CMC Research Presentation

1

CMC Limited

Your IT Partner

Presentation to Analysts

2

CMC Limited

� This presentation includes statements which may constitute forward-looking statements. These forward-looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our business and the markets in which we operate. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. Although the company believes that the expectations contained in such forward-looking statements are reasonable, it can give no assurance thatsuch expectations will prove correct. These are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements.

� This document is being supplied solely for information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, copied in whole or in part, for any purpose without the consent of the company in writing.

Disclaimers

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CMC Limited

Agenda

1. Company Overview and Strategy

2. Customer Services SBU

3. Systems Integration SBU

4. ITeS SBU

5. Education & Training SBU

6. HR Overview

7. Financials and Subsidiary Company Overview

1. Company Overview and Strategy

5

CMC LimitedCMC Limited

Vision Statement

� We shall operate globally and bring the benefit of Information Technology to continuously improve the productivity of our customers and quality of their products and services

� As a part of TATA group, we shall align ourselves with the TCS vision – Global Top 10 by 2010

� We shall be a vibrant organization where openness, trust, team work, simplicity and innovations are valued and promoted

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CMC Limited

1975 1976 1978 1984 1986 1991 1992 1993 1995 2001

� Incorporation of Computer Maintenance Corporation Limited

� Partial Divestment by GoI

� CMC takes up the maintenance of 800 IBM installations spread across India. Initiates training courses predominantly to clients

� Aligns business focus along vertical markets like transportation, mining, power and banking

� Sets up INDONET

� Reorganisesbusinesses into five strategic business units

CMC - Pre Acquisition

� Commences operations

� Diversifies activities to include “turnkey” projects, IT education, software development. Renamed CMC Limited

� Acquires Baton Rouge International Inc. in USA – a step towards globalisation (renamed as CMC Americas, Inc. in 2003)

� Listing on Indian Bourses

� Tata Sons Limited acquires 51% stake in CMC

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CMC Limited

CMC - Post Acquisition

� Significant focus on growth through value addition & synergies� Focus on international markets by leveraging

CMC’s knowledge base and TCS’ international presence

� Leverage on domain skills to provide IT centric solutions� Ports� Stock exchange � Banking

� Adoption of TCS best practices

0

50

100

150

200

250

300

350

Apr-01 J ul-01 Oc t-01 J an-02 Apr-02 J ul-02 Oct-02 J an-03 Apr-03 J ul-03 Oct-03

CMC SENSEX

Acquisition by TCS

8

CMC Limited

Overview of Company

51%26%

23%

Tata SonsGovernment of India (“GoI”)

Public shareholders

�Project implementation, integration & Maintenance of software products / solutions

Systems Integration

�Hardware supply & support services, network design / implementation services

Customer Services

�Software and hardware training through 200 centres to corporate and retail clientele

Education & Training

�Value added EDI network, Forms processing, Web design and hosting, data centre services

ITES

CMC Strategic Business UnitsCMC Strategic Business Units

100%

� International Services

CMC Americas, Inc.

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CMC Limited

Organisation Chart

Bhushan MohanIndia – North

Chinta PrakashR&D

JK GuptaCFO

A S RajyadakshaCustomer Services

Saibal GhoshEducation & Training

S BalakrishananSystems Integration

V RajaramanITES

C V RammohanBFSI

Rathin RoyInsurance

Bhushan MohanTransportation

K C RehaniE-governance

G BhulokamShipping

A K SinghMining

S V RamananHR, Internal Systems,Planning & Quality Corporate Communications

Vivek AgarwalCompany Secy. & Legal

Chinta PrakashIndia – South

S BalakrishananIndia – West

A K BhattacharyaIndia – East

Rajiv MathurAmericas

G VenkatramanEurope

Vinodh LakshamanMEA

S Ramadorai Chairman

R RamananManaging Director & CEO

Industry PracticeIndustry Practice Strategic Business UnitStrategic Business UnitGeographyGeography Corporate FunctionCorporate Function

SPS MahindrooDefense

i Company Overview and Strategy - Business Model

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CMC Limited

Business ModelFi

nanc

ial S

ervi

ces

Bank

ing,

Insu

ranc

e,

Cap

ital M

arke

ts

Tran

spor

tR

ailw

ays,

Por

ts,

Stat

e Tr

ansp

ort

Ener

gyO

il &

Gas

, Ele

ctric

al

Indu

stria

lM

inin

g et

c.

Vertical Domain Expertise

Matrix Structure to Provide Value Added Services to Clients

Def

ense

E-G

over

nanc

e

Education & Training

Infrastructure Management

System Integration

Software Products and Development

Tech

nolo

gy E

xper

tise

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CMC Limited

Diversified Business Mix(1)

FY02

55%

4%

9%

14%

3%

15%

Growth

-49.4%

6.8% 13.9%43.7% 55.7%

-60%-40%

-20%

0%

20%40%

60%80%

Customer Services System Integration ITES Educational Training International

Growth driven by International business - effective leveraging of TCS

(1) Standalone financials ; Year ending March 31

FY03

54%

5%

4%

20%

1%

16%Customer Services

System Integration

ITES

Educational Training

International

Others

13

CMC LimitedCMC Limited

FY03

46%

4%

6%

23%

1%

20%

FY04

63% 2%

17%

2%

5%

11%Customer Services

System Integration

ITES

Educational Training

International

Others

(1) Standalone financials

H1 Financial Performance: Segmental Revenue(1)

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CMC Limited

Services Offered

Skills / Infrastructure

Strategic Business Units

� Systems Consultancy� Software products and

customized solution� Software maintenance� Turnkey Projects

� Over 1000 trained professionals with expertise on different platforms

� 100 people strong Real Time/Embedded Systems group

� Experience on range of areas like –BFSI, Image processing & Biometrics, SCADA solutions, Real Time/embedded systems, e-Commerce, e-Governance, Mobile Computing, Multimedia, Large scale Database Solutions

� Third party maintenance of hardware and software

� Equipment Supply and Integration

� Networking Services and Consultancy

� Environmental Engineering and Facilities Management

� Developed a range of products

�Electronic communications, networking, message handling systems, DGPS based vehicle tracking system etc.

