ANNUAL REPORT 2012-2013

2012-2013 ANNUAL REPORT 2012-2013 The Governing Council ERNET India is pleased to present the Annual Report of the activities of the Society During 2012-2013 ERNET India An Autonomous Scientific Society under Department of Electronics and Information Technology, Ministry of Communications & Information Technology, Government of India 1

2012-2013 Contents Preface 5-7 The Governing Council 9-11 The General Body 12-14 Corporate Highlights 15 About ERNET India 16-65 Financial Performance 66-114 (Auditor s Report, Balance Sheet & Income-expenditure Statement) 3

2012-2013 Preface Today, networking & collaboration is integral part of every business, education & society. Technologies already support connected communities, anytime & anywhere. ERNET India continues to work very closely with the education & research sector in the country to integrate collaboration into the learning & research environment. ERNET steers IT & ICT projects, bringing cutting edge technologies closer to students, educationists and researchers, facilitating collaboration & innovation. ERNET India was born with the vision that Internet and communications technologies will play a pivotal role in broader, more innovative, and collaborative research and knowledge decimation through ICT. However, the requirements of research and education continue to evolve. The fundamental mission of engineering and operating advanced networking infrastructure is no longer sufficient to satisfy the current and emerging needs of this dynamic R&E community. Indeed, the user base itself of the National Research and Education Network (NREN) is no longer simply research and higher education, but is growing to include a broader social and cultural constituency. To live up to the requirements & aspirations of the user organizations, ERNET periodically revaluates these rapidly changing requirements and venture into new services and activities, at times collaborating and engaging other essential related organisations and NRENs globally. ERNET touches limitless sectors, serving numerous institutions in health, agriculture, higher education, schools, science & technology etc. With its Pan-India Network of 14 Points of Presence (PoPs) at premier academic & research institutions, connecting the community to global research networks through Trans Eurasia Information Network (TEIN3) and National Knowledge Network (NKN). ERNET backbone of terrestrial and satellite links support dual stack IPv6 and IPv4 protocols & Multiprotocol Label Switching (MPLS) providing users with a rich blend of technology. ERNET India in collaboration with different stakeholders is involved in varied R & D Projects spanning the wide domain of 6LoWPAN (Low-power Wireless Personal Area Network) technology, IPv6 Applications, Educational Services in many domains such as Email, Web services & Domain Registration under ac. in, res.in and edu.in, Digital Libraries, Broadband VSAT, Video conferencing etc. ERNET has recently launched eduroam services -one world one connectivity which is the secure, world-wide roaming access service developed for research and education community. With the exhaustion of IPv4 and the ever exploding number of devices hooking on to the internet, adaption of IPv6 has become a compulsion rather than an experiment. ERNET India is creating a Central Facility Centre & a Test Lab by installing different IPv6 enabled equipments for audio, video and data communication and connecting through ERNET s IPv6 enabled backbone network for national and international connectivity. The Mobile test bed includes devices on WiMAX, WLAN and 3G access network & to conduct dual stack mobility tests (DSMIPv6) between IPv4 and IPv6 networks. ERNET India has been shortlisted by DOT for providing consulting service and act as implementer to Government Organizations. As part of Green IT initiative and IP6 consultancy, ERNET is also working of 5

Smart Lighting system for Central & Govt buildings. To enrich the education community, an IPv6 enabled smart classroom facility across the country is being setup for NIELIT centers. Realising the pressing requirement to bring children with disabilities into the mainstream, ERNET India pioneered to educate and to enhance the computer skills of these children. With our focus on enablement of ICT in schools over the years, we have established such infrastructure and associated applications in more than 100 schools for physically challenged children across the country. To empower secluded children in rural areas, recently, Hon ble Sh. Sachin Pilot inaugurated 250 schools in rural areas of Ajmer & Jaipur districts of Rajasthan so as to accelerate socio-economic development by bridging the digital divide with facilities such as e-learning, video conferencing etc via Internet connectivity to explore education, information & advance technologies. ERNET India has not only made landmarks in education but also made benchmarks in area of ICT thereby benefiting various renowned institutions such as Krishi Vigyan Kendras (KVKs) & (Zonal Project Directorates (ZPDs). Besides being in a place of learning, one needs a centre for overall development of one s intellectual, creative, technical and literary self!! There is no science-led development without the attainment of a certain threshold in science and technological capacity and capability, through high-level training, by creating a mentoring network, and special skilling programs. ERNET has hence added another feather to its cap by setting up campus wide network for many of the distinguished institutions like IIT Madras, Delhi University, NIPER Mohali, Jamia Milia Islamia University, Jawaharlal Nehru University, IIITM Gwalior and the list is unending. These efforts will be extended to NIFTEM along with many other renowned institutions. In this way, ERNET helps in creation of a pool of innovators, designers, entrepreneurs by partnering & supporting incubators. To enhance Indian Heritage, Technology Development for Indian Languages (TDIL), DeitY has generated utility applications like Text-to-Speech (TTS), Optical Character Recognition (OCR), Machine translation (English to Indian Languages, Indian language to Indian Language) etc. To preserve the valuable linguistic resources for further enhancement; development and re-use, ERNET India has initiated digital archival of the outcomes of these various Language Technology projects including executable files, project documents, source code, various functional modules and tools along with its dependencies developed by various organizations under funding from Govt. of India. With focus on providing schools with online multimedia resources, Olabs (Online virtual laboratory experiments) will be developed for subjects of Physics & Chemistry for classes 9 th & 10 th through Content Delivery Network (CDN) in English language during 1 st phase and will extend the efforts for other subjects like Physics, Chemistry, Maths, Biology, English for higher classes (9 th -12 th class) in other regional languages namely Hindi, Marathi, Malayalam etc. E-Learning ICT centres are being established in 204 schools in rural and tribal area of Srikakulam, Andhra Pradesh to improve learning outcomes of rural children and also to provide well documented case studies of e-learning practices, and their dissemination. 6

2012-2013 The industry estimate predicts that there would be 50 billion devices connected to the Internet by 2020 with number of devices online will be more than that of people. Current networking technologies are optimized for human-to-human interactions rather than machine-to-machine (M2M) communications. The idea of Internet of Things (IoT) has the potential to enable seamless integration of devices (things) into the Internet infrastructure. ERNET India will create test bed that is geographically distributed between institutions and federated as a common experimental facility connecting to ERNET/ NKN backbone. The proposed test bed will deploy heterogeneous devices and technologies to support R & D experiments, contribution to standards and applications development. Heterogeneous IoT enabling technologies to be configured for experimentation include wireless sensors/ actuators, RFID tags/readers, Near Field Communication (NFC) devices supporting various connectivity options such as IPv6, IEEE 802.15.4, Bluetooth Low Energy, 3G/4G enabling variety of communication stacks. Users can access the IoT testbed infrastructure over the public internet. Finally, it is important to understand that Internet is not a ONE TIME INVENTION rather a tool that needs to constantly evolve time and again to cater different ad-hoc tastes of people and occasionally a re-invention to change how we communicate and how we think. That s why the Internet has to be taken as the biggest Invention than anything else on this planet, simply because it touches the lives of people and it is empowering people across globe. Hence, ERNET plays a pivotal role in expansion and exploitation of the very Internet, a borderless cyberspace, thereby serving many institutions across various sectors, health, agriculture, education, science & technology, R&D, ICT and the list is unending. ERNET India is committed to advancing the network technologies, the science and the engineering, to broadening the horizons, to expanding the reach, to heightening the penetration and hence offers endless applications living up to the requirements of the user community. 7

2012-2013 Governing Council, ERNET (1 st April 2012 to 31 st March, 2013) 1 Shri Kapil Sibal Hon ble Minister of Communications & IT. Department of Electronics & Information Technology, Electronics Niketan, 6, CGO Complex, Lodi Road, New Delhi-110003. 2 Shri J. Satyanarayana Secretary, Department of Electronics & Information Technology Electronics Niketan, 6, CGO Complex, Lodi Road, New Delhi-110003. 3 Dr. Ajay Kumar Joint Secretary Department of Electronics & Information Technology, Electronics Niketan, 6, CGO Complex, Lodi Road, New Delhi-110003. 4 Dr. Anita Bhatnagar Jain Joint Secretary Department of Electronics & Information Technology, Electronics Niketan, 6, CGO Complex, Lodi Road, New Delhi-110003. 5 Shri S. Ramani Deputy Director ISRO 6 Shri R Bhattacharya AS & FA Department of Electronics & Information Technology, Electronics Niketan, 6, CGO Complex, Lodi Road, New Delhi-110003. Chairman Vice Chairman Member Member Member Member 01.04.12 to 30.09.12 9

Mrs. Anita Agnihotri AS & FA Shri J.B. Mohapatra JS & FA 7 Dr. Jagdish Arora Director INFLIBNET Centre Ahmedabad-380 009 Gujarat 8 Prof. R.K. Shevgaonkar Director, Indian Institute of Technology, Hauz Khas, New Delhi-110016 9 Dr. S. S. Mantha, Chairman, All India Council for Technical Education, 7 th floor, Chander Lok Building, Janpath, New Delhi-110001. 10 Shri Nitin Jain, DDG (DS), Department of Telecommunication, Sanchar Bhawan, 20- Ashoka Road, New Delhi-110001. 11 Shri N.K. Sinha, Additional Secretary (TEL), Distance Learning Division, Department of Higher Education, Ministry of Human Resource Development, Shastri Bhawan, New Delhi-110001. 12 Dr. Rameshwar Singh Project Director Directorate of Knowledge Management in Agriculture Indian Council of Agricultural Research New Delhi-110 012 From 01.10.12 to 18.2.13 From 19.02.13 to 31.03.13 Member Member Member Member Member Member 18.10. 2012 to 31.3.13 10

2012-2013 13 Ms. Radha Chauhan Joint Secretary (School Education-I) Deptt of School Education & Literacy, Ministry of Human Resources Development Shastri Bhawan, New Delhi-110001. 14 Shri Shashi Bhushan Director, SOCIS Indira Gandhi National Open University, Maidan Garhi, New Delhi-110068. 15 Shri N. Mohan Ram Director General, ERNET India, 10 th Floor Jeevan Prakash Building, 25, K G Marg, New Delhi 110 001 Dr. Ajay Kumar Director General ERNET India Member Member Member Secretary 01.04.12 to 06.03.2013 Member Secretary From 07.03.13 to 31.03.13 11

General Body (1st April 2012 to 31st March, 2013) 12 1 Shri Kapil Sibal Hon ble Minister of Communications & IT. Department of Electronics & Information Technology, Electronics Niketan, 6, CGO Complex, Lodi Road, New Delhi-110003. 2 Shri J. Satyanarayana Secretary, Department of Electronics & Information Technology Electronics Niketan, 6, CGO Complex, Lodi Road, New Delhi-110003. 3 Dr. Ajay Kumar Joint Secretary Department of Electronics & Information Technology, Electronics Niketan, 6, CGO Complex, Lodi Road, New Delhi-110003. 4 Dr. Anita Bhatnagar Jain Joint Secretary Department of Electronics & Information Technology, Electronics Niketan, 6, CGO Complex, Lodi Road, New Delhi-110003. 5 Shri S. Ramani Deputy Director ISRO 6 Shri R Bhattacharya AS & FA Department of Electronics & Information Technology, Electronics Niketan, 6, CGO Complex, Lodi Road, New Delhi-110003. Chairman Vice Chairman Member Member Member Member 01.04.12 to 30.09.12

2012-2013 Mrs. Anita Agnihotri AS & FA Shri J.B. Mohapatra JS & FA 7 Dr. Jagdish Arora Director INFLIBNET Centre Ahmedabad-380 009 Gujarat 8 Prof. R.K. Shevgaonkar Director, Indian Institute of Technology, Hauz Khas, New Delhi-110016 9 Dr. S. S. Mantha, Chairman, All India Council for Technical Education, 7 th floor, Chander Lok Building, Janpath, New Delhi-110001. 10 Shri Nitin Jain, DDG (DS), Department of Telecommunication, Sanchar Bhawan, 20- Ashoka Road, New Delhi-110001. 11 Shri N.K. Sinha, Additional Secretary (TEL), Distance Learning Division, Department of Higher Education, Ministry of Human Resource Development, Shastri Bhawan, New Delhi-110001. 12 Dr. Rameshwar Singh Project Director Directorate of Knowledge Management in Agriculture Indian Council of Agricultural Research New Delhi-110 012 From 01.10.12 to 18.2.13 From 19.02.13 to 31.03.13 Member Member Member Member Member Member 18.10. 2012 to 31.3.13 13

13 Ms. Radha Chauhan Joint Secretary (School Education-I) Deptt of School Education & Literacy, Ministry of Human Resources Development Shastri Bhawan, New Delhi-110001. 14 Shri Shashi Bhushan Director, SOCIS Indira Gandhi National Open University, Maidan Garhi, New Delhi-110068. 15 Shri N. Mohan Ram Director General, ERNET India, 10 th Floor Jeevan Prakash Building, 25, K G Marg, New Delhi 110 001 Dr. Ajay Kumar Director General ERNET India Member Member Member Secretary 01.04.12 to 06.03.2013 Member Secretary From 07.03.13 to 31.03.13 14

2012-2013 Corporate Highlights Pan-India Network with 14 Points of Presence (PoPs) at premier academic and research institutions across the country and connected to global research network Trans Eurasia Information Network (TEIN3) through National Knowledge Network (NKN) ERNET India joined the eduroam global community by launching the pilot in India. This service once operational would realise the objective of one world one connectivity by providing a secure, seamless world-wide roaming access service over shared virtual wi-fi campuses to researchers and academicians. Seamless backbone of terrestrial and satellite based links beaming on 1.5 Transponder (1.5x54 MHz) space segment in the C-Band with VSAT Hub at Bengaluru As part of its commitment to provide access to the best education using ICT, ERNET is creating Virtual classrooms in 17 NIELIT centers across the country bringing together the best faculty to all these centers Involved in various R&D Projects such as 6LoWPAN & Mobile IPv6 Test bed ERNET India has been empanelled as IPv6 consultant for Government organizations and also set up a Central facility for Testing the different IPv6 applications and Services ICT Centres in 250 Schools in rural areas of Ajmer & Jaipur, districts of Rajasthan Established campus wide network for many of the distinguished institutions. Generated digital archival of Indian languages under Developed Technology Development for Indian Languages (TDIL) Exclusive Domain Registrar for the education and research domains under.in registry edu.in, res.in and ac.in Serving institutions in various sectors, viz., health, agriculture, higher education, schools, science & technology Established more than 100 vocational training centers and ICT centers to enhance computer skills of physically challenged children Establishment of information hubs and e-linkage of Krishi Vigyan Kendras (KVKs) of Indian Council of Agricultural Research (ICAR) and implemented ICT infrastructure in 200 KVKs & ZPDs Developed cloud services for teachers and secondary & senior secondary grade students. The educational cloud services include teaching platform, learning platform, and collaborative platform, which can be accessed from anywhere anytime using any device 15

About ERNET India ERNET India, an autonomous scientific society under the administrative control of the Department of Electronics & Information Technology, Ministry of Communications & Information Technology, is functioning under the overall control and guidance of its Governing Council. The Hon ble Minister for Communication and Information Technology is the Chairman of the Council and the members have been chosen from premier academic & research institutions, government organizations and professional bodies ERNET India is serving academic and research institutions in the country by innovatively connecting them on Intranet and Internet using appropriate state-of-the-art technologies. Institutions anywhere in the country can now be connected to ERNET network. ERNET India provides services through its following 14 Points of Presence (PoPs) located across the country, which help in rapidly responding to the needs of the institutions in the country: Centre for Development of Advanced Computing (CDAC), Mumbai ERNET India HQs, New Delhi Indian Institute of Information Tech. & Management, (IIITM), Trivandrum Indian Institute of Science (IISc), Bengaluru Indian Institute of Technology (IIT), Guwahati Indian Institute of Technology (IIT), Kanpur Indian Institute of Technology (IIT) Madras, Chennai Inter-University Centre for Astronomy and Astrophysics (IUCAA), Pune Orissa Computer Application Centre (OCAC), Bhubaneswar Raja Ramanna Center for Advanced Technology (CAT), Indore University of Hyderabad (UoH), Hyderabad University of Rajasthan, Jaipur Variable Energy Cyclotron Centre (VECC), Kolkata VSAT Hub at Software Technology Parks of India (STPI), Bengaluru All PoPs are equipped to provide access to Intranet, Internet and Digital Library through terrestrial leased circuits and radio links to the user institutions. These PoPs also provide technical support and hand-holding to user sites. The PoP at STPI Bengaluru provides Intranet and Internet access through Satellite. In addition to 14 PoPs, ERNET India has setup regional centers at following 3 locations:- Bengaluru Chennai Mumbai 16

2012-2013 ERNET Network Architecture The ERNET network is a judicious mix of terrestrial and satellite based wide area network. The satellite Wide Area Network (WAN), using Very Small Aperture Terminal (VSAT) technology, has facilitated reliable and quick access to remote areas. The ERNET terrestrial WAN provides backbone links between the PoPs. The two networks converge at the ERNET Hub in STPI, Bengaluru. The Mumbai PoP is connected to pan-european Education and Research Network (GEANT) and Trans Eurasia Information Network (TEIN3) through NKN. ERNET PoPs have one or more routers depending on the number of users connected to the PoP. Following are the salient features of the ERNET backbone: MPLS Enabled Dual stack support- Both IPv4 and IPv6 High Capacity Backbone Scalable, Secure and Guaranteed QoS Support for IPv4 / IPv6 MPLS VPN services Multicast enabled VPN for running Multicast applications During the year, ERNET India progressed on the up gradation of Network and other infrastructure at ERNET PoPs. Routers & Switches have been upgraded at five PoPs of ERNET India. New Equipments have been integrated into ERNET backbone.ups have been also been upgraded at seven PoPs. The ERNET Backbone has been migrated to National Knowledge Network (NKN) with backbone bandwidth of 100 Mbps (upgradable to 1 Gbps) 17

IPv6 Enabled Network ERNET network supports IPv4 and IPv6 Internet Protocol in native mode with dual stack, unicast and multicast. IPv6 routing protocol OSPFv3, end-to-end Ethernet services, QoS (DiffServ), video conferencing, authentication and authorization have also been implemented on ERNET Network. Fig: 1 IPv6 Enabled MPLS Backbone 18

2012-2013 Fig: 1-A 19

20 Fig: 2

2012-2013 VSAT Network ERNET India operates a VSAT network in C-Band using INSAT satellite for providing Internet & Intranet access to education and research institutions located all over the country. The Master Earth Station (MES) which is also functioning as the Network Operations Centre (NOC) is located at Bengaluru. ERNET VSAT network is operating in the C-Band of RF spectrum on INSAT-3C satellite. The MES is equipped with 9.2 meter antenna and is connected to ERNET terrestrial backbone through a dedicated high speed link at Bengaluru. The VSAT network provides two types of links/services, viz., TDM / FTDMA based Broadband VSATs and SCPC VSATs. Distinguishing feature of VSAT links provided by ERNET India: ERNET VSAT Network operates in C-band of satellite transponder space, therefore VSAT links provided by ERNET India are least affected by rain and other weather conditions. Our VSAT links provide a high degree of reliability and continuous operation all over the country. Our VSATs work efficiently even in difficult and far flung areas of Andaman and Nicobar & Lakshadweep Islands in all weather conditions. Fig: 3 The Master earth station (MES) at ERNET India, Bengaluru 21

