The Directors have pleasure in presenting to you the 13th Annual Report
 of the company covering the financial year ended 31st March 2012.
 
 FINANCIAL HIGHLIGHTS                                (Rs. in Million)
 
                                               Year          Year
 Particulars                                  Ended         Ended
                                             March 31,     March 31,
                                               2012          2011
 
 Income from Services                        1,247.1       1,415.4
 
 Other Income                                   50.5          35.8
 
 Total Income                                1,297.6       1,451.2
 
 Profit/(Loss) before Interest,
 
 Depreciation & Tax (EBITDA)                   (32.8)         68.6
 
 Depreciation & Amortisation                   107.9         103.3
 
 Profit/(Loss) before
 interest & tax                               (140.7)        (34.7)
 
 Interest & Finance charges                      6.3           4.7
 
 Profit/(Loss) before taxation                (147.0)        (39.4)
 
 Profit/(Loss) after taxation                 (147.0)        (39.4)
 
 Profit/(Loss) brought forward                (192.6)       (153.2)
 
 Surplus/(Deficit) carried                    (339.6)       (192.6)
 forward to Balance Sheet
 
 Dividend
 
 Due to the loss incurred during the year, the Board of Directors of
 your Company does not recommend any dividend for the Financial Year
 2011-12.
 
 Business Outlook
 
 The company was able to clock higher revenues in the domestic market
 during the year, growing by over 15%.  However the Company is in the
 process of reprising of all the Domestic Contracts, so that all
 contracts are profitable. Your company''s focus on profitability will
 yield better results in the coming years.
 
 During this year, there is a reduction of exports revenue by 40%,
 though this was compensated by a huge increase in Domestic business.
 Drop in exports revenue is mainly due to market conditions in USA not
 improving during the year. The new businesses which we got have only
 gone to backfill lost business during last year and this has resulted
 in a reduced revenue growth from USA, which has always been our
 dominant market.
 
 Even though economy in US and UK is not showing definite signs of
 improvement, we believe we will see significant growth in the next few 
 years. With additional focus on business development in US, your company 
 believes that growth in business from the US and UK is achievable in the 
 years to come.
 
 Due to a sharp reduction in exports revenue during the year, which is
 our main strength, the results for the year have been below par as can
 be seen above. In the last quarter of 2010-11, your company lost one of
 the top clients from USA which has affected our performance very badly.
 During the year, your Company has added a few clients and also
 increased volumes with existing clients. Your company is also in talks
 with existing clients to explore new opportunities and we are very
 confident to get back to the old days of higher exports and
 profitability. Your company is currently exploring opportunity in
 specific verticals like Mortgage and Health Care Industries in the US
 Market.
 
 Acquisition of Retreat Capital Management Inc last year seems a right
 step taken by your Company and the results of Retreat are very
 encouraging as can be seen from the consolidated results. The growth
 potential looks good and in the coming years, the contribution to
 Profit from Retreat business will be substantial. Your company has also
 added few clients in the mortgage non voice space and with Retreat''s
 domain knowledge, business growth in this vertical can be achieved in
 coming years.
 
 The company is continuing to pursue growth through the organic route in
 both the markets and see very good traction for growth in both US and
 Domestic Markets. The company has delivery centers in USA, India and
 Manila for the international segment and has Domestic delivery centers
 in major cities in India. It has the capability to offer delivery in
 multiple Indian languages.
 
 Manila centre was acquired in 2009 and has a seat capacity of around
 600. This is a strategic centre for our business as many of US Clients
 prefer Manila as a Delivery Centre. Due to overall market conditions in
 USA, our business is affected which has resulted in loss situation in
 Manila centre also. With increased possibility of billing from existing
 and new clients in the current and future years, we feel the loss
 situation in Manila centre will be reversed. In the view of Management,
 the investment made in our Manila Centre (wholly owned subsidiary) of
 Rs.102 Million and the advances recoverable given to them amounting to
 Rs.122.50 Million do not require any adjustments in the stand alone
 financials as of now. The Auditors have made an observation vide para 4
 in their Report regarding this and this may be treated as our
 explanation.
 
 The Company has not made provisions towards certain Receivables
 aggregating to Rs.61.3 Million in respect of two foreign customers,
 where amounts are substantially overdue. On the basis of available
 information and regular confirmation of balances from customers showing
 their intent to pay the same, the Company is confident of recovering
 the entire amount and therefore not made any provision in the books of
 accounts. The Auditors have however made an observation vide para 5 in
 their Report regarding this and this may be treated as our explanation.
 
 Quality & Information Security
 
 The vision of Quality and Information security at Allsec is to
 institutionalize excellence in quality of service and security of data
 of Clients, customers and Organization by developing and deploying
 simple, efficient and effective processes using the latest Quality
 models in accordance with ISO 9001:2008 interlined with data security
 controls prescribed by International standards such as ISO 27001:2005.
 As part of its continuous improvement program, your Company is
 recertified for ISO 9001:2008 (Quality Management System) and ISO
 27001:2005 (Information Security Management). To take this to next
 paradigm, your company is recertified for PCI DSS and accomplished
 compliance with HIPAA for service delivery locations in India.
 
 During the current year, in addition to the existing PCI DSS and HIPAA
 compliance at Manila, your company has achieved PCI DSS certification
 for service delivery location at Dallas in US. Further, existing SAS 70
 Type II certification for HR BPO services is graduated to ISAE 3402
 certification in line with the new International auditing standard to
 realize higher levels of maturity and be consistent with business and
 market needs in HR outsourcing.
 
 Disclosure as per Securities and Exchange Board of India (Employees
 Stock option Scheme and Employee Stock Purchase Scheme) Guidelines,
 2011
 
 The details are given in Annexure–A to Directors Report.
 
