(a) Bank guarantee in favor of vendors / Govt. authorities is ss66.88 Lac (Previous Year- ss15.75 Lac).

(b) Standby letter of credit issued by bank on behalf of direct / step down subsidiary company ss477.00 Lac (Previous Year Nil).

(c) Corporate guarantees on behalf of step down subsidiary companies ss3572 Lacs equivalent to US$ 8 million.

(d) Import duty saved against EPCG licenses is ss130.68 Lac (Previous Year ss4.64 Lac).

2. Related party transactions :-

(a) Disclosure of related parties and relationship between the
parties:- 
Holding Company          : Strategybot Finance Private Limited, India
Wholly Owned Subsidiaries: EZY Infosoft Pvt. Ltd., India LSIL
                           Singapore Pte. Ltd., Singapore 
Fellow Subsidiaries      : Miracle Leasing &
                           Finance Limited., India Victor 
                            Leasing Limited., India 
Limited Liability Partnership : LSI Textile LLP., India (Share - 90%) 
Step down Subsidiary Companies : EZY Global Infotech FZE, UAE 
                    EZY APAC Limited,Marshall Islands 
                    EZY Infotech America Inc, Seychelles 
                    EZY EMEA Limited, Belize 
                    EZY Central Purchasing Limited, Marshall Islands 
                    Esys Distribution(Korea) Ltd, Korea
                    Esys Central Purchasing Limited, Marshall Islands 
                    Esys Pakistan Private Limited, Pakistan 
                    EZY Infotech (USA) Inc, Miami, USA 
                    EZY Infotech (Canada) Inc, Toronto, Canada 
                    EZY Infotech (M) Sdn.Bhd. Malaysia
                    EZY Infotech (Hong Kong) company Limited, Hongkong 
                    EZY Infotech Private Limited, Bangladesh 
                    EZY Infotech Private Limited, Sri Lanka 
                    EZY Infotech Private Limited, Pakistan 
                    EZY Infotech FZE, UAE EZY Infotech Gmbh, Germany
                    Esys Technologies Lanka Private Limited, Sri Lanka 
                    Esys D.O.O., Croatia
                    EZY Infotech Pte Limited, Singapore 
                    EZY Infotech B.V., The Netherlands
                    Esys Technologies Jsc , Vietnam 
                    EZY Logistics Private Limited, India

4. Employee Benefits:-

(i) Post Retirement Employee Benefits

(a) Defined Contribution Plans:

The company has Defined Contribution plans for post retirement employment benefits namely Provident Fund and Employee State Insurance Scheme. Expense for the same is being charged to Profit and Loss account for the year. During the year, the company has recognized an expenses of ss1,935,103/- (Previous Year ss135,692/-) in respect of contribution to Provident Fund.

(b) Defined Benefit Plans:

a) Gratuity: The liability for gratuity is determined on the basis of an actuarial valuation at the end of the year. Gains and losses arising out of actuarial valuations are recognized in the Profit and Loss Account for the year. b) Leave encashment: Liabilities for compensated absences which is a defined benefit plan are determined based on independent year end actuarial valuation and the resulting charge is being accounted in Profit and Loss account. Expected short term liability as assessed by actuary is accounted for on accrual basis.

Accumulated liability pertaining to the services rendered with the vendor company, as derived on the basis of actuary valuation up to the date of appointment has been recovered.

Actuarial assumptions:

In accordance with Accounting Standard-15 (Revised 2005), an actuarial valuation was carried out on the basis of "Projected unit credit method" in respect of the aforesaid defined benefit plans based on the following assumptions:

5. Earning Per Share

The basic and diluted Earning Per Share (EPS) have been calculated by dividing Net Profit for the year attributable to equity shareholders by the weighted average number of Equity Shares as per AS 20 as under:-

*Since the share split is without consideration, it is treated as if it had occurred prior to the beginning of the previous financial year 2009-2010, the earliest period reported.

6. Segment Reporting

On the basis of assessment of the risk and return differential in terms of AS-17, the Company has identified 'Wholesale Trading' and 'Manufacturing' as primary reportable business segments. Further, the geographical segments have been considered as secondary segment and bifurcated into 'Within India' and 'outside India'. The accounting policy in respect of segments is in conformity with the accounting policies of the enterprise as a whole. The revenue and expenditure in relation to the respective segments have been identified and allocated to the extent possible. Other item i.e. corporate office expenses, etc. not allocable to specific segments are being disclosed separately as unallocated and adjusted directly against the total Income of the company.

Strength to their existing business associate in order for them to transfer business agreements in favor of the company, they have incurred huge losses and thus, they have debited the company by ss24.00 Crore. This has been reviewed by the Board of Directors of the company thoroughly, and based on circumstances of the whole situation; it decided to take this as a onetime acquisition cost of the running established business. However, without prejudice to any accounting treatment, the company has filed a legal suit in the proper court of law for defending its claim.

15. Micro, Small Scale Business Entities

The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid / payable under this Act has not been given.

16. Balances of sundry debtors, sundry creditors, advances given, advances received are subject to reconciliation and confirmation from respective parties. The balance of said sundry debtors, sundry creditors, and advances given and received are taken as shown by the books of accounts. The ultimate outcome of such reconciliation and conformation cannot presently be determined; therefore no provision for any liability that may result out of such reconciliation and confirmation has been made in the financial statement.

17. The loans & advances, debtors and other current assets are reviewed annually and there value in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet as assessed by the management.

18. Previous year figures have been regrouped and reclassified, wherever material and considered necessary to conform to current year's classification.

19. Figures in bracket indicate deductions / previous year as the case may be.

20. Schedules 1 to 19 form an integral part of the Balance Sheet and Profit & Loss A/c for the year ended 31st March 2011.