� Present in over 150 resident services locations and over 500 non-resident service locations

� The only company worldwide to support 40 different manufacturers like IBM, HP, Compaq, Sun, Silicon Graphics, CISCO, Entrasys

� Expertise in IVR solutions, Credit Card Authorisation services, Internet / Intranet services, Smart Cards and POS terminals

� Entry level courses� Professional Development

courses� Vendor certified courses� Customised courses for

specific training needs of companies

� Career Development courses

� Degree Corses

� 200 training centers catering to 25,000 students every year

�6 owned centres located in Ahmedabad, Bangalore, Calcutta, Chennai, Hyderabad, Mumbai, New Delhi, Pune, Vishakapatnam

�15 in association with leading educational institutions like RECs, Jadavpur University, IMT Ghaziabad & Calcutta, Engg. Staff College of India

�Approx. 180 franchisee centres spread over the country

� Corporate Intranet� Network management,

Managed Data Network Services, Help Desk

� EDI� Database services� Web design & hosting� Forms Processing� Data Centre Services

� Over 70 trained people� Supports TCP/IP and X25

protocols� 64 kbps leased links

connections across 9 cities - Delhi, Mumbai, Calcutta, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Vizag

� Redundant data links at each location ensure higher reliability & uptime

System Integration Customer Services Education & Training ITES

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CMC Limited

Services Offered Skills & Infrastructure

International Operations

� CMC provides end-to-end IT solutions to international clients through its international operations and CMC Americas

� Around 700 professionals working on international projects

� Relationships with leading US Companies predominantly through staffing services

� 10 offices in the USA, one each in the UK and Dubai

� Custom software design and development

� IT, e-business process consulting

� Turnkey project design, implementation and management in a variety of industries

� IS / IT outsourcing

� IS / IT staffing

ii. Company Overview and Strategy - Key Differentiators

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CMC Limited

Key Differentiators

Strong Growth in Key Segments

Sizeable Resource Pool

Well Recognised R&D capabilities

Sales and support reach in the domestic market

Wide range of service offerings & domain

expertise

Large project execution capability

Strong client base

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CMC Limited

Strong Growth Projected in Key Segments

Domestic IT market has recorded strong growth in the past and is expected to grow similar rates in the medium term as well

6,2349,705

23,695

4,838

4,053

4,499

6,546

13,865

4,975

3,0552,070

2,257

1,234

1,996

1,6202,947

3,393

2,897

0

10,000

20,000

30,000

40,000

50,000

60,000

FY00 FY03 FY07E

(Rs. Cr)

Systems Peripherals Networking Packaged Software Domestic Services Others

Total Rs.17,002 Cr

Total Rs.26,952 Cr

Total Rs.55,925 Cr

15.9%13.9%

22.3%7.2%

30.5%

5.4%

25.0%

12.2%

15.8%

22.5%

20.6%

10.0%

CAGR = 16.6%

CAGR = 20

.0%

Source: Dataquest for the period FY00 - FY03 and IDC for FY07E

Domestic IT Market Domestic IT Market

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CMC Limited

Wide Range of Service Offerings & Domain Expertise

CMC has a vast depository of ready packages and software

Customer Services and System IntegrationServices

Frameworks/ Software Assets

� TC/4 Retail Banking System

� VECTOR -Stock Exchange System for Online Trading

� VEDAS -Depository Solutions

� DIGIPURSE

� GENISYS -Branch and division automation

� Interactive Voice Response Systems

Ban

king

& F

inan

ce

Insu

ranc

e

� Container Handling Systems

� Cargo Management Systems

� Railway Reservations

� Freight Management

� Hardware solutions

� ARTS� CUPS

Tran

spor

tatio

n

Pow

er

Min

ing

� NIRDESHAK -GPS based vehicles tracking system

� CRYSTAL -Mine planning package

� ERP for mines

� OSKER -SCADA based energy and power solutions

� Load Dispatch� Distribution

automation� Sub Station

automation� Demand side

management

E-G

over

nanc

e

Def

ense

� Air defense handling systems

� Radar data processing systems

� Airfield lighting and control systems

� Embedded software systems

Crim

inol

ogy

� FACTS -Completely automated fingerprint identification and retrieval solution

� VISTA/VOICE� Healthcare

solutions� Treasury

management� Networking

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CMC Limited

Large Project Execution Capability – Indian Railways

� Over than 10 mm passengers a day

� Over 250,000 freight wagons & 7000 locomotives

� Over 6,000 passenger trains everyday

� Over 8,000 railway stations

� 15 Zones and 68 divisions

� Over 20,000 stock items at 200 depots

Background

� Design and develop a complete software solution to implement an integrated multi-passenger reservation system (IMPRESS)

� Freight Management (FOIS)

� Ticketing of Unreserved passengers (ARTS)

� Materials Management (MMIS)

Project Objectives

� IMPRESS

� Change management from manual to computerized reservation and ticketing

� Proliferation of system to remote locations

� Creating a robust passenger reservation system with > 99.5% uptime

� FOIS

� Implementation at over 80 districts with over 2000 users

� >99.5% uptime

� Setting up all India Communication network

� ARTS

� Rugged hardware with embedded software to meet stringent data security requirement

� MMIS

� Robust online system to integrate 5 functional modules

� Replicate data from remote places

Key Challenges

� Delivery of very large engagement on turnkey basis in short time frame.

� Scalable, maintainable, extendable, secure and reliable solution: Open architecture

� Development of state-of-the-art solution: Multi technology platforms, more than 3000 subroutines and 800000 lines of computer code

Key Achievements

We have track record in executing large, multi-location projects on time and at high quality standards

� FOIS - Enhanced functionality covering goods sheds and wagon reporting with 3 tier application software using Oracle and TuxedoMiddelware

� MMIS - Handling 10000 complex material transactions per day, more than 1000 forms, 2000 reports and 500 queries

� MMIS - Developed Work Flow system management unique to Indian railways

� Arts - Universal ticketing counters

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CMC Limited

Strong Sales and Support Reach within Domestic Market

Well established sales and services network across the countryStrength of Sales & Marketing team – over 200 employees

Regional OfficesCorporate OfficeBranch Offices

ChandigarhNew Delhi

Jaipur

AhmedabadVadodara

Mumbai Pune

Lucknow

Calcutta

Bangalore

R&D Centre

HyderabadVisakhapatnam

Chennai

1 Employee numbers as on November 30, 2003

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CMC Limited

Key Technology Groups

Well Recognized R&D Capabilities

� Vision –To develop comercially viable, high quality IT products and services using state-of-art technology to contribute to CMC’s long and medium term business goals. Key activities include :� Development of products� Development of technology to support business activities of SBUs

� With over 200 employees CMC’s R&D division forms the nucleus of CMC’s product development

Areas of Specialization

� Image processing and pattern recognition� Pervasive computing� Process Control� Networking and communications� Object oriented methodologies� Real time embedded systems � Internet security and e-commerce

