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On the same page no. 13, as per Para C, the Industry analysis in MDA report describes about the current trends in IT BPO service industry. This is a clear indicator that the company operates in IT BPO service industry." We have attached herewith the above pages as Annexure 6.

Since, the company is only into providing BPO services, this company should be accepted as comparable.

CMC Ltd. The TPO on page number 2 of the TP order has provided the reasons for rejection of the comparable as "engaged in trading in computer peripherals, system integration services.

13. The IT segment profitability (NCP) of the company works out to 18.33%.

Since, the profitability based on the segmental data is available, this company should be accepted as comparable CMC Ltd.

The TPO on page number 2 of the TP order has provided the reasons for rejection of the comparable as "engaged in trading in computer peripherals system integration services. Page no. 67 of the annual accounts of the company, clearly indicates IT and BPO as two segments of the company. The data of each of the segments are available as per attached Annexure 14. The IT segment profitability (NCP) of the company works out to 10.10%. Since, in this case profitability based on the segmental is available, this company should be accepted as comparable.

Sr.No. Name of the company Operating Margin % 1 Spanco Telesystems and 14.22 Solutions Ltd 2 CS Software Enterprises Ltd 10.03 M/s.Excult Client Services I P Ltd 3 CMC Ltd 01.46 4 Mphasis BFL Ltd 13.71 5 Online Media Solutions Ltd 40.10 6 Asian Cere Information 24.50 Technology Ltd 7 Wipro BPO Solutions Ltd 23.40 8 Tuisyan Technologies Ltd. 18.75 (Cosmic Global) 9 Allsea Technologies Ltd 28.07 10 Saffron Global Limited 24.97 11 Transworks Information Services 02.00 Ltd Arithmetic Mean 13.73 Sr. Name of the company Operating Margin % No. 1 Geometric Software Solutions Ltd 20.34 2 Sasken Communication Technologies 14.42 Ltd 3 Visualsoft Technologies Ltd 23.52 4 Zensar Technologies Ltd 8.76 5 Blue Star Infotech Ltd 13.18 6 Mphasis BFL 18.33 7 CMC Ltd 10.10 M/s.Excult Client Services I P Ltd 8 Computech International Ltd 8.98 9 ASM Technologies Ltd 12.68 10 Astro Bio Systems Ltd -2.66 11 Megasoft Ltd -5.23 12 R S Software Ltd 7.61 13 Goldstone Technologies Ltd 3.76 14 Cepha Imaging Pvt Ltd 48.35 15 Ace Software Exports Ltd 14.55 16 Akshay Software Technologies Ltd 7.72 17 Bodhtree Consulting Ltd 24.85 18 Compulink Systems Ltd 43.62 19 Flextronics Ltd 32.19 20 Four Soft Ltd. 24.70 21 Gebbs Infotech Ltd 16.52 22 Infosys Ltd 43.49 23 L & T Infotech Ltd 11.72 24 Lanco Global Systems Ltd. 13.78 25 Sankya Infotech Ltd 27.35 26 Sasken Network Systems Ltd. 16.64 27 Tata Elxi Ltd. 24.35 28 VJIL Consulting Ltd. 6.68 M/s.Excult Client Services I P Ltd Arithmetic Mean 17.51 5.13 Based on my detailed discussion on selection of comparable companies, the arm's length operating margin to be taken in respect of the software services and IT enabled services are as under: