MANAGEMENT DISCUSSION AND ANALYSIS

INDIAN ITES INDUSTRY - DEVELOPMENTS AND OUTLOOK

Indian IT / ITES or BpM (Business project Management) industry is estimated to grow at a rate of 8.5% in FY 2016 growing from USD 132 Bn in FY 2015 to USD 143 Bn in FY 2016. The aggregate growth rate is lower due to US Dollar strengthening against Indian Rupee bringing the domestic market growth at a mere 3.2%. Exports are likely to record a 10.3% growth to reach over USD 108 Bn up by USD 10 Bn over last year. Domestic IT BpM market is at USD 35 Bn and grew by a little over 3%.

Indian ITES (BpM) industry is steadily growing and grew by 8% in FY2016, and is expected to touch revenues of USD 28 Bn - increase of 2 Bn over brvious year. BpM industry share in total IT / ITES (BpM) Industry is increasing and for the year, the share was at 20%.

Exports

BpM exports are driven by Business process as-a-Service (BpaaS,), Mobility and Advanced Analytics. It grew by 8% in FY 2016 to touch USD 24 bn as compared to USD 22.5 bn in the brvious year.

Domestic

Domestic BpM segment is largely driven by BFSI, telecom and Ecommerce; also growing consumption pattern in Tier II / III Cities and rural areas is translating into opportunity for value added services. Domestic BpM industry is likely to grow over 10% to USD 4.0 Bn; from USD 3.5 Bn in the brvious year.

Future Outlook

By 2020, as per NAASCQM, India's IT / ITES (BpM) industry total revenue is projected to touch USD 200 -225 Bn and between USD 350 - 440 Bn by 2025.

Y Core Competency

The strategy of Allsec has always been to grow by developing its expertise in specific verticals. This has helped us sharpen our training & processes for specific domains enabling us to achieve domain specialization resulting in delivering quality solutions to each of our customers. Your company prides itself on its quality centric, speedy and nimble footed approach

Digital technologies will continue to grow at a faster pace and revenues from this will have a share of 23% in 2020 and around 38% in 2025. Lots of opportunity for the Indian service providers in this digital space, as digital technologies continues to be embedded in an ever widening range of products and services.

The dynamics of Indian ITES (BpM) industry has shifted from a cost based to a value based proposition with benefits accruing to the Client is paramount consideration than cost reduction. Indian BpM service providers have to reach out to new cadre of Customers, place more focus on customer satisfaction, and migrate processes to business process as-a-service (BpaaS) and use analytics as an integral part of their services. The future outlook for Indian BpM industry points towards new business model and expansion to new geographies, verticals and markets.

NAASCQM has projected ITES (BpM) exports to be somewhere between USD 35- 40 in the year 2020. It has projected BpM domestic business to be somewhere between USD 6.0 - 7.0 billion in the year 2020.The domestic BpM market is expected to be dominated by CIS (Customer Interaction Services) and BFSI sector in the near future.

Company Overview:

Your company is a global player with vast expertise in providing business process solutions across various industry verticals.

Your Company's solutions are testimony to the fact that Allsec is a highly customer-centric, flexible and transparent service provider. Your company believes in enhancing our client's business experience by taking process responsibility, improving cost efficiencies, and adding value through continuous process improvements and quality assurances.

OPPORTUNITIES

Y Core Competency

The strategy of Allsec has always been to grow by developing its expertise in specific verticals. This has helped us sharpen our training & processes for specific domains enabling us to achieve domain specialization resulting in delivering quality solutions to each of our customers. Your company prides itself on its quality centric, speedy and nimble footed approach in every client engagement. The constant focus on process improvement by automation and continuous benchmarking of delivery to improve focus, have resulted in customer satisfaction every time. Our customers stand testimony to our track record of providing outstanding customer experience and maximizing their Return on Investment. Building Lasting Relationships has always been our culture and that focus enables us to deliver enhanced business value, a culture that inspires our actions and is a part of our DNA.

We expanded our offering in the domestic market by positioning our services to suit the domestic business with its unique features like multi language requirements etc. We are now a leading provider of outsourced solutions in customer engagement, sales & retention and quality assurance for businesses across BFSI, Mortgage, Telecommunication, Retail, Healthcare, Energy & Utilities and Technology.

As one of the largest outsourced payroll service providers today, Allsec manages some of the most complex pay and tax scenarios, for both global and domestic organizations from various industries. We are a market leader for payroll management and HRMS, handling thousands of employees across various industries. Qur HRMS & payroll solutions, which are custom made to fit specific requirements, have benefited large, medium and small organizations alike.

