We have never seen such tumultuous economic times. While it all began
 with the sub-prime crisis in the US about two years ago, in the last
 year or so, the world has faced the most serious of the economic
 problems in half a century. Some of the events that unfolded, with the
 biggest of the companies going bankrupt, have left a deep impact on
 economies, nations and companies alike. Tightening of credit markets,
 unfavorable US policy on outsourcing and volatile Rupee Vs. dollar
 added to the woes. The going got tough and CTE got going, fighting
 against all odds.
 
 The consolidated revenues for the fiscal FY 2008-2009 were Rs. 178.32
 Crores compared to Rs. 90.27 Crores of revenues for the fiscal
 2007-2008 with the growth translating over 97% year on year on
 annualized basis. Unfortunately, our profits could not match the
 revenue growth, and posted a reduction in profit of 63% year on year on
 annualized basis. Our profit margins were affected mainly due to
 decline in our Government division’s business, essentially due to delay
 in renewal of the contracts, new ERP projects failing to kick-off, the
 speed with which the economy tumbled and our inability to align costs
 to revenues to improve the overall profitability at the same speed. We
 have now aligned costs to revenues and are optimistic that the
 contracts would get renewed as per the policies of the new government
 in the US but there would be impact on the combined companies’ revenue
 for next couple of quarters till this happens.
 
 I’m happy to share with you that we figured at 169 in the DataQuest ‘To
 p 2008 list for the technology companies in India in their 2009 survey
 improving our position of 182 from last year. We were also placed fifth
 among the fastest growing companies in India by DataQuest. We were
 ranked 11th in the Technology Fast 50 for India 2008 program and ranked
 101 in the Technology Fast 500 for Asia Pacific by Deloitte.
 
 During the last few years we were busy harnessing growth and building
 strategies to sustain that growth. We are now carefully reviewing all
 the growth plans – both organic and inorganic to add additional layers
 of due-diligence to evaluate the potential risks to our current and
 future business and proceeding cautiously on the growth plan
 implementation. However, the global economic pressures have changed the
 priorities and we are focusing on customer retention strategies, cost
 containment and providing alternate technology solutions with an
 intension to save costs for our customers. I am reminded of a saying
 that, “Success always comes when preparation meets opportunities”.
 During this downturn, we are preparing ourselves for the opportunities
 that will be open for us when the markets turnaround. We are focusing
 on developing alternative delivery models such as Remote Infrastructure
 Managed Services and new industrialized offerings which are expected to
 become main-stream in the coming years.
 
 The Governments, central banks, political and business leadership
 around the world are working in coherence towards managing the crisis
 and minimizing the impact of global meltdown. The Indian economy is now
 definitely showing signs of recovery in various sectors though it may
 take sometime for other economies to be back on growth tracks. I feel
 that the growth in the Indian economy is based on the pillars of strong
 fundamentals - one of the largest populations with a large work force,
 large domestic market, and increased per-capita income leading to
 empowerment of millions of individuals. For IT sector to be back to
 near pre- crisis growth trajectory, it is pertinent that the world
 economy shows signs of recovery. We look forward to FY 2010/2011 with
 cautious optimism and hope to bring back the growth trajectory to
 earlier levels.
 
 I acknowledge the role of our investors, bankers, customers and
 government in making this journey a success. I salute each and every
 one of you.
 
 With all your continued support and trust, Cambridge Technology
 Enterprises Limited (CTE) should achieve higher levels of excellence
 creating value for all stakeholders.
 
                                               Bhaskar C. Panigrahi