Dear Stakeholder,

It is that time of the year again when we have the wonderful opportunity to meet up with many of you and update you on the developments in your Company. This time it is with lot of anticipation and excitement that I seek to do this since your Company has significantly changed. We are now a truly global and a true IT company with operations in Hardware, Software, KPO and BPO and of course, E waste. As you read through this report, you will understand that a new Cerebra is now growing stronger and profitable. We will soon be able to declare dividends since we hope to wipe out all our accumulated losses this year.

We are proud to announce that your Company achieved a top line of Rs. 8379.81 lakhs and a bottom line of Rs.194.57 lakhs. This was possible mainly due to the confidence reposed in the management by all of you.

We have an experienced team at the helm of each division and who are all fully committed and self driven to take Cerebra to greater and dizzy heights.

We have identified inorganic growth as a strategy to grow provided it is in synergy with our existing operations. Confirming to hat, we have acquired majority stake in Geeta Electronics an IT distributor who as been in business for the last 35 years. Headed by the dynamic and experienced Mr.Ashok Chhabria this will work in tandem with our existing operations and also with our new subsidiary in Dubai.

We have now started a subsidiary in Dubai called Cerebra Middle East FZCo headed by Mr.Asit Ahuja who was associated with Cerebra earlier as the head of Mumbai region. He has been in Dubai for the last 5 years and has contributed a topline of 40 M USD in his previous employment. He is now the head of Cerebra ME and has a good team. We can look forward to some encouraging results from Dubai in the years to come.

Our own domestic ESD division is headed by Mr. Phalguna and he has a good, dynamic and experienced team to handle the domestic market. He will also work well with Cerebra ME and Geeta Monitors in which we acquired majority stake, to maximise our profits and revenues.

Our E-waste business has started. It is an exciting, eco friendly business and in the current environment it is something that the country and the world require badly. The main factory is coming up in Narsapura (a place near Kolar) on a 12 acre plot and should be ready by the middle of the year. This plant will be supposedly the largest in the country and with the support of Cimelia, Singapore with whom we have very strong ties it should soon be processing around 90k tons of E waste.

On the ITES front we have now setup an office in New York to handle our LPO business headed by Mr.David Kinnear a highly respected and experienced professional. Our software division is working on Mobile Applications is headed by Mr. Sudhakar S V along with Mr. Pavan Panchamukhi has a good strong revenue projections. This will soon become a strong pillar on which Cerebra will rest comfortably and grow to new heights since the foundation is very strong.

Your Company’s Directors are fully committed to take Cerebra to the next level in the coming years and very soon you will see your Company being very visible, robust and dynamic in the IT space with more acquisitions, solid organic growth and become truly a global company.

I take this opportunity to thank all the shareholders, vendors, partners, bankers and the Govt of Karnataka for their support and encouragement without which it would have become impossible to achieve and grow.

With best wishes for an excellent 2012 !