Dear Shareholders,
 
 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
 Financial Year.
 
 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