Compiled by : Asian CERC Information Technology Ltd.

eClerx Services Private Limited
7rth Annual Report

2006-2007

Compiled by : Asian CERC Information Technology Ltd.

DIRECTORS' REPORT

To The Members, Eclerx Services Private Limited

Dear Members, Your Directors present their Seventh Annual Report for the year ended 31st March 2007, together with the Audited Statement of Accounts for the year ended as on that date.

FINANCIAL RESULTS: The operating results of the company for the year are as follows: For the period For the period ended on 31st ended on 31st March 20C6. March 2007 862,339,882 476,863,028 399,425,927 246,547,848 2,700,000 396,725,927 79,782,086 202,500,000 28,400,625 41,471 40,000,000 205,565,917 1,925,000 244,622,848 44,881,900 75,937,500 86,062,500 10,650,234 12,070,266 2,162 25,000,000 79,782,086

Revenue Profit / (Loss) before tax Less: Provision for Tax Provision for Fringe Benefit Tax Profit After tax Add: Balance b/f Less: Interim Dividend Proposed Dividend Tax on Interim Dividend Provision for Tax on Proposed . Dividend Short / Excess Provision for Tax Transfer to General Reserves Balance Carried to Balance Sheet DIVIDENDS:

Your Directors recommend the interim dividend already paid as the final dividend for the year under review.

1956 read with the Companies (Particulars of Employees) Rules. 1975. d) That the annual accounts have been prepared on a going concern basis.1975. the applicable accounting standards have been made followed and that no material departures have been made for the same.88. 2007 and of the Loss of the Company for the year ended on that date. PARTICULARS OF EMPLOYEES: The particulars of employees as required by Section 217 (2A) of the Companies Act.000/- Qualification MBA Date of employment I5' April 2006 Experience 10 Age 34 Last Employment NIL DIRECTORS RESPONSIBILITY STATEMENT: The Directors confirm: a) That in the preparation of the annual accounts.is given below: Sr 1 Name P. 1956 read with the Companies (Acceptance of Deposits) Rules.00.Compiled by : Asian CERC Information Technology Ltd. PARTICULARS OF DEPOSITS: The Company has not accepted any deposits from the public as contemplated uiider section 58 A of the Companies Act.Mundhra Designation Executive Directot Remuneration Rs.D. b) That the selected accounting policies were applied 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 March 31. SECTION 217(1) (e) OF THE COMPANIES ACT 1956: Additional information on Conservation of Energy. c) That proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act. Foreign Exchange Earnings and outgo as required to be disclosed in terms of Section 217(1) (e) of . Technology Absorption. 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

bankers of the Company. AUDITORS: M/s C. 2007 Place: Mumbai . co-operation and guidance. Chartered Accountants had expressed their unwillingness to continue as Statutory Auditors and their term expired at the Annual General Meeting. Financial Institutions.Compiled by : Asian CERC Information Technology Ltd.. Accordingly Board recommends the appointment of M/s Walker Chandiok & Co. other Government Departments and Agencies. ACKNOWLEDGEMENT: Your Directors take this opportunity to thank all the employees. Chartered Accountants as Statutory Auditors for the financial year 2007-08. Gabawala & Co.M. the Companies Act 1956 read with Companies (Disclosure of particulars in the report of Board of Directors) Rule 1986 is not given since the Company has not dealt in any of the areas specified therein. consultants & advisors auditors and others for their continuous support. shareholders. On Behalf of the Board of Directors Sclerx Services Private Limited Date: 25th July.

as on 31st March. 30. 3. as well as evaluating the overall financial statement presentation. GABHAWALA & CO. on a test basis. As required by the Companies (Auditors Report) Order. <. D. AUDITORS' REPORT To. We have audited the attached Balance Sheet of eClerx Services. <"•*•> CHARTERED ACCOUNTANTS 42. we enclose in the Annexure a statement on the matters specified in paragraphs 4 & 5 of the said Order. >i> (v) . Nanik Niwas. Dr. Our responsibility is to express an opinion on these financial statements based on our audit.Compiled by : Asian CERC Information Technology Ltd. We believe that the audit provides a reasonable basis for our opinion. D. These financial statements are the responsibility of the Company's management. 3923 / 2382 4641 / 2384 1752 Fax j 2385 0931 1 i cm8co@hathway. Girgaum. The Members of eQerx Services Private limited 1. evidence supporting the amounts and disclosures in the financial statements. 2007 and taken on record by the Board of Directors. we report that none of the directors are disqualified as on 31s' March 2006 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the_ Companies Act 1956. 2007 and the annexed Profit & Loss Account for the year ended on that date annexed thereto.com 004. An audit also includes assessing the accounting principles used and significant estimates made by management. C. 19^6.<?\ ^fjdOtiBW'Sj . In our opinion. An audit includes examining. proper books of account as required by law have been kept by the Company so far as appears from our examination of those books. We conducted the audit in accordance with Auditing Standards generally accepted in India. 1956. M U M B A I -400 Phone J 238?. 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act. the Balance sheet and Profit and Loss account dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act. 2. 4 Further to our comments in the Annexure referred to above. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Balance Sheet and Profit and Loss account dealt with by this report are in agreement with the books cf accounts. Private limited as at 31S( IVfarch. On the basis of written representations received from the directors. we report that: (i) (ii) (iii) (iv) We have obtained all the information and explanation which to the besi of our knowledge and belief were necessary for the purpose of our audit. Sathe Marg. M. In our opinion.

