1.  Companys Performance
 
 The Directors hereby report that the Company has achieved a turnover
 of Rs. 174912.69 Lakhs up to 31.03.2011.
 
 The highlights of the financial results are as follows:
 
                                                     (Rupees in lakhs)
 
 Particulars                           Financial        Financial Year
                                    Period ended            ended 30th
                                31st March, 2011       September, 2009
                                consisting of 18      consisting of 12
                                    months (From          months (From
                                   01-10-2009 to         01.10.2008 to
                                     31-03-2011)           30.09.2009)
 
 Profit before                          24025.51               9341.31
 Depreciation and
 Interest
 
 Interest                                9953.81               3066.41
 
 Depreciation                            2679.11               1343.89
 
 Profit before tax                      11392.59               4931.01
 
 Provision for
 
 - Current tax                           3244.83               1437.11
 
 - Deferred tax                           287.51                295.65
 
 - Fringe Benefit tax                          -                  2.56
 
 Profit after tax                        7860.61               3195.69
 
 Dividend on CRPS                           5.21                  3.47
 
 Profit carried to                       7855.40               3192.22 
 Balance Sheet
 
 2.  Operations
 
 The Company achieved a turnover of Rs.174912.69 lakhs and earned profit
 after tax of Rs.7860.61 lakhs. The Gross Block as on 31.03.2011 stood
 at Rs. 40460.49 lakhs and the Net Block as on 31.03.2011 stood at
 Rs.32167.03 Lakhs.
 
 3.  Subsidiaries Digitech Business systems
 
 The operations of M/s. Digitech Business Systems Ltd. have commenced in
 a small way. It clocked a revenue of Rs.13672.92 lakhs.
 
 Telesuprecon limited
 
 M/s Telesuprecon Limited has branches in three countries, providing
 telecom infrastructure services to Telecom operators.  The Telecom
 Business in Africa was slowdown and many contracts were kept pending
 due to Global recession. The business is on positive growth and the
 contracts are being revived.  But the recession effect on the Company
 would continue in the first half year. Presently Telesuprecon is
 executing telecom works in three countries; Malawi, Zambia and Kenya
 and plans to expand its operations into other neighboring African
 countries. As per the law prevailing in Mauritius, financial statements
 of M/s Telesuprecon Limited are not required to be audited.
 
 STL Africa Limited
 
 STL Africa Limited has started its operations during the year and made
 significant progress in a very short span of six months and astonishing
 contribution to the Group with a top line of Rs.11557.18 Lakhs and a
 bottom line of Rs.4773.18 Lakhs. As of date the concentration is more
 on CAD/CAM contracts and company Is planning to enter into EPC
 Contracts across Eastern Africa.
 
 Sujana Transmissions Limited
 
 Your Company has incorporated Sujana Transmissions Limited at
 Hyderabad. The operations of the subsidiary company are yet to
 commence. Therefore, audited accounts, Directors Report, Auditors
 Report and other related information of M/s. Sujana Transmissions
 Limited are not annexed.
 
 4.  Consolidated Financial Statements
 
 The Consolidated Financial Statements of the Company and its
 subsidiaries, prepared and presented in accordance with Accounting
 Standard (AS) 21 and as per the clause 32 of the Listing Agreement, are
 attached to and form part of the Annual Report.
 
 Your Company has availed the general exemption from attaching a copy of
 the Balance Sheet, Profit and Loss Account, Directors Report and
 Auditors Report of the
 
 subsidiary Companies and other documents required to be attached under
 Section 212(1) of the Companies Act, 1956, to the Balance Sheet of your
 Company. The said exemption is granted vide circular issued by Ministry
 of Corporate Affairs dated 08.02.2011.
 
 Accordingly, the said documents of subsidiary companies are not being
 attached with the Balance Sheet of the Company. A gist of the financial
 performance of the subsidiary companies is contained in the report. The
 Annual Accounts of the subsidiary companies are open for inspection by
 any member/ investor at the Companys Registered office and the Company
 will make available these documents and the related detailed
 information upon request by any investor of the Company or any investor
 of its subsidiary companies who may be interested in obtaining the
 same.
 
 5.  Industrial Relations
 
 Your Directors are happy to report that the Industrial Relations have
 been extremely cordial at all levels throughout the year.
 
 6 Future Plans
 
 The Company is striving hard to capture the major share in the market
 of both telecom and Transmissions sector on its own as well as through
 its subsidiary companies viz., M/s. Digitech Business Systems Limited,
 Hong Kong, M/s. Telesuprecon Limited, Mauritius, M/s STL Africa
 Limited, Mauritius and M/s. Sujana Transmissions Limited, Hyderabad.
 The present trend in the market and the opportunities available in
 market are analytically narrated elsewhere in this report.
 
