Dear Shareholders
 
 Let me begin by saying that our vision determines our mission, and our
 solutions are derived from our mission. We started small to eventually
 make a big impression. How else will you explain the fact that Nexxoft
 Infotel Ltd, which began as a small ERP solutions & service provider to
 the manufacturing and industrial sector, has today evolved into a
 provider of a host of solutions, including 3D Immersive solutions,
 Advanced security solutions, Remote infrastructure Management
 solutions, Manufacturing and supply chain solutions, Immersive training
 solutions to sectors like banking, insurance, medical hospitality;
 Interactive human interface systems using technologies like multi-touch
 displays, face recognition, speech recognition, virtual 3D Environment,
 to target segments like retail stores and outlets, restaurants, hotels,
 malls, film theaters and commercial complexes, among others. And the
 best part being, we are today providing the complete range of ERP
 solutions and have made it our goal to provide end-to-end business
 solutions, so the customer doesn''t have to go anywhere else.
 
 Technology and Operations front:
 
 Nexxoft armed with a unique blend of technology products, proprietary
 and third party solutions, has earned patronage from prestigious
 clients such as BEL and General Motors to name a few, within a short
 span of time.
 
 The company has grown at a CAGR of 75-80% from Financial Year 2007,
 highlighting unblemished and dedicated efforts from all teams. And this
 is a reflection of our management skill sets, HR talents, superior
 technology and the uniqueness of our products and solutions. The
 company posted a turnover of Rs 13.21 Cr, with PAT of just Rs 25.61
 lakhs for the FY 2007, while for the year 2010-11, the turnover and PAT
 were respectively at Rs 88.51 Cr and Rs - (2.37) Cr, thereby
 registering stupendous manifold growth.
 
 MaCro-Operational front:
 
 The company''s thrust and focus has been on innovation, technology
 piercing, R&D and the development of unique products and solutions. An
 offshoot of the above is its products and solutions such as 3D XFORCE
 Engine & Gaming, RFID solutions and Remote Infrastructure Management,
 among others. By far, our growth on all fronts is commendable resulting
 in a pleasing financial position, sizable market capitalization and
 stakeholders investment growth, among others. We believe in values that
 really drives us ahead with our vision and vitality. To realize our
 dream vision of becoming a Global Player providing end-to-end solutions
 with the unique blend of technology products and service offerings, we
 seek to:
 
 - Increase from existing & new clients
 
 - Expand geographically
 
 - Continue to invest in R&D, Infrastructure and employees
 
 - Continue to enhance our engagement models and offerings
 
 - Enhance our brand visibility
 
 - Pursue for strategic alliances and strategic acquisitions
 
 We have, at the moment, a strong business model consisting of the
 following three segments contributing to our growth so
 
 - Proprietary products & solutions
 
 - Third party products
 
 ©Training and software services, including management services and
 service-oriented architecture, among others, believe in thriving for
 newer opportunities, newsegments and deepening of our base to reach our
 goals
 
 Helping us in our mission to become a Global Player is the global
 environment we are presently operating under. The economy is
 recovering; there are sustainable growth projections of the Indian
 economy and there is stability in the global markets. In addition, we
 have our own set of internal factors and skill sets that are going to
 be facilitators in our path of accelerating growth to become a Global
 Player.
 
 The year under review witnessed yet another feather inour cap with our
 products -the XFORCE Engine & gaming. We believe that this 3D immersive
 solution would enable us to deliver a wide range of solutions to our
 existing customers as well as help us unearth newer opportunities with
 fresh clients. These products are expected to provide great leverage in
 scaling upof our operations and thereby result in more growth in the
 near future.
 
 I would like to thank all the stakeholders for believing in us without
 whose support, this would not have happened.
 
 With warm regards,
 
 G Dhananjaya Reddy