Dear Shareholder,
 
 Your Company has performed well in its chosen business areas in FY
 11-12, reporting a 30% growth in total income and 73% growth in PBT as
 compared to FY 10-11.
 
 This was supported by the performance of all units across geographies
 and business segments, in an uncertain business environment that was
 affected by the unfortunate natural disasters in Japan and Thailand and
 economic uncertainties in Europe.
 
 The Embedded Product Design Division delivered a complete Smart-phone
 design and prototype based on the latest Android platform for a leading
 OEM. This project encompassed the integrated design capabilities of
 Tata Elxsi, covering hardware, system software and innovative
 applications based on advanced sensors.  The Industrial Design division
 worked jointly to support industrial design of the phone.
 
 Among other projects, the Industrial Design Division also supported the
 design of a low-cost diagnostic device for affordable healthcare in
 emerging countries, and packaging design for the Danone range of dairy
 products in India.
 
 While Visual Computing Labs (VCL) delivered major projects for
 animation and visual effects for Hollywood and Bollywood feature films
 this year, it made exciting forays into high-end photorealistic content
 development and visualization of campuses for corporate and virtual
 cars for advertising. It also worked with some leading international
 game developers for game art development.
 
 The Systems Integration Division successfully completed a landmark
 project for Mazagon Dock Limited, with the turnkey implementation of a
 state-of-the-art virtual reality facility for ship design.
 
 The Professional Services group inked a strategic deal with Lenovo as
 their Authorised Service Partner for India for their entire range of
 products.
 
 The external environment continues to be volatile even as we move into
 FY 12-13.  However, your company looks forward to continuing on its
 path of growth, building on the experience of dealing with difficult
 market conditions from the last year and earlier.
 
 As a technology-led design company, we continue to leverage our mature
 design processes, technology, creative skills, and the talent base
 developed over the years to deliver value to our customers.
 
 We will also continue to invest in skill development and take
 appropriate measures in retaining, developing, and attracting the best
 talent required to deliver higher value to our customers. We also
 believe that our ongoing investments in R&D and technology development,
 as well as exploration of new and adjacent markets will help de-risk
 any downturns in specific industries and markets, and lay the
 foundation for future business.
 
 Your Company''s Board of Directors has recommended a final dividend of
 Rs. 7 per share, maintaining consistent dividends and returns to our
 Shareholders.
 
 
 S Ramadorai