Network Traffic Growth During the year, for providing better internet access to its users, ERNET has upgraded its Network Infrastructure. Routers, Switches, UPS etc. have been upgraded at various PoPs of ERNET India. ERNET increased its upstream bandwidth to reduce network utilization problem. Most of the customers have increased their bandwidth requirement and the demand is rising continuously. At present, ERNET PoPs provide four types of services, namely, Access Services, Application Services, Hosting Services and Operations Support Services. Fig: 4 POP Infrastructure 22

2012-2013 Access Services Access Services at the ERNET PoP comprise of services that provide access to the ERNET network. Subscribers use leased terrestrial lines, radio links and VSATs with bandwidth varying between 128 Kbps to 45 Mbps to connect their networks to ERNET. Terrestrial Leased Link Leased lines are typically symmetric and use two wire local loops upto local exchange and hence to the customer end (Fig.5). This kind of connectivity is suitable where telecom network is well developed and dedicated leased line can be hired from basic service providers. Such links are primarily for nx64kbps and nmbps speeds. ERNET is also delivering Internet bandwidth to its users through MPLS cloud in local loop. ERNET users are connected to MPLS VPN created on the telecom service provider s network (Fig 6). The telecom service providers aggregate such user and bring them to ERNET PoP to deliver Internet bandwidth. Fig: 5 Point to Point Link 23

Fig: 6 Access Through MPLS Cloud Radio Link and 802.11 This kind of connectivity requires line of sight clearance from the network node to the concerned user site. Such types of networks have distance limitation of 30 to 40 Kms TDM/FTDMA based Broadband VSAT ERNET TDM/FTDMA based Broadband VSAT network architecture is a two-way star topology. The Broadband VSAT links have common outbound capable of reaching upto 66Mbps. It supports all standard IP applications such as broadband Internet/Intranet, VoIP, IP multicast, video conferencing, etc. These VSATs are cost effective and capable to provide bandwidth upto 2Mbps. SCPC VSAT ERNET Single Channel Per Carrier (SCPC) VSAT provides point-to-point connectivity in star topology by configuring SCPC modems. Both Outbound and Inbound carriers are dedicated in SCPC VSAT for bandwidth assignment to the institute. The SCPC VSAT is capable of providing bandwidth upto 2.0 Mbps which is suitable for large institutions having large LAN and running critical applications requiring high uptime. Applications Services Network Application Services comprise of applications provided for ERNET subscribers. Mail relaying and backup mail exchange for better utilization of bandwidth, domain name service, video multicasting and hosting services are the basic and most required services provided for ERNET customers. 24

2012-2013 Mail Relay Mail relay service is one of the major network application services provided to ERNET users. The main aim of the service is to provide Mail exchangers (MX) for incoming mails to ERNET subscribers. The service is made more reliable by holding the mails destined to users in the event of failures at the user end. The mail relay server not only makes the service reliable, but also filters non-genuine (spam) mails and infected mails coming to the user mailing sites as well. Fig: 7 Mail Server Setup 25

The ERNET team is well trained in spam/virus filtering applications so as to be able to customize and fine tune the applications as per customer needs. AVGW (Anti Virus Gateway) module has also been configured (Fig.7). The spam filters in AVGW classify email upon entry to a customer's site. Virus engines protect users from email borne viruses. AVGW contains an integrated SMTP engine in order to send emails. A direct connection with the destination server is established; wherein mails are tested for spams and then forwarded to user-end mail exchanger. Domain Registration ERNET India is an exclusive domain registrar for the education and research domains registering the domains under the.in registry from 2005. The domain registration process is fully automated having facility of filling online registration form, online renewal and updation of domain. A helpdesk is operational to answer queries of domain registrants. Registrants also enjoy facility to check availability for the domain on http://www.registry. ernet.in (Fig.8). During 2012-13 a total of 3696 domains under edu.in, ac.in and res.in have been registered and renewed by ERNET India for academic, educational and research organizations across the country. 26 Fig: 8 Registration Process on Domain Registration Website

2012-2013 Hosting Services ERNET India has been hosting on its website educationally informative content and a digital library developed for the education & research community. About 40 web sites are hosted on ERNET India servers under the most secure hosting environment. They are well protected by firewalls and intrusion detection systems, providing features such as auto updating and mirroring for redundancy. NIFTEM, ICAR and NBT website and several other important websites of various universities are hosted on ERNET India servers with 24x7 uninterrupted access. ERNET India also does penetration test for the vulnerability assessment of all the hosted websites and implements the results of these tests to make the website fully secure. Snapshot of the new web sites that have been hosted on ERNET India servers during 2012-13: National Book Trust India http://www.newdelhiworldbookfair.gov.in Director of wheat Research, karnal http://www.dwr.res.in/ Snapshot of hosted website (http://www.newdelhiworldbookfair.gov.in) Fig: 9 27

Snapshot of hosted website (www.dwr.res.in) Fig: 10 28

2012-2013 Operations Support Services These services have been evolved at our PoPs by way of development of tools needed to monitor the operational elements of PoP effectively. Service Monitoring and Reporting ERNET PoPs continuously monitor the performance of peering, backbone and user links. The measurements include: Link availability Link utilization Break up of traffic generated by respective sites The services for which we measure the performance metrics include web, ftp, e-mail, etc. The web download session throughputs obtained by the users at the user site are measured. A Service Level Report (SLR) is sent to the users every month. ERNET India generates monthly statistics for: e-mail traffic Spams Infected mails Network Operation Centre ERNET India is using combination of open source softwares such as MRTG, CACTI and Nagios customized to ERNET requirement for traffic monitoring, link performance monitoring and to generate alerts which is integrated with the messaging system to generate instant alerts. The Network Operation Centre is being managed by skilled professionals to provide all necessary support to ERNET users. A round the clock helpdesk provides efficient resolution of customer problems. Network monitoring and Alarm system at ERNET NOC at IISc helps in taking proactive measures in case of any inconsistency in the NOC. The anti-virus system protects against viruses, worms, trojans and hackers. 29

User Support/Help Desk Centralized service desk with trouble ticket generation has been set up for logging complaints related to DNS, Dialup, RF and VSAT users of ERNET. A toll free number (1800-112436) service is provided for complaint logging on 24x7 basis. Network alarms and monitoring system at ERNET NoC helps the team in taking proactive measures in case of any inconsistency in the NoC. ERNIC (ERNET Network Information Centre) ERNIC provides Internet Protocol (IP) address space (both IPv4 and IPv6) and in-addr. arpa domain delegations to its customers. The various activities performed by ERNIC include: 1. Assign IPs to various PoPs & users (terrestrial as well as SATWAN). 2. Collect information about administrative and technical contact person from each customer location and create NIC handle for them. 3. Update Information about inetnum objects (the range of IP address space described by the object) in the APNIC database. 4. Co-ordinate with various PoPs for creating reverse DNS zones on name servers and register the reverse domains with APNIC. 5. Take appropriate actions on the complaints received regarding any illegal usage of ERNET resources. 6. Create and specify IRT objects for all the Internet resources allocated to ERNET India and its customers. SPAM Filter 1. ERNET has installed SPAM filters in the mail servers at its PoPs. 2. Apart from installing anti-spam filters, ERNET has also written scripts to generate reports that give the number of spams and virus mails filtered. 3. The alarms generated by scripts help ERNET in taking active measures without any delay. 30

2012-2013 ERNET website http://www.eis.ernet.in,apart from providing general information about the PoPs also provides the following information regarding users Internet usage: Online service-wise usage. Status of the link (up/down time). The amount of non-standard traffic (for the users to check for unwanted traffic hogging their Internet access link). Traffic Analysis for NCIPM 24Mbps Daily Graph (5 Minute Average) Max Average Current In 1933.4 kb/s (1.9%) 248.4 kb/s (0.2%) 516.6 kb/s (0.5%) Out 15.2 Mb/s (15.2%) 1587.4 kb/s (1.6%) 2287.3 kb/s (2.3%) Weekly Graph (30 Minute Average) Max Average Current In 2801.2 kb/s (2.8%) 181.6 kb/s (0.2%) 484.1 kb/s (0.5%) Out 7997.7 kb/s (8.0%) 830.1 kb/s (0.8%) 2930.7 kb/s (2.9%) 31

Monthly Graph (2 Hour Average) Max Average Current In 13.5 Mb/s (13.5%) 883.8 kb/s (0.9%) 397.2 kb/s (0.4%) Out 14.0 Mb/s (14.0%) 1131.5 kb/s (1.1%) 4047.0 kb/s (4.0%) Yearly Graph (1 Day Average) Max Average Current In 6795.4 kb/s (6.8%) 660.9 kb/s (0.7%) 246.0 kb/s (0.2%) Out 47.5 Mb/s (47.5%) 585.5 kb/s (0.6%) 1460.6 kb/s (1.5%) GREEN BLUE Incoming Traffic in Bits per Second Outgoing Traffic in Bits per Second Fig: 11 32

2012-2013 Traffic Monitoring of VSAT Network The network traffic monitoring tool provides a web based live visual representation of uplink and downlink traffic of VSAT network. Current, daily, weekly, monthly & yearly uplink and downlink data rates are presented in the form of figures & graphs. It helps to keep track of the status of WAN links so that users can be served in a better way. The link level monitoring is done at the VSAT Hub. This information is pooled and used to provide support to VSAT users. Overall activities are coordinated and monitored by ERNET Headquarters, New Delhi. ERNET VSAT Hub at Bengaluru monitors following parameters/ status of links: Proactive real-time monitoring & management Inbound/Outbound report Location wise Active/Inactive/Down Status report of VSATs Diagnosis of downtime and fault detection Alerts on network status VSAT-wise usage reporting Network Management System along with the device Net Enforcer is being used for traffic engineering of Broadband VSAT network. It is used to identify, classify, prioritize, and shape network traffic per application per user. The device is integrated and interfaced with central Network Management System (NMS) of ERNET India. It helps to control the entire network with the generation of all relevant reports and monitor the status and traffic of remote VSAT locations from the Hub. The NMS and the device are used for the following : Identification of hundreds of applications and protocols out-of-the-box. Flexible traffic prioritization/shaping based on QoS policy definitions. Proactive alarms. Policy-based connection control. The Hub generates the following reports on the VSATs: Location wise status Details of actual traffic usage Details of down & inactive status In/Out transmitted packets Number of live new links Most active protocol Active clients and bandwidth used by them 33

Bandwidth Utilisation graph of BBVSAT link at College of Agriculture, Karekere, Hassan, Karnataka on 19 th August-2012 Fig: 12 In-Out Transmitted Packets of BBVSAT link at National Research Centre of Agro Forestry, Gwalior Road, Jhansi on 14 th March-2013 34 Fig: 13

2012-2013 Live connections for BB VSAT link at College of Agriculture, Nanded Road, Latur-413 512 Maharashtra on 23 rd August-2012 Fig: 14 Most Active Protocol of BB VSAT link at National Research centre on Mithun, ICAR Research complex, Jharnapani, Medziphema, Nagaland on 5 th February-2013 Fig: 15 35

Most Active Client of BB VSAT link at Centre of Plasma Physics, Institute for Plasma Research, Kamrup, Assam on 23 rd November-2012 Fig: 16 Most Active server (transmit path) of BB VSAT link at Kittur Rani Chennamma College Of Horticulture, Arabhavi, Belgaum, Karnataka on 17 th Jan-2013 36 Fig: 17

2012-2013 Traffic Analysis for SCPC VSAT at Central Agricultural Research Institute, Port Blair, Andaman & Nicobar Islands. VSAT link utilization for the date 31.03.2013 (Daily) Max Average Current In 502.8 kb/s (2.4%) 182.8 kb/s (0.9%) 502.7 kb/s (2.4%) Out 1947.4 kb/s (9.3%) 506.8 kb/s (2.4%) 27.5 kb/s (0.1%) VSAT link utilization for the period 24.03.2013 to 31.03.2013 (Weekly) Max Average Current In 502.4 kb/s (2.4%) 118.4 kb/s (0.6%) 501.3 kb/s (2.4%) Out 2009.1 kb/s (9.6%) 432.5 kb/s (2.1%) 47.7 kb/s (0.2%) 37

VSAT link utilization for the month March-2013 (Monthly) Max Average Current In 484.3 kb/s (2.3%) 85.7 kb/s (0.4%) 484.3 kb/s (2.3%) Out 2008.0 kb/s (9.6%) 378.0 kb/s (1.8%) 414.6 kb/s (2.0%) VSAT link utilization for the period Mar-2012 to Mar-2013 (Yearly) Max Average Current In 446.8 kb/s (2.1%) 77.7 kb/s (0.4%) 117.7 kb/s (0.6%) Out 1379.2 kb/s (6.6%) 339.1 kb/s (1.6%) 295.5 kb/s (1.4%) Fig: 18 38

2012-2013 PROJECTS AT ERNET India Mobile IPv6 Test bed - Mobility between heterogeneous access networks Mobile IPv6 Test bed for mobility management over heterogeneous access networks is a joint project between ERNET India and Indian Institute of Science (IISc) Bengaluru which is funded by DeitY. This project objective is to deploy Mobile IPv6 testbed and study network layer mobility management issues, design typical mobility scenario and measure performance metrics such as handover latency, packet loss and also conduct dual stack mobility tests (DSMIPv6) between IPv4 and IPv6 networks. The Mobile IPv6 testbed includes WiMAX, WLAN and 3G access networks connecting IPv6 enabled ERNET backbone for mobility demonstration. Fig: 19 DSMIPv6 Testbed setup connected to ERNET backbone DSMIPv6 is an extension of Mobile IPv6 supporting mobility irrespective of IPv6/IPv4 networks. Fig. 19 shows how the DSMIPv6 Mobility demonstrated with heterogeneous access networks connected to ERNET IPv6 backbone network. The seamless network layer mobility test between different WLAN subnets was completed successfully and subsequently, the following Mobile IPv6 experiments are carried out: (i) WLAN to WiMAX and vice versa. (ii) Mobility between IPv4 to IPv6 using Dual Stack Mobile IPv6 (DSMIPv6) and flow mobility experiments (IFOM). (iii) Integrate Dual stack mobility test bed with VHO algorithm to manage handoff. 39

Fig: 20 WiMAX Test bed Setup As a follow up to the current Mobile IPv6 project following activities relevant in areas such as Distributed Mobility Management and Ad hoc On-Demand Distance Vector Routing is planned. 40

2012-2013 6LoWPAN - Management and Monitoring of Wireless Sensor Networks Prototype a 6LoWPAN network towards managing utility based Wireless Sensor Networks is a joint project between ERNET India and IISc Bengaluru, funded by DeitY. The Lowpower Wireless Personal Area Network (LoWPAN) standard (IEEE 802.15.4) has enabled important new class of wireless sensor applications. The 6LoWPAN adaptation layer (IETF RFC4944) enables end-to-end IP by integrating the resource constrained LoWPAN network to the existing IPv6 backbone infrastructure. In this project, we have achieved SNMP based monitoring of 6LoWPAN networks and demonstrated with agricultural monitoring use case. ERNET India is collaborating with ICAR institution for the field deployment of sensors and working with Soil Sciences Division of Indian Institute of Horticulture Research (IIHR) Bengaluru for agriculture demonstration. As IIHR is connected to ERNET, it enables endto-end IPv6 communication connecting 6LoWPAN field network to ERNET IPv6 backbone. An intermediate device, the Netgear WNDR 3800 router was configured to function as Ethernet/6LoWPAN gateway connecting the ERNET/IIHR IPv6 Ethernet and the 6LoWPAN network connecting to soil sensors. This enables soil parameter monitoring over the internet using SNMP protocol. Further, IETF Constrained Application Protocol (CoAP) designed specifically for machine-to-machine application scenario is also being utilized. Fig: 21 Field Deployment at Soil Science Division (IIHR) Fig. 21 shows the field deployment of 5TE soil sensors at Soil Science Division (IIHR). Fig. 22 shows remote deployment of sensors, where the support for IPv6 is not available, we have used 3G dongle (IPv4 only) connecting to the 3G/6LoWPAN gateway. In order to achieve an end-to-end IPv6 connectivity between management node and remotely deployed WSN, we used a dual stack host at ERNET center running OpenVPN server and Panda board configured as 3G/6LoWPAN gateway running the OpenVPN client. A 6-in- 41

4 tunnel establishes connection between the gateway and OpenVPN server, and this communication channel enables end nodes reachable with its global IPv6 address. Fig: 22 Remote field deployment using 3G/6LoWPAN gateway This project has been successfully completed in November, 2012. The project results and approaches are published in the following conferences: 1. Leveraging CoAP towards monitoring agriculture sensors network in 8 th International conference on Wireless Communication and Sensor Networks (WCSN), Thailand, 19-23 December 2012. 2. Soil Property Monitoring Using 6LoWPAN-enabled Wireless Sensor Networks in 3 rd National Conference on Agro-Informatics and Precision Agriculture (AIPA), Hyderabad,1-3 August 2012. 3. WSN monitoring for agriculture: comparing SNMP and emerging CoAP approaches in Texas Instruments India Educators Conference - 2013 (TIIEC 2013), Bengaluru, 4-5 April 2013. 42

2012-2013 Virtual Scalable Educational Services for Schools (VSESS) ERNET India is executing an R & D project Virtual Scalable Educational Services for Schools (VSESS) funded by Department of Electronics and Information Technology (DeitY). The major objective of this project is to see how the economic benefits of Cloud as seen by the business enterprises can be extended to educational domain. ERNET India will develop cloud services that are suitable for secondary and senior secondary students/teachers. The educational cloud services (Fig 23) include teaching platform, learning platform, and collaborative platform. All the educational services in the cloud can be accessed from anywhere anytime using any device like smart phone, Tablet, Netbooks etc. Fig: 23 Proposed Educational Cloud Services ERNET India has signed a MoU with Kendriya Vidyalaya Sangathan for implementing VSESS project. This project is being implemented in two stages. During the first stage, ERNET India has conducted user requirements survey in the identified KV schools involving principals, teachers and students to identify suitable educational cloud services. Based on the network feasibility tests, four schools in Delhi, 4 schools in Bengaluru and 6 schools in Chennai have been connected to ERNET regional centers through fiber optic network over layer 3 MPLS cloud. ERNET regional centers will host cloud infrastructure providing educational cloud services over MPLS VPN and also internet services. Fig.24 shows the network elements(media converter, Metro Ethernet Switch, Power Module etc.) installed at one of the KV schools (KV Hebbal, Bengaluru). 43

