Oracle Financial Services Software PTE LTD Directors’ Report To the Members, Your Directors are pleased to present Annual Report on the business and operations of your company, together with the accounts for the year ended 31st March, 2010.

FINANCIAL PERFORMANCE

Total Income Profit/(Loss) during the period before Depreciation and tax Depreciation Provision for Tax Net Profit/(Loss) during the period carried over to Balance Sheet

(Rs. in lacs) For the year ended March 31, 2010 2009 55,372 52,986 4,240 4,733

(100)

(94)

(1378)

(1486)

2,762

3,153

OPERATIONS • • •

The amount shown as Total Income consists of Product licenses and related activities, IT solutions and consulting services The company’s revenue showed a growth of 4.50%. The company’s Gross Block (Fixed Assets) increased by 6.41% from Rs 528 Lacs to Rs. 561 Lacs.

DIVIDEND Your directors do not recommend a dividend for the year ended 31st March, 2010.

CAPITAL The Issued, Paid-up & Subscribed Capital of the Company is INR 66.26 lakhs

Your company is a wholly owned subsidiary of Oracle Financial Services Software LTD. The Company has one subsidiary company called Oracle Financial Services Consulting Pte. Ltd. which is a wholly owned subsidiary.

BUSINESS OVERVIEW: After a long drawn Global Slowdown which impacted almost every line of business world-wide, we seem to be seeing some signs of recovery, specially in India. While the US and European markets continue to be bearish with little or no growth, there are signs of recovery in some of the Asian markets centered around China and India. The global meltdown did slow down our company’s growth, as most of the prospects / company’s were not ready to invest in any new venture, upgrade its IT environment; This resulted in a negative growth in both the revenues and margins of the company.

FIXED DEPOSITS During the financial year 2009-10, the Company has not accepted any fixed deposits within the meaning of Section 58 A of the Companies Act, 1956, and as such no amount of principal or interest was outstanding as on the date of the Balance Sheet.

DIRECTORS RESPONSIBILITY STATEMENT: As required under Section 217 of the Companies Act, 1956 the Directors hereby confirm that: i)

In the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

ii)

The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at the end of the financial year and of the profit of the Company for that period;

iii)

The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this act for safeguarding the assets of the

Company and for preventing and detecting fraud and other irregularities; iv)

The Directors have prepared the annual accounts on a ‘going concern’ basis.

ACKNOWLEDGEMENTS: Your Directors wish to thank its strategic alliance partners, service providers, hardware and other government and regulatory authorities for their support, guidance and co-operation. Your Directors also wish to place on record their sincere appreciation of the dedicated efforts put in by the employees of the Company during the year.

For and on behalf of the Board

Arunachalam Srinivasan CEO May 7, 2010

Oracle Financial Services Software Pte Ltd BALANCE SHEET AS AT MARCH 31, 2010 (All amounts in thousands of Indian Rupees)

March 31, 2010

March 31, 2009

SOURCES OF FUNDS Shareholders' funds Share capital

1

6,626

6,626

Reserves and surplus

2

1,431,682

1,155,473

3

10,130

10,120

1,448,438

1,172,219

56,130 42,090 14,040

52,751 32,478 20,273

Deferred tax liability

APPLICATION OF FUNDS Fixed assets Cost Less: Accumulated depreciation and amortisation Net book value

4

Investments

5

46,366

46,366

Deferred tax asset

3

3,047

-

Current assets, loans and advances Sundry debtors Cash and bank balances Other current assets Loans and advances

6

Less: Current liabilities and provisions Current liabilities Provisions

7

Net current assets

Notes to accounts

6,932,869 1,850,921 400,846 32,246 9,216,882

7,348,818 1,666,091 359,010 79,901 9,453,820

7,697,372 134,525 7,831,897

8,245,834 102,405 8,348,240

1,384,985

1,105,580

1,448,438

1,172,219

14

The schedules referred to above and notes to accounts form an integral part of the balance sheet.