 Responsibility Statement
 
 Your Directors confirm the following:
 
 (i) That in preparation of the annual accounts, the applicable
 accounting standards had been followed along with proper explanation
 relating to material departures;
 
 (ii) That the directors had selected such accounting policies and
 applied them consistently and made judgments and estimates that are
 reasonable and prudent so as to give a true and fair view of the state
 of affairs of the company at the end of the financial year and of the
 profit or loss of the company for that period;
 
 (iii) That the directors had taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Companies Act, 1956 for safeguarding the assets of
 the company and for preventing and detecting fraud and other
 irregularities;
 
 (iv) That the directors had prepared the annual accounts on a going
 concern basis.
 
 Subsidiaries
 
 The company has three subsidiaries as at year end namely Allsectech
 Inc, USA, Allsectech Manila Inc., Philippines and Retreat Capital
 Management Inc, USA.
 
 A Statement containing brief financial particulars of the subsidiary
 companies for the year ended 31st March, 2012 is included in the Annual
 Report. The Consolidated Financial Statements of the Company and its
 Subsidiaries prepared in accordance with Accounting Standard AS-21 form
 part of the Annual Report and Accounts.
 
 The Annual Accounts of the said subsidiaries and the related detailed
 information will be made available to the investors of the
 Company/Subsidiaries, seeking such information at any point of time.
 The copies of Annual Accounts of the Subsidiary Companies will also be
 kept for inspection by any investor at the Corporate Office of the
 Company.
 
 Deposits:
 
 Your company has not accepted any deposit from the public during the
 period under review and did not have any outstanding deposits.
 
 Conservation of energy, technology absorption, foreign exchange
 earnings and outgo
 
 Your Company being in the Information Technology Enabled Services
 (ITES), the provisions relating to conservation of energy and
 technology absorptions are not applicable. The details of the earnings
 and expenditure in foreign currency are given below:
 
 Particulars                                INR (Millions)
 
 Earnings in Foreign Currency                  408.1
 
 Expenditure in Foreign Currency                60.1
 
 Remittance of Dividend in
 Foreign Currency                                NIL
 
 Directors
 
 Mr. R. Jagadish and Mr. A. Sankarakrishnan, Directors retire at the
 ensuing Annual General Meeting and being eligible offer themselves for
 re-appointment.
 
 Mr. Manish Gaur representing M/s. First Carlyle Ventures Mauritius, was
 appointed as additional director on 13th October, 2011. The Notice
 under Section 257 of the Companies Act, 1956 has been received from a
 member signifying the intention to propose Mr. Manish Gaur as a
 candidate for the office of Director and accordingly a resolution will
 be placed before the members at the forthcoming Annual General Meeting.
 
 Corporate Governance
 
 A Report on Management Discussion & Analysis of Performance and
 Compliance of Corporate Governance under Clause 49 of the listing
 agreement & Certificate from Auditors confirming compliance of
 conditions of Corporate Governance is included in this Annual Report.
 
 Investor Services
 
 Your company will constantly endeavor to give the best possible
 services to the investors. Towards this end, the following are some of
 the initiatives taken by the Company:
 
 The investor Information section of the Website of the Company
 (www.allsectech.com), furnishes important financial details and other
 data of frequent reference by the investors. The Company also has a
 Shareholders/ Investors Relation Committee to address shareholders
 grievances if any and resolve them as & when they are highlighted.
 
 The Company has provided an exclusive email id:
 investorcontact@allsectech.com for the investors to facilitate the
 redressal of the queries and complaints of the investors.
 
 The Company has appointed M/s Karvy Computershare Pvt Ltd as Registrars
 & Share Transfer Agents for attending to issues relating to physical
 shares and routine services requests.
 
 Shareholders can also address any unresolved issues or information
 requests by postal mail to - The Company Secretary, Allsec Technologies
 Limited, 46B, Velachery Main Road, Velachery, Chennai - 600 042.
 
 Shareholders are requested to update their email addresses with their
 respective depository participants so that the Company can provide
 better services at all times.
 
 Auditors
 
 M/s. S.R.Batliboi & Associates, Chartered Accountants were re-appointed
 as Auditors of the company at the annual general meeting held on 4th
 August, 2011. M/s.  S.R.Batliboi & Associates retire at this Annual
 General meeting and being eligible offers themselves for re- election.
 
 Employees
 
 Information as per Section 217 (2A) of the Companies Act, 1956 read
 with the Companies (Particulars of Employees) Rules 1975, as amended
 regarding the employees, is given in the Annexure to the Directors''
 Report. However, as per the provisions of Section 219 of the Companies
 Act, 1956, the Report and Accounts are being sent to all the members of
 the Company, excluding the aforesaid information. The said information
 would be filed with the Registrar of Companies and also would be
 available for inspection by the members at the Corporate Office of the
 Company. Any member interested in obtaining such particulars may also
 write to the Company Secretary, Allsec Technologies Limited, 46B,
 Velachery Main Road, Velachery, Chennai 600042.
 
 Acknowledgement
 
 Your Directors wish to place on record their appreciation for the
 excellent support and co-operation given by customers, shareholders,
 service providers and Government Agencies.
 
 Your Directors also record their appreciation and gratitude to
 Financial Institution and Bankers for their continued support and
 timely assistance in meeting the Company''s resource requirements. Your
 Directors acknowledge the dedicated services rendered by all the
 employees of the company.
 
                          For and on behalf of the Board of Directors
 
                           A. Saravanan                R. Jagadish
 
                            Director                    Director
 
 Place: Chennai
 
 Date : May 14, 2012