Fig: 24 Network Elements Installed at KV schools During the prototyping phase,ernet Bengaluru and Chennai centers will host educational cloud infrastructure like compute servers, Unified storage, Thin clients, Smart class room accessories with smart interactive projector, visual presenter, wireless teaching slate and VM platforms (VMware, Citrix, Hyper-V) for evaluating various teaching and learning approaches over cloud. The KV schools connected are installed with two Desktop PC s and UPS for access demonstrations. Suitable Open Educational Resources and other DeitY funded e-learning contents are being considered for hosting. ERNET India will also carry out Research & Development activities focusing on some of the challenges in cloud computing like Virtual Machine (VM) management, VM scheduling, resource scalability and data management issues. Based on the PoC, a detailed architecture will be finalized for the implementation of Phase II with ERNET Delhi, Bengaluru and Chennai hosting the cloud infrastructure, and one model smart classroom and Thin Clients will be setup at each of the identified KV schools for accessing the cloud. 44

2012-2013 Setting up the eduroam services in India eduroam stands for education roaming. It is the secure, world-wide roaming access service developed for the international research and education community. It allows students, researchers and staff from participating institutions to obtain Internet connectivity across campus and when visiting other participating institutions by simply opening their laptop and working on local Wi-Fi network. ERNET would act as the Indian eduroam operator and will be central point for connecting all the universities/institutes with access to the Indian eduroam national federation service. ERNET will allow eligible students, researchers and staff from participating institutions access to Internet connectivity at eduroam institutions globally. A project proposal has been approved by DeitY. Establishment of Central Facility for Testing of IPv6 applications & Equipments The project is aimed at creating a Central Facility Centre/ Test Lab by installing different IPv6 enabled equipments for audio, video and data communication and connecting through ERNET s IPv6 enabled backbone network for national and international connectivity. It will facilitate various government institutions / ERNET users & other users interested in IPv6 deployment for their different testing and analysis needs in the field of IPv6 technology and applications. A project proposal has been approved by DeitY. The procurement for the project is under process. IPv6 Consultancy The IPv6 task force formed by the Govt. of India envisages that all Government Departments and Organisations should become IPv6 enabled in 2012, as per Road Map-1 released by DOT Based on the same and to ensure that technically competent organisations should only act as Consultants and implementers for Government bodies, DoT formally went through a rigorous evaluation process and empanelled ERNET India for providing consulting service and act as implementer to Government Organizations. Setting up Repository of Digitized Data under the Digital Library Initiative Department of Electronics and Information Technology is funding various projects for digitization and creation of free to read searchable collection of 1 million books. The scanning of these books is being done at various institutes all over India. The digitized data is being hosted at SERC, Indian Institute of Science (IISc), Bengaluru as Main Site. To set-up a Mirror Site of the digitised data repository, DietY had funded a three year project titled Setting up Repository of Digitized Data as Mirror Site under the Digital Library Initiatives at a total cost of Rs 129.30 lakhs in August, 2009. As part of this project, ERNET India is to set up a repository for hosting the digitized data as Mirror Site and provide Internet 45

bandwidth to three centres namely IISc Bengaluru, IIIT Hyderabad and CDAC Noida. The digital data repository has been set-up at ERNET PoP in Pune and all the available data from IISc Bengaluru has been downloaded and hosted in the new repository. The portal for the Mirror Site data repository is under the domain www.dli.gov.in. ERNET India has upgraded the storage of this data repository recently and managing day to day operations of the DLI Mirror Site, hosted at ERNET PoP in Pune. e-linkage of Jawahar Navodaya Vidyalayas Navodaya Vidyalaya Samiti (NVS) under Ministry of Human Resource Development has taken VSAT connectivity from ERNET India for its Vidyalayas located in far flung and remote areas of the country. The effort aims to integrate IT into the learning environment at these distant schools, enable schools to share their resources and use distance education mode to improve the quality of education. In this endeavor, Broadband VSAT connectivity is operational in 36 JNVs located in remote areas of the country viz. North-East region, Andaman & Nicobar and Lakshadweep Islands. MOU with Kendriya Vidyalaya Sangthan Under an MoU, Kendriya Vidyalaya Sangathan (KVS) and ERNET India had agreed to set up KVS Net connectivity to remote Vidyalayas under KVS, to provide them Internet access by using ERNET services, expertise and network infrastructure. Presently, ERNET is providing connectivity in around 25 Vidyalayas which are located in remote parts of the country. Community Information Centres Vidyavahini (CIC-VVs) CIC-VVs are operational in the Government schools located in Andaman & Nicobar Islands and Lakshadweep Islands. These centres are providing unlimited web access to Internet applications, e-contents on variety of topics such as the arts, economics, biographies, history, languages, mathematics and philosophy to the schools. The project is facilitating various services such as e-mail, access to various socio-economic databases, e-newspapers, e-procurement, grievance redressal and weather information. ICT Vocational Centres for Children with Disabilities-Phase II In India, according to Census, 2001 more than 21 million people (2.1 per cent of the population) were suffering from one or the other kind of disability. And the percentage of people with disability has been steadily increasing. In India, in spite of a lot of efforts to increase the enrolment in schools for children with disabilities, they remain the least educated. 46 Realizing this pressing requirement and to bring these people into the mainstream, the Department of Electronics and Information Technology (DeitY) has funded ERNET India to work on initiatives to enhance the computer skills of children with disabilities such as Low vision/ Blind, Hearing Impaired, Spastics, Physically Impaired and children with multiple disabilities.

2012-2013 Thus, ERNET India had initiated the project in two phase approach. During pilot phase-i proof of concept (PoC) ERNET India had setup 21 ICT vocational training centres-11 in the National Capital Region of Delhi and 10 in the state of Tamil Nadu. DeitY/ERNET supported the pilot project up-to Nov-2009. Later to make a substantial impact on different socio-economic-cultural circumstances, the project was extended to 101 schools all over the country, under phase-ii. ERNET India has established first lot of 50 ICT centers in 2010 & 49 ICT Centers in 2011 & remaining 02 centers in 2012. Each Centre is equipped with desktop computers, server, assistive tools for the disabled children, LAN environment, computer furniture and uninterruptible power supply. The schools have provisioned with internet access, applications, contents and instructors for imparting training to disabled children. Special courses including models on computers, usage of assistive devices, English language, and personality development is also designed. Under the project ERNET India had established these centers in 97 cities of 27 states and 4 UT s for children with disabilities. During 2012, these ICT Vocational centers were under support for maintenance, salary of computer instructors and Internet connectivity. ERNET India had also submitted a proposal in DeitY to launch phase-iii of the project to setup new 100 such centers & support for the existing 101 ICT centers of Phase-II for functioning & sustenance. The project is successfully completed on 31.03.2013 with the outcome & achievements as anticipated in the beginning of the project. To analyze the outcome of phase-ii of the project an impact study was conducted across the country. Outcome & Impact of ICT Centers on disabled students conducted across India: From the Impact study survey report drastic improvement are observed after the establishment of these ICT Vocational Centers. 1. The impact is not only reflected on students but there are far reaching impact on their parents, their teachers, their relatives, and awareness of the communities around. 2. The overall education system in schools is improved as mainstream subject were also included & being taught through assistive technologies deployed in centers. The interpersonal communication of students is enhanced. 3. The 196 Computer instructors/ teachers were trained for imparting computer knowledge to students and they have further trained another 105 teachers of other subjects in their respective schools on usage of assistive tools over computers. 47

4. In statistics following impact presented herewith: 5. The students are now able to engage in self-study through internet and computers. Building vocational skills along with studies has given confidence to the unsure and unaware and till now secluded children. 6. The students' approach to life and their studies has improved. The students are more confident and take pride in learning. There has been an increase in their confidence after the use of computers. ICT Centres in 250 Schools in rural areas of Ajmer & Jaipur, districts of Rajasthan ERNET India had signed a Memorandum of Understanding (MOU) in 2011 with State Government of Rajasthan to establish Information & Communication Technologies (ICT) centres (labs) in 250 Schools located in rural areas of Ajmer & Jaipur districts of Rajasthan. These ICT Centres are intended to accelerate socio-economic development in the region and to achieve "freedom from distance" and bridging the digital divide for the students of rural community by provisioning state-of-the-art ICT infrastructure model in schools with facilities such e-learning, video conferencing, educational contents & Internet connectivity to access these resources. The ICT centers enhance the learning capabilities of students using these technologies and applications. These centers will enable students of rural areas to get connected with rest of the world and explore education, information & advance technologies. After successful commissioning of ICT labs in 250 schools by July' 2011, a Network operation Center (NOC) cum Datacenter was established in May'2012 at the premises of Department of Secondary Education in Ajmer to monitor and manage services of e-learning, video conferencing, hosting of educational contents, provisioning of Intranet/ Internet connectivity and help desk for resolving issues reported by schools, if any. 48

2012-2013 Subsequently, considering the tough terrain of Ajmer, network solution on microwave RF architecture was implemented and all the 250 schools were connected on Intranet by creating VPN. An aggregate bandwidth is terminated at Data Center for accessibility of Internet by all the 250 schools. An NMS tool is also deployed for monitoring & link management of all the schools. The e-learning application installed in datacenter delivers self study contents to students with modules course & examination management, collaboration platform, e-contents based on the syllabus of Rajasthan Education board/ncert, e-content creation & sharing software, quiz & tests, web casting of learning materials/lectures, etc. Teachers and students are using chat/webcast facilities and are collaborating among themselves for knowledge sharing and problem resolution. The e-learning software also facilitates teachers/students for developing/uploading their own lectures/ presentation for dissemination of knowledge. Fig: 25 ICT Lab at School e-learning Datacenter, Ajmer To get optimum benefits of these ICT labs a teachers training was conducted for 250 school teachers of Education Department of Rajasthan for maintaining ICT labs, gaining IT knowledge & to promote use of IT in rural schools. The training was based on the basic & advance course of word processing, spreadsheets, Presentation, open source, Internet, networking, etc. More induction training are proposed to be conducted in future for updating the IT knowledge & to empower them to give quality education to students, in order to achieve the project's objective. 49

Fig: 26 Live video conferencing with schools during Inauguration by Hon'ble MoS Shri Sachin Pilot On 17.10.2012, the project was inaugurated by Hon'ble Sh Sachin Pilot, MoS (C&IT) at Government Secondary School, Parasia, Silora block, Ajmer in which Hon'ble MoS has started the e-learning facility in ICT labs & done live video conferencing with few schools concurrently from the stage. The project is highly applauded by MoS. Setting up of Digital Archival facility for Outcomes of the various Language Technology projects along with dependencies Technology Development for Indian Languages (TDIL), DeitY has reached such a platform through its various projects, where it has a potential to generate utility applications, benefiting the masses, which will enable people to access and use IT solutions in their own Indian regional languages. Some of the utility applications are Text-to-Speech (TTS), Optical Character Recognition (OCR), Machine translation (English to Indian Languages, Indian language to Indian Language) etc. 50 To preserve these valuable linguistic resources for further enhancement; development and re-use, ERNET India has initiated digital archival of the outcomes of these various Language Technology projects including executable files, project documents, source code, various functional modules and tools along with its dependencies developed by various organizations under funding from Govt. of India. These resources can be securely distributed as and when required in future to researchers for further research or new development in the linguistic field. Modules of these resources can be utilized for Technology transfer. With the fast growth in change in technology, it may be possible

2012-2013 that dependencies of these resources/modules may not available in future and might be required for some product development. To disseminate the various language technology projects so that R&D organization can use the existing research work for further development of the product and even for developing new multilingual technology, Online Web Portal is being developed. This portal will enable archiving, storing, modifying, uploading and retrieving of source codes of the relevant projects as per the user rights. All data will be archived in the database of the system on the storage. It will provide a secure environment where only authorized users can access the system. Various Access controls will be implemented. Security will be maintained at network level as well as application level. Version Control System will be implemented at System/subsystem/module level. Extensive Audit-trails at user and folder level on separate actions, and between specific date/times will be maintained. e-linkage of Krishi Vigyan Kendras under ICAR Under an MOU with ICAR, ERNET India had established a dedicated VSAT Hub and deployed ICT Infrastructure at 200 KVKs/ZPDs under ICAR & developed them as information Hubs. ERNET India has to monitor the operation and management of the facility. The facility is operational & being used for Internet Access, E-mail and Voice Communication on 24x7 basis. Video Multicast, regular talks, lectures and seminars are being delivered from the Hub by domain experts on weekly basis for officials of the KVKs/ZPDs. ERNET India is supervising operation management and support of Hub and also liaisoning with Department of Space, DOT & NOCC. A dedicated team of engineers has been deputed for 24x7 operations of the facility. The network has connected remote KVKs/ZPDs with the technology institutions of the ICAR and thus provides immense benefits to the farmers. The video channel, web portal, VoIP and Internet are facilitating creation of awareness among the farmers and the youth of the country about improvements in agriculture technologies. Following are the Key features of the KVK VSAT network: It operates in C-band using transponder space segment on INSAT-3C satellite subleased from ERNET India. It has one outbound (13Mbps) and 18 Inbound (416Kbps) channels. It is based on state-of-the-art technology and guarantees Hub uptime of 99.9% and VSAT uptime of 99%. It is being managed and controlled through a Network Management System (NMS) deployed at the Hub. It is secured through Access List, Firewall and Intrusion Prevention System. It provides e-connectivity to 200 Krishi Vigyan Kendras and Zonal Project Directorates spread across the country. 51

Following facilities have been provided at each of the KVK/ZPDs: Access to Internet related applications on a 24x7 basis. Voice calls (VOIP) and Fax messaging facility between KVKs/ ZPDs/ Hub. Access to Video channel broadcast and webcast on 24 hours basis from Hub through a web portal. KVKs/ZPDs are equipped with a Server, five desktop PCs, LAN, scanner, printer, and computer furniture to act as information hub for storing and disseminating information on agriculture and also providing online and offline guidance to the farmers. The network has connected remote KVKs/ZPDs with the technology institutions of the ICAR and thus provides immense benefits to the farmers. The video channel, web portal, VoIP and Internet facilitate creation of awareness among the farmers and youth of the country about improvements in agriculture technologies. With the success of this project, ICAR is considering to extend this facility to remaining KVKs as well. Fig: 27 KVK VSAT Network designed, established and maintained by ERNET India 52

2012-2013 Fig: 28 Central Earth Station at KAB-I, ICAR, New Delhi Fig: 29 Network Operations Centre at KAB-I, ICAR, New Delhi 53

Campus Network at National University of Juridical Sciences, Kolkata Under a MoU with NUJS, Kolkata, ERNET India has completed commissioning of Campus Network at NUJS, Kolkata and accepted by NUJS on 20.09.2011. 10 Gigabit fibre backbones connects Academic Blocks, Hostels and Guest House enabling students and faculty to access Intranet & Internet resources from their desktops, laptops on any where any time basis. The network of 814 nodes is protected from viruses, Trojans and unauthorized access from outside world through Firewall and antivirus systems. The project is now under a warranty of three years for which ERNET is extending all support for smooth functioning of the network. National Institute of Food Technology Entrepreneurship & Management (NIFTEM) NIFTEM desired to setup Campus Network and other IT Infrastructure at their campus and approached ERNET for the same. After presentation and discussion an MoU has been signed between NIFTEM & ERNET India for setting up the same. ERNET is in process for carrying out detailed feasibility site surveys for assessment of the requirement for setting up the campus network. 54 Video Conference Facility at Various Institutes ERNET India has taken up projects for setting up of video conference facility for various Institutes. Under these projects, ERNET India is provisioning video conference equipment consisting of Codec (High Definition / Standard Definition), camera, microphone, Display screens (Liquid Crystal Display (LCD) /Plasma) at each of the remote site. The Codec has capabilities to connect on Internet Protocol as well as on Integrated Service Digital Network (ISDN) connectivity and also share computer/laptop presentation during video sessions. Wherever required, Multipoint Control Unit (MCU) has been provisioned so as to conduct multipoint concurrent video conference sessions among multiple sites. ERNET India has implemented & is operating Video conference projects at: 1. Videoconference (VC) facility for Govt of Uttar Pradesh (UP) at State Capital, 18 Divisions & 1 District of UP with total of 21 sites with MCU & Video Wall of 4x50 cube configuration. The Project had been completed and is under operation & management by ERNET through manpower support provided under the project. 2. High Definition VC facility at 9 locations of Indian Metrological Department (IMD) with MCU. High Definition Codecs have (1+3) MCU & Visual Data Presentation capabilities. The Project had been completed and was under warranty support from ERNET till 31.03.2013. 3. VC facility at 11 locations of the Mahatma Phule Krishi Vidyapeeth (MPKV), Rahuri with MCU, 2Mbps Multi-Protocol Label Switching (MPLS) network has been provisioned at all the sites by connecting to ERNET PoP at Pune. The Project had been completed and is under operation & management by ERNET.

2012-2013 4. Council of Scientific & Industrial Research (CSIR) desired to set up a Desktop VC facility at its Head Quarter & other 16 centres across India. A project to this effect was submitted and CSIR entrusted the work to ERNET for implementation. Installation & testing at 13 locations have been completed. The project is under progress. 5. Up gradation of Video Conferencing MCU at Income Tax Department. Concluded another MoU with Department of Income Tax for upgrade of the VC facility deployed by ERNET in 2006 with state of the art High Definition Video Conference system. The central facility consisting of MCU supporting 70-80 high definition VC remote sites for concurrent Video Conferencing has been upgraded and made operational. The facility is being used by Income Tax extensively regularly. User PC MCU User Server PC er Ethern et WAN Router Central site Endpoint/Co dec Ethern et WAN Router Endpoint/Cod ec Location 1 MPLS/Leased Lines connectivity amongst multiple locations Ethern WAN et Router Endpoint/Cod ec Location N Fig: 30 A typical layout of video conference facility 55

UP COMMING PROJECTS E-Learning ICT Centres in 204 schools of Srikakulam The objective of the project is to setup e-learning ICT centres in 204 schools of high schools in rural and tribal area of district Srikakulam to integrate ICT for learning and teaching to improve learning outcomes of rural children and also providing well documented case studies of e-learning practices, and their dissemination. State Government has identified 204 schools for setup of e-learning ICT Centres. For a broad acceptance and deployment of ICT in education, the necessary and sustainable technical infrastructure, and financial support need to be established. The aim of this project is not to provide ICT which is merely equivalent to Desktop home computer but to provide a combination of appropriate IT infrastructure, appropriate educational contents, communication system, training of teachers, support and maintenance, and develop wide collaborative system among student and teachers for problem resolution and knowledge exchange. It is also aimed to sustain functionality of ICT freeing it from daily hindrance of operational challenges due to electric power or fuels for DG Sets or maintenance. The project objective also focused on providing schools with high speed Internet connections and making Internet, multimedia resources available to students in the classroom. Proposed e-infrastructure for e-learning ICT centres 1.1 ICT tools such as 10 Desktop PCs, UPS, LCD Projector, LAN, electrical, Printer/ Scanner, software, Internet, digital education contents etc for each school 1.2 E-Learning facility The e-contents like Multimedia tutorials/animations (2D) for junior and high schools in Hard spots for Maths, Science and English subjects mapped to AP will be developed in Telugu and English initially. Olabs (Online virtual laboratory experiments) for various subjects from 9th to 12th class are developed and will be made available to 204 Srikakulam schools. 1.3 Internet/Intranet Connectivity The Internet connectivity to schools will be provided through RF wireless Links and aggregate Internet bandwidth will be terminated at office of education department. 1.4 Help Desk and Routine Check-up of Systems and VC/ VOIP facility at each school 56 Pan-India Content Delivery Network for e-learning : OLabs rollout ERNET India proposes to setup a Content Delivery Network (CDN) for e-learning using its data centre and Pan-India network infrastructures at few Point of Presence (PoPs) to reach out to various schools under CBSE umbrella using NCERT/ CBSE curriculum.