� Real-Time Systems Group

� Embedded Systems Group

� Pervasive Computing Group

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CMC Limited

< 2 yrs15%

2 to 5 yrs35%

to 10 yrs26%

10 to 15 yrs8%

>15 yrs16%

Large resource pool of trained engineers in diverse technologies with varied skill sets helps

in end-to-end service delivery

50% of Regular employees have more than 5 years of experience. This pool serves as a

resource for CMC’s complex project management capabilities

Experience-wise Break-up of Employees Qualification-wise Break-up of Employees

Graduates59%

Diplomas12% Others

2%

PostGradua

& Profess

als27%

Sizeable Resource Pool

� Employee strength as of 30th November, 2003 - 3,074

iii Company Overview and Strategy - Strategy

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CMC Limited

Industry Growth Drivers

� Increased investments by financial institutions and banks in upgrading IT infrastructure

� Increased investment in IT by central & state governments� e-governance initiatives: AP, Karnataka, Tamil Nadu� Automation initiatives: revenue & land records

� On-going reform & restructuring in power sector with increased use of IT

� Investments by Indian Corporates in IT to enhance competitiveness

� Leverage Domain expertise for International projects

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CMC Limited

CMC Strategy

Value added services

Leverage domain expertise

Leverage Group synergies

Focus on quality and internal efficiencies

Focus on international market

Customer focused R&D

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CMC Limited

� Integrated end-to-end solutions

� Focus on large complex projects with multiple SBUs

� Strategic partnerships with

� Large customers

� Vendors

� Academic institutions

� Transportation - rail, road and shipping

� Banking, Financial institutions and Insurance

� Power and Mining sector

� Biometric security

� Joint bidding for large domestic projects

� Leverage marketing network for international business

Value Added Value Added ServicesServices

Leverage Domain Leverage Domain ExpertiseExpertise

Leverage Group Leverage Group SynergiesSynergies

CMC Strategy

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CMC Limited

Transportation - Rail, Road and Shipping - Our Service Offerings

� Railways� Design and develop a complete software solution to implement an integrated multi-passenger reservation system (IMPRESS)� Freight Management (FOIS)� Ticketing of Unreserved passengers (ARTS)� Materials Management (MMIS)

� Shipping � Products

� MACH (MArine Container Handling System) - for container terminals� CALM (CArgo Logistics Management System) catering to Bulk, Break-bulk & Ro-Ro operations� WARM (WARehouse Management System)� SWIM (SoftWare for Intelligent Messaging System) - An EDI engine

� Services � IT Consultancy Services, Professional Services, Training, Project Management Services, Software Implementation

Services, Migration Services, System Integration, On-site Support Services, Remote support services

� NIRDESHAK – DGPS based Vehicle Tracking System

� ARTS / POS – Ticketing Solutions

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CMC Limited

Banking - Our Current Offerings

� Core banking – TC/4 – Retail, Treasury, Trade Finance, Risk Management

� e-banking products - Gate-e-way, e-cheque, Credit card, WISeBank, I-Cert, Cheque Truncation

� Branch banking – BRAINS 2000

� Coop banks - B2K & COINS

� Home Loan System

� Payroll & HRMS

� DpSecure

� Services – Networking, Infrastructure development, Hardware supply and maintenance, Facilities management

� Education and Training

� Authentication service

� Event Notification Service

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CMC Limited

Securities – Our Offering Suites

DTSSClearing & Settlement VSTAR

Commodities Exchange DTSS

Interfaces MULTEX ITS

Stock Exchange BOLT VECTOR eVECTOR BBSDTSS GILT

MintsBack-Office DpSecure

Depositories VeDAS

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CMC LimitedCMC Limited

Insurance – Our Service Offerings

� Product / Solution development for existing clients

� Research and development covers Business requirements & new technology

� Maintenance and Technical Support to clients

� Product Upgrade and Version Management

� Regular in house training programs

� Proactive market development through� Interactions/ presentations/ demonstrations� Participation in seminars/ conferences

� Products � GENISYS (General Insurance Systems), GENISYS Enterprise, GENISYS Configurator� PROMPT (Call Registration & Management S/W)� InFAcS (Integrated Financial Accounting System)

32

CMC LimitedCMC Limited

Biometric Security

� Finger Print Analysis & Criminal Tracing System (FACTS) is the CMC Flag ship product in the area of Biometrics. Activity Scope includes providing Fingerprint based person identification solutions to :� Law Enforcement Segment� Civilian Segments

� Product line includes ; � FACTS Central: High-end full fledged AFIS� FACTS Finder: Scaled-down AFIS on a desktop� FACTS Remote Query Terminal: Limited featured AFIS on a desktop� Criminal Attribute Database: Criminal non fingerprint Attribute database

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CMC Limited

� Quality & excellence initiatives: CMM, CMMI, TBEM

� Certification drive: ITIL, CCIE, CCNA

� Marketing excellence: Mark@cmc

� Improving manpower utilization

� Improving reach: Dubai office

� Geography focus: developing strategy for - CIS, Ibero America, Middle east

� Leveraging domestic project experience for private sector and international markets

� Smart card

� SCADA / Metering solution

� Finger printing for civilian applications

� GPS / GIS

Focus on Quality Focus on Quality & Internal & Internal

EfficienciesEfficiencies

Focus on Focus on International International Markets and Markets and

Indian Indian pvt pvt sectorsector

Customer Customer Focussed R&DFocussed R&D

CMC Strategy

34

CMC LimitedCMC LimitedA TATA Enterprise

SCADA

� Products� OSKER - Unix based SCADA Product� Winspire – Windows based SCADA Product� SETSS - RDSO approved Standard Electric Traction Scada Software� Distribution Management System(DMS) and Energy Management System(EMS) for better monitoring,

analysis, operations and coordination of power distribution network and power transmission network

� Key Focus Areas� Power - Generation, Transmission, Distribution� Oil & Pipeline� Transportation� Process Automation

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CMC Limited

CMC - SWOT

� Strengths� Business model, combines both Hardware maintenance, IT services & IP portfolio for international and

domestic markets� Successful transition from hardware maintenance provider to a solution provider of full cycle complex projects� Multi-faceted experience� Leverage on domain skills to provide IT-centric solutions

� Largest third party maintenance company in India � Repository of ready packages/software that can be replicated� Large client base, serviced over the years, that can be efficiently leveraged for greater wallet share through

cross-selling� Trusted and Respected brand – Combination of ethics & culture of the TATA group and positive PSU legacy

� Opportunities� Growth through value addition and synergies� Surging domestic IT demand� Potential for leveraging domestic skills in international market and with private sector clients� Leveraging product suites in various projects� Platfom to launch and bid for large end-to-end IT services/infrastructure management projects, jointly with

TCS

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CMC Limited

CMC - SWOT

� Weaknesses� Revenues mainly from price-sensitive domestic business� High exposure to government entities (Railways, Ports, Defence, Customs)� End-user industries and complex nature of projects lead to long sales cycles� Pressure on employee costs� CS/SI businesses witnessing emerging models with higher capital intensity