Oracle Financial Services Software Pte Ltd PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31,2010 (All amounts in thousands of Indian Rupees)

March 31, 2010

Revenue Cost of revenue Gross profit Operating expenses Selling and marketing expenses General and administrative expenses Depreciation and amortisation Income from operations Non-operating income (expense) Interest income Other income (expenses) , net Income before provision for taxes Provision for taxes Current tax Deferred tax Net income for the year Profit and loss account, beginning of the year Surplus carried to Balance Sheet

Notes to accounts

March 31, 2009

8 9

5,537,161 (4,512,810) 1,024,352

5,298,615 (4,268,413) 1,030,202

10 11

(555,136) (73,612) (9,951) 385,652

(620,866) (58,004) (9,361) 341,971

12 13

3,661 24,682 413,995

6,446 115,451 463,869

(140,371) 2,585 276,209 1,155,473 1,431,682

(143,810) (4,759) 315,300 840,173 1,155,473

14

The schedules referred to above and notes to accounts form an integral part of the profit and loss account.

Oracle Financial Services Software Pte Ltd

Schedules annexed to and forming part of the accounts as at March 31, 2010 (All amounts in thousands of Indian Rupees, except share data)

As at

As at

March 31, 2010

March 31, 2009

Schedule 1: Share capital Issued, subscribed and fully paid-up: 250,000 (March 31, 2009 - 250,000 ) equity shares of SGD 1 each

6,626

6,626

1,431,682 1,431,682

1,155,473 1,155,473

Schedule 2: Reserves and surplus Profit and loss account

Schedule 3: Deferred tax asset (liability) Deferred tax asset Difference between book and tax depreciation Deferred tax liability Difference between book and tax depreciation

3,047 3,047

-

(10,130) (10,130) (7,084)

(10,120) (10,120) (10,120)

Oracle Financial Services Software Pte Ltd Schedules annexed to and forming part of the accounts as at March 31, 2010 (All amounts in thousands of Indian Rupees)

Schedule 4: Fixed assets

Particulars

As at Apr 01, 2009

Gross block Additions Sale/ deletions

Tangible assets: Computer equipments Owned Air conditioners Office equipments Furniture and fixtures Owned

31,320 310 7,536 13,585

3,811 61 84

116 459

Total

52,750

3,955

575

Depreciation, amortisation and Impairment Net book value As at As at For the Sale/ As at As at As at March 31, 2010 Apr 01, 2009 year deletions March 31, 2010 March 31, 2010 Mar 31, 2009

35,131 310 7,480 13,209

25,114 204 2,311 4,849

6,087 62 1,188 2,613

61 279

56,130

32,478

9,951

339

31,202 267 3,439

3,930 43 4,042

6,206 106 5,225

7,183

6,026

8,736

42,090

14,041

20,272

Oracle Financial Services Software Pte Ltd Schedules annexed to and forming part of the accounts as at March 31, 2010 (All amounts in thousands of Indian Rupees)

As at

As at

March 31, 2010

March 31, 2009

Schedule 5: Investments Long term investments (at cost) In wholly owned subsidiaries (unquoted) Oracle Financial Services Consulting Pte Limited

46,366

46,366

46,366

46,366

Schedule 6: Current assets, loans and advances a. Sundry debtors (unsecured) Debts outstanding for a period exceeding six months: Considered good Considered doubtful Other debts - considered good Less: Provision for doubtful debts

115,754 115,754 6,932,869 7,048,623 (115,754) 6,932,869

100,875 100,875 7,348,818 7,449,693 (100,875) 7,348,818

b. Cash and bank balances Cash in hand Balances with non-scheduled banks: Current accounts in foreign currency Deposit account in foreign currency

702

250

696,131 1,154,087 1,850,921

756,405 909,436 1,666,091

400,846 400,846

359,010 359,010

7,067 14,314 1,332 9,532 32,245

8,220 12,920 50,665 8,096 79,901

c. Other current assets Unbilled Debtors

d. Loans and advances (unsecured, considered good) Premises and other deposits Prepaid expenses Advance tax, net of provision for taxes Other advances

Oracle Financial Services Software Pte Ltd Schedules annexed to and forming part of the accounts as at March 31, 2010 (All amounts in thousands of Indian Rupees)