2007 . 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India. Phone : 2382 3923 / 2382 4641 / 2384 1752 Fax : 2385 0831 e-inail i cmgco@h3thway. M U M B A 1-400 004. 30.com (vi) In our opinion and to the best of our information and according to the explanation given to us. For C.Compiled by : Asian CERC Information Technology Ltd. Gabhawala) Partner M. Dr. Girgaum. of state of affairs of the Company as at 31ST MARCH. CHARTERED ACCOUNTANTS 42. M. D. No. of the Profit for the year ended on that date. of the Cash Flows For the year ended on that date. (c) In the Case of Cash Flow Statement. Nanik Niwas. (a) In the case of the Balance Sheet. GABHAWALA & CO. 2007. Sathe Marg. and : (b) In the case of the Profit and Loss Account. the said accounts gives the information required by the Companies Act. CHARTERED ACCQUNTANIS (Biren C. C. D. GABHAWALA & CO. M. 40496 Place : Mumbai Ih Dated : 25" July.

2003 is not applicable. Sathe Marg. (b) (c) (ii) (a) The Company does not have any inventories of goods. 1956 and the amount involved in the transaction during the year was Rs. CHARTERED ACCOUNTANTS 42. the company has not disposed off any major part of Fixed Assets. M U M B A 1-400 004 Phone ! 2382 3923 / 2382 464'. (iii) (a) (iv) (v) (a) According to the information and explanations given to us. M. purchases of fixed assets and for rendering the services. the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act. (b). In our opinion and according to the information and explanations given to us. The Company has taken loan from one party covered in the register maintained under section 301 of the Companies Act. No major weaknesses have been noticed in the internal control system.com ANNEXURE TO AUDITORS' REPORT Re: eClerx Services Private Limited Referred to in paragraph 3 of our report of even date (i) (a) The Company has maintained proper records showing full particulars including quantitative details and situations of the fixed assets.000. In our opinion and according to information and explanations given to us. Accordingly. C. GABHAWALA & CO. During the year. during the course of audit. (b) (vi) . only part is completed. The company has not accepted any public deposits during the year under review. 30. Girgaum. / 2384 1752 Fax : 2385 0931 e-maii I cm§co@hathway. Nanik Niwas. 2003 is not applicable. hence clause 4(ii)(a).200. 39. Dr. D. provisions of clause 4(vi) of Companies (Auditor's Report) order. (c) of Companies (Auditor's Report) order. Out of the total fixed assets. 1956 and exceeding the value of rupees five lakhs in respect of party during the year have been made at prices which are prima facie reasonable having regard to prevailing market prices at the relevant time. No material discrepancies were noticed on such verification.Compiled by : Asian CERC Information Technology Ltd. The Company conducts physical verification of fixed assets in phase wise manner. D. there is adequate internal control system commensurate with the size of the cc nip any and the nature of its business with regard to. we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the act have been entered into the register required to be maintained under that section.

In our opinion. securities. 30. D. (b) (x) (xi) (xiii) In our opinion. -2- : The Company does not have any formal internal audit system. however it has adequate internal controls to commensurate with its size and nature of business.Compiled by : Asian CERC Information Technology Ltd. clausex4(xii) of Companies (Auditor's Report) order. The company has neither borrowed funds from financial institutions. The company has not granted any loans and advances on the basis of securities by way of pledge of shares. The company does not have any accumulated losses as at 31st March. there are no dues of income tax. Sathe Marg. Girgaum. the company is not a chit fund or a nidhi / mutual benefit fund/society. clause 4(xi) of Companies (Auditor's Report) order. (viii) (ix) (a) The company is regular in depositing with appropriate authorities undisputed statutory dues including income tax. no -undisputed amounts payable in respect of income tax. which ensures reasonable checks on its financial and other matters. Dr.) CHARTERED ACCOUNTANTS Fax : 2385 0931 42. banks nor issued any debentures. hence clause 4(viii) of Companies (auditor's Report) order. Hence. D. The company has not given any guarantee for loans taken by others from banks or financial institutions. Hence. clause v(xiv) of Companies (Auditor's Report) order. Hence. Phone t 2382 3923 / 2382 4641 / 2384 1752 e-mail i cmico@hathway. Hence. 2003 is not applicable. (xiv) (xv) . 2007. According to the information and explanation given to us. debentures and other investments. The Central Government has not prescribed any cost records to be maintained by the company. clause 4(xiii) of companies (Auditor's Report) order. clause 4(xiv) of Companies (Auditor's Report) order.com . sales tax which have not been deposited on account of any dispute. sales tax were in arrears. According to the information and explanations given to us. clause 4(xvi) of Companies (Auditor's Report) order. Hence. The company has not taken any term loans during the year. the company is not dealing in or trading in shares. 2003 is not applicable. M U M B A 1-400 004. 2007 for a period of : more than six months from the date they became payable. sales tax and other material statutory dues applicable to it. debentures and any other securities. Nanik Niwas. 2003 is not applicable. 2003 is not applicable. The company has not incurred any cash loss during the financial year covered by our audit and also in the immediately preceding financial year. as at 31SI March. 2003 is not applicable. Hence. c (yii) (Regd. 2003 is not applicable. 2003 is not applicable.

