Chairman's Communication to the Shareholders with Half-Year Results

November 15, 2003

Dear Shareholders,

I have great pleasure in enclosing the financials of your Company for the first half of the current year.

(Rs. in crores)

September 2003(6 mths) Unaudited

September 2002(6 mths) Unaudited

March 2003(12 months) Audited

Turnover

152

121

258

Expenditure

122

102

214

Profit before Tax

30

19

44

Net Profit

22

11

30

Net Worth

81

44

59

CGSL continues to perform well and Turnover has grown by 26% over corresponding period for the previous year.

On the business side, we have seen growth of volumes on both domestic and international processes. As you are aware, last year, we had strategically diversified into the International Call Center space. Our Global Contact Center facility in Mumbai has already grown to full capacity and we continue to see good business momentum especially on the retail processes / call centers.

As you know, the BPO industry needs continuous investments in infrastructure. These have to be designed to meet the specific needs of the industry with redundancies in power, telecom & other facilities. Your company continues to consolidate and upgrade its infrastructure both in Chennai and Mumbai to meet the expanding needs of its customers.

We look forward to your continuous support as we invest for the future.

With warm regards,


Sanjay Nayar
Chairman