The Directors have pleasure in presenting the Eighteenth Annual Report
 and the audited accounts of the company for the year ended 31st March
 2012 together with Auditors ''report thereon.
 
 a) Financial Results:
 
                                                          (Rs. In Lakh)
 
 PARTICULARS                         Year Ended             Year Ended 
                                     31.03.2012             31.03.2011
 
 Gross Income                            20,163.47              12,637.64
 
 Expenditure                             15,646.46              10,650.37
 
 Profit before interest, 
 depreciation & tax                       4,517.01               1,987.27
 
 Less: Interest 
 (Financial Cost)                           938.36                 241.93
 
 Profit before 
 depreciation & tax                       3,578.65               1,745.34
 
 Less: Depreciation                         834.36                 275.44
 
 Profit before tax                        2,744.29               1,469.90
 
 Less: Provision for 
 tax Current year                 435.97                529.58
 
 Current Tax Expense relating 
 to Earlier Years                  (6.91)                24.50
 
 Deferred tax                     458.78    887.84      (68.17)    485.91
 
 Profit after tax                         1,856.45                 983.99
 
 Add: Balance brought 
 forward from
 Previous Year                            1,573.54               1,380.38
 
 Profit available for 
 distribution                             3,429.99               2,364.37
 
 Less: Transferred to
 General Reserve                 1000.00                500.00
 
 Proposed Dividend @ 20%          250.24                250.24
 (Previous Year 20%)
 
 Tax on distributable 
 profits                           40.59  1,290.83       40.59     790.83
 
 Balance Carried to 
 Balance Sheet                            2,139.16               1,573.54
 
 b) Dividend:
 
 Your Directors are pleased to recommend a dividend of 20% absorbing a
 sum of Rs. 290.83 Lakhs including the tax o distributable profits.
 
 c) Performance of the Company:
 
 The Company achieved a turnover of Rs. 20,163.47 lakhs during the year
 and earned a net profit after tax of Rs. 1 856 47 Lakhs.
 
 During the current year your company has added following three new
 business segments AADHAAR, NPR (National Population Register) and SWAN
 (State Wide Area Network). Collectively they account for a healthy
 order book on hand to be executed over next three years. During the
 year your company as an T3 F4 empanelled vendor for Unique
 Identification Authority of India, have enrolled 13.5 Million citizens
 with Bio-metric and Demographic information. Your company stood in top
 3 companies with AADHAAR market share of 6.71 %. Your company had
 established the required infrastructure and skillset to enroll 0.12
 million citizens per day with which can enroll to a capacity of 36
 million per year in coming years. Your Company is entitled to enroll
 about 5 crore citizens per year. Central government has planned to
 cover the entire Indian population of 120 Crores in about 4 years with
 coverage of 10 lakhs population per day
 
 Your company under National Population Register project under the
 Registrar General of India has completed the (phasel) digitization of
 citizen database and is geared up to take up the phase two i.e
 biometric enrollment in the year FY 2012-13.  Your Company is entitled
 to enroll about 5 crore citizens per year. Central government has
 planned to cover the entire Indian population of 120 crores in about 4
 years with coverage of 10 lakhs population per day.
 
 Your company firmly believes that bringing in of new customers and
 adding value to the existing relationships with our current customers
 will only help in getting additional business opportunities for your
 company. During the year client base of your company increased from 21
 to 30.
 
 Your company has acquired the following certifications which bring in
 the required pre qualifications and delivery of quality services in
 managing and implementing UIDAI (AADHAAR), NPR and other e-governance
 projects.
 
 - Information Security Management System - ISO 27001:2005 for Software
 development, IT Enabled Services and IT Infrastructure Management.
 
 - Information Technology Service Management System: ISO 20000:2005 for
 Software development, IT enabled Services and IT Infrastructure
 Management.
 
 - Enhanced the ISO 9001:2008 quality management system with enrollment,
 data capturing, De-Duplication and supply & maintenance of Biometric
 devices.
 
 - Provisional STQC certificate for the supply and delivery of L1
 Identity Solutions Inc, USA Biometric devices for UIDAI projects.
 
 Future Opportunities:
 
 E-governance in India is steadily evolving from basic digitization of
 government data and processes to actually facilitating delivery of
 various citizen services on-line. A common vision and strategy is being
 deliberated and firmed up across all levels of government central,
 state and local bodies. This approach has huge potential in garnering
 cost savings, increasing transparency, and presenting a seamless view
 of government to citizens.
 
 A well connected citizen to government eco system has huge potential
 for both the partners. Citizens will continue to enjoy speedy,
 transparent and convenient services, whilst the government gets
 increasingly integrated into the community welfare and more importantly
 is in a position to focus real time on reallocation of resources where
 they are needed the most. A social transformation happens when citizens
 are empowered to help themselves in dealing with various government
 segments, saving time and money for all concerned and elevating overall
 levels of satisfaction for common man.
 
