A n n u a l R e p o r t N I I T L i m i t e d

Transcription

1 A u a l R e p o r t N I I T L i m i t e d

2

3 Our Visio Values, Motives ad Beliefs We, NIIT, believe that our growth is the derivative of the growth of each oe of us. It is the duty of each oe of us to espouse ad give active effect to the values, motives ad beliefs we state here NIIT is people We have positive regard for each oe of us We will foster career-buildig by creatig opportuities that demad learig, thikig ad iovatio from each oe of us. We expect each of us to cotribute to the process of orgaisatio buildig ad thus derive pride, loyalty ad emotioal owership. We recogise the ecessity of makig mistakes ad risk-takig whe it cotributes to the learig, iovatio ad growth of each oe of us. NIIT is quality ad value Each of us will esure that i ay associatio with society, society beefits substatially more tha: (a) What society gives to us. (b) What society would gai from ay other similar associatio We will meet ay ad every commitmet made to society irrespective of ay cost that may have to be icurred. We will esure our profitability, log-term growth ad fiacial stability, through the process of deliverig the best, beig see as the best ad beig the best. We will be fair i all our dealigs ad promote high stadards of busiess ethics. NIIT is a missio We will grow i the recogitio ad respect we commad, through pioeerig ad leadig i the effective deploymet of techology ad kow-how. We will seek to play a key-role i the directios ad deploymet of techology ad kow-how for the beefit of makid.

4 Soa Priters Pvt. Ltd. F-86/1 Okhla Ph. 1, New Delhi-20

5 Aual Report Cotets Page No. Corporate Iformatio 4 Fiacial History 5 NIIT at a Glace 6 Directors Report 8 Maagemet Discussio ad Aalysis 16 Corporate Goverace Report 30 Accouts of NIIT Limited 45 Statemet of Subsidiary Compaies 86 Cosolidated Accouts of NIIT Limited (Group) 87

6 Corporate Iformatio Board of Directors Rajedra S. Pawar Chairma ad Maagig Director Vijay K. Thadai Chief Executive Officer & Whole-time Director P. Rajedra Chief Operatig Officer & Whole-time Director Subroto Bhattacharya Director Suredra Sigh Director Shardul S. Shroff Director Sajay Khosla Director Compay Secretary & Legal Cousel Parvee Jai Group Chief Fiacial Officer Ashok Arora Chief Fiacial Officer Jiteder Mahaja Auditors Price Waterhouse Baks ICICI Bak Limited Idia Overseas Bak Stadard Chartered Bak Limited Citibak NA Wachovia Bak of Georgia Registered Office NIIT Limited C-125 Okhla Phase - I New Delhi , Idia (Ivestor Services): ivestors@iit.com Tel : Fax : Corporate Office NIIT House 85, Sector 32, Istitutioal Gurgao , Idia iit.webmaster@iit.com Tel : +91-(124) Fax : +91-(124) Registrar ad Share Trasfer Aget Alakit Assigmets Ltd. Uit - NIIT Limited Alakit House 2E/21, Jhadewala Ext. New Delhi , Idia Tel : , Fax : Website All trademarks ackowledged.

7 Fiacial History REVENUES & PROFITABILITY (Rs. M) For the Fiscal period eded 31-Mar Mar Mar Mar Mar moths 12 moths 12 moths 12 moths 12 moths ## Global Reveues (NIIT & its subsidiaries) 7,076 3,984 4,507 7,951 10,068 REVENUES OF NIIT LTD. 4,606 2,871 3,449 4,008 4,975 Operatig Expeses 3,773 2,497 2,874 3,325 4,112 Iterest & Fiace Expeses Depreciatio Profit Before Tax Profit After Tax Equity Divideds Earigs Per Share * - Basic Operatig Margi (%) Profit Before Tax / Reveues (%) Retur o Capital Employed ASSETS & LIABILITIES (Rs. M) As At 31-Mar Mar Mar Mar Mar-08 Sources of Fuds Equity Capital Reserves & Surplus 2,499 2,538 2,695 2,896 3,308 Loa Fuds ,195 1, Deferred Tax Liability - Total 2,906 3,231 4,083 4,434 4,453 Applicatios of Fuds Gross Block (icludes Capital Work i Progress) 1,745 1,878 2,215 2,630 2,870 Net Block (icludes Capital Work i Progress) ,158 1,208 Ivestmets 1,537 1,487 1,456 1,702 1,785 Deferred Tax Assets Curret Assets 1,620 1,811 2,758 2,846 2,996 Curret Liabilities ,105 1,349 1,631 Net Curret Assets ,653 1,497 1,365 Miscellaeous Expediture Total 2,906 3,231 4,083 4,434 4,453 Debt-Equity Ratio Curret Ratio Fixed Asset Turover Receivable Days Divided per share *** Book value per share * Share Price o Closig date (BSE) Market Capitalisatio (Rs. M) 6,957 ** 3,510 5,728 13,138 16,141 Notes: ## The Compay had spu off its Software Solutios busiess durig the period to a separate Compay, NIIT Techologies Limited * Based o Equity outstadig as o Balace Sheet date ** Based o the listed equity shares as o March 31, 2004 *** Based o the Face value of Rs. 2 per share

8 NIIT at a Glace Global Learig Solutios for Idividuals, Eterprises, Schools ad Colleges v Global studet stregth of 5 millio v Presece i 34 coutries worldwide v Largest Learig Cotet Developmet facility i the world For Idividuals Istructor-led Traiig, Computer-based Traiig ad e-learig programmes: v GNIIT for IT careers v NIIT Edgeieers, a rage of specialized programmes to provide cuttig-edge career for egieerig graduates ad IT professioals v NIIT GlobalNet+, specialised programmes o Networkig ad Ifrastructure Maagemet v Degrees i alliace with Uiversities v SWIFT for Iteret ad IT literacy v Board exam preparatio solutios v Bioiformatics ad Educatioal Techology programmes v Executive Maagemet Programmes for workig professioals, from premier busiess schools through NIIT Imperia, Cetre for Advaced Learig v Traiig programmes for fiacial services sector from NIIT Istitute of Fiace, Bakig & Isurace (IFBI) v Facilitate scholarship programmes through Bhavishya Jyoti Scholarship iitiative For Corporatios Eterprise Learig Solutios: v Istructor-led ad e-learig Traiig i IT ad Soft Skills v Advisory Services v Custom Cotet Developmet v Applicatio ad Process Rollout Traiig v Learer Maagemet Systems v Learer Support Services v A suite of catalogue products from Elemet K v Assessmet ad Testig services from NIIT Litmus v Eglish laguage testig ad assessmet services through ETS v Eglish laguage traiig from Evolv For Colleges ad Uiversities v Curriculum Desig v Custom Courseware Developmet v Learig Delivery, Hostig Services v Learer ad Faculty Support Services v Studet Admiistratio v I-campus IT Programmes For Govermet ad Private Schools v Itegrated solutios for computer ad computer-aided educatio for K-12 learers v MathLab - a iovative cocept to teach ad lear Mathematics i schools

