A year ago, as we embarked on yet another phase of our growth odyssey,
 we did it on the platform of our objectives of Leadership, Scalability
 and Profitability. As I had mentioned in my last communication to you,
 the attainment of these objectives has turned out to be a challenging
 task. However, v find ourselves today better equipped to take on the
 challenges in this business than we were a year ago. On the back of our
 new corporate identity, which we have evolved through a more focused
 approach, we stand out as an education player more aligned and more
 connected to the youth of today.
 
 Changing education market dynamics
 
 Recent years have witnessed a major change in the education needs of
 the youth, with career education assuming greater significance than
 ever before. During 2010-11, while the formal sector continued to add
 capacity, many entrepreneurs also forayed into this space. As a result,
 greater options for students in terms of verticals and specialized
 programs, coupled with a shift towards recognized degree/diploma
 courses, marked the transforming education milieu.
 
 Focus on consolidation
 
 FY 2009-10, as you are all aware, was marked by a turnaround of our
 operations. We prudently utilized fiscal 2010-11 to consolidate the
 gains of the previous fiscal to build a strong platform for future
 growth.
 
 Some key measures that we successfully undertook during 2010-11 were to:
 
 * Establish leadership in Animation & Multimedia segment: we
 successfully integrated MAAC, which we had acquired at the end of
 2009-10.
 
 * Continue to expand in the domestic and international markets: we
 added 175 new centres in the domestic market and 29 in the
 international markets.
 
 * Invest in Assessment & Testing Solutions: Testing business performed
 well in FY 2010-11 with a good growth in top-line and bottom-line.
 
 Financial highlights
 
 On the financial front, we reported a large jump in free cash flow from
 operations, which went up by 57.8% in 2010-11 as compared to 2009-10.
 Coupled with the Rs. 32.6 crore dividends received from BJB Career
 Education Co. Ltd. (Chinese entity where we hold 22.4% stake), we were
 able to completely retire our debts (Rs. 23.8 crore at the end of
 2009-10 and additional Rs. 11.4 crore from MAAC), and to declare a
 dividend of 25% for the FY2010-11. With the cash & cash equivalents
 (and current investments) of Rs. 57.1 crore, we are well prepared to
 invest in building existing business and explore growth opportunities.
 
 Future growth
 
 The prospects for the future are bright and conducive to growth and
 profitability for the Company and each of its stakeholders, who have
 partnered our growth towards success at every step. It is to these
 stakeholders, as well as our partners, allies, bankers, customers and
 employees that I dedicate this Annual Report.
 
 Yours sincerely,
 
 Rakesh Jhunjhunwala