Chairman's Speech

Ladies and Gentlemen,

It gives me a great pleasure to welcome you all to the 23rd Annual General Meeting of Kale Consultants Limited. The Director’s report, Auditors report and audited accounts with notes thereon are with you for some time and request your kind permission to take them as read..

This year we have to report that your company has delivered on the promises it made last year. It has now has a customer base of more than 100 clients globally. It crossed revenue level of Rs. One billion and profits of over Rs. Hundred million. These are important numbers that we promised we would deliver on and we did. This is more remarkable in the light of slowdown, recessionary trends and the impact on the travel and airlines sector. There has been significant negative impact both on the passenger side as well as cargo side of the airlines operations. We had to draw upon every possible source of innovation, imagination and customer relationships to ensure that not only our revenues are protected where possible but also explore and get additional revenue sources. Tough conditions many a times bring with them opportunities in a hidden form. Whether it is to reduce costs or seek imaginative revenue streams and new revenue models. This new determination has seen both revenue and profit growths as well as new customer acquisitions.

profit growths as well as new customer acquisitions. However, the slowdown is for real and we have to trade cautiously, yet optimistically in coming year. A conscious effort by the company has ensured that we are not over dependent on a particular geography there by spreading the risks. The key investments made by the company in IPR as well as platform based BPOs is a critical differentiator for us in the minds of the customer. We are also building stronger relationships with customers due to our flexibility of sharing the risks and rewards with the customer. The SaaS –software as a service is one such example by which we share the customer business changes.

Your company’s unique ability of offering value proposition as well as flexible revenue model is demonstrated in these numbers. Your company is now making conscious investments in the Logistics practice to enable it to harness opportunities presented in the Indian logistics industry as well as global alliances in the industry. The spread of Kale customers across five continents and thirty countries is a testimony to your company’s global acceptance and aspirations. Your company has signed multiyear contract with Kuwait’s luxury airline- Watania, Far east giant Cathay Pacific and moved 18 new customers to the APEX solution. Now American, United, AirFrance-KLM, Continental, Delta, Northwest are some of the biggest airlines in the world appear in the list of prestigious clients of your company.

Your company’s plans to focus on the quality solutions have another feather in its cap- PCI DSS- certification from Payment Card Industry Data Security Standards benchmark. We are the first KPOs in India to initiate and achieve this certification.

All this would not be possible without our colleagues who have taken up our dreams to provide world class pioneering products from India and put them on world software map and made them come true. We admire and salute their spirit and would provide them with an environment fostering innovation, quality and leadership.

I thank all of our stakeholders- Clients, Colleagues and Corporate stockholders, business partners, Bankers, RBI, NASSCOM, and various government authorities for the constant encouragement and support throughout the year. I also like to record the appreciation for the efforts of all the Kale’ites- for their total dedication and hard work. I am sure that with this continued support the company would see more recognition, awards, profitability, partnerships and prosperity in time to come.

Ladies and Gentlemen,

It gives me a great pleasure to welcome you all to the 22nd Annual General Meeting of Kale Consultants Limited. The Director’s report, Auditors report and audited accounts with notes thereon are with you for some time and request your kind permission to take them as read.

The global airlines industry has faced some of the toughest challenges this year including spiraling fuel costs, need to modernize the aging fleet, legacy systems and procedures and demands of the complex customer needs. Fortunately technology is providing answers to some of these issues and your company is closely working with industry bodies to address and find winning solutions in this difficult conditions. Your company is strengthening relationships with IATA and ATPCO two of the widely represented industry forces to arrive at modern and flexible solutions for the industry.

This year your company concluded the acquisition of Zero Octa and cemented the alliance with ATPCO. Now the company has presence from New Zealand to USA with customer base across all the continents of the globe. The professionals strength now has grown to over 1500 talented individuals across the globe.

Your company has helped the industry in implementing some of these initiatives through efficiency improvement offerings as well as enabling them to convert some of the fixed expenditure to revenue based variable expenditure. This combination is a powerful one and our results show this in the year completed.

