Net 4 India

(i) All amounts in the financial statements are presented in Rupees
 thousands, except for share data and as otherwise stated.
 
 (ii) Previous years figures have been regrouped, rearranged and
 reclassified, wherever necessary to conform to current years
 classification.
 
 (iii) Provision for Doubtful Debts
 
 Periodically the company evaluates all customer dues to the company
 for collectibility. The need for provisions is assessed based on
 various factors including collectibility of specific dues, risk
 perceptions of the industry in which the customer operates, and
 general economic factors, which could affect the customers ability to
 settle. As at March 31,2008, the company has provided for doubtful
 debts of Rs. Nil (as at March 31,2007 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. 864/- (P.Y. Rs. 1,022/-) as bad debts
 during the year.
 
 (iv) The companys 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.
 
 (v) Term Deposits aggregating to Rs. 15,637/- (P.Y.Rs. 13,406/-) have
 been pledged with Bank as a security towards non-fund based facilities
 availed from Bank.
 
 (vi) Remittance in Foreign Currency 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.
 
 The total amount remitted in this respect is given herein below:
 
 a) Number of Non Resident Shareholders          4
 
 b) Number of Equity Shares held by them 43,76,000
 
 c) Amount of Dividend Paid (Rs.000)        4,376
 
 d) Year to which dividend relates 2006-07
 
 e) Tax deducted at source Rs. Nil
 
 (vii) The Company is taking steps to ascertain the actuarial Gratuity
 liability and necessary adjustments from the calculations done
 presently will be made on determination thereof. Meanwhile, the
 Company has established a Gratuity Fund, called the Net 4 India Ltd
 Employees Gratuity Fund, under an irrevocable Trust for making
 provisions of gratuity benefits to the employees of the Company. This
 is pending approva of the Commissioner of Income-Tax.
 
 (viii) 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.
 
 (ix) The Companys 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 Rent under Schedule O.
 
 (x) Estimated amount of unexecuted capital contracts (net of
 advance)- Rs.Nil (Previous year-Rs. 1,364/-).
 
 (xi) 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.