As at

As at

March 31, 2010

March 31, 2009

Schedule 7: Current liabilities and provisions a. Current liabilities Accrued expenses Deferred revenues Accounts payable Advances from customers Amount due to Subsidiaries Other current liabilities

81,113 66,666 5,895 32,964 7,445,979 64,755 7,697,372

83,680 134,564 5,518 15,891 7,860,511 145,671 8,245,834

26,496 108,029 134,525

24,028 78,377 102,405

b. Provisions Provision for compensated absence Provision for taxation, net of advance tax

Oracle Financial Services Software Pte Ltd Schedules annexed to and forming part of the accounts as at March 31, 2010 (All amounts in thousands of Indian Rupees)

As at

As at

March 31, 2010

March 31, 2009

Schedule 8: Revenue Product licenses and related activities IT solutions and consulting services

3,257,204 2,279,957 5,537,161

2,795,017 2,503,598 5,298,615

4,412,417 96,700 1,575 2,116 4,512,810

4,101,132 115,581 7,424 44,276 4,268,413

408,728 13,453 64,925 6,952 26,610 901 1,294 15,230 1,115 15,928 555,136

443,503 7,458 74,461 10,298 34,752 1,102 4,648 17,295 10,087 17,260 620,866

28,960 5,975 18,972 6,458 3,513 572 9,162 73,612

13,162 4,311 16,054 1,547 4,041 598 18,292 58,004

3,656 4 3,661

6,443 3 6,446

18,769 6,031 24,682

118,490 1,334 115,451

Schedule 9: Cost of revenue Cost of Sales Employee costs Travel related expenses (net of recoveries) Professional fees

Schedule 10: Selling and marketing expenses Employee costs Professional fees Travelling expenses Advertising expenses Rent Power Repairs and Maintenance Communication expenses Provision for doubtful debts Other expenses

Schedule 11: General and administrative expenses Employee costs Professional fees Rent Communication expenses Power Travelling expenses Other expenses

Schedule 12: Interest income Interest on: Bank deposits Income tax refund

Schedule 13: Other income (expenses) Foreign exchange gain (loss), net Miscellaneous income

Oracle Financial Services Software Pte Limited Schedules annexed to and forming part of the accounts for the year ended March 31, 2010 (Amount in thousands of Indian Rupees) Schedule 14: Notes to accounts 1. Background and nature of operations Oracle Financial Services Software Pte Ltd (“OFSS” or the “Company”) was incorporated in Singapore on 16 November, 2001. OFSS is a subsidiary of Oracle Financial Services Software Limited with 100% ownership interest in the Company as at March 31, 2010. The Company is principally engaged in the business of providing information technology solutions to the financial services industry worldwide. 2. Summary of significant accounting policies (a) Basis of presentation The financial statements are prepared in accordance with accounting principles generally accepted in India under the historical cost convention on the accrual basis of accounting and complying in all material respects with the notified Accounting Standards by Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956 (‘the Act’). The financial statements have been prepared using uniform accounting policies for like transactions and other events in similar circumstances. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous years, except for the changes in accounting policies described in note (c) below. The financial statements are presented in the general format specified in Schedule VI to the Act. The significant accounting policies adopted by the Company, in respect of the financial statements are set out below. (b) Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting year end. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. (c) Change in Accounting Policy of revenue recognition for fixed price contracts In the current year, the Company has changed (with retrospective effect) it’s method of recognizing revenue pertaining to fixed price contracts. The revenue has been recognized using proportionate completion method till contract reaches 90% completion. Balance revenue is recognized at the time of receipt of customer acceptance. Hitherto, such revenue was restricted to the lower of proportionate completed efforts and acceptance received from the customer for the milestone achieved. (d) Fixed assets, depreciation and amortization Fixed assets including assets under finance lease arrangements are stated at cost less accumulated depreciation. The Company capitalizes all direct costs relating to the acquisition and installation of fixed assets. Advances paid towards the acquisition of fixed assets outstanding at each balance sheet date and the cost of fixed assets not ready to use before such date are disclosed under ‘Capital work-in-progress and advances’. Customer contracts and product Intellectual property rights (IPRs) are capitalized based on a fair value. The Company records the difference between considerations paid to acquire these contracts and the fair value of assets and liabilities acquired as goodwill.