Client Acquisition

The focus on winning fresh clients across geographies where we can serve, on the strength of our core competencies, on the basis of our track record of delivery and positive client references is an ongoing process. With our philosophy of long term client relationships, we are sure that we will be able to maintain our track record and strike long term relationships with all our International & Domestic clients.

In non-voice segment, our best in class Quality Assurance process has triggered great interest in many of the captive / outsourced centres of domestic Telecom and BFSI segment clients. Having acquired knowledge and experience of servicing in different Indian languages and with the pan-India brsence, there are enough opportunities to grow this multi fold in India over and above our efforts internationally.

HRQ business division is a vertical which is growing organically for us and this will continue in the coming years too. Our plan to expand HRO division to new geographies has been received very well and we have got good response in phillipines as well as the middle east and other parts of Asia. We are confident of increasing our client base internationally in the coming year. The new markets in Asia and the US / UK markets will be the key growth area for the future in the HR BpO business and marketing efforts will be increased to market in destinations like UK / USA in the coming year. We believe HRO division business will continue to see a significant growth in the next few years.

Quality

The vision of Quality and Information security at Allsec is to institutionalize excellence in quality of services and security of data of Clients, customers and Qrganization by developing and deploying simple, efficient and effective processes using the latest Quality models in accordance with ISQ 9001:2008 interlined with data security controls brscribed by International standards such as ISQ 27001:2013. ISQ 9001:2008 (Quality Management System) and ISQ 27001:2013 (Information Security Management) have been renewed at Chennai locationand ISQ 27001:2013 has been renewed for the Manila location. pCI DSS compliance certifications have also been renewed at Chennai and Manila locations. We have also been certified for ISQ 27001:2013 at the Dallas location. Further, existing ISAE 3402 which is a graduated version of SAS 70 Type II certification for HR BpQ is renewed. Several client audits took place on information security and data privacy at all our service delivery locations and results indicated that the company accomplished required compliance with their contractual and standards requirements.

Y Capacity

Today, your company has a pan India brsence and a capacity of over 2500 seats with facilities in 3 locations which are in Delhi, Bengaluru, and Chennai. Apart from India, we also have a capacity of 600 seats in Manila and around 200 seats in USA.

We have demonstrated in the earlier years our ability in setting up new Centers to cater to ramp up decision of our clients and we are confident of achieving the same in the future as well. Qur strategy of right sizing capacity to match current demand have borne fruits in the past few years and capacity utilization will continue to be the focus for any new addition / closure decisions.

THREATS

ATTRITION:

Your Company, is in an industry where attrition is one of the major concern areas. Allsec has an annual attrition of 36% (up from 33% last year) which is almost similar or slightly lower than Industry average.

The Company in the international business faces tough challenge in getting employable manpower from the available manpower pool. Allsec has been investing a lot of resources for training candidates on the basic skills that are required to make them employable. These are also done through partnering with educational institutions and governmental organization.

The attrition rate in the Domestic segment is also on similar lines. Your company has extended its learning in the International segment to Domestic market and necessary processes are in place to ensure that right candidates are being hired, trained and retained. However, the availability of employable candidates is higher in the pool available for Domestic segments.

Attrition is a great problem not only for Allsec but for the whole industry. To overcome attrition, Allsec is taking a number of measures including Mentor-Mentee system, Individual counselling etc, to maintain work force stability. The focus is on maintaining the service level and quality of delivery in spite of the attrition challenges by developing robust processes.

RISKS AND CONCERNS

BUSINESS RISKS

As discussed in the first few paragraphs, the business risks involved in our industry are varied.

The International outsourcing division was affected by the global slowdown and we are actively increasing the marketing activity both by increasing the feet on street sales force as well as increase the marketing team and by doing more targeted marketing. The offshore servicing business which yields exports revenue has not grown and it continues to have a lower Capacity Utilization. We have teams in US as well as consultants in UK & Australia and will keep putting efforts to grow this business.

The Domestic outsourcing division is improving gradually and pricing in the market has been increasing gradually. We now have good capacity utilization in this business at rates which are much higher than what we were getting 2 years back. The plan is to keep looking for strategic contracts where we can command higher rates and make this business more profitable.

HR BpO division is a vertical which is growing organically for us and this will continue in the coming years too. Marketing efforts will be increased to market in destinations like Manila, Middle East, UK and in the US in the coming year. The potential for growth in this division is very high and efforts are on to maintain the momentum.

