To, To the Members of AVANCE TECHNOLOGIES LIMITED
 
 The Directors are pleased to present their 28th Annual Report on the
 operations of the Company, together with the Audited Annual Accounts
 for the financial year ended 31st March, 2012. A gist of the financial
 performance of the Company for the financial year 2011- 12 is provided
 as under:
 
 - Financial Performance and Operational Review:
 
 The financial performance of the Company, for the year ended 31st
 March, 2012 and corresponding previous year is summarized below:
 
                                  For the year ended  For the year ended
 Particulars                      31st March, 2012    31st March, 2011
 
 Total Income                        1,659,948,384       1,840,239,793
 
 Total Expenditure                   1,671,486,969       1,839,177,077
 
 Profit/(Loss) before Tax              (11,538,585)          1,062,716
 
 Less: Provision for Tax                  (160,925)           (604,196)
 
 Profit/(Loss) after Tax               (11,377,660)            458,520 
 
 Earnings per share
 
 Basic                                       (0.12)               0.00
 
 Diluted                                     (0.12)               0.00
 
 The year 2011- 12 has been a challenging year for the Company''s
 operations as it witnessed a pressure on its margins on account of a
 slight decline in its overall revenues. However at the same time, the
 Company succeeded in its efforts of achieving a reduction in the
 overall expenditure incurred by it to the tune of Rs. 167,690,108 i.e.
 about 9% as compared to the preceeding financial year. Further this
 tough business scenario has encouraged the Company to undertake a SWOT
 analysis of its operations and thus process of reviewing of the systems
 and processes across various departments has been initiated with a view
 to identify possible areas of lacunas so that the necessary measures
 can be undertaken to fill the same.
 
 Your Directors are optimistic that with the melting down of
 recessionary turmoil and with collective efforts of all the
 stakeholders, the Company would emerge as a strong player in the years
 to come.
 
 - Future Outlook:
 
 Your Company currently operates in Mobile Value Added Services (MVAS).
 However there is an increasing reliance upon the use of mobiles devices
 in the delivery of value added services by the Private as well as the
 Public Sector.
 
 Most recently even the Government has begun using the mobile devices to
 make the public information and government services available anytime
 and anywhere by bringing in personalized, localized and context aware
 services close to citizens and officials through the medium of
 e-governance and m- governance.
 
 In order to leverage the opportunities offered by the E- Governance and
 M- Governance Space, your Company wishes to embark in these fields in
 the years to come.
 
 - Dividend:
 
 After taking into consideration the financial Results of the Company
 for the Financial Year 2011-12, and with an intention to build up the
 net worth for future expansion and growth plans, your Directors are of
 the opinion, that no dividend be recommended for the year under review.
 
 - Change in the Registered Office of the Company:
 
 The Registered Office of the Company has been shifted with effect from
 14th May, 2012 from #505, Midas Chambers, Off. Link Road, Andheri-
 West, Mumbai- 400053 to Off. No. 209, 2nd Floor, Kapadia Chambers, 599,
 J.S.S. Road, Marine Lines- East, Mumbai- 400 002.
 
 The said change of new office was intimated to all the statutory
 authorities and thus all the shareholders are requested to take a note
 that all the communication with the Company be undertaken on the
 aforesaid new address.
 
 - Internal Control Systems and their Adequacy:
 
 The Company has a proper and adequate system of controls in order to
 ensure that all assets are safeguarded against loss from un-authorized
 use or disposal. Further all transactions are properly checked,
 verified, recorded and reported correctly.
 
 Also Regular Internal Audit Checks are carried out to ensure that the
 responsibilities are executed effectively and that proper and adequate
 systems are in place.
 
 - Listing:
 
 The securities of the Company are listed at the Bombay Stock Exchange
 (BSE) Limited, Mumbai.
 
 - Directors:
 
 In accordance with the provisions of section 257 the Companies Act,
 1956, Mr. Bimal Kamdar and Mr. Randhir Marwa, Directors of your Company
 retire by rotation at the forthcoming Annual General Meeting and being
 eligible, offer themselves for re-appointment.
 
 The Board wishes to place on record their appreciation for the services
 rendered by them as the Directors of the Company.
 
 Necessary resolutions with regard to the above are being placed before
 the Shareholders for their approval.
 
 None of the Directors, except Mr. Bimal Kamdar & Mr. Randhir Marwa are
 interested or concerned in the said resolutions.
 