Oracle Financial Services Software Pte Limited Schedules annexed to and forming part of the accounts for the year ended March 31, 2010 (Amount in thousands of Indian Rupees) The Company purchases certain specific use application software, which is in ready to use condition, for internal use. It is estimated that such software has a relatively short useful life, usually less than one year. The Company, therefore, charges to income the cost of acquiring such software. The Company computes, depreciation and amortization using straight-line method, at the rates specified in Schedule XIV to the Act or based on the estimated useful life of assets, whichever is higher. All other entities in the company including associate, compute depreciation and amortization using straight line method based on estimated useful life of the assets. The estimated useful life considered for depreciation of fixed assets is as follows: Asset description Tangible assets Improvement of leasehold premises Buildings Computer equipments Electrical and office equipments Furniture and fixtures Vehicles under finance lease

Intangible assets Goodwill on acquisition Customer contract Product IPR PeopleSoft ERP

Asset life (in years)

Lesser of 7 years or lease term 20 3 2-7 2-7 Lesser of 3 to5 years or lease term

3 to 5 5 5 5

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. After impairment, depreciation is provided on a revised carrying amount of assets over its remaining useful life. (e) Investments Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Trade investments refer to the investments made with the aim of enhancing the Company’s business interests in providing information technology solutions to the financial services industry world wide. Long term investments are stated at cost less provision for diminution on account of other than temporary decline in the value of the investment. Current investments are stated at lower of cost and fair value determined on an individual investment basis. (f) Revenue recognition Revenue is recognized as follows: Product licenses and related revenue:

Oracle Financial Services Software Pte Limited Schedules annexed to and forming part of the accounts for the year ended March 31, 2010 (Amount in thousands of Indian Rupees) -

-

License fees are recognised, on delivery and subsequent milestone schedule as per the terms of the contract with the end user. Implementation services are recognised as services are provided, when arrangements are on a time and material basis. Revenue for fixed price contracts is recognised using the proportionate completion method till contracts reach 90% completion. Balance revenue is recognized at the time of receipt of customer acceptance. Proportionate completion is measured based upon the efforts incurred to date in relation to the total estimated efforts to complete the contract. The Company monitors estimates of total contract revenue and cost on a routine basis throughout the delivery period. The cumulative impact of any change in estimates of the contract revenue or costs is reflected in the period in which the changes become known. In the event that a loss is anticipated on a particular contract, provision is made for the estimated loss. Customization services are recognized based on the acceptance received from the customer for the milestone achieved. Product maintenance revenue is recognised, over the period of the maintenance contract.

IT solutions and consulting services: Revenue from IT solutions and consulting services are recognised as services are provided, when arrangements are on a time and material basis. Revenue from fixed price contracts is recognized using the proportionate completion method till contracts reach 90% completion. Balance revenue is recognized at the time of receipt of customer acceptance. Proportionate completion is measured based upon the efforts incurred to date in relation to the total estimated efforts to complete the contract. The Company monitors estimates of total contract revenue and cost on a routine basis throughout the delivery period. The cumulative impact of any change in estimates of the contract revenue or costs is reflected in the period in which the changes become known. In the event that a loss is anticipated on a particular contract, provision is made for the estimated loss. Cost and revenue in excess of billing is classified as unbilled revenue while billing in excess of revenue is classified as deferred revenue. Reimbursable expenses for projects are invoiced separately to customers and although reflected as sundry debtors to the extent outstanding as at year end, are not included as revenue or expense. Interest income Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable (g) Research and development expenses for software products Research and development costs are expensed as incurred. Software product development costs are expensed as incurred until technological feasibility is established. Software product development costs incurred subsequent to the achievement of technological feasibility are not material and are expensed as incurred. (h) Provision and contingencies A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on management estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates.

Oracle Financial Services Software Pte Limited Schedules annexed to and forming part of the accounts for the year ended March 31, 2010 (Amount in thousands of Indian Rupees) (i) Cash and cash equivalents Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short terms investments with an original maturity of three months or less.