9 Hole-i-the-Wall Educatio Ltd. (HiWEL) v Miimally Ivasive Educatio kiosks to provide free ad usupervised access to computers for childre belogig to ecoomically ad socially margialized populatios Alliaces with global IT majors: v Adobe, EMC, Cisco, Itel, Microsoft, Oracle, Su Microsystems, SumTotal, Thomso Prometric Assessed at SEI-CMM Level 5 Awards ad Ackowledgemets v NIIT (HiWEL) has bee coferred the coveted Digital Opportuity Award by World Iformatio Techology Services Alliace (WITSA) i 2008 v NIIT is raked amogst Idia s Most Respected Compaies i the IT sector i a survey doe by Busiess World magazie i 2007 v NIIT is raked amogst the Top 10 Busiess Brads sice 60 years of Idepedece, by The Week magazie v NIIT has bee rated as Top Traiig Compay 2007, by Dataquest v NIIT is raked amogst Idia s Top 50 Most Trusted Services Brads i a survey coducted by The Ecoomic Times Brad Equity i 2007 v NIIT is raked as Idia s Most Customer Resposive Educatioal Istitutio as per Avaya GlobalCoect Customer Resposiveess Awards i 2007 v NIIT was awarded the Idia Frachisor of the Year Award i 2007 by Frachisig Associatio of Idia v NIIT is raked amog the Top 20 Compaies i the Traiig Outsourcig Idustry i 2007, by TaiigOutsourcig.com v Iteratioal Data Corporatio has raked NIIT amog the Top 20 IT traiig compaies, worldwide ad the oly oe from Asia v NIIT has bee rated amogst Traiig Magazie s Top 125 elite compaies worldwide, for its iovative Traiig practices i the year 2007 v NIIT has featured amog the Superbrads of Idia ( ) by the Superbrads Coucil, US v Award for Excellece i Iovative HR practices 2005: Delhi Maagemet Associatio ad Watso Wyatt World v Chia Iformatio World, the Beijig-based IT weekly preseted NIIT with awards for Best Cotributio towards Vocatioal Educatio i Chia (2004) ad Best Curricular Structure i Chia i 2004 v Chia Computer Weekly, the Chogquig-based publicatio with a base of over oe millio readers, recogised NIIT as the Most Ifluetial Educatio Certificate Brad i Chia for 2004 ad the Best IT traiig curriculum for the same period v NIIT was awarded the ICTE Gold Medal by the Ho Chi Mih Computer Associatio. Global operatios i v Americas - Brazil, Cuba, El Salvador, Hoduras, Mexico, Nicaragua, Peru, USA v Europe - Kazakhsta, Serbia, UK v Asia - Bagladesh, Cambodia, Chia, Idia, Idoesia, Malaysia, Nepal, North Korea, Sri Laka, Turkey, Vietam v Middle East - Ira, Oma, Yeme v Africa - Botswaa, Ghaa, Libya, Nigeria, Seegal, Suda, South Africa, Zimbabwe v Australia/Oceaia - Fiji

10 Directors Report Dear NIIT Shareower, Your Directors take pleasure i presetig the 25th Aual Report alog with the audited statemet of accouts for the fiacial year eded March 31, Fiacial Results The highlights of your Compay s fiacial results for the fiacial year April 1, 2007 to March 31, 2008 are as follows: Particulars Net Sales (Icome from operatios) (Rs. M.) NIIT Limited Group NIIT Limited Cosolidated Stadaloe ,068 7,951 4,674 3,903 Other Icome Total Icome 10,141 8,012 4,975 4,008 Total Expediture 9,211 7,293 4,185 3,375 Profit before depreciatio ad taxes Depreciatio Net tax provisio (21) (10) Net Profit Basic EPS Diluted EPS Your Compay s cosolidated et reveues for the year uder review is Rs. 10,068 millio as agaist Rs. 7,951 millio i the previous year, registerig a growth of % ad Profit after tax (after associate profit) surge from Rs. 573 millio to Rs. 756 millio, reflectig a growth of % o year to year basis. Your Compay s total icome from operatios for the year uder review is Rs. 4,674 millio as agaist Rs. 3,903 millio for the previous year, while the et profit is Rs. 328 millio as agaist Rs. 329 millio i the previous year. Busiess Operatios Durig the year uder review, your Compay cotiued to grow, based o its stated strategy set which focused aroud: Accelerated growth; Improved profitability; ad Market leadership. Durig the year uder review, your Compay has lauched various ew programmes i partership with Adobe, Cisco, Su Microsystems, CompTIA, Microsoft, EMC ad others, ad also expaded its product portfolio, ifrastructure ad techology across the cetres. Your Compay has received orders for providig IT educatio i schools from the States of Bihar, Maharashtra, Tripura, Meghalaya ad Kerala, besides reewal of existig cotracts from the States of Adhra Pradesh ad Himachal Pradesh. The ew busiesses i.e. IFBI ad NIIT Imperia lauched i the previous year gaied mometum ad received excellet respose from the respective Idustry. Durig the year i additio to the ICICI bak, IFBI partered with HDFC Bak, Kotak Mahidra Bak, Yes Bak, ICICI Securities, ICICI Prudetial ad ICICI Lombard. NIIT Imperia, i additio to IIM Ahmedabad ad Kolkata tied-up with IMT-Ghaziabad, Idia Istitute of Foreig Trade ad IIM Luckow. NIIT s strategic alliace with Educatioal Testig Service (ETS) the world s leadig educatioal measuremet ad research orgaizatio, will allow NIIT Litmus to offer ETS s TOEIC (Test of Eglish for Iteratioal Commuicatio) i Idia. Your Compay maitaied its umber oe positio i IT traiig (as per Data Quest rakig) ad cotiued to figure i the Top 20 IT traiig compaies listig, as well as i the rakig of Top 20 Compaies i the Traiig Outsourcig Idustry o a worldwide assessmet. Future Plas Based o the successful trasitio from a IT ad IT eabled traiig compay to traiig i other domai areas, your Compay has also embarked o a pla to achieve leadership i global talet area. This would imply icreasig both depth ad coverage to service the growig eed of the services lead ecoomy. This would be achieved through buildig strategic alliaces with market leaders i each domai. It will further leverage the core competecies of the Compay i pedagogy, techology ad geographic reach. Your Compay will cotiue to stregthe its presece i each of its busiesses with a clear focused approach which would help icrease reveue growth, improve profitability as well as de-risk the Compay from ecoomic slowdows ad currecy fluctuatios. Bous Shares Durig the year uder review, your Compay has allotted 54,869,490 Equity Shares of Rs. 2/- each as Bous Shares i the ratio of oe ew Equity Share

