Trigyn Technologies Ltd

Overview

Trigyn Technologies Ltd., earlier known as Leading Edge Systems Ltd.,("Trigyn" or the "Company") is a leading IT solutions and servicesCompany with global operations, delivering cost effective and quality end to end solutionsand services. Trigyn’s services help its customers to integrate business processeswith technology and to operate in a marketplace that is no longer constrained by time anddistance, thus providing a sustainable competitive advantage to its customers. The Companyhas a presence in the domains of International Organizations, Non-GovernmentalOrganizations, State and Local Governments, and the Commercial sector including FinancialServices, Pharmaceutical, Manufacturing and Distribution. The Company offers acomprehensive range of service offerings including Offshore Development and MaintenanceSolutions and Services, Staff Augmentation, Managed Services, and Business ProcessOutsourcing. These services include Application Development and Maintenance,Reengineering, 24X7 Support Services, and more. The Company maintains Centers ofExcellence in its Offshore Development Center focused on technologies which includeMicrosoft SharePoint (MOSS), Microsoft .Net, J2EE, Open Source, EMC’s Documentum,Helpdesk Services, Financial Products support for the Asia marketplace and others.

Quality

Trigyn maintains the prestigious CMMI for Development certification which it acquiredduring fiscal year 07-08 (CMMI Version 1.2 Level 3), which implies that strong managementpractices and processes are in place, and which aids in the planning and execution ofprojects. There is also a continuous effort to improve the quality management processwhich is evidenced by the Company’s ISO 9001:2008 recertification, and a commitmentby the Company to achieve even higher levels of quality certifications throughout itsoperations. The Total Quality Management & Business Excellence culture followed by theCompany, seeks to achieve a number of goals including:

• Customer Delight

• Respect for the Individual

• Honesty and Fairness

• Innovate, Achieve, Excel

Corporate Citizenship

Trigyn is committed to understanding and reducing the environmental impact of theCompany and its employees in all geographies where we provide services. We are committedto improving the lives of our employees and those in the communities were we operate.Trigyn has engaged in a number of alternative "Green Energy" initiatives withits customers. These include:

• Green IT Operations & Data Centers

• Development of Green Technologies and Alternative Energy training programs

• Producing a Green Alternative Energy Guidelines Booklet

Diversity and Gender Equality

Trigyn is committed to diversity across all of the geographic locations where itprovides services and solutions to its customers. To this end, the Company continues toenter into contracts with several US based Minority and Women owned businesses. Outside ofthe US, the Company has undertaken a number of initiatives aimed at broadening thediversity of its work force, from its operations in India to a number of its worklocations around the globe. Trigyn has also taken steps to ensure Gender Equalitythroughout its operations and has launched specific initiatives to ensure Gender Equalitythroughout all facets of its operation. Trigyn developed and adopted an Affirmative ActionPlan in the US, to ensure operational compliance with its objectives and values.

Solutions & Services

• Offshore Development Center (ODC) Services

Trigyn operates a highly effective, efficient and proven Offshore Development Center(ODC) based in Mumbai, India. Trigyn provides a host of services for its customers fromits ODC, these include; 24X7 Helpdesk and Support Services, Application Development andMaintenance Services, Reengineering Services, Content Management Services, Web Applicationand Support Services, and Business Process Outsourcing Services. There is an ongoingendeavor to leverage the Company’s quality achievements which include CMMI Version1.2 Level 3 process maturity, as well as its ISO 9001:2008 certification, to add value toits esteemed customer’s investments and to manage the delivery and support servicesprovided by the Company. The Company prides itself on having a proven team to oversee theODC, along with a highly integrated and automated set of tools to track, manage andmaximize its human capital resources, control risk and provide transparency in all itsoperations to ensure its customers remain satisfied and receive value from its services.To ensure that these objectives are achieved, the Company implemented an industry leadingtool called Digit, during the fiscal year 07-08, which is used by a number of its multinational competitors.