Hence. Girgaum. Based on the audit procedures performed and according to the information and explanations given to us. 2003 is not applicable. clause 4(xviii) of Companies (Auditor's Report) order. 40496 PLACE : Mumbai DATE : 25lh July. Nanik Niwas. the company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act. According to information and explanations given to us. D. Gabhawala) Partner M. (xviii) (xix) (xx) (xxi) For C. Hence clause 4(xix) of Companies (Auditor's Report) order. M. CHARTERED ACCOUNTANTS (Biren C. The company has not made any public issues during the year. 2003 is not applicable. C.Compiled by : Asian CERC Information Technology Ltd.com -j- (xvii) According to the information and explanations given to us and on an overall examinations of the balance sheet of the company. 2003 is not applicable. GABHAWALA & CO. 2007 . M. Sathe Marg. we report that no funds raised on short term basis have been used for long term investment company. Phone { 2382 3923 / 2382 4641 / 2384 1752 Fax : 2385 0931 e-mail I cmgco@hathway. 30. GABHAWALA & CO. Hence clause 4(xx) of Companies (Auditor's Report) order. <"•*.) CHARTERED ACCOUNTANTS 42. No. Dr. D. no fraud on or by the company has been noticed or reported during the year. M U M 8 A 1-400 004. The company has not issued any debentures.

624.431 34.249 169.125.981 127.665 130. No.190.367.456.777 Net Current Assets TOTAL FUNDS APPLIED Significant: accounifng policies.Compiled by : Asian CERC Information Technology Ltd.151 38.777 127.502.037.412 4.502.973. Loans & Advances Unbilled Revenue Cash & Bank Balance Sundry Debtors Loans & Advances Less : Current Liabilities & Provisions a) Current Liabilities b) Provisions D C 142.125.885 ' 115.766 135.546.782. eClerx Services Pyt.<""—TFTDTMundhra) Director (Anjan Malik) Director .798 119.516 12.917 293.000 21.000 186.329 76.055 59.377.540 216.743 66.028 23.099 30.908.089. Gabhawaia & Co Chartered^Accountants/^^N For eClerx Services Pvt. 40496) Place : Mumbai Date : 25th July 2007 /"vTT'X /^^'>-'XV\ t^f ^z^'^\ V^A'^ v "/ \J_L^X . Notes to Accounts ana Schedules referred to herein form an integral part of Balance Sheet As per our report of even date i" 293.086 127.235.581.788 For c. M.866.534.502.955.581.Ltd.591 66.691 117.512 34.414 400. 2007 PARTICULARS SOURCE OF FUNDS Share Holder's Funds : Share Capital Stock Option Oustanding Reserves & Surplus SCHEDULE Current Year RS PREVIOUS YEAR RS A B 10.256.946.911.382 E F G H 65.025.871 283.712.010.271 19.510. Ltd.581.549 73.202.557. BALANCE SHEET AS AT 31 ST MARCH.389 61.488 30.502.407. fl 1 / (Biren C Gabhawaia) (Partner) (M.777 TOTAL FUNDS EMPLOYED APPLICATION OF FUNDS Fixed Assets Gross Block Less : Depreciation Net Block Closing WIP including Capital Advances Investments Current Assets.788 10.014.788 293.000 49.413 12.410 278.

