Mascon Global

Chairman Speech
 
 We have delivered solid turnaround performance over the course of the
 past several years. This has been the result of hard work by our
 management team and all the people of MGL. In addition, we have been
 pleased to welcome a number of new team members who have joined us in
 building our vision. I am immensely proud of and grateful to our team
 for their continuous focus on building client relationships, constantly
 innovating, employing creativity, and embracing difficult conditions
 and change as the environment demands it.
 
 The journey to build the next generation MGL has just begun. We. are in
 the midst of probably one of the most unsettling business conditions of
 the last 50 years. The banking crisis has adversely affected the
 liquidity in the market, and the war in Iraq, ever-increasing oil
 prices, and an extraordinary shift in wealth from the Western to the
 Eastern hemisphere have all added up to market uncertainties. While US-
 and European- centric businesses continue to be global powerhouses,
 they will need to reinvent themselves in these trying economic
 conditions.
 
 We believe that the technology services business will continue to be
 robust for companies like MGL, which have the ability to lower their
 operating costs, while improving delivery capabilities. However, the
 profitability of business models such as ours will be determined by
 delivery success and prudent financial management. We believe that if
 we are able to couple productivity with the ability to solve our
 clients technological problems, we will emerge as leaders.
 
 Key facts about the company in 2007-08 are:
 
 Revenue grew in five years at overall compounded annual growth rate of
 46%
 
 Earnings Per Share (EPS) at EBITDA level at Rs 3.6 has grown at a
 compounded annual growth rate of 19% between 2005-08
 
 Assets have grown 78% over the past one year Free cash flow of Rs 1,030
 million in 2007-08
 
 The company spent Rs 203 million upto 2007-08 in building our
 technology base
 
 The company has created focus in four domains: Manufacturing, Financial
 Services, Healthcare & Life Sciences, and Telecom
 
 The company continues to add capabilities in its technology solutions
 domain with additions in Security and Identity Management,
 Infrastructure Management, and Business Intelligence
 
 The turnaround of MGL has been challenging; but we have met with
 remarkable success given the difficult market constraints. Technology
 services companies are exceptionally difficult to manage and extremely
 vulnerable with acute shortages of key personnel and continuous
 evolution of technology and business models.  These businesses are
 often faced with strong, profitable, and widely acknowledged and
 celebrated competition.  The financial markets may take time to fully
 recognize the value of good management and their ability to build value
 for investors.
 
 We have built reasonable scale and profitable operations and, more
 importantly, a team of leaders who are the best in class.
 
 We have embarked on our growth trajectory both organically and through
 strategic acquisitions. We have infused our intellectual breadth with
 entrepreneurial and visionary leadership through these acquisitions.
 
 As with a tree, which by nature constantly adapts to its environment,
 ever deepens its roots to provide security and longevity, and even
 transforms itself over the long-term into something different from
 which it started, we have added and grown our own strong branches and
 roots that have strengthened our resolve and our ability to be a
 significant player in this industry.
 
 Our vision for the coming few years will be achieved through
 Transformation of our company. As we strive to build scale,
 profitability, and good governance of our enterprise, the challenge
 will be to build a company that will be acknowledged as the thought-
 and innovation-leader in our industry. This is only possible through
 the dedicated teamwork of extraordinary people, a strong ingrained and
 transformative culture, and the will to evolve and succeed.
 
 At MGL, we understand that people are the roots of all transformation
 and innovation.  As a tree adapts itself to constant environmental
 change, we will continuously engage in innovation and transformation in
 everything we do. This will become the hallmark of our new culture: the
 extraordinary spirit of entrepreneurship.
 
 We believe that our management team can build a new culture infused
 with this vision, strategy, and entrepreneurship.
 
 In businesses such as ours, execution is the most critical skill. The
 ability to successfully create a transformative culture, vision, and
 strategy will catapult us to be among the most valuable businesses in
 our industry. At the core of becoming the next generation technology
 leader, is our ability to gain an in-depth understanding of clients
 requirements across all domains, and our capability to help them
 execute on a course toward growth and greater profitability.
 
 Our innate sense of corporate values and brand identity are important
 features in building loyalty. Acquisitions will add to domain expertise
 and intellectual property enhancement. However, client penetration will
 add to the complication of building shared values and a common
 identity. To tackle such challenges, we have created a strong team that
 will work towards building our brand and communicating our vision to
 all stakeholders, We believe that these investments will bear fruit
 over the coming years.
 
 To accomplish this, we have redefined MGL with distributed
 entrepreneurship supported by a common backbone. The intent of this
 strategy is to achieve best-in- industry growth, coupled with
 operational excellence, thus helping us become one of the best places
 to work, anywhere in the world.
 
 We have also made considerable progress in defining our transformation
 objectives. All these initiatives that we have undertaken will help MGL
 to:
 
 Deliver consistent profitable growth
 
 Deliver exceptional service to our clients
 
 Invest in product development and research to create intellectual
 property and to support emerging technological and business changes
 
 Develop human capital in our industry
 
 Create proprietary offerings as license revenue to build value within a
 given industry and provide our clients unique solutions, as well speed
 to market
 
 Create assets, such as configurable trading platforms, which enable us
 to implement market-ready and unique solutions for our clients
 
 Leverage our industry expertise and business process skills to help
 clients transform fundamental technology operations
 
 Focus on several vertical domains such as Manufacturing, Financial
 Services. Healthcare and Life Sciences, Telecom, and others and acquire
 to build scale and industry dominance
 
 Focus on product engineering and technology solutions to be able to
 support our domain focus, as well to emerge as a leading technology
 solutions company
 
 We exist because of our clients and we constantly strive to become a
 part of their fabric of growth and their strategy. We will build
 trusted relationships with our clients through differentiated skills
 that will support their ability to solve their toughest business
 challenges in real-time and at a significant cost advantage
 
 Internally, we will invest in innovation as a growth strategy. Our
 end-goal is to become a high-performance company that can be sustained
 over the coming decades. All of this will be possible only through the
 teamwork of people who share a common dream and have the ability to
 execute it. Our dream to become a leading company will only be possible
 when we challenge ourselves to grow and deliver far beyond what is
 expected of us. We have been doing this in our turnaround journey and
 we hope to sustain it in our next chapter of transformation.
 
 Finally, business ethics and corporate governance are the pillars of
 reputation upon which publicly held organizations are built. The
 management and the entire team must be measured by standards that we
 maintain in all forms across our business processes.
 
 Visionary management, client value creation, employee value creation,
 respect for individuals, integrity, and building the best talent pool
 possible are our core, unswayable values.
 
 I would like to thank Greater Pacific Capital, and all other
 institutions such as Laurus, SBI, ICICI Bank, and others, for their
 support during this extraordinary stage of transformation at MGL.
 
 I look forward to your continued support.
 
 K Chandra
 Chairman