Now your company is an acknowledged leader in airline revenue accounting space while it has firmly moving towards establishing a solid logistics practice with quite a few key customers already on board. With over 1500+ colleagues in Kale family, it is now quite well equipped to provide quality solutions to over 95 customers including the two largest airline alliances namely -STAR alliance and SkyTeam. You would be quite happy to note that twelve out of top twenty airlines in the world are now amongst the list of prestigious clients of your company.

Quality, growth and innovation are three cornerstones around which the company plans to build its future and has made significant investments and strides in this direction. We would continue to closely partner with our clients to evolve industry standard solutions yet providing the flexibility to cater for custom needs of every customer. Alliances with industry organizations would fuel our growth while adding value to the profitability of our customers. Lastly we would continue to be the first on many innovative ideas and approaches which would provide thought leadership to the airline and travel industry.

Even though lot of new entrants have been focusing on the travel airlines and logistics marketplace your company’s leadership position would be maintained thanks to innovative products, key alliances, established brands and committed professionals. We have no doubts that the future is bright for your company and soon with your support we would cross two cherished landmarks- First of servicing of over 100 customers and then –reaching Rs. 1000 million revenue. These landmarks surely would be stepping stones to higher revenue aspirations and stronger profitability.

I thank all of our stakeholders- Clients, Colleagues and Corporate stockholders, business partners, Bankers, RBI, NASSCOM, and various government authorities for the constant encouragement and support throughout the year. I also like to record the appreciation for the efforts of all the Kale’ites- for their total dedication and hard work. I am sure that with this continued support the company would see more recognition, awards, profitability, partnerships and growth in time to come.

Ladies and Gentlemen,

It gives me a great pleasure to welcome you all to the 21st Annual General Meeting of Kale Consultants Limited. The Director's report, Auditors report and audited accounts with notes thereon are with you for some time and request your kind permission to take them as read.

The global outlook for the airlines industry has some clearly defined trends as per the studies and reports by the bodies like IATA. First the airline industry's profits would be stable and growing to US $ 5.1 Billion in the calendar year 2007. Second, increasing fuel prices puts an extra pressure on the demand for increasing efficiencies through use of technology in all the areas of operations and third the aviation industry expansion contributes to the overall increase in productivity and economic growth round the globe. The same is also true for the Indian aviation industry which is considered to be one of the vibrant growth markets in the world. These trends provide some great opportunities and challenges to the industry.

Let me quickly dwell on the both the performance of the company for year under review as well as the preparations the company has made to meet the market expectations based on the trends outlined.

The increase in the new contracts signed with the customers as well as the repeat business received from them reaffirms the belief that your company is closely aligning itself with the client needs and preparing for new needs based on the trends. This essentially means that the company should know the processes and requirements of the client business as much if not more than the client in house personnel. This puts heavy premium on domain knowledge as well as building platforms and technology required for the challenges faced by the industry. We have been preparing ourselves diligently towards this goal and results have already started manifesting in more than one ways.

Kale Consultants was chosen for prestigious NASSCOM IT innovation award amongst 3000+ companies in the field and is a great distinction to be honored by the IT industry body for the excellence in building innovative platform based BPO model for airline industry. This speaks volumes of the high esteem all the competitors and partners hold all our achievements on the global scale.

Our report speaks about the third generation of outsourcing wherein knowledge would be key and platform based outsourcing would transform the way the clients processes would be managed and significant value would be created both for the clients and ourselves. We have now positioned ourselves into a leadership position globally with over 62 airlines and travel customers round the globe.

To sum up the airline and travel industry now would need neither just a low cost provider nor just a resource provider, but would expect companies to provide leadership in ideas and actions to create the value through constant innovation. Those companies who can change some of the rules of the game and create value for the clients would be the preferred partners for the clients. This is where your company excels and is poised to take big strides.

