HSCC (INDIA) LIMITED ANNUAL REPORT 2005-2006 CHAIRMAN'S REPORT Distinguished Shareholders, It is my pleasure to extend to you all, on behalf of the Board of Directors and on my behalf, a very warm welcome to this 23rd Annual General Meeting of your company. The Company was incorporated on 30th March, 1983 with a meager capital of Rs.6.00 Lakhs. Today the paid up capital is Rs.160.012 Lakhs (of this Rs.120.009 Lakhs has been issued as bonus shares in the F.Y.2003-04) and networth is Rs.4713.56 Lakhs. The company has been continuously making profit for the last 21 years and paid a total dividend of Rs.1320.46 Lakhs (including dividend proposed for 2005-06). During the year 2005-06 Company has attained the highest Turnover in its existence of Rs.2630.32 Lakhs and earned Profit After Tax of Rs.961.53 Lakhs. In order to develop into a top class Consultancy Organisation, thrust is on diversifying and expanding the field of operation and also the client base. Company as a strategy has decided to explore business opportunities in SAARC group of Countries as well as CIS group of Countries. Efforts are also on to tap the prospects in the Corporate Sector where large investments are expected in the near future. HSCC has undertaken an exercise of creating a Strategic Plan 2006-11 with the help of M/s Price Water House Coopers Pvt. Ltd. and mapped certain newer areas for business development. The Company's performance and contribution in the health care field has been acknowledged and the company has been bestowed with various awards. Honourable Vice President of India has awarded to HSCC a Silver Trophy for SCOPE Award for excellence and outstanding contribution to Public Sector Management for the year 2003-04 on 10th January, 2006. Delhi Telugu Academy has conferred Excellence Award for the valuable contribution in the field of Public Sector to HSCC in March, 2006. The Indian Institution of Industrial Engineering has awarded 'Performance Excellence Award' to HSCC for the excellent efforts put in by HSCC in May, 2006. I shall be demitting office effective 31st October, 2006 upon my superannuation after handing over charge to my worthy successor. I take this opportunity to thank particularly the Ministry of Health & Family welfare, Ministry of External Affairs, Comptroller & Auditor General of India & Statutory Auditors for their valuable guidance and support to us all the time. I also express my thanks to our esteemed clients both in India and abroad for their continuous patronage and support. I am grateful for the support and guidance extended by Directors on the Board and the Shareholders. I also appreciate the enthusiasm, initiative and hard work of the employees of the Company's without which the Company would not have attained such position. Thank you, (A. Kumar) (Chairman-cum-Managing Director) Place : New Delhi Date : 21.09.2006