1. General:
 
 a) Figures have been rounded off to the nearest rupee.
 
 b) Previous year figures have been regrouped, reclassified and recast
 wherever necessary to confirm to current years classification.
 
 2. Managerial Remuneration:
 
 a) Managerial Remuneration paid to the Chairman & Managing Director,
 Wholetime Directors and non-wholetime Directors
 
                                              2005-06            2004-05
                                                  Rs.                Rs.
 
 Remuneration and allowances to:
 
 - Chairman & Managing Director              3,61,613          11,40,000
 
 - Managing Director                        15,00,000          17,68,010
 
 Commission to:
 
 - Non-wholetime Directors                  10,00,000           7,50,000
 
 b) Computation of net profit in accordance with Section 349 of the
 Companies Act, 1956 and commission payable to non-wholetime Directors:
 
                                              2005-06            2004-05
                                                  Rs.                Rs.
 
 Net Profit after tax as
 per Profit and Loss Account             19,10,20,265       28,33,59,561
 
 Add: Wholetime Directors remuneration      18,61,613          29,08,010
 
 Directors Sitting fees                      1,90,000           1,80,000
 
 Commission to non-wholetime Directors      10,00,000           7,50,000
 
 Provision for Taxation                   2,57,23,523        1,55,00,241
 
 Profit on sale of Fixed Assets              7,29,777           1,12,630
 
                                         22,05,25,178       30,28,10,442
 
 Less: Profit on sale of Fixed Assets        7,29,777           1,12,630
 
 Net Profit in accordance with Section   21,97.95,401       30,26,97,812
 of the Companies Act, 1956
 
 Commission payable to non-wholetime Directors:
 
 - Maximum allowed as per
 Companies Act, 1956 @ 1%                   21,97,954          30,26,978
 
 - Maximum as approved by the shareholders
 Rs. 2,50,000 per Director
 
 - Commission approved by the Board
 for 4 (P.Y. 3) Directors                   10,00,000           7,50,000
 
 3. Auditors Remuneration:
 
                                              2005-06            2004-05
                                                  Rs.                Rs.
 
 For Statutory Audit                         6,73,440           6,61,200
 
 For Tax Audits                              3,36,720           3,30,600
 
 Out of pocket expenses                        70,318             56,500
 
 For other Services                          4.42.840           4,38,600
 
 4. The Company has entered into a agreement of sale with Andhra Pradesh
 Industrial Infrastructure Corporation Limited to acquire land
 admeasuring 15.61 acres at Nanakramguda, Hyderabad. As per the
 agreement the Company has paid the required amount towards purchase of
 the land, Stamp Duty, other expenditure etc., and the same has been
 included under land and land development, On satisfaction of certain
 terms and conditions laid down in the agreement, the deed of conveyance
 shall be executed infavour of the Company after payment of differential
 stamp duty, if any. Non-compliance of certain terms and conditions
 would attract withdrawal of rebate which may increase the cost of land.
 
 5. Foreign Exchange Earnings & outgo:
 
                                              2005-06            2004-05
                                                  Rs.                Rs.
 
 Export Sales                           160.24,65,678      188,18,32,709
 
 Capital goods                           13.56,62,422       14,04,94,987
 
 Foreign Travelling                       3,57,84,845        4,36,88,268
 
 Dividend                                    1,30,750           1,93,500
 
 Other expenditure including support services & On-site software
 development 75,38,32,344 86,41,22,297
 
 6. Contingent liabilities:
 
 Guarantees issued in favour of various authorities for availing
 exemptions and rebate amounting to Rs. 7,48,54,000 (2004-05 Rs.
 3,03,46,000)
 
 7. Taxation:
 
 Current tax:
 
 Provision for current income tax is made on the basis of the assessable
 income under the income tax act, 1961 considering non receipt of export
 proceeds in time.
 
