DearShareholders,
 
 Let me start with a very personal observaton, I did not think I would
 find myself in the situaton of leading the Company once again. However,
 shareholders should be assured that I am doing all I can to ensure
 Geometric is a strong,scalable entty.
 
 The last year saw revenues rise significantly by 26% in US Dollar terms
 and profits on a consolidated basis increased to record level of Rupees
 575 Million or Rupees 9.24/Share.  What was even more encouraging was
 that the share of profit contributed by Geometric, excluding our
 subsidiary 3DPLM, rose from 36 % of consolidated profits in the
 previous year to 51%of the total profit.
 
 The strategy the Company should take up has been well addressed so
 there is no need for a change. Furthermore, we are blessed to be in an
 environment where there is a good demand for our services and solutons.
 The needtoundertake product development in a cost effectve and rapid
 manner is increasing. Manufacturing facilites are being restructured in
 existng locatons and facilites being set up in new locatons.  Both
 these trends create more opportunites for a company like Geometric. So
 my agenda for the next few months is to focus on creatng the
 environment which will take advantage of these trends, thus ensuring
 growth both in revenues and margins, which in turn will help Geometric
 become a scalable enterprise.
 
 While the directon is clear, there are several steps we need to take,
 some of which are difficult to implement. Let me highlight a few of
 them.
 
 1.  Create clear and easily identfiable offerings: While we have always
 addressed a very specific market, our emphasis on ‘tell us what to do
 and we will do it’, is no longer adequate for our customers. We are
 expected to help them identfy solutons, extract the best from their
 investments, and even take ‘ownership’ from design to implementaton to
 maintenance. For example, a major automotve customer with disparate PLM
 environments in different locatons has askedus to builda bridge,
 maintain it and then beresponsible for the data exchange. Thus, it is
 important we package our capabilites into solutons which meet
 customers’ needs, thereby enabling us to cut down sales cycle tmes
 while improving our margins.
 
 2.  Build IP led solutons: Traditonally Geometric has been well known
 in its market for its creatve niche technologies. But here too our
 customers are not interested in the technology per se but in solutons
 to their problem. For example, we possess great Intellectual Property
 (IP) in Feature Recogniton, DFMPro, etc; yet they do not find ready
 acceptance in our industrial customer base. However, when we built a
 solution called ‘should costing’, using these technologies to create a
 predictive model for the cost of a component, our selling cycle reduced
 dramatcally and gave us a significant competitive advantage supported
 by good margins.
 
 3.  Improve efficiency and quality: While we have a number of
 certficatons, I believe we have a long way to go in creating an
 ‘engine’ wherein we utilize our learnings from complex projects we have
 successfully implemented, and thereby add value to our customers.
 Unfortunately there is no shortcut to improvements. We have to clearly
 identify the relevant processes, document them, and then ensure their
 implementaton through enforced discipline and competency building.
 
 4.  Think and act globally: While our customers need global support and
 we have invested in facilities in relevant parts of the globe viz.
 North America, Europe, China and India, we face two problems. Many
 parts of the Company often remain India centric, and at times our
 processes discourage working together as a team. We need to think and
 act globallytooffer our customers total solutions at a lower cost while
 improving our margins.
 
 5.  Align incentives with objectives: The previous paragraph highlights
 the need to align incentives. Other changes we have to make include
 better rewarding our sales team for orders, which result in multiyear
 contracts, predictable revenues, and higher margins. Similarly for
 delivery teams, variable pay has to be more effectively linkedto
 quality and timely delivery which in turn will lead to higher margins.
 
 6.  Be partners to our customers: The discernible thread through all
 these points, is our customers expectations.  They have told us they
 want to work with us in a closer collaborative manner, sharing their
 vision and objectives, their pain points and constraints, so that
 together we can help them build solutions which will give them a
 competitive advantage. We need to understand, the days of ‘tell us what
 to do’ are behind us.
 
 I understand that none of this is‘ rocket science’, but implementng it
 is hard. Our objectves are clear, closer, deeper and a longer term
 approach with our customers, which must lead to higher revenues at
 better margins as we provide greater value. Thus, while containing cost
 is very important, creating value is the future. As I said earlier, we
 are fortunate to be blessed by good demand for our services, which will
 make it easier to achieve these objectives.
 
 In closing, I thank our employees, in particular, the management team
 for their support and understanding, and the Board of Directors for
 their encouragement and support. It now remains the task of the
 employees, Directors and myself in particular, to ensure were ward our
 share holders for their patience.
 
 Manu M. Parpia
 Managing Director & CEO