Gemini Communication Ltd Management Discussions

Financial Performance

Statements in this Management Discussion and Analysis of Financial Conditions and Results of

Operations of the Company describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities laws and regulations. Forward looking statements are based on certain assumptions and expectations of the future events.

The Company cannot guarantee that these assumptions and expectations are accurate or will be realised. The Company assumes no responsibility to publicly amend, modify or revise forward-looking statements, on the basis of any subsequent developments, information or events. Actual results may differ materially from those expressed in the statements. Important factors that could influence the Companys operations include interconnect usage charges, determination of tariff and such other charges and levies by the regulatory authority, changes in government regulations, tax laws, economic developments within the country and such other factors globally

Telecom Services Group Business outlook

Gemini TSG continues to understand the telecommunication field services and deliver towards customer satisfaction, as done in its earlier years, in India. Gemini TSG had strengthened its team towards enabling them with deep knowledge of the Indian telecommunication market, information on service providers and equipment manufacturers. Gemini TSG continues its partnership with all its key customers, year-on-year, and had been evaluated high on periodic performance measures. Gemini TSG had been among the few companies who had been consistently serving its customers, even during the last year hurdles in telecom market.

Gemini TSGs continued expertise in planning, deployment and field operations, has positioned it as a preferred partner with many leading service providers. The added service capabilities of performance audit, energy audit and managed services, which is driven by its systems and processes, creates its customer value.

Gemini TSG continues to maintain its customers in telecom domain, to their satisfaction, which enables them to get referral service opportunities from existing telecom customers.

Gemini TSG continued to undertake wide range of assignments on demand forecast, network planning, network delivery and network maintenance. The experience and skill set, we are able to apply includes:

• Hands-on experience in the design, development and implementation of wired and wireless telecom networks

• Proven expertise record in 150+ cities

• Wide experience in services for various telecom active equipment

• Well versed in handling managed services

• Driven by CMM level systems and process

• Pan India presence

Gemini TSG has continued long years of experience in offering radio network services for leading services providers and equipment manufacturers. Gemini TSG handles projects in Point-to-point, 3G, GSM, CDMA, etc. Gemini TSG created environment for the young talent to develop and deliver services to its customers, thereby sustaining its competitive advantage.

Given the fact that the urban areas have significantly high tele density as compared to the rural areas, much of the incremental subscribers growth, going forward, would have to be driven by addition of rural subscribers. But the rate of penetration of mobile services in the rural areas being slow, overall incremental subscriber growth is likely to slow down.

With revenues from voice services stagnating, future growth is likely to be driven by wireless data services. Telcos have already invested significantly in acquiring spectrum for third generation (3G) and broadband wireless access (BWA) and are now expanding their footprint across the country, albeit cautiously. Till date, revenues from data services remain significantly low in India vis--vis other countries largely because of the relatively high pricing; lack of handset affordability and limited content availability.

Besides data, the telecom operators have been looking at other services to bolster their topline. Some business segments that have emerged as important revenue drivers for the industry are: enterprise communications, broadband services, direct-to-home (DTH) and data centres. While each segment has its own set of competitors, the telcos have an advantage, given their established subscriber base, network deployment and technological know how.

Why Service providers prefers Gemini TSG for their field services:

• Largest field services partner for wireless networks

• Proven ability to deliver services and projects to customers in India

• Servicing entire life-cycle of active wireless infrastructure services (RF Planning, RF survey, RF maintenance, RFNOC services, RF Managed Services, RF Optimization)

• Strategic partnerships with equipment manufacturers to train our team

• High Employee retention ratio within the industry (96%)

• Existing relationship with leading data and voice services providers, for services

• Expertise in Project Management services to provide the clients end-to-end telecom services

• Nationwide presence

• Implemented and implementing many green-field Radio networks (P2MP / MMDS / 3G)

• Multi-technology, Multi-vendor expertise across core, edge and access networks

• Experience across various stages of business life-cycle

• 24 x 7 services for network maintenance

Business Highlights

• Continued to renew its services contract with all its customers and extend the partnership

• Rated as preferred partner by its major customers

• Ability to offer the whole range of active telecom network architecture services

• Evaluated with an overall score of 97% by leading global telecom equipment manufacturer

• Evaluated with "Green-Category" by a leading Indian broadband service provider

• Retained its focus on consultancy services

Point Red Telecom

Industry and Business Outlook

Increasing demand for high-speed and high capacity, data-centric internet access by individuals and corporations is characterizing the broadband wireless access market. This has led to the evolution and increased adoption of 3G & LTE which represents superior performance and lower costs vis--vis currently deployed cellular technologies.

