Dear Shareholders,
 
 The financial year 2011-12 was a landmark year in your company''s
 journey from an IT and ITeS company to being India''s largest global
 education company.  This transformational journey has been driven by
 your company''s focus on providing contemporary solutions, partnerships
 with global experts and across the board experience of serving various
 stakeholders in the education sector. Today, your company''s business is
 aligned across six key elements of education delivery - Teaching,
 Learning, Assessment & Intervention, Governance, Advanced Technologies
 and Consulting Solutions, which allow your company to present customers
 with comprehensive end-to-end solutions. This is aligned to your
 company''s mission ''To improve the quality of human capital and the
 learning ecosystem through innovation for better educational outcomes''.
 
 Our FY12 revenue grew by 50% to Rs.1,638 crore - 86% of which came from
 the US, 10% from the UK and the remaining 4% from India and other
 countries.  The education vertical contributed 79% to our revenue while
 other services, such as technical support and erP , accounted for the
 rest. During the period FY07-12, our revenue grew at a compounded
 annual growth rate (CAGr) of 51%, a testimonial of your company''s
 ability to grow in a weak global environment and low government
 spending. The operating margins (eBITDA) for FY12 grew at an even
 higher rate of 60% and the profit after tax grew by 44% over the
 previous financial year. This stellar performance has been backed by
 our strong client relationships, consistent development of unique IP
 and the ability to successfully sew together a host of acquisitions &
 partnerships and emerge as a specialist in large scale
 technology-driven education solutions.
 
 The Global education industry is one of the fastest growing sectors
 worldwide and the second-largest industry after healthcare. The market
 size of the sector is estimated to be USD 4.45 trillion and is expected
 to grow at a CAGr of 7.4% amidst a slowing global economy. In the 21st
 century, even as the competition amongst nations is increasing, there
 is no doubt that at the same time they are also becoming more
 interdependent. Their future is ever more dependent on the knowledge
 and skills of its people, thus creating new opportunities and
 challenges for the education sector focused companies like yours.  even
 more importantly, the emphasis that education is a basic human right
 for a nation''s citizens is being pursued and practiced across the
 globe. Awareness about education in developing countries like India and
 China has further increased the growth rate of the global education
 sector.
 
 The developed markets of the United States of America and the european
 Union constitute 60% and 15% of the global education market
 respectively. These markets are exploring solutions to address needs
 focused around learning, teaching and employability outcomes. In US
 alone K-12 education takes up a huge percentage of state budgets
 (20.5%) and despite the millions of state dollars poured into K-12
 education every year, America''s school systems are still grappling with
 the challenges of turning out adequately proficient students. Your
 company is trying to address these challenges by providing these
 institutions technology based solutions.
 
 I am very sanguine about my outlook for the education sector in India
 for the coming years. The government spending on education will be
 increased to 0 billion in the 12th Five Year Plan (2012-17) from the
 estimated  billion during the current plan period. Going forward the
 government has pledged to increase spend on education to 6% of GDP and
 is bringing in a lot of infrastructural and administrative reforms to
 take the sector to the next level while opening up to private
 participation and investment in the countryRs.s education market.
 
 Your company''s focus on its innovative solutions for Teaching,
 Learning, Assessment and Governance has helped countries globally to
 bridge their ever widening skill deficit and to significantly raise
 their educational standards, whilst our Advanced Technologies and
 Consulting Solutions are making our customers more efficient. our
 future growth strategy primarily involves replicating the earlier
 successes in our major markets and institutionalizing these best
 practices while tailoring them to local needs of the newer markets that
 we intend to cater. Initial signs of success are visible. In India our
 solutions in governance are now being used to track education spends in
 Jharkhand and Assam even as children of semi-urban and rural schools in
 states like Haryana, Maharashtra and Gujarat access computer- aided
 learning systems and digital interactive content for their education
 needs. In FY12, your company won projects worth over Rs.248 crore from
 five different state governments and also implemented projects worth
 Rs.568 crore.
 
 We believe that your company''s competency in working with Governments &
 education systems and in understanding their needs will hold in good
 stead in the India-focused programs and expect the domestic revenue
 contribution to increase to 10% by FY14.
 
 To further your company''s endeavor of making students campus or career
 oriented, we are also focusing in a big way on vocational training for
 the Indian market and intend to take up new initiatives in this area in
 the current financial year through an integrated skill-development
 ecosystem.
 
 Besides India, our focus on developing markets includes our foray into
 African and Middle east markets, where we gained initial success with a
 partnership with the provincial government of ras al-Khaimah in the UAe
 to run a higher education institute offering management, architecture
 and engineering degrees in content partnership with BIT, ranchi.
 
 To bring the global best to the nations your company serves, we
 continue to partner with world renowned experts in various segments.
 During FY12, we partnered with the east Valley Institute of Technology
 (eVIT) in U.S.  and the Institute of Technical education (ITe) in
 Singapore, both of them renowned for their expertise in vocational
 education and training.
 
 Your company in partnership with Center for Higher Learning at John C
 Stennis Space Center, NASA has pioneered modern 3D immersive learning
 by simulating real life experience for complex subjects on topics that
 are difficult for students to grasp, learn, experience and then apply.
 
 Your Company has collaborated with the University of oxford to focus on
 comprehensive teacher quality reform.  The programme aims at improving
 the professional working knowledge of teachers through a networked
 learning community that operates across geographies.
 
 Along with Texas Instruments, your company has created a first of its
 kind revolutionary integrated educational solution for math and science
 teaching called STeMPower.  This integrates real-world data,
 simulations, pictorial aids and multiple representations to encourage
 students to make connections, explore concepts and be active learners,
 thus empowering them to be successful.
 
 We are making large investments in India and leveraging on our strong
 product line and global experience. I expect these investments to
 significantly contribute to your company''s growth in the coming years.
 our expansion into new geographies like Middle east, Africa and Far
 east will also contribute significantly to the Company''s overall growth
 in years ahead. Whilst we expect to maintain consistent growth in US
 revenues, higher growth is expected in other geographies.
 
 While we have always strived to deliver our best, the global
 acknowledgment of same is always heartening.  We were recently ranked
 4th in the list of Fastest Growing Companies in India and named in
 Forbes Asia''s list of Best Companies under a Billion $. We were also
 awarded the Best Indian Company operating from US under the other
 services category by Indo- American Chamber of Commerce (IACC) and Best
 Public Sector recruitment Agency in UK for 2011. We were also appraised
 at CMMi 5, the highest level of process maturity that speaking volumes
 about our process orientation.
 
 In conclusion, I would like to thank all the employees for their
 unstinted commitment and contribution to your company to achieve this
 spectacular performance.  I continue to look forward to the Board of
 Directors'' guidance and your support during this exciting yet
 challenging phase for the company. Your company firmly believes in the
 power of the mind and that a single energized, empowered, enlightened
 mind can transform organizations, societies and nations. We are
 confident that this will take us a long way in creating lasting
 impressions across the globe as an iconic education brand.
 
                                                   Best wishes
 
                                              Sanjeev Mansotra
 
                                                      Chairman