2012-2013 ERNET India will roll out OLabs, an Online Laboratory of experiments of Physics & Chemistry of class 9 th & 10 th in English language in 1 st phase and will extend the efforts for other subjects like Physics, Chemistry, Maths, Biology, English for higher classes (9 th -12 th class) in other regional languages namely Hindi, Marathi, Malayalam etc The project will result in deployment of Pan- India Content Delivery Network for rolling out Online laboratory experiments of various science subjects and will be securely distributed over Internet cloud to academicians/ end-user for further teaching and experimenting of various subjects innovatively along with standard methods. To rollout these resources and to expand its accessibility to academicians / students, other audience and community across the country including all CBSE schools, it is necessary to host the Olabs resources at the data centre and at the regional PoPs and further disseminate to users through internet cloud. The Olabs application along with contents will be hosted and securely accessible to schools round the clock. The entire OLabs content delivery network will be overlaid over ERNET national WAN network. Smart Lighting The project is aimed at creating the Smart Building by using IPv6 based Lighting Management System for the purpose of saving electricity. This project visions at creating an eco- friendly and advanced control system that uses the smart technology by automatically switching off the lights reducing manual labour and also saves the power consumption by reducing the heat produced which will maintain the cooling of the building. IPv6 Capacity Building for Central & Govt Staff The above project is aimed at creating awareness about IPv6 usage and benefits. This project visions to create a pool of IPv6 trained technical resource manpower for managing and advancing its Information technology infrastructure in terms of operating the existing computer network / WAN network and on the same time keeping the pace of advancement as per latest technological needs. 57

Training to ITBP officers Under the MoU with Indo-Tibetan Border Police Force, ERNET has agreed for providing the training to ITBP officers in the field of Information Technology and computer operations. Training will be contacted in 5 cities viz Delhi, Chandigarh, Dehradun, Guwahati/ Itanagar and Raipur. In Delhi, ERNET had provided the training on Computer Basic Course to 50 participants and Computer Hardware & Networking Course to 25 participants. They have successfully completed their course. Fig: 31 Certificate distribution to ITB Officials 58

2012-2013 IPv6 Activities With the exhaustion of IPv4 and the ever exploding number of devices hooking on to the internet, adaption of IPv6 has become a compulsion rather than an experiment. IPv6 protocol is designed to overcome many of the problems inherent in IPv4, including mobility, auto-configuration, and overall extensibility apart from offering nearly unlimited number of IP addresses to connect devices to the Internet. However being a very new technology, adoption has been really slow, while number of internet connected devices due to the IT and Telecom revolution has exploded many folds in India. ERNET India which spearheads the research network and related technologies was one of the few organizations in India to have implemented IPv6 in its networks and application in collaboration with International partners and consortiums. ERNET India has been the first network in the country to be fully IPv6 enabled not only at its core level but also reaching IPv6 connectivity to its customers wherever technically feasible and required. Some of the initiatives and activities undertaken by ERNET India in the area of IPv6 are: Operation of a IPv6 enabled Pan-India Network with 14 PoPs across the country. Setting up a IPv6 Lab for demonstrating IPv6 applications and imparting hands-on training facility to organizations wanting to use IPv6. Empanelled by DoT, for propagating IPv6 by providing Consultancy, Project Management & Implementation services to organizations desirous of migrating from IPv4 to IPv6. Closely involved with the International and National communities in development of IPv6 technologies applications. ERNET India has setup a IPv6 test bed, jointly with IISc Bengaluru for research on 6 LoWPAN and Mobile IPv6.Throgh European Union funding collaborating with International Organization on IPv6 related project such as 6Choice and MyFIRE. As part of its mandate to adapt emerging technologies, ERNET India is setting up as a pilot an IPv6 Cloud based service to deliver E-learning contents to Kendriya Vidyalayas. To enrich the education community, an IPv6 enabled smart classroom facility across the country is being setup for NIELIT centers. 59

ERP at ERNET India ERP delivers a comprehensive set of benefits including better operational management, financial management, corporate governance, decision-making, and support for changing user requirements. ERP at ERNET India is a single integrated system constituting various modules which are being regularly enhanced as per the user requirements. The system has been architected and is now being upgraded to establish uniform processes that are based on recognized best business practices. Besides streamlining processes and workflows, it has reduced redundant data entry and processes. This has lead to improved user satisfaction. It has improved access to information, workflow and efficiency and has facilitated operational coordination across departments. It has also enhanced the inventory management by better planning, tracking and forecasting of requirements. ERP system has provided solid operational backbone and has facilitated our officials to focus on key areas and new business opportunities. Fig: 32 Snapshot of e-governance package at ERNET India 60

2012-2013 Organizational Matters ERNET India is functioning under the overall control and guidance of the Governing Council. Minister of Communications & Information Technology is the Chairman of the Council. Members of the Council are from various organizations such as IIT Delhi, University Grants Commission (UGC), Ministry of Human Resources Development, Indian Council of Agricultural Research (ICAR), Indira Gandhi National Open University (IGNOU), Department of Space and Department of Electronics & Information Technology Human Resources of the Society There are 48 sanctioned posts in various categories. Out of which 30 are filled and 18 are vacant. To meet the additional requirement of manpower for various ongoing projects, ERNET India has directly engaged 14 scientific & technical employees and 18 non technical employees. 41 persons have also been engaged through outsourcing agency. Right to Information Act In order to promote transparency and accountability in the working of the society, mandatory provisions under the Right to Information Act have been implemented in the society. A Central Public Information Officer and Assistant Public Information Officer are functioning in the society. The mandatory information has been hosted on the website of the society. Vigilance Activities The vigilance activity in ERNET India is headed by a part time Chief Vigilance Officer. The vigilance activities of ERNET India are the preventive measures to provide transparent system and to create a healthy working environment. Official Language Implementation Official Language Implementation Committee has been set up to monitor the usage of Hindi in the society. The Committee under the Chairmanship of Director General monitors the usage of the official language from time to time. Hindi fortnight was organized during 14.09.2012 to 29.09.2012 in ERNET India, New Delhi. Competitions in Hindi Noting / Drafting, Essay & Poem recitation were held and employees were awarded. ERNET employees also won prizes in various seminars / trainings of Akhil Bhartiya Rajbhasha Sansthan. ERNET India was inspected by the Joint Parliamentary Committee (JPC) on Rajbhasha on 22 nd January, 2013 and the work done was found satisfactory by them. 61

Fig: 33 In this inspection meeting, Hon'ble members of Parliament on this Committee, officers of DeitY and ERNET India were present. The Committee appreciated the efforts made by ERNET India towards implementation of official language in its offices and desired betterment in future. Another achievement for ERNET India was that its Registrar & CPO Shri Dinesh Kumar Dixit was honoured by all India level organizations for significant contributions in the field of implementation of Hindi. He was also invited as Chief Guest to distribute the prizes in these functions. Regional Centres The Governing Council had approved opening of 5 new regional centres at Mumbai, Bengaluru, Chennai, Hyderabad and Kolkatta. The centers at Bengaluru, Chennai and Mumbai have already started functioning. The process of setting up of other centres is underway. 62

2012-2013 PoP Coordinators Node C-DAC, Mumbai NIELIT Centre, Gorakhpur ERNET, Delhi IITM, Trivandrum IISc, Bengaluru IIT, Guwahati Address Shri Bharat Desai Associate Director Centre for Development of Advanced Computing Gulmohar Cross Road No. 9, Juhu, Mumbai 400 049 Director NIELIT Centre MMM Engineering College Campus Gorakhpur 273 003 Shri Dilip Barman Sr. Manager ERNET India Electronics Niketan 6, C.G.O. Complex, Lodhi Road New Delhi 110 003 Md. Meraj Uddin ERNET Coordinator and Design Engg. Indian Institute of Information Technology & Management Thiruvananthapuram 695581 Prof. Utpal Mukherji Associate Professor Department of Electrical and Communication Engineering Indian Institute of Science Bengaluru 560 012 Prof. D. Goswami Head Department of Computer Science & Engineering, Indian Institute of Technology Guwahati 781 031 63

IIT, Kanpur IIT, Chennai IUCAA, Pune OCAC, Bhubaneshwar RRCAT, Indore UoH, Hyderabad UoR, Jaipur Prof Ashish Dutta Head Computer Centre Department of Computer Science & Engineering,Indian Institute of Technology IIT Post Office, Kanpur 208 016 Prof. V. Kamakoti Professor and Project Coordinator Department of Computer Science & Engg Indian Institute of Technology Chennai 600 036 Prof. Ajit K. Kembhavi Director Inter-University Centre for Astronomy & Astrophysics Post Bag No. 4, Ganeshkhind Pune 411 007 Shri S.K. Mahapatra, System Analyst Orissa Computer Application Centre N1/7-D, Nayapalli, Acharya Vihar Square Bhubaneshwar 751 013 Shri Anil Rawat Head, Computer Centre Raja Ramanna Centre for Advanced Technology Sukhniwas Palace, P.O. C.A.T. Indore 452 013 Shri Chakravarthi Bhagvathi Local Coordinator, Computer Center P.O. Central University Campus Gachibowli, Hyderabad 500 134 Dr. Shalendra Kumar Gupta Director Infonet Center,New CDPE Building University of Rajasthan, JLN Marg Jaipur 302004 64

2012-2013 VECC, Kolkata VSAT Hub at STPI, Bengaluru Dr. D.Sarkar Head Computer & Information Division Variable Energy Cyclotron Centre Sector 1, Block AF, Bidhan Nagar Kolkata 700 064 Shri Avanindra Singh Senior Manager ERNET India New Delhi 65

ARUN SINGH & COMPANY F-7, Lajpat Nagar-III, New Delhi-110024 Chartered Accountants Phones : 29835500,29835501, Fax : 29831686 E-Mail: Arunsinghcog@gmail.com INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF GOVERNING COUNCIL, ERNET India, New Delhi We have audited the accompanying financial statements of ERNET India ( the society ), which comprise the Balance Sheet as at March 31, 2013, and the Income and Expenditure for the year then ended, and a summary of significant accounting policies and other explanatory information. MANAGEMENT S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position. This responsibility includes the design, implementation and maintenance of infernal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. AUDITOR S RESPONSIBILITY Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. BASIS FOR QUALIFIED OPINION We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion subject to the following: 66

2012-2013 EARMARKED FUNDS FOR NETWORK RESEARCH SCHEMES 1) We observed that separate accounts are not maintained for the grants received for the specific projects. The summary of grants received and their utilisation are incorporated in the Annual Accounts and shown in Schedule 2A and 2B. In our opinion, proper books of account as far as it relates to grants received for the specific projects have not been kept by the society so far as appears from our examination of those books. 2) Utilisation Certificates are issued in respect of the grant received by the Chief Financial Officer with the approval of the Director General and/or Director General himself. These unaudited utilisation certificates are accepted by the competent authority. We are informed that the Utilisation certificates are issued on hybrid basis (i.e., actual cash flows and committed expenditure) till the date of the issue of the Utilisation certificates. We have not checked the compliance with terms and conditions of the grants as proper accounts are not maintained. 3) We observed that the grants are received for the specific projects, however the matching investment of the funds are not made to provide assurance of the utilisation of the funds for the specific projects. The liabilities of the interest on grant in aid are to be ascertained on yearly basis and accounted for on regular basis. This is unascertainable due to non-availability of the information and absence of the proper books of accounts for grants received for the specific projects. LOSS OF RS.554.79 LACS TO SOCIETY DUE TO DELAY IN THE SHIFTING OF THE LEASED PREMISES TO DMRC DUE TO NEGLIGNECE, AND LACK OF ADMINISTRATIVE ACUMEN/IN-EFFICIENCY 4) We are informed by the society that the society has taken office space of approx. 700 sqm on ground floor of block 3 of DMRC, IT Park vide their allotment letter dated 10/02/2010 and the lease agreement was signed w.e.f 16 th August 2010. The premises was taken over on 9th November 2010 after three months from the date of the lease deed. ERNET India vide letter dated 29th April 2011 has requested DMRC to consider allotment of about 20000 sq ft area on 5th Floor of block 1 DMRC in view of change in the requirements and the revised lease agreement was signed between ERNET and DMRC on 1st August 2011. On 27th July 2011, tender was floated for Interior /partitioning work at 5th Floor DMRC IT Park. The proposal dated 15th December 2011, after almost five months from the date of floating of tender, was submitted to DeitY seeking approval of the Executive committee to award the work in favour of M/s Woodfun Interiors the L1 bidder. The approval of the Executive committee for the award of work was conveyed on 08th May 2012 i.e., after another six months. The purchase order dated 06th June 2012 was issued after one month from the date of the communication of approval. The work was to be completed within 90 days from the date of the PO. However, total work certified till 31 st March 2013 was amounting to Rs. 23.24 Lacs out of total project cost of Rs. 160.53 Lacs. Between the periods from 6 th June 2012 till August 2013, the work remain suspended for the most of the period and finally on meeting held on 25 th September 2013, the contractor has shown his reluctance to complete the job. 67

On our perusal of the facts, we observed following glaring facts: The allotment letter was issued by DMRC on 10/02/2010 and lease agreement was signed on 16th August 2010 providing sufficient time for ERNET to start interior and partitioning work. However, nothing was done. Surprisingly, ERNET decided to have more space requirements on 29th April 2011 after eight months from the date of the signing of the lease, in the scenario when the business of ERNET was declining. The purchase order for the partitioning work was issued on 6th June 2012 more than 10 months from the date of floating of the tender on 27th July 2011 The interiors and partitioning work was to be carried out in 90 days. The work was complete by only to the extent of 40% even after 16 months from the date of the purchase order and no urgent action was taken by the society. There was gross failure on the port of the management to take urgent action in view of the fact that the society continued to pay the rent from the date of signing of the lease agreement on 16th August 2010, The ERNET continued to pay rent from 16th August 2010 and expenses amounting to Rs. 406.09 Lacs till 31st March 2013 and Rs.504.79 Lacs till 30/09/2013 have been incurred on the leased accommodation including Maintenance charges, electricity charges and water charges apart from the opportunity loss of the interest on security deposit of Rs. 151.40 Lacs estimated to be Rs. 50 Lacs. Due to lack of the Internal controls, lack of the sense of the urgency, lack of administrative acumen/in-efficiency, negligence and lack of the supervision on the part of the ERNET has resulted in the loss of public money to the tune of Rs.426.40 Lacs till 30th September 2013 to the society as no use of the money spent could be done by the society even after 3 years from the date of the signing of the lease agreement. As per the Status Report furnished to us, contractor was held responsible, whereas PO for Interiors and Partitioning work was issued on 6th June 2012, which is more than 2 and half years after the allotment letter was issued by DMRC and no urgent and stringent action was taken against the contractor by ERNET, even after contractor was found delaying the work beyond reasonable period. It appears from delayed actions of the management that the management never intend to shift their office to new premises. In our opinion, a detailed investigation of the matter needs to be done for causing enormous loss of Rs. 554.79 lacs to the society and if the management is not keen in shifting office, the notice period to DMRC should be served to avoid loss of money after commitment period. 68 FIXED ASSETS 5) During the current year, Physical verification and impairment study of the fixed assets of the society at its Head Quarters and 13 POPs was carried out. As per the Report, material discrepancies have been noticed between the book records and the physical Fixed Assets and Fixed assets with WDV of Rs.88.64 Lacs as on 31st March 2012 were not found and/or found in non working conditions. However,

2012-2013 neither these assets have been written off from the books of accounts nor any provisions for the impairment have been made in the books. 6) As required by AS-26- Intangible assets the depreciable amount of an intangible asset should be allocated on a systematic basis over the best estimate of its useful life. We observed that the Intangibles were depreciated at the rates mentioned in the Schedule IV of the Companies Act, 1956 without considering its useful life. We further observed that some fixed Assets such as Computers, UPS and Mobiles have the low useful life and therefore higher rate of the depreciation should be charged on these assets based on their best estimate of useful life. 7) We observed that fixed assets amounting to Rs. 491.39 Lacs have been capitalised during the year and depreciation has been accounted for. However, installation reports of fixed assets amounting to Rs. 476.44 have not been provided to us. Therefore we are unable to ensure whether these assets have been actually put to use or not and whether the depreciation on these assets have been correctly charged. INTERNAL CONTROLS AND AUDIT SYSTEM 8) An effective internal controls helps to promote orderly,economical, efficient and effective operations, produce quality products and services, safeguard resources against loss due to waste, abuse, mismanagement, errors and frauds, promote adherence to statutes, regulations and procedures and develop and maintain reliable financial and management data. The Internal Controls of the society is not well laid and documented. There are no operational manual or accounting manual documenting the systems, controls, rules, procedures and D1T Guidelines under which ERNET operates. Whatever rules, procedures and guidelines were provided to us, the some was found scattered and incomplete. In absence of well documented accounting and operational manual we are not able to test the existence of well laid down system and controls and their effectiveness. 9) The internal controls relating to booking of the expenses on accrual basis are non- existent. We observed that expenses for the particular year are accounted for in the books of the next year even after gap of 12 months resulting in noncomparability of the accounts. Though we have ensured provision of expenses based on the subsequent period, however, in the number of the cases, the bills are submitted or processed even after 6 months after the close of the year resulting in accounting of the expenditure in the year of incurring regardless of year to which it pertains. 10) The internal controls relating to the timely completion of the projects are nonexistent as many projects are delayed due to negligence, administrative delays and lack of sense of urgency. 11) The internal controls relating to the construction of Interiors at DMRC was total failure, where delay of more than three years was observed from the original allotment by the DMRC causing huge financial losses of Rs. 554.79 lacs to the society. 69

