Dear Shareholders,

‘In motor racing, overtaking is planned for the curves’.

I saw the year gone by as the first signs of the curve in the global IT services space and therein I saw opportunity. An opportunity to step back and review, consolidate, rejuvenate and work to get closer to the dream of an Indian institution providing global leadership. At Polaris, we did just that.

We invested into creating a powerful service differentiator "Precision". We are part of an industry that benefits from the inefficiencies of our own creation. While dynamic changes in technology do necessitate this to a large extent, we could, as an industry, certainly eliminate the errors of commission. We took it as a challenge to become the "gold standard" in the international quality arena.

It is indeed a proud feeling when I announce to all you shareholders that your company became THE FIRST EVER COMPANY IN THE WORLD to achieve CMMi Level 5 (Integrated - Capability Maturity Model, Software Engineering Institute, Carnegie Mellon University, USA). We extended the processes to all our business areas like Human Resources, Sales and Marketing, thus creating a culture of precision across the business. Employee practices at Polaris were recognized in more than one forum this year.We were rated amongst the top 25 best employers in India by Business Today - Hewitt Associates, and awarded for Managerial Excellence in the service sector by the Madras Management Association (MMA).

The addition of trophy relationships like AIG - USA, Commerzbank - Germany, Snecma Moteurs - France, to name a few, reaffirms the faith that global leaders place in Polaris.

2001 was the year of Precision. We are now entering a new era of growth driven by the Power of Precision supported by the proven passion of the employees of Polaris.

With best regards

Arun Jain
Chairman & Managing Director

Chennai, 29 July, 2002