Teledata Informatics

1. Provision for Taxation:
 
 The Company is eligible for Tax Benefit under section 10B of Income Tax
 Act, 1961, accordingly the provision for tax has been computed
 considering the deduction allowable under above said section.
 
 The Company follows territorial basis of taxation and provision has
 been done in respect of the foreign branches as per law of those
 countries. The Company is availing tax exemption under Section 10B of
 Income Tax Act, 1961 in respect of its export turnover from India . The
 Company has provided Tax on domestic turnover as per its computation on
 domestic tax income or Minimum Alternative Tax (MAT) under section
 115JB whichever is higher.
 
 2. Investments /Advance to subsidiaries 6 Associates
 
 a.The Company holds directly (12.14%) and through its wholly owned
 subsidiary Baytech Inc. BVI (38.86%), aggregating 51% equity interest
 in Rainforest Trading Limited (Special Purpose Vehicle (SPV)) holding
 eSys Technologies Pte. Limited for a consideration of Rs.110.33 Crore
 (USD 25 million) and Rs. 353.06 Crore (USD 80 million) respectively.
 The Company during the year has advanced to its wholly owned subsidiary
 Baytech Inc BVI of Rs 126.13 Crore towards repayment of loans taken for
 acquisition of esys Technologies Pte Limited. Esys Technologies Pte
 Limited being the substance of Rainforest Trading Limited is pending
 for audit for last two years in respect of which the management has
 initiated proper actions for getting the same audited. The Management
 is of the opinion that the investments in eSys Technologies Pte Limited
 through Rainforest trading Limited Rs 110.33 Crore and amount advanced
 to its wholly owned subsidiary Baytech Inc BVI of Rs 126.13 Crore are
 good and are of the value stated.
 
 The Company is yet to receive share certificates for equity shares in
 respect of its investment of Rs 110.33 Crore (USD 25 Million) in its
 name, which currently has been held fully by Baytech Inc. BVI its
 wholly owned Subsidiary. In the opinion of the management the same are
 held by Baytech Inc as nominee share holders towards beneficial holding
 of company in respect of which necessary declaration has been taken
 from Baytech Inc.
 
 3 a.The Company during the previous year ending 31st March 2007
 allotted 96,00,000 Equity shares of Rs.10 each at Rs.26 per share
 including a premium of Rs.16 and 81,00,000 Equity Shares of Rs.10. each
 at Rs.37 per share including a premium of Rs.27 on preferential
 allotment basis against the acquisition of agricultural land valuing at
 Rs.4.57 Crore by way of registered sale deed along with the plantation
 of trees and agricultural infrastructure valuing Rs.56.36 Crore as per
 the valuation by approved valuer.
 
 b.ln the opinion of the management the plantation is subsisting as on
 the date of balance sheet and is of the value stated and no impairment
 is deemed necessary. The valuation of the plantation being technical
 matter the auditors have relied on the representation of the
 management.
 
 4.Segment Reporting
 
 As per Accounting Standard 17 - Segment Reporting segment information
 has been provided in the Notes to accounts of Consolidated Financial
 Statements.
 
 5.  The management is currently in the process of identifying
 enterprises which have provided goods and services to the company and
 which qualify under the definition of Medium and Small Enterprises as
 defined under Micro, Small and Medium Enterprises Development Act,
 2006. Accordingly, the disclosure in respect of the amounts payable to
 such medium and small enterprises as at 31st March, 2008 has not been
 made in the financial statements.
 
 6.  Pursuant to the scheme of arrangement the company has demerged its
 marine division and technology division to TMSL and TTSL respectively
 w.e.f. 01st November, 2006, hence previous year figures are not
 comparable.
 
 7.The previous year figures have been reworked, regrouped, rearranged
 and reclassified wherever necessary.