11 Directors Report (Cotd.) for every two Equity Shares by way of Capitalizatio of Capital Redemptio Reserve ad Share Premium Reserve. Coversio of Foreig Currecy Covertible Bods Durig the year uder review, your Compay had received the coversio otice from the Foreig Currecy Covertible Bods holder (i.e. Itel Capital (Cayma) Corporatio) ad allotted 2,188,000 Equity Shares of Rs. 10 each to the Bods holder. Share Capital Durig the year uder review, the paid-up capital of your Compay stads icreased from Rs. 197,552,060 to Rs. 329,405,726 due to corporate beefits/allotmet of Equity Shares such as bous shares, FCCB coversio ad ESOP allotmet. The Compay has also subdivided oe Equity Share of Rs. 10 (Rs. te) each ito five Equity Shares of Rs. 2 (Rs two) each. Divided I view of the Compay s profitable performace, your Directors are pleased to recommed, for approval of the members at the forthcomig Aual Geeral Meetig, divided of Rs per share (equivalet to the divided declared i the previous fiacial year). Trasfer to Reserves I accordace with statutory provisios, your Compay has trasferred a sum of Rs millio to the Geeral Reserves. Subsidiaries Durig the year uder review, your Compay had acquired maagemet cotrol i Evolv Services Limited (formally kow as Evolv Maagemet Services Private Limited), a leadig provider of Eglish laguage ad commuicatio traiig ad therefore, it become aother subsidiary compay. Further, NIIT Chia (Shaghai) Limited, a step dow subsidiary compay i partership/associatio with a compay i Wuxi has icorporated a ew overseas subsidiary compay i the ame of NIIT Wuxi Service Outsourcig Traiig School (NIIT-Wuxi), to trai large umber of uiversity graduates i WND cetre ad equip them with relevat IT skills to get them jobs i compaies that are/will set up i WND. At the ed of the year uder review, your Compay has 21 subsidiary compaies spread across the globe. Post closure of the fiacial year uder review, your Compay has also icorporated aother subsidiary compay by the ame of NIIT Istitute of Process Excellece Limited. This ew compay will be egaged i the busiess of impartig istructor led ad/or iformatio techology assisted traiig ad distace educatio for ehacig performace/employmet i the BPO ad ITES idustry. Your Compay had pursuat to the provisios of Sectio 212(8) of the Compaies Act, 1956 (the Act), filed applicatios with the Miistry of Corporate Affairs seekig exemptio from attachig a copy of the Balace Sheet, Profit ad Loss Accout, Directors Report ad Auditors Report of the subsidiary compaies ad other documets required to be attached uder Sectio 212(1) of the Act. The ecessary approvals from the Miistry of Corporate Affairs were received vide its letters dated February 29, 2008 ad Jue 4, Accordigly, the said documets are ot beig attached with the Aual Report of your Compay. A gist of the fiacial performace of the subsidiary compaies i the format prescribed by the Miistry of Corporate Affairs is cotaied elsewhere i the Aual Report. The Accouts of the subsidiary compaies are ope for ispectio for ay Member/Ivestor at the registered office of your Compay. The Compay will make available these documets/details upo request to ay Member/Ivestor iterested i obtaiig the same. Corporate Goverace Your Compay s philosophy o Corporate Goverace evisages the attaimet of the highest levels of trasparecy, accoutability ad equity i all facets of its operatios, i all iteractios with its Stakeholders icludig Shareholders, NIITias, Leders ad Regulatory Authorities. I order to ehace customer satisfactio ad stakeholder value, your Compay cotiues to bechmark its corporate goverace practices with the best i the world i lie with iteratioal orms. Your Compay has complied with all the requiremets relatig to Corporate Goverace as stipulated i Clause 49 of the Listig Agreemet. The report of the Directors o Corporate Goverace is give as a separate sectio titled Corporate Goverace Report, which forms part of this Aual Report. The Auditors Certificate cofirmig the compliace to the coditios of the Corporate Goverace stipulated i Clause 49 of the Listig Agreemet is aexed to the Corporate Goverace Report. 9

12 Directors Report (Cotd.) Maagemet Discussio ad Aalysis Report The Maagemet Discussio ad Aalysis Report as required uder the Listig Agreemet is aexed ad forms part of the Directors report. Directors I accordace with the provisios of the Compaies Act, 1956 ad Articles 64, 65 ad 66 of the Articles of Associatio of your Compay, Mr. Rajedra S. Pawar ad Mr. P Rajedra, Directors of your Compay, retire by rotatio at the forthcomig Aual Geeral Meetig ad beig eligible, offer themselves for reappoitmet. Directors resposibility statemet As required uder Sectio 217 (2AA) of the Compaies Act, 1956, the Board of Directors of your Compay hereby states ad cofirms: That i preparatio of Aual Accouts for the fiacial year, applicable Accoutig Stadards have bee followed alog with the proper explaatios relatig to material departures; That they have selected the accoutig policies described i the otes to accouts, which have bee cosistetly applied, except where otherwise stated ad made judgmets ad estimates that are reasoable ad prudet so as to give a true ad fair view of the state of affairs of the Compay as at March 31, 2008 ad of the profit or loss of the Compay for that year; That they have take proper ad sufficiet care for the maiteace of adequate accoutig records i accordace with the provisios of the Compaies Act, 1956, for safeguardig the assets of the Compay ad for prevetig ad detectig fraud ad other irregularities; That the Aual Accouts have bee prepared o the historical cost covetio, as a goig cocer basis ad o accrual basis. Iformatio relatig to Coservatio of Eergy, Techology Absorptio, Research ad Developmet ad Exports, Foreig Exchage Earigs ad Outgo ad other iformatio formig part of the Directors Report i terms of Sectio 217(1)(e) of the Compaies Act, 1956 ad the Rules made thereuder. a) Coservatio of eergy The operatios of your Compay are low eergy itesive. However, appropriate measures, wherever possible, have bee iitiated to coserve eergy. Your Compay is cotiuously evaluatig ew techologies ad ivests i them to make its ifrastructure more eergy efficiet. b) Techology absorptio I today s world, perpetually evolvig techologies ad icreasig competitio defie the global market space. I order to maitai its positio of leadership, your Compay has cotiuously ad successfully developed state-of-the-art methods for absorbig, adaptig ad effectively deployig ew techologies. c) Research ad Developmet The Compay believes that techological obsolescece is a reality. Oly progressive research ad developmet will help us to measure up to future challeges ad opportuities. We ivest ad ecourage cotiuous iovatio. Durig the year uder review, expediture o research ad developmet is ot sigificat i relatio to the ature ad size of operatios of your Compay. d) Exports, foreig exchage earigs ad outgo The details of foreig exchage earigs ad outgo are metioed i Notes Nos. 11, 12 ad 13 cotaied i the Notes to Accouts (Schedule No. 20) formig part of the Balace Sheet ad Profit ad Loss Accout for the fiacial year eded March 31, Public Deposits Your Compay has ot accepted ay fixed deposits from public ad, as such, o amout of pricipal or iterest was outstadig o the date of the balace sheet. Particulars of Employees Particulars of employees as required uder Sectio 217 (2A) of the Compaies Act, 1956 read with the Compaies (Particulars of Employees) Rules, 1975 are give i Aexure-I ad form part of this report. Auditors M/s. Price Waterhouse, Chartered Accoutats, the Auditors of your Compay, retire at the forthcomig Aual Geeral Meetig ad have cofirmed their eligibility ad willigess to accept office, if reappoited. 10

