This last year has, indeed, been a very significant one, as the Company
 successfully reinforced the Spanco name, making its presence felt as a
 credible, reliable brand in a market where only the very best could
 survive.
 
 The process of transformation that began two years ago is already
 showing marked results at all levels of the company.  Organisational
 restructuring, strong strategic thinking, clear and focused goals,
 greater fiscal discipline, vigorous implementation of new and existing
 businesses, and a sense of motivation that cuts across the
 organisation, down to the junior most employee... all this and more has
 not only energised the organisation but also paved the way for greater
 value to the shareholder. The goal is to Think Big, Execute Well, and
 Create Value. The message has percolated down to all Spanco employees
 across India and elsewhere.
 
 A formidable force in the creation of Technology Infrastructure,
 Spancos metamorphosis rests squarely on four key components cutting
 through all levels and all verticals of the organisation.
 
 - Differentiation
 
 - Innovation
 
 - A Strong Corporate Identity
 
 - A Unique Business Model
 
 Differentiation
 
 Spancos role in Technology Infrastructure creation ensures that the
 Company has a core function and a high-impact positioning in clients
 projects, which are invariably long-term ones. Large-scale government
 transformation programmes, for instance, have lengthy gestation and
 implementation periods for complete effectiveness and the fact that
 Spanco plays a major role in their success ensures value for the client
 as well as steady revenues for the Company year on year.  Spancos
 Systems Integration work is a critical part of the clients high-value
 infrastructure and Spancos involvement spans both its set-up and
 providing the maintenance and support required, making partnership with
 the Company a crucial factor in the clients own success. For Spanco, a
 company-client relationship is usually a lifelong one.
 
 Innovation
 
 In a global environment, where costs are constantly on the rise,
 organisations are on the lookout for services that offer quality at
 competitive rates. Among Spancos strengths is the fact that it has a
 strong focus on services innovation, which helps to increase efficiency
 and minimise costs.
 
 For over a decade, the Company has focused on using innovation at every
 level to work on projects that directly and strongly impact customers
 across the board. Through service innovation, long-term sustainability
 is made possible and Spanco has evolved into a Transformation Services
 Provider offering end-to-end solutions that impact the entire value
 chain. With its vast experience and growing client base, Spancos
 innovation also allows for economies of scale.
 
 For it to be truly effective, the innovation must be backed by true
 replicability in different locations. Spanco has proved its
 capabilities time and again in this sphere with an organisational
 strategy that revolves around creating a road map for future projects,
 the Restructured Accelerated Power Development Reforms Program
 (R-APDRP), State Data Centres (SDC), each of these are very large multi
 year contacts running into several hundred crores. Our strategy
 revolves around doing it in multiple states so that to gain maximum in
 terms of efficiency and effectiveness.
 
 A Strong Corporate Identity
 
 Spanco has been ranked in the ET500 amongst the outstanding companies
 of India Inc - and with very good reason. As a Technology
 Infrastructure creator, Spancos growth has been intrinsically linked
 to the modernisation of key sectors within India. This is a major
 thrust area in the Indian economy, both in the private sector and at
 the governmental level, presenting a slew of new opportunities for a
 company like Spanco.
 
 The Company, which has its global headquarters in Mumbai sees itself as
 a strong domestic player with a footprint that spans the globe; much
 before the global downturn, Spanco was among the first to recognise the
 value of the domestic opportunities within a rapidly transforming
 post-liberalisation India. Now it has made its presence felt not only
 within the country, but also in the United Kingdom, Middle East and
 United States, even as it explores new opportunities in upcoming
 markets such as Africa.
 
 Spancos wide geographical presence has built its corporate identity as
 a strong domestic and global player with multiple strengths,
 far-sighted vision, quick adaptability, an enthusiastic ability to zoom
 in on new opportunities and profit from them - even as it maintains its
 underlying values of honesty and integrity at all times.
 
 A Unique Business Model
 
 The Company recognises that in todays increasingly complex world,
 domain expertise is crucial and Spanco goes all out to ensure that such
 skills are continually honed at all levels within the organisation.
 
 Spancos unique business model encompasses:
 
 - Creating World Class Technology Infrastructure to drive governance
 efficiency
 
 - Full service partnering capabilities
 
 - A Rapidly Scalable Implementation Model
 
 - A Regional, National and International Presence
 
 - Process and Operational Excellence
 
 - Highly skilled infrastructure management
 
 - A reliable and secured information system and processes (ISO
 9001:2008 and ISO 27001 certified).
 
 Spancos Key Business Areas
 
 Spancos business essentially spans across - Government, Power, Telecom
 Service Provider and BPO services. In the year under review, all of
 these have seen significant growth despite all the challenges of the
 global downturn taking consolidated revenue from Rs. 80,990.63 Lacs (FY
 2008-09) to Rs. 137,083.02 Lacs (FY 2009-10).
 
