Visualsoft (I)

Dear Members,
 
 present to you the Eleventh Annual Report of your Company.
 
 The year witnessed yet another consolidation in the IT industry. The
 growth in the industry was not only on account of traditional
 application development but also backed by a strong support from
 packaged software and outsourced product development. This has led to a
 growth in offshore IT business for developing countries. The current
 trend indicates that there is a growing interest in offshoring, with
 over 80 percent of US companies having deliberated on its benefits.
 However, still there are large numbers of organizations that are still
 not geared up in terms of processes or systems to manage multi-source
 delivery. However, as per research, it is clear that these companies
 shall need to resort to offshore outsourcing to improve on their bottom
 lines. Your Company is geared up in the areas of outsourced product
 development and packaged software solutions. During the year, the
 Company has started its core focus on these areas and has suitably
 modified its business. With these changes and focused approach, the
 Company is confident to consolidate and grow its business in line with
 the global markets.
 
 Performance
 
 The year 2005-06 witnessed many changes within the Company. The
 management of the Company decided to realign its business with core
 focus on offering technology solutions. This is to keep in line with
 the global needs and remain in competition. With these dynamic changes
 and setbacks the Company consolidated its business and started focusing
 on the core business activity. Overall, the Company has achieved a
 turnover of Rs 16394.01 Lakhs and a net profit of Rs 1910.20 Lakhs for
 the financial year 2005-2006 The BPO segment of the business has not
 contributed much during the year. The Company shall be reviewing this
 business segment during the ensuing year for its continuance.
 
 Your Companys focus continues to be in providing value added solutions
 in technology space. This focus has enabled the Company to win notable
 customer wins in the outsourced product development space (OPD).
 
 Business Strategy
 
 Your Company strives to become a leading global services Company in
 Outsourced Product Development services. Also it has started focusing
 on providing testing support to product development companies. It aims
 at consolidating its revenues and enhancement of strategic customer
 relationships.
 
 As a part of long-term business strategy, your Company believes in
 focusing on the following key areas:
 
 * Deploy strong technical expertise leveraging on product background
 
 * Strengthen Global Delivery Model
 
 * Continue to optimize world class processes/methodologies
 
 * Strong emphasis on Customer Retention and Customer Relationship
 Management
 
 * Adequately strengthen the Sales and Marketing efforts to achieve the
 desired results
 
 As a part of this endeavor and also to enhance the size and grow at
 greater phase, your Company, ventured into reviewing few M&A proposals.
 During the year Sep 2006, the Company received a proposal from one of
 the mid sized IT Company namely, Megasoft Limited, Chennai. The Company
 is specialized in offering telecom products under the brand name Xius
 and provides generic IT solutions. Your Company accepted the proposal
 of Megasoft Limited to acquire and merge VisualSoft into it. The Board
 duly accepted the proposal, as it would bring in enormous amount of
 management bandwidth and brand customers in the portfolio.
 
 With the combined Companys expertise at strategic, technical,
 operational and organizational areas, it shall benefit the Company in
 winning new business opportunities and grow at an accelerated phase.
 
 Your Company is committed to provide superior quality services that are
 aimed at customer delight through professionally organized teamwork and
 clearly defined processes. The Companys processes are time-tested
 rated at CMM Level 5, ensuring that Customers requirements are
 evaluated and solutions delivered, that go beyond expectations. Your
 Company will continue to adopt the best of the quality processes both
 in software development as well as in people management.
 
 With these initiatives, your Company is confident of being chosen as a
 preferred vendor in the verticals it operates and for the solutions it
 offers.
 
 Employees are the key assets to any organization. The Company shall
 continue to adopt best HR practices to recruit and retain the talented
 people.
 
 The Company is confident of consolidating its core business in the
 ensuing years. Also it shall pursue the inorganic opportunities as a
 part of its growth strategy.
 
 I place on record my sincere thanks to all the stakeholders for their
 continued and valuable support.
 
 Sincerely Yours
 
                                                      Sudhakar R.Gunturu
                                                       Managing Director