13 Directors Report (Cotd.) Huma resources ad Employees Stock Optio Scheme NIITias are the key resource for your Compay. Your Compay has bee able to create ad cotiuously improve a favourable work eviromet that ecourages ovelty ad meritocracy at all levels. Employees relatios remaied cordial at all Compay s locatios. The Directors take this opportuity to record their appreciatio for the outstadig cotributio of all NIITias. Your Compay had durig the fiacial year lauched the NIIT Employee Stock Optio Pla 2005 (ESOP-2005) with the objective of attractig ad motivatig employees by rewardig performace ad retaiig the best talet. The aim was to develop a sese of owership amog the employees withi the orgaisatio ad to alig your Compay s stock optio scheme with the best practices i the Idustry. Durig the year uder review, the Compesatio/Remueratio Committee grated 862,500 Stock Optios (Grat- III) (after adjustig corporate actio of split ad bous) to eligible employees of your Compay uder ESOP The particulars of the Optios grated, vested, exercised ad allotted uder the ESOP-2005 as required to be disclosed uder SEBI (Employee Stock Optio Scheme ad Employee Stock Purchase Scheme) Guidelies, 1999, are appeded as Aexure-II ad form part of this report. Ackowledgemets Your Directors take this opportuity to thaks all ivestors, cliets, licesees, techology parters, vedors, fiacial istitutios, baks, regulatory ad govermetal authorities, media ad stock exchages for their cotiued support durig the year uder review. Place : New Delhi Date : Jue 11, 2008 For ad o behalf of the Board Rajedra S Pawar Chairma & Maagig Director 11

14 Directors Report (Cotd.) Aexure-I to the Directors Report Iformatio as per Sectio 217(2A) of the Compaies Act, 1956 read with Compaies (Particulars of Employees) Rules, 1975 ad formig part of the Directors Report for the year eded March 31, A. Employed throughout the year ad i receipt of remueratio ot less tha Rs. 24,00,000 for the year Name Age Qualificatio Experiece Rajedra Sigh Pawar Desigatio Gross Remueratio Date of Joiig Previous Employmet & Positio held (Yrs.) (Yrs.) 57 B. Tech. 36 Chairma & Maagig Director 12,413,628 2-Dec-81 HCL Ltd, Corp. Plaig Maager Vijay Kumar Thadai 57 B. Tech. 36 Chief Executive Officer & Whole-time 17,471,008 1-Jul-03 Keltro Ltd, Brach Maager Director P Rajedra 55 BE 34 Chief Operatig Officer & Whole-time 9,212,186 1-Sep-82 Keltro Ltd, Residet Maager Director Ashok Kumar Arora 53 B.Com 32 Group Chief Fiacial Officer 4,056,341 1-Ju-04 NIIT Techologies Limited, CFO L Balasubramaia 54 BE 34 Presidet, K12 5,232, Nov-88 DCM Data Products, Regioal Systems Egieerig Maager Tulika Siha 42 BA 21 Seior Vice Presidet - GIL, Idia East & South 3,634,654 2-May-89 East Idia Pharmaceuticals, Supervisor Auradha S Boxwala 43 BSC, Diploma i Computer 19 Vice Presidet-Global Sales Eablemet &Idia Sales, GIL 3,115,111 1-Jul-89 First Employmet Dr. Smarajit Dey 51 BE ME PHD 29 Presidet 6,671,879 1-Apr-07 NIIT Istitute of Iformatio Techology, Professor & Dea Udai Sigh 40 BE, ME 19 Executive Vice Presidet - NIIT Imperia 5,675, Mar-05 NIIT Olie Learig Limited, Whole-time Director & COO Chockaligam Muruga 41 MCA 18 Seior Vice Presidet-Marketig & Product Maagemet, GIL 4,432,631 1-Oct-03 NIIT Olie Learig Limited, Busiess Head Suil Sirohi 41 BSC, MSC, 17 Vice Presidet-Iformatio Resources 2,899,632 5-Aug-91 Europcar Limited, Statio Maager DIP IN MGMT Nicholas George 47 MBA 23 Seior Vice Presidet 2,620,271 9-Aug-06 NIIT Istitute of Iformatio Techology, Seior Vice Presidet Akhlesh Agarwal 42 ME 19 Geeral Maager 2,548,995 9-Jul-94 TCS Limited, Sr System Aalyst Vikas Baijal 40 BSC, MSW 18 Vice Presidet-Huma Resources 2,758,868 4-Aug-97 HFCL Dacom Ifochek Ltd, Maager-HRD Ashish Basu 48 M.Sc., MBA 25 Presidet, KSB 7,050, Ju-05 NIIT USA Ic., Presidet KSB Global Solutios Ajai Maohar Lal 53 BSC, MSC 32 Vice Presidet-Chael Maagemet, 3,803, Ja-00 DTE Ge Mech Forces, Director GIL Shampi Vekatesh 42 B.Com 21 Seior Vice Presidet - GIL, Idia North 3,992,724 1-Oct-03 NIIT Olie Learig Limited, Head Operatios Jiteder Mahaja 44 B.Com., CA, CS Gaesh Krishamurthy 20 Chief Fiacial Officer 4,146, Mar-02 Electrolux Kelviator Ltd, Geeral Maager - Corporate Accouts 42 B.Com 18 Vice Presidet 3,518,701 1-Apr-02 Trigy Techologies Ic., Project Maager Cheta Khuller 37 BA, MBA 14 Geeral Maager-Fiace 2,531,526 2-Sep-02 Ballarpur Idus. Ltd, Maager-Fiace Sajay Mal 45 B.Com 24 Seior Vice Presidet Fiace 2,867,085 8-Ja-03 A Arora & Associates, Seior Associate Amit Roy 57 BSC, FCA 32 Seior Vice Presidet - Iteral Audit 3,199,026 3-May-04 Titagarh Idustries Limited, Executive Director & Assurace Maish Moha 41 BE 17 Vice Presidet 2,723, Sep-04 Polaris Software Lab Limited, Vice Presidet Raghava Govida 51 B.Sc., MMS 28 Presidet-Idividual Learig Busiess 12,280,627 1-Ju-05 Igram Micro Idia, Maagig Director Ajay Moha Goel 45 BE, MBA 24 Seior Vice Presidet-Corporate Developmet 3,344, Ja-07 Max Health Staff Iteratioal Limited, CEO Satosh Nair 42 MBA 18 Seior Vice Presidet-Strategic Marketig 4,532, Mar-07 Mahidra Holidays & Resort Idia Ltd., Head Marketig 12

