate of the provision
 made for the twelve months ended 31st march, 2012 and the provision
 based on the figures for the remaining six months up to 30th September,
 2012, the ultimate tax liability of which will be determined on the
 basis of the figures for the period 1st april, 2012 to 31st march,
 2013.
 
 6) dues to ssi, micro, small and medium enterprises:
 
 sundry creditors includes amount due to ssi, micro, small and medium
 enterprises as on 30.09.12: Rs.. nil (nil) with available information
 from micro, small and medium enterprises regarding their registration
 with central/state government authorities the disclosure as per sec 23
 of the micro small medium enterprises development act 2006 is made.
 
 7) segment reporting
 
 the company is operating in a single segment and the risk and reward
 are same for the segment in all the locations and hence segment
 reporting is not applicable to the company.
 
 the company transferred Rs..3,08,162/- to the investor education and
 protection fund, this is the amount the dividend payable account for
 the year ended 31.03.2005 remaining unclaimed and unpaid for a period
 of seven years from the date that they first became due for payment
 u/s. 205c of the companies act, 1956.
 
 8) names of the key management personnel
 
 mr. muralikrishna g. 
 
 mr. diwakar sai yerra
 
 9) contingent liability
 
 a.  the income tax demand of Rs..1,94,98,583/- on account of section
 10a disallowances for the a.y.2006-2007 is contested before the
 commissioner of appeals and the company has paid Rs..5,00,000/- and
 contested the demand.
 
 b.  the income tax demand of Rs..15,94,66,361/-(revised) on account of
 section 10 a of the income tax act for the assessment year 2008-09 and
 is contested before the commissioner of appeals, the company has
 already paid Rs..1,80,00,000/- towards the demand.
 
 c.  the income tax demand of Rs..2,47,10,740 on account of section 10 a
 of the income tax act for the assessment year 2009-10 and is contested
 before the commissioner of appeals and the company has paid
 Rs..40,00,000/- against the demand and contested.
 
 d.  the company has given corporate guarantee on behalf of its
 subsidiary company for Rs..55.34crore for the business requirements of
 the subsidiary.
 
 e.  the service tax demand of Rs..3,93,720/- on sponsorship services as
 the recipient of services is appealed before the commissioner of
 central excise (appeals) and the appeal is yet to be taken upand the
 company has paid under protest Rs..1,90,000/- towards demand.
 
 10) consequent to the notification issued by the ministry of corporate
 affairs on december 29, 2011, the company adopted the option given in
 paragraph 46a of the accounting standard-11 the effects of changes
 in foreign exchange rates . accordingly the exchange difference on
 foreign currency denominated long term borrowings and derivative
 contracts thereon with banks relating to acquisition of depreciable
 capital assets are adjusted in the carrying cost of such assets.
 
 11) during the year ended September 30, 2012, the revised schedule vi
 notified under the companies act 1956, has become applicable to the
 company, for preparation and presentation of its financial statements,
 accordingly, the company has reclassified / regrouped/ amended the
 previous year figures in accordance with the requirements applicable in
 the current year.