1.  Share application money represents unencashed refund instruments
 issued to the investors. This does not include any amount, due and
 outstanding, to be credited to the Investor Education and Protection
 Fund as per the provisions of the Companies Act, 1956.
 
 2.  Contingent liabilities and Commitments
 
 a. The Company has been named as one of the 20 defendants in a civil
 dispute for injunction pending adjudication. However in the opinion of
 the management no liability would arise in this regard.
 
 b. Disputed Value Added Tax Rs. 692.8 Million (Previous year: Rs.
 451.73 Million) and disputed Income Tax Rs.55.31 Million (Previous
 year: Rs.Nil)
 
 c. Claims against the Company not acknowledged as debts is Rs. 61.68
 Million (Previous year: Rs. 56.63 Million).
 
 d. Estimated amount of contracts (net of advances) remaining to be
 executed on capital account and not provided for is Rs. 101.72 Million
 (Previous year: Rs. 495.78 Million).
 
 3.  Issue of Bonus Shares
 
 Subsequent to the balance sheet date, on April 21, 2011, the
 shareholders of the Company have approved through Postal ballot
 process, the issue of one equity share of face value of Rs 10/- each as
 bonus share for every one share held by the equity shareholders of the
 Company whose name appear in the register of members as on the record
 date, by capitalisation of Securities premium account and also
 shareholders have approved for increase of authorised share capital
 from Rs. 750 Million to Rs.1,500 Million.
 
 4.  Divestment in Ver se Innovation Pvt Ltd
 
 During the year the Company sold 295,217 Equity Shares in Ver se
 Innovation Private Limited for a consideration of Rs. 397.04 Million.
 As a result of the above, the Company''s shareholding in Ver se
 Innovation Private Limited stands reduced and thus ceased to be an
 associate of the Company.
 
 5.  Market development and deployment rights
 
 The Company has entered into agreements with Telfonica Internacional,
 S.A.U, Spain and the telecom operators towards deploying Value Added
 Services on exclusive and non-exclusive basis in Latin America and
 Europe with an initial investment of Rs. 2,717.09 Million (Euro 40.5
 Million) and during the year has started operations in these regions.
 
 6.  Investments and loans to wholly owned Subsidiaries and employees
 
 (a) Investment in the wholly owned Subsidiaries has been made
 considering strategic business expansion plan. In the opinion of the
 management and considering intrinsic value and the business potential
 of the subsidiaries, the investment has been carried at cost.
 
 (b) The Company has given loan to its wholly owned subsidiaries the
 details of which are given below and which in the opinion of the
 Management is realisable in full.
 
 7.  Deferred Payment liability includes:
 
 1. Rs 139.44 Million (Euros 2.21 Million) (previous year: Rs. 1,389.85
 Million (Euro 22.95 Million)) payable to Telefonica Internacional,
 S.A.U, Spain towards accrual of liability relating to acquisition of
 market development and deployment rights.
 
 2. Rs 282.12 Million (Euros 4.46 Million) (previous year: Rs. 330.05
 Million (Euro 5.45 Million)) payable to a customer in Europe towards
 deploying value added services on an exclusive basis in the region.
 
 3. Rs. 35.09 Million (BRL 1.27 Million) (previous year: Rs. Nil)
 payable to a customer in Brazil towards deploying value added services
 on an exclusive basis in the region.
 
 4. Rs 0.5 Million (previous year: Rs. 0.5 Million) being balance
 consideration payable relating to acquisition of Intellectual Property
 Rights.
 
 8. Operating lease:
 
 a. The Company is obligated under non-cancellable operating lease for
 office space and vehicles provided to employees.
 
 b. During the year the Company has sub let office space under
 non-cancellable operating lease.
 
 The Company accounted the above options using the intrinsic value
 method and thus, the difference between the fair value of the
 underlying shares at the time of grant and the options exercise value
 was charged to the profit and loss account. Accordingly, the
 compensation charge thereon in the current year is Rs. 0.04 Million.
 (Previous year-Rs.0.11 Million).
 