15 Directors Report (Cotd.) B. Employed for part of the year ad i receipt of remueratio ot less tha Rs. 2,00,000 per moth Name Age Qualificatio Experiece Desigatio Gross Remueratio (Yrs.) (Yrs.) Date of Joiig Rajeev Katyal 48 BE MBA 26 Seior Vice Presidet ELS 3,253,382 2-May-83 First Employmet Bhagavatheeswara Krisha Previous Employmet & Positio held 42 BCOM 22 Vice Presidet 2,663,302 1-Apr-02 NIIT Middle East EC Subash Thakacha 38 B. Tech 16 Geeral Maager 457,602 9-Sep-91 First Employmet Sarveshwar Srivastava 48 MSC 21 Vice Presidet 2,216, Feb-03 Hiperworld Cybertech, Director (Tech) Aurag Gupta 39 BE, MBA 16 Vice Presidet - GIL, Idia West& Middle East & North Africa 1,828,391 1-May-03 Aptech Limited, Marketig Head-COE Kapil Chaaa 35 MBA 12 Regioal Maager Africa 475, Mar-05 Coco Cola, Marketig Maager Sajay Bhatagar 46 BSC,MBA,DIP IN COMP 24 Vice Presidet 1,554, Ja-07 Pati Computers, Vice Presidet-Bakig S/w Delivery Ashutosh Chadha 39 CA, CS 14 Geeral Maager - Accouts 3,166,964 9-Apr-07 Wipro e-periperals, CFO & CS Asim Kumar Talukdar 52 BSC, MBA 30 Seior Vice Presidet - Huma Resources 3,763, Apr-07 HT Media Limited, Vice Presidet HRD & Admi Amitabh Lahiri 50 BE 26 Seior Vice Presidet 2,928,138 6-Jul-07 Gepact, Cosultat - Six Sigma Practice Vipul Rastogi 38 BE, MBA 16 Vice Presidet - Eterprise Learig Solutios, Idia 1,389, Dec-07 Alcoa Idia Pvt Ltd., MD NOTES : 1. The gross remueratio show above comprises salary, allowaces, icetives, moetary value of perquisites as per Icome Tax Rules ad Compay s cotributio to Providet Fud ad Superauatio Fud. 2. The gross remueratio of employees do ot iclude provisio for gratuity ad provisio for leave ecashmet. 3. Noe of the above employees are related to ay Director of the Compay. 4. Noe of the employees holds 2% or more of the paid-up Equity Share Capital of the Compay. 5. The ature of Employmet i all above cases is cotractual. 13

16 Directors Report (Cotd.) Aexure-II to Directors Report w.r.t. ESOP 2005 Uder SEBI (Employee Stock Optio Scheme & Employee Stock Purchase Scheme) Guidelies, 1999 (a) Optios grated Grat I 555,350* Grat II 46,200* Grat III 115,000* (Post split ad bous - 862,500) (b) Pricig formula Total 716,550* *The optios were grated prior to the issuace of bous shares ad the split i the face value of the share from Rs. 10 per share to Rs. 2 per share At a price ot less tha the the existig face value of the share of the Compay: Grat Price Market Price # Grat I * Grat II ** Grat III ** # Closig price o the Natioal Stock Exchage * at approx 23.45% discout to market price ** at market price (Note : Price is pre split ad bous) (c) Optios vested No of shares Pre bous & split Post bous & split Grat I 519,050 - Grat II 26,350 - Grat III - - Total 545,400 - (d) Optios exercised No of shares Pre bous & split Post bous & split Grat I 413,357 94,393 Grat II 21,800 - Grat III - - Total 435,157 94,393 (e) The total umber of shares arisig as a result of No of shares exercise of optio Pre bous & split Post bous & split Grat I 413,357 94,393 Grat II 21,800 - Grat III - - Total 435,157 94,393 (f) Optios lapsed (icludes optios ot vested No of shares based o proformace parameter) Pre bous & split Post bous & split Grat I 40,300 1,125 Grat II 19,850 - Grat III - 112,500 Total 60, ,625 (g) Variatio of terms of optios Nil (h) Moey realized by exercise of optios Rs. 81,836,292/- (i) Total umber of optios i force 1,451,305 (post bous ad split) 14

17 Directors Report (Cotd.) (j) Employee wise details of optios grated to: (i) seior maagerial persoel (ii) ay other employee who receives a grat i ay oe year of optio amoutig to 5% or more of optio grated durig that year. (iii) idetified employees who were grated optios durig ay oe year, equal to or exceedig 1% of the issued capital (excludig outstadig warrats ad coversios) of the compay at the time of grat (k) Diluted Earigs Per Share (EPS) pursuat to issue of shares o exercise of optio calculated i accordace with [Accoutig Stadard(AS) 20 Earigs Per Share (l) Where the compay has calculated the employee compesatio cost usig the itrisic value of the stock optios, the differece betwee the employee compesatio cost so computed ad the employee compesatio cost that shall have bee recogized if it had used the fair value of the optios, shall be disclosed. The impact of this differece o profits ad o EPS of the compay shall also be disclosed (m) Weighted-average exercise prices ad weighted-average fair values of optios shall be disclosed separately for optios whose exercise price either equals or exceeds or is less tha the market price of the stock Summary^ of optios grated to seior maagerial persoel* are as uder: No. of employees covered: 27 No. of optios grated to such persoel: 238,450 (Pre bous ad split) ^Oly summary give because of sesitive ature of iformatio *icludes directors ad employees who are oe level below the Board of Directors. Nil Nil Rs Please refer to Notes Nos. 15 ad 34 cotaied i the Notes to Accouts (Schedule No. 20) formig part of the Balace Sheet as at 31 March, 2008 ad Profit ad Loss Accout for the year eded o that date. Weighted average exercise price* Weighted average fair value* Grat I Grat II Grat III Note: * the prices are adjusted for the bous ad split () A descriptio of the method ad sigificat assumptios used durig the year to estimate the fair values of optios, icludig the followig weighted-average iformatio: Grat I Grat II Grat III (i) risk-free iterest rate 7% 7% 7.93% (ii) expected life 2.5 years 2.5 years 2.5 years (iii) expected volatility 14% 14% 45.47% (iv) expected divideds, ad Not cosidered Not cosidered 2.79% (v) the price of the uderlyig share i market at the time of optio grat Rs Rs Rs Note: The followig evet occurred subsequet to the closuer of fiacial year has ot bee cosidered i the above figures : ,763 Optios (post split ad bous) vested uder Grat III ,237 Optios (post split ad bous) lapsed uder Grat III due to o meetig of performace parameters ,500 ad 15,000 Optios (post split ad bous) lapsed uder Grat I ad Grat III respectively 15

