Dear Members,
 
 Over the journey of 25 years, we have experienced many changes in the
 industry. The coming and going of different technologies and all the
 ups and downs of the economy - but the one thing that has remained
 sustainable over the years, and is core to our success, is our
 commitment to our customers and partners and listening to meet their
 needs and help them be successful.
 
 The journey started way back in 1989 when Company was incorporated as
 Codec Communications Private Limited, providing software services.
 During January 2002, it joined hands with a division of Hands-on group.
 Subsequent to this the Company acquired assets in F&A segment of BPO
 sector and developed and managed those acquired assets to grow.
 
 In September 2006, it entered into public market by IPO and became a
 public company and currently its equity is listed both at National
 Stock Exchange and Bombay Stock Exchange.
 
 In February 2007, the Company acquired Larson Inc, a global Business
 Process Outsourcing provider in the Transaction Management, Insurance
 and Tax and Enterprise Service Industries. With that acquisition, HOVS
 and its global workforce constituted more than 11,000 employees who
 served more than 50% of the FORTUNE 100® companies—including more
 than 4,000 active customers in the North American marketplace.
 
 In April 2011, the Company took another leap step by merging its
 indirect subsidiary HOV Services LLC (HOV Services) with SOURCECORP,
 Inc. (SOURCECORP), a portfolio company of Apollo Management V, L.P.
 The combined company emerged as Source HOV Inc., reflecting the union of
 our two companies and our expanded capabilities. Source HOV with over
 5 million in revenue, is one of the largest pure play BPO and
 specialty consulting companies in the industry, serving customers in
 more than half of the Fortune 100® with deep domain expertise,
 including document centric applications, in Healthcare Player and
 Provider, Finance and Banking, Public Sector, Publishing, Legal,
 Insurance, Manufacturing and Commercial industries, including
 specialized consulting services for construction management, tax
 benefits, legal claims settlements and economic consultancy. With the
 combination, the company''s global workforce is now more than 14,200
 employees operating from approximately 80 delivery centers in 13
 countries including the U.S., Mexico, Canada, India, China, Philippines
 and others.
 
 I am pleased to inform that today Your Company has no Debt, no Goodwill
 in Financial statements and enjoys the highest equity investment value
 through our one of the key portfolio company Source HOV. By doing that
 our India base is still better and strengthened than ever before.
 
 We have long history of industry-leading performance and of sustained
 value-creation for all our stakeholders and confident to keep on doing.
 
 Our second portfolio company HOVESPL had entered into environmental
 protection business and initiated its first project of building
 artificial reef at Mirya beach, Ratnagiri. Post completion of this
 project HOVESPL would be a player in providing solutions in coastal
 protection management. With this new portfolio the HOVS had entered
 into another new business segment of environment solutions.
 
 I am thankful to each one of you for showing trust and confidence in
 the management of the Company.  By & large your Company''s management is
 completely geared towards accomplishing new milestone, diversifying
 Company''s growth and enhancing shareholders value.
 
 Lastly, on behalf of Company''s board of directors I would like to
 acknowledge efforts made by each and every employee of our HOVS family
 for their dedication towards work and for overcoming challenges
 encountered while executing new projects.
 
 Best regards and thank you all,
 
 Sunil Rajadhyaksha
 
 Chairman & Executive Director