A) Consolidated Reporting
The consolidated financial data includes the results of the Company´s wholly owned subsidiaries, Blue Star Infotech America, Inc. and Blue Star Infotech (UK) Limited.

B) General
i) The above results were reviewed by the Audit Committee and were thereafter approved by the Board of Directors of the Company at their respective meetings held on May 12, 2009.

ii) Pursuant to the Announcement ´Accounting for Derivatives´ by the Institute of Chartered Accountants of India, the Company has adopted Accounting Standard 30, Financial Instruments: Recognition and Measurement, prescribed by the Institute of Chartered Accountants of India, during the quarter ended September 30, 2008. Consequently, outstanding forward contracts for which there are no underlying account balances have been treated as highly probable forecast transactions based on historic trends. Accordingly, losses arising on ´ mark to market´ of such open forward contracts have been accumulated in ´Hedging Reserve Account´. The net losses transferred out of Hedging Reserve Account during the quarter ended March 31, 2009 amounts to Rs.121.78 Lakhs ( Rs. Nil for the quarter ended March 31, 2008).The net losses transferred to Hedging Reserve Account for the year ended March 31, 2009 amounts to Rs. 279.22 Lakhs (Rs.Nil for year ended March 31, 2008 ). The Company uses forward contracts as economic hedges and not for trading or speculative purposes.

iii) In accordance with the requirements of Clause 41 of the Listing Agreement with the Stock Exchanges, the Statutory Auditors have performed an audit of the stand-alone and consolidated financial results of Blue Star Infotech Limited for the year ended March 31, 2009. There are no qualifications in the audit report issued for the said year.

iv) Other Income for the quarter ended March 31, 2009 includes rental income on lease of office premises - Rs. 16.46 Lakhs (Rs.37.70 Lakhs for the quarter ended March 31, 2008). Other Income for the year ended March 31, 2009 includes rental income on lease of office premises - Rs. 130.42 Lakhs ( Rs. 189.30 Lakhs for year ended March 31,2008 ).

v) The Company considers its entire business / geographical operations as a single segment.

vi) The Board has proposed a dividend of Rs. 5 per share.

Suneel M. Advani
Chairman and Managing Director