18 Maagemet Discussio ad Aalysis Leadership I Global Talet Developmet Durig the fiacial year , NIIT Limited ( NIIT or the Compay ) made major strides i its trasformatio from a IT & IT eabled traiig Compay to a Global Talet Developmet Corporatio. Durig the year, the Compay cotiued to grow, based o its stated strategy set which focused aroud: Accelerated growth Improved profitability Market leadership i chose areas based o the foudatios of strog chael, techology ad higher educatio parterships ad operatig strategies which icluded talet trasformatio, customer acquisitio ad improved ifrastructure. Eviromet The Global talet shortage is a well articulated subject. The chages i the work force dyamics, both from the demad ad supply side, are chagig the skill set requiremets. There are three clear treds which are cotributig to this chage: Icreased Globalizatio resultig i icreased work mobility with work movig across coutries ad geographies. Chagig demographics especially i the developed world. A ageig populatio is chagig the demographic balace with workig people movig from developig coutries to fill the gap. Shift towards a Services led ecoomy compared to the Idustrial ecoomy, which requires a ew ad differet set of skills. Idia is poised to be able to take advatage of the Demographic Divided give its youg populatio. As per a study coducted by the Bosto Cosultig Group (BCG), by 2020, Idia would have a surplus of Parterships A key elemet of our growth The Demographic Divided millio people i the workig age group while the rest of the world would be short by 56 millio i this age group. However, to leverage this opportuity, Idia has to ivest i buildig a strog educatio ifrastructure ad accelerate the process of skill developmet, both i terms of quality ad quatity. Today, despite the demographic divided early all sectors of Idia ecoomy are facig a talet shortage. With the Idia ecoomy growig at 8%+ ad the GDP mix chagig towards the services sector, lack of 16

19 Maagemet Discussio ad Aalysis (Cotd.) skilled workforce is becomig the most importat barrier to growth for Idia compaies. This existig skills shortage coupled with the issues of relevace, reach, iclusio ad quality of educatio have huge ramificatios for the Idia ecoomy. The supply chai for quality huma resources shows a icreasig populatio o oe side with a educatio system o the other side tryig to cope with both quality ad quatity issues. Low erolmets ad high drop out rates all through the chai, results i a very iadequate supply to the orgaized workforce. busiess offerigs i Idia, Chia, Other Developig Coutries, USA ad Europe. NIIT services the full labour supply chai with its offerigs: Compay Performace I FY 08, the Compay experieced a robust reveue growth ad profitability improvemet leadig to improved market positio. Idia: Skill Supply Chai The Govermet has bee very cogizat of this problem ad has icreased the outlay for educatio to Rs. 3,000 Billio i the 11th Five Year Pla. I this eviromet, with the successful lauch of ew busiesses, NIIT is well positioed to build a leadership positio i Global Talet Developmet. Idividuals Global Opportuity Set Source: I Watch Survey, 2007 Globalizatio Demographics Services Led Ecoomy Ageig Populatio Multi-Sector Work Growth Mobility Corporates 12, , 000 8, 000 6, 000 4, 000 2, R e ve u e 10, 068 7, 951 6, 749 F Y 06 F Y07 F Y08 E B I T D A F Y0 6 F Y0 7 F Y0 8 Schools Govermet Multiple Delivery Formats Distributed Delivery Global Skills Process Pedagogy Techology Reach NIIT s Core Competecies P A T NIIT is focused o improvig academic performace, employability ad workforce productivity through its F Y 06 F Y 07 F Y 08 17

20 Maagemet Discussio ad Aalysis (Cotd.) Over the last 3 years, the Compay has grow: Reveues at a CAGR of 22 per cet EBITDA clocked a CAGR of 31 per cet. Net profit up 37 per cet Durig the year, the ew busiess iitiatives viz. IFBI & Imperia (lauched i FY 07) broke eve, a quarter ahead of estimates. The Compay s performace is reflected i the chart below: Rs. millio FY 08 FY 07 Chage System wide Reveues 14,016 11,163 26% Net Reveues 10,068 7,951 27% EBITDA (earigs before 1, % iterest, taxes depreciatio ad amortizatio) Depreciatio & % Amortizatio Operatioal PAT % Share of profits from % associates / attributable to miority Profit After Tax % Basic EPS * % * Based o curret shares outstadig (post bous & split) The Compay saw a marked improvemet i its et reveue ad profitability durig the year with Net Reveues at Rs. 10,068 millio (a 27 percet growth) EBITDA at Rs. 1,036 millio (a 34 percet growth) Operatioal PAT at Rs. 422 millio (a 74 percet growth) Durig the review period, the Compay offered the FY 07 - Net Reveues Corporate 41% Corporate 39% FY 07 - System wide reveues Schools 7% FMT 1% FY 08 - System wide reveues Schools 7% FMT 3% Idividual (IT) 51% Idividual (IT) 51% followig learig solutios: Idividual o IT: the Compay provided IT traiig to idividuals iterested i pursuig a IT career or upgradig their IT skills through parterships with techology compaies. These programmes were provided across Idia, Chia ad other developig coutries o Fiace & Maagemet Traiig: the Compay offered traiig programmes to idividuals i bakig, isurace, fiace ad FY 08 - Net Reveues Corporate 57% FMT 1% Idividual (IT) 31% Corporate 55% FMT 3% Idividual (IT) 32% Schools 11% Schools 10% 18

