Net 4 India

It gives me immense pleasure to share with you that your Company
 continues to march on with continually high growth rates as over the
 last few years. I attribute his years growth leveraging and building
 further on the strong foundation of our people, infrastructure and
 unique yet vast spread of Internet Protocol based services.  it is
 with great pride that I am reporting the 9th consecutive year of
 profitable growth.
 
 Your company reported a consolidated total income of Rs 137.63cr,
 representing an increase of 33% from the previous year. Sticking to
 our policy of growth but not without profit our PAT grew by 27% to
 Rs 9.48 Cr. from Rs. 7.49 Cr. the previous year.
 
 This year we achieved what will be pivotal for your company in the
 coming years and that is the listing on Bombay Stock Exchange. Whilst
 the stock markets across the world witnessed significant weakness in
 the last quarter of this year, being listed on BSE will give your
 company significant medium and long term advantages. Amongst the most
 vital of these will be our ability to reward and retain our best
 talent by introducing a stock option scheme, which we aim to do this
 year.
 
 Your company continued to enhance its range of services through
 strategic partnerships. This year we introduced Hosted Microsoft
 Exchange services targeted at the sub 250 member companies. This has
 been done with a view of providing unified communication services in
 the near future. We also entered into an agreement with Verisign Inc,
 to deliver secure e-commerce solutions to businesses in India by way
 of providing customers with all VeriSign Secure Sockets Layer (SSL)
 solutions, including standard and Extended Validation SSL
 Certificates.  We aim to tightly integrate the same with our wide
 range of web services, especially for hosting and messaging services.
 
 The government policy, although carrying a dual effect for us, seems
 to be moving in a direction that will benefit players well positioned
 in our range of services. TRAI has held consultation sessions on
 allowing Unrestricted Internet Telephony, which wilts surely benefit
 us given our dominant position in the Enterprise VoIP space. TRAI is
 also of the view that ILD/NLD operators be allowed two stage dialling,
 i. e; Sell calling cards to subscriber of any mobile or land line
 network. Given our expertise in VolP,a nationwide network of
 distributors and resellers and the impending acquisition of lLD&NLD
 licences, your company is ideally poised to capitalize on this
 upcoming opportunity..
 
 The worldwide economic and financial outlook is surely something to be
 concerned about. However, we feel that we remain insulated from a lot
 of the problems as we are primarily concentrated on providing services
 to the mid market segment in India, with most of our services at low
 or medium price points and having significant uptake still to happen.
 Further the market for most of the services have already rationalized
 in the last few years and there is little or no price elasticity left
 beyond this point. Keeping all risks and bonuses in mind, I am
 confident that your company will at the very least deliver the kind of
 growth it has achieved in the last 3 years for the next 3 years to
 follow.
 
 Your Company is progressing well and is suitably placed for the future
 growth. 
 
 Sincerely,
 
 Jesjit Singh Sawhney
 CMD