� Threats� Global IT companies entering Indian market expected to intensify competition� Revenues dependent on IT spending budgets

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CMC Limited

Key Differentiators - Summary

Strong Growth in Key Segments

Sizeable Resource Pool

Well Recognised R&D capabilities

Sales and support reach in the domestic market

Wide range of service offerings & domain

expertise

Large project execution capability

Strong client base

2. Customer Services SBU

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CMC Limited

Overview

� 2002-03 revenues from Customer Services (CS) – Rs. 336.10 crs, CAGR for the last 5 years-17%

� H1 revenues from CS – Rs.216.07 crs

� Service offerings� Facility Management - Help Desk Management� Desktop Management - Server Management - Network Management

� Security - N/w Security, Audit

� Storage – SAN, NAS

� Building Management System – Video conferencing, Access control, AV system

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CMC Limited

Offerings of CS SBU

� Hardware Support� Sizing/Configuration/Specking� EQS� ICW Services

� Networking� Design� Topology� Implementation� Support/NOC� N/W Audit

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CMC Limited

Market analysis

� Govt. Dominated market� Slow decision-making process

� Sluggish growth in Govt. Sector

� Competiton from local PC manufacturers

� Emergence of new competition

� Non-Conventional payment models - e.g. Lease, BOOT, Rental

� ASP model

� Pricing pressure - depleting margins

Contd.

42

CMC Limited

Technology trends

� Technology� High multiplier effect on CMC’s share in total business segment growth � Embedded systems� Remote Infrastructure Management System(RIMS)� BPO/IT Outsourcing� Network Operating Centre (NOC)

43

CMC Limited

Tech

nolo

gy s

tren

gths

Bus

ines

s st

reng

ths Service strengths

Global strengths

� Multi vendor support� Geographical spread� Highly skilled manpower� One point support to customers, including

EES� Regular training and certificationprograms� Tie-ups with industry leaders

� IP Telephony� Wireless LAN� Security/VPN� Storage solutions� Video conferencing

� 18 major offices� 180 service locations� 520 non-resident locations

� Accreditations�Cisco - Silver partner�Microsoft - GOLD and MAPS�Sun - SCFE� IBM - ASP

� Tie-up with industry leaders� IBM, HP, Cisco, Enterasys, Sun,

Silicon graphics, Stratus, CA, Microsoft, Oracle etc.

CMC’s Value Proposition

44

CMC Limited

Process driven

� ITIL service management processes

� 24x7 call despatch center at all CMC offices

� Stores, spares available at each CMC office and at major customer locations

� Escalation procedure

45

CMC Limited

New DelhiNew Delhi

MumbaiMumbai

ChennaiChennai

CalcuttaCalcutta

HyderabadHyderabadPunePune

BangaloreBangalore

JaipurJaipur

ChandigarhChandigarh

LucknowLucknow

VisakhapatnamVisakhapatnam

AhmedabadAhmedabad NagpurNagpur

Service Network

46

CMC Limited

Strategy

� Value Added Services� Integrated end-to-end solution� Focus on large complex projects with other SBUs� Strategic partnership with large customer/ OEMs� High-end value added jobs

� Leveraging Domain Expertise� Transportation – GIS/GPS� Mining/ Power - RTS/SCADA/GIS� Biometric security

Contd.

47

CMC Limited

Strategy

� Leveraging partner’s strength� OEMs, Group companies

� International Marketing

� Franchising low `value-added’ business

� Targeting private corporates

� Disaster recovery solutions

� Focus on quality & internal processes� TBEM, CMMI, OLPICS

� Diversification

� Certification -ITIL, CCIE

3. Systems Integration SBU

49

CMC Limited

Overview

� 2002-03 Revenues from Systems Integration(SI) – Rs.9634 lacs, CAGR for the last 5 years-19%

� H1 Revenues from SI – Rs.3810 lacs

Service Offerings

Systems Development� Program/Project Management� Software Development� Integration� Deployment� Support and Maintenance� Training� Onshore and Offsite Projects

Product Development� Target Markets� Product Specifications� Product Core Groups (IP)� Development and Upgrades� Deployment, Support, Maintenance

Systems Consultancy� Requirement Analysis� Specifications Analysis� Design and Integration� Solutioning� Software Audits� Security Audits

50

CMC Limited

Market Requirements

� Current Market Requirements� Ready to deliver products� Integrated end-to-end solutions� Speedy delivery and geographically spread implementations� Price sensitive� State-of-the-art, N -Tier, WEB enabled, WAP Based, Latest version� Growing interest in E-commerce based applications� Enhanced support and maintenance� IT enabled services

51

CMC Limited

Market Analysis - Domestic

� The Domestic Market Opportunities� Government

� N Tier Solutions, E-Security, E-payments, Wide area networks

Potential of Re-engineering legacy systems as well as new prospects

� Private Sector� Large ERP based solutions � Packaged solutions (COTS)

Provide Implementation and Maintenance Support for Packaged Products

52

CMC Limited

Market Analysis

� The International Market Opportunities� Products & Solutions Market

� MEA, East Europe, Some of the APAC countries– Banking– Securities– Biometrics– TransportPotential of Re-engineering legacy systems

� Professional Services� Offshore and Onsite � US, Western Europe

– Various Domains e.g.. Power, control systems, e-Gov applications– Technologies such as RDBMS, DWH, Unix, C, C++, VB, VC++ etc, N Tier

53

CMC Limited

Our Market Differentiators

� Large product portfolio

� Proven domain expertise

� Leader in domestic SI business

� Major share in domestic market

� Nation-wide service and support network

� Excellent track record of large turnkey projects

� Perceived by the market as the organisation having� Reliability � Responsiveness � capabilities to be a long term partner

54

CMC Limited

Vertical Industry Practices

CMC has a vast depository of easily customisable packages and software

Frameworks/ Software Assets

� TC/4 Retail Banking System

� VECTOR -Stock Exchange System for Online Trading

� VEDAS -Depository Solutions

� DIGIPURSE

� GENISYS -Branch and division automation

� Interactive Voice Response Systems

Ban

king

& F

inan

ce

Insu

ranc

e

� Container Handling Systems

� Cargo Management Systems

� Railway Reservations

� Freight Management

� Hardware solutions

� ARTS� CUPS

Tran

spor

tatio

n

Pow

er

Min

ing

� NIRDESHAK -GPS based vehicles tracking system

� CRYSTAL -Mine planning package

� ERP for mines

� OSKER -SCADA based energy and power solutions

� Load Dispatch� Distribution

automation� Sub Station

automation� Demand side

management

E-G

over

nanc

e

Def

ense

� Air defense handling systems

� Radar data processing systems

� Airfield lighting and control systems

� Embedded software systems

Crim

inol

ogy

� FACTS -Completely automated fingerprint identification and retrieval solution

� Police Station Computer-isation

� VISTA/VOICE� Healthcare

solutions� Treasury

management� Networking� CM Info System� Commercial

Taxes

55

CMC Limited

Domain Expertise & Market Share

� Domestic Market Position

� Dominant� Dominant� Market Leader� Major Key projects� Major Player

� Niche Verticals

� Securities, Stock Exchanges� Insurance� Fingerprint Technology� Defense� E-Governance

