1. The above results were reviewed by the Audit Committee and taken on record by Board of Directors at their meeting held on April 28, 2009.

2. The Central Government, vide notification dated March 31, 2009, has amended Accounting Standard AS 11 īThe Effects of Changes in Foreign Exchange Ratesī, notified under the Companies (Accounting Standard) Rules, 2006. During the year ended March 31, 2009, the company has early adopted Accounting Standard AS 30 Financial instruments: Recognition and Measurement, pursuant to announcement made by Institute of Chartered Accountants of India (ICAI). The company continues to follow AS 30 and consequently there is no change in its accounting.

3. In January 2009, a wholly owned subsidiary of the Company, RevIT transferred its entire shareholding of 1,000 shares in its wholly-owned subsidiary Sherpa, USA to the Company for a consideration of Rs 559.30 lacs. The Company subsequently merged Sherpa with its wholly-owned subsidiary Firstsource Solutions USA, Inc. effective February 01, 2009. Consequent to the merger, the Company was allotted 21,641,000 shares at USD 0.001 each in Firstsource Solutions USA, Inc. in exchange for the shares held by it in Sherpa. The Company also merged Business Process Management, Inc (BPM) along with its step down subsidiaries with Firstsource Solutions USA, Inc. effective February 01, 2009.

4. During the quarter, pursuant to the RBI notification, the Company has bought back and cancelled 497 FCCBs of the face value of USD 100,000 each aggregating USD 49.7 million, under the Automatic Route. The Company has recognised a net gain of Rs 6349.80 lacs on the said buyback.

5. Other income includes loss of Rs 2362.02 lacs for the quarter and year ended March 31, 2009 on account of undesignated derivative instruments.

6. Salary paid/ payable to the Managing Director and CEO and the Joint Managing Director and COO is in excess of the limits specified in Schedule XIII of the Companies Act, 1956. The Company has made an application seeking approval from Central Government for payment of managerial remuneration in excess of limits specified under the Companies Act, 1956 for the financial year ended March 31, 2009. The said approval is awaited. This has been a matter of reference in report of statutory auditors.

Ananda Mukerji
Managing Director & CEO