I thank all of our stakeholders- Clients, Colleagues and Corporate stockholders, business partners, Bankers, RBI, NASSCOM, and various government authorities for the constant encouragement and support throughout the year. I also like to record the appreciation for the efforts of all the Kale'ites- for their total dedication and hard work. I am sure that with this continued support the company would see more recognition, awards, profitability, partnerships and growth in time to come.

Ladies and Gentlemen,

It gives me a great pleasure to welcome you all to the 20th Annual General Meeting of Kale Consultants Limited. The Director's report, Auditors report and audited accounts with notes thereon are with you for some time and request your kind permission to take them as read.

Airlines worldwide have reported bullish outlooks as strong revenue trends are expected to continue through the summer and into the rest of the year. They seem to be seeing the Light at the end of five year tunnel as per IATA report. The revenues have grown over 10% which is almost double of the normal historic average and the profitability seems to be holding steady in spite of spiraling fuel costs. All this was possible due to the better economy, concerted efforts by the industry to improve productivity and reduce costs.

This combination of little capacity growth, over 10% revenue growth, significant cost reductions, and watchful expenditure has eased some pressures on the cash flow generation which is making the industry rest on slightly better footing.

Your company has helped the industry in implementing some of these initiatives through efficiency improvement offerings as well as enabling them to convert some of the fixed expenditure to revenue based variable expenditure. This combination is a powerful one and our results show this in the year completed.

As you would observe it was a year of progress on all the perspectives and we plan to build upon these successes. Our focuses on Travel & transportation segments coupled with innovative "pay for value received" mode of offerings have aligned our goals with those of our clients. This in turn has provided us with multiyear relationships with our clients enabling planned sustainable growth for years to come.

Your Company now offers comprehensive suite of solutions for the Airline and travel industry. These include PRA solutions, Cargo solutions, Travel solutions, Managed process services. These offering lead to high end value creations for our client partners and provides us a sustained competitive advantage. The spectrum of flexible services provides our client a tool -to meet the challenging situation of meeting the growing expectations of their customers, employees and investors alike.

Your company continues to play an important role in global initiatives for Travel & transportation industry. It is actively participating in IATA initiatives like NFP, E-freight, Cargo-2000, Simplify the Business (StB). Incidentally Kale is proud to be the only Indian company selected for the StB worldwide initiative by IATA. This would position us as key player for implementing new initiatives by airlines as part of StB.

The growth of traffic, cargo and Internet travel products and services provide an excellent platform to your company to leverage this opportunity. The only wild card is of course the oil prices - which would be impacting the economy in general and our industry in particular. We expect to grow on all counts and measures for the years ahead even though we may experience little "turbulences" on our way to our relentless pursuit of pioneering solutions for our client partners.

I thank all of our stakeholders- Clients, Colleagues and Corporate stockholders, business partners, Bankers, RBI, NASSCOM, and various government authorities for the constant encouragement and support throughout the year. I also like to record the appreciation for the efforts of all the Kale'ites- for their total dedication and hard work. I am sure that with this continued support we would see the results of all our hard work paying off year after year.

Ladies and Gentlemen,

It gives me a great pleasure to welcome you all to the 19th Annual General Meeting of Kale Consultants Limited. The Director's report, Auditors report and audited accounts with notes thereon are with you for some time and request your kind permission to take them as read.

This year has been an interesting year for the US $400 Billion Airline industry. The airline traffic globally totaling to 1.8 Billion passengers grew at 8.7% last year which is a very welcome sign. The cargo traffic also grew compared to last year indicating the up tick in the economy. However, the fuel prices continue to weigh heavily on the growth and profitability for the industry. The margins are under pressure as evident from the fact that the airlines in USA lost record money. Naturally Airlines are looking for efficiency improvements and they have been able to come up with 2-3% gains in each of the last two years and even more expected for 2005. The tourism industry globally represents about 5% of the GDP and in Asia it is expected to be much higher. The International passenger traffic to and from India is expected to expand significantly bringing it amongst the top growth markets in the world. All in all your company is in one of the most competitive and high growth markets and is in an excellent position to offer solutions to our travel partners.