56

CMC Limited

Delivery Strategy

Type TurnKey

Own Products

Third party products

One time delivery of third party products

Services

Training

Delivery Strategy and ProcessesSystem Integrator Role Industry Practice RoleImplementation and PM Sizing, Customisation, Product delivery, Pilot

Implementation

Implementation and PM Customisation, Delivery, Pilot Implementation

Implementation and PM Identification, Relationship management with the third party

Delivery and Implementation Relationship management with the third party

Delivery and Support Identification, Relationship management

Delivery, Implementation and support Customer relationship

57

CMC Limited

Leveraging the Domain

� Securities – Various stock exchanges

� Fingerprint System – Criminal and Civilian applications

� Defense - Embedded Systems, Real Time Systems, High end SW development, Simulation

� Power - Distribution Automation, SCADA, Energy Management, Utility Billing

� Transportation - Passenger Reservation, Freight Management, Ticketing Systems, POS, Marine Container Handling, Cargo management

� E-Governance - RDBMS, 3 Tier applications, large systems integration, Delivery platforms, common application groups

58

CMC Limited

Project Delivery Strategy

� Skills Upgradation strategy� Domain Skills

– Tie-up with Partners - Oracle, MS– Empanel Domain Consultants– Participating in Seminars/ Workshops etc.

� Technology Skills– Keeping track of emerging technology trends and – Identifying training needs– Encourage to achieve technology certification– Sustain specialist groups in application area– Build System and Application architecture groups

59

CMC Limited

Project Delivery Strategy

� Quality/ Productivity improvement strategy� CMM KPAs in place

� Metrics collection in Practice� All delivery centres at level 5 by 2nd Quarter 2004-05

� Relationship/ Account Management strategy� Identifying Accounts to be managed by IP or SI Champions� Placing Delivery Personnel in the regions to own all delivery responsibilities

60

CMC Limited

Delivery Process

� Delivery Teams� Technology Based teams� Delivery Head - Project Manager� Continuous customer interactions through reviews� Project Monitoring Tools� Customer feedback/complaints system� Compliant redressal� Support and Maintenance strategy� Release management� Configuration Management

61

CMC Limited

Major Strengths - Recap

� Large product base

� Fast delivery and implementation

� Continuous technology upgradation

� Leading edge technologies

� Global Exposure

� Leverage Product based solutions

62

CMC Limited

Key Challenges for CMC

� Competition from smaller companies

� Shortened project life cycles

� Increased Demand for COTS

� Pressure on margins

� Global majors in domestic market

63

CMC Limited

Our current value proposition

� Long term trusted partner� CMC is always willing to travel that extra mile to ensure the success of the project and to partner with the

customer through his business cycle

� CMC offers win win solution to its customers based on long term customer\retention strategy

4. ITeS SBU

65

CMC Limited

Overview

� 2002-03 Revenue 3100 Lacs, CAGR 45% for the last 3 years

� H1 Revenues from ITeS – Rs. 1747 lacs

� Significant domestic presence in the forms processing market

� Leading supplier for Election Commission of India

� Have set up over 15 corporate web sites which could be expanded to provide composite services

� Have a largely satisfied customer base

� Executing the largest ICR project in the country

66

CMC Limited

CMC’s service offerings leverage on its strengths

� INDONET - Data Center & Business Continuity Services

� INDOCZ - Document Management Services

� INDUCTZ - Examination / Recruitment Services

� INDORZ - Facilities Management Services

� INDITEZ - Web Design and Hosting Services

� INDIVIZ - Smartcard & Biometric Security Solutions

67

CMC Limited

CMC’s Target Markets

� DOMESTIC� Expanding forms processing market� Expanding cards preparation business� Consolidation of business in web hosting/ portals/ ISP sectors� EDI in core sectors yet to take off� Data storage/ Archival/ Warehousing yet to take off� IT Enabled Services

� Call Centres operational� Niche markets exist

68

CMC Limited

Target Markets

� INTERNATIONAL� Management of Data Centres� Call Centres for Mfg./ Banking/ Insurance Industries� Web design/ development/ hosting Services� Professional Services� Data migration � Digitizing , Archival and Retrieval Services� BPO for HR, SCM , Sales automation

69

CMC Limited

Market Segments – Key

� Judiciary

� Central and State Govt. Departments

� Banks, Finance,Insurance and Securites

� Licensing / Registration Depts. – Land Records , Ration Cards, Election Commission, RTO, Toll, etc.)

� Educational Institutes

70

CMC Limited

Market Segments – target for the near term

� Publishing Houses, Libraries

� Transport

� Manufacturing

� Oil Companies

� Telecom Companies

� Power

� Services

71

CMC Limited

Analysis of the market and CMC’s offering

72

CMC Limited

The global ITES and BPO industries are growing at a rapid paceWorld-wide ITES market breakout by process area

World-wide ITES market breakout by geography

Un ited S tates54%E u rop e

31%

Can ad a4%

J ap an3%

Latin Am erica2%

As ia/P acific5%

Res t of th e W orld

1%

World-wide BPO market (Total US$543bn) `breakout by Process Area 2004

Ad m in is tra tion4%

S ales /Mktg ./ Cu s tom er Care

5% Dis trib u tion / Log is tics

15%

Fin an ce & Accou n tin g

7%

HR14%

P aym en t S ervices

9%

Mfg . S ervices

44%

World-wide BPO market (Total US$543bn)breakout by Process Area 2004

Ad m in is tration4%

S ales /Mktg ./ Cu s tom er Care

5%Dis trib u tion /

Log is tics15%

Fin an ce & Accou n tin g

6%

HR13%

P aym en t S ervices

8%

Mfg. Services

49%

World-wide BPO market (Total US$ 208 bn)breakout by Process Area 1999

Source: Gartner Dataquest

United S tates52%

Euro pe32%

Canada4%

J apan4%

Latin America2%

As ia/P ac ific5%

Res t o f the Wo rld

1%

World-wide BPO market (Total US$ 208 bn)breakout by Geography 1999

Source: Gartner Dataquest

73

CMC Limited

• Improved efficiency• Avoidance of capex on non-

core activities• Increased customer

satisfaction

Attention on core activities

Growth drivers for the ITES industry

• Reduction in risk of technological obsolescence• Reduction in overall management burden while

retaining control of strategic decision making• Keep pace with changing standards

Strategic Benefits

• Improved speed of service• Leveraging provides

investments in technology, methodology and people

• Providers expertise derived from standardisation

• Access to best practices and proven methodologies

Skill expertise benefits

• Savings on manpower and training costs

• Reduced operating costs• Reduced overheads• Avoidance of cost of chasing

technology

Cost reduction

Drivers to Ousourcing

3.9%

6.8%

6.8%7.

