Interestingly, the growth was not only linear as expected; there was a
 deeper penetration of smartphones, growth in mobile internet usage and
 the progressive evolution of the mobile handset into a
 multi-functional, multi- tasking communications support system.
 
 What makes this mobilisation interesting is that it extended to
 serious multi-industry applications across the banking and payments
 industry, health care, transportation, entertainment and content
 distribution.
 
 With most global wireless markets fully liberalised, operators are
 facing stiff competition, investing in technology and constantly
 launching innovative services to stay ahead.
 
 Megasoft is well positioned, as it offers cutting-edge technology
 services to a number of wireless telephony companies, helping them
 enhance their viability in a competitive marketplace.
 
 Opportunities
 
 What excites us at Megasoft are the vast opportunities in front of us
 and our readiness for it.
 
 - Mobile commerce: With the growth of money transfers and consumer
 mobile payments, mobile commerce represents the future. The
 
 global money transfer business is estimated to grow from US0 billion
 in 2007 to US trillion in 2014 (source: GSMA Mobile Money Transfer
 2009). Money transfers through mobile handsets are expected to account
 for a significant slice of this market. Besides, mobile banking is
 being increasingly seen by many countries as the best way to expand
 banking services to un-banked population clusters in their respective
 countries, circumventing the conventional brick and mortar approach
 completely.
 
 - Mobile advertising: The explosive growth in mobile subscribers is
 leading to a tremendous scope in advertising. The global mobile
 advertising market is expected to grow to around US billion by the
 end of 2011; Asia-Pacific is expected to account for the majority of
 revenues (Source: smarte-commerce.com, January 10, 2011). Mobile
 advertising is also poised to leverage the diffusion of advanced
 smartphone devices and the rapid expansion of 3G networks across
 countries.
 
 - Mobile banking: The electronic payments industry is growing rapidly
 in developing countries as mobile services address a service gap
 critical to their development. The advantages of mobile payments
 comprise transaction speed, no credit card reading, no paper slips and
 enhanced security. The electronic wallet will make purchases
 convenient all the time. Users of m-banking and related services
 (including money transfers) doubled between 2008 and 2009 to 55 million
 and are expected to reach 894 million by 2015 (Source:
 mobithinking.com)
 
 - Smartphone penetration: By the end of the FY 2011, the global
 smartphone market is expected to grow to 49.2% as more consumers and
 enterprise users turn to smartphones with advanced features.  According
 to the International Data Corporation, smartphone vendors will ship
 more than 450 million smartphones in 2011 compared to the 303.4 million
 units shipped in 2010; the smartphone market is expected to grow more
 than four times faster than the overall mobile phone market.
 
 As a mobile technology specialist, focused on real-time transaction
 processing in network infrastructure and prepaid, mobile commerce and
 mobile advertising, Megasoft is well prepared for the opportunities
 identified above. Our guiding principles of innovation, agility, and
 execution excellence, while always maintaining a customer-centric
 mindset, contributing to timely development and delivery of market-
 leading solutions, while building strong customer relationships and
 continually reinforcing our ability to deliver and support quality
 solutions and services. Additionally, as new market trends and
 opportunities emerge, we see Megasoft poised to capitalise on these,
 given our existing solution portfolio and experience, growing patent
 portfolio, strong telecom R&D, successful commercial launch and
 long-term support experiences.
 
 Additionally, Megasoft intends to emerge as a zero debt company, grow
 revenues through the launch of additional new products and solutions;
 strengthen our managed services model for new products and platforms
 enhancing revenue predictability; expand and upgrade our US data centre
 and infrastructure; strengthen the Indian R&D centre and back office
 infrastructure, as well as expand offerings and presence in Latin
 America and India, key emerging mobile commerce markets.
 
 We are optimistic of achieving these goals, resulting in the
 enhancement of values for the stakeholders in our Company.
 
 GV Kumar CEO