12) The internal controls relating to the timely submission of the bills and timely payment of the bills of the vendors are non-existent. 13) Interest received from the Banks on FDRs is accounted for on the basis of amount received from the bank. No checking of the Interest received from the Banks on FDRs is done by the society. Our checks show significant differences in the Interest received/receivables and interest calculation done by us. However, the society has not been able to furnish any reply against the differences despite several reminders. 14) There is no system of budget and monitoring the expenses against the budget resulting in lack of monitoring the expenditure in a situation when the society is incurring operating losses for few years. 15) The internal controls relating to the revenues are weak as invoices were being raised to the users already disconnected from the network.we observed that out of provision of Rs.842.16 Lacs for the doubtful debts, Rs.81.10 Lacs relates to the billing to customers who have not paid for years, which shows that these parties have continued to be billed even though they have defaulted for the years. Therefore, it clearly reflects that the internal controls relating to revenues are weak. The Governing council in its last meeting has adopted a reversal policy on invoicing, full implementation of which has not been done till date. 16) The internal controls relating to the checking of the expenditure at various POPs is non-existent as sufficient details along with the evidences have not been provided 17) The present position of the CFO is held by the Director (Projects and Training Division), who is also actively involved as director (Projects and Training Division). We observed that there is conflict of the interest in his position as CFO in so far his dealing with the transactions, in which he is directly involved as director((projects and Training Division).1n our opinion, internal controls is compromised in such cases. 18) The society has not been able to furnish us details of the actual benefits accrued to the society due to opening of these branches during the year. The society continues to incur employees and other cost at POPs at these locations even after opening of these branches. The society has incurred Rs. 15.17 Lacs on Bengaluru POPs and Rs. 1.57 Lacs on Chennai POPs during the year. The society has failed to justify incurring of expenditure even after opening of the branches at these places. 19) There is no system of control over expenditure. We observed that the travelling expenditure of ERNET has increased from Rs. 38.23 Lacs in previous year to Rs.68.74 Lacs during the year. excluding the expenses directly debited to the projects. Na explanation has been given for the increase in the travel expenditure, whereas the business is significantly declining as summarised below 70

2012-2013 Financial Year Amount in Rs. Lacs Turnover Percentage Increase Traveling Percentage Taxi Hiring Percentage over Increase over previous year Increase over previous year previous year 1515.70 (4.80%) 42.98 62.19% 25.76 119.42% 2012-13 2011-12 1592.12 (27.89 %) 26.50 4.00% 11.74 35.42% 2010-11 2208.60 (25.00%) 25.48 82.39% 18.18 126.12% 2009-10 2944.84 13.97 8.04 20) The financial management seems to be weak as the grants received from various govemment departments/agencies are not either fully utilised or are overspent resulting in minus balances. INTERNAL AUDIT /CAG AUDIT AND COMPLIANCES WITH THE PREVIOUS STATUTORY AUDITORS REPORT & CAG REPORT 21) The society does not have any internal audit system in place, which is not commensurate with the size and the nature of the organisation. Present system of the concurrent auditors is redundant as for as it relates to testing of the existing internal controls and their improvements, due to which the irregularities and deficiencies cannot be checked. There is significant audit risk due to nonexistence of the intemal audit system as we are unable to get assurance that day to day transactions are tested in terms of the internal controls. Even the tendering processes for the procurement of materials done by the society were not audited for years. 22) We observed that no audit has been done by the CAG for period after 2009. Reasons for not undertaking the CAG Audit has not been furnished to us. We further observed that previous CAG audit report was not considered and adopted by the Governing Council. 23) We observed that many issues reported in this report are covered by the CAG and previous statutory auditors. However, no serious action/effort has been done by the management in removal of these issues. We have only found casual/repetitive replies provided by the management without taking any serious action/effort. EXECUTIVE COMMITTEE 24) In terms of Para 9 of the Rules and Regulations of ERNET India, The executive committee shall be the executive arm of the Governing Council and shall develop policies for consideration and approval of council as per objectives of the society detailed in Memorandum of Association, and formulate strategies and methodology for executing Council decisions. It shall also be responsible for planning, analysis and coordination of research and development and other 71

activities in the thrust areas of the society. We observed that no meeting of the Executive Committee has held for years. The Governing Council has met only once during the year. Due to non- holding of executive committee s meetings, the society decision making system has collapsed as far as it relates to development of policies, formulating strategies and methodology for executing council decisions, planning, analysis and coordination of research and development and other activities in the thrust areas of the society. RECEIVABLES UNDER EARNMARKED NETWORK RESEARCH SCHEMES 25) Excess amount spent under D1T sponsored network research schemes and Institute Network Research Sponsored Projects were Rs.8.35 crores. Apart from above Rs. 1.05 crores is the amount receivable under projects, which are outstanding for long time. Out of this, amount of Rs. 8.40 crores is outstanding for more than a year. No amount was subsequently received by the Society. Further, Society has not made any assessment of the provision against these receivables. In absence thereof, we are unable to ensure whether amounts of Rs.8.40 crores are realisable or not. TRANSIT NODES /POPS 26) We are informed that there are no users connected to some of POPs such as Gorakhpur, indore and Trivandrum and one user at Kanpur and Jaipur POP. During the year, the Society has incurred Rs. 2.78 Lacs on Trivandrum POPs We have not been provided with the detailed explanation for the continuation of these POPs despite no/negligible presence of users. 27) Further, POPs have claimed Rs.65.58 Lacs as reimbursement of the Salary expenses. No cost benefit analysis of this expenditure has been made by the society. Further, analysis of this expenditure vis-à-vis benefits among various POPs have also not been provided. 28) No details along with evidences of other expenses of Rs.9.66 Lacs reimbursed to POPs have been provided. We observed that expenses are generally incurred by POPs on the visits of the ERNET Officials and their representatives. We are unable to verify these expenses. 72 LOANS & ADVANCES 29) Amount of Rs. Rs.827,603 (CAT Indore Rs.55,439,DOEACC Gorakhpur Rs.59,436,1IT Chennai Rs. 222,728 and University of the Rajasthan Rs. 4,90,000) are disclosed under Advances to Transit Nodes, which have not been adjusted for many years and no provision has been mode against these expenses. 30) TA Advance of Ps. 1,917, Temporary Advance of Rs. 29,649 and Tour and Travel Advances of Rs. 124,000 are outstanding from the previous years and have not been adjusted for years and no provision has been made against these expenses. 31) EMD Receivables of Rs.300,000 is outstanding from the previous years and

2012-2013 have not been adjusted for years and no provision has been made against these Receivables. 32) Advance to suppliers amounting to Rs. 77.04 Lacs includes Rs.40.43 Lacs from previous years remain unadjusted. Further, It includes amount of Rs. 72.68 Lacs as advance to NICSI, which is lying unadjusted till date. No provision has been made against these advances. STATUTORY DUES (Service Tax/TDS/VAT) 33) We observed that the society is not deducting and depositing the TDS on Works contracts as envisaged in the Delhi Value Added Act 2004 since many years resulting in the statutory non compliance. The amount of TDS, which has not been deducted and deposited with the government were not determined by the management and accordingly no provision has been mode. CURRENT LIABILITIES 34) We observed liabilities amounting to Rs. 528.89 Lacs, including Rs.382.57 Lacs payable to MTNL/BSNL Charges for Leased Line users and Rs. 117.37 Lacs payable to HCL lnfosystems Limited, are lying unchanged since last few years. We have not been provided reasons for these being outstanding till date. If these amounts are lying unclaimed for more than three years or lying unclaimed due to wrong accounting, the same should have been reversed and taken into income. In case these expenses are related to specific projects, the some should be returned to concerned government agency. 35) Advance from customers amounting to Rs. 122.09 Lacs includes Rs. 61.90 Lacs outstanding since last year. No reasons have been explained for their being remain unadjusted. If these amounts are lying unclaimed for more than three years or lying unclaimed due to wrong accounting, the same should have been reversed and taken into income. PROVISION 36) The company has made provision for liability of leave encashment amounting to Rs.530,562 for the year ended on 31st March, 2013.The accumulated liability for Leave encashment and gratuity was amounting to Rs. 75.32 Lacs and Rs. 49.58 Lacs respectively. The liability of the leave encashment has not been certified by an independent Actuarial Value as required under the AS 15 Employee Benefits. 37) Confirmation from the Banks, Debtors and Creditors We observed that no confirmation from the Banks, Debtors and Creditors have been provided to us. 73

38) In case of the contact labour used, there is no system to ensure whether PF and ES1 etc as applicable is paid by contractor for staff working with ERNET India. QUALIFIED OPINION 39) Subject to our observations at Para I to 38 above, We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of Audit. 40) Subject to our observations at Para I to 38 above, in our opinion, proper books of account as required by law have been kept by the society so far as appears from our examination of those books. 41) Balance Sheet and Income & Expenditure Account dealt with by this report are in agreement with the books of account. 42) In our opinion and to the best of our information and according to the explanations given to us except for the effects of the matter described in the Basis of the Qualified Opinion Paragraphs No I to 38 give a true and fair view in conformity with the accounting principles generally accepted in India : i) in the case of the Balance Sheet, of the state of atfairs of the Society as at 31 March, 2013: and ii) in the case of the income and Expenditure Accounts, of the excess of Income over Expenditure for the year ended on that date. For ARUN SINGH & COMPANY Chartered Accountants Firm Reg. No. 011863N Place : New Delhi Dated : 30-09-2013 (Ravi Kapoor) Partner (M-095214) 74

2012-2013 REPLIES OF POINTS RAISED IN AUDITOR S REPORT FOR THE FINANCIAL YEAR 2012-2013 EARMARKED FUNDS FOR NETWORK RESEARCH SCHEMES Auditor s Comments We observed that separate accounts are not maintained for the grants received for the specific projects. The summary of grants received and their utilisation are incorporated in the Annual Accounts and shown in Schedule 2A and 2B. In our opinion, proper books of account as far as it relates to grants received for the specific projects have not been kept by the society so far as appears from our examination of those books. Utilisation Certificates are issued in respect of the grant received by the Chief Financial Officer with the approval of the Director General and/or Director General himself. These unaudited utilisation certificates are accepted by the competent authority. We are informed that the Utilisation certificates are issued on hybrid basis (i.e., actual cash flows and committed expenditure) till the date of the issue of the Utilisation certificates. We have not checked the compliance with terms and conditions of the grants as proper accounts are not maintained. We observed that the grants are received for the specific projects, however the matching investment of the funds are not made to provide assurance of the utilisation of the funds for the specific projects. The liabilities of the interest on grant in aid are to be ascertained on yearly basis and accounted for on regular basis. This is unascertainable due to non-availability of the information and absence of the proper books of accounts for grants received for the specific projects. Replies A separate project wise ledgers are maintained in the books of accounts for the grants received for the specific projects. The observation has been noted Society will now maintain separate accounts for all new projects from 1.11. 2013 onwards. Utilisation Certificates are issued in respect of the grant received for a specific project after reconciliation of expenditure and grant received as per GFR rules. The liabilities including any interest on grant-in-aid are ascertained and settled on completion of projects. As per past practice no separate account is maintained for interest liability under projects. 75

LOSS OF RS.554.79 LACS TO SOCIETY DUE TO DELAY IN THE SHIFTING OF THE LEASED PREMISES TO DMRC DUE TO NEGLIGNECE, AND LACK OF ADMINISTRATIVE ACUMEN/IN-EFFICIENCY Auditor s Comments Replies 76 We are informed by the society that the society has taken office space of approx. 700 sqm on ground floor of block 3 of DMRC, IT Park vide their allotment letter dated 10/02/2010 and the lease agreement was signed w.e.f 16 th August 2010.The premises was taken over on 9 th November 2010 after three months from the date of the lease deed. ERNET India vide letter dated 29 th April 2011 has requested DMRC to consider allotment of about 20000 sq ft area on 5 th Floor of block 1 DMRC in view of change in the requirements and the revised lease agreement was signed between ERNET and DMRC on 01 st August 2011.On 27 th July 2011, tender was floated for Interior /partitioning work at 5 th Floor DMRC IT Park. The proposal dated 15 th December 2011, after almost five months from the date of floating of tender, was submitted to DeitY seeking approval of the Executive committee to award the work in favour of M/s Woodfun Interiors the L1 bidder. The approval of the Executive committee for the award of work was conveyed on 08 th May 2012 i.e., after another six months. The purchase order dated 06 th June 2012 was issued after one month from the date of the communication of approval. The work was to be completed within 90 days from the date of the PO. However, total work certified till 31 st March 2013 was amounting to Rs. 23.24 Lacs out of total project cost of Rs.160.53 Lacs. Between the periods from 6 th June 2012 till August 2013, the work remain suspended for the most of the period and finally on meeting held on 25 th September 2013, the contractor has shown his reluctance to complete the job. On our perusal of the facts, we observed following glaring facts: The allotment letter was issued by DMRC on 10/02/2010 and lease agreement was signed on 16 th August 2010 providing sufficient time for ERNET to start interior and partitioning work. However, nothing was done. Surprisingly, ERNET decided to have more space requirements on 29 th April 2011 after eight months from the date of the signing of the lease, in the scenario when the business of ERNET was declining. Legal opinion has been taken and action as per the contract terms is being taken.

2012-2013 Auditor s Comments Replies The purchase order for the partitioning work was issued on 6th June 2012 more than 10 months from the date of floating of the tender on 27 th July 2011 The interiors and partitioning work was to be carried out in 90 days. The work was complete by only to the extent of 40% even after 16 months from the date of the purchase order and no urgent action was taken by the society. There was gross failure on the part of the management to take urgent action in view of the fact that the society continued to pay the rent from the date of signing of the lease agreement on 16 th August 2010, The ERNET continued to pay rent from 16 th August 2010 and expenses amounting to Rs. 406.09 Lacs till 31 st March 2013 and Rs.504.79 Lacs till 30/09/2013 have been incurred on the leased accommodation including Maintenance charges, electricity charges and water charges apart from the opportunity loss of the interest on security deposit of Rs. 151.40 Lacs estimated to be Rs. 50 Lacs. Due to lack of the Internal controls, lack of the sense of the urgency, lack of administrative acumen/in-efficiency, negligence and lack of the supervision on the part of the ERNET has resulted in the loss of public money to the tune of Rs.426.40 Lacs till 30 th September 2013 to the society as no use of the money spent could be done by the society even after 3 years from the date of the signing of the lease agreement. As per the Status Report furnished to us, contractor was held responsible, whereas PO for Interiors and Partitioning work was issued on 6 th June 2012, which is more than 2 and half years after the allotment letter was issued by DMRC and therefor no delay for 2 and half years can be attributed to Contractor.Further, no urgent and stringent action was taken against the contractor by ERNET, even after contractor was found delaying the work beyond reasonable period. It appears from delayed actions of the management that the management never intend to shift their office to new premises. In our opinion, a detailed investigation of the matter needs to be done for causing enormous loss of Rs. 554.79 lacs to the society and if the management is not keen in shifting office, the notice period to DMRC should be served to avoid loss of money after commitment period. 77

FIXED ASSETS Auditor s Comments Replies During the current year, Physical verification and impairment study of the fixed assets of the society at its Head Quarters and 13 POPs was carried out. As per the Report, material discrepancies have been noticed between the book records and the physical Fixed Assets and Fixed assets with WDV of Rs.88.64 Lacs as on 31 st March 2012 were not found and/or found in non-working conditions. However, neither these assets have been written off from the books of accounts nor any provisions for the impairment have been made in the books. The report of the Physical verification and impairment study has been received in financial year 2013-14. The restructuring of financial statement is being undertaken to incorporate the latest trends in the presentation and disclosures of the financial statements to ensure compliance with statutory obligation. The material discrepancies noticed between the book records and the physical Fixed Assets will be dealt as per rules As required by AS-26- Intangible assets the depreciable amount of an intangible asset should be allocated on a systematic basis over the best estimate of its useful life. We observed that the Intangibles were depreciated at the rates mentioned in the Schedule IV of the Companies Act, 1956 without considering its useful life. We further observed that some fixed Assets such as Computers, UPS and Mobiles have the low useful life and therefore higher rate of the depreciation should be charged on these assets based on their best estimate of useful life. We observed that fixed assets amounting to Rs. 491.39 Lacs have been capitalised during the year and depreciation has been accounted for. However, installation reports of fixed assets amounting to Rs. 476.44 have not been provided to us. Therefore we are unable to ensure whether these assets have been actually put to use or not and whether the depreciation on these assets have been correctly charged. Management will decide the rates of depreciation keeping in view of useful life of equipment and in consultation with DeitY. The assets have been put to use and depreciation on these assets have been charged correctly. 78

2012-2013 INTERNAL CONTROLS AND AUDIT SYSTEM Auditor s Comments An effective internal controls helps to promote orderly, economical, efficient and effective operations, produce quality products and services, safeguard resources against loss due to waste, abuse, mismanagement, errors and frauds, promote adherence to statutes, regulations and procedures and develop and maintain reliable financial and management data. The Internal Controls of the society is not well laid and documented. There are no operational manual or accounting manual documenting the systems, controls, rules, procedures and DIT Guidelines under which ERNET operates. Whatever rules, procedures and guidelines were provided to us, the same was found scattered and incomplete. In absence of well documented accounting and operational manual we are not able to test the existence of well laid down system and controls and their effectiveness. Replies A beginning has been made to create accounting and systems procedure manual clarifying duties/authority and responsibility of concerned persons. The observations made by Statutory Auditors are taken care of. The internal controls relating to booking of the expenses on accrual basis are nonexistent. We observed that expenses for the particular year are accounted for in the books of the next year even after gap of 12 months resulting in noncomparability of the accounts. Though we have ensured provision of expenses based on the subsequent period, however, in the number of the cases, the bills are submitted or processed even after 6 months after the close of the year resulting in accounting of the expenditure in the year of incurring regardless of year to which it pertains. Noted for compliance 79

Auditor s Comments The internal controls relating to the timely completion of the projects are non existent as many projects are delayed due to negligence, administrative delays and lack of sense of urgency. The internal controls relating to the construction of Interiors at DMRC was total failure, where delay of more than three years was observed from the original allotment by the DMRC causing huge financial losses of Rs. 554.79 lacs to the society. The internal controls relating to the timely submission of the bills and timely payment of the bills of the vendors are non-existent. Interest received from the Banks on FDRs is accounted for on the basis of amount received from the bank. No checking of the Interest received from the Banks on FDRs is done by the society. Our checks show significant differences in the Interest received/receivables and interest calculation done by us. However, the society has not been able to furnish any reply against the differences despite several reminders. There is no system of budget and monitoring the expenses against the budget resulting in lack of monitoring the expenditure in a situation when the society is incurring operating losses for few years. Replies The sponsors are part of the various Committees to monitor the procurement process and thus there concurrence is obtained from authorities. The projects are consistently monitored and follow up is done on regular intervals. The action is being taken as per the contract terms and conditions. The bills and claims are accepted against POs are accepted by Divisional in charge within the period prescribed under PO or reasonable time i.e. 3 months. Bills are processed as per GFR within the same financial year. Provision is created for old bills in books of accounts. However, the vendors who have provided the services will be requested to submit the bills on time. However, this will be strengthened further during succeeding financial year. Checking of Interest received from the Banks on FDRs is done. The calculations were furnished to statutory auditors. All expenses are strictly monitored by Finance and controlled through Technical Heads. Society is running on self sustaining basis. No grant-in-aid (Plan/Non-Plan) is received. Whatever the expenditure is incurred is from its earnings. 80

