Compucom Software

FY 2008-09 has been a year of excitement for your company as we strove
 ahead in the upcoming and high potential education, e-governance and
 software services business. Your company achieved highest ever turnover
 and EBITDA this year since inception showing strong growth. The
 turnover rose 159.82% to Rs. 51.98 Crores over FY 2007-2008. EBITDA
 stood at Rs. 24.52 Crores as against Rs. 8.26 Crores in 2007- 2008
 showing a growth of 196.85%
 
 The world and India has been going through turbulent times
 economically. But I am happy to report that your company has shown a
 reverse trend. This has not happened by accident. The
 
 company had been taking sound steps towards re-aligning itself to
 emerging markets of future and diversifying and investing into
 government segment of ICT and e-governance. Education sector is always
 going to be recession-proof and I am proud to say that your company is
 one of very few listed companies in this high potential segment.
 
 Your company now focuses in three areas viz., ICT in education,
 e-governance and software exports. Traditionally your company had been
 more of a software export company but last two years it has transformed
 into a major education segment company as is seen through the
 financials of last several years. The software development expertise
 has been leveraged to make all the business areas of the company more
 efficient by developing project specific web-based MIS to enhance the
 efficiency and control. The charitable arm of Compucom group, Compucom
 Foundation runs an engineering and management college across the road
 from the head-quarter of your company providing strong synergy in
 education business. During the year, the company enhanced its digital
 content library to cover class 6 to 12 syllabus. This quality IP will
 help your company in further growth in the education segment.
 
 In continuation of two big orders of 2292 and 568 schools from
 Rajasthan and Delhi governments worth approx 142 Crores and 15 Crores
 respectively, your company has continued the trend through award of
 another 5 year BOOT ICT project from SSA, Rajasthan (a Govt. of
 Rajasthan Project) for 836 schools. Now your company covers more than
 3500 government schools under its ICT program covering more than one
 million learners. The company also bagged a prestigious e-governance
 BOOT project worth 15 Crores from state owned electricity company JVVNL
 for its computerization of call centre and operating fault
 rectification teams on vehicles navigated through GPS devices. Your
 company actively participates in tenders related to its core activity
 and expects the same trend ahead.
 
 Your company has always been observing sound corporate governance
 practices. We always analyze opportunities and risks before endeavoring
 into any project. Growth is good but it should not be wreck less. This
 practice ensures that your company always counters internal or external
 adversity with sound resolution.
 
 During the year your company rewarded the shareholders with generous
 bonus issue in the ratio of 1:1. The company believes in enhancing
 shareholders value witnessed by unbroken track record of dividend
 payment since inception. Your company will continue to do so. During
 the financial year 2008-09 board of directors have recommended the
 final dividend @10% i.e. Rs.  0.20/- per share.
 
 As your company is growing, many synergistic opportunities,
 diversification will come its way and we will take all steps to
 leverage these opportunities such as publication, e-tutoring, e-class
 for private schools, e-content marketing, MIS for schools and colleges
 etc.
 
 Company’s 100% subsidiary, ITneer, Inc, USA acts as the foreign arm to
 help your company achieve its goal.
 
 Company is conscious of its social responsibilities and actively
 participates and donates for social causes in its neighborhood related
 to education to needy, environment and women empowerment. 5 windmills
 of the company are a testimonial to its green energy initiative with
 sound financial prudence.
 
 We are lucky to have an excellent team at your company without whose
 help the company would have not excelled in this manner. I am grateful
 to the board of directors, shareholders, customers, suppliers and
 bankers who have helped the company excel and grow. As they say - We
 Make IT Happen!
 
 With warm regards,
 
 Surendra Kumar Surana 
 Managing Director & CEO
 
 Jaipur, 30th July, 2009