For the year under consideration the company has recorded revenues of Rs. 505.99 million as compared to Rs. 481.37 million a growth of 5.1% over last year. However the growth in the Airline segment is over 28% over last year. Operating profit has grown to Rs. 36.72 million from Rs. 31.67 million during the previous year. Also the annuity type revenue from multiyear contracts has increased by 50%, ensuring the revenue certainty - an important consideration for planned growth.

Our goals for the last year included significant increase in new clients while expanding our current client relationships to provide them with a competitive edge. I am happy to report the company has done well on both these counts as you can see from the facts above.

The good performance continued in the first quarter with the company winning new customers while rewarded with repeat orders from the existing customers. Today the company has an order book over Rs. 2.1 billion to be completed over next few years. This shows the significant value the customers attach to the relationship with your company.

Your company offers the entire suite of solutions for the Airline and travel industry. These include Revenue accounting, Revenue recovery and protection, Cargo Management and e-travel strategies. The offering covers the entire value chain from Managed processing services, hosted services, software licensing to consulting services. This enables to fully engage the client association by matching the needs and comfort of the client with the company offerings. These flexible solutions help the client to meet the challenging situation of meeting the growing expectations of their customers while significantly driving down the cost structure. The multi-year deals signed by the company are testimony to the growing customer confidence in us for delivering value to clients around the globe.

The outlook for the business is promising given the focus on cost reduction for travel and transportation clients. You company is positioned to address the opportunity with talented professionals, world-class infrastructure and flexible solutions. We at Kale, have achieved quite a few firsts- for the Country and the Industry- and I am sure that the pioneering spirit, wise investments and the recent wins would pave the way for significant growth in years to come.

I thank all of our stakeholders- Clients, Colleagues and Corporate stockholders- business partners, Bankers, RBI, NASSCOM, and various government authorities for the constant encouragement and support throughout the year. I also like to thank the efforts of all the Kale Consultants colleagues for their total dedication and hard work. I am sure that with this continued support we would see the results of all our hard work paying off in near future.

Ladies and Gentlemen,

It gives me a great pleasure to welcome you all to the 18th Annual General Meeting of Kale Consultants Limited. The Director's report, Auditors report and audited accounts with notes thereon are with you for some time and request your kind permission to take them as read.

Your company has completed the restructuring planned in the year under consideration. We looked at our business mix and decided to focus all of our efforts on GLOBAL and SYNERGISTIC offerings. Your company decided that we would concentrate our energies in Travel and Airlines segments which by their very nature are really GLOBAL and have quite strong complementary offerings between themselves which help to garner new business with possible overlapping customer base.

For the year under consideration, the company recorded total revenues of Rs 481.37 million as compared to Rs 507.01 million in the previous year, despite the revenue loss due to the restructuring initiative. The discontinued business had contributed Rs. 152 million in the last financial year. The core business of Airline products and services has continued to show steady growth with a 5 year CAGR of 32%.The Company had a PAT of Rs 31.66 million, compared to Rs 31.42 million last year, despite the lower top line. This reflects the improved profitability of the restructured business and the promise it holds for future for sustained growth & profitability.

Your company has finished implementation of the enterprise-wide cargo solution CSP T Rel 2 at Seoul based Asiana Airlines. The solution is at use in a mission critical 24x7 environment over 50 stations and 500 users world-wide. This marks an important landmark indicating the successful launch of our offerings in the Cargo operations. This should open up opportunities for the state of the art cargo management offering for clients worldwide.

As we had stated last year we have expanded the service offering in the Managed Process Service (MPS) business from Revenue Accounting to Audit Services to include Ticket Proration, Cargo Sales Audit and Interline Billing among others. We have seen significant client interest in these services and by having marquee customers for each of these services we hope to seize new opportunities with these offerings as growth engines propelling the company visibility and prosperity.

