Dear Shareholders,
 
 The global online population today stands at 30% (2.27 billion) of the
 world''s total population. Interestingly, average time spent on the
 internet globally is now 16 hours per month. As a result, the market
 for internet advertising is expected to touch USD 100 million by 2014,
 from around USD 79 million in 2012.  The US, the primary market for
 online advertising, has for the first time reached a value of USD 31
 billion mark, registering an annual growth of 22% in 2011 over 2010.
 
 Major European countries saw 14% growth in online marketing, despite
 economic adversity. China witnessed a whopping 57% growth in online ad
 spend,emerging as a USD 8.1-billion market. India''s online ad spend
 also surged by 25% to Rs. 2,850 crore in 2011-12.
 
 We have emerged as one of the leading players in the digital marketing
 space in India and globally.  Despite economic turmoil across the globe
 we performed creditably. In 2011-12, we achieved a Rs. 1,297-crore
 turnover, owing to enhanced scale across all business divisions and the
 amalgamation. we reported a Rs. 272.08 crore EBIDTA, against Rs. 75.59
 crore in 2010-11 and a Rs. 191.80-crore net profit against Rs. 50.18 crore
 in 2010-11. Our earnings per share stood at Rs. 4.03.
 
 One of the major milestones achieved during the year was the the
 amalgamation of Ybrant Digital Limited into LGS Global Limited.
 
 We have received the approval for merger of LGS Global Limited and
 Ybrant Digital limited from BSE and the Hon''ble High Court of Andhra
 Pradesh. The amalgamated entity was renamed Ybrant Digital Limited and
 got the shares listed in June 2012. This amalgamation will help create
 a highly competitive digital marketing solutions company. The
 combination of the operations will create a unique level of integration
 and will enable substantial cost savings. It would also aid in
 enhancing the scale of operations and the improved financial structure,
 cash flows, increased assets base, consolidated revenues and
 profitability would enhance shareholder returns.
 
 I am glad to announce that this year we became sales partners for
 Microsoft Advertising for Argentina and six cities across India. After
 being associated with Facebook for the past three years, we are again
 chosen as their official Marketing API Partner globally. Such
 partnerships will encourage the YDL team to keep evolving new standards
 in technology and best practices for ad serving, targeting and
 optimisation. It also validates our position in the market as a leading
 global digital marketing provider.
 
 Our future priorities comprise the following:
 
 - Capitalise on growth opportunities through organic and inorganic
 routes
 
 - Expand geographic presence to Eastern Europe, China, Africa and
 Korea
 
 - Continue to invest in technologies to upgrade our existing
 platforms and develop new platforms in accordance with client
 requirements
 
 - Forge relationships with traditional advertising and media service
 providers
 
 - Strengthen client relationships with improved solutions and
 services
 
 - Widen sales network by acquiring under-monetised media
 
 - Develop local merchant database into the network using local search
 
 - Expand presence and revenues from non-USA and European markets
 
 People at YDL have always loved the challenge to elevate the
 organisation to the next level.  Their consistent innovation and hard
 work have enabled us to emerge as a potent force in the digital galaxy.
 As internet empowers the world, the creative ferment in digital
 advertising will continue.
 
 We will act as cheerleaders and celebrate the spectacle.
 
 Best regards,
 
 M Suresh Kumar Reddy
 
 Chairman and Managing Director