 7.  Directors
 
 Shri Y.S. Chowdary, Shri M.V. Bhaskara Rao and Shri S. Venkatachalam,
 Directors of the Company, are liable to retire by rotation in the
 ensuing Annual General Meeting of the Members of the Company and being
 eligible offers themselves for re-appointment.
 
 During the year under review Shri A. Ratanpal, General Manager, CSPD,
 IDBI Bank Ltd., Mumbai has been appointed as Nominee
 
 Director on the Board of Directors of the Company at their meeting held
 on 10.02.2011 with effect from 21st December, 2010.
 
 8.  Directors Responsibility Statement
 
 Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors,
 based on the representations received from the operating Management,
 confirm that –
 
 a.  in the preparation of the annual accounts, the applicable
 accounting standards have been followed and that no material departures
 have been made from the same;
 
 b.  that they have selected such accounting policies and applied them
 consistently and made judgments and estimates that are reasonable and
 prudent so as to give a true and fair view of the state of affairs of
 the Company at the end of the financial year and of the profit or loss
 of the Company for that period;
 
 c.  that they have taken proper and sufficient care for the maintenance
 of adequate accounting records in accordance with the provisions of the
 Companies Act, 1956 for safeguarding the assets of the company and for
 preventing and detecting fraud and other irregularities;
 
 d.  that they have prepared the annual accounts on a going concern
 basis.
 
 9.  Promoter Group Companies
 
 Pursuant to intimation from promoters, names of Promoters and companies
 comprising the Group as defined in the Monopolies and Restrictive
 Trade Practices (MRTP) Act, 1969, have been disclosed in Annual
 Report as an annexure.
 
 10.  Code of Conduct
 
 The Board has laid down a Code of Conduct for all Board Members and
 Senior Management of the Company. The Code of Conduct has been posted
 on the Companys website.  Board Members and Senior Management
 personnel have affirmed compliance with the Code for the financial year
 2009-11. A separate declaration to this effect is made out in the
 Corporate Governance Report.
 
 11.  Auditors
 
 It is proposed to re-appoint the existing Statutory Auditors of the
 Company M/s R. Subramanian & Company, Chartered Accountants, Chennai
 for the financial year 2011-2012 also at a remuneration as fixed by the
 Board of Directors.
 
 The Company has received letter from M/s.  R. Subramanian & Company,
 Chartered Accountants, Chennai to the effect that their appointment as
 Statutory Auditors, if made, would be within the prescribed limits
 under Section 224(1B) of the Companies Act, 1956 and they are not
 disqualified for such appointment.
 
 12.  Personnel
 
 There are no such employees in the Company, who are drawing
 remuneration more than Rs.  5 lakhs per month during the financial
 period under review in accordance with Section 217(2A) of the Companies
 Act, 1956.
 
 13.  Human Resource Management
 
 one of the key resources of Company is its employees. Your Company has
 been able to create a favorable work environment that encourages
 innovation and meritocracy.  Your Company has put in place a scalable
 recruitment and human resource management systems.
 
 The efforts of your Company in the area of employee management and HR
 practices have been proved effective in Human Resource Management.
 
 The number of employees as on 31.03.2011 is 258.
 
 14.  Further issue of securities of the Company
 
 a.  Issue of equity shares on preferential Basis
 
 Pursuant to the special resolution passed by the members of the Company
 at the Extraordinary
 
 General Meeting held on 24th October, 2009, your Company had
 successfully completed the issue and allotment of 11,11,111 equity
 shares of Rs.5/- each at a premium of Rs. 31.00 per share to Non-
 Promoters.
 
 b.  Issue of Equity Shares Through Global
 
 Depository Receipts (GDRS)
 
 Pursuant to the special resolution passed by the members of the Company
 at the Extraordinary General Meeting held on 24th October, 2009, your
 Company had successfully completed the issue and allotment of
 2,67,85,700 equity shares of Rs. 5/- each at a premium of Rs.  47.416
 per share underlying 53,75,140 Global Depository Receipts (GDRs)
 representing 5 equity shares per GDR, aggregating US$ 30.00 Millions.
 Your Company invested the funds raised through GDRs, in its Wholly
 owned Subsidary.
 
 The Global Depository Receipts have been listed on the Luxembourg Stock
 Exchange.
 
 c.  Issue of Equity Shares and Convertible Warrants by way of
 Preferential Allotment
 
 Pursuant to the special resolution passed by the members of the Company
 through Postal Ballot on 19.11.2009, your Company had successfully
 completed the issue and allotment of 32,00,000 equity shares of Rs.5/-
 each at a premium of Rs.50/- per share and 3,13,00,000 convertible
 warrants of Rs.  5/- each at a premium of Rs. 50/- per warrant to the
 Promoter Group. out of the above 3,13,00,000 convertible warrants,
 2,58,00,000 convertible warrants were converted into equity shares
 during the period under review and the balance 55,00,000 (before split)
 warrants also converted on 31.05.2011 and listing process at BSE and
 NSE is under progress.
 