• Managed Services

Trigyn’s experience providing large scale Managed Services is extensive. Trigynhas delivered large scale Managed Services engagements globally, across 14 countries andhas established infrastructure, management resources, and methodologies that ensuresuccess. Trigyn has the experience to meet and exceed the most demanding Service LevelAgreements (SLAs) in very challenging environments. Trigyn is able to mobilize and deployIT and other logistical services resources to some of the most remote locations on earth.Today, Trigyn has over 400 highly skilled resources working in its Managed Servicesoperation, providing services in more than 14 different countries. The services providedare as diverse as the resources deployed and include the following:

• Communications Infrastructure

• Information Technology

• Applications and Network Development & Support

• Website and Portal Development & Support

• Satellite / Radio / Broadcasting

• Radio / Broadcasting

• Video Conferencing

• VHF / UHF / HF

• Digital Trunking / Digital Microwave

• Trigyn’s Managed Services offerings provide a host of benefits to ourclients, including:

• Improved service levels, security and availability

• Extended capabilities without the need to add staff

• Ability to manage change with agility & excellence

• Ability to align IT with business strategy

• Staff Augmentation Services

Trigyn operates a highly refined, mature and integrated Staff Augmentation businesswhich provides qualified and reliable resources to its customer over a broad range oftechnologies and in diverse geographic locations. This operation is headed by a team ofindustry veterans with extensive industry knowledge and staffed by seasoned resourcespecialists both in the US and in our ODC facility in Mumbai, India. The Company hasinvested in human capital and tools to ensure that this sector of its business can respondto the highly competitive nature of this business and has achieved significant successmeasured by the growth in its base of esteemed customers. At the core of this offering isa fully integrated Resource Management System (RMS), which allows for the seamlessintegration of opportunities from around the globe to be sourced by the most costeffective means and managed from multiple locations. The Company continues to enjoy muchsuccess from its continued focus on the diversification of its Staff Augmentationbusiness. The Company continues to add to its portfolio of clients in the InternationalGovernments, Non-Governmental, State and Local Governments and Commercial sectors. Most ofthe resources placed fall into the following areas or domains:

• Project Managers & Business Analysts

• Software Architects, Developers, Designers and Testers

• Helpdesk and Network Support Resources

• Network & Infrastructure Engineers

• ERP Technical and Functional Resources (SAP & Oracle)

• Web Architects, Developers, Designers and Usability Specialists

Organizational Strategy

The Management of Trigyn follows the Organizational Strategy and Roadmap put in placeduring fiscal year 07-08 and continued to implement a series of initiatives to streamlineand refocus the Company to achieve certain objectives. A number of these objectivesinclude:

Enhanced integration of the Company’s US subsidiary, Trigyn Technologies, Inc,with e-Government, and related initiatives being pursued across other geographies by theCompany.

Continued focus on consolidating overhead to least costly geographies, to realizesavings and enhance service offerings as a result of further integration, automation,knowledge transfer and training.

Reevaluation of initiatives in geographies where economic conditions are no longerfavorable for continued expansion efforts and such geographies can be serviced throughpartnerships or from other locations. This activity would be carried out subject toobtaining requisite statutory approvals from the concerned authorities.

Focus on the retention and development of existing talent through the offering ofincentives such as stock options, optimum compensation structures, training and promotionfrom within.

Ensure strict compliance of all laws and regulations in all regions where we operateand identify and bring to the fore all issues of non-compliance.

Industry Outlook

Trigyn is well positioned to continue to grow along with the industry. With thecontinued economic slowdown which has impacted the US and EU markets, the advantages forcompanies operating in resource rich markets such as India, will continue to prove to be asource of stability and growth.

It has also been widely reported in the past from several multi nationals withmulti-country operations as well as syndicated analysts comparing the various sourcinglocations that India offers the best "bundle" of benefits being sought by theglobal sourcing industry.