 Government
 
 In the world of business, government is invariably the biggest spender
 and there is no doubt that especially during difficult economic times,
 this spending increases because it is even more important to ensure
 peoples welfare at such times.  Spanco has more than a decade long
 experience working * within this sector and we have partnered with
 Govt, in various implementations.
 
 Spancos Government business strategy revolves around Technology
 Infrastructure creation across various sector modernization
 initiatives. Spancos focused ICT services team delivers solutions for
 State and Central Govt., PSUs, Indian Railways, Indian Defence and
 Transport sector. Its dedicated Government Transformation Services unit
 utilises proprietary services to help various state and Central
 government arms become more efficient through IT. Spanco is also an
 active participant in the UID rollout program.
 
 Power
 
 The countrys rapid urbanization and industrialization has left India
 reeling under massive power shortages and a great deal of the
 inefficiency in the system is a result of distribution losses.  In
 addition, as the consumer base grows, it has become necessary to
 streamline and manage a host of functions from new connections to
 billing and energy audits.
 
 Restructured - Accelerated Power Development Reform Program (R-APDRP)
 is a pioneering reform aimed at reducing distribution losses. It is a
 50,000 crore outlay and Part A of this program focuses on usage of
 Information Technology to increase efficiency of Power distribution. We
 have secured a contract with Punjab State Electricity Board (PSEB) to
 help them modernize their distribution operations. There are other
 allied opportunities which will come up as part of Power Sector
 reforms.  Spanco is focussed on Opportunities in Transmission,
 Distribution Franchise, SCADA and similar areas where there is scope of
 using Technology as an enabler to drive effectiveness.
 
 Telecom Service Provider
 
 The Telecom sector in the last one year has been marred by several
 controversies viz. licenses, security issues, BSNL GSM tender etc.
 which has delayed implementation schedules of several TSPs especially
 the Govt, owned. These seem to be over now and with the 3G and BWA
 auctions complete, we see a huge window of new infrastructure
 deployments within this year. As India gets broadband ready, Spanco
 will play a role in the execution of several large projects. Apart from
 infrastructure deployments, Spanco will also have a renewed focus on
 offering Telecom Integration Services to Operators directly or through
 Network Equipment Providers (NEPs).
 
 BPO
 
 Spanco has been present in the BPO business since as far back as the
 year 2000. Spanco BPO Ventures Limited (SBVL), the BPO arm of Spanco
 Limited, caters to global clients across four continents with
 operations in India, Middle East, US and Europe. SBVL is now
 aggressively pursuing its growth strategy in Africa, with plans to
 target BFSI, Manufacturing and Telecom verticals.
 
 In 2009-10, BPO business consolidated revenue was Rs. 18,196.56 Lacs
 and it is expected to grow at a CAGR of 50% over the next three years.
 There has been strong growth across all BPO subsidiaries viz Spanco
 BPO, Spanco Respondez and Spanco GKS.
 
 Future Opportunity Areas
 
 We see Transport and Infrastructure sectors offering good growth
 potential. These sectors have undergone huge transition in the last few
 years and we believe that IT will play an important role in driving
 efficiency. We are looking at Ports, Airports, Road and Border Check
 post as Key opportunity areas and are currently working on forging
 strategic partnerships and devising innovative solutions to take them
 to our customers within this fiscal.
 
 Some Fundamentals
 
 Over this last year, several internal changes have taken place to make
 Spanco a stronger and more profitable company, capable of creating
 increased value for shareholders. We came across several challenges in
 the form of Dwindling customer confidence, finance, quality of output,
 training and skills upgrade etc. which were met with appropriate
 measures by creating a sense of ownership and positive attitude at all
 levels within the organisation.
 
 Spancos determination to establish itself as a leader in the industry
 was reflected right down the line, the management recognised that even
 as strong leadership began at the top, employees could only give their
 best if they felt truly empowered - a mindset that Spanco actively
 encouraged.  Spanco is aware that its biggest asset is its people.
 
 A Reliable, Credible Brand
 
 Spancos transformation into a tougher, sharper, larger and more
 well-defined organisation is an ongoing process. The year 2008-2009 had
 set the tone for 2009-2010, and this process has continued into
 2010-2011. Much has been achieved, more remains to be done. Some areas
 are now seeing consolidation and others are being fine-tuned. It is a
 step-by-step procedure that will have long-lasting results and
 
 Spanco recognises that in an increasingly competitive world, where only
 the strongest will survive. Spanco today is well positioned as a
 Technology Infrastructure creator to help drive governance efficiency
 across Key sectors.
 
 On behalf of the Board, I want to thank all our strategic partners,
 bankers, institutions, customers and employees for their continued
 commitment and all stakeholders for their faith and support. We have
 set our sights on becoming the best are determined to reach our goals.
 
 
 
 Thank you,
 
 
 
 Kapil Puri
 
 Chairman and Managing Director