Dear All,
I am delighted to present before you, the progress, your Company has made in its 14th year of its existence inspite of long period of murkiness. Beginning of the Year 2007 was with a dawn of new milestone to be achieved, new pathways to be followed, and new benchmarks to be set, to outperform its own achievements so far.

The  entire  journey  of  IEC  Software  Limited  has  moved  through  various  ups  and  down.  Starting  from  the  date  of  incorporation,  the  Company  has  experienced  every  face  of  life  viz.  growth,  recession,  revival,  restructuring  and  now  the  Company  is  all  set  with  its  bright  expansion  plan  to  venture  into  new  array  of  activities.

The  Company  during  the  period  1995  to  2002  had  shown  a  remarkable  growth  in  terms  of  revenues  and  profitability,  the  Company  had  generated  huge  revenue  from  Turnkey  IT  Education  Project,  software  development  projects,  Software  Training,  and  Franchise  Business.   

However,  by  the  beginning  of  the  year  2002  many IT giants started  facing  the  heat  of  global  IT  slowdown  and  our company was no exception. This global slowdown dented us as with considerable losses on the account of bad debts.  But,  inspite  of  all  the  problems  and  difficulties,  IEC  has  continuously  strived  to  raise  its  services  to  the  highest  level  of  excellence.  It  is  only  because  of  its  constant  fighting  spirit,  today  IEC  has  positioned  itself  into  the  well  known  names  in  the  Education  Industry.  

Notwithstanding the above grim past , the  Year  2007‐08 a  restructuring  exercise  has  been  carried  out  in  the company to  make an entry  in  formal  education  sector.  
The Company is all set to wipe of accumulated losses out of its reserves and it is expected that by the end of FY 2009 Balance Sheet of your Company would get free of accumulated losses.

As  a  part  of  the  restructuring  of  the  Company,  the  Company  is  also exploring the organic as well as inorganic initiatives and thus  IEC is willing to merge VEF Information Systems Pvt Ltd which is providing various educational and support services to certain private educational institutes in North India and conducting Educational and Consulting programmed in order to develop over all personality of the students. Since VEF already has a good client base and as both companies are under the same management, the managements of the both Companies feel desirable to amalgamate both the entities and consolidate the resources and businesses of the companies. The resultant amalgamation will help in synergizing the operational advantages and to achieve economies of scale of operations and elimination of overheads; Optimum and efficient utilization of capital, resources, assets and facilities; Enhancement of competitive strengths including financial resources; Consolidation of business and enhancement of economic value addition and shareholder value; and Better management and focus on growing the businesses.

Presently, the Company’s current business is imparting computer education.  However  due  to  the  upward  swing  in the Core Education  sector,  the  Company  has  decided  to  nurture  this  sector.  It  would  be  advantageous  to  enter  into  this  new  but  related  sector. Today, Education  in  India  is  seen  as  one  of  the  ways  to  upward  social  mobility.  Good  education  is  seen  as  a  stepping  stone  to  a  high  flying  career.  Education System in India currently represents a great paradox.  On  the  one  hand  we  have  IIMs  &  IITs  that  rank  among  the  best  institutes  in  the  world  and  on  the  other  hand  there  are  number  of  schools  in  the  country  that  don't  even  have  the  basic  infrastructure.  Even  after  more  than  50  years  after  independence  we  are  far  away  from  the  goal  of  universal  literacy.  But  on  a  positive  note,  Indian  professionals  are  considered  among  the  best  in  the  world  are  in  great  demand.  This signifies the inherent strength of Indian education system.  

India  today  is  the  second  largest  higher  education  network  in  the  world.  Universities  in  India  are  set  up  by  the  Central  or  State  Governments  by  means  of  legislation,  while  colleges  are  established  by  either  the  State  Governments  or  private  bodies  /  trusts.  All colleges are affiliated to some university.

India is fast emerging as a Knowledge Economy.  Its  spectacular  performance  in  the  IT  sector  has  helped  the  country's  off shoring  sector  emerge  as  the  world's  largest  and  fastest  growing.  Knowledge  has  replaced  capital  as  the  most  important  determinant  of  development.

This  shift  from  material  to  knowledge‐based  resources  opens  up  vast  opportunities  for  the  developing  countries  to  accelerate  the  pace  of  development.  India’s  rate  of  economic  growth  can  be  substantially  increased  if  the  country  becomes  a  superpower  in  knowledge  and  if  the  potentials  of  information  and  information  technology  are  fully  understood  and  exploited.  

 Therefore,  the  Company  has  been  making  conscious  efforts  to  broad  base  its  Business  activities.   
For  this  purpose,  the  Company  has  altered  its  object  clause  by  passing  a  resolution  through  postal  ballot,  so  as  to  enable  the  Company  to  enter  into  the  new  business  area  of  imparting  Education,  and  diverting  from  its  existing  line  of  business.  

Further,  the  name  of  the  Company  has  also  been  changed  from  IEC  Software  Ltd.  To IEC Education Ltd.  as  the  proposed  name  more  significantly  reflects  its  business  expansion  programs and  company's  transition  from  an  IT  training  ,  developer  of  Software  projects  and  an   exporter  of  Computer  Software  to  a  Quality  Embedded  Higher  Education  Institution   catering  to  education  and  technology  needs  of  the  students,  building  systems  and  processes  to  ensure  quality  and  delivery  of  education  and  to  pursue  global  standards  of  excellence.  

The  new  identity  will  enable  IEC  to  better  leverage  its  global  reach,  infrastructure  and  brand  visibility  of  IEC  to  accelerate  the  growth.  

The fast changing world has set new standards for success based on ever increasing quest for knowledge and excellence with pragmatic mindset. We at IEC endeavors to nurture quality, creative ability and innovation which provide the key to success in globalize environment.

Further, we have to benchmark ourselves on a global scale with the best education institutions, and become the institution-of-choice for the best students.

IEC has committed himself to the cause of evolving minds and sensitizing hearts to achieve the goal of Educating, Enlightening, Enriching, Empowering and Enabling.

Looking forward to your profound growth with IEC.

Sincerely
Naveen Gupta
CEO  & MD