Opportunities

Trigyn is well positioned to leverage the expanding human capital at its disposalthrough its unique global footprint anchored by its Offshore Development Center (ODC) inMumbai, India. Trigyn has made impressive progress over the past few years on a number offronts to ensure its continued growth. Trigyn has a stable operating management team whichaverages over 5 years with the Company and 15-20 years of industry experience. It hastenaciously and deliberately moved to ensure that its business is derived from multiplesources including Offshore Development, Managed Services and Staff Augmentation, as wellas across diverse geographies such as the US, Europe, Africa and Asia. It has worked hardto ensure that a number of the critical business functions are serviced by resources inits ODC and has integrated the cultures across its operations.

• Total Income

The total income of Trigyn for the year 2009-10 was Rs.2528.13 lakhs as compared toRs.2105.32 lakhs during the year 2008-09. The increase in revenue was primarily due to thehigher volume of business during the year under review.

• Total Expenditure

The total expenditure including interest and depreciation of Trigyn for the year2009-10 was Rs. 2026.47 lakhs as compared to Rs.1479.20 lakhs during the previous year.Management has initiated measures to contain direct and indirect costs.

• Gross Profit

The Gross Profit of Trigyn was Rs.679.55 lakhs for the year 2009-10 as compared toGross Profit of Rs.980.52 lakhs during the previous year. Drop in Gross Profit was due toreduction in the effective revenues and direct costs reducing to a limited extent overlast year.

• Net Profit

The Net Profit after considering Exceptional and Extraordinary Items of Trigyn wasRs.1088.40 lakhs for the year 2009-10 as compared to a profit of Rs.1032.85 lakhs duringthe previous year.

The Company mainly operates in a single segment and therefore segment reporting asrequired under Accounting Standard -17 is not applicable.

Threats

The business revenues are sourced predominantly from the US market. Given the prolongedeconomic impact in this market, Trigyn’s business could be adversely impacted. Thisimpact could also be felt by the State and Local Governments, as these entities arenegatively impacted by a loss of tax revenues and institute budget cuts for resources andpostpone or cancel projects. Another area of concern for the Company is the increasinglevel of competition across the IT services industry. With a shrinking number of clientdollars and more competitors chasing these dollars, the threat to revenue and equally assignificant, profit margins, become ever more likely.

Risks and Concerns

The revenue growth and profitability of the business of Trigyn is subject to thefollowing:

• Changes in the domestic and international economic and business conditions

• Commoditization of the Offshore Software Services business

• Foreign exchange rate fluctuations

• Length of the sales cycle

• Success in expanding the global operations through direct sales force andindirect distribution

• Economic downturn impacting our customers

• Activities of our competitors

• Allocation and availability of resources

Based on the preceding factors, the Company could experience a shortfall in revenues orearnings or fail to meet the public market expectations, which could materially andadversely affect the business operations, financial condition and market price of theCompany’s shares on the stock market.

Internal Controls and Adequacy

Trigyn continuously reviews its Internal Control system in order to further strengthenand make it commensurate with the size and nature of the business which currently is welldefined and commensurate with the scale of operations of the Company.

Some of the statements made in this section may contain certain ‘forward lookingstatements’ within the meaning of securities laws and regulations in force. Factswhich are not historical in nature and include but are not limited to Trigyn business,financial condition, business strategy, plans relating to products and services, futureprospects or any related assumptions thereto should be deemed to be ‘forward lookingstatements’ and should be considered as such. These ‘forward lookingstatements’ are inherently subject to risks and uncertainties, beyond the control ofTrigyn and accordingly the actual results could differ materially from those indicated bythe ‘forward looking statements’. Trigyn shall not be liable for any loss, whichmay arise as a result of any action taken on the basis of the information contained hereinnor would be under any obligation to update the ‘forward looking statements’ toreflect the developments of events or circumstances hereafter.