 Your company has pioneered many a prestigious projects in this domain
 of e-govemance for various government agencies at the state and central
 level. The company today is standing on the threshold of contributing
 meaningfully to the National e-Governance mission. It has ambitions and
 plans in further designing creative solutions across a wide spectrum of
 industries for the dual benefit of citizens and the government, once
 the basic citizen identification biometric infrastructure is in place.
 The national e-Governance plan has a five year outlay of Rs. 80,000
 crore. Your company is focusing to have a market share of 6%. This
 turns out to be a potential business of approximately Rs. 5000 Crore in
 the coming years.  Your company continues to invest in the core
 e-governance solution capabilities to address this potential market in
 the next 5 years.
 
 Your company is also planning to diversify into B2C services in the
 segments of Toll collection, Utility bill collection, Financial
 Inclusion by adopting mobile technologies to integrate into the current
 Citizen Services bandwidth.
 
 As your Company enters a key strategic period in its evolution, the
 year ahead will be marked by growth in revenue and profits, whilst
 further strengthening our focus on customers and delivery.
 
 d) Management Discussion and Analysis Report:
 
 As per the requirements of Clause 49 of the Listing Agreement with the
 Stock Exchanges, a separate Management''s discussion and Analysis Report
 is enclosed as Annexure -1 to the Directors'' Report.
 
 e) Corporate Governance:
 
 As per the requirements of Clause 49 of the Listing Agreement with the
 Stock Exchanges, a separate report on Corporate Governance along with
 the certificate issued by the Company''s Statutory Auditors M/s. Narven
 Associates, Chartered Accountants thereupon is given as Annexure - II
 to the Directors Report.
 
 f) Listing of Shares on Stock Exchanges:
 
 At present the Equity Shares of your Company are listed on the Bombay
 Stock Exchange Limited and Bangalore Stock Exchange Limited. The
 listing fee was paid up to date.
 
 g) Fixed Deposits:
 
 The Company has accepted Rs. 36.00 Lakhs as fixed deposits during the
 year to which the provisions of Section 58A of the Companies Act, 1956
 apply. There are no deposits outstanding as at the end of the financial
 year 2011-2012.
 
 h) Directors:
 
 In accordance with the provisions of the Companies Act, 1956, and the
 Articles of Association of the Company, Dr.T.Hanuman Chowdary,
 Director and Sri.R.S.Bakkannavar, Director will be retiring at this
 annual general meeting and being eligible offer themselves for
 reappointment. During the financial year, Sri N.V.V Prasad, Executive
 Director and Sri M.V.S.R. Prasad, Additional Director of the Company
 resigned on 29.08.2011 and accepted by the Board at their meeting on
 30.08.2011 and the same was informed to members of the Company at their
 Annual General Meeting held on 30.08.2011.
 
 i) Auditors:
 
 M/s. NARVEN ASSOCIATES, Chartered Accountants retire at the ensuing
 Annual General Meeting, and are eligible for reappointment. They have
 furnished the requisite certificate to the effect that their
 reappointment, if made, would be in accordance with section 224 (1B) of
 the Companies Act, 1956.
 
 k) Conservation of energy, technology absorption and foreign exchange
 earnings/out goings:
 
 The particulars as required U/S 217(1) (e) of the Companies Act, 1956,
 read with the Companies (Disclosure of particulars in the report of the
 Board of Directors) Rules 1988 are:
 
 1.  Conservation of energy: The Company does trading of various kinds
 of computer items and provides IT enabled services and does not use any
 energy. The electricity power consumption under LT is minimal hence the
 Company is not an energy intensive unit. However, the Company installed
 power efficient transformers and UPS systems to save the power cost.
 
 2.  Technology absorption, adaptation & innovation: The Company has not
 imported any technology.
 
 I) Internal Control Systems :
 
 Your Company has a well defined and documented Internal Control Systems
 which is adequately monitored.
 
 m) Directors'' Responsibility Statement:
 
 Pursuant to the requirement under section 217(2AA) of the Companies
 Act, 1956, with respect to Directors'' Responsibility Statement, it is
 hereby confirmed:
 
 a.  That in the preparation of the accounts for the financial year
 ended 31 st March, 2012 the applicable accounting standards have been
 followed along with proper explanation relating to material departures;
 
 b.  That the directors have selected such accounting policies and
 applied them consistently and made adjustments and estimates that were
 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 of the Company for the year under review;
 
 c.  That the directors 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 the directors have prepared the accounts for the financial
 year ended 31st March, 2012 on a going concern basis.
 
 n) Acknowledgment:
 
 Your directors thank the clients, vendors, investors and bankers for
 their continued support. Your directors place on record their
 appreciation of the contribution made by the employees at all levels.
 Your directors thank the Government of India, State Governments,
 Electronic Corporation of India Limited and Other Government Agencies
 for their support during the year and look forward to their patronized
 support.
 
                          For and on behalf of the Board of Directors
 
                            Sd/-                              Sd/-
 
 Place: Hyderabad        (T. Gopichand)                  (K. Rama Rao)
 
 Date : 22.08.2012     Vice Chairman and 
                       Managing Director               Wholetime Director