Dear Shareowners,
 
 I am pleased to present the highlights of the spectacular performance
 of your company Kavveri Telecom Products Limited for the financial
 year 2011-12.  Kavveri, in this challenging business environment, has
 been successful to chart a growth path in terms of topline and
 bottomline performances wherein the revenue for the year ended March
 31, 2012 has increased by 47% to Rs. 454.28 Cr as compared to Rs.
 308.70 Cr during the previous year. Net Profit during the year
 increased significantly by 26% to Rs. 48.08 Cr as compared to Rs. 38.25
 Cr during the previous year. This was made possible due to the
 unstinted, committed and sincere efforts by the entire team at Kavveri
 to improve the shareholder value.
 
 Your Company continues to place thrust on Research and Development
 enabling it to meet the requirements of the Wireless industry to gain
 further market share for its products in the new technology frontiers
 in Telecom, Defence and Space fields.
 
 During the year, your company has acquired the telecom division of
 Rymsa Telecoms in Spain which became part of the wholly owned
 subsidiary of your Company in Spain called Kavveri Telecom Espana,
 having its core competency to design, develop and manufacture
 multi-port unique Base Station Antennas, Rymex in Mexico having its
 core competency to manufacture Base Station Antennas. I am very pleased
 to inform you that in the first five months of operations of Kavveri
 Telecom Espana, Spain we have been able to run the operations
 profitably for the first time in 10 years of its existence. This
 acquisition gives us access for all Kavveri products to the markets in
 Europe and South America.
 
 During July 2012, your company acquired the assets and business of
 Wireless Division of WPCS International Inc, USA (Nasdaq: WPCS) through
 its wholly owned subsidiary in USA called Kavveri Technologies Americas
 Inc (KTA). This key acquisition of Wireless Division of WPCS
 International Inc., in USA significantly enhances Kavveri''s expansion
 and positioning in US market for projected growth in both the cellular
 and public safety market segments. The acquisition will provide Kavveri
 with a comprehensive range of wireless systems solutions including
 In-Building for Public Safety and Cellular Applications, Network
 Solutions, Mobile Data, Asset Tracking, Radio Systems, Video solutions,
 Wireless Infrastructure and Integrated Business Systems and will strive
 to grow organically as well as inorganically in all its spheres. Your
 company has also incorporated a wholly owned subsidiary in the name and
 style of Kavveri Technologies Asia Pte. Ltd. at Singapore.
 
 As part of its strategy to make India a global hub of manufacturing for
 all its overseas subsidiaries, your company during the year has set up
 an Export Oriented Unit (EOU) at Jigani, Bangalore.
 
 Kavveri Telecom Infrastructure Ltd (KTIL) and the other overseas
 subsidiaries of your company continue to grow and are profitable. Your
 company continues to place thrust on its Overseas operations with the
 help of the subsidiaries and the step down subsidiaries to drive growth
 in these markets with newer products being introduced and new customers
 being acquired. Your company still continues to be in growth path by
 focusing on innovation and having valued customers globally.  With
 this, I would like to thank our Customers, Suppliers, and Bankers for
 their continued support and also the entire team at Kavveri Group of
 Companies for their constant and dedicated efforts to achieve the
 vision of being The best in Class Company of the world in the RF
 Products and Antennae field. I would specially like to thank all the
 shareholders for their support in taking this company to greater
 heights and glory.
 
 Best regards,
 
 C. SHIVAKUMAR REDDY 
 
 CHAIRMAN AND MANAGING DIRECTOR