The industry views co-existence of both 3G and LTE appropriate for meeting the growing demand for wireless broadband network. PointRed believes that both these technologies will co-exist in the network ecosystem. As a 4G player, Point Red intends to maintain a presence in both these technologies through its wide array of products. Point Reds technology and architecture, which is built on the strength of its R&D capabilities, are customizable to support both these technologies.

Strategies and Focus

• PointRed established its presence in Middle East & Africa substantially last year and it will continue to consolidate its market positions.

• PointRed will accelerate its R&D plans thereby bringing cutting edge technology thus lowering the total cost of ownership.

• PointRed is aggressively pursuing opportunities in India for its cutting edge technology like 3G, 4G & Carrier Wi-Fi.

• PointRed is leading supplier of unlicensed band radios in India and will consolidate its position further by introducing state of art, cost-effective solutions in this financial year.

• PointRed is also actively pursuing opportunity in the ASEAN countries and will seek to establish its market presence in this financial year. Business Highlights

• Secured Multi Million multi-year contract from leading private telecom operators in India.

• Established its presence in Middle East & Africa

• PointRed has an experienced and competent management, R&D and Sales team with members possessing total experience exceeding 350 years in the telecom space. The first line-management predominantly comprises software/hardware engineers and IT specialists with significant experience in the broadband space.

• Over 50% of their employees are part of the R&D setup.

System Integration

Future industry outlook

The Industry continues to present a cusp structure, into a technology transition phase, where the effects of IT Security, Cloud computing, mobility solutions and virtualization is gaining priority and mind-share with users, more and more. The need to be innovative and services driven has assumed a great significance now, more than ever before. As we see the effects of economic uncertainty unfold its caution alarms all around, only industry like Banking and Government seems to continue to stretch its continued investment in IT infrastructure. In Gemini, we have kept ourselves abreast and skilled, adequately to address the needs of customers and advise them in such technology transition times.

Cloud Computing is the buzz word in the industry now which is rattling the old technology pursuits in the industry. This is changing the way even giants like Microsoft, SAP, Oracle and HP are going about their business. Cloud computing and its various application off-shoots is likely to impact every Smart Phone and PC user of today. A growth of more than 100% is expected in the next one year.

Mobility Solutions The telecom infrastructure and the telecom business is going through a similar technology transition phase as data transfer growth indicators are that it would beat the quantum of voice business, very soon and would exponentially grow out to create a large difference between the two. As a result, all Telecom Service Providers are focused on achieving various ways and means by which their data revenues would increase. A growth in excess of 100% is expected in the next year.

Virtualisation Centralised Management, single point of monitoring, drive to a greener IT infrastructure, cost reduction, etc., is leading the virtualization clamour. Every single organization with multiple applications to be delivered to its staff feels the necessity to opt for such a need. Future business outlook, strategies and focus areas Gemini has set up a Security Operations Centre, from where we monitor our customers network for any anomalous packets from entering their network or any activity that could be potentially dangerous to the customer organization. Cyber security threats, Corporate Cyber espionage and many such other threats having been making CxOs spend their time worrying to understand its various means to thwart.

By opening up the SOC, Gemini is one of the 3 companies in India that could offer a guaranteed solution to its customers to prevent cyber-attacks or prevent data theft. Gemini is also offering Managed Authentication Services, on a cloud model to its customers, by which customers get authenticated over a One-Time-Password (OTP) to enter any security zone. Again, Gemini is one of the very few companies that could offer such a service. Gemini also does Vulnerability & Penetration Audits apart from Consulting on Security Architecture. Gemini has also been training students in various colleges to spread awareness and to attract talent in areas of Ethical Hacking and Cyber Forensics. Many of these Security Services that Gemini is offering has been set up on a Cloud platform, thereby opening up a possibility of attracting customers from across the globe.

Today, large users of computing, spreads over many geographical locations are learning and investing in the benefits of Desktop virtualization and Gemini has already completed 4 projects. Our customers include Banks, who have the potential to expand the use of this technology in a phased manner across their branches, which could translate to a consistent source of business revenue.

Gemini is investing its efforts in expanding its customer base to a more global level and has entered into partnership agreements with dealers in Oman. Gemini intends to focus on 3 other countries within this financial year for which discussions are ongoing.

The future clearly looks optimistic for the nimble-footed, lean organizations that could be dynamic to re-focus its strategies to build itself on grounds of offering skilled services. The ability to skill up on changing trends has been a hall-mark of Gemini throughout and till this date, Gemini can pride itself on being very focused and defined in its areas of operation.