2012-2013 Auditor s Comments The internal controls relating to the revenues are weak as invoices were being raised to the users already disconnected from the network.we observed that out of provision of Rs.842.16 Lacs for the doubtful debts, Rs.81.10 Lacs relates to the billing to customers who have not paid for years, which shows that these parties have continued to be billed even though they have defaulted for the years. Therefore, it clearly reflects that the internal controls relating to revenues are weak. The Governing council in its last meeting has adopted a reversal policy on invoicing, full implementation of which has not been done till date. The internal controls relating to the checking of the expenditure at various POPs is non-existent as sufficient details along with the evidences have not been provided The present position of the CFO is held by the Director (Projects and Training Division), who is also actively involved as director (Projects and Training Division). We observed that there is conflict of the interest in his position as CFO in so far his dealing with the transactions, in which he is directly involved as director((projects and Training Division).In our opinion, internal controls is compromised in such cases. Replies ERNET India is serving exclusively to the requirement of academic and research institutions under Government sector its clients are mostly government institutions depend on external budgetary resources. Hence, they release funds on availability of resources from time to time. However, provisions have been created for doubtful debts. All such users who have defaulted for the years and no economic benefit is accrued are being covered under reversal policy on invoicing approved by the Governing Council. All the nodes are regularly submitting statements of expenditure on monthly basis and release of funds is also being made periodically, based on the flow of expenditure. Nodes have been advised to seek prior approval for incurring additional expenditure outside budgetary allocation during the year. As recommended by statutory auditors, copies of supporting documents for expenditure incurred and reimbursed will also be demanded from PoPs. During the financial year 2012-13, regular CFO was relieved on 21.2.2013. Since, then Director (Projects and Training Division) is also looking after the charge of CFO in addition to existing responsibilities. For the transactions, in which he is directly involved as Director is examined by Finance and approval is taken from next higher authority i.e. Director General. ERNET India. There is acute shortage of regular manpower in ERNET India. DeitY has been requested to provide official on loan basis. ERNET India has already initiated recruitment process for filling up the vacant post of CFO. 81

Auditor s Comments The society has not been able to furnish us details of the actual benefits accrued to the society due to opening of these branches during the year. The society continues to incur employees and other cost at POPs at these locations even after opening of these branches. The society has incurred Rs. 15.17 Lacs on Bangalore POPs and Rs.1.57 Lacs on Chennai POPs during the year. The society has failed to justify incurring of expenditure even after opening of the branches at these places. Replies As per the approval of DeitY, Society has opened Regional Centres at Bangalore and Chennai. Rented Office space has been acquired as per availability, partitioning and allied work has been completed. Following R&D projects are implemented at these centers i.e. 6LoWPAN, Mobile IPv6, Virtual Scalable e-infrastructure based Educational Service for India Schools and IPv6 based Training is being planned. The action for shifting of PoPs at Regional Centers is being planned. The economic benefit will gradually accrue in the phased manner. There is no system of control over expenditure. We observed that the travelling expenditure of ERNET has increased from Rs. 38.23 Lacs in previous year to Rs.68.74 Lacs during the year. excluding the expenses directly debited to the projects. No explanation has been given for the increase in the travel expenditure, whereas the business is significantly declining as summarised below: The officers/staff visit nodes/pops/ Project implementation site and other concerned organizations with the approval of competent authority and that also only in essential case as and when need arises. Utmost economy measures issued by the Government from time to time are followed. In addition to this, taxi expenditure has increased due to opening of regional centers at Bangalore, Chennai & Mumbai. Also, on request of O/o MCIT and MoS ERNET India have provided taxis on monthly hiring basis. The financial management seems to be weak as the grants received from various government departments/agencies are not either fully utilised or are over spent resulting in minus balances. The sponsoring authority is informed of the progress of the projects and any delay in completion of project is justified with adequate reasons. All expenses incurred are monitored and controlled. The overall expenditure incurred is within the administrative approval and any expenditure overspent resulting in minus balances is done in anticipation of next installment of grants-in-aid and for timely completion of project. 82

2012-2013 INTERNAL AUDIT /CAG AUDIT AND COMPLIANCES WITH THE PREVIOUS STATUTORY AUDITORS REPORT & CAG REPORT Auditor s Comments The society does not have any internal audit system in place, which is not commensurate with the size and the nature of the organisation. Present system of the concurrent auditors is redundant as far as it relates to testing of the existing internal controls and their improvements, due to which the irregularities and deficiencies cannot be checked. There is significant audit risk due to non- existence of the internal audit system as we are unable to get assurance that day to day transactions are tested in terms of the internal controls. Even the tendering processes for the procurement of materials done by the society were not audited for years. Replies The present system of the concurrent auditors will be replaced with internal audit system to check the irregularities and deficiencies to get assurance that the day-to-day transactions are tested in terms of the internal controls. The tendering process for the procurement of materials is done as per the GFR provisions. We observed that no audit has been done by the CAG for period after 2009.Reasons for not undertaking the CAG Audit has not been furnished to us. We further observed that previous CAG audit report was not considered and adopted by the Governing Council. As far as ERNET India is concerned, CAG deputes audit parties for audit. ERNET India is not getting any recurring (Non- Plan/Plan) grant-in-aid for its sustenance. The replies have already been furnished. CAG Auditors take the cognizance of replies to their audit observations during next visit. We observed that many issues reported in this report are covered by the CAG and previous statutory auditors. However, no serious action/effort has been done by the management in removal of these issues. We have only found casual/repetitive replies provided by the management without taking any serious action/effort. The replies to the audit observations have been furnished to them and copy to IFD, DeitY with due approval of competent authority. These paras get dropped or modified/updated in their next visit. 83

EXECUTIVE COMMITTEE Auditor s Comments In terms of Para 9 of the Rules and Regulations of ERNET India, The executive committee shall be the executive arm of the Governing Council and shall develop policies for consideration and approval of council as per objectives of the society detailed in Memorandum of Association, and formulate strategies and methodology for executing Council decisions. It shall also be responsible for planning, analysis and coordination of research and development and other activities in the thrust areas of the society. Replies The meeting of Executive Committee has not been held in past. The matter requiring approval of Executive Committee as per the Delegation of Financial Powers is taken on file by circulation. As observed by the auditors meetings of Governing Council and Executive Committee will be held on regular intervals. We observed that no meeting of the Executive Committee has held for years. The Governing Council has met only once during the year. Due to non- holding of executive committee s meetings, the society decision making system has collapsed as far as it relates to development of policies, formulating strategies and methodology for executing council decisions, planning, analysis and coordination of research and development and other activities in the thrust areas of the society. RECEIVABLES UNDER EARNMARKED NETWORK RESEARCH SCHEMES Excess amount spent under DIT sponsored network research schemes and Institute Network Research Sponsored Projects were Rs.8.35 crores. Apart from above Rs. 1.05 crores is the amount receivable under projects, which are outstanding for long time. Out of this, amount of Rs. 8.40 crores is outstanding for more than a year. No amount was subsequently received by the Society. Further, Society has not made any assessment of the provision against these receivables. In absence thereof, we are unable to ensure whether amounts of Rs.8.40 crores are realisable or not. Since, the MoUs in most of the cases, stipulate that the sponsors are part of the various Committees to monitor the procurement process, and thus there concurrence is obtained from authorities. The overall expenditure incurred is within the administrative approval. The outstanding dues of the project is considered good and recoverable. Constant follow up with concerned organizations is being done. 84

2012-2013 TRANSIT NODES /POPs Auditor s Comments We are informed that there are no users connected to some of POPs such as Gorakhpur, Indore and Trivandrum and one user at Kanpur and Jaipur POP. During the year, the Society has incurred Rs. 2.18 Lacs on Trivandrum POPs.We have not been provided with the detailed explanation for the continuation of these POPs despite no/negligible presence of users. Further, POPs have claimed Rs.65.58 Lacs as reimbursement of the Salary expenses. No cost benefit analysis of this expenditure has been made by the society. Further, analysis of this expenditure vis-àvis benefits among various POPs have also not been provided. Replies Post NKN rollout, ERNET management is re-working on continuation of ERNET PoPs where there is no or negligible presence of users. The expenditure which is of recurring in nature like salaries, telephone bills and other day-to-day expenses is reimbursed. The funds are provided by ERNET based on the requirements projected by the PoPs and is as per the MoU signed with them. No details along with evidences of other expenses of Rs.9.66 Lacs reimbursed to POPs have been provided. We observed that expenses are generally incurred by POPs on the visits of the ERNET Officials and their representatives. We are unable to verify these expenses. All the institutions managing the PoPs are reputed Government/Autonomous bodies and educational institutions who have been managing the ERNET PoPs. The accounts of these reputed organizations are audited by the auditors appointed by CAG and reflected in their annual reports. ERNET India relies on the certification of PoP co-ordinators. Amount of Rs. Rs.827,603 (CAT Indore Rs.55,439,DOEACC Gorakhpur, Rs.59,436,IIT Chennai Rs. 222,728 and University of the Rajasthan Rs. 4,90,000) are disclosed under Advances to Transit Nodes, which have not been adjusted for many years and no provision has been made against these expenses. LOANS & ADVANCES CAT Indore, DOEACC Gorakhpur, IIT Chennai and University of Rajasthan PoPs have been requested to refund the advance given for meeting day-to-day PoP expenditure. 85

Auditor s Comments TA Advance of Rs.1,917, Temporary Advance of Rs. 29,649 and Tour and Travel Advances of Rs.124,000 are outstanding from the previous years and have not been adjusted for years and no provision has been made against these expenses. Replies Some of these advances are lying unadjusted in books of accounts due to fire incident happened in 2009. No details, bills or vouchers are available with Society or with the employees. The provision as required will be made in the books. EMD Receivables of Rs.300,000 is outstanding from the previous years and have not been adjusted for years and no provision has been made against these Receivables. Advance to suppliers amounting to Rs. 77.04 Lacs includes Rs.40.43 Lacs from previous years remain unadjusted. Further, It includes amount of Rs. 72.68 Lacs as advance to NICSI, which is lying unadjusted till date. No provision has been made against these advances. EMD receivable of Rs 3,00,000/- is considered good and follow up is being done with the vendor. No provision is required against this receivable. The concerned HoDs have been requested to follow up with NICSI for settlement of these advances. They have confirmed that the equipment has been delivered and installed. STATUTORY DUES (Service Tax/TDS/VAT) We observed that the society is not deducting and depositing the TDS on Works contracts as envisaged in the Delhi Value Added Act 2004 since many years resulting in the statutory non- compliance. The amount of TDS, which has not been deducted and deposited with the government were not determined by the management and accordingly no provision has been made. The TDS on works contracts as envisaged in Delhi Value Added Act 2004 will be deducted and deposited in govt. treasury. 86

2012-2013 CURRENT LIABILITIES Auditor s Comments We observed liabilities amounting to Rs. 528.89 Lacs, including Rs.382.57 Lacs payable to MTNL/BSNL Charges for Leased Line users and Rs. 117.37 Lacs payable to HCL Infosystems Limited, are lying unchanged since last few years. We have not been provided reasons for these being outstanding till date. If these amounts are lying unclaimed for more than three years or lying unclaimed due to wrong accounting, the same should have been reversed and taken into income. In case these expenses are related to specific projects, the same should be returned to concerned government agency. Advance from customers amounting to Rs. 122.09 Lacs includes Rs. 61.90 Lacs outstanding since last year. No reasons have been explained for their being remain unadjusted. If these amounts are lying unclaimed for more than three years or lying unclaimed due to wrong accounting, the same should have been reversed and taken into income. Replies Necessary action as deemed fit will be taken in current financial year. Action for adjustment of advance will be taken in current financial year. PROVISION The Society has made provision for liability of leave encashment amounting to Rs.530,562 for the year ended on 31 st March, 2013.The accumulated liability for Leave encashment and gratuity was amounting to Rs. 75.32 Lacs and Rs. 49.58 Lacs respectively. The liability of the leave encashment has not been certified by an independent Actuarial Value as required under the AS 15 Employee Benefits. Provision for liability of leave encashment has been done as per Central Government Rules adopted by the Society. As per observation, actuarial valuation be adopted from the financial year 2012-14. 87

Auditor s Comments Confirmation from the Banks, Debtors and Creditors We observed that no confirmation from the Banks, Debtors and Creditors have been provided to us. In case of the contact labour used, there is no system to ensure whether PF and ESI etc as applicable is paid by contractor for staff working with ERNET India. Replies Confirmations have been sought from the parties. Any consequential adjustment, if required will be done in the financial year 2013-14. The responsibility for payment of Provident Fund and ESI falls on contractor as per tender terms or otherwise agreement signed with them. QUALIFIED OPINION Subject to our observations at Para I to 38 above, We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of Audit. No Comments Subject to our observations at Para I to 38 above, in our opinion, proper books of account as required by law have been kept by the society so far as appears from our examination of those books. Balance Sheet and Income & Expenditure Account dealt with by this report are in agreement with the books of account. In our opinion and to the best of our information and according to the explanations given to us except for the effects of the matter described in the Basis of the Qualified Opinion Paragraphs No 1 to 38 give a true and fair view in conformity with the accounting principles generally accepted in India : 88 i) in the case of the Balance Sheet, of the state of affairs of the Society as at 31 st March, 2013; and ii) in the case of the income and Expenditure Accounts, of the excess of Income over Expenditure for the year ended on that date.

2012-2013 BALANCE SHEET AS AT 31.03.2013 (Amount Rs.) CORPUS/CAPITAL FUND AND LIABILITIES Schedule Current Year Previous Year Corpus/Capital Fund 1 867,725,895 1,164,654,282 Equipment Replacement Fund 260,000,000 260,000,000 Earmarked Funds for Network Research Schemes 2 87,429,690 148,697,662 Current Liabilities and Provisions 3 Grant-in-aid (to the extent not utilised) 98,766,647 149,097,905 Other Current Liabilitites 251,999,478 284,757,330 Provisions 368,490,766 11,156,661 TOTAL 1,934,412,475 2,018,363,840 ASSETS Fixed Assets Acquired From Capital Fund 4A 1,282,500 1,356,065 Fixed Assets Acquired From Grant-in-aid 4B 88,614,485 52,840,691 Current Assets, Loans, Advances etc. 5 Inventories 2,231,236 2,100,854 Sundry Debtors 114,892,222 209,800,477 Receivables under Earmarked Network Research Schemes 93,984,505 83,597,965 Bank Balances with Scheduled Bank 1,461,960,023 1,523,553,917 Loan and Advances 157,441,729 126,058,279 Other Assets 14,005,775 19,055,592 TOTAL 1,934,412,475 2,018,363,840 Significant Accounting Policies 14 Notes on Accounts 15 For and on behalf of ERNET India Auditor's Report sd/- sd/- (Meharban Singh) (Dinesh Dixit) In terms of our separate Chief Finance Officer Registrar & CPO report of even date annexed Arun Singh & Company sd/- Chartered Accountants Dr. Neena Pahuja FIRM Reg. No. 011863N Director General Place : New Delhi sd/- (Ravi Kapoor- 095214) Date : 30/09/2013 Partner 89

90 INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31.03.2013 (Amount Rs.) INCOME Schedule Current Year Previous Year 1. Income from Subscribers 6 151,570,104 157,000,736 2. Sales of Equipment 840,765 2,210,900 3. Network Research Receipt 2A 304,017,468 314,573,590 4. Interest Earned 7 174,479,838 147,039,930 5. Other Income 8 1,306,569 28,950,090 6. Increase/(Decrease) in Inventories 9 (387,568) (1,620,781) TOTAL (A) 631,827,175 648,154,465 EXPENDITURE 1. Operative Expenses 10 117,078,846 102,577,378 2. Purchase of Equipment 189,000 1,973,847 3. Network Research Expenditure 2A 304,017,468 314,573,590 4. Establishment Expenses 11 49,154,220 42,965,896 5. Administrative Expenses 12 68,115,839 63,815,364 6. Prior Period Expenses 13 69,007,156 32,490,087 7. Depreciation 4A 73,565 359,657 TOTAL (B) 607,636,094 558,755,819 Balance being excess of Income over Expenditure (A-B) 24,191,081 89,398,646 Profit Before Tax 24,191,081 89,398,646 Provision For Tax For Current Year 23,200,000 For Prior Period Years 332,800,000 NET Profit / (Loss) After Tax (331,808,919) 89,398,646 Significant Accounting Policies 14 Notes on Accounts 15 For and on behalf of ERNET India Auditor's Report sd/- sd/- (Meharban Singh) (Dinesh Dixit) In terms of our separate Chief Finance Officer Registrar & CPO report of even date annexed Arun Singh & Company sd/- Chartered Accountants Dr. Neena Pahuja FIRM Reg. No. 011863N Director General Place : New Delhi sd/- (Ravi Kapoor- 095214) Date : 30/09/2013 Partner

2012-2013 ERNET India SCHEDULES FORMING PART OF BALANCE SHEET AS AT 31.03.2013 SCHEDULE 1 - CORPUS/CAPITAL FUND Balance as at the beginning of the year Add : Excess of Income over Expenditure Current Year 951,881,489 (331,808,919) (Amount Rs.) Previous Year 862,482,843 89,398,646 Balance of Corpus Capital Fund ( A ) 620,072,570 951,881,489 CAPITAL GRANT IN AID (DIT) Balance as at the beginning of the year AddGrant-in-aid Utilized Less : Depreciation for Grant in aid Assets Capital Fund (GIA) Fire Accident Value Added Services ( Data Centre Video Conferencing) Less : Utilised during the year 112,772,793 50,331,258 14,557,464 100,065,773 22,793,627 10,086,607 ( B ) 148,546,587 112,772,793 65,200,000 34,800,000 (893,262) 65,200,000 34,800,000 ( C ) 99,106,738 100,000,000 TOTAL BALANCE TRANSFERRED TO BALANCE SHEET 867,725,895 1,164,654,282 (A+B+C) 91

92 SCHEDULE FORMING PART OF BALANCE SHEET AS ON 31.03.2013 (Amount Rs.) A Sub-Total A Prototyping A virtual Scalable E-In f ( VSESS) CERT-in (Augmentation of cert -in Infrastruct Development of Dynamic Web Contents for CERT In Grnat-in-AidVCSC Disabled Children (Phase II) SCHEDULE 2 - EARMARKED FUNDS FOR NETWORK RESEARCH SCHEMES (In Progress) a) Opening balance of the projects 46,597,607 3,963,404 2,035,199 48,486,719 101,082,929 b) Additions to the projects: (i) Grant in aid Receivd - 156,326 - - 156,326 (ii) Grant in aid Returned/Adjustment - - - 79,107 79,107 (iii) Interest 1,713,300 - - - 1,713,300 iv) Prior Period Interest - - - - - TOTAL (a+b) 48,310,907 4,119,730 2,035,199 48,565,826 103,031,662 Expenditure Incurred (c) 48,628,424 3,005,031 348,547 12,282,939 64,264,941 NET BALANCE AS AT THE YEAR-END (a+b)-(c) (317,517) 1,114,699 1,686,652 36,282,887 38,766,721