21 Maagemet Discussio ad Aalysis (Cotd.) maagemet. These programmes were offered through iovative busiess models ivolvig parterships with leadig baks, isurace compaies as well as leadig istitutes of maagemet. Schools: the Compay catered to the requiremets of Govermet ad private schools for IT educatio, Multimedia educatio for all subjects ad teachers traiig. Corporate: the Compay provided ed to ed solutios from developmet to deploymet of traiig curriculum to Govermet ad corporate sector. Product offerigs icluded Learig products, Traiig delivery & admiistratio ad Custom projects. Chia 10% Idividual Learig Solutios IT Learig FY 07 - Geowise reveue mix USA/Eur 40% ROW 9% FY 08 - Geowise reveue mix Chia 8% USA/Eur 38% ROW 8% Idia 41% Idia 46% Busiess overview Idia I Idia, the Idividual Learig Solutios cotiued to focus o providig skill sets to people for the IT & ITES idustry. Icreased hirig by the IT-ITES sector, as well as the requiremet for ewer skill sets ad the rapid chages i techology, cotributed to the growth i this busiess. The kowledge professioals i the Idia IT- BPO sector is estimated to have icreased from 1.62 millio i FY 07 to 2.00 millio i FY 08 a icrease of 23 per cet. NIIT s reveue growth of 31 per cet i this busiess correlates very well with the above icrease. As part of the growth strategy, the Compay focused o the followig iitiatives durig the year: a. New techology parterships durig the year, the Compay lauched ew traiig programmes i partership with i. Adobe Web, Mobile ad Iteractive Multimedia ii. Cisco Networkig & Ifrastructure Maagemet iii. CompTIA - Networkig & Ifrastructure Maagemet iv. EMC - Storage Maagemet Techologies v. Microsoft - embeddig Microsoft certificatio i the GNIIT curriculum vi. Su Microsystems - embeddig Su certificatio i the GNIIT curriculum b. Expaded portfolio with the lauch of i. GlobalNet+: Traiig for Ifrastructure Maagemet space ii. Web desig & multimedia: Web 2.0, Flash, Dreamweaver, Cold Fusio, Flex iii. Operatig system: Solaris 10, Widows Vista c. NITAT For the 4th year ruig, the Compay orgaized the Natioal IT Aptitude Test (NITAT). The popularity of the same was evidet with a 42 percet icrease over the previous year i the applicatios for the test The Compay cotiued to ivest i the busiess by: 19

22 Maagemet Discussio ad Aalysis (Cotd.) a. Icreasig seat capacity by 15 percet YoY b. Upgradig ifrastructure ad techology across the cetres Erolmets registered a growth of 25 percet to cross 389,000. The growth i erolmets resulted i a order itake of Rs. 3,915 millio (+27 percet YoY) ad a closig order book of Rs. 1,586 millio of which 68 percet is executable i the ext 12 moths. Chia Durig the year, the Compay ramped up its Chia NIIT Cetre i Chia operatios by opeig ew cetres. The total umber of cetres i Chia stood at 171 as of March 2008 across 25 provices while erolmets for the year recorded a 35 per cet icrease YoY. The Compay also started operatios at a ultra moder cetre i Shaghai as well as a cetre i the Wuxi Software Park. Other Developig coutries Durig the year, the Compay cotiued to focus o selected high potetial geographies. As a step i this directio, the Compay stregtheed its presece i NIIT Cetre i Botswaa Botswaa, Malaysia, Nigeria, South Africa, Thailad ad Vietam. I FY 07, the Compay had set up a cetre of excellece i Cuba. Durig FY 08, the Compay opeed similar cetres i El Salvador, Nicaragua ad Hoduras uder the aegis of the Miistry of Exteral Affairs, Govermet of Idia. The rollout of the Compay s tie up with UK Ope Uiversity to offer the Uiversity s B.Sc. (Hos) i Computig ad its Practice at the NIIT ceters i six coutries cotiued as per plas ad admissios have commeced i all selected coutries viz. Botswaa, Ghaa, Idoesia, Nigeria, Sri Laka ad Vietam. Fiace & Maagemet Traiig (FMT) Durig the year, the Compay stregtheed its presece i the talet developmet space with its two busiesses amely IFBI & Imperia gaiig mometum durig the year. IFBI Classrooom IFBI Graduatio Ceremoy NIIT s foray ito traiig requiremets for BFSI professioals i the previous year, gaied further groud durig the year with ew programmes for isurace ad fiacial plaig. The programmes have gaied wide acceptace with a umber of Baks ad Fiacial Istitutios icludig ICICI Prudetial Life Isurace, ICICI Lombard, ICICI Securities, HDFC Bak, Kotak Mahidra Bak ad Yes Bak tyig up with IFBI for traied professioals. IFBI has also tied up with Ifosys to provide traiig o its Fiacle (Bakig software) platform. Durig the year, 20

23 Maagemet Discussio ad Aalysis (Cotd.) over 3,000 studets graduated from IFBI ad were placed while aother 1,200 are completig their traiig i early FY 09 I additio, IFBI coducted traiig programmes for Corporates ad Baks. The Compay s tie ups with leadig busiess schools i Idia to provide quality maagemet educatio to the masses commeced i FY 07 with tie ups Campus Workshop at IIM Idore with Idia Istitutes of Maagemet (IIM) Ahmedabad, Kolkata ad Idore. Durig the curret year, the Compay etered ito ew tie ups with IMT- Ghaziabad, Idia Campus Workshop at IIM Kolkata Istitute of Foreig Trade ad IIM Luckow thereby ehacig the product offerigs. I FY 08, the Compay also lauched Maagemet Developmet Programme as well as the Leadership Series. I FY 08, the total umber of ceters offerig the IFBI ad Imperia courses icreased from 6 to 22 ad the total studets traied crossed 10,000. The order itake for the year was Rs. 341 millio while the pedig order book was Rs.78 millio which is all executable over the ext 12 moths. Fiacials of Idividual Learig Solutios (ILS) Rs. millio FY 08 FY 07 Chage System wide reveues 7,496 5,755 30% Net Reveues 3,548 2,543 40% EBITDA % OM% 18% 13% 452 bps Fiacials of ILS - IT Traiig Rs. millio FY 08 FY 07 Chage System wide reveues 7,119 5,655 26% Net Reveues 3,241 2,470 31% EBITDA % OM% 21% 18% 291 bps The icrease i capacity utilizatio, from 54 percet to 55 percet, coupled with improved leverage of the fixed costs, saw the EBITDA grow faster at 53 percet (a jump of 291 bps). Fiacials of ILS - FMT Rs. millio FY 08 FY 07 Chage System wide reveues % Net Reveues % EBITDA (26) (91) School Learig Solutios The School Learig Solutios provided IT ad IT eabled traiig for the private ad govermet owed schools i Idia. Durig the year, the Compay saw reewed iterest by various state govermets towards providig IT educatio i schools. Public-private parterships i educatio gaied wider acceptace. Moreover, the ehaced allocatio of fuds by the Plaig Commissio, the Cetral & State govermets has led to cosiderable activity i this space. Cosequetly there has bee a rise i the umber of states tederig for IT ad IT eabled educatio i schools. Of the total 5,965,000 Studets 250,000 Teachers 42,000 PCs 14,000 Hrs of Cotet 9,151 Istructors 7,700 Schools NIIT has the widest reach i the market 21

