To the Members,
 
 The Directors are pleased to present the Nineteenth Annual Report
 together with the audited accounts of the Company for the year ended
 31st March, 2012.
 
 RESULT OF OUR OPERATIONS
 
                                                        (Rs. In Lacs)
 
 PARTICULARS                                  2011-2012    2010-2011
                                                  (Rs.)        (Rs.)
 
 Gross Total Income                            41951.66     31416.18
 
 Gross Total Expenditure                       41562.85     31274.55
 
 PROFIT/(LOSS) BEFORE INTEREST,                  388.81       141.63
 DEPRECIATION, TAX AND AMORTIZATION
 
 (Less): Depreciation &Amortization                3.99         0.77
 
 (Less): Finance charges                           8.21         7.95
 
 PROFIT BEFORE TAXATION/DEFERRED                 376.61       132.91
 TAX
 
 (Less): Provision For Taxation                  111.87        34.01
 
 (Less): Fringe Benefit Tax                           -            -
 
 NET PROFIT/(LOSS) FOR THE YEAR                  264.74        98.90
 
 Balance Brought Forward from Previous year           -            -
 
 BALANCE CARRIED FORWARD TO                      264.74        98.90
 BALANCE SHEET
 
 Earning Per Share                                 4.50         1.68
 
 DEPOSITS
 
 The Company has not accepted any deposits during the year within the
 meaning of the Companies (Acceptance of Deposits) Rules, 1975.
 
 REVOCATION OF SUSPENSION OF LISTING
 
 It gives us immense pleasure to inform our valued and loyal
 shareholders that your Company''s scrip which was suspended by Bombay
 Stock Exchange (BSE) in 2002 due to penal provisions is re-listed on
 the Bombay Stock Exchange again.
 
 CURRENT OPERATIONS
 
 In today''s rapidly changing business scenario, information is the
 power to propel ahead.
 
 Today with the advancement of science and technology, information is
 growing not merely by bytes but by terabytes and dealing with such
 voluminous information is a huge challenge for businesses to make quick
 and speedy decisions.
 
 Diamond Infosystems Limited, a group company of Diamond Power, is
 amongst the fastest upcoming and growing services, BPO and Product
 Engineering companies.
 
 The operations of the Company now can be classified into following
 segments:
 
 1. IMG Division (Infrastructure Management Group)
 
 Under the IMG Division Diamond Infosystems has a wide array of products
 and services to offer under the following heads:- 
 
 System Integration
 
 Hardware sales & services
 
 DIL offers a large and varied set of product sales and services
 including a full range of hardware solutions from entry level
 PCs/Notebooks to high-end servers for the needs of Corporate, Small
 Business and Home customers. We also provide/sell various hardware
 devices from various business alliances like DELL, HCL, Intel, HP, IBM,
 Toshiba to name a few.
 
 Network Integration
 
 Our Network Integration solutions and services ensure that your
 communication networks deliver the performance your business relies on.
 Our Network Integration solutions and services ensure that your
 communication networks deliver the performance your business relies on.
 
 Peripheral Sales & Services
 
 DIL also provides peripheral sales and services from various partners
 with competitive market rates and enables quick after sales service.
 
 System Maintenance & Upgradation
 
 DIL has a very prompt customer helpdesk for quick reporting and
 on-phone guidance. It is also equipped with latest debugging tools &
 equipment.
 
 Web Solutions
 
 Diamond Infosystems is helping companies leapfrog into the future by
 creating a strong web presence. Our web solutions are helping turn 9 to
 5 business operations into 24*7 revenue generating machines. Our web
 services and solutions include:-
 
 Domain Registration
 
 Domain names from DIL give you a complete web presence. Registering
 your domain names with DIL ensures you great customer service, the best
 pricing along with a host of other features.
 
 Website Hosting
 
 We are one of the most competitive web service providers offering host
 of services for building your web presence. We specialize in composite,
 managed servers, dedicated servers, dedicated hosting, virtual private
 servers (VPS hosting), ASP.  NET and LAMP web hosting solutions. We
 provide hosting solution for both Windows and Linux platform both.
 
 Website Designing 
 
 Diamond Infosystems specializes in highest quality interactive
 websites, logos, and templates as well as ecommerce website design and
 also specializes in Website User Interface, Website Re-design, Web 2.0
 based Layout Designing, HTML/CSS,DIV/CSS (Table less Designs) and
 JS/DHTML.
 
 E-Commerce Development
 
 DIL focuses on custom Ecommerce solutions & custom web site development
 that fit your business challenges. Our Ecommerce initiatives improve
 sales performances, customer satisfaction and marketing initiatives
 undertaken by a company.
 
 Applications
 
 IT Enabled Services
 
 Networking Management Solutions
 
 The company has revived the business of hardware and networking
 solutions it had expertise of, the basic reason of reviving the sector
 was to offer the small and medium sector ERP customers for MICROSOFT
 products with one stop solutions to their hardware and networking needs
 along with the software.
 