3. Commitments and contingent liabilities (a) Capital commitments Contracts remaining to be executed on capital account and not provided for (net of advances) aggregates to Nil as at March 31, 2010 (March 31, 2009 – Nil). (b) Contingent Liabilities Financial bank guarantees given to banks aggregates to Rs Nil as at March 31, 2010 (March 31, 2009 – Rs Nil).

4. Leases Where Company is lessee Operating lease The Company has taken certain office premises and residential premises for employees under operating lease, which expire at various dates through year 2022. Some of these lease agreements have a price escalation clause. Gross rental expenses for the year ended March 31, 2010 aggregated to Rs. 45,972 (March 31, 2009 – Rs 50,482). The minimum rental payments to be made in future in respect of these leases are as follows:

Not later than one year Later than one year but not later than five years Later than five years

March 31, 2010 18,598 45,649 57,061

March 31, 2009 51,246 107,156 37,950

121,308

196,352

Oracle Financial Services Software Pte Ltd Notes forming part of the accounts for the Year ended March 31, 2010 5. SEGMENT INFORMATION Business segments are defined as components of an enterprise about which separate financial information is available. This information is reviewed and evaluated regularly by the management, in deciding how to allocate resources and in assessing the performance. The Group is organized geographically and by business segment. For management purposes the Group is primarily organised on a worldwide basis into following business segments: a) Product licenses and related activities ('Products') and b) IT solutions and consulting services ('Services') The business segments are the basis on which the Group reports its primary operational information to management. Product licenses and related activities segment deals with banking software products like the FLEXCUBE suite of products, Reveleus, Microbanker and Daybreak which cater to needs of corporate, retail and investment banking as well as treasury operations and data warehousing requirements. The related activities include enhancements, implementation and maintenance activities.Product segment further comprises of casualty insurance carriers which include insurance product and process configuration, policy administration, customer management, billing and claims management. Anti-money laundering and compliance solutions are the new additions to product segment on acquisition of Mantas.

IT solutions and consulting services comprise of bespoke software development, provision of computer software solutions and related consulting services arising from such activities. This segment is further sub-divided in the following sub-segments i.e. Business intelligence, Customer relationship management, Brokerage, e-commerce, Internet services and IT and Business consulting.

The activities of the joint venture are disclosed as a separate segment. (All amounts in thousands of Indian Rupees)

Year ended March 31, 2010 Particulars Revenue External revenue Inter-segment revenue Total revenue Cost of revenue Gross profit Selling and marketing expenses General and administrative expenses Depreciation and amortisation Inter segment expense Income (loss) from operations Interest income Foreign Exchange Gain/ (Loss), net Other income (expenses) , net Income before provision for taxes Provision for taxes Net income

Products

Services

Corporate

3,257,204

2,279,957

3,257,204 (3,835,219) (578,015) (471,863) (11,318) -

2,279,957 (676,803) 1,603,154 (83,270) (16,319) -

(787) (787) (3) (45,976) (9,951)

(1,061,196)

1,503,565

(56,717)

Total 5,537,161 5,537,161 (4,512,810) 1,024,352 (555,136) (73,612) (9,951) 385,652 3,661 18,769 5,913 413,995 (137,786) 276,209

Oracle Financial Services Software Pte Ltd Notes forming part of the accounts for the Year ended March 31, 2010 (All amounts in thousands of Indian Rupees)

Year ended March 31, 2009 Particulars

Revenue External revenue Inter-segment revenue Total revenue Cost of revenue Gross profit Selling and marketing expenses General and administrative expenses Depreciation and amortisation Inter segment expense Income (loss) from operations Interest income Foreign Exchange Gain/ (Loss), net Other income (expenses) , net Income before provision for taxes Provision for taxes Net income

Products

Services

Corporate

Total

2795016.987

2,503,598

-

5,298,615

2,795,017 (3,628,151) (833,134) -527738.4705 -7129.42366

2,503,598 (640,262) 1,863,336 (93,130) (18,971)

-

5,298,615 (4,268,413) 1,030,202 (620,866) (58,004) (9,361) 341,972 6,446 118,490 (3,010) 463,897 (148,569) 315,329

(1,368,002)

1,751,235

3 (31,904) (9,361) (41,262)

Segment revenue and expense: Revenue is generated through licensing of software products as well as by providing software solutions to the customers including consulting services and knowledge process outsourcing services. The expenses which are not directly attributable to a business segment are shown as corporate expenses.