24 Maagemet Discussio ad Aalysis (Cotd.) schools tedered durig the year, the Compay has received orders from the states of Bihar, Maharashtra, Tripura ad Meghalaya, besides reewal cotracts from the states of Adhra Pradesh ad Himachal Pradesh. Cosequetly, the total umber of schools serviced by the Compay has reached 7,700. Durig the year, the Compay etered ito a strategic alliace with US based NComputig, Ic., the leadig provider of virtual PC solutios, to eable thousads of schools across Idia to brig affordable computer educatio to its studets. The alliace will help reduce the cost of computig i schools by 50 per cet from curret levels, thus eablig schools across Idia s cities, tows ad villages to offer computer educatio to its studets at a reduced cost. I additio to the above, the Compay lauched its eguru school solutio offerig ad cosolidated its programmes offerigs i o IT related subjects i lie with NCERT s Natioal Curriculum framework. The Compay has tied up with Key Curriculum Press for its Mathlab product. The ew product lauches have received ecouragig respose from the o govermet schools ad this would cotiue to be a focus area goig forward. The o-govermet busiess ow cotributes 28 percet to the total istitutioal learig solutios reveues, as compared to 29 percet i FY 07. Durig the year, the Compay recorded a order itake of Rs. 1,314 millio. At the ed of the year, the Order book for this busiess stood at Rs. 1,319 millio. Of this, 42 percet is executable durig FY 09. Fiacials for School Learig Solutios Rs. millio FY 08 FY 07 Chage Net Reveues 1, % EBITDA % OM% 13% 12% 134 bps Corporate Learig Solutios Durig FY 08, the focus of the Corporate learig solutios busiess was to provide the combied offerigs of NIIT ad Elemet K to its customer base. Largest e-learig Cotet Library 12,000 Hrs of e-learig 20,000+ Traiig Days per Year 150+ Uiversity Courses Perso Years of Experiece prit e-learig 285,000+ Studet 20,000 Hours catalog library Learig Hours of ILT Professioals: Over 2000 Largest Cotet Customers Developmet globally Facility i the world 29, , ,000 Metorig Hours Hosted Users Trasactios/mo The itegratio of Elemet K cotiued well o track ad there were substatial wis i this space. The combied offerigs ow iclude: Learig products Traiig delivery & admiistratio Custom projects The Idia corporate traiig market is a high growth market ad durig the year, the Compay icreased its focus o this market. Durig the year, the Learig product market saw cosolidatio ad takig advatage of this, Elemet K icreased its product portfolio ad ivested i its sales force. I Learig Products, the Compay witessed positive tractio durig the year. I Custom projects where there is discretioary spedig ivolved, loger sales cycles affected reveues while i Traiig Delivery ad Admiistratio space the Compay added ew cliets. I Jauary 2008, the Compay acquired a cotrollig stake i Evolv Services Limited, a leadig provider of Eglish laguage ad commuicatio traiig. This acquisitio alog with NIIT s strategic alliace with Educatioal Testig Service USA (ETS), the world s leadig educatioal measuremet ad research orgaizatio would allow NIIT to address the eed for Eglish & Professioal skills for corporates ad idividuals i Idia. 22

25 Maagemet Discussio ad Aalysis (Cotd.) Durig the year, the busiess clocked a order itake of USD 151 millio, up from USD 113 millio i FY 07. The closig order book stood at USD 74 millio. Of this, 62 percet is executable durig FY 09. Fiacials for Corporate Learig Solutios Rs. millio FY 08 FY 07 Chage Net Reveues 5,508 4,560 21% EBITDA % OM% 5% 8% -295 bps The fiacials of the busiess were adversely affected by the appreciatio of the Idia Rupee agaist the US dollar. The reveue impact was Rs. 690 millio while EBITDA was impacted by Rs. 108 millio. Recogitio NIIT (HiWEL) has bee coferred the coveted Digital Opportuity Award by World Iformatio Techology Services Alliace (WITSA) i 2008 NIIT is raked amogst Idia s Most Respected Compaies i the IT sector i a survey doe by Busiess World magazie i 2007 NIIT is raked amogst the Top 10 Busiess Brads sice 60 years of Idepedece, by The Week magazie NIIT has bee rated as Top Traiig Compay 2007, by Dataquest NIIT is raked amogst Idia s Top 50 Most Trusted Services Brads i a survey coducted by The Ecoomic Times Brad Equity i 2007 NIIT is raked as Idia s Most Customer Resposive Educatioal Istitutio as per Avaya GlobalCoect Customer Resposiveess Awards i 2007 NIIT was awarded the Idia Frachisor of the Year Award i 2007 by Frachisig Associatio of Idia NIIT is raked amog the Top 20 Compaies i the Traiig Outsourcig Idustry i 2007, by TaiigOutsourcig.com Iteratioal Data Corporatio has raked NIIT amog the Top 20 IT traiig compaies, worldwide ad the oly oe from Asia NIIT has bee rated amogst Traiig Magazie s Top 125 elite compaies worldwide, for its iovative Traiig practices i the year 2007 NIIT was awarded the ICTE Gold Medal by the Ho Chi Mih Computer Associatio. Cosolidated Fiacial review of the Compay The fiacial summary for FY 08 is as follows: FY 08 FY 07 Chage Reveues 10,068 7,951 27% Operatig Expeses 9,033 7,177 26% - Persoel Cost 3,054 2,555 20% - Developmet, Productio & executio costs 3,616 2,674 35% - Admiistratio & Others 1,557 1,344 16% - Marketig % EBITDA 1, % OM% 10% 10% 55 bps Net Other Icome (104) (55) -89% Depreciatio & Amortizatio % Taxes (20) 4 Share of Associate profits/ profits attributable to Miority shareholders % Profit after tax attributable to equity holders % Basic EPS % Previous year data ot regrouped Reveues The reveues of the Compay grew 27 percet to Rs. 10,068 millio from Rs. 7,951 millio i FY 07. This growth was drive by the Idividual busiess as well as the full year impact of Elemet K reveues. The growth was adversely impacted due to the appreciatio of the Idia rupee viz. the US Dollar by approximately Rs.737 millio (YoY). Without rupee appreciatio, the Compay would have recorded a reveue growth of 36 percet YoY with OM% icreasig to 11% 23