(1) Corporate Information
 
 Megasoft Limited, a public limited company domiciled in India and
 incorporated under the provisions of the Companies Act, 1956, on 29
 June 1999 and is having its registered office in Chennai.  The
 company''s shares are listed on Madras Stock Exchange, The National
 Stock Exchange and The Bombay Stock Exchange, in India. The company is
 a unique Indo-American trans-national company that combines the best
 practices of both cultures (Indian and American), creating a high
 quality and cost effective entity with a focus on the global
 telecommunications domain.
 
 (2) Related party transactions
 
 Wholly owned Subsidiary companies
 
 Megasoft Consultants Sdn Bhd, Malaysia, Megasoft Consultants Pte Ltd,
 Singapore, XIUS Holding Corp (f/k/a Boston Communications Group, Inc.),
 USA, XIUS Corp (f/k/a Cellular Express, Inc.), USA, BCGI Wireless
 Private Limited.
 
 Associates - Entities controlled by Director/s
 
 S Ravindra Babu HUF
 
 Aries Foundations Private Limited, Innovative Water Solutions Limited,
 NMR Property Development Private Limited, Sannareddy Holdings Private
 Limited, SR Heritage Farms Private Limited, SRB Infrastructure Private
 Limited, Sri City Infrastructure Development Private Limited, Sri City
 Private Limited, Sri City Property Development Private Limited, Sricity
 E-World Private Limited, Sricity Holdings India Private Limited,
 Sricity Projects Private Limited, Sricity Utility Services Private
 Limited, Suprani Farms Private Limited.
 
 Directors & Key Management Personnel
 
 GV Kumar & D Sudhakar Reddy
 
 (3) Quantitative details
 
 The Company is in the business of development and maintenance of
 computer software. The development and sale of such software cannot be
 expressed in any generic unit. Hence, it is not possible to furnish the
 quantitative details and the information required under paragraphs 3,
 4C and 4D of part II of Schedule VI to the Companies Act, 1956.
 
 (4) Segmental Information
 
 In accordance with AS 17 - Segment Reporting, segment information has
 been given in the consolidated financial statements of Megasoft Group
 and therefore no separate disclosure on segment information is given in
 these financial statements.
 
 (5) Corporate Guarantees
 
 The company has given a corporate guarantee for a foreign currency loan
 of US$ 8.00 million (Previous year - US$ 12.00 million) from Axis Bank,
 Hong Kong to XIUS Holding Corp (f/k/a Boston Communications Group,
 Inc.), USA.
 
 (6) Forward contracts
 
 Foreign exchange forward contracts outstanding at the end of the year
 is Nil (Previous year - USD 1 million approx. Rs. 48 million )
 
 (7)Previous year comparatives
 
 The company has prepared these financial statements as per the format
 prescribed by Revised Schedule VI to the Companies Act, 1956 (''the
 schedule'') issued by Ministry of Corporate Affairs. Previous periods''
 figures have been recast / restated to conform to the classification
 required under revised Schedule VI.
 
 (8) Cash flows
 
 Cash flows are reported using the indirect method, whereby profit
 before tax is adjusted for the effects of transactions of a non-cash
 nature and any deferrals or accruals of past or future cash receipts or
 payments. The cash flows from regular revenue generating, financing and
 investing activities of the company are segregated. Cash flows in
 foreign currencies are accounted at average monthly exchange rates that
 approximate the actual rates of exchange prevailing at the dates of the
 transactions.
 
 (9)Subsidiary companies details
 
 The details of subsidiary companies are given in a separate statement
 attached to the accounts in terms of the general circular No 2/2011
 dated 8 February 2011 of the Ministry of Corporate Affairs.