It gives me great pleasure to share with you the endeavour your Company
 has made vis-a-vis the strategy it has adopted and also share with you
 the strategic path ahead in the light of emerging global trends.
 
 Your Company has, over the years, positioned itself as a Solutions
 Company rather than a pure Services or a pure Products Company,
 thereby achieving a study and balanced growth. This is reflected in the
 inorganic growth your Company has achieved over the years in revenues
 and margins across geographies, offerings and customers after vesting
 of the software export division into it, pursuant to the sanction of
 the scheme of Arrangement by the Bombay High Court in the month of Sept
 2003.
 
 The success of any strategy is best reflected by the objective results
 achieved and endorsements by credible third parties.
 
 While it moves ahead, your Company also ensures that it follows the
 best governance practices and remains financially strong. It therefore,
 constantly benchmarks itself against best practices.
 
 Any strategy would need to take into account the economic environment
 in which the enterprise operates. I would therefore like to share with
 you some aspects of the global economic scenario vis-a-vis the
 Companys strategizes to operate in this environment.
 
 At a time when the industry is passing through tough times with
 mounting currency pressures, and overall global slow down, we at Parle
 Software Ltd. are committed more than ever to deliver significant value
 to our customers and to our stakeholders. Our belief is that the recent
 economic events are an opportunity for us to realign our business
 models and offer these differentiated solutions to our customers. There
 is an increased interest across our customer base for deriving the
 benefits of the global delivery model.
 
 During the year your company has taken the strategic management action
 for carrying out the software development activities exclusively
 through its associates Samay Techno Corp and Universal Technologies
 from the next financial year 2008-09 onwards.
 
 This strategic management action is proposed to be taken by your
 company with the objective of wealth maximization and to mitigate the
 business risks imposed by the uncertain economic conditions in the
 country and current global turmoil situation. We believe the steps
 initiated should bring considerable value to our shareholders, clients
 and employees in the coming year.
 
 Your Company has, through an organic and acquisitive approach has plans
 to develop a range of offerings in the ERP Solutions space through
 its associates , which will meet the requirements of both the emerging
 Asian markets and the developed markets. It is, therefore, well
 positioned to take advantage of the emerging trends in the global
 economy and capitalize on the same. I am, therefore, confident that
 having identified the right markets and the right offerings, and with a
 strong management team within the associates, your Company will
 endeavour to sustain the present growth in the future years.
 
 As we usher in a new year, I want to thank all our employees,
 consultants and their families, bankers for their unstinting support
 and dedication. They are truly the cornerstones of all our successes. I
 also take this opportunity to thank our customers who have entrusted us
 with their critical systems and all our share holders for your support
 and confidence in our company. My team and I assure you we are
 committed to do everything in our might to justify the faith reposed in
 us by all of you.
 
 While thanking you for all the support in the past, I look forward to
 your continued support to the Company in its endeavor to progress.
 
 Best Regards,
 
 V. I. Garg
 Non Executive Chairman
 Place: Mumbai
 Date : 24th December, 2008