748 NET PROFIT AFTER TAXES Surplus brought forward from previous years Profit available for Appropriation Less : Appropriation: Interim Dividend Tax on Interim Dividend Proposed Dividend (Final) Provision for Tax on Proposed Dividend Short/ Excess Provision for Tax Transfer to General Reserve Balance carried to Balance Sheet Earnings per Share .722./ Date : 25th July 2007 ^-^—J-^ 202.500 10..141.927 125.925.508. Notes to Accounts and Schedules referred to herein form an integral 'part of Profit & Loss Account As per our report of even date ForC.882. Gabhawala & Co Chartered-Accountants [ \ ^-'-" Jj ^J f ^^^^^jp^-^*^ (Biren C Gabhawala) /^v^TTX (Partner) /^"""VA (M.070.059.(«.917 392 75.086 240 *v .000.848 44.863.415.147.r ^)<2\ i*vT ^-W Place : Mumbai \^ ^"^ ^ .162 25.796 30.766.265 2.000 270.Basic/ Diluted (Face value Rs.050 32.412. 10/-) Significant accounting policies.143.754. Ltd.000 396.622.476 65.449 246.857 862.549 1.467. PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH.886.000 244.662 79.096 205.782.457 430.234 86. No.881.013 1.000.547.700.268.000 28.471 40.565.379 81.848 NET PROFIT BEFORE DEPRECIATION &TAXES Depreciation NET PROFIT AFTER DEPRECIATION BEFORE TAXES Less : Provision for Taxation a) Current Tax b) Deferred Tax c) Fringe Benefit Tax C > 2.000 2.616 8.028 EXPENSES Payment to & provision for employees Administrative expenses Selling and Distribution expenses • K L M 245.527 165.731 261.650.Compiled by : Asian CERC Information Technology Ltd.900 289.171.500.848 19.Lra.500 12.176 476. / d&\^My^> ^___ —• (PTDTMundhra) Director AC (Anjan Malik) Dtrector .062.737 215.086 476. M.782.357.700.725.927 79. J 795.504.832 431.055 4.691.425.782.000 209.339.' For eCIerx) Services Pvt.882 441.573.000 1.925.942.400.123 399. 40496) . 2007 CURRENT YEAR SCHEDULE PARTICULARS RS INCOME Services Unbilled Revenue Other Income PREVIOUS YEAR RS .625 41.297 15.712. eCIerx Services Pvt.937.

883.441.795) 71.369 (54.Ltd.465) (51. Biren C Gabhawala Partner Membership No.063.734) 40.527 (200.449 49. Cash Flow from Financing Activities : Dividend Paid Dividend Tax Paid Net Cash used in Financing Activities Net (Decrease) / Increase in Cash and cash equivalents Cash & Cash Equivalents at the beginning of the period Cash & Cash Equivalents at the end of the period (288.758 57. eClerx Services Pvt.772. Cash Flow from Operating Activities Net Profit Before Tax & Exceptional Items Adjustments for : Depreciation Stock Options Oustanding (Profit) / Loss on Sale of Investments Dividend Income Interest income Operating Profit Before Working Capital Changes Adjustments for: Trade and Other Receivables Fixed Deposit with Banks Loans and Advances Current Liabilities & Provisions Income Taxes paid Net Cash Generated by Operating Activities B. 2007 2007 A.248.593 "(15.483) (522.848 15. Cash Flow from Investing Activities : Sale of Investments Purchase of Investments Sale of Fixed Assets Purchase of Fixed Assets (incl Capital work in progress) Interest income Dividend Income Net Cash Generated by / (used in ) Investing Activities C.558 (1.180 2.238 (87.471) 358.770) (7.005 72.691 (8.073.309.234) (86.623) '113.147.030 (15.636) 94.030) (71. M.505) 399.39-:) 14.162) 201.449) (7.595.670 522. 40496 Place : Mumbai Date : 25th July 2007 /lundhra Director Anjan r.470.098 For the year ended March 31.489) 431.465) (62.183.783.300.860 17.161) 25.741) 51.065.465 (74.763 (75.566 (106.876 (2.145 57.500) (10.891) (329.156.927 32. Gabhawala & Co Chajtefed-Accountants For eClerx Services Pvt.883.489 200.938.267.717.927.650. 2006 2006 For C.158.249) (55.547.670) 261.562.587.033.672 (28.165.'alik Director .263.417.785 246. Ltd.143.636) (353.737.425.Compiled by : Asian CERC Information Technology Ltd.005 27.956.500) (40.123 137.261) 4. Cash Flow Statement For the year ended March 31.741.714.937.

