I am happy to share with you the developments and the business
transformation initiatives undertaken by your company for the year
ending March 31, 2007.
During the Financial Year 2006-07, your company has maintained its top
line with marginal drop of 6.45%, by posting Rs.678.74 Lakhs against
the previous years total income of Rs.752.62 Lakhs. Companys net
profit declined from Rs. 154.1 Lakhs to Rs.64.06 Lakhs during the
current year. This was mainly due to the increased costs of salaries
and additional outlay on business transformation initiatives, together
with lower billing rates realized. However, your directors have
recommended 4% dividend keeping in mind shareholders interest.
To take advantage of the growing opportunities within domestic as well
as overseas markets and taking into account the declining revenue
streams from traditional businesses, your company has realigned its
business focus by entering into collaborative enterprise solutions
space in a big way. This business turnaround strategy was formulated
and implementation was set in motion during middle of the last
financial year, by bringing on-board a new CEO and a professional
management team. Cost control measures were implemented & financial
prudence was observed to strengthen profitability during the current
To make your companys presence felt in the growing enterprise
application services space, strategic alliances with Metrikus, Agile
Labs & Oracle Corporation were signed-up for implementing their unique
olutions for global customers. I firmly believe, by this strategy of
aligning your company with these market leaders operating in niche
markets and also strengthening the existing core competency driven
businesses, your company is poised for a big business transformation
during the current year.
Your company is focusing more on multi-year and high value customer
engagements during this year and implementation of quality initiatives
on CMMi Level 3 and BS 7799 have been stepped up.
The construction activity of your companys second development center
at Visakhapatnam is going on as per the schedule.
I would like to take this opportunity to thank all our shareholders and
convey to them and their families best wishes.
Atlanta, USA. KRISHNA CHAND AKKINENI
July 16, 2007 Managing Director