 The guidance note issued by the Institute of Chartered Accountants of
 India requires the disclosure of pro forma net results and EPS both
 basic & diluted, had the Company adopted the fair value method. Had the
 Company accounted the option under fair value method, amortising the
 stock compensation expense thereon over the vesting period, the
 reported profit for the year ended March 31, 2011 would have been lower
 by Rs.95.65 Million (Previous year-Rs.21.05 Million) and Basic and
 diluted EPS would have been revised to Rs.14.0/- (Previous year-Rs
 8.7/-) and Rs.13.6/- (Previous year-Rs 8.5/-) respectively as compared
 to Rs.15.6/- (Previous year-Rs 9.2/-) and Rs.15.2/- (Previous year-Rs
 9.0/-) without such impact.
 
 The fair value of stock based awards to employees is calculated through
 the use of option pricing models, requiring subjective assumptions
 which greatly affect the calculated values. The said fair value of the 
 options have been calculated using Black-Scholes option pricing model, considering the expected weighted
average term of the options to be 
 3.9 years (Previous year 3.6 years), a Nil%(Previous year Nil %) 
 expected dividend rateon the underlying equity shares, weighted 
 average volatility in the share price of 53.17% (Previous year range 
 of 41%-53%) and a risk free rate of 8.25% p.a. 
 (Previous year 7.4% p.a.). The Company''s calculations are based on 
 a single option valuation approach, and forfeitures are recognized 
 as they occur. The expected volatility is based on historical 
 volatility of the share price during the year after eliminating the 
 abnormal price fluctuations.
 
 9. Transactions with related parties:
 
 I. List of Related parties and relationship:
 
 Sl.  Relationship  Related parties
 No. 
 
 (i) Subsidiaries OnMobile Singapore Pte. Ltd.
 
 OnMobile Australia Pty. Ltd.
 
 PT. OnMobile Indonesia .
 
 Vox Mobili S.A. (subsidiary of Telisma S.A. w.e.f. October 14, 2009)
 
 Telisma S.A.
 
 Phonetize Solutions Private Limited
 
 OnMobile Europe B.V.
 
 Servicios De Telefonia OnMobile, SA DE CV
 
 OnMobile USA LLC.
 
 Ver se Innovation Private Limited ( Till September 29, 2009)
 
 OnMobile Global S A
 
 OnMobile Brasil Sistemas De Valor Agregado Para Comunicacoes Moveis Ltda
 
 OnMoible Global for Telecommunication Services
 
 OnMobile Senegal SARL
 
 OnMobile Uruguay S A
 
 OnMobile De Venezuela C.A. (subsidiary of OnMobile USA LLC)
 
 (ii) Other related parties with whom the Company had transactions
 
 Key Management Personnel
 
 Arvind Rao
 
 Chandramouli Janakiraman
 
 Associate 
 
 Ver se Innovation Private Limited ( w.e.f September 29, 2009 till
 February 7, 2011)
 
 Enterprises owned or significantly influenced by key Management
 personnel/Directors or their relatives.
 
 OnMobile Systems INC, USA.
 
 Mobile Traffik Private Limited (Till January 18, 2010)
 
 Riff Mobile Private limited.
 
 10.  Accounting For Taxes On Income
 
 a. During the year, the Company has provided for Minimum Alternative
 Tax (MAT) under section 115JB of the Income tax Act, 1961 since the tax
 liability as per regular provisions of the Act is lower.
 Correspondingly, the Company has also claimed credit of Rs.92.72
 Million under section 115JAA of the said Act, which is disclosed as
 ‘MAT credit availed'' in the Profit and Loss Account.
 
 11.  Cash and cash equivalents include deposits of Rs.301.74 Million
 (March 31, 2010: Rs 11.30 Million) the use of which was restricted and
 also includes unrealised foreign exchange gain of Rs. 4.86 Million
 (March 31, 2010- loss of Rs.3.67 Million).
 
 12.  Since the Company prepares consolidated financial statements,
 hence as per Accounting Standard 17 on Segment Reporting, segment
 information has not been provided in the standalone financial
 statements.
 
 13.  Quantitative Details
 
 The Company is engaged in the development 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 paragraphs 3
 and 4C of part II of Schedule VI of the Companies Act, 1956. Further
 there are no traded goods during the year.
 
 14. Previous year''s figures have been regrouped/ reclassified wherever
 necessary.