 Deferred Tax:
 
 Most of the operations of the Company are conducted through 100% Export
 Oriented Unit (EOU). As per the laws and other circumstances existing
 as on the date of balance sheet and in view of the exemptions available
 to the Company under the provisions of income tax act, 1961, there is
 no effect to the Company on account of computation of deferred tax as
 per the relevant accounting standard (AS 22) issued by the Institute of
 Chartered Accountants of India.
 
 8. Obligation on Long-term non-cancellable operating leases:
 
 The Company has entered into operating lease agreements. The lease
 rentals during the year and obligation on long-term non-cancellable
 operating lease as per agreements are as follows.
 
                                                            Rs. in lakhs
                                              2005-06            2004-05
 
 Rent                                          183.61             234.74
 Obligation on non-cancelable lease:
 
 Not later than one year                        32.02              30.49
 
 Later than one year and
 not later than five years                     144.89             137.99
 
 Later than five years                          76.32             115.24
 
 9. Related party Disclosures:
 
 Related parties with whom transactions have taken place during the
 year:
 
 Directors:
 
 * D.V.S. Raju* * Sudhakar R. Guntur * S. Sadagopan * V.S. Raju * Anil
 K. Sood * J. srihari Raju
 
 * During the year resigned as Chairman and Managing Director
 
 Key Management personnel:
 
 * K. Harnath* * V. Krishnan * D. Gnaneshwar* * V. Thiyagarajan * G.S.V.
 Ranga * Asish Dhariwal*
 
 * B. Sudheer Kumar * K. Satya Prakash * N.V.G. Krishna Kumar *
 Lalatendu Mishra* * Vikas V. Pathak*
 
 * left the Company during the year
 
 Transaction with related parties :
 
                                              2005-06            2004-05
                                                  Rs.                Rs.
 
 Remuneration and other allowances to
 Directors and Key Management personnel   1,68,60,730        1,65,21,318
 
 Sitting fees and commission to
 Non-Wholetime Directors                    11,90,000           9,30,000
 
 10. Segment reporting:
 
 The Company is a focused IT Company operating in IT Services and BPO
 segments.
 
 IT Services, the Company is mainly operating in Software development
 and services. BPO, providing Business Process Outsourcing covering
 transaction processing, Email support, tech support, help desk and in
 bound market research.
 
 Accordingly, the primary segment reporting of the Company is on the
 basis of IT and BPO services to its worldwide customers operating in
 different industries.
 
 Secondary segmental reporting is performed on the basis of the
 geographical location of customers.
 
                                                            Rs. In Lakhs
 Business Segment:                            Year ended March 31st 2006
                                         IT Services      BPO      Total
 
 Segment Revenue                            15705.54   319.12   16024.66
 
 Segment result Profit/(loss)                4231.52 (393.54)    3837.98
 
 Unallocable expenditure net of
 unallocable income                                -        -    1670.54
 
 Profit Before Tax                                 -        -    2167.44
 
 Rs. In Lakhs
 
 Business Segment:                            Year ended March 31st 2005
                                       IT Services      BPO        Total
 
 Segment Revenue                          18542.96   275.37     18818.33
 
 Segment result Profit/(Loss)              4955,48 (520.79)      4434.69
 
 Unallocable expenditure net of
 unallocable income                               -       -      1446.09
 
 Profit Before Tax                                -       -      2988.60
 
 Geographic Segment:
 
 Revenue attributable to location of customers is as follows:
 
 Geographic Location: Revenue from external customers
 
                                                            Rs. in lakhs
                                              2005-06            2004-05
 
 North America                               12663.77           13892.68
 
 Europe                                       2601.96            3837.27
 
 Rest of the World                             758.93            1088.38
 
 Total                                       16024.66           18818.33
 
 11. Quantitative details:
 
 The Company is engaged in the business of development of Computer
 Software. The production and sale of such software is not capable of
 being expressed in any generic unit. Hence, it is not possible to give
 the quantitative details of such sale and the information required
 under paragraphs 3, 4C and 4D of part II of Schedule VI of the
 Companies Act, 1956.