Niwas Spinning Mills Ltd.

Annual Report 1998-99 Digital Equipment (India) Limited CHAIRMAN'S STATEMENT Dear Shareholders, We are fast approaching the dawn of a new millennium. There is excitement in the air. Of the old, giving way to the new. Changing times have given rise to new ways of doing business, to ensure one remains competitive in the market place. Globalisation of business has led to the need for globally deployable technologies. Today, 'anytime-anywhere computing' has moved from being an expectation to reality. The merger of Compaq and DIGITAL gave us an opportunity to reorganise our business to address current market needs. The need to ramp up the software business was evident, leading to the most appropriate decision to realign. As a result, Digital India is today a focused software and services company. Digital India is an independent company chartered to grow its business and increase shareholder value. The strategy is for Digital India to become the 'Trusted Partner' for providing high quality, cost effective software solutions to our customers world-wide. The Company has started targeting external business while pursuing its objective to be the preferred outsourcing partner to Compaq. Besides being a customer itself, Compaq will provide Digital India access to new markets and technologies. As an investor, with a history of good corporate governance, Compaq will help Digital India establish high standards of governance. With extended enterprises highly dependent on the Internet for support of business processes, the Company will now offer among others, a portfolio of software services with focus on e-business solutions. The year has been one of significant changes for Digital India. In the past few months we have made progress on all fronts. An efficient business organisation has evolved, keeping in mind our new requirements and the needs to achieve the highest level of operational efficiency. A highly experienced management team is in place. The strategy for growth has been articulated and implementation started. Once again, I wish to thank you for your support in the past and welcome you to the new Digital India. We invite you to share our dreams and aspirations. The future is bright and our foundations firm. Together, we can make it happen. Thank you. Kannankote Srikanth August 31, 1999 Chairman