8%7.

8%8.7%

11.7

%15.5

%16

.5%

17.5

%20.4

%24.3

%30

.1%

0%B

e Fi

nanc

ially

sta

ble

Dis

play

Tec

hnol

ogic

al L

eade

rshi

p

Be

a St

rate

gic

Play

er

Del

iver

on

time

Add

valu

e to

the

Clie

nt's

Bus

ines

s

Be

Flex

ible

Hav

e P

rove

n R

efer

ence

s

Dur

ing

Del

iver

Pro

vide

Goo

d &

Res

pons

ive

Cus

tom

er S

ervi

ce

Cle

arly

Com

mun

icat

e w

ith C

lient

Focu

s on

Ser

vice

Qua

lity

Don

't O

verp

rom

ise

Focu

s on

Und

erst

andi

ng th

e C

ompa

ny's

Bus

ines

s

Focu

s on

Cos

t Red

uctio

n

35%

% o

f Res

pond

ents

The singlemost important reason however, seems to emanate from the cost advantages of outsourcing

74

CMC Limited

The Indian market has shown significant growth in various segments

� Indian firms are graduating from IT-enabled services (part subcontracting by a BPO vendor or outsourcing of activities as opposed to a function) to building BPO capabilities

� Share of global wallet is still meager at 0.5% by value (source : IDC)

Indian performance 2000-01 US$ mn

Source: Nasscom

1999-00 2000-01 Growth 2007-08F CAGR (2001-08F)

Customer interaction 92 184 112% 4,198 57.1%

Backoffice / HR / Accounting / Finance / Data entry 218 293 42% 4,407 48.0%

Content development / Animation / Engineering Division 188 347 95% 5,247 48.1%

Market Research / Remote Education / Consultancy 25 30 27% 2,309 86.5%

Transcription, Translation 28 35 33% 840 58.4%Total 550 890 62% 17,000 47.0%

75

CMC Limited

Competitor Analysis

� Many competitors are CMC’s vendors

� Price advantage due to lower overheads

� Smaller outfits� Quicker to react on investments� Have fragmented market share

76

CMC Limited

CMC Value Proposition

Providing these Services for over 25 years

Well versed with 24x7operational support

In the process of acquiringCMM level 5certification

TCS support

Why CMC ?

R&D (Tools, Methodology)

Large Number ofSuccess Stories

Working hand in hand with Fortune 500

Companies

Certified Professionals

Strategic Alliance with Major SW/HW

Networking Vendors

Proven Competency in supporting Clients using the

OnSite - Offshore Model

77

CMC Limited

In-house Infrastructure

� Competency centers at Delhi, Mumbai, Kolkata, Chennai, Bangalore and Hyderabad

� Amtrix EDI engine and robust examination processing & election roll management sw

� Reliable IP based Indonet network

� 24 x 7 Data centers at all metros

78

CMC Limited

Superior Service Delivery Framework

Enhance Business Value through Continuous ImprovementEnhance Business Value through Continuous Improvement

Customer Satisfaction

OperationalExcellence

PeopleExcellence

ProcessExcellence

Techn

ology

Excell

ence

Quality Assurance

Strategic Planning

Performance Measurement

Best Practices

Customer Satisfaction Survey

Customer feedbackMSQ

MSQ

MSQ

79

CMC Limited

Delivery Capabilities

� CMC aligns all its IT infrastructure Management activities in line with the processes as specified in the IT Infrastructure Library

� Follows best practices in IT Service Management� Change Management� Configuration Management� Problem Management� Release Management

80

CMC Limited

Our Strategic Partners

� NEWGEN & Fortune Informatics - Document Management and work flow solutions

� Top Image Systems, Israel - ICR / OCR imaging solutions

� Inspira Sw - Asset and Infrastructure Management

� DPS Technologies - CAD / CAE / GIS Solutions

� Newtec, Belgium - 2 way satellite based digital video broadcast Solutions

� TISL - Datacenter mangement

� Tata Net - Satellite based IP network

� Datastrip, UK - card based identity solutions

81

CMC Limited

International Market Strategy

� Leverage TCS presence in the worldwide marketplace and position ITES as a cost effective offshore outsource facility

� Replicate our success in key customer

82

CMC Limited

How would our Value Proposition be different / superior?

� TCS partner leverage

� TATA brand name

� Nationwide Operation

� End-to-End Solutions

� Cost effective Services

� Customer Satisfaction/ Retention

5. Education & Training Overview

84

CMC Limited

Overview

� 2002-03 Revenues from Education & Training (E&T) – Rs.2481 lacs, CAGR for the last 5 years-(7%)

� H1 Revenues from Education & Training (E&T) – Rs.797 lacs

� Activities� Franchisee Business � Non Franchisee Business� Centre of Education Technology

� Centres – Franchisee – 200, Own – 7

� Courses – Skill development, Long term courses, High end courses, Certified courses(Oracle,MS,Sun,Cisco)

85

CMC Limited

Industry Scenario, Market Share, Opportunities

� Industry Scenario & Market share� CMC’s Training business ranks 3rd after NIIT & Aptech

� Opportunities� Large BPO/Call Centres opening in India� Major IT Literacy drive in schools � Moving in MEA, CIS, China, SEA

86

CMC Limited

Strategies

� IT/Skill development outsourcing� IT Companies� BPO

� Certification centres

� Focus on China, Asia, CIS, MEA, Korea etc. - Joint centres

� CBT development on HP/SUN/IBM, IT, Domain knowledge

� High-end training centres jointly with SUN, SAP, HP, Oracle APPS+Fin, Microsoft, SIEBEL, CISCO, Navision

87

CMC Limited

Strategies

� Venturing into e-Learning domain in India and abroad

� Netg eLearning for Corporate

� Thrust on skill development course & vendor certified courses

� Thrust on School education

� Developing Distance Learning Model with Institutes/corporates

6. HR Overview

89

CMC Limited

HR Beliefs

� Trust and Faith

� Flexibility

� Open Culture

� Development of Staff is a Prime responsibility of the company

� Concern for Individuals

90

CMC Limited

Unique policies

� STAFF RELATED:� No restriction for Time off/ Sick-off : Need Based� Facility to extend maternity leave� Additional Medical benefits in case of need� Various types of awards� Unique on-line PMS/SPEED � Maitree & CMC staff recreation Clubs -cultural &

sports activity� Holiday Homes

91

CMC Limited

Unique policies and practices

� Motivational� Study leave for two years � Scholarship scheme-two years with pay� Self development subsidy-reimbursement of

fee,one increment� Self approval facility for top officials� Speak-out -staff write directly to MD/CEO