Oracle Financial Services Software Pte Ltd Notes forming part of the condensed accounts for the year ended March 31, 2010 (All amounts in thousands of Indian Rupees) 6. Transactions and balances outstanding with these parties are described below: Transaction Year ended 31-Mar-10 31-Mar-09

Amount receivable (payable) Year ended 31-Mar-10 31-Mar-09

Other Expenses Fellow Subsidiaries Oracle Corporation (S) Pte Ltd Oracle Financial Services Software B.V

1,854 401

1,184 -

-

-

Rent Paid Other fellow subsidiaries Oracle Information Systems (Japan) K K Oracle Corporation Japan Oracle (Philippines)Corporation Oracle Malaysia office Oracl Hongkong office Oracle - korea Oracle China Oracle Australia Oracle Taiwan LLC

18,509 167 703 277 1,168 586

7,467 167 138 113 661 594 479 -

-

-

2,738

-

-

-

Key Managerial personnel Travel

Oracle Financial Services Software Pte Ltd Notes forming part of the accounts for the year ended March 31, 2010 7. Aggregate expenses Following are the aggregate amounts incurred on certain specific expenses that are required to be disclosed under Schedule VI to the Act: (All amounts in thousands of Indian Rupees)

March 31, 2010

Cost of Sales Inter-Company Eliminations Salaries and bonus Staff welfare expenses Contribution to Provident and other funds Travel related expenses (net of recoveries) Professional fees Application software Communication expenses Rent Advertising expenses Power Insurance Repairs and maintenance: Leasehold premises Computer equipments Others Rates and taxes Finance charge on leased assets Provision for doubtful debts, net Other expenses

4,412,417 497,459 23,717 13,212 67,073 28,247 21,687 45,583 17,785 4,414 94 800 2,140 867 (2,283) 1,115 7,231 5,141,558

March 31, 2009

21 4101111 544533 15405 12308 82483 60671 8 18842 50806 23779 5143 84 5184 1566 1272 6506 28 10087 7475 4,947,311

8. Prior year amounts have been reclassified, where necessary to conform with current year's presentation.

Oracle Financial Services Software Pte Ltd STATEMENT OF CASH FLOW FOR THE YEAR ENDED March 31, 2010 (All amounts in thousands of Indian Rupees)

March 31, 2010

March 31, 2009

413,995

463,869

9,951 118 (3,661) (88,369) 1,115 333,149

9,361 4,373 (6,446) 285,617 10,087 766,860

372,997 (1,677) (545,994) 158,475 (61,838) 96,637

(5,612,027) 13,909 5,946,038 1,114,780 (90,083) 1,024,697

Cash flows from investing activities Additions to fixed assets including capital work in progress Interest received Net cash (used in) / provided by investing activities

(3,837) 3,661 (176)

(5,338) 6,446 1,108

Effect of exchange difference on translation

88,369

Cash flows from operating activities Income before provision for taxes Adjustments to reconcile income before provision for taxes to cash used in operating activities : Depreciation and amortization Loss on sale of fixed assets, net Interest income Effect of exchange difference on cash and bank balances Provision for doubtful debts, net Changes in assets and liabilities, net of effect of acquisition Increase in sundry debtors and unbilled revenue Increase in loans and advances Increase in current liabilities and provisions Cash from operating activities Payment of domestic and foreign taxes Net cash provided by operating activities

Net increase in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year (Note 1)

(285,617)

184,830 1,666,091 1,850,921

740,189 925,902 1,666,091

March 31, 2010

March 31, 2009

702

250

Note 1 : Component of cash and cash equivalent Cash in hand Balances with scheduled banks: Other current accounts Balances with non-scheduled banks: Current accounts in foreign currency Deposit account in foreign currency Cash and bank balances [Refer Schedule 6 (b)]

657,922 1,154,087 1,850,921

756,405 909,436 1,666,091

Cash and cash equivalents at end of the year

1,850,921

1,666,091

38,210