The airlines industry is now witnessing an increased demand on travel after a long time, which is a very welcome sign. Commercial aviation activities generate over $100 Billion in revenue in North American markets alone while the Travel & Tourism industry account for over 8% GDP in western countries. Results for the first six months of 2004 of airline Industry indicate increases of 20.4% in international passenger traffic and 13.0% in cargo over 2003. This augurs well for your company due to increase in the transactions that would be handled by the airline clients. Cargo traffic is expected to increase with the economic growth and increasing world trade. It should also be stimulated by the development of global e-commerce and manufacturing trends such as just-in-time delivery, which requires more materials to be shipped rapidly. Your company provides solutions to both the Passenger as well as Cargo management space and is well positioned for capitalizing these growth opportunities.

Simultaneously the cost pressures on large airlines however are increasing due to the competition from new and nimble airlines with lower cost structures and flexible operations. The airline industry faces many challenges like fixed cost control, cash preservation and cautious growth. As a result Airlines are quite keen to explore ways for cost reductions and business transformations leading to added efficiency. Our ability to transform some of the fixed costs into variable costs in line with the business volume does present an attractive proposition for the industry. This is an opportunity for your company and we are well equipped for this. We have now strengthened our brand recognition globally with airline industry as witnessed from the fact that our product APEX has been chosen as the global standard by IATA for its First & Final initiative. This is one of the few instances where a product "Made in India " has made a mark on global industry standards. Our complete set of offerings from Consulting, software development; packaged software products to Managed processing services allow our clients to engage us with multiple options as per their unique needs. This enables us to engage in multiple assignments with the same clients as the comfort and confidence levels increase. This trend is quite visible and has helped us to build multi layer multi service relationships leading to revenue streams spanning across multiple years. The resultant deep understanding of the business of our clients in turn has provided us an opportunity to steeply increase our involvement towards identifying and delivering significant value additions to our clients.

The Travel Technology Division has added new dimension for the growth of the company. With the travel domain skills and state-of-the-art technology expertise, this Division creates innovative and path breaking applications by combining the power of internet technology with demanding needs of travel consumers. It has strengthened our ability to serve both the Travel suppliers, Operators, travel agents and consumers with our solutions. Here we are providing the cutting edge technology to provide a competitive edge to our clients in a very tough market environment. The propensity of increased travel across the globe only enhances our opportunities in software projects as well as BPO services for the Travel segment.

The road ahead is as any ambitious journey undertaken full of both challenges and possibilities. The Airline industry is faced with new issues and opportunities and look upon us as reliable partner in progress to help them address the issues and seize the opportunities. We have done this effectively in past and with new technology, excellent infrastructure and professional colleagues we would strive to exceed their expectations. Our endeavor is becoming the "value innovators" for our clients. By developing customer focused niche competencies and leveraging our own products to offer processing services we would ensure that the company would operate at top end of the value chain. Our unique business model would continue to generate momentum for expanding the deep client relationships while acquiring new clientele.

Our goals for the next year include significant increase in new clients while enriching our current clients with technological adoptions to provide them with a competitive edge. Our synergy to provide both Travel and airline solutions should also provide attractive proposition for our prospective clients. We would continue to judiciously invest into technology, branding, infrastructure and processes to provide true world-class offerings. With some uplift and stability of the airline industry your company should see significant growth in near future.

I thank all of our stakeholders- Clients, Colleagues and Corporate stockholders- business partners, Bankers, RBI, NASSCOM, and various government authorities for the constant encouragement and support throughout the year. I also like to thank the efforts of all the Kale Consultants colleagues for their total dedication and hard work. I am sure that with this continued support we would see fruits of the years of preparation in near future.

Ladies and Gentlemen,

It gives me a great pleasure to welcome you all to the 17th Annual General Meeting of Kale Consultants Limited this morning. The Director's report, Auditors report and audited accounts with notes thereon are with you for some time and request your kind permission to take them as read.

