Dear Shareholders,
 
 FY 2010-11 was a year of excellent performance for your Company.
 Company strengthened its roots in its traditional business segments and
 managing the new ventures that have been started in the last few years
 with utmost care.
 
 Education, E-Governance and Software services business were the main
 contributors in the Company Balance Sheet in the reported Financial
 Year.
 
 In a snapshot of the financials, your Company has achieved better
 turnover and EBITDA in this Financial Year in comparison to the last
 year, which reflects the continuous growth and management vision.
 
 The top line has shown growth of 19.86% over FY 2009-10 to Rs. 72.87
 Crores, EBITDA has shown growth Rs. 41.49 Crores as against Rs. 32.67
 Crores in 2009- 2010 depicting a growth of 27.01%.
 
 Company has analysed that being a recession proof business, we will
 keep on putting more focus on education sector. Country''s growth is
 driven by education dependent service sector. Company sees huge
 potential in its current educational operations, as well as scouting
 for synergetic opportunities and models to increase its foot print on
 Indian educational map.
 
 Indian economy during the year has shown miscellaneous trends, where
 positivity is being shown through rising income levels, increased GDP
 and better budgetary allocations in the area of Company''s operations,
 while there is negativism in terms of inflation, corruption and reduced
 Corporate Governance. Still the internal consumption of goods and
 services has kept the optimism about the Indian growth story, traces of
 which are present in the Company''s Balance Sheet of the Financial Year.
 
 Management keeps on tracking market trends and its effect on Company
 business. Company makes itself aligned to the changing dimensions of
 economy and market trends. It is in continuous search for new growth
 hinterlands and opportunities.
 
 Your Company has secured an order from Rajasthan Council of Elementary
 Education, under Sarva Shiksha Abhiyan of Govt., for providing Computer
 Aided Learning Programme (CALP) on the basis of BOOT Model in 836 Govt.
 Schools of Rajasthan. The order value is worth Rs. 10.4 Crores
 (Approx.). With this order total number of Govt. Schools served by the
 Company has increased to 6082 spread across North India serving more
 than two million learners. The number signifies the prominent position
 of your Company in ICT Education segment.
 
 Your Company established a prominent position in Pre-School market
 across North India, which is one of the fastest growing segments in
 education business. Company has been successful in commissioning 25
 Pre-Schools and another 40 in pipeline, which are widely acceptable and
 affordable in rural, semi urban and urban areas.
 
 Your Company which has been a Software Company traditionally but
 management has diversified its efforts in educational and other Non-IT
 sectors to hedge the risk associated with mid-size IT companies. The
 Balance Sheet has been a reflection of such diversification.
 E-Governance projects along with exports in software segment have
 contributed immensely towards growth of the Company. ERP and MIS have
 been established to cover all areas of the Company to ensure efficient
 practices and control over multiple points of operations.
 
 During the year, the Company has enhanced its Digital Content library
 as per the syllabus of Pre-schools to Class 12th. This intellectual
 property complements various educational projects and management has
 plans to extend the content further.
 
 Your Company has always been a follower of strong Corporate Governance
 principles. In all its operations, emphasis is made on ethical
 practices. Company has evolved close monitoring of all its business
 decisions and finances which ensure that the Company gets support from
 large to small stakeholders.
 
 Your Company has rewarded its shareholders with decent bonus in the
 ratio of 1:2 during the current Financial Year and kept its unbroken
 track record of dividend payment since inception.
 
 Management weighs the opportunities and risks before undertaking a
 project. Company takes cautious approach and practice the philosophy of
 shareholder wealth maximisation while taking measures to counter
 internal or external adversity.
 
 In its future plans, your Company is working on establishing a
 satellite based education system which will enable the Company to bring
 teachers right at the disposal of students of rural and deprived
 sections. Company foresees a strong demand of such facilities which are
 unavailable to students in controlled cost.
 
 As we are moving ahead, owing to more than 6000 schools with nearly two
 million learners under its umbrella, many synergistic opportunities are
 available hence diversification is natural which will encircle the
 education and software segments in form of retailing of educational
 accessories, publication, Brick and Mortar budgeted K12 Schools, e-
 tutoring, e-classes in private schools, customized software for
 educational setups.
 
 Your Company has also identified tremendous business potential in
 establishing job exchange for blue collared workers. Company has
 successfully setup the project, which is available in limited capacity
 but will be scaled up soon. Management expects it to achieve
 commendable success considering vast Indian unemployed population and
 its synergetic network of associates to reach these workers.
 
 As we are moving forward, management feels the need of increase in
 brand equity of the Company. Brand building of the Company products and
 services has been kept on priority agenda of coming years.
 
 To keep itself internationally represented and work as foreign
 marketing arms, Company has 100% subsidiary, ITneer Inc., USA which
 establish a funnel for the offshore projects.
 
 Your Company and its management feel that any growth story is not
 complete if its fruits are not reaching the needy and deprived
 segments. Company is well conscious of its social responsibilities and
 participates actively in social causes in form of cash and kind both.
 
 Compucom Group''s charitable arm Compucom Foundation runs an
 Engineering & Management college in close vicinity of CSL. It provides
 synergetic advantage in human resource for software and educational
 business. This institute, by virtue of being associated with top IT and
 Education Company, has gained a lot of popularity among students and
 parents.
 
 I would like to put on record that all the projects in all the segments
 are running successfully. Management finds immense pleasure to manage a
 dynamic Company, which is not only getting projects but also executing
 them successfully.
 
 Your Company has an excellent team with high potential whose hard work
 brings success in all the projects undertaken through their zeal and
 commitment.
 
 I would like to acknowledge Board of Directors, shareholders, central &
 state govt. administrations, educational department, RIICO, employees,
 clients, vendors, stock exchanges and bankers who have helped the
 Company to maintain excellence and strive for growth.
 
 We Make IT Happen! will remain our motto to bring positive
 developments in your Company.
 
 With Warm Regards,
 
 Surendra Kumar Surana
 
 Managing Director & CEO
 
 Jaipur, August 9, 2011