Digital Globalsoft

Dear Shareholder:
 
 It gives me great pleasure to share with you the Annual Results of
 Digital GlobalSoft Limited for the reporting period 2002-2003.
 
 This has truly been a significant year in the IT industry, and even
 more so for the Indian IT services industry. The global economy
 meltdown and the aftermath of 9/11 caused enterprises around the world
 to make fewer new IT investments. Instead, they were focused on return
 from their previous investments. The focus for Indian IT service
 companies shifted from providing 'time to market' advantage to
 providing predictable cost savings over time. This re- invention of the
 value proposition has enabled the sector to remain aligned with new
 customer expectations in an ever-changing business environment.
 Additionally, with the increasing reliability and availability of IT
 infrastructure, enterprises are now more open than ever to consider
 offshoring in all the critical processes of their business.
 Outsourcing and offshoring have become mainstream strategies for most
 large enterprises.
 
 I am glad to report that your Company's strategy to address new market
 needs and capitalize on new opportunities has met with considerable
 success. We have made significant investments in physical and IT
 infrastructure, new offerings such as Security, Enterprise Help Desk,
 multi-modal contact center and new quality regimen such as ITSM and Six
 Sigma in anticipation of these needs. The business traction we are now
 seeing as a result of these investments is exceptionally high.
 
 Over the last few months, several global enterprises have visited our
 new Digital Park Campus at Bangalore's Electronics City. I am pleased
 to say that many of these visits have resulted in new business. This
 includes a Network Operations Center for a Telecom major, an Enterprise
 Help Desk for a global FMCG and a Remote Monitoring and Management for
 a Financial Services giant. Our Contact Center, which began by
 servicing the needs - of HP's commercial and retail customers, is
 scaling up rapidly. The Contact Center has achieved superlative
 customer satisfaction and quality scores. I truly believe that we are
 in the transition phase from being an 'early mover' to playing a
 leadership role in this business.
 
 Our relationships with existing customers have deepened further over
 the past year resulting in new and more significant engagement
 opportunities. Additionally, you will be happy to learn that we have
 added a large number of new customers during the year, leveraging the
 capability created while servicing the parent HP's IT requirements.
 Your Company added a total of 127 new customers over the course of the
 year.
 
 Our multi-dimensional relationship with HP continues to be a source of
 great strength to us. HP is a parent, supporter, customer and investor.
 Your Company's business prospects have been buoyed by HP's increasing
 focus on services as a potential high growth area and its recognition
 of the India offshore story. Digital GlobalSoft is strategically
 positioned to gain from the opportunity and support offered by the HP
 relationship.
 
 I would be remiss if I did not mention the dedication and commitment of
 our employees. As of March 31, 2003, we have 2,490 professionals at
 Digital GlobalSoft, located in many locations around the world. These
 have not been easy times and our GlobalSoft team has risen to the
 challenge and delivered in a difficult environment. The Digital Way
 is reflected every day in the words and actions of our employees. I
 believe that collectively we have lived up to our motto Promise of
 Trust and Passion for Delivery.
 
 Finally, I would like to thank you, our shareholders, for your
 continued support that has greatly inspired us to remain committed to
 our long-term corporate objectives.
 
 Successful service companies in the future will display agility and be
 able to respond quickly to changing customer needs. Digital GlobalSoft
 possesses that trait and capability. I am confident that the leadership
 provided by our management team, and the continuing commitment of all
 our stakeholders, will allow us to scale new heights in the coming year
 and continue our tradition of outstanding performance.
 
 Yours Sincerely,
 
 Peter A. Mercury
 Chairman