(i) All amounts in the financial statements are presented in Rupees
 thousands, except for share data and as otherwise stated.
 
 (ii) Previous year''s figures have been regrouped, rearranged and
 reclassified, wherever necessary to conform to current year''s
 classification.
 
 (iii) Provision for Doubtful Debts
 
 Periodically the company evaluates all customer dues to the company for
 collectability. The need for provisions is assessed based on various
 factors including collectability of specific dues, risk perceptions of
 the industry in which the customer operates, and general economic
 factors, which could affect the customer''s ability to settle. As at
 March 31, 2011, the company has provided for doubtful debts of Rs. Nil
 (as at March 31, 2010 Rs. Nil/-) on dues from customers. The company
 continues pursuing the parties for recovery of the dues, in part or
 full.
 
 The company has written off Rs. 2,432/- (P.Y. Rs. 1,130/-) as bad debts
 during the year.
 
 (iv) The company''s operations predominantly relate to providing IP
 Communications sales and services. There is thus only one reportable
 business segment encompassing a comprehensive range of services,
 including software development, packaged software integration,
 colocation, web hosting, web development, web mailing solutions,
 internet telephony and sales and integration of related networking
 equipment.
 
 Secondary segmental reporting is performed on the basis of the
 geographical location of customers.
 
 (v) Term Deposits aggregating to Rs.18572/- (P.Y.Rs. 20,977/-) have
 been pledged with Bank as a security towards non-fund based facilities
 availed from Bank.
 
 (vi) Payments made to Non Residents on account of Dividend
 
 The Company has paid dividend in respect of shares held by
 Non–residents by way of credit to their Non-Resident External Account
 (NRE A/c) or NRO A/c or otherwise by way of remittance in foreign
 currency.
 
 (vii) Dividend paid for the year 09-10 is in excess of the provision
 made on account of 916,818 shares allotted to M/s Granite Hill India
 Opportunity Fund on 3rd July 2010.
 
 (viii) The Company accounts for the liability for compensated absences
 payable in future and long service awards based on an independent
 actuarial valuation using the projected unit credit method as at the
 year end. Actuarial gains and losses are recognized immediately in the
 Profit & Loss Account.
 
 (ix) Capital work in progress including the advances to vendors is Rs
 20,202.
 
 (x) Sundry Creditors, to the extent to which they could be identified
 as small scale and ancillary undertakings on the basis of information
 available with the Company, do not include amounts greater than Rs. One
 Lakh outstanding for more than thirty days.
 
 (xi) The Company''s leasing arrangements are in respect of operating
 leases for premises (residential, office, stores etc). These leasing
 arrangements which are not non cancellable range between 11 months and
 3 years generally, or longer, and are usually renewable by mutual
 consent on mutually agreeable terms. The aggregate lease rentals
 payable are shown as Lease Rentals under Schedule ''O''.
 
 (xii) Related Party Disclosures as required by Accounting
 Standard-18: List of Related Parties and Relationships:
 
 i) Holding Companies: Nil
 
 ii) Subsidiaries of the Company: Domestic
 
 Net 4 Communications Ltd Overseas Net 4 Singapore Pte Limited
 
 iii) Entity having Significant Influence: 
 
 Trak Online Net India Pvt Ltd.  
 
 Jiwan Financial Holdings Ltd
 
 iv) Key Management Personnel and relatives of such personnel: Executive
 Directors
 
 Jasjit Sawhney
 
 Amarjit S. Sawhney
 
 Non Executive Directors
 
 Desi S. Valli
 
 Relative of Director
 
 Pawanjot Kaur Sawhney
 
 Suzane S Pai
 
 v) Entity where relative of Key Management Personnel exercises
 significant influence: Sterling Capital Pvt Ltd
 
 (xiii) Contingent Liabilities
 
 Outstanding guarantees and counter guarantees to various banks, in
 respect of the guarantees given by those banks in favour of various
 government authorities and others amounting to Rs.  1060/- (Previous
 year-Rs. 658/-).
 
 Guarantees to Banks against credit facilities extended to subsidiary
 amount to Rs. 411,200/- (Previous year – Rs. 358,300/-)
 
 Guarantees to Banks against credit facilities extended to associates
 amount to Rs. 100,000/- Claims against the company, not acknowledged as
 debts amount to Rs. 256/- (Previous year-Rs.  256/-)
 
 Disputed Income Tax Demand for AY 08-09 of Rs. 4,028/-, including
 interest (Previous year- Nil), though appeal filed. However based on
 past experience, there is a highly fair chance of liability being
 quashed.
 
 (xiv) Estimated amount of unexecuted capital contracts (net of advance)
 - Nil (Previous year-Rs. 13,045).
 
 (xv) It is not possible to furnish details of the quantities, due to
 heterogeneity of the items involved.  Also, the Company is primarily
 engaged in the provision of services related to internet, which 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
 paragraph 3, 4C and 4D of part II of Schedule VI to the Companies Act,
 1956.
 
 (xvi)Schedule ''A'' to ''S'' form an integral part of the Balance Sheet
 and Profit and Loss Account.