Y GEOGRAPHICAL CONCENTRATION OF CLIENTS

Your Company has a global footprint and the revenues are dependent on clients located brdominantly in US. As a strategy we continue to focus on increasing the share of our Revenues from US / UK as the margins are better compared to Domestic business. As a result, the Company is exposed to various risks typically associated with doing business in various counties, many of which are beyond the control of the management.

Y EXCHANGE FLUCTUATION

Movements in exchange rates continue to be a major threat. There has been volatility in the exchange rate between INR and USD in the recent years and these currencies may continue to fluctuate significantly in future as well. However, the rupee remained at the level of around INR 65 to a $ for most part of FY 2016 and has helped our company realise better. We are currently adopting hedging strategies as approved by the Board and in addition use bank balances in foreign currency to meet our foreign currency liabilities. Also the increase in share of domestic revenue will mitigate this risk to an extent though Margins are always better in the international business. Qur results of operation will be affected if the rupee-dollar rates continues to behave in a volatile manner in future or rupee apbrciates significantly against dollar and other currencies.

Y INDIAN TAXATION RISK

Taxes and other levies imposed by the Government of India and / or various states including Tamilnadu may affect our performance. In particular we will be affected by new taxes and laws levied by authorities. We are taking adequate efforts to comply with the entire statutory requirement on an ongoing basis and the same is subject to Internal Audit on a quarterly basis. We also take the help of external consultants to handle specific issues as and when it arises.

Y CUSTOMER CREDIT RISK

Your company follows a process of due client qualification in respect of orders received and contracts signed. However owing to business reasons or reasons specific to delivery / disputes there are collection risks which the company faces. There is a regular follow-up process to ensure that amounts due are billed in time and collections received in time. Regular quarterly confirmation of balance is also obtained from major clients. Due provisions are made in accounts for amounts considered not collectible.

Y LEGAL AND CONTRACTUAL RISKS

Our business is subject to a variety of country specific regulations. particularly, we must comply with a number of laws in the United States in relation to debt collection and telephone and email based solicitation and the mortgage servicing businesses.

The requirements of many of these regulations are complex and the failure to comply could result in enforcement or private actions which can potentially affect our reputation and in turn adversely affect our business. In addition, these laws are subject to change and new laws affecting our business may be enacted, which could significantly affect the demand for, and our ability to provide certain service offerings and significantly increase the cost of regulatory compliance. However on an ongoing basis we have taken the following steps to mitigate this:

? We have complied on ongoing basis with all registrations / renewals concerning telemarketing and collection licenses in USA. Our Legal / Secretarial Dept. have an internal monitoring mechanism as well as through attorneys / firms appointed in US for attending the same.

? We have complied with all relevant provisions governing call centre business in India such as DOT approval and adherence to Do Not call Registry norms.

? All Registrations as required under STpi / Customs / Labor laws and State laws are adequately monitored and complied with.

? There are no specific issues or noncompliance notified in any of these areas during the quarter.

? In respect of client and other commercial contracts such as lease and other purchase contracts adequate measures are in place for vetting the contracts by Legal Dept and due vetting and clearance procedures are followed before signing of contracts.

Y INFRASTRUCTURE RISKS

The Company has invested substantially in the state of the art infrastructure and equipment in its centres to provide a world-class service to its customers. Service to our clients also depends on the uninterrupted functioning of these equipment, power and stability of telecom network. Any obsolescence in the infrastructure and equipment leading to incompatibility with client's systems or any disruption in the essential services may affect the business of the company. Adequate backups and redundancy measures are in place for uninterrupted functioning of IT and telecom equipment. AMC of all equipment is being monitored for timely renewals wherever needed. Insurance for fixed assets and all office locations is in force and is monitored for timely renewals and adequacy of risks covered under Qffice package policy.

