A Contingent Liability & Commitments
 
 The following Income Tax dues have not been deposited on account of
 dispute as detailed under.
 
 Rs. In Lacs
 
 Statute              *Assessed/         Assessment    Forum where
                   Reassessed Demand        Year      dispute is pending
 
 Income Tax             16.24             2002-03           ITAT
 
 Act, 1961               6.53             2004-05            -
 
 12.31                2006-07                ITAT
 U/s 269UC and
 
 269 UL(2)              5.00#             2002-03      City Civil Court
 Income Tax
 Act, 1961
 
 * The above figures are net of taxes paid on self assessment.  As
 against the above assessed / Reassessed demands, Rs.1.07 Crore has been
 recovered from the company towards various assessment years, by the
 Income Tax Department.
 
 # Of the above demand Rs.2 Lacs have been paid.
 
 - The company has given a Bank guarantee to the tune of Rs.7.75 Lacs
 favoring The Commissioner of Customs, Chennai towards purchase of
 duty exempted Capital goods.
 
 - The company has been convicted by the trail court, Chennai to pay
 fine of Rs.2.5 Lacs for each (against which Rs.2 Lacs paid) of the
 offences u/s 269UC and 269UL(2) read with 276 AB of Income Tax, 1961.
 The company went on appeal against the same with Principal Sessions
 Judge, City Civil Court, Chennai.
 
 B Secured Loans / Borrowings
 
 The various fund based facilities availed from State Bank of India is
 secured primarily by the first charge on the current assets of the
 company and collaterally secured by immovable properties situated at
 Chennai and Kodaikanal belonging to the company, hypothecation of
 movable assets belonging to the company.  The facilities are further
 collaterally secured by pledge of 20 Lac Shares of the company in the
 name of Chairman and personal guarantee of the Chairman.
 
 The Non-Fund based facility is secured primarily by the counter
 guarantee from the company and extension of the charge on the current
 assets of the company apart from the collateral security and personal
 guarantee mentioned above.  The company defaulted in payment of its
 interest and principal portion of its various credit facilities availed
 from the State Bank of India during the year and the unpaid interest
 provided for in the books amounts to Rs.21.03 Crores.
 
 C Investments
 
 The wholly owned subsidiary ''Pingho Associates Corporation (the
 Company) incorporated in USA ceased its business operation during last
 year and filed a voluntary chapter 11 bankruptcy protection petition to
 reorganize its business with US bankruptcy court, Eastern District of
 Virginia, USA. Hence the whole investment along with inter company
 receivables have been written off during the year amounting to Rs.76.88
 Crores.
 
 D Segment reporting
 
 The Segment reporting of the company has been prepared in accordance
 with the AS 17 Segment Reporting issued pursuant to the Companies
 (Accounting Standard) Rules, 2006 and by The Institute of Chartered
 Accountants of India.
 
 The Company''s operation was focused on BFSI, QASS, Other emerging
 verticals. Accordingly, these three business divisions comprise a
 significant portion of the primary basis for the segmental information
 set out in these financial statements.
 
 Secondary Segmental reporting is reported on the basis of the
 Geographical location of the customers. Geographical revenues are
 segregated based on the location of the customer who is invoiced or in
 relation to which the revenue is otherwise recognized.
 
 E Related party transactions
 
 Disclosure is being made below separately for all the transactions with
 related parties as specified under AS 18 - Related Party Disclosure
 issued pursuant to the Companies (Accounting Standard) Rules, 2006 and
 by The Institute of Chartered Accountants of India.
 
 (i) The Company has transactions with the following related parties:
 
 Subsidiary companies: Quintegra Solutions Limited U.K, Quintegra
 Solutions (M) Sdn Bhd, Quintegra Solutions Gmbh, Quintegra Solutions
 Ireland Limited and PAC Inc.,
 
 Directors & Key Management Personnel or Companies in which they are
 interested:
 
 Mr V Shankarraman and Mr V Sriraman
 
 Trusted Aerospace Engineering Limited
 
 J Due to Small Scale Industries
 
 There are no dues to Small Scale Industries, which are outstanding for
 more than 30 days at the Balance Sheet date. Such information regarding
 Small Scale Undertaking has been determined to the extent such parties
 have been identified on the basis of information available with the
 company and relied upon by the Auditors.
 
 K Taxes on income
 
 The company accumulates huge losses as on 31st March 2011. Even though
 there is virtual certainty in making profit in the future years in the
 view of management, as a matter of prudence the deferred tax assets are
 not recognized in the books of account and liability provided for in
 the earlier years have not been reversed.
 
 Provisions for interest on taxes due is not provided for since the
 excess provisions created in earlier years are sufficient to cover the
 same.
 
 L Quantitative details
 
 The company is primarily engaged in the development and maintenance of
 computer software. The production and sale of such software cannot be
 expressed in generic unit. Hence it is not possible to give the
 quantitative details of sales and certain information as required under
 paragraphs 3, 4C and 4D of part II of Schedule VI to the Companies Act,
 1956.
 
 M Going Concern
 
 The financial statements of the company have been prepared on a going
 concern basis, which contemplates the realization of assets and
 discharge of liabilities in the normal course of business for the
 foreseeable future. The company has reported a net loss of Rs. 108.87
 Crores for the year ended 31st March 2011. The management has addressed
 the criticality of the issue in the company and has initiated various
 steps, including but not limited to negotiating the terms of the
 existing debt with the bankers of the company and opting for one time
 settlement and other significant business proposals. The management is
 confident of successfully completing these initiatives and thereby
 commences profitable business operations into the foreseeable future.