Notes to Accounts of Teledata Technology Solutions Ltd.

Mar 31, 2010

1) Scheme of arrangement

Pursuant to the Composite Scheme of Arrangement(the Scheme) under Section 391 to 394 of the Companies Act, 1956, as approved by the Honarable High Court of Judicature at Madras vide its Order dated 12th October, 2007, the Teledata Informatcis Ltd(TDIL) had demerged and transferred its Technology related business to Teledata Technology Solutions Limited(TTSL), effective from the appointed dated i.e., 1st November, 2006. In view of the Order dated 12th October, 2007, the operations from the appointed date of demerger till the balance sheet date have resulted in receivable from TDIL is Rs. 105315.26 Thousands.

2) Global Depositary Receipts

b) The difference in unutilised funds is due to forex fluctuations on reinstatment of deposit account and current account at the year end foreign exchange rates. Resulting exchange difference araising on conversion has beed recongnised as loss during the year ended 31st March, 2010

c) Further to Note No.2(a) above, the company has not filed necessary forms with Registrar of the Companies for increase in Authorised Share Capital. However, the management has taken steps to regularise the same during the current year.

d) Interest Accrued of Rs.9,27,05 not accounted due to reversal of interest by bank in September, 2010. Taking events occuring after balance sheet date no interest is accrued for March 10 accounts

3) Secured Loans

i) The Credit facilities of the bankare primarily secured by current assets of the company

ii) The credit facilities of the bank are further secured by corporate guarantees of two Body Corporates, collateral of shares pledged of one Body corporate.

4) Foreign Exchange Transactions

All Monetary items are translated at the year-end foreign exchange rates, except GDR proceeds kept with Euram Bank fixed deposit account, Austria. In this case average rate from the date of the GDR Offer Document i.e 30.01.2010 to the year ended 31.3.10 has been considered, which resulted in a forex loss of Rs. 17,477.77 thousands

5) Provision for Tax

The loss has resulted in a deferred tax asset of Rs.5201.65 thousands as follows. This has been not been accounted in view of Prudence as per accounting standard 22 issued by Institurteof Chartered Accountants of India. Had this amount been taken loss for the year will decrease by Rs. 5201.65 thousands and the Deferred tax asset will be created for Rs. 5201.65 thousands. (The deferred tax asset of Rs. 1768.85 thousands has not been recognized last year in view of prudence)

6) Employee Benefits

The Company has not adopted Accounting Standard 15, Employee Benefits (revised 2005), issued by the Institute of Chartered Accountants of India [the revised AS 15]. The valuation of employee benefits have been done on actual basis as against the actuarial valuation on projected unit cost basis. The Company is taking steps to get the actuarial valuation done.

7)Contigent Liabilities:

(Rs. in thousands)

Particulars of the Company 2009-10 2008-09

Corporate Guarantee given to Teledata Informatics Ltd 3,100,000 3,100,000

Corporate Guarantee given to Teledata Marine Solutions Ltd 2,000,000 2,000,000 Corporate Guarantee given to Baytech Inc B V I, wholly owned subsidiary of Teledata Informatics Ltd 3,611,200 4,068,800

TOTAL 8,711,200 9,168,800

8) Net Profit under Sec 349 of the companies Act.

The Company is of the opinion that the computation of net profit under section 349 of the Companies Act, 1956 is not required to be made as no commission is paid / payable to the Directors for the year ended 31st March, 2010.

9)Loan and Dues From /To Related Parties & Associates.

The company has advanced interest free loan to parties covered under section 301 other than wholly owned subsidiaries. The Company is in the process of regularization of the same as per the provision of Section 372A of the Companies Act, 1956.

10 Investments/Advances to Subsiadiries:

a) Due from Subsidiaries includes Purchase consideration receivable from Bitech International LLC, a wholly owned subsidiary for Rs.55658 thousands (PY Rs.48519 thousands, outstanding balance as on 31.3.10 receivable from Bitech is after considering Rs.7139 thousands as gain on reinstatement)towards transfer of investment in Transworld Informations Systems Inc., as per agreement dated 27th December, 2007 payable in 3 instalments, 31 st December, 2009 being the final instalments. Total of the consideration receivable is still due from the said subsidiary. In this regard, a supplement agreement has been entered by Teledata Technology Solutions Limited and Bitech International LLC on 24th December 2009According to which the same is repayable in three quarterly instalments starting from 24th June,2011.

b) Amount advanced Rs. 17786.60 thousands to Soltius Infotech India Private Limited, a subsidiary of Bitech International LLC, Dubai, which is not in operation. But the management is taking necessary steps to recover the said amount.

11) Segment Reporting-Accounting standard 17

i) Since the Company is engaged in Software consultancy & services, Primary Segment Information by Business Segment is not applicable

12) In accordance with the notification no. GSR 719 (E) dt 16.11.2007, issued by the Ministry of Corporate affairs, certain disclosures are required to be made relating to Micro, Small and Medium enterprises as defined under the Micro, Small and Medium Development Act, 2006. The company is in the process of compiling the relevant information from parties about their coverage under the said act. Since the relevant information is not readily available no disclosures have been made in the accounts. However in view of the management, and relied upon by the auditors, the impact of interest, if any that may be payable in accordance with the provisions of this act is not expected to be material.

13) The Company is taking necessary steps for the allotment of shares in subsidiary companies which is pending over the years asSAMPA-Bitech

14) Balances in sundry debtors, loans and advances and other current assets are subject to confirmation. The company had initiated the process of obtaining of confirmations during the year and partially obtained confirmations from third parties for the balances at the end of the year. In the opinion of the management the balances outstanding are good and recoverable and no provision is required in respect of the same.

15) Previous year figures have been regrouped or reclassified wherever considered necessary to bring them in line with current yearfigures.