VISU INTERNATIONAL LIMITED ANNUAL REPORT 2005-2006 CHAIRMAN'S REPORT Dear Co-members, It is a matter of grate pride to cherish and share with you the path breaking performance that your company delivered during the financial year 2005-06. The total income of the company is reported more than Rs. 70 crores and the net profit of the company is Rs. 6.47 crores. The stupendous performance of the company definitely motivates us to work hard and to produce better results in future. Education forms the backbone of a nation and is one of the most important key indicators of a country's growth and development. In fact, the rise of knowledge economy at a global level has once again reinforced education, in all its forms, elementary, secondary, higher, vocational, as the key economic and business driver. We are none to second in terms of availability of intellectual capital. We need to adopt international best practices with respect to innovative models of education systems and to enhance competitiveness of the Indian Education System in the global market. Your company has taken the initiative to start international schools to bring about a change in the practices followed at the school level by preparing students to be competitive in the global market and to be a role model in the Indian Education System. We cannot imagine growth without innovation. We need to create conducive environment for finding better methodologies and techniques for improving efficiencies and confront competition. At VISU, we strive to present the best products and offer quality services by constantly improving the existing systems and innovating better techniques to serve our customers in general and the student community in particular. It is pertinent to highlight and compliment the achievement of the research team of VISU in churning out an innovative product called Visu Testing Service (VTS). VTS enables a student to test his/her strengths and weaknesses in a given area at a given time and to compare his/her standard at national level. I am happy to share with you that the company has raised an amount of USD 9,657,000 from the GDR issue and I thank the overseas investors for the overwhelming response received by the company for subscribing the issue and making it a big success. I am also delighted to share with you the fact that the GDRs of the company have been listed on the Luxembourg Stock Exchange, UK with effect from 24th April, 2006. With regard to expansion, your company has opened branches at Ahemdabad, Vadodara, Warangal and Ananthapur and further the expansion of branch network still counting. It is also in the sight of opening a subsidiary of the company in a foreign country to have an extended reach to our overseas clients. Let us all work together to build the company to be a leader in its business and take it to new heights of success for the benefit of all. I wish to place on record the kind cooperation extended by all of you at all times in our efforts to strengthen the company. I would like to take this opportunity to express my sincere gratitude to my colleagues on the Board, employees, customers, bankers, suppliers and our shareholders who continued their support and cooperation and participated as partners in the growth of the company. Best Wishes C.C. Reddy Chairman