 15.  Movement in Authorised Capital
 
 As on 30.09.2009, the authorized share capital of the Company is
 Rs.55,00,00,000
 
 (Rupees Fifty Five Crores only) divided into 9,80,00,000 (Nine Crores
 Eighty Lakhs only) equity shares of Rs.5/- each and 6,00,000 (Six Lakhs
 only) Cumulative Redeemable Preference Shares of Rs.100/- each.
 
 Pursuant to the special resolution passed by the members of the Company
 at the Extraordinary General Meeting held on 24th October, 2009, the
 authorized share capital of the Company has been increased from
 Rs.55,00,00,000 (Rupees Fifty Five Crores only) to Rs.100,00,00,000
 (Rupees one Hundred Crores only) divided into 18,80,00,000 (Eighteen
 Crores and Eighty Lakhs only) equity shares of Rs.5/- each and 6,00,000
 (Six Lakhs only) Cumulative Redeemable Preference Shares of Rs.100/-
 each, by further creation of 9,00,00,000 (Nine Crores only) equity
 shares of Rs.5/- each.
 
 Pursuant to the special resolution passed by the members of the Company
 through Postal Ballot on 24.12.2010, your Company had successfully
 completed the sub-division of the equity shares of Rs. 5/- each of the
 Company into 5 (Five) shares of Re.1/-each commonly known as Stock
 Split on the record date 11th January, 2011 and as on date, the
 authorized share capital of the Company is Rs.100,00,00,000 (Rupees one
 Hundred Crores only) divided into 94,00,00,000 (Ninety Four Crores
 only) equity shares of Re.1/- each and 6,00,000 (Six Lakhs only)
 Cumulative Redeemable Preference Shares of Rs.100/- each.
 
 Movement in Paid-up Capital
 
 Particulars          Equity Shares    Cumulative       Capital in Rs.
                      (in Nos.)        Redeemable
                                       Preference 
                                       Shares (in Nos.)
 
 Paid-up capital as 
 on                   4,14,33,035     2,96,795           23,68,44,675
 01.10.2009
 
 Add : Equity 
 shares of              11,11,111            -              55,55,555
 Rs.5/- each 
 allotted to 
 Non-Promoter 
 Group
 
 Add : Equity 
 shares of              32,00,000            -            1,60,00,000
 Rs.5/- each 
 allotted to 
 Promoter Group
 
 Add : Underlying 
 equity               2,67,85,700            -           13,39,28,500
 shares of Rs.5/- 
 each allotted
 through GDRs
 
 Add : Equity shares  2,58,00,000            -           12,90,00,000
 of Rs.5/- each 
 allotted to 
 Promoter Group by 
 conversion of 
 warrants,
 already allotted
 
 Paid-up capital on   9,83,29,846     2,96,795           52,13,28,730
 31.03.2011
 
 Sub-division of 
 equity              49,16,49,230            -           52,13,28,730
 shres of Rs.5/- 
 each into Re.1/-
 each w.e.f. the 
 record dt. 11.01.2011
 
 16.  Listing of Companys Securities
 
 Your Companys shares are currently listed on Bombay Stock Exchange
 Limited (BSE) and National Stock Exchange of India Limited (NSE),
 Mumbai and the Global Depository Receipts are currently listed at the
 Luxembourg Stock Exchange.
 
 17.  Dematerialization of Shares
 
 Your Companys shares have been made available for dematerialization
 through the National Securities Depository Limited (NSDL) and Central
 Depository Services (India) Limited (CDSL).
 
 18.  Fixed Deposits
 
 The Company has not accepted any fixed deposits and the provisions of
 Section 58A of the Companies Act, 1956 are not applicable.
 
 19.  Conservation of Energy, Research and Development, Technology
 Absorption and Foreign Exchange Earnings and outgo
 
 The details regarding Energy Conservation, Technology Absorption and
 Foreign Exchange Earnings and outgo as required by section 217(1)(e) of
 the Companies Act, 1956 read with the Companies (Disclosure of the
 particulars in the report of the Board of Directors) Rules, 1988 are
 given in the Annexure 1 and forms part of this report.
 
 20.  Corporate Governance
 
 A detailed report on Corporate Governance has been included separately
 in the Annual Report. A report on Management Discussion and Analysis
 prepared and attached to the Directors Report also forms part of this
 Annual Report.
 
 21.  Management Discussion and Analysis Report is also attached and
 forms part of this Report.
 
 22.  Acknowledgements
 
 The Board of Directors of the Company extends their sincere
 appreciation to the Government, Bankers, Financial Institutions and
 others for their kind support. on behalf of the Company the Board of
 Directors thank the employees for their valuable efforts and the
 shareholders for their undaunted faith in the Company.
 
                                               By ORDER OF THE BOARD
 
                                                           Y. KAMESH 
                                                   MANAGING DIRECTOR
 
 Place : Hyderabad 
 Date  : 25.05.2011