 - Auditors:
 
 M/s. Ramesh Batham & Co., Chartered Accountants, Statutory Auditors of
 the Company had been appointed to hold office until the conclusion of
 the ensuing Annual General Meeting; however they are also eligible for
 re- appointment and their willingness for re- appointment have been
 intimated to the Company well in advance. Further they have also
 confirmed that they are not disqualified for re- appointment within the
 meaning of Section 226 of the Companies Act, 1956 and their
 appointment, if made would be within the limits specified in Section
 224(1B) of the said Act.
 
 - Auditors Report:
 
 The observations and comments furnished by the Auditors in their report
 read together with the notes to Accounts are self- explanatory and
 hence do not call for any further comments under Section 217 of the
 Companies Act, 1956.
 
 - Director''s Responsibility Statement:
 
 Pursuant to the requirements under Section 217(2AA) of the Companies
 Act, 1956, with respect to Directors'' Responsibility Statement, it is
 hereby confirmed that:
 
 i.  In the preparation of the Accounts for the financial year ended
 31st March, 2012 the applicable accounting standards have been followed
 along with proper explanation relating to material departures;
 
 ii.  The Directors have selected such accounting policies and applied
 them consistently and made judgments and estimates that were reasonable
 and prudent so as to give a true and fair view of the state of affairs
 of the Company as at 31st March, 2012 and of the profit or loss of the
 Company for the year ended 31st March, 2012;
 
 iii. The Directors have 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; and
 
 iv.  The Directors have prepared the Annual Accounts of the Company on
 a ''going concern'' basis.
 
 - Cash Flow Statement:
 
 A Cash Flow Statement for the year ended 31st March, 2012 forms part of
 the Annual Audited Accounts of the Company.
 
 - Corporate Governance:
 
 Your Company has strived for exemplary governance standards since
 inception and continues to lay a strong emphasis on transparency,
 accountability and integrity.
 
 Further the Company also conforms to the norms of Corporate Governance
 as envisaged in the Companies Act, 1956 and the Listing Agreement
 entered with the Bombay Stock Exchange (BSE) Limited.
 
 Pursuant to Clause 49 of the Listing Agreement, a report on the
 Corporate Governance and the Auditors Certificate on Corporate
 Governance are annexed to this report.
 
 - Management Discussion and Analysis Report:
 
 In accordance with the Listing Agreement, the Management Discussion and
 Analysis Report is presented in the separate section forming part of
 the Annual Report.
 
 - Particulars of Employees:
 
 The relations of the Employees have continued to be harmonious during
 the year.
 
 The Company''s Performance Management System is bench-marked with
 prevailing best practices and seeks to continuously enhance
 competitiveness and skills of its employees.
 
 Furthermore, no employees of the Company falls into the ambit of
 drawing a remuneration of more than Rs. 24,00,000 per annum or Rs.
 2,00,000 per month for any part of the year, hence no particulars have
 been furnished as required under Section 217(2A) of the Companies Act,
 1956 read with the Companies (Particular of Employees) Rules, 1975.
 
 - Other Corporate Information:
 
 With Reference to the Winding up petition filed with the High Court, we
 would like to inform you that the Hon''ble High Court has accepted our
 application for setting aside the ex-parte order as passed by it and
 thus an order to this effect has been received by the Company on 20th
 July, 2011.
 
 Further the Hon''ble High Court posted the Company Petition for final
 hearing on 28th July, 2011 which was further adjourned to 4th August,
 2011 and thus the Dispute still stands pending in the Court of Law.
 
 - Public Deposits:
 
 The Company has not accepted any public deposits during the year under
 review.
 
 - Audit Committee:
 
 Your Company has an Audit Committee duly constituted as per the
 provisions of Section 292A of the Companies Act, 1956 and Clause 49 of
 the Listing Agreement and the said Committee has also complied with all
 the Legal and Statutory requirements.
 
 - Energy Conservation, Technology Absorption and Foreign Exchange
 Earnings and Outgo:
 
 The information required under Companies (Disclosure of particulars in
 the Report of the Board of Directors) Rules, 1988 with respect to
 Conservation of Energy and Technology Absorption is not given as the
 Company does not fall under the category as mentioned above.
 
 - Acknowledgement:
 
 Your Directors take this opportunity to offer their sincere thanks to
 various departments of the Central and State Governments, Banks,
 Financial Institutions.
 
 Your Directors also express their deep appreciation for the devoted and
 sincere services rendered by workers, staff and executives at all
 levels during the year and we are confident that your Company will
 continue to receive such co- operation from them in future also.
 
 
                             For and on behalf of the Board of Directors 
 
                                         Sd/-
 
                             Srikrishna Bhamidipati
 
                             Executive Director
 
 Date : 1st September, 2012 
 
 Place: Mumbai