2012-2013 SCHEDULE FORMING PART OF BALANCE SHEET AS ON 31.03.2013 (Amount Rs.) B Project BELIEF -II Sub-Total B Project ICAR E-Linkage to 200 KVKs Grant-in-Aid Mobile IPV 6 Project U.P. Govt. Video Conferencing Grant - in- Aid Digital Library-II SCHEDULE 2 - EARMARKED FUNDS FOR NETWORK RESEARCH SCHEMES (In Progress) a) Opening balance of the projects 3,702,045 2,939,880 (819,538) 650,770 (165,289) 6,307,868 b) Additions to the projects: (i) Grant in aid Received - - 2,199,000 - - 2,199,000 (ii) Grant in aid Returned/Adjustment - - - 694,359-694,359 (iii) Interest - - - - - - iv) Prior Period Interest - - - - - - TOTAL (a+b) 3,702,045 2,939,880 1,379,462 1,345,129 (165,289) 9,201,227 Expenditure Incurred (c) 1,839,574 5,019 2,297,364 45,815,068-49,957,025 NET BALANCE AS AT THE YEAR-END (a+b)-(c) 1,862,471 2,934,861 (917,902) (44,469,939) (165,289) (40,755,798) 93

94 SCHEDULE FORMING PART OF BALANCE SHEET AS ON 31.03.2013 (Amount Rs.) C Sub Total-C Project MyFire Project 6 Choice India- Europe Cooperation to IPv6 MICT Library Cosortium Platform ICT Centre In Rural Areas of Rajasthan Grant - in- Aid CIC, Andaman & Nicobar SCHEDULE 2 - EARMARKED FUNDS FOR NETWORK RESEARCH SCHEMES (In Progress) a) Opening balance of the projects (25,172,738) (24,706,298) 435,974 (998,821) (2,631,845) (53,073,728) b) Additions to the projects: (i) Grant in aid Received - 66,500,000 37,008,881 1,203,342-104,712,223 (ii) Grant in aid Returned/Adjustment - 7,642,290-158,395-7,800,685 (iii) Interest - - - - - - iv) Prior Period Interest - - - - - - TOTAL (a+b) (25,172,738) 49,435,992 37,444,855 362,916 (2,631,845) 59,439,180 Expenditure Incurred (c) - 53,732,174 37,435,228 158,340-91,325,742 NET BALANCE AS AT THE YEAR-END (a+b)-(c) (25,172,738) (4,296,182) 9,627 204,576 (2,631,845) (31,886,562)

2012-2013 SCHEDULE FORMING PART OF BALANCE SHEET AS ON 31.03.2013 (Amount Rs.) D Sub-Total D India Meteorological Department Mahatma Phule Krishi Vidyapith, Rahuri Security Test Tool Information Security & Awareness Project Indo - US Events SCHEDULE 2 - EARMARKED FUNDS FOR NETWORK RESEARCH SCHEMES (In Progress) a) Opening balance of the projects 1,222,822 (41,506) (125,561) 10,097,288 1,067,148 12,220,191 b) Additions to the projects: (i) Grant in aid Received - - - - - - (ii) Grant in aid Returned/Adjustment - - - - - - (iii) Interest - - - - - - iv) Prior Period Interest - - - - TOTAL (a+b) 1,222,822 (41,506) (125,561) 10,097,288 1,067,148 12,220,191 - Expenditure Incurred (c) - 11,380-7,855,470-7,866,850 NET BALANCE AS AT THE YEAR-END (a+b)-(c) 1,222,822 (52,886) (125,561) 2,241,818 1,067,148 4,353,341 95

96 SCHEDULE FORMING PART OF BALANCE SHEET AS ON 31.03.2013 (Amount Rs.) E Sub Total E Vedio confrence at Directorate of income Tax systems CERT-In (Honeypots & analysis of Traffic Pattern APAN National Agriculture Innovative (Data centre) SCHEDULE 2 - EARMARKED FUNDS FOR NETWORK RESEARCH SCHEMES (In Progress) a) Opening balance of the projects 706,624 710,903 636,735 2,054,262 1,050,280 b) Additions to the projects: - (i) Grant in aid Received 836,166 - - 836,166 25,206,720 (ii) Grant in aid Returned/Adjustment - - - - - (iii) Interest - - - - - iv) Prior Period Interest - - - - - TOTAL (a+b) 1,542,790 710,903 636,735 2,890,428 26,257,000 Expenditure Incurred (c) - - - - 29,117,953 NET BALANCE AS AT THE YEAR-END (a+b)-(c) 1,542,790 710,903 636,735 2,890,428 (2,860,953)

2012-2013 SCHEDULE FORMING PART OF BALANCE SHEET AS ON 31.03.2013 (Amount Rs.) F Sub Total F Project - Settingup Intranet & Smart Virtual Class Room Project - PDFMD, Nainital Project - VC for CSIR Hqrs European Research Network (GEANT LHC Grid) Video Conferencing IP Telphony for ICAR SCHEDULE 2 - EARMARKED FUNDS FOR NETWORK RESEARCH SCHEMES (In Progress) a) Opening balance of the projects 83,722 2,107,343 - - 3,241,345 - b) Additions to the projects: (i) Grant in aid Received - - 11,392,201 4,220,072 40,818,993 20,000,000 (ii) Grant in aid Returned/Adjustment 150,000 - - - 150,000 - (iii) Interest - - - - - 233,211 iv) Prior Period Interest - - - - - - TOTAL (a+b) 233,722 2,107,343 11,392,201 4,220,072 44,210,338 20,233,211 Expenditure Incurred (c) - 16,345 11,575,268-40,709,566 22,564,428 NET BALANCE AS AT THE YEAR-END (a+b)-(c) 233,722 2,090,998 (183,067) 4,220,072 3,500,772 (2,331,217) 97

98 SCHEDULE FORMING PART OF BALANCE SHEET AS ON 31.03.2013 (Amount Rs.) G PREVIOUS YEAR Sub Total G CURRENT YEAR Project - Directorate General ITBP Force New Delhi GIA - Setting Up the Eduroam Services in India GIA - Setting Up of Digital Archival Facility for Outcomes of Various Language GIA - Testing of IPv6 Application & Equipment SCHEDULE 2 - EARMARKED FUNDS FOR NETWORK RESEARCH SCHEMES (In Progress) a) Opening balance of the projects - - - - - 71,832,867 70,630,199 b) Additions to the projects: - - (i) Grant in aid Received 14,600,000 8,800,000 10,700,000 549,384 54,649,384 203,372,092 276,350,249 (ii) Grant in aid Returned/Adjustment - - - - - 8,724,151 17,300,575 (iii) Interest - - - - 233,211 1,946,511 6,355,288 iv) Prior Period Interest - - - - - - 9,195,080 TOTAL (a+b) 14,600,000 8,800,000 10,700,000 549,384 54,882,595 285,875,621 379,831,391 Expenditure Incurred (c) 4,347,403 484,257 16,825 433,990 27,846,903 281,971,027 303,905,356 NET BALANCE AS AT THE YEAR-END (a+b)-(c) 10,252,597 8,315,743 10,683,175 115,394 27,035,692 3,904,594 75,926,035 Add : Excess Amount -Spent under projects (Schedule 5) 83,525,096 72,771,627 Total Earmarked Network Research Schemes (Schedule 2) 87,429,690 148,697,662

2012-2013 SCHEDULE FORMING PART OF BALANCE SHEET AS AT 31.03.2013 PREVIOUS YEAR CURRENT YEAR CERT -in S/W tools for S.T & Incident Handling Arunchal University, Itanagar Ministry of Defence (Civil)- Vido Conferncing Project National University of Judical Science Kolkata Vidio Confrencing Ministry of Earth Science 6LoWPAN Grant - in- Aid European Research Network GEANT SCHEDULE 2 A - EARMARKED FUND FOR NETWORK RESEARCH SCHEMES COMPLETED a) Opening balance of the schemes (1,958,210) (12,031,732) 9,987,999 (2,259,664) 2,215,200 10,000,000 (1,860,425) 4,093,168 (2,930,004) b) Additions to the schemes: (i) Grant-in-aid Received 4,883,036 - - 2,259,664 - - 1,860,425 9,003,125 12,569,306 - - - - - - - 281,971,027 303,905,356 (ii) Receipts Transferred from Scheme in Progress (iii) Interest 20,951 1,466,942 - - - 1,180,780-2,668,673 60,000 (iv) Grant in aid Returned/Adjustment 37,306 17,126,131 298,818 - - (1,180,780) - 16,281,475 - (v) Grant Transfer to Receivable A/c - - - - - - - - - - - - - - - - TOTAL (a+b) 2,983,083 6,561,341 10,286,817-2,215,200 10,000,000-314,017,468 313,604,658 c) Expenditure towards projects 2,983,083 6,561,341 10,286,817-2,215,200 - - 22,046,441 10,668,234 (i) Balance Amount Transfer to debtor A/c - - - - - - - - (968,932) (ii) Expenditure Transferred from Scheme - - - - - - - 281,971,027 303,905,356 in Progress TOTAL ( c ) 2,983,083 6,561,341 10,286,817-2,215,200 - - 304,017,468 313,604,658 Earmarked Fund for Network Research Schemes Completed 304,017,468 313,604,658 LESS : Amount transferred to Debtors - (968,932) 304,017,468 314,573,590 99

SCHEDULES FORMING PART OF BALANCE SHEET AS AT 31.03.2013 (Amount Rs.) SCHEDULE 3 - CURRENT LIABILITIES AND PROVISIONS Current Year Previous Year A CURRENT LIABILILITES 1 Sundry Creditors: a) For Goods 73,818,647 137,392,411 b) Others 94,042,854 59,044,909 2 Advances Received from Customers 12,209,358 9,825,913 3 Other current liabilities 3,756,671 6,842,992 4 MTNL/BSNL charges payable for leased line users 38,257,222 38,299,044 5 Amount Payable to Transit Nodes 3,225,824 3,429,010 6 TDS Payable 8,253,174 5,067,735 7 Service Tax Payable 6,814,757 17,559,066 8 Expenses Payable 7,099,147 7,142,347 9 Contributory Provident Fund 4,521,824 122,303 TOTAL (A) 251,999,478 284,725,731 B PROVISIONS 1 Gratuity 4,958,423 5,282,728 2 Accumulated Leave Encashment 7,532,343 5,873,933 3 Provision for Tax 356,000,000 - TOTAL (B) 368,490,766 11,156,661 TOTAL (A+B) 620,490,244 295,882,392 100

2012-2013 SCHEDULE 4A - FIXED ASSETS (CAPITAL FUND) FY-2012-13 Amount (Rs.) S.NO. DESCRIPTION GROSS BLOCK DEPRECIATION NET BLOCK As at the previous year end As at the current year end Total Accumulated Dep. As on 31/03/2013 Depreciation for the year Total Accumulated Dep. As on 31/03/2012 Deletion GROSS BLOCK AS ON 01/04/2013 Additions/Adjst. during the year OF FIXED ASSETS GROSS BLOCK as on 01/04/2012 I. Computers & Accessories 1Computers & Servers 7,701,771 - - 7,701,771 7,701,743-7,701,743 28 28 2.Printers 333,170 - - 333,170 333,159-333,159 11 11 3.Addl. PC Accessories 1,190,726 - - 1,190,726 1,190,684-1,190,684 42 42 4. Software 100,000 - - 100,000 99,999-99,999 1 1 II. Electronic Equipment 1.Multimeters 25,075 - - 25,075 25,073-25,073 2 2 2.Hubs 17,833,664 - - 17,833,664 17,833,654-17,833,654 10 10 3.Modems/Radio Modems 5,195,660 - - 5,195,660 5,195,617-5,195,617 43 43 4.Cisco Routers 3,779,885 - - 3,779,885 3,779,871-3,779,871 14 14 5.VSAT (SCPC) 6,042,374 - - 6,042,374 6,042,279-6,042,279 95 95 6.Cables & Connectors 277,323 - - 277,323 277,314-277,314 9 9 7.Testing Instrument 404,369 - - 404,369 404,366-404,366 3 3 III. Office Equipment 1.Projector (OHP) 27,710 - - 27,710 27,188 520 27,708 2 522 3.D.G Sets Generator 650,364 - - 650,364 650,361-650,361 3 3 4.UPS & Batteries 2,680,368 - - 2,680,368 2,680,066 280 2,680,346 22 302 5.Micscelleneous 948,281 - - 948,281 947,325 699 948,024 257 956 IV. Office Furniture & Fixtures 1. Misc.Furniture & Fixtures items 653,500 - - 653,500 594,113 42,541 636,654 16,846 59,387 - - V. Land &Building - - 1. Civil Construction & Electricity 1,684,189 - - 1,684,189 389,552 29,525 419,077 1,265,112 1,294,637 Installation Land - - - - - - - - Total 49,528,429 - - 49,528,429 48,172,364 73,565 48,245,929 1,282,500 1,356,065 101

102 SCHEDULE 4B - FIXED ASSETS (GRANT-IN-AID) Financial Year-2012-13 Amount (Rs.) S.NO. DESCRIPTION GROSS BLOCK DEPRECIATION NET BLOCK As at the previous year end As at the current year end Total Accumulated Dep. As on 31/03/2013 Depreciation for the year Total Accumulated Dep. As on 31/03/2012 Deletion GROSS BLOCK as on 01/04/2013 Additions/adjustment during the year FIXED ASSETS GROSS BLOCK as on 01/04/2012 I. Computers & Accessories 1.Computers & Servers 31,280,712 3,016,017-34,296,729 22,933,491 2,259,277 25,192,768 9,103,961 8,347,221 2.Printers 1,963,104 73,123-2,036,227 550,277 325,624 875,901 1,160,326 1,412,827 3.Addl. PC Accessories 401,990 128,343-530,333 82,445 104,804 187,249 343,084 319,545 4. Software 4,206,766 2,129,314-6,336,080 1,122,866 1,658,132 2,780,998 3,555,082 3,083,900 5. Cards 70,990 - - 70,990 57,535 11,507 69,042 1,948 13,455 - - - - II. Electronic Equipment - - - - 1.Hubs 2,192,376 - - 2,192,376 2,192,373-2,192,373 3 3 2.Modems/Radio Modems 5,909,511 - - 5,909,511 5,887,882 5,292 5,893,174 16,337 21,629 3.Cisco Routers 46,142,542 36,946,025-83,088,567 43,085,496 5,341,800 48,427,296 34,661,271 3,057,046 4.VSAT (SCPC) 39,794 - - 39,794 28,617 6,451 35,068 4,726 11,177 5.VSAT Antenna 4,612,642 - - 4,612,642 4,612,630-4,612,630 12 12 6.Radio Antenna 240,938 - - 240,938 240,937-240,937 1 1 7.Cables & Connectors 309,478 - - 309,478 291,473 4,170 295,643 13,835 18,005 8. SMPS Power Plant 341,016 - - 341,016 341,012-341,012 4 4 9. Interface Convertor 660,833 - - 660,833 660,814-660,814 19 19 10.High power Amplifier 4,368,389 - - 4,368,389 2,739,979 708,116 3,448,095 920,294 1,628,410 11.Cisco Switch 1,235,513 350,956-1,586,469 400,569 227,061 627,630 958,839 834,944 12.Raid Array3000 with controller 1,821,335 - - 1,821,335 1,821,328-1,821,328 7 7 13.Redundant Power System 609,816 - - 609,816 609,805-609,805 11 11 14. Radio Link Installation 94,000 - - 94,000 37,150 15,237 52,387 41,613 56,850 15. Air Pro Gold Router 436,436 - - 436,436 436,431 436,431 5 5 16. Baseband Hub 27,069,042 - - 27,069,042 26,348,178 720,856 27,069,034 8 720,864 17. Video Encoder Hub 706,150 - - 706,150 706,147-706,147 3 3 18. C-Band of VSAT 2,511,949 - - 2,511,949 2,511,948-2,511,948 1 1 19. Splitters 96,059 - - 96,059 96,055-96,055 4 4

2012-2013 20. Protocol Analyzer 1,007,368 - - 1,007,368 1,007,056 311 1,007,367 1 312 21. NMS HARDWARE 7,520,271 - - 7,520,271 7,520,270-7,520,270 1 1 22. NMS SOFTWARE 7,147,578 - - 7,147,578 7,147,577-7,147,577 1 1 23. ATTENURATORS 5,085 - - 5,085 5,084-5,084 1 1 24. EMS HARDWARE/SOFTWARE 3,816,960 - - 3,816,960 3,816,945-3,816,945 15 15 25. Misc.Equipments 205,035 7,440-212,475 67,139 34,934 102,073 110,402 137,896 III. Office Equipment - - - - 1.Projector (OHP) 142,200 - - 142,200 16,775 10,054 26,829 115,371 125,425 2.Projection System (SXGA) - - - - - 3. D.G. Sets Generator 1,780,650 - - 1,780,650 756,732 125,892 882,624 898,026 1,023,918 4.UPS & Batteries 25,890,762 559,763-26,450,525 5,580,998 1,152,064 6,733,062 19,717,463 20,309,764 5.Miscellaneous 3,621,437 194,940-3,816,377 510,313 248,905 759,218 3,057,159 3,111,124 6.Air Conditioner 3,555,989 99,387-3,655,376 1,132,314 304,895 1,437,209 2,218,167 2,423,675 7. Telephone & EPABX System 1,039,764 176,153-1,215,917 127,117 97,912 225,029 990,888 912,647 8.Video Conferencing Equipements 1,457,925 - - 1,457,925 242,494 210,225 452,719 1,005,206 1,215,431 IV. Office Furniture & Fixtures - - - - 1.Rack - 19-9U 2,138,070 - - 2,138,070 1,429,446 135,340 1,564,786 573,284 708,624 2. Fittings, Floorings & Partioning 215,034-215,034 148,271 27,722 175,993 39,041 66,763 3. Furniture & Fixture 4,114,707 461,584-4,576,291 865,033 238,825 1,103,858 3,472,433 3,249,674 4. Fittings, Floorings & Partioning(IITM) - 2,398,135-2,398,135-252,697 252,697 2,145,438-5. Fittings, Floorings & Partioning(Bengaluru Centre) - 1,466,224-1,466,224-327,871 327,871 1,138,353 - - - - - V. Miscellaneous Assets 182,611 - - 182,611 177,359 1,082 178,441 4,170 5,252 - - - - VI. BUILDING 25,000 - - 25,000 775 408 1,183 23,817 24,225 - - - - - 1. WIP (DMRC) - 2,323,854-2,323,854 - - - 2,323,854 - - - - - Total 201,187,827 50,331,258-251,519,085 148,347,136 14,557,464 162,904,600 88,614,485 52,840,691 103