Continuing global recession, which had an adverse impact on the IT industry in general and Airlines industry in particular was prevalent throughout the last year. For our Airline customers the series of global events - slowdown in travel, war on Iraq and scare of SARS made the situation further challenging. Our customers are now increasingly looking for flexibility in solutions, shifting the fixed costs to variable costs and an integrated approach from their IT partners. Your company, having anticipated these trends, positioned itself through our offerings to align us closely with our customers and the needs of the changing landscape.

We have integrated our own state of the art products, enrichment of solutions through customization and well-conceived processing systems and infrastructure. This enables us to offer our clients cutting edge solutions in our vertical segments while creating entry barriers for the competition. We are now able to offer our clients licensed products if they so choose, customized development for their special needs if they so demand and total business process outsourcing if it suits them thus covering the entire portfolio of offerings. This flexibility in offerings has enabled us to get new clients while winning repeat business from existing customers. Our IPR led growth approach has ensured that we continue to provide significant "value" as compared to pure services play, thus enabling to differentiate ourselves with our clients.

Your company has managed to sustain the revenues while containing costs leading to improved profitability for the year concluded. The Company reported a net profit of Rs 31.42 Mn for the year ended 31st March 2003, showing an increase of 55.08% against a profit of Rs 20.26 Mn reported during the previous year. This was achieved while maintaining revenue base and reducing the cost structure. The total income for the year was Rs 507.01 Mn registering a marginal growth of 0.5% over Rs 504.50 Mn reported during the previous year.

The Airlines division reported sales of Rs. 348.19 million, a growth of 14% over the previous year. The Managed Process Solutions (MPS) business was the key contributor to this growth, showing an impressive growth with sales of Rs 151.32 million over Rs 66.14 million reported during the previous year.

The Company has expanded its service offering in the Managed Process Service (MPS) business from Revenue Accounting to Audit Services. At present, it offers end-to-end Revenue Accounting and Sales Audit services to the Airline industry. We plan to further expand the airline services portfolio to include Ticket Proration, Cargo Sales Audit and Interline Billing among others. We have seen significant client interest in these services and hope to seize new opportunities with these new offerings.

Branding its BPO business as Managed Process Services (MPS), we have built a niche in the outsourcing value chain. The branding highlights the value-added nature of our offerings; wherein the complete responsibility and ownership of outsourced business processes rests with Kale. Thus, the value to customers is latest technology, cost structure tied up with business conditions, significant cost savings and optimization of processes.

As part of our strategy to expand its outsourcing business to other industry verticals like Banking, Travel & Transport etc., we have set up a new center in Mumbai with state of the art infrastructure and facilities. This center has the ability to grow in a modular fashion as per the business needs.

Our Banking and Projects services divisions have chosen to work in specific niche segments and geographies to ensure focused growth. This is especially true considering the consolidation of software services market and increased role the domain expertise play. We continued to win new clients while ensuring repeat business from our existing clients through customer-focused teams. We are now consolidating our Banking and Projects Divisions into a single division known as BPD. This would enable us to provide adequate expertise and management to address Financial services and Banking vertical more effectively.

During the year, the Company was selected by the International Air Transport Association (IATA) Neutral Prorate AWG and recommended by the Revenue Accounting Panel as one of the two co-existing solution offerings to the industry for the Neutral Proration. This recognition is a very important achievement for the Company with significant implications for the future growth.

The road ahead continues to be of challenges and opportunities. Our efforts for global brand recognition, international industry acceptance and multilevel customer engagements have shown visible results. We are now a known international player widely respected for the work we do in our verticals. This has not been reflected into the top and bottom line growth as yet, but we are confident that it is a matter of time that it will. The Company aims to expand its presence in transportation and tourism sector while consolidating its position in the airlines segment. It will also continue to pursue opportunities in the Financial and Banking space, to leverage the expertise and domain knowledge, which we have acquired over the years. Developing customer focused niche competencies and leveraging our own products to offer processing services would ensure that the company would operate at top end of the value chain. This unique business model should give a competitive advantage to win new business for us.

