Dear Shareholders,
 
 The world economy in 2011 went through a very sluggish pace and this
 was characterized with significant downside risks and fragility. The
 financial turmoil due to the aggravation of the financial crisis in
 Europe spread far and wide, affecting both the developed and the
 developing nations. Growth in the BRIC countries has considerably
 slowed down and even other countries have exhibited muted growth due to
 domestic policy tightening. This slowdown has contributed significantly
 to a drop in global growth and world trade.
 
 Closer home, the state of the economy has also not been one that has
 projected any kind of confidence.  The liquidity crunch, the rising
 inflation rates and the spiraling exchange rate of rupee against the
 dollar has upset many an applecart during the last financial year.
 Additionally, as fiscal conditions worsened over the year, export
 numbers were revised in light of data discrepancies leading to a
 widening of trade deficit. In light of a perceivably weak
 macro-economic environment, a well-planned economic revival policy from
 the Government''s part is required to restore the Indian Economy on the
 stable path towards a prosperous growth.
 
 As the general crisis scenario looms on the horizon, customers have
 generally remained cautious and refrained from making any major
 Investments In IT industry. Critical investments have primarily focused
 in the area of cost optimization, minimizing revenue leakages and
 strengthening internal capabilities.  Clients have Increasingly started
 demanding ''transformational'' value propositions which go far beyond
 the plain value cost arbitrage opportunity.
 
 A change In the overall structure In global sourcing Is expected, as
 organizations embark on a journey with enhanced focus on the customer.
 With customers demanding more immediate value from IT and
 forward-looking strategies that support growth and innovation, service
 providers are adopting agile methods focusing on operational excellence
 through ongoing innovation, diversification, renewed
 partnerships/alliances and new business models.
 
 Business Overview
 
 The market conditions had an Impact on the business of your Company and
 we concluded the year on a consolidated basis with revenue of about Rs.
 585 crore. Margins at the EBITDA level were Rs. 59.35 crore and the
 Company had a net profit of Rs. 9.37 crore. Services contributed 51 %
 while solutions contributed 49 %. EPS for the fiscal stood at Rs. 2.02
 for FY 2012 for the face value of Rs.5/ share. We are pleased to
 announce a final dividend of 5% per share.
 
 Apart from the general downturn in the market conditions and reduced
 budgetary constraints of many customers, the Company had also taken a
 transformation initiative across various functions to make it lean,
 nimble and future-ready with the right kind of processes, systems and
 people. This process took a little longer than we expected and hence
 the same had an impact on the growth numbers. However, we are confident
 that the steps taken by the Company to make us future-ready will be
 only a short term pain and will translate to longer term gains.
 
 As part of the transformational initiative, we have put in place a
 newer executive leadership team headed by our new CEO Mr. Paresh Shah
 who has extensive and diverse experience in Business Transformation,
 Enterprise Solutions, Architecture and Total Outsourcing solutions. His
 career experience in IT spans over 24 years In diverse technologies and
 industries such as Telecom, Banking, Retail and Enterprise. I am
 confident that under the leadership of Mr. Paresh Shah, the Company
 will scale greater heights in the future.
 
 This apart, we have undertaken some key strategic Initiatives during
 the year to strengthen our existing relationships as well as
 competencies and build some new ones, which we believe, will place us
 in a position of strength as we move forward.
 
 Key among these Initiatives is the Integrated Service Delivery
 Framework or ISDF. ISDF essentially involves managing servers,
 desktops, databases, applications using the best In breed tools. The
 above IT assets are fit into a common management database (CMDB) and
 they are easily managed through a trouble ticketing tool, the
 self-service portal, work management portal, the e-mail manager and
 other automation tools that help you manage the remediation process
 without any complexity. The advantage of our ISDF is that it Is
 multi-talented and when connected with common trouble ticketing
 platform, with the help of knowledge base many of the tickets
 resolution takes place automatically thus reducing people dependency.
 So, the moment our monitoring tool looks at the problem, it scans at
 the IT asset database looking for a possible remediation solutions and
 immediately starts applying these remediation solutions to the problem
 thus resolving it even before the customer is aware about the problem.
 We believe that this gives us a major competitive advantage from a
 differentiating perspective and will drive the business ahead.
 
 IT Security Is another big area that we are targeting.  Gartner
 predicted spends of about  billion by 2012 in the security space and
 this is slated to grow at a rate of 9 % every year. We see a large
 opportunity in compliance areas like PCI, SOXs, Basel-ll etc. Retail
 and BFSI are expected to be the growth drivers for these areas.
 
 Allied Digital''s experience In IT Infrastructure Solution and IT
 Infrastructure Management services strongly positions itself to deploy
 command and control center to integrate to manage several autonomous
 subsystems such as Video Surveillance, Access Control, BMS and Fire
 Detection System comprehensively. Emerging Physical Security Solutions
 are based on IP standards that demands IT Infrastructure comprising of
 servers, storage, workstations, network and Management software. Allied
 Digital is uniquely positioned to provide all these components as a
 single source of responsibility and accountability.
 
 Our growing presence in the security space is further proven when
 Gartner chose e-Cop as one of the leading Managed Security Service
 Providers (MSSP)
 
 in the Asia Pacific region. Allied e-Cop is one of the largest threat
 intelligence networks in the world today with 7 Security Operating
 Centers (SOCs) across the globe.
 
 Our other subsidiary Dig comp Complete Solutions has had an outstanding
 year In terms of growth and opportunities. The company has huge plans
 for increasing the Dig comp foot-print across the country by way of
 spreading the service offerings to the end users In a bigger way. The
 company plans to launch a retail brand for catering to services,
 maintenance & asset recovery operations by developing a marketing
 strategy for increased awareness to customers. The company also
 foresees Improved business opportunities from existing customers on the
 RMA, Depot Repair & Asset Recovery front. There are also tremendous
 opportunities on setting up of Brand service centers for various
 leading IT & Smartphone brands. We have also strengthened our
 relationships with specific OEMs while our traction with Intel contain-
 ues to grow.
 
 This year we have entered our presence in the UK market with ISDF and
 we have achieved tremendous response on it and with a foot hold of
 45000 devices.
 
 We have created a Training Academy mainly focusing on skill
 development, up-scaling the employees, improvement in back-office,
 front office, system and processes.
 
 Recognizing our capabilities, we have been bestowed with many awards
 this financial year, including the ''SP Summit and Solution Champ
 -Managed Security Services'' by DQ Channels, ''Best Solution
 Provider'' (Security) by ITPV and the ''Spirit of Partnership''
 award by Dell that honors partners not only for achieving the metrics
 but for the commitment towards the customers, the value for the
 partnership and for continuously improving ourselves as a collaborator
 and ''Best System Integrator'' of the county by CRN
 
 We would like to place on record our appreciation and heartfelt
 gratitude to our existing shareholders, clients and employees who have
 stood by us in difficult times and we are confident that your patience
 will be rewarded as we move ahead towards delivering greater value for
 each one of you in the future.
 
 Nltln Shah