000 25.wjttiSqheduled Banks Balance with Scheduled Banks .12.625. 37.765. 12609788.125. 10/-) (Market Value Rs.625. SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT 31 ST MARCH. Subscribed and Paid .000 11.407.624.625.each CURRENT YEAR RS PREVIOUS YEAR RS 11.775.625.034 73. IQ.591 .each fully paid up \Q<i Vr.10/.000 • "SCHEDULE -B' : RESERVES & SURPLUS Security Premium Opening Balance Less : Transfer to Share Capital as Bonus General Reserve Opening balance Less : Transfer to Share Capital as Bonus Add : Transfer from Profit & Loss Account 10.510.000 12.000 40.000 Equity Shares of Rs.QQ. 2007 PARTICULARS SCHEDULE 'A' : SHARE CAPITAL Authorised Share Capital 11.000 '.500 Equity Shares of Rs.625.502 1.00.e abw« stores.917 79. Ltd.000.125.Compiled by : Asian CERC Information Technology Ltd.each have been issued for consideration other than cash by way of Bonus shares by capitalising free reserves) 10.68 & 6t PY Rs.037.000.10/.625.125.OOQ Eqvyfy stores ^ Rs.154.586 59.382 12.000 7.775. 56) 21.382 SCHEDULE 'E1 : CASH & BANK BALANCE Cash in Hand Balance.000 14.000 7.998.917 283.086 SCHEDULE 'D1 : INVESTMENTS Non-trade (Quoted) Mutual Fund Templeton Floating Rate Income fund .-0.000 2.190.565.210.000 37.000. (Dividend Re-investment Plan) (Face value Rs.up 10.Fixed deposits (Including Accrued Interest) (The Fixed Deposits have been Pledged with the Bank against Bank Gurantee except one which is pledged for Foreign Currency Hedgeing) 302.885 12.261 71.850.798 117. W.000 77.125.000 37.225.885 21.896 57.109 1.000 Issued.782. eCSerx Services Pvt. 16433.Short Term Plan •s.624.086 117.000 Profit & Loss Account 205.000 10.000 .000 37.000.

115.Y. . 2007 PARTICULARS SCHEDULE 'F* : SUNDRY DEBTORS (Unsecured considered good by management) More than Six months Others SCHEDULE 'G' : LOANS AND ADVANCES (Unsecured considered good by management) Advance recoverable in cash or in kind for value to be received Advance Against Salary Prepaid Expenses Advance Tax Paid (IDS) A.307 11.27 8.375 65.908.252.165 1.000 1.165.235. 2007-2008) IT.570. Y.410 12. Y.273 100.973. SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT 31 ST MARCH.271 1. VSNL Service Tax Account 2006-07 TDS on FD BOI Interest Deposits Foreign Currency Receivable CURRENT YEAR RS PREVIOUS YEAR RS 119.-2005-06 Advance Tax Paid (TDS) (A.038 8. Y.271 115.367.670 2238313.235. 2004-05 ABC Consultants Private Limited Carpet Raya Collection SND MaFoi Management Consultants Ltd.131.855 2.211 3.249 .953.467 54.157 19.220.000 216. eCierx Services Pvt.759.275 1.918 31.516 495. 2006-2007) Advance Fringe Benefit Tax (A.Compiled by : Asian CERC Information Technology Ltd.275 408. 2007-2008) Self Assessment-Fringe Benefit Tax (A.000 891.570.000 1.691 1.141 66.170 SCHEDULE 'G1* : ADVANCE PAID TO SUPPLIERS Thomas Cook (I) Ltd.874 2. Ltd.Y.Refund Due for A.136. Y.000 315.608. 2006-2007) Advance Fringe Benefit Tax (A.

Ltd.500 12.822. Ltd.500.266 130.400 4.051 4.925. Sterling Frieghts P.700.778.156 237.K. eClerx Services Pvt.127 645. Travie Master Value Consulting Wipro Ltd.069 1. Ltd.903 57.156 1.945 42.795 49.363 42. _ -Proposed Dividend Provision Dividend Distribution Tax 9. Pvt LTd. Navbharat Estate Development P.Ltd. Worldcom Communication India Pvt.872 127.766 .455.187 304. N Amro Credit Card vl.736 159.389 1.Ltd.389 3.334 36.089.241.813 5.800 10.536 20.000 30. Axicom Optimals Pvt Ltd.657.554 210.848 ( Sundry Creditors for goods and services Aaron Travels Acess Dataline Pvt Ltd. Monitron Security Pvt. Credit card Abn Amro Bank Strattnn 76.688.349.614 Outstanding Expenses Total Current Liabilities b) Provisions Provision for Gratuity Provision for FBT 06-07 Provision for FBT 07-08 Provision for Incentive bonus .705 40.265 59. Myndcentere Consulting Pvt Ltd.554 169.375 24.062.586 997 42. Dolly Mittal Dunil Electric Saver & Maintenance Co.557.456.147 23.866. Ltd SCHEDULES ANNEXED TO AMD FORMIMG PART OF THE BALANCE SHEET AS AT 31ST MARCH 2007 PARTICULARS 'SCHEDULE 'H': CURRENT LIABILITIES & PROVISIONS a) CURRENT LIABILITIES Advance Reed for Exports Markit Group Lehman Brother Advance reed from Suppliers CURRENT YEAR RS PREVIOUS YEAR RS 2.030 732.000 38.976.170 190.000 2. Skypak SeiViCt! SpedaiiaS Shivani Agarwal Softex Consultancy Sodexho Pass Services Pvt. Hans Copy center Hewitt Asscoaites (I) Pvt Ltd.698 42.070.750 9.000 1. Gabhawala & Co.776 44.634.665 4.133 36.151 2.000. Tops Security Ltd.000 27. eClerx LLC USA eClerx U.705 19.332 205.925.000.Compiled by : Asian CERC Information Technology Ltd.000 86.291 4.L.920 3.741 2.

