Dear Shareholders,
 
 Ahead On Agility-Interview With The MD
 
 In terms of business areas, what has been the prime driver in the year
 2010-11 and what have been the main developments in these fields?
 
 Managed Services has been the growth driver for Omnitech for the last
 fiscal. RMS (Remote Managed Services), Domain Specific services and
 Performance Management services have been the front runners. We are
 firmly moving towards becoming the transformational partner for
 mid-sized companies in India and across the world, which enables us to
 create value for our global customers and differentiate us from our
 competition. We have expanded our geographic spread in the domestic
 market as well as in the international territory (new sales offices in
 Bangalore, Hyderabad, Delhi, Hong Kong and Europe).  BFSI,
 manufacturing and IT/ITES have been the key verticals for us and we are
 seeing a lot of traction from the Retail Healthcare and Government
 sector.
 
 How are the company''s global operations interdependent and how are they
 coordinated? how is this changing Omnitech as a company?
 
 We have become a multi-locational, multi-layered global matrix
 organisation. We have adopted a hub and spoke model for our global
 operations and we are getting smarter with experienced professionals on
 board. In addition to Sales, Pre-sales and Delivery, we have added a
 layer of Practice organisation not only to maintain uniformity and
 seamless functioning across geographies but also derive the benefits of
 both centralised as well as decentralised operations.
 
 Avensus''s domain of Information Security presents a cross selling
 opportunity for Omnitech to take to more customers while the Managed
 Services from Avensus can reap the advantage of being delivered out of
 India. Likewise, we have a channel to sell Infrastructure Management
 and Disaster Recovery/Business Continuity in Europe to existing and new
 clientele. Domain specific services for our BFSI client base managed by
 Singapore operations also leverage the Indian base for better margins.
 
 We have well implemented global standard processes with local touch
 thru Regional Blue Print (RBP) for efficient communication and
 coordination. We have imbibed our agility and core values in our work
 culture across the world. Our internal alignment and synergies will
 directly reflect in what we can do for our client enterprises, so we
 are attentive to the integrative elements in our culture.
 
 What are the key customers looking ahead to at this time, what are
 their expectations like, especially from Omnitech? What sort of
 opportunities for organic/new growth would this translate to?
 
 Key customers look at both depth and breadth. We are able to provide
 niche services specific to the industry verticals like market data
 analytics, trade floor services etc, for large enterprises. In terms of
 breadth - it''s about providing services on demand as the outlook at
 SMEs (small and medium enterprises) is changing and they perceive IT as
 the key business enabler over the coming 3-5 years. In either of the
 cases, the customer is indeed looking at a reliable partner with the
 expertise, who is just not providing technical services & solutions but
 provides business support services which eventually help customers to
 achieve Growth, Efficiency and Cost without compromising the service
 quality. This brings a huge growth opportunity for Omnitech to get high
 value – multi-year contracts and thus addressing a large addressable
 pie of customers'' IT budget.
 
 Customers are also looking at the potential of buying services along
 the utility model. We are aiding companies in understanding and
 planning a transition to adoption of Cloud Based services which are
 billed as per usage. Agility is an important requirement in business
 and our customers turn to us to help them achieve it so that they are
 not overtaken by change and their competition''s moves in the market. So
 our advocacies of agile methods work to their business advantage.
 
 What challenges has the Company identified as important and has been
 addressing/tackling in recent months?
 
 The company stands to make tremendous gains by reducing time-to-market
 and so we are addressing that through our Project Aryabhatt initiative.
 Headed by our Joint Managing Director, Mr Avinash Pitale, there is an
 Innovation Team which consists of people at every level who constantly
 work on newer technologies and innovative ways of delivering. We thus
 encourage a bottom up approach well supported by the executive team at
 the top. A continuing challenge is the retention of the Key Team,
 maintaining the quality of talent and raising their performance. We
 have provided ESOP''s to the entire key team that makes them responsible
 for the performance of the company. In addition to this every employee
 has to undergo compulsory minimum training hours across the
 organisation.  In addition, there is training that is specific to the
 role/responsibility. It aggregates to over 10000 man- hours of training
 which includes MDPs as well. We have as training content for both
 technical and soft skills which is mapped with the organisational goal
 and the career plan for individuals.
 
 What is Omnitech''s strategy to retain people in the organisation?
 
 The philosophy of an agile enterprise, when it has been inculcated
 through rank-and-file, also strengthens the meaning and positive belief
 behind every individual''s efforts. Other than compensation, and a
 career plan, Omnitech has put in place a leadership identification
 programme Rising Stars which focuses on young people and the power of
 their commitment. I am happy to be able to say there is no attrition at
 the KMP level. These are our Key Management Personnel who immediately
 support our Core Executive Committee in managing our enterprise and
 delivering to our clientele. We have made sure they get influential
 roles and strategic autonomy. This ensures their concrete engagement
 with a quantum of challenge as well as opportunity in front of them.
 The rotational possibilities across locations and sites also maximise
 exposure and learning and capacity development. In addition to this we
 have made them responsible for the Company''s performance by means of
 ESOP''s.
 
 What type of business is expected to lead the action in 2011-12
 following on this year?
 
 Managed services would be the flavour for the fiscal 2011-12. What will
 change is definitely the way we deliver our services and newer services
 getting added to the existing portfolio. DR/BCP would continue to grow
 on absolute numbers but the percentage contribution to the revenue
 would be flat or decrease marginally. Companies are also increasingly
 turning to IT to derive their competitive edge and drive up their
 operational excellence. This presents us with the scope to take the
 lead and demonstrate our preparedness to develop and deliver what is
 mission-critical for our clientele at this time. As end-users expect
 convenience and 24x7 access, marketers have to maintain cell phone
 access and enable anytime transaction. This means a lot of new apps
 deployed very quickly across a diversity of platforms.  Agile is the
 key word here - there is no other way to keep pace or respond. Agile is
 a source of competitive advantage.
 
 What is the management outlook towards keeping the focus on performance
 and revenues?
 
 At Omnitech we are committed to enhance and improve the overall
 profitability and functioning of the organization instead of being too
 aggressive on increasing our topline. We are doing right things for our
 first cross border acquisition so that we derive maximum synergies and
 make that business more profitable.
 
 On the other hand expansion of services, markets, customer types and
 our footprint in India, Far East and Europe through organic and
 inorganic route is the other prong of our growth strategy. In the short
 run, it will affect margins but we are balancing between growth and the
 bottom line even as we pursue both domestic and overseas
 acquisitions/strategic Alliances.
 
 As utility computing gains ground, it will re-define the relationship
 with the customers. It can offer stability without the burden of owning
 a lot of IT infrastructure and becoming asset-heavy. We are also seeing
 longer-term contracts with major customers as the plans look at a
 longer horizon than earlier.  Such models for buying Computing Services
 will enable faster strategic decisions and implementations for
 customers, and their own agility potential will be unleashed.
 
                                                       Atul M. Hemani
 
                                                    Managing Director,