Dear Shareholders,

I am pleased to present you this Annual Report and annual accounts of the Company for the year ended March 31, 2008. Fiscal year 2007-2008 has been symphonic year showing spectacular growth not only by the Company but also by its subsidiaries. The flagship Company has crossed a turnover of Rs. 1645.19 million with Net Profit after Tax of Rs. 80.43 million. You will be pleased to note that the total consolidated income for the year ended March 31, 2008 reached to Rs. 2911.58 million showing remarkable growth of over 87.24% as compared to Rs. 1555.00 million in previous year. In my view, the Company has made excellent progress in terms of top line growth and EBIDTA growth considering the fact that the total launch and advertisement expenditure of Rs. 218.38 million of Company's retail subsidiary viz. Zicom Retail Products Private Limited (ZRPPL) has been entirely written off. Inspite of challenges faced by the Company, I am proud to say that your Company has maintained its leading position by strategizing its business model and extending its customer base across nation.

India's economy has been one of the stars of global economics in recent years, growing 9.2% in 2007. Like most of the world, however, India is facing testing economic times in 2008. Rapidly rising inflation at 11.89% noted in June, 2008 and the complexities of running the world's biggest democracy are proving challenging. Under this scenario, I expect further tightening of monetary policy by central bank making things difficult for the growth of business and industry. The resilience displayed by Indian economy in light of developments in the global economy since the onset of the credit crises in 2007 is clear indication of sustainable nature of India's growth momentum. Continued investment in infrastructure, investment in education and holistic development of agriculture sectors are going to be new economic drivers to realize India's full potential in long run.

As per recent survey, the electronic security market in India is estimated at Rs. 1,1500 million as on March 31, 2007 and expected to grow at CAGR of 23%. In my view, Indian Electronic Security Industry has just taken off and will do well in foreseeable future in view of the growth expected in IT /ITES, commercial construction, retail infrastructure, hospitality and industrial sector growth.

As the Company has embarked upon the long term task of building up category of home and retail security, the initial success of ZRPPL of having achieved turnover above Rs. 500 million is in my view not a small achievement. The Company has opened up 110 SIS stores (Shop-In-Shop) and 18 OBS (Own Branded Stores) stores till June 30, 2008 and plans to take number of stores to 250 through SIS. With this your Company will be the only organized national player in retail security domain.

Another most important achievement of the Company during last year was successful turnaround of Unisafe Fire Protection Specialists LLC, Dubai, UAE. I am proud that in its first full year of operation after acquisition, Unisafe has achieved turnover of Rs. 721.95 million and profit of Rs. 126.20 million mainly due to better administration, management and buoyant business scenario in gulf region. Thus investment made in Unisafe has been fruitful and return of investment has been achieved much earlier then expectation. I foresee that Unisafe will be front runner in driving the profitability for the Group.

Zicom Honkong made a small beginning by registering sale of Rs. 47.84 million with a profit of Rs. 3.98 million.

Our recent foray with CNA Group, Singapore by setting up a joint venture in India viz Zicom CNA Automation Limited is expected to make Zicom a niche technology player in the field of intelligent buildings and green buildings.

Due to change in international financial scenario, Company's plan for infusing further equity thru GDR and FCCB was not completed. This may be taken up at appropriate time in future. The Company is thankful to each of its Zi-Champs, Bankers, Stakeholders, Customers, Business Associates; for contributing their might to the success of the organization. I thank all of you for having reposed your confidence and faith in the Company.

Feel Safe,

Manohar Bidaye
Chairman