We need to view business as a continum. So, it is appropriate to
 continue from where we left off last year. Last year i.e. in FY10 ended
 on 31st March, 2010, we had once again become profitable at the
 Operational Profit After Tax level. We had then said that our objective
 in FY11 will be to improve our profitability at every level. I am both
 proud and glad to inform you that we did exactly what we set out to do
 in FY11. As is our practice, let us take a look at those figures before
 we delve deeper into the qualitative aspects.
 
 The core of our business i.e. Product business grew 15% in US Dollar
 terms and about 8% in Indian Rupee terms. More significantly, EBITDA
 grew from 23.8% in FY10 to 33% in FY11. This resulted in EBITDA for the
 whole company moving up from 20% to 29%. Above all, Operational Profit
 After Tax (PAT) which is arrived at by excluding Exceptional Items
 increased from Rs. 208 Mln to Rs. 838 Mln.
 
 Progression Over the Years
 
 While the business has taken several twists and turns, we have stayed
 focused on modifying a variety of facets of the business resulting in
 considerable improvement on many fronts. One critical element has been
 the contribution from Annuity business.  Annuity business, by nature
 lends stability and predictability to the revenue stream thereby
 creating an excellent base to build on. This foundation enables the
 company to explore other opportunities while charting a steady course.
 In the just concluded financial year, Annuity constituted 42% of the
 total revenue. This figure was 36% two years ago, in FY09 and is slated
 to grow to more than 50% in the next 2 to 3 years. Support and Managed
 Services are the two components of this revenue stream. A natural
 consequence of this increase in Annuity, which is a highly profitable
 operation, has been the increase in EBITDA. This is quite clear from
 the graph given below.
 
 While revenue remained constant from FY09 to FY11, EBITDA increased
 from 11.5% to 33%.  Apart from Annuity, reduction in cost also has had
 a salutary impact on EBITDA. Cost of operation has been coming down
 consistently over the past four years. This has been achieved through a
 systematic program of replacing high cost resources in overseas
 locations with lower cost resources in India while ensuring that
 knowledge is transferred efficiently and quality of service to
 customers is maintained. Further, the company has been engaged in
 identifying and culling all unwanted costs through extensive
 rationalization.
 
 The reduction in revenue from FY09 to FY10 was followed by a smart
 growth of 15% in US Dollar terms from FY10 to FY11. This also
 contributed to the increase in EBITDA. Given the growth in order intake
 that we witnessed in the just concluded financial year, revenue is set
 to grow faster in the years to come. That should enable us to maintain
 or slightly improve the EBITDA margin in the products business.
 Buttressing all these figures is the metamorphosis that the business
 has undergone in the past couple of years with respect to technology
 and offering. Let us take a closer look at that.
 
 Technology and Offering - The Evolution
 
 Change is the only constant phenomenon. Your company has stayed true to
 that adage. Ever since our entry into the world of telecom software a
 decade ago, we have evolved at a constant pace with regard to
 technology and revenue model.  The result has been an ever expanding
 set of products and continuing innovation on every front of the
 business including technology, products and delivery model. What
 started off as a single product – fraud management – has now morphed
 into a holistic platform called Revenue Operation Centre, ROC™. ROC
 covers every part of the revenue chain and presents an end-to-end
 picture to the users thereby empowering them to improve the efficiency
 of their operations, resulting in improved revenue and profit. ROC,
 today, encompasses fraud management, revenue assurance, cost
 management, credit management, interconnect management, inter- party
 settlement, route optimization and data integrity management.
 
 This over arching nature of the offering has made it very valuable for
 telcos who are being buffeted by commoditization of their products and
 business models. ROC enables them to collect and analyze a vast
 quantity of data to arrive at conclusions on the health of different
 parts of their business and network and then to take appropriate
 actions with the help of an extensive work flow. ROC has thus evolved
 as a reliable and complete solution without being plagued by the ill
 effects of poor inter-operability and lack of data integrity. Several
 telcos across the world – in both developed and developing countries –
 have opted for ROC resulting in a high level of traction. The fact that
 ROC is a pioneering offering has improved both the stature of your
 company and its prospects.
 
 While selling and implementing ROC, it became obvious that the telecom
 carriers, despite their deep expertise and wide experience, still
 lacked the knowledge required to take advantage of a broad platform
 such as ROC. This was aggravated by the non-availability of skilled
 personnel within their organizations. That presented a new opportunity
 for your company and we have been exploiting the same over the past few
 years. What started off as mere bureau operation has now matured into
 managed services and full fledged outsourcing.  This delivery model is
 fast emerging as a key differentiator and has also led to a
 considerable increase in contract size while maintaining a healthy
 profit margin.
 
 The Future
 
 Aristotle once said, The future is not something true men enter. The
 future is something they shape with their own hands. As can be seen
 from the manner in which your company has evolved over the past ten
 years, we have been shaping our future meticulously and carefully.
 While we have indeed faltered on certain occasions, we have
 demonstrated resilience and have fought our way back. That is the
 genetic code of this organization which you chose to be investors of.
 Abraham Lincoln once remarked, I will prepare and some day my chance
 will come. Your company too has been preparing – be it with respect to
 products or delivery model or people or markets that we operate in. And
 we strongly believe that our chance has come.
 
 We have now been presented with an opportunity to change the fortunes
 of our customers, telecom carriers all over the globe, and thereby add
 tremendous value to their businesses. We have now been presented with
 an opportunity to increase our relevance to our customers and craft
 deep and engaging partnerships with them. And finally, we have once
 again been presented with an opportunity to add ever lasting value to
 those who have supported us through thick and thin – our shareholders.
 While thanking each and every one of you for your unstinting support, I
 reiterate the commitment of each and every Subexian to make the most of
 this opportunity, in the interest of every stakeholder of the company.