Y HUMAN RESOURCES RISK

ITES (BpM) is a labour intensive industry and your company's success depends on its ability to retain key employees. Historically high employee attrition has been a common feature and our Company has also experienced a very high level of attrition. There have been cases of companies losing BpO orders for not being able to demonstrate a competent team that can manage a large workforce. High level of attrition further complicates the problem. There is a gap between the supply and demand of work force. Further, the available man power is not immediately employable in terms of the skill sets required for the industry. Thus the shortage of supply in quality manpower both at the managerial level and at the agent's level may significantly affect the functioning of the Company.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Your company has a well-defined and documented internal control system that is adequate and commensurate with the size and nature of its business. Adequate checks and balances and control systems are established to ensure that assets of the company are safeguarded and transactions are executed under proper authorization and are properly recorded in the books of account. There exists a proper definition of roles and responsibilities across the organization to ensure information flow and effective monitoring. The Company has an independent Internal Audit carried out periodically by a firm of Chartered Accountants who draw out their audit program based on risk assessments and in consultation with the Audit committee. The Company has an Audit Committee consisting of 5 Directors which has a majority of Independent Directors. This committee reviews the internal audit reports, statutory audit reports, the quarterly and / annual financial statements and discusses all significant audit observations and follow up actions arising from them. It further monitors the risk exposures of the company. The committee also reviews and recommends to the Board the terms of appointment of the statutory auditors and internal auditors.

From this year, there is a new requirement under Companies Act as regards to Internal Financial control (IFC) and Internal Financial control over Financial Reporting. Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the 2013 Act" or "the Act") requires the auditors' report to state whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls. Clause (e) of Sub-section 5 of Section 134 to the Act requires the Directors' Responsibility Statement to state that the Directors, in the case of a listed company, had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively. The auditor's objective in an audit of internal financial controls over financial reporting is to exbrss an opinion on the effectiveness of the company's internal financial controls over financial reporting and the procedures in respect thereof are carried out along with an audit of the financial statements. Your Company has complied with these requirements.

MATERIAL DEVELOPMENTS ON HUMAN RESOURCE FRONT INCLUDING HEAD COUNT

As at 31st March 2016, total number of employees stood at 2407 nos. which is a decrease of 358 nos from the brvious year end figure of 2765.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE

Your company is currently providing voice and data services to its International and Domestic clients in the ITES (BpM).

DISCUSSION ON FINANCIAL AND OPERATIONAL PERFORMANCE AND FINANCIAL CONDITION (STANDALONE):

Overview

The following discussion is based on our audited standalone financial statements which have been brpared to comply in all material respects with the Notified accounting standard by Companies Accounting Standards Rules, 2006 and the relevant provisions of the Companies Act, 2013. The financial statements have been brpared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company except for changes in accounting policy if any made to ensure compliance with law for the applicable periods. The discussion should be read in conjunction with the Audited Standalone Financial statements of the Company and notes to Accounts.

There is an increase of 2% in export revenue aided by favorable exchange rate offset by decrease in USD billing by 3% over brvious year

Domestic revenue has seen an increase of 10% during the year due to addition of few clients with better pricing during the year / brvious year which has contributed to both Revenue and pAT.

HR BpO is a vertical which is growing organically for us and this will continue in the coming years too. This Vertical has shown an increase of 30% over brvious year including Exports.

2. Other Income

Current year stood at Rs. 252 Lakhs as compared to Rs. 236 Lakhs in the brvious year. The main movements are:

i. Favorable exchange differences to the tune of Rs. 84 Lakhs (During the year exchange gain was Rs. 160 lakhs as against Rs. 76 Lakhs in 2014-15)

ii. Dividend on brference Shares received from our Subsidiary M/s Allsectech Manila Inc to the tune of RS. 13 Lakhs.

iii. Offset by lower liabilities no longer required written back in 2014-15 to the tune of INR 74 Lakhs not there in the current year.

3. Expenditure

During the year, there is a reduction in total expenditure of Rs. 100 lakhs (while increase in revenues amounted to Rs. 1089 lakhs). This was primarily on account of lower connectivity costs & debrciation offset by higher manpower costs due to salary increments.

Note 1: The decrease in cost of connectivity is because of the lower overseas call charges and fixed cost savings due to cost optimization efforts taken by the Company.

Note 2: The increase in employee cost is mainly on account of salary increase given to eligible employees at an average of 8% effective Qctober 2015.

Note 3: The total savings in general and admin expenses in the current year was Rs. 2 lakhs compared to the brvious year.

Note 4: Decrease in selling expenses amounting to Rs 18 Lakhs due to lower selling commission.

Note 5: The decrease in Debrciation of Rs. 164 lakhs due to assets useful lives got over during the middle of the year offset by debrciation of new assets.

4. Provision for Tax

Provision for tax includes current tax, deferred taxes apart from MAT if any. During this financial year, there was no current taxes provision due to carry forward loss situation and MAT was provided for Rs. 297 lakhs.

FINANCIAL CONDITION - BALANCE SHEET

(note: Figures given in brackets refer to brvious year figures)

1. Share Capital

The Equity Capital of the Company as on March 31, 2016 stands at Rs 1524 Lakhs and has remained constant over the brvious Balance sheet date.