SCHEDULES FORMING PART OF BALANCE SHEET AS AT 31.03.2013 (Amount Rs.) SCHEDULE 5 - CURRENT ASSETS, LOANS, ADVANCES ETC. Current Year Previous Year A CURRENT ASSETS: 1 Inventories: a) Stores and Spares 368,144 2,344 b) Inventories 1,673,842 2,061,410 c) Sodexo Coupons in Hand 189,250 37,100 TOTAL (A) 2,231,236 2,100,854 2 Sundry Debtors 199,108,377 222,351,185 Less Provision for Doubtful Debts (Connectivity) (24,482,165) (24,482,165) Less Provision for Doubtful Debts (Other Activities) (59,733,990) (332,338) TOTAL (B) 114,892,222 197,536,682 3 Receivables under Earmarked Network Research Schemes a) Amount receivable under Projects: 10,459,409 10,826,338 b) Earmarked Network Research Schemes (Schedule 83,525,096 72,771,627 2 ) TOTAL(C) 93,984,505 83,597,965 4 Bank balances with Scheduled Banks a) On Fixed Deposit Accounts 1,365,945,855 1,424,800,111 b) On Savings Accounts 96,014,168 98,753,806 TOTAL(D) 1,461,960,023 1,523,553,917 TOTAL (A+B+C+D) 1,673,067,986 1,806,789,418 B LOANS, ADVANCES AND OTHER ASSETS 1 Advances and other amounts recoverable in cash or kind or for value to be received: a) Security Deposits 24,952,314 18,175,988 b) Prepaid Expenses 2,109,349 4,364,801 c) Misc. Advance 1,206,123 12,536,957 d) TDS receivable 38,789,645 9,196,380 e) Service Tax Credit 3,847,974 2,164,205 f) Income Tax (A.Y. 2009-10) 59,555,613 59,555,613 g) Amount Receivable from Transit Nodes 976,442 1,764,335 h) EMD Receivables 300,000 300,000 i) Advance To Customer 7,704,269 12,263,795 J) Advance For Land To Karnataka Industrial Areas 18,000,000 18,000,000 Development Board TOTAL(A) 157,441,729 138,322,074 2 Other Assets a) Income Accrued On Fixed Deposits 14,005,775 19,055,592 TOTAL (B) 14,005,775 19,055,592 TOTAL (A+B) 171,447,504 157,377,666 104

2012-2013 SCHEDULE FORMING PART OF INCOME & EXPENDITURE FOR THE YEAR ENDED 31.03.2013 (Amount Rs.) SCHEDULE 6 - INCOME FROM SUBSCRIBERS Current Year Previous Year 1 Services a) VSAT/SCPC 55,688,222 73,508,093 b) Leased Line 76,907,802 61,115,968 c) Radio Link 3,440,115 3,746,000 d) E-mail and Web Hosting 2,913,064 3,030,462 Total (1) 138,949,203 141,400,523 2 Domain Registration 4,715,250 5,116,999 Total (2) 4,715,250 5,116,999 3 Professional Charges on projects 7,905,651 10,483,214 Total (3) 7,905,651 10,483,214 Total (1+2+3) 151,570,104 157,000,736 SCHEDULE FORMING PART OF INCOME & EXPENDITURE FOR THE YEAR ENDED 31.03.2013 (Amount Rs.) SCHEDULE 7 - INTEREST EARNED Current Year Previous Year 1 On Term Deposits: a) Bank of India 105,978,883 28,100,888 b) Canara Bank 3,158,444 - c) OBC Bank 9,600,596 78,759,071 d) ICICI Bank - 306,696 e) State Bank of Travancore 51,248,020 35,362,240 f) HDFC Bank 1,281,887 1,195,650 Total (1) 171,267,830 143,724,545 2 Income Tax refund Total (2) 706,372 3 On Saving Accounts a) Saving Bank Account 1,457,444 728,367 b) Bank of India Saving Plus Account 1,754,564 1,880,646 Total (3) 3,212,008 2,609,013 Total (1+2+3) 174,479,838 147,039,930 105

SCHEDULE FORMING PART OF INCOME & EXPENDITURE FOR THE YEAR ENDED 31.03.2013 (Amount Rs.) SCHEDULE 8 - OTHER INCOME Current Year Previous Year 1 Misc. Receipts 1,306,569 710,597 2 Liabilities Written Back - 28,239,493 TOTAL 1,306,569 28,950,090 SCHEDULE 9 - INCREASE/(DECREASE) IN INVENTORIES Current Year Previous Year a) Closing Inventories 1,673,842 2,061,410 b) Less : Opening Inventories (2,061,410) (3,682,191) NET INCREASE /(DECREASE) (a-b) (387,568) (1,620,781) SCHEDULE 10 - OPERATIVE EXPENSES Current Year Previous Year 1 Hub Management & Local Loop 405,071 316,188 Charges 2 International Gateway Access/Backbone 26,375,800 31,456,525 Charges 3 Transit Node Expenses 7,525,165 6,589,901 4 Transponder Lease Charges 66,185,921 50,692,795 5 WPC Licence Fee 5,656,850 5,649,875 7 Maintenance charges 10,930,039 7,872,094 TOTAL 117,078,846 102,577,378 106

2012-2013 SCHEDULE FORMING PART OF INCOME & EXPENDITURE FOR THE YEAR ENDED 31.03.2013 (Amount Rs.) SCHEDULE 11 - ESTABLISHMENT EXPENSES Current Year Previous Year 1 Salaries and Allowances a) Regular employee 30,725,477 25,438,166 b) Contract employee 14,194,286 12,169,556 2 Staff Welfare Expenses 2,045,485 1,636,625 3 Expenses on Employees Retirement & Terminal Benefits 2,188,972 3,721,549 TOTAL 49,154,220 42,965,896 SCHEDULE FORMING PART OF INCOME & EXPENDITURE FOR THE YEAR ENDED 31.03.2013 (Amount Rs.) SCHEDULE 12 - ADMINISTRATIVE EXPENSES Current Year Previous Year 1 Accommodation Charges 33,545,545 29,614,188 2 Advertisement and Publicity Charges 447,539 694,057 3 Audit Expenses 205,925 41,663 4 Auditors Remuneration 82,210 62,060 5 Bank Charges 246,912 289,889 6 Books & Periodicals 59,110 75,828 7 ERNET contribution for EU-India Grid Project 413,086 260,375 8 Guest House Rent/Expenses 528,199 433,276 9 Insurance charges 556,007 304,863 10 Interest 21,140 2,133 11 Interest on Service Tax 714,834-12 Bad Debts Written Off 19,843-13 Meeting Expenses 214,725 198,570 14 Membership & Subscription Fee 1,015,280 673,232 15 Postage & Courier Charges 129,720 194,242 16 Printing and Stationery 948,699 1,992,370 17 Misc. Expenses 451,561 598,457 18 Professional Charges 3,382,727 3,055,550 19 Provision for Doubtful Debts 8,110,034 5,610,444 20 Repairs and Maintenance 4,047,348 7,128,147 21 Recruitment expenses 2,222,300 1,682,122 22 Registration Charges 2,041,250 2,191,750 23 Telephone Charges 1,305,440 692,807 24 Training, Seminars, Workshops, Exhibition & Confrence Exp 531,905 1,105,341 25 Travelling, Conveyance & Taxi Hiring charges 6,874,500 3,823,517 26 Unrecovered Balances of projects 3,090,483 TOTAL 68,115,839 63,815,364 107

SCHEDULE FORMING PART OF INCOME & EXPENDITURE FOR THE YEAR ENDED 31.03.2013 (Amount Rs.) SCHEDULE 13 - Prior Period Expenses Current Year Previous Year 1 Accommodation Charges 1,616,581 2,779,233 2 Audit Expenses (33,090) 33,090 3 Connectivity charges - 1,032,975 4 Misc expenses - 25,000 5 ERNET Professional Charges A/c - 17,549 6 Hub management & Local Loop Charges - 96,250 7 Interest 1,047,446 9,195,080 8 International/Backbone Network Charges 9,355,798 5,718,681 9 Maintenance charges (300,597) 8,595,786 10 Meeting expenses - 28,452 11 Printing Stationery & Consumable 3,622-12 Professional Charges 3,202,280 3,764,460 13 Provision for doubtful 51,291,618-14 Salaries and Allowances 2,487,306 1,090,418 15 Staff Welfare 72,957-16 Transit node expenses 251,597-17 Travelling, Conveyance & Taxi Hiring Charges 11,638 113,113 TOTAL 69,007,156 32,490,087 108

2012-2013 SCHEDULE 14: SIGNIFICANT ACCOUNTING POLICIES FORMING PART OF FINANCIAL STATEMENTS 1) Accounting Convention The Financial statements are prepared on the basis of historical cost convention and on accrual method of accounting in accordance with the Generally Accepted Accounting Principles. The accounting policies have been consistently applied by the Society and are consistent with those used in the previous year. 2) 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. 3) Fixed Assets Fixed Assets are stated at cost of acquisition inclusive of freight duties & taxes and all attributable expenditure required to bring the assets to the condition required for its intended use and costs incurred up to the date of putting the assets to use. Fixed assets are disclosed at cost less depreciation and impairment, if any. 4) Depreciation i) Depreciation is provided on straight line method as per the rates specified in the Schedule XIV to Companies Act, 1956 and for software in accordance with the rates specified by the management considering the economical useful life of the assets. The rates are indicated below: a) Building 1.63% b) Computer 16.21% c) Software 16.21% d) Electronic Equipment 16.21% e) Cables and connectors 4.75% f) Testing Instrument 4.75% g) Office Equipment 7.07% h) Furniture & fixtures 6.33% (ii) (iii) In respect of additions / deductions from fixed assets during the year depreciation is considered on pro-rata basis. The capital assets having the value of less than Rs. 5,000/- is charged to the income and expenditure account. 5) Government Grants The grant received is accounted for on cash basis. The balance of un-utilised grant at the year-end is shown as Current Liability. Expenditure for Network Research schemes spent during the current year are accounted 109

for on accrual basis are shown in the Income and Expenditure Account as Network Research Receipts and Expenditure as a contra item. The unspent amount of Grant in Aid relating to Schemes in progress have been shown under the head Earmarked Network Research Funds in the Balance Sheet and the excess amount spent have been shown as Recoverable in the Balance Sheet 6) Revenue Recognition Revenue is recognized as and when services are provided and where no significant uncertainty exists for the ultimate collection thereof. 7) Retirement Benefits i) Retirement Benefits to employees like Gratuity, Provident Fund, Leave Encashment etc are provided for as per the Central Government Rules adopted by the Society. ii) Provision towards gratuity payable on death, retirement of employees has been made on accrual basis as per Central Government Rules. iii) Provision for accumulated leave encashment, benefit to the employees is accrued and computed on the assumption that the employees are entitled to receive the benefit as at the each year end. 8) Inventory i) Consumables stores are valued at cost. ii) Stock in trade including goods in transit are valued at lower of cost or net realizable value. 9) Leases Finance leases, which effectively transfer to the Society substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the lower of the fair value and present value of the minimum lease payments at the inception of the lease term and disclosed as leased assets. Lease payments are apportioned between the finance charges and reduction of the lease liability based on the implicit rate of return. Finance charges are charged directly against income. Lease management fees, legal charges and other initial direct costs are capitalized. Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term are classified as operating leases. Operating lease payments are recognized as an expense in the Profit & Loss Account on a straight-line basis over the lease term. 10) Provisions A provision is recognized when an enterprise has a present obligation as a result of past event; 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 best 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 best estimates. 110

2012-2013 SCHEDULE 15: NOTES ON ACCOUNTS FORMING PART OF BALANCE SHEET 1. Undertakings/Guarantees Furnished Six Bank Guarantees (a) Rs.2.00 crores to DoT for performance/observance of various conditions of ISP lease agreement, (b) Rs. 1,22,70,024/- to M/s Antrix Corporation Limited, Bangalore for advance payment, (c) Rs. 35,29,410/- to M/s Antrix Corporation Limited, Bangalore for advance payment, (d) Rs. 30,00,000/- to DOT for Capacity CUG VSAT services of ICAR, (e) Rs. 20,00,000/- to Mecon Ltd., Ranchi for security deposit, (f) Rs. 68,673/- to Directorate General ITBP Force, New Delhi for Imparting Training on Information Technology and Computer Operations to personnel of ITBP Force. 2. During the previous year, Income Tax Department has raised a demand of Rs.1488.98 Lacs for the assessment year 2010-11 and denied claim of exemption of being a charitable institution registered u/s 12AA and proposal for withdrawal of registration u/s 12AA was moved to DIT (Exemptions) as the organisation is no longer regarded as charitable institution within the provisions of section 2(15) of Income Tax Act, 1961. Further, during the current year, Income Tax Department has raised a demand of Rs. 803.14 Lacs for the assessment year 2011-12. The Society is disputing and contesting the claim and is of view that the demand raised by the Income Tax Department due to withdrawal of exemption of being charitable institution is not tenable and preferred an appeal with CIT(A). However, the society has created provisions towards tax liability for the assessment year 2010-11 onwards in the year ended on 31st March 2013 amounting to Rs.3560.00 Lacs. Society has deposited Rs.5,95,55,613/-during the previous year with the department and the same is shown as advance under Schedule 5. The society has further deposited Rs. 401.57 Lacs after 31st march 2013 towards the tax liability for the A.Y. 2011-12. 3. A major fire has taken place in the society Network Operation Centre (NOC) on 3rd July 2013 after the balance sheet date resulting in the massive damage to the equipment s installed. A committee was formed to review the extent of damage. The committee found that considering the equipment installed in the NOC and the equipment found to be working after testing, the committee has determined that equipment s worth Rs.664.44 Lacs with their written down value amounting to Rs. 347.22 Lacs have been destroyed in fire. The Committee assessing the loss has further opined that the equipment s, which are found to be working at this stage were also exposed to intense heat during the fire and their use for front operations are not advisable and these should be used as spares/back up. The society has temporarily shifted their operations to NIC till ERNET POP is re-established in Delhi and there are no continued loss of revenue due to fire. No provision for the assets lost due to fire has been made in after the balance sheet date. 4. As per the terms and conditions contained in the sanction and release of the Grant in Aid received by the society amounting to Rs.59.35 crores, Rs.3.48 crores and 111

Rs.6.52 crores permanent, semi-permanent assets acquired solely or mainly out of the DeitY grant shall be property of the DeitY and should not without prior sanction of DeitY, be disposed off or encumbered or utilised and DeitY will be free to sell or otherwise dispose off assets. Accordingly, these permanent, semi-permanent assets acquired solely or mainly out of the DeitY have been shown as Fixed Assets Acquired from the Grant in Aid in the financial Statement of the society. 5. Network Research Schemes i) Network Research Receipts and Expenditure amounting to Rs. 30,40,17,468/- (previous year Rs. 31,45,73,590/-) has been declared as a contra item in the Income & Expenditure Account against the funds received from sponsors for the respective project. ii) Balance of funds received for Network Research Schemes which are in progress have been shown in Schedule 2 appearing in the Balance Sheet. 6. Foreign Currency Transactions i) Value of Imports Particulars 2012-13 (Rs.) 2011-12 (Rs.) Purchase of finished goods NIL 20,14,307/- (FOB) Capital goods 3,68,82,025(FOB) NIL Note: Capital Goods purchased on CIF basis is Rs. NIL (Previous year Rs.NIL/-) and on FOB basis is Rs. 3,68,82,025 (previous year NIL) ii) Expenditure in Foreign Currency Particulars 2012-13 (Rs.) 2011-12 (Rs.) a) Membership Fee 10,15,280/- 6,73,747/- 7. Remuneration to Auditors Particulars 2012-13 2011-12 (Rs.) (Rs.) Statutory Audit Fee 82,210/- * 62,060/- Certification Fees 51,972/- Nil * Including Rs. 5880/- towards balance provision of Statutory Audit Fee for the F.Y. 2010-11 8. Goods in transit worth of Rs.6,55,651/- lying at various sites are subject to confirmation from users. 112

2012-2013 9. Various equipments lying at various nodes and user s end are subjects to confirmation. 10. Value of outstanding commitment for Capital Expenditure is not ascertainable as it varies with reference to the requirement of each project. 11. A sum of Rs. 5,03,31,258/- (Previous year Rs. 1,95,30,119/-) has been utilized during the year out of the refundable grant-in-aid of Rs.14,90,97,905/- (Rs17,18,91,532/) received in earlier years for which extension is upto 30.09.2013. The amount has been kept as Capital-grant-aid (to the extent not utilised) as a liability until fully utilised. 12. For the following project, there is no professional fee charged for the expenditure during the year: S.No. Name of the Project Amount (Rs.) 2012-13 Amount(Rs.) 2011-12 1 Grant- in- Aid Digital Library-II 18,39,570/- 36,68,383/- 2 Grant in Aid - Information Security & Awareness 11,380/- 6,72,152/- 3 Grant in Aid- Mobile IPV6 22,97,364/- 28,45,951/- 4 Grant-in-aid MCIT Library Consortium Platform 3,74,35,228/- 37,28,112/- 5 Project 6LoWPAN 29,83,083 33,03,722/- 6 Project My FIRE 1,58,340/- 10,90,909/- 7 Prototyping A Virtual Scalable E- Inf ( VSESS) 1,22,82,939/- - 8 CERT-In ( Augmentation of CERT-In Infrastructure) 3,48,547/- - 9 Setting up of Digital Archival facility of out 4,84,257/- - 10 Setting up the Eduroam Services in India 16,825/- - 11 Grant in aid IVCSC Disabled Children ( Phase II) - 5,70,77,996/- 12 ERNET India Events Accounts ( Indo US Workshop) - 5,91,654/- 13 APAN 32-1,51,82,056/- 13. Advance given to the following transit nodes are to be adjusted in the following year from their budgeted amount: S.No. Name of the Transit Node Amount (Rs.) 2012-13 Amount(Rs.) 2011-12 1 CAT Indore 55,439/- 55,439/- 2 IIT Chennai 2,14,768/- 2,22,728/- 3 UOHYD Hyderabad 64,675/- 1,13,884/- 4 DOEACC, Gorakhpur 59,436/- 59,436/- 5 VECC, Culcutta 31,462/- - 6 University of Rajasthan Jaipur 4,90,000/- 4,90,000/- 7 IUCAA, Pune 60,662/- - 8 IISC, Bnagalor - 8,23,148/- 113

14. As per the terms of Grant-in-aid, there is a liability of interest payable on unspent grant-in-aid. During the year, the Society has credited Rs. 46,15,184/- to the project accounts in respect of various schemes at the rate applicable on the savings account. 15. Figures are rounded off to the nearest rupee. 16. Necessary changes are made in accounts in Groups/sub-groups for better presentation in annual accounts. 17. Previous years figures have been re-arranged and re-grouped wherever considered necessary so as to make them comparable with those of the current year. For and on behalf of ERNET India Auditor s Report In terms of even our date annexed for Arun Singh & Co., Chartered Accountants FIRM Reg. No. 011863N sd/- sd/- sd/- sd/- (Meharban Singh) (Dinesh Kumar Dixit) (Dr. Neena Pahuja) (Ravi Kapoor) Chief Finance Officer Registrar & CPO Director General Chartered Accountants 095214 Partner Place : New Delhi Dated: 30.09.2013 114