886.406 625.527 168.000 42.017.465 14.678 5.237 1.005.018.997.815.522 .857 4. Training Exps.387 2.670 8.286 1.000 4.168 264 51.037 1 .086.670 1. 31.689.906 4.038 & Rs.) • Profit on Sale of Investments Dividend ( T.650.053.467.017. Employee Compensation Expense SCHEDULE V : ADMINISTRATIVE EXPENSES Audit Fees Bank Charges Bad Debt Computer Expenses Contract for Services Conveyance Expenses Donation Electricity Expenses Exchange Diff House Keeping Expenses Insurance Expenses Internet Charges License Fees Legal & Professional fees Office^& General Expenses Placement charges Printing & Stationery Stamp Duty & Registration Expenses Rent Repairs & Maintenance (Building) Repairs & Maintenance (Otheis) Sales Tax Security Charges STP Registration & Annual Fees Subscription & Membership Short Term Capital loss Telephone Expenses Water Charges Staff Seminar & Conference 229.922 2.525 •• 1.599. D.876 _ " SCHEDULE 'K1 : PAYMENT TO AND PROVISION FOR EMPLOYEE Salary & Wages Gratuity Directors Remuneration Staff Welfare Exps.059.549 2.193 14.336 1.468 88.232 275.857.691 125.457 666.160.226 19.741 1.691 P.520.980 8.835 5.321 ' _ CURRENT YEAR RS PREVIOUS YEAR RS 4.030.360 874. Ltd.256 307.694 4.000 110.450 2. .825.848 - 926.133 508.485.796 200.058.483 522.000 7.383.181 561.285.750 12.668 165.176 120.685 1.616 SCHEDULE 'M1 : SELLING AND DISTRIBUTION EXPENSES Advertisement Expenses Travelling expense Business Promotion Expenses 1.078 102.900 3.665.309 2.818 944.317 1.NIL) Provision no longer reqd w/back Income tax refund Interest on Income tax refund Exchange Difference 71.601.456 8.153.508. eClerx Services Pvt.193 764.357.545.241.489 200.200 4.800.161 ^ 449.038 3.679.379 134.000 360.497 131.155.1 1.095.000 8.Y.813 49.000 1.404 22.737 ^^1 '' .309. S.276 42.920.425.335 648.582 1.180 245.222 116.527 7.837.003 31.030 865.613 87.141.184 81.001.882.337.265 4.389 8.213.797 929. PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 ST MARCH 2007 SCHEDULES ANNEXED TO AND FORMING PART OF THE PROFIT AND LOSS ACCOUNT PARTICULARS SCHEDULE 'J1 : OTHER INCOME Interest on Fixed Deposit (TDS Rs. 629.342.412.227 101.354 2.885 294.Compiled by : Asian CERC Information Technology Ltd.688 287.754.715 2.668 362.937 137.

475.552.098 76.267.858 1. SCHEDULE ANNEXED TO AND FORMING PART OF BALANCE SHEET AS AT 31ST MARCH 2007 Schedule 'C' ASSETS Rate of Dep % As on 01/04/200G GROSS BLOCK .172 13.581 10.564 25.855.681 18.649 32.379 .287 62.798 7.813 _ .376.339.006 7.541.818 3.952 1..743 115.112.35 15.91 18.960 1.512 52934771 27.509 4.123 15.556 9.807.574.274.804 14.502.089.822.478.256.030.491.147.564 - 142.414 80.021 2.143.193 8.256.715 .355.500.449 25.734.377. 15.930 38.108 18. 15.534.667 13.00 18.AT COST Additions Deductions / As on 31/03/2007 Dui ing the Year Transfer Out Up to 31/03/2006 DEPRECIATION Deductions / For the year Transfer Out NET BLOCK Up to 31/03/2007 As on 31/03/2007 As on 01/04/2006 LEASEHOLD IMPROVEMENT COMPUTER FURNITURE FIXTURES OFFICE EQUIPMENTS INTANGIBLE ASSETS ' (COMPUTER SOFTWARE) TOTAL Previous Year ' » 11.881.246.295.477 3.343.031 4.419 9.960.848.01 1 478.946.202.911. eClerx Services Pvt.925.768.512 34.452 6.612.242.465 43. Ltd.357 24.123. _ 11.414 33.122 Intangible Assets have been depriciated at 40% but where the useful life of the asset is over we have depriciated it completely .764. 2.795 62.10 13.Compiled by : Asian CERC Information Technology Ltd.965 5.632 926.138 20.068.098 '19.352 7.892 .466.504 115.. 10.691 139.855.202.414 8JL946.837.354.741 139.766.892 - 66.287 80.198.329 34.861 40.978.743.321 3.151.822 37.