� Organisational Culture� Flexibility in the area of work� Minimum checks & control� Seniors even MD/CEO directly accessible� Staff may interact with any top official even

MD/CEO� Open culture� Seniors addressed by name and not ‘Sir’

92

CMC Limited

Compensation structure

� Performance to drive & determine individual Compensation

� Incorporates the best practices of the industry, higher flexibility, self-determine & provide tax-friendly options for maximum benefit and thereby increasing take-home

� Compensation consist of Fixed & Variable components

� In-house, on-line system ‘REWARDS’ – Recognition, Employee Welfare And Remuneration Determining System, for compensation management

� Fixed Compensation based on Cost-to-company structure replacing the reimbursement based structure. Two major components – Basic Pay & Bouquet of Allowances. Bouquet arrived by monetisation of current entitlements.

� Variable Compensation determined based on the performance of the company, SBU and individual.

HIGHLIGHTS OF THE REVISED

COMPENSATION PROPOSAL

FIXED & VARIABLE - MAJOR

COMPONENTS OF

COMPENSATION

93

CMC Limited

Variable allowance

� Variable allowance based on � Individual performance (Top 20%, Next 50 & Next 30%)� SBU Performance� Grade or management band� Role Profile (Technical & Functional)

� Total VA distribution amount decided by the Board based upon Company Performance

94

CMC Limited

< 2 yrs15%

2 to 5 yrs35%

to 10 yrs26%

10 to 15 yrs8%

>15 yrs16%

Large resource pool of trained engineers in diverse technologies with varied skill sets helps

in end-to-end service delivery

50% of Regular employees have more than 5 years of experience. This pool serves as a

resource for CMC’s complex project management capabilities

Experience-wise Break-up of Employees Qualification-wise Break-up of Employees

Graduates59%

Diplomas12% Others

2%

Post Graduate

& Professio

s27%

Resource Pool Breakup

� Employee strength as of 30th November, 2003 - 3,074

95

CMC Limited

SBU Staff CountCS 1018SI 1003ITeS 90E&T 66PCG 219R&D 312Supp 346Others 20

3074

Resource Pool Breakup

� Employee strength as of 30th November, 2003 - 3,074

SI32%

Others1%

Supp11%

E&T2%

ITeS3%

PCG7%

CS34%

R&D10%

7. Financial & Subsidiary Company - Overview

97

CMC Limited

Financial Summary (Standalone)

565615

534469

346

0

100

200

300

400

500

600

700

FY99FY00FY01FY02FY03

(Rs. crs)

CAGR = 16 %

34 37

24

137

6%6%

5%

3%2%

05

10152025303540

FY99FY00FY01FY02FY03

(Rs. crs)

0%

1%

2%

3%

4%

5%

6%

7%

PAT PAT Margin

28%29%

45%48%

36%

16%23%

34%30%

36%

0%

10%

20%

30%

40%

50%

60%FY99

FY01

FY03

ROCE RONW

Revenues Profitability Return Ratios

CAGR = 50 %

98

CMC Limited

Key Productivity Indices

18.92 18.9419.3115.88

11.66

0.00

5.00

10.00

15.00

20.00

25.00

FY99

FY01

FY03

(Rs. Lakhs)

Revenue Per Person Year Value Added to Manpower Cost PAT Per Person Year

3.04 2.863.27

2.622.74

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

FY99

FY00

FY01

FY02

FY03

(Times)

113 114

88

43

25

0

20

40

60

80

100

120FY99FY00FY01FY02FY03

(Rs. '000)

Revenue per person - Total revenue divided by average employee for the yearValue Added to manpower cost: (Total Revenue less material costs for equipment and component)/Total employee compensation

99

CMC Limited

FY 2003: Highlights of Financial Performance

� Total revenue at Rs. 615 crores up 8.7% y-o-y. Operating Revenue up 11.2% at Rs. 608 crores.

� Quality of revenue improves with other incomes contributing only 1.1% to total revenue compared with 3.3% last year

� Operating margins improve from 7.8% in FY 2001-2002 to 9.8%

� PAT growth of 10.1% to Rs. 37.1 crores.

� Revenue growth driven by International business, which is up 55.7%; international business share increased from 14% to 20%

� E&T segment continues to face sluggish market conditions – revenue down by 49.4%

� Operating costs as percentage of operating revenue declined from 92.2% to 90.2%; manpower cost declines from 20.6% to 19.8%

100

CMC Limited

FY 2003: Highlights of Financial Performance (Consolidated)

� Consolidated revenue at Rs. 679 crores up 5.4%

� CMC Americas (formerly known as BRI) revenue have fallen from $31.26 million to $ 24.65 million (April-March period). However, CMC Americas pares losses to $0.31 million compared to $ 1.26 million last year

� Major restructuring and cost rationalization at CMC Americas during the year

� Consolidated operating margins improved from 5.2% in FY 2002 to 8.8%

� Consolidated Profit After Tax at Rs. 36.4 crores up 85% y-o-y

101

CMC Limited

Total Revenue

553565

615

520

540

560

580

600

620

FY01 FY02 FY03

(Rs crore)

CAGR: 5.5%

PBDIT

51.361.1

66.1

010203040506070

FY01 FY02 FY03

(Rs crore)CAGR: 13.5%

PAT

25.1

33.637.1

05

10152025303540

FY01 FY02 FY03

(Rs crore)CAGR: 21.6%

(1) Standalone financials; Year ending March 31, 2003

FY 2003 Financial Performance: Revenue & Profits(1)

102

CMC Limited

PBDIT Margins

9.3%

10.8%

10.8%

8.5%

9.0%

9.5%

10.0%

10.5%

11.0%

FY01 FY02 FY03

PAT Margin

4.5%

6.0% 6.0%

0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%

FY01 FY02 FY03

Operating Margins

6.8%7.8%

9.8%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

FY01 FY02 FY03

Operating margins improved through focus on international business & better manpower utilization despite tough market conditions

(1) Standalone financials ; Year ending March 31, 2003

FY 2003 Financial Performance: Margins(1)

103

CMC Limited

FY02

55%

4%

9%

14%

3%

15%

FY03

54%

4%

20%

1%

5%

16%

Growth

6.8%13.9%

43.7%

-49.4%

55.7%

-50%

0%

50%

Customer Services System Integration ITES Educational Training International

Growth driven by International business - effective leveraging of TCS

Customer Services

System Integration

ITES

Educational Training

International

Others

(1) Standalone financials ; Year ending March 31, 2003

FY 2003 Financial Performance: Segmental Revenue(1)