 - Microsoft Dynamics CRM
 
 Diamond Infosystems Ltd offers you the benefit of working with the most
 experienced Microsoft Dynamics CRM implementation team in the world.
 Our Microsoft Dynamics CRM team members have on average more than eight
 years of product experience.
 
 2. AMG Division (Application Management Group)
 
 We offer the following services under our AGM division:- Enterprise
 Resource Planning (ERP)
 
 Based on the experience and expertise gained on implementation and
 maintenance of SAP, R/3 and ERP package; now the Company is equipped to
 take scale assignments for AS-IS, TO-BE, GAP Analysis, Business
 reengineering, Customization, Implementation and going live. Basically
 this expertise and presence in the market has positioned as
 strategically in the market to sell and implement the products offered
 by MICROSOFT India as MICROSOFT Certified Partner.
 
 Microsoft Dynamics NAV
 
 Diamond Infosystems offers you the benefit of working with one of the
 most experienced Microsoft Dynamics NAV implementation team which
 possesses more than eight years of product experience. They are experts
 at devising back-end financial, supply chain management, and e-commerce
 solutions for manufacturing and distribution environments.
 
 SAP Business One
 
 SAP has designed SAP Business One, a business management software
 application, specifically for small and midsize businesses (SMBs) which
 are used by over 10,000 customers today. It is an affordable,
 easy-to-use way to manage critical business functions across sales,
 distribution, and financials. Diamond Infosystems offers SAP Business
 One, which has enabled owners to increase profitability and achieve new
 levels of control.
 
 FUTURE PROSPECTS
 
 Your Company sustains a relentless competitive focus as the economic
 climate is expected to remain challenging. Your Company will continue
 to deploy resources in a focused manner to secure stakeholder interest
 and pursue growth.
 
 The future prospectus of the industry is grim thus it is very important
 for us to sustain and venture into new and better areas within the IT
 industry to survive and make the entity profitable. As a measure of the
 same, it gives us immense pleasure to inform you that Diamond
 Infosystems Limited would be soon opening an office in Dubai followed
 by South Africa and New Zealand to manage its business operations
 abroad.
 
 FIXED DEPOSITS
 
 The company has not accepted any deposits from public during the year
 under review to which provisions of Section 58A of the Companies
 (Acceptance of Deposits) Rules, 1975 as amended is applicable.
 
 INSURANCE
 
 All the insurable interests of our Company including inventories,
 buildings and liabilities under legislative enactments are adequately
 insured.
 
 PERSONNEL
 
 Growth is never by mere chance, it is the result offorces working
 together.
 
 The employees of your company being firm believers of the cited
 quotation with their loyalty, dedication and hardwork have nurtured
 Diamond Infosystems Limited resulting to what it is today. Due to the
 trained and qualified personnel, we are uniquely positioned to offer
 superior and distinctive services to our clients.
 
 QUALITY CONTROL
 
 Your company''s mission is to cater to the needs of its clients by
 providing high quality services which would strengthen the customer
 loyalty. In terms of quality, the Company is certified by ISO 9001-2008
 which acts as a benchmark to the Company ensuring continued high
 quality services enabling customer satisfaction.
 
 DIRECTORS
 
 In accordance with the Companies Act, 1956 and the Articles of
 Association of the Company Shri G N Verma and Shri Prakash Sinha
 retires by rotation at the ensuing annual general meeting. However,
 they are eligible for re-appointment.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 (i) Your Directors have followed the applicable accounting standards
 along with proper explanation relating to material departure, if any,
 while preparing the annual accounts;
 
 (ii) Your Directors have selected such accounting policies and applied
 them consistently and made judgments and estimates that are reasonable
 and prudent so as to give true and fair view of the state of affairs of
 the Company at the end of financial year and of the profit of the
 Company for the period;
 
 (iii) Your Directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of this Act for safeguarding the assets of the Company and
 for preventing and detecting fraud and other irregularities.
 
 (iv) Your Directors have prepared the annual accounts on a going
 concern basis.
 
 AUDITORS
 
 M/s. Vijay N Tewar& Co., Chartered Accountants, Vadodara, Auditors of
 the Company holds office until the conclusion of the ensuing Annual
 General Meeting and is recommended for re-appointment. Certificate from
 the Auditors has been received to the effect that their reappointment
 if made, would be within the limits prescribed under Section 224(1 B)
 of the Companies Act, 1956.
 
 CORPORATE GOVERNANCE
 
 A separate section Corporate Governance and certificate from the
 Auditors of the Company regarding compliance of conditions of Corporate
 Governance as stipulated under Clause 49 of the Listing Agreement with
 Stock Exchange, forms part of the Annual Report.
 
 ACKNOWLEDGEMENT
 
 Your Directors take this opportunity to express their gratefulness to
 SEBI, Bombay Stock Exchange, Government Authorities, Bankers, Employees
 & its Shareholders for their continued support and co-operation.
 
                                       FOR AND ON BEHALF OF THE BOARD
 
                                                             Chairman
 
 Place: Vadodara
 Date : 14th August, 2012