eClerx Services Private Limited SCHEDULE ANNEXED TO AND FORMING PART OF BALANCE SHEET AS AT 31s' MARCH. ii. revenue is recognized as the related services are rendered. 2.But. 2007 AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED ON THAT DATE SCHEDULE I A) SIGNIFICANT ACCOUNTING POLICIES: 1. up to the date the asset is ready for intended use. FIXED ASSETS: Fixed Assets are stated at their original cost of acquisition and shown net of accumulated depreciation. is recognized as per percentage of completion method. DEPRECIATION: Depreciation is calculated on the written down value method in accordance with the rates specified in Schedule XIV of the Companies Act. 3. 4.Compiled by : Asian CERC Information Technology Ltd. Cost and earnings in excess of billings are classified as unearned revenue. PROVISION FOR TAXATION: i. INVESTMENTS: Current Investments are carried at lower of cost or net realizable value. Cost includes all expenses incurred. On time-andmaterial contracts. • EMPLOYEES RETIREMENT BENEFITS: Gratuity has been provided in the books on the basis of Actuarial Valuation. Provision for Deferred tax in respect of timing differences that originate during tax holiday period and reversible during the tax holiday period has not been made as the company is a Software Export Company registered in a Software Technology Park enjoying deduction U/S 10A. Provision for current tax is made in accordance with Income Tax Act. where there is no uncertainty as to measurement or collectibility of consideration. Provision for diminution in value of long-term investments is made only if such decline is other than temporary in the opinion of the management. 5. . in the case of Intangible Assets where useful life is of the Asset is already over we have written it off completely during the year. Permanent improvements and Structural Renovations on leasehold premises we have amortized it over the initial lease period as far as it was readily ascertainable. 6. 1956. which are incidental to the acquisition and installation. REVENUE RECOGNITION: Revenue from business process operations on fixed price and fixed time frame contracts. 1961. Long Term investments are stated at cost.

453 10.000 7.S.2006 9. \ Foreign Currency: Earnings Export on F.415. EMPLOYEE STOCK OPTION & OWNERSHIP PLAN: The employee compensation expense (i. FOREIGN CURRENCY TRANSACTIONS: i) Foreign Currency Transactions are recorded at the exchange rates prevailing as on the date of the transaction. iv) 8. Basis) Professional Fees Advertisement Expenses Recruitment Charges Contract Charges As on 31. NOTES TO ACCOUNTS: In the opinion of the Board. Diluted earning per equity share has been computed using average number of equity shares and dilutive potential equity shares if any outstanding during the period.F.C. basis Outgoings Traveling Import of Capital Goods (C.03.018 16.03.285.2007 As on 31.370 9. The use of these foreign exchange forward contracts & options reduces the risk or cost to the company and the company does not use the foreign exchange forward contract or option for trading or speculation purposes.313. is not applicable to the company.018.268. The provisions for all known liabilities are adequate and not in excess of the amount considered reasonably necessary. Company uses forward contracts and options to hedge its exposure to movements in foreign exchange rates.798 33.913. The company has been advised that provision of provident fund and E. the Current Asset. Loans and Advances are approximately of the value stated if realised in the ordinary course of business. which are adjusted in the cost of Fixed Assets.796 676.295. ii) iii) Assets and Liabilities denominated in foreign currency are translated at the exchange rates prevailing at the year-end date.Compiled by : Asian CERC Information Technology Ltd.I.B. The company records the gain or loss on effective hedges in the Profit & Loss A/c.e. 7.I.092 646.060.476 1.800 NIL NIL NIL . except those arising on account of acquisition of Fixed Assets before l sl April 2004. (B) (i) (ii) (iii) 795. EARNINGS PER SHARE: Basic earning per equity share has been computed by dividing net profit after tax by the weighted average number of equity shares outstanding for the period.O. All the exchange difference arising on translation of assets and liabilities at the year-end rate are dealt with the Profit and Loss Account.150 441.277 51.393. the difference between the fair value & the exercise price) is being be written off over the vesting period of the approved ESOP plan.

