I am happy to present to you the performance of the company for FY
 2011.
 
 While the economic climate throughout the industry has remained
 challenging during the year gone by, we have had some successes coupled
 in the midst of tectonic shifts. This combination of wins and
 challenges created by the changing landscape in the industry has
 strengthened our resolve as an organization to tide through this phase.
 We clearly see a need to return to basics and get back to ABCDE or
 Adaptability, Buoyancy, Capability, Differentiate while continuing to
 maintain our unquestionable Ethical standards. It is our conviction
 that when these values are applied in our day to day functioning, our
 foundation will be strengthened, as we will emerge stronger to secure
 growth in the future.
 
 Although we were anticipating a 10% growth over the first half of the
 year in the second half, we have not been able to meet this entirely.
 This is primarily because of the continued uncertainty in the business
 outlook, particularly in the Europe geography.  One of our key tier-1
 customers announced a significant shift in their platform strategy
 which impacted our business. In addition, some part of our business
 addresses rapidly evolving technologies; and business engagements in
 these areas tend to be short sprints coupled with some uncertainty. Due
 to increased competitive pressures our customers have scaled down
 outsourcing in high cost locations more aggressively than what we had
 anticipated. We are taking active steps to mitigate some of these risks
 and there are early signs of our business volume increasing in low cost
 locations.
 
 It gives me immense pleasure however, to inform you that Sasken has
 started its first engagement in China with a key tier-1 handset vendor;
 building on this start we will be expanding our geographical reach with
 customers in this region. The Inmarsat GSPS program commercial service
 introduction was executed as per plan with the launch being announced
 in Communiq Asia conference in Singapore.
 
 Smt. Pratibha Devisingh Patil, Honble President of India, on 7th March
 2011 launched Saskens VyapaarSEWA™ pilot under the Sanchar Shakti
 project scheme of the Department of Telecommunications – Universal
 Service Obligation Fund (DoT- USOF). VyapaarSEWA™ Saskens multi modal
 platform is one of the four categories of projects aimed at supporting
 commerce for rural women SHGs under the Sanchar Shakti scheme. The
 objective of VyapaarSEWA™ is to create strong market linkages for rural
 women SHGs through Value Added Service applications and contribute to
 their socio-economic development. The VyapaarSEWA™ platform helps in
 the reduction of intermediaries by a direct-to-consumer approach and is
 expected to benefit the producers by directly connecting them to
 consumers thereby enhancing sustainability of their business.
 
 We have seen some positive upsides in the increased offtake of TDSCDMA
 in the Chinese market, leading to a significant increase in our product
 business. It is likely that this market may display some positive
 momentum in the quarters to come.  However, we continue to be cautious
 about making inferences about this being a long term trend that will
 continue.
 
 We continue to consolidate and build on our strengths in our key
 offerings. Some key project wins in the last financial year were
 integration services for a tier-1 handset vendor, product design and
 testing services for the TDSCDMA standard, Android MMI integration and
 stability project for a tier-1 chipset vendor. In addition, we have a
 significant win to provide integration services in the smart phone
 space that is based on a platform using the latest symmetric multi
 processing dual core technology. Our total active customer base is now
 127.
 
 While the iPhone helped create a tipping point for mainstream smart
 phone adoption, Android activations are up significantly as per market
 research reports. We are well placed to exploit this trend of continued
 Android adoption which now seems to be targeting all price points,
 devices and attracting new entrants.
 
 Some other key trends that we see in the marketplace that have an
 impact on our business are the following:
 
 Mobile devices will interwork with servers to create a rich user
 experience bringing contextual awareness. However these devices will
 continue to act independently when needed, as mobile devices will not
 always be connected. In the future, memory and computational power of
 devices will be leveraged alongside server side capabilities, enabling
 services to use the most efficient and responsive resource at any given
 time.
 
 The limited bandwidth of wireless networks is being heavily taxed by
 the rapid increase of data use. With the increase in uptake of smart
 phones and wireless 3G modems that are used in conjuction with
 netbooks, data has far surpassed voice as the leading bandwidth user.
 We are investing in building capabilities in technologies for
 effectively delivering and distributing video over wireless channels,
 and innovative applications involving streaming and sharing of media
 for both retail and enterprise customers.
 
 Deployment of 4G networks in mature economies seems to be gathering
 momentum with multiple operators announcing network rollout plans and
 launch of new devices in several markets. The speed of 4G will make
 watching live streaming video on mobile a common activity. 4G will
 provide the ideal foil for rich media applications to take off,
 presenting us with an opportunity to exploit our rich media
 capabilities. 4G is also likely to see the introduction of graphics
 intensive applications which will leverage the compute power of dual
 core processors that are becoming standard in high end smart phones.
 Again, we are making investments in 4G technologies like LTE (Long Term
 Evolution) that would place us in a favourable position here.
 
 Semiconductor vendors are hastening the introduction of multi
 technology, multi core platforms and struggling to keep pace with the
 rapid evolution in operating systems and applications that they are
 expected to support. The proliferation of open source software
 platforms means that semiconductor vendors and OEMs (Original Equipment
 Manufacturers) must collaborate stronger than ever before to
 differentiate themselves in the market place. These provide white
 spaces for Sasken to step in and fill.
 
 We see our customers are engaged in a process of moving work from high
 cost locations to low cost locations. What it means for us is that in
 the short term, we have to deal with a decline in the quantum of work
 at high cost locations and continue to engage with them through their
 planning cycle to move business to low cost locations. We continue to
 see increase in the quantum of RFPs of these companies and this will
 offset some of the declines that we are currently seeing at high cost
 locations. In light of this trend, we examined the prospects for our
 Mexico center. As both the pipeline and future growth prospects were
 not healthy, we decided to close down operations at our centre in
 Mexico. This has resulted in a onetime adverse impact on our EBIDTA and
 PAT margins.
 
 The board had approved a buyback of shares to the extent of Rs34.5
 crores with a maximum price of Rs260 per share. This is reflective of
 managements view that our share is currently undervalued. Our strong
 cash position gives us the leeway to buyback our shares to the extent
 approved by the board. We are well on our way to completing the program
 promised in the buyback.
 
 While attrition was high through the last financial year, focussed
 efforts are on to retain key talent through innovative measures.
 Actions have also been intensified to help individuals manage their
 growth and career aspirations. Across the board we have heightened our
 employee engagement through increased leadership communication with
 employees, and a series of targeted initiatives such as employee
 recognition, performance linked reward systems, managerial training,
 etc. We expect these initiatives will stem attrition in the next few
 quarters.
 
 To conclude, we are optimistic of seeing return to growth towards the
 latter half of the financial year and we continue to make investments
 in the area of smart phones, LTE and data communications to enable us
 to benefit from the increased R&D spends which are now becoming
 visible. Our move to address market adjacencies including consumer
 electronics, defence, space and the automotive sectors will begin to
 pay dividends in the coming few quarters. Parallely, we are confident
 that our resolve to practise our ABCDE will pilot us towards a better
 future.
 
 Thanking you,
 
 Rajiv C Mody
 
 Chairman and Managing Director