EPS is Basic

1. The above audited quarterly and yearly results were taken on record by the Board of Directors at its meeting held on May 05, 2005. There are no qualifications in the auditors` report issued for these periods.

2. The Board of Directors in their meeting held on May 05, 2005, recommended a dividend @ 50% (Rs 2.50 per share on an equity share of face value of Rs 5/-) subject to the approval of member in the Annual General Meeting.

3. The Company has received a letter from the promoter, Flextronics Sales & Marketing (L-A) Ltd., wherein they have proposed to voluntarily delist the shares of the Company from the Stock Exchange, Mumbai and National Stock Exchange of India Ltd. under the provisions of the Securities and Exchange Board of India (Delisting of Securities) Guidelines, 2003. The Board in its meeting held on May 05, 2005 has noted the above and have proposed to call an extra ordinary general meeting for seeking the approval of shareholders for delisting the shares of the Company.

4. The Shareholders of the Company in their meeting held on January 24, 2005 approved the change of name of the Company from Hughes Software Systems Ltd to Flextronic Software Systems Ltd. Consequently, the Registrar of Companies, NCT of Delhi & Haryana approved the change of name and accordingly issued a fresh Certificate of Incorporation dated February 18, 2005.

5. Pursuant to the order of the Hon`ble High Court of Delhi, meetings of the shareholders and unsecured creditors of the Company were convened on January 24, 2005 wherein the resolution for merger of Tenet Technologies Pvt Ltd with the Company was approved with the requisite majority. The second motion petition in this regard has been filed and the Hon`ble High Court of Delhi has fixed May 10, 2005 as the date of next hearing.

6. During the current quarter & year ended March 31, 2005, corresponding quarter and the year ended March 31, 2004 the Company issued 238,925, 328,691, 279,068 and 369,963 equity shares respectively to eligible employees pursuant to exercise of stock options by them under the Employees Stock Offer Plans of the Company.

7. The break up of Exports and Domestic sales for the current quarter and the year ended March 31, 2005 versus corresponding quarter and year ended March 31, 2004 is as under:

For the year ended March 31, 2005

Export Sales Rs 4425 million
Domestic Sales Rs 336 million

Total Rs 4761 million

For the year ended March 31, 2004

Export Sales Rs 3379 million
Domestic Sales Rs 204 million

Total Rs 3583 million

8. The break up of revenue mix (in percentage) for the current quarter and the year ended March 31, 2005 versus corresponding quarter and year ended March 31, 2004 is as under:

For the year ended March 31, 2005

Services 81%
Product 15%
BPO 4%

For the year ended March 31, 2004

Services 79%
Product 16%
BPO 5%