It gives me great pleasure to welcome you to the 24th Annual General
 Meeting of your Company and share with you the progress your Company
 has made, despite the global economy has posed several challenges.
 
 While the economic climate throughout the industry has remained
 challenging during the year gone by, however, the Fiscal Year 2011 was
 a year of steady revival and consolidation for us. During the year we
 saw strong revival of business demand across the markets, however, in
 the backdrop of economic recovery, investments were closely evaluated
 and business models were realigned by most of our clients.
 
 While, some of the Verticals/Lines of Business and Subsidiary Companies
 have fared well and high achievers this fiscal, however, the major
 setback was on the e-Governance business segment front. As informed in
 our last Annual Report, due to the Mandi Board resorting to unilateral
 and un-lawful termination of the Service Contract and withholding dues
 to the Company from April'' 08 onwards aggregating to Rs. 28.77 Crores
 (out of which Rs. 20.22 Crores pertains to billing raised on behalf of
 outsourcing partner), the Company had suffered severely from
 financially and otherwise, the dispute was referred to Arbitration and
 pending for disposal. Further, the other e-governance project viz.,
 Sampark Project in the Union Territory of Chandigarh has come to a
 logical conclusion as of Dec 31, 2010.
 
 The Company''s Singapore subsidiary is growing steadily, where revenues
 grew annually at 39%. The Company had forayed into Training & Education
 Services in Singapore, by launching Android Training in partnership
 with Singapore IT Federation (SiTF). The Training Program is being
 endorsed and funded from Infocomm Development Authority (IDA),
 Singapore as enhanced Critical Infocomm Technology Resource Program
 (e-Citrep). So far, the Company had billed training revenues in excess
 of SGD $ 450000. Now, the Company is poised to launch Trainings on
 other Technologies/ Platforms. Using the Android training experience
 and leveraging the past credentials in Embedded Wireless and Software,
 the Company has also bagged few prestigious projects on the Embedded &
 Android platform.
 
 Looking Ahead
 
 As we step into new fiscal, the crisis of confidence, which we thought
 was over, has been rekindled with the economic crisis that the USA and
 Europe are now facing, which will cast shadow on the strong business
 demand. While caution is on everyone''s mind, with Companies carrying
 over the lessons of the past years into the fiscal 2011-12, the
 expectation is that it will be more mature Indian IT Industry that will
 emerge from the existing scenario. Therefore, we see that IT spending
 on a rebound and the outlook for the future is robust. We believe that
 with our diverse portfolio of services, domain expertise and the
 increasing value-add to customers, we are best suited to be a strategic
 partner to our customers. Our offerings are highly differentiated and
 leverage deeply, as these capabilities are built over decades.
 
 With the powerful differentiation indicated above and a diverse
 customer base across geographies, coupled with the learning''s during
 the last couple of years, I am sure that your Company will continue to
 consolidate and grow in the years to come. This is very evident from
 orders bagged from various high value customers and new accounts being
 opened with various Industry majors during the current fiscal 2011-12.
 The Company is re-starting several initiatives to embrace growth by
 aggressive business strategies and new business models.
 
 Growth Strategy and Way Forward
 
 1.  To leverage on the Company''s over 23 years of enviable reputation
 as a high-end quality IT Educator
 
 2.  To increase product offerings across all business segments
 
 3.  To pursue various e-Govemment opportunities, as Central and State
 Governments putting more emphasis on e- Govemance initiatives.
 
 4.  To effectively integrate on-site and off-shore capabilities to
 deliver seamless, scalable, and cost-effective solutions to our
 Customers
 
 5.  Pursue alliances with various Companies and Technology Providers,
 that complement our core competencies
 
 Concluding Note
 
 I am confident that SQL Star, with its excellent customers, committed
 associates and strong and stable management team will continue to
 deliver significant value to all its stakeholders in the years to come
 and will achieve every milestone in the journey to success.
 
 I would like to thank ail our shareholders, investors, employees,
 customers, principals and all other stakeholders, who have always stood
 by us. With our focussed business strategy, dynamic management team and
 a pool of professional talent, we are poised for growth.
 
 I look forward to your continued support in the coming years to take
 this Company to the next level of growth.  Yours Sincerely,
 
 Sunil Gupta
 
 Co-Chairman & Managing Director