Mundra Duncan Stratton 162.80. Contract for Services Eclerx LLC USA Contract for Services Contract for Services Remuneration Loan taken & repaid Dividend Dividend Dividend Rent Amount (Rs.00.622. No.000 81.000.00.03.00.68.000 80.03.120 56 !20 56'. 26.012. D. Mundra P.598 1.2007 56.194 175.03.849 10. 3.0007. over the expiry of the lease period has been recognized as an expense on straight-line basis in Profit and Loss A/c.75.and working capital of Rs.360 (ix) Earnings Per Share: Profit After Tax Weighted average number of equity Shares at the beginning of the year Weighted average number of equity shares at the end of the year Face Value of each equity share Basic / Diluted earning per share Current Year 396.000 NIL As on 31.12. Directors Remuneration: As on vi) (vii) (a) P.000 1.800 Lease Accounting (AS 19): The company has taken premises on lease under "Operating Lease". 3.012.800.000 from Kotak Mahindra Bank having a first and exclusive charge on existing and future fixed assets and current assets. D. 1 Related Part Transaction (AS 18): Name Nature of Transaction Eclerx U.2006 1.838. The total lease amount payable.500 . Sr. K.).000 Relationship Company under Same management Company under Same management Common Director Director Director Director Director Director Common Director 4 5 6 7 8 9 v) Innovative Impex P.000 205.558.120 39.00.927 1.03.725.500 10 392 10.18. the company has not availed the loan sanctioned.284 80.K.000 39.853 1.2007 88. However. Mundra P. Ltd.500 Previous year 244.Compiled by : Asian CERC Information Technology Ltd.940. The company has been sanctioned term loan of Rs.200.80.000 8. Mundra Anjan Malik B.960 51.000 As on 31. D. 120 As on 31. D.2006 56. Mundra (b) Anjan Malik (viii) Auditors Remuneration (Including Service tax): (a) Audit Fees (b) Tax Audit & Fringe Benefit Audit Fee? (c) Taxation and other matters 31.200 600.

657 Previous Year's figures have been regrouped and rearranged wherever necessary. Other information as required by schedule VI is not applicable to the company. the effects of the same on financiais is not quantifiable. the difference between the fair value & the exercise price) will be written off over the vesting period.823. Foreign currency hedged and not hedged : The Company has entered into forward exchange contracts the bifurcation of amount hedged and not hedged is as follows: Currency USD GBP AUD (xiii) (xiv) Amount Hedged INR $ 396. -NIL-NIL- Amount Not Hedged INR $ 191.073 Late** than one year but T „ * _ .ato- than one Year 28. Hence.851 48. Fair value method has been used for valuation to account for ESOP. Balance is not quantifiable. (x) (xi) (xii) The company is engaged in business process outsourcing (BPO) services. The compensation (i. 40496 Place : Mumbai Dated : 25th July 2007 (P.840 8. For and on behalf of eCIerx Services Private Limite For and on behalf of C. M.853.113 6.800.92.669 8. Mundhra) Director (Anjan Malik) Director . (xvi) Not T. Rs.e.011.326.219.1807. Permanent improvements to Leasehold premises and Capitalization on payment basis : The Company has undertaken Permanent improvements and Structural Renovations on leasehold premises we have amortized it over the initial lease period as far as it was readily ascertainable.215 59.37. CHARTERED ACCOUNTANTS (Biren C. For the period ending 31-03-2007.800 1.293 52. il not later than five years. five years 105. Gabhawala) Partner M.362. it does not have any installed or licensed capacity.Compiled by : Asian CERC Information Technology Ltd.has been expensed out and corresponding credit to Stock Option Outstanding.. The vesting period ends on 01-04-2009 and 01-04-08 respectively. GABHAWALA & CO . . No.339. 1. D. Employee Stock Option & Ownership Plan: The option granted to employee under the ESOP scheme is effective from 01-04-2006 and one more on 01-07-2006.280 (xv) Total of minimum future Lease Payments is as follows : Particulars Future Lease Payments. Capitalizaton of some fixed assets is done on payment basis.000 -NIL-NIL.

503 10.340 430.Position of mobilization and deployment of funds (Amount in Rs.767 399. Capital raised during the year (Amount in Rs. Generic names of Principal Product/Services of the Company Item Code No. Expenditure Accumulated Losses IV.'000) Turnover (including other incomes) Total Expenditure Profit Before Tax Net Profit After Tax Earnings Per Share (Rs.191 NIL NIL 76.(ITC Code) Product Description Business Process Outsourcing ForjeClerx Services/' t/Ltd.'OOO) Total Liabilities Total Assets SOURCES OF FUNDS Paid up Capital Stock Option Outstanding Reserves & surplus Secured Loans Unsecured Loans APPLICATION OF FUNDS Net Fixed Assets Investments Net Current Assets Net Deferred Tax Liabilities Misc.Compiled by : Asian CERC Information Technology Ltd.) Dividend Rate (%) Interim 125319 11 31-Mar-07 NIL NIL NIL NIL 293. Performance of the Company : (Amount in Rs.'OOO) Public Issue Rights Issue Private Placement Bonus Issue (((.726 392 V.503 293. Place : Mumbai Date : 25th July 2007 Mundhra) Director (Anjan Malik) Director .546 NIL NIL NIL 862.534 22 216.426 396.125 187 283. State Code Balance Sheet Date II. eCSerx Services Private Limited Balance Sheet Abstract and Company's General Business Profile Registration Details Registration no.

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