Other Information: For the year ended March 31, 2009 Staff Cost : Rs 2628.119 million Items exceeding 10% of aggregate expenditure - Details of Other Income : Miscellaneous income : Rs 0.786 million Dividend received on current investments (non trade): Rs 12.577 million Net gain on sale of current investments (non trade): Nil Interest income on Bank Deposits (Gross): Rs 12.288 million Write back of advance from customer : Nil Other interest income (Interest on Income Tax refund) : Rs 1.999 million Interest on Loan to subsidiary companies : Rs 1.163 million Total : Rs 28.813 million 1. The above audited results were taken on record by the Board of Directors of the Company at its meeting held on June 29, 2009. 2. The consolidated results are based on the consolidated financial statements which have been prepared by the Company’s management in accordance with the requirements of Accounting Standard (AS) 21 – Consolidated Financial Statements and Accounting Standard (AS) 27 - Financial Reporting of Interests in Joint Ventures issued by the Institute of Chartered Accountants of India. 3. The Company believes that presenting consolidated financial results has greater value, since it depicts the total financial position and results of operations of the parent company and its subsidiaries as if they were one economic unit. Clause 41 of the amended listing agreement requires companies to publish only consolidated financial results in the newspapers and this choice has been exercised during the first quarter of the financial year. The Company, in compliance with this provision, has opted to publish the consolidated financial results. The standalone financial results will, however, be made available to the Stock Exchanges where the company’s securities are listed and will also be posted on the Company’s website www.sasken.com 4. Regarding Subsidiaries and Joint-Venture Companies: The results of the following companies are consolidated in the above results: Sasken Network Engineering Ltd. (SNEL) and its subsidiary Sasken Network Solutions Inc, USA (SNSI), Sasken Communication Technologies Mexico S.A. De C.V. (Sasken Mexico), Sasken Communication Technologies (Shanghai) Co. Ltd. (Sasken China), Sasken Japan KK (Sasken Japan), Sasken Communication Technologies Oy, Finland (Sasken Oy) and its subsidiary Sasken Finland Oy (Sasken Finland), Sasken Inc, USA - all wholly owned subsidiaries; TACO Sasken Automotive Electronics Ltd. (TSAE) and ConnectM Technology Solutions Pvt. Ltd.(ConnectM) - Joint-Venture companies. 5. The Board of Directors of TSAE has at the meeting held on January 9, 2009 decided to close down the operations of the company. Accordingly the financial statements of TSAE have not been prepared under the going concern assumption and all assets and liabilities have been stated at realizable values. 6. The financial results of Sasken Inc, USA for the year ended March 31, 2009 are unaudited. 7. Sasken Japan and Sasken China have begun operations in the first quarter while SNSI has begun operations in the second quarter of the financial year. 8. The Board of Directors has recommended a dividend of Rs.4/- per equity share of Rs.10 each for the financial year ended March 31, 2009 amounting to Rs.1,084.44 lakhs. This is subject to approval of the Shareholders. 9. During the current quarter, the Company made the following Investments in its Subsidiaries and Joint Ventures: ----------------------------------------------------------------------------------------------------------------- Investee Company Details Amount(Rs in million)----------------------------------------------------------------------------------------------------------------------Sasken Communication Technologies Equity Share Capital 35.514 (Shanghai) Co. Ltd., ChinaSasken Japan KK Equity Share Capital 3.273 ConnectM Technology Solutions Pvt. Ltd Equity Share Capital 49.444TACO Sasken Automotive Electronics Ltd Equity Share Capital 13.500TACO Sasken Automotive Electronics Ltd Redeemable Preference Shares 13.000TACO Sasken Automotive Electronics Ltd Share Application Money 10.500---------------------------------------------------------------------------------------------------------------------------- 10. As at the end of the year, the following amounts are due from/payable to subsidiaries: (Rs in million) ----------------------------------------------------------------------------------------------------------------- Company Advance (Net) Loans----------------------------------------------------------------------------------------------------------------------Sasken Network Engineering Ltd 65.330 13.000Sasken Communication Technologies Mexico S.A. De C.V 62.920 15.401Sasken Communication Technologies Oy 12.063 - Sasken Finland Oy (54.884) -Sasken Communication Technologies (Shanghai) Ltd 8.195 -Sasken Inc 0.917 -Sasken Network Solutions Inc 29.841 -Sasken Japan 11.645 ----------------------------------------------------------------------------------------------------------------------------- 11. Pursuant to The Institute of Chartered Accountants of India’s (ICAI) Announcement dated March 29, 2008 on “Accounting for Derivatives”, the Group has, based on the principles of prudence enunciated in Accounting Standard-1 on “Disclosure of Accounting Policies”,recognized mark to market losses on derivative contracts outstanding, (forward contracts for highly probable collections), as on March 31, 2009 to the extent the losses are not offset by the fair value gain on the underlying hedge items. For the purpose of arriving at the net losses, the Group has considered foreign currency derivative contracts as one portfolio and accordingly, loss amounting to Rs.1,239.30 lakhs has been recognized in profit and loss account during the year ended March 31, 2009. 12. Buy-Back of Equity Shares In terms of decision of the Board of Directors dated April 18, 2008 and in accordance with the provisions of the Companies Act, 1956 and the Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998, the Company offered to buy-back its equity shares of face value of Rs.10/- each, upto a maximum amount of Rs.4,000 lakhs at a maximum price of Rs.260/- per share from open market. The Company commenced the buy-back on September 15, 2008 and concluded it on November 3, 2008. The Company has bought back 1,449,742 equity shares at an average price of Rs.106.80 per share, utilizing a sum of Rs.1,548.37 lakhs and concluded the buy-back on November 3, 2008. The amount paid towards buy-back of shares, in excess of the face value, has been appropriated out of General Reserve. In terms of the provisions of Section 77A of the Companies Act, 1956 and SEBI (Buy Back of Securities) Regulations 1998, the Company has extinguished the above mentioned 1,449,742 shares as on December 31, 2008 and has created Capital Redemption Reserve of Rs.144.97 lakhs towards the face value of 1,449,742 shares of Rs.10/- each by way of appropriation against General Reserve. 13. Scheme of Arrangement The Board of Directors, at its meeting held on December 15, 2008 resolved to approach the High Court of Karnataka, Bangalore to create a Business Restructuring Reserve to be carved out from Securities Premium account in terms of a Scheme under Sec 391 / 394 of the Companies Act, whereby inter-alia, the losses on impairment of capitalized software products will be adjusted against the said Reserve. The Scheme has been approved by the shareholders and creditors and has been notified to the stock exchanges. Pending approval of the scheme by the Honourable High Court of Karnataka, the Company has provided for impairment loss of Rs. 1,519.70 lakhs, as exceptional item, in respect of capitalized software products, which is subject to reversal in terms of the scheme after its becoming effective in law. As a result, the qualification in the auditors’ report for the previous quarter has been resolved. 14. A provision of Rs.225.85 lakhs has been made, during the year, in respect of receivables from certain entities of a customer which have filed for protection against bankruptcy proceedings. Out of the total amount outstanding as at March 31, 2009, from various legal entities of the customer amounting to Rs.2,390.53 lakhs, the company has received part payment subsequent to the balance sheet date. The remaining amount due from the legal entities that have filed for protection is covered by credit insurance. 15. Previous year figures have been re-grouped/re-arranged, wherever necessary to conform to the current year presentation. Rajiv C Mody Chairman & Managing Director