104

CMC Limited(1) Standalone financials

Half Yearly - Financial Performance: Segmental Revenue(1)H1- FY03

46%

4%

6%

23%

1%

20% H1-FY04

64% 2%

17%

1%

5%

11%Customer Services

System Integration

ITES

Educational Training

International

Others

105

CMC Limited

FY02

24%

28%

20%

14%

14%

FY03

20%

25%

20%

21%

14%

Growth

-6.7%

11.1%

-14.9%

39.9%

55.7%

-20%

30%

North East West South International

North

East

West

South

International

(1) Standalone financials ; Year ending March 31, 2003

FY 2003 Financial Performance: Regional Revenue(1)

106

CMC Limited

Total Revenue

679

644

620630640650660670680690

FY02 FY03

PBDIT

46.6

65.9

010203040506070

FY02 FY03

5.5%

PAT

19.7

36.4

05

10152025303540

FY02 FY03

41.4%84.8%

(1) Year ending March 31, 2003

(Rs Crore)(Rs Crore)(Rs Crore)

FY 2003 Financial Performance: Consolidated(1)

107

CMC Limited

Highlights of Performance – HYE September, 2003

� Total Revenue in H1 up 47% at Rs. 343 crores compared with 234 crs in last year. Consolidated Revenue at Rs. 365 crs.

� Profit before tax up 36% at Rs. 24.3 crs.; Consolidated PBT at Rs. 23.4 crs.

� Total Revenue for Q2 at Rs. 184 crs. up 35% y-o-y and 15 % q-o-q

� PBT for Q2 at Rs. 12.5 crs. up 49% y-o-y and 7 % q-o-q.

� Revenue Growth driven by CS and ITES – CS up by 98%; ITES up by 86%.

� International Revenues growth at 9%.

� PAT per person month up by 28%

108

CMC Limited

Total Revenue

234.0

343

0.050.0

100.0150.0200.0250.0300.0350.0400.0

FY 03 FY 04

PBDIT

21.9

30.0

05

101520253035

FY 03 FY 04

47%

PAT

13.0

16.6

0.0

5.0

10.0

15.0

20.0

FY 03 FY 04

37% 27%

(Rs Crore)(Rs Crore)(Rs Crore)

Strong Volume growth neutralized the impact of pressure on margins in tough market conditions

H1 Financial Performance (Standalone)

109

CMC Limited

NVA Per Person Month

67.7

71.2

6566676869707172

FY 03 FY 04

NVA/Employee Cost

2.14

2.43

1.9

2.0

2.1

2.2

2.3

2.4

2.5

FY 03 FY 04

5%

PAT Per Person Month

6.6

8.5

0

2

4

6

8

10

FY 03 FY 04

13% 28%(‘000 Rs)(Times)(‘000 Rs)

Focus on improved manpower utilization to reduce costs and increase profits

H1 Financial Performance – Productivity (Standalone)

110

CMC Limited

Revenue Mix (By activity)

Above table is based on unaudited financial data

Period ended <----------- Year ended March ----------->(Rs. Crs.) 30.9.2003 2003 2002 2001

(a) Sale of purchased equipment 173 50% 262.12 43% 225.71 40% 232.42 42%(b) Services

(i) Software services 84 25% 185.62 30% 159.37 28% 141.56 26%(ii) Maintenance services 40 12% 78.39 13% 76.19 13% 66.63 12%(iii) Other services 32 9% 56.19 9% 35.8 6% 36.43 7%

(c) Education and training 8 2% 24.67 4% 48.44 9% 59.38 11%(d) Lease rentals 0 0% 0.99 0% 1.2 0% 1.26 0%

Total Sales 337 98% 607.98 99% 546.71 97% 537.68 97%(e) Other Income 6 2% 6.74 1% 18.63 3% 14.93 3%

343 100% 614.72 100% 565.34 100% 552.61 100%

111

CMC Limited

Revenue Mix (By SBU)

Above table is based on unaudited financial data

Period ended <----------- Year ended March ----------->(Rs. Crs.) 30.9.2003 2003 2002 2001

Domestic CS 215 64% 336.1 55% 314.62 57% 296.18 55%SI 37 11% 96.34 16% 84.61 15% 79.92 15%ITeS 18 5% 30.1 5% 20.94 4% 13.05 2%E&T 8 2% 24.81 4% 49.06 9% 59.38 11%Total 277 82% 487 80% 469 86% 449 83%

International 59 18% 121 20% 78 14% 89 17%

Total 337 100% 608 100% 547 100% 538 100%

7. Financial & Subsidiary Company - Subsidiary Company Overview

113

CMC Limited

CMC Americas, Inc. - Overview

� Incorporated as Baton Rouge International, Inc. on 7th October, 1991 in the state of Delaware head quartered in Louisiana; 100% owned by CMC Limited.

� Formed as a separate corporation consequent upon acquisition of Baton Rouge division ofFiserve Financial Systems by CMC Limited on 1st October, 1991; operations in existence since 1979

� Renamed as CMC Americas, Inc. in May, 2003

� Offices in 10 cities in US.

� CMC’s front end in US for CMC’s products and services

� Revenue of US$ 26 million in 2002

� Activities include Consulting, Project implementation, Project Resourcing, Outsourcing both onsite and offshore

114

CMC Limited

CMC Americas, Inc. – Overview (contd….)

� Business Systems Group:� Data Warehousing� Enterprise Application� Enterprise Management� E-consulting/Web Technologies

� Engineering Systems Group:� ECAD� Embedded Systems � SCADA

115

CMC Limited

CMC Americas, Inc. – Financial Performance

(Million $)2002 2001 2000 1999 1998

Revenues 25.75 35.42 41.65 28.68 23.77 Operating ExpensesManpower expenses 15.62 21.46 22.60 16.03 13.14 Other Operating expenses 11.22 13.80 15.72 11.73 10.14 Total Operating expenses 26.84 35.27 38.33 27.77 23.27 Profit/(Loss) from Operations (1.08) 0.15 3.33 0.91 0.50 Depreciation and amortization 0.19 0.79 0.75 0.11 0.05 Loss from impairment of capitalised software development costs - 1.73 - - - Interest (income)/ expense 0.04 (0.09) (0.04) 0.08 0.03 Profit/(Loss) before Tax (1.31) (2.28) 2.62 0.73 0.42 Tax expenses/(Benefit) (0.38) (0.66) 1.06 0.18 0.13 Net Profit / (Loss) (0.93) (1.61) 1.57 0.55 0.29

Year ended 31st December

116

CMC LimitedCMC Limited

Thank You