2. Employee Stock Qption plan (ESQp): Employee Stock Option Scheme (ESQS), 2010:

All the options granted under ESQS 2010 stand lapsed/ cancelled as at 31 March 2016.

3. Reserves and Surplus

The Company's Reserves and Surplus as on March 31, 2016 stood at Rs. 10,876 Lakhs rebrsented by capital reserve at Rs. 251 lakhs (same as last year), share brmium on the equity shares amounting to Rs. 12,019 lakhs (same as last year), Rs. 1413 lakhs rebrsenting General Reserve (same as last year), Rs. (2,807) lakhs (brvious year: Rs. (3,755) lakhs) rebrsenting debit balance in the profit and loss account shows a decrease of Rs. 948 Lakhs during the year being the profit for the period and the reasons for the increase in profits for the year as been explained in the above paragraphs under profit and Loss Account.

4. Long Term Borrowings

Secured loan of Rs. 35 lakhs rebrsents balance payable towards Finance lease obligation (Hp loans). This has decreased by Rs. 24 lakhs during the year and this is primarily due to net repayment of Hp loans during the year.

5. provisions

Due to change in the new Format of Schedule VI of Companies Act, provisions were categorized into long term and short term.

Provision for Gratuity for the current year is at Rs. 265 lakhs as against Rs. 233 lakhs in the brvious year Rs. 35 lakhs out of Rs. 265 lakhs is considered as Long term and shown accordingly.

Provision for Leave benefits for the current year is at Rs. 91 lakhs as against Rs. 70 lakhs in the brvious year. Long term provision is NIL.

6. Short term Borrowings:

This rebrsents bank overdraft and there is a NIL balance as at 31 March, 2016 as we have not utilized any amount from the banks for our working capital needs. The balance as at 31 March 2015 was Rs. 85 lakhs.

7. Other Current Liabilities

Trade payables being payable to suppliers of goods and services has come down by Rs. 60 lakhs down from Rs. 498 lakhs in 2014-15 to Rs. 438 lakhs in 2015-16.

Other liabilities is at Rs. 296 lakhs as against Rs. 315 lakhs in brvious year mainly due to lower other payables.

8. Fixed Assets - Tangible

Additions to Fixed Assets amounted to Rs. 172 lakhs (Rs. 98 lakhs) in tangible fixed assets primarily due to additions to call centre equipment and Computers and Servers - Rs. 135 lakhs Vehicles of Rs. 19 lakhs: office equipment of Rs 6. lakhs; Furniture of Rs. 4 Lakhs and lease hold improvement of Rs. 8 Lakhs.

The total assets disposed off during the year amounted to Rs. 315 lakhs (Rs. 516 lakhs). The Assets sold were Call center equipment and Computers and servers -Rs. 190 lakhs; office equipment and Furniture and Fixtures - Rs. 99 lakhs and Vehicles - Rs. 42 lakhs. Accumulated Debrciation for these disposal amounted to Rs. 266 lakhs.

After providing for debrciation of Rs. 307 lakhs (brvious year: Rs. 411 lakhs) for the year, the net block of fixed assets stood at Rs. 505 lakhs as on March 31, 2016 compared to Rs. 689 lakhs as at March 31, 2015.

9. Fixed Assets - Intangible

Intangible assets comprise block of software used for call center operation. During the year there was an addition in Software of Rs. 198 lakhs and disposal of Rs. 1 lakh.

The closing net block of software is Rs. 241 lakhs as at 31 March 2016 as against Rs. 238 lakhs for the year ended 31 March 2015.

10. Non-Current Investments

Total Investments rebrsent the amount of equity capital invested in three subsidiaries. During the year our Subsidiary M/s Allsec Tech Manila Inc. Manila has redeemed part of brference Shares to the tune of RS. 294 lakhs. (USD 500,000).

11. Loans and Advances

Long Term Loans and Advances:

Deposits primarily reflect the security deposits for utilities and office brmises paid.

Loans to related party rebrsents loan given to our wholly owned Subsidiary in USA amounting to USD 1.5 Mn for meeting their working capital requirements which arose due to new contract signed by the subsidiary. The Increase during the year rebrsents foreign currency translation as at 31 March 2016.

There is a difference of Rs. 728 lakhs in taxes receivable which is mainly on account of a) Refund of Tax Deducted at Source amounting to Rs. 631 lakhs; b) TDS accrued during the year 2015-16 of Rs. 200 lakhs and c) MