Dear Shareholder, Greetings
 
 It gives me immense pleasure to present the achievements of Calsoft for
 the financial year 2010-11.
 
 Your company has reported revenues of Rs. 180.98 crores as against Rs.
 200.50 crores in the previous year.
 
 I am pleased to announce the successful completion of the sale of your
 Outsourced Product Division - Calsoft Labs to ALTEN EUROPE, SARL
 (Alten). The sale includes all its tangible and intangible assets and
 transferred OPD employees. The total sale consideration is around
 Rs.100 Crores payable on meeting certain performance targets over the
 next 18 months as outlined in the definitive agreements.
 
 Business Units:
 
 Inatech: The unit has consolidated its operations and service offerings
 over the last year. It has expanded its revenues in Middle East and has
 been able to hold its revenues in its traditional market - UK.
 
 On the business side Inatech has ramped up its delivery and sales
 capability in the Managed Services space and is projected to generate a
 sizable revenue from this business stream in the fy 2011-12.
 
 Strategic Investment:
 
 ePay.LLC: Operating on the SaaS model and servicing the healthcare
 industry, the company currently has 126 live customers. Some key
 customer names include Nebraska Orthopedic Hospital, Amsurg Hospital
 Group etc.
 
 In the case of Calsoft the parts are more valuable than the sum. In the
 coming year we well generate more value for our shareholders through
 our business unit Inatech and strategic investments.
 
 I thank our investors, customers, employees and all other key
 stakeholders for their continued support and patronage.
 
 
 S.(Sam)Santhosh
 Managing Director