I take this opportunity to appreciate our clients for trusting us to provide innovative solutions to them. I thank the stakeholders, business partners, Bankers, RBI, NASSCOM, and various government authorities for the constant encouragement and support throughout the year. I also like to thank the efforts of all the Kale Consultants colleagues for their total dedication and hard work. I am sure that with continued support and focused efforts we will build a future that all of us will be proud of.

Ladies and Gentlemen,

I welcome you all to the 16th Annual General Meeting of Kale Consultants Limited this morning. The Director's report, Auditors report and audited accounts with notes thereon are with you for some time and request your kind permission to take them as read.

Last year the IT industry worldwide faced significant slowdown with many of the players showing negative growth. The Airline industry was particularly affected due to the September eleven events and the aftermath of diminishing passenger traffic and loss in revenues. The clouds of potential conflict in our subcontinent affected prospective client visits and business. This challenging environment presented an adverse scenario for Indian software companies.

Under this backdrop, your company has not only registered robust growth, but also delivered on the promises of meeting both the revenue and profit targets. Your company crossed the Rs. 500 million revenue mark this year registering the growth of 43.8%. We were able to increase revenues while controlling the expenditure to 11.5%. We managed our receivables while increasing the cash generation from operations. The Company thus registered profit after tax of Rs. 20.26 million as compared to loss of Rs.67.31 million the earlier year. The spread of revenue and clientele around the world provide your company the needed spread across the customer and regional dependencies. This would ensure the stability amongst the present turbulent environment.

We continued to win new clients worldwide while ensuring repeat business from our existing clients through customer-focused teams. This was possible due to the key initiatives of creating sustained competitive advantage through - having our own IPR, creating able teams, building domain knowledge and establishing our global brand. These efforts have already started showing the anticipated results. The Company has entered into a development and commercialization agreement with the International Air Transport Association (IATA) to jointly develop a revolutionary product called "CEO Cockpit" targeted at Airlines CEO's and top management. Your company has won laurels on international fronts for its products and services. It has earned the recognition both from its clients and the industry associations alike for its excellence and innovation. The ATTIS 2002 award for the "Best revenue accounting system provider for Airline industry" and Computer World laureate award for enterprise cargo management solution are world-class recognition for your company.

Our banking division also completed some very demanding projects in tight time frames and delivered innovative application solutions for mission critical business needs of our clients. Our clients have specially recognized our colleagues for their competent and dedicated efforts to help them achieve their business objectives.

Your company has always been on lookout for new growth potential avenues and has proactively pursued these opportunities. Last year we had set up an Managed Process Services Center (MPS) at Mumbai to provide outsourced business process services to the airline industry. This BPO initiative has proved to be quite well timed, as we have been able to convince Airlines about advantages of outsourcing and the list of clients for this center is expanding. In this economic climate Airlines prefer to outsource than have the infrastructure of processing in-house. The BPO also provides your company with steady multiyear predictable revenue streams. Our own award-winning product Revera, used at the center gives us that unique advantage of offering the most advanced solution for our clients while building strong entry barriers for the competition.

We have been systematically putting together the key elements of a winning company - excellent product offerings; good reference clients, responsive delivery teams, dynamic managers and focused marketing. We would continue to invest in the product offerings and new initiatives to provide us with the unique sustainable competitive advantage. The future of our business looks rich with possibilities and we would continue to strive hard to covert those possibilities into reality. The market size for BPO activities is estimated to be over $3 billion for the airline segment alone. With our IPR led initiative in this segment should give us sustainable advantage over our international competition.

I take this opportunity to appreciate our clients for trusting us to provide innovative solutions to them. I thank the Investors, Bankers, RBI, NASSCOM, and various government authorities for the constant encouragement and support throughout the year. I also like to thank the efforts of all the Kale Consultants colleagues for their total dedication and hard work. I am sure that with continued support and focused efforts we will build a future that all of us will be proud of.