Dear Share Holders,
 
 In the year 2007-08, Compact Disc India Ltd. (CDI) has witnessed
 accelerated growth and market leadership.
 
 CDI is now in the active stage of setting-up a state of art fully
 Integrated Animation Studio in the Special Economic Zone (SE2) at
 KINFRA Film and Video Park, Kazhakuttom, Thiruvananthapuram, Kerala.
 The project is being set-up at a cost of USD 13,184 million (Rs. 56.69
 crore).
 
 Besides CDI is simultaneously setting-up an Animation Development
 Studio at Rajiv Gandhi Chandigarh Technology Park, Phase - I,
 Chandigarh for which prime land has already been allotted. The project
 is being set-up at a cost of Rs. 58.56 crore
 
 During the year 2007-08, CDI, the largest animation film Company of
 South Asia has reported the following achievements:
 
 - Sales revenues higher by 104% at Rs. 102.78crore
 
 - Profit-After-Tax (PAT) increases by 140% to Rs. 19.63 crore
 
 - Profit-Before-Tax(PBT) increases by 133% to Rs. 20.50 crore
 
 - Earnings per Share (EPS) higher at Rs.20.51 as compared to Rs.8.54
 last year; higher by 140% (annualized).
 
 With best wishes of the Shareholders, CDI is going to take a giant leap
 ahead.
 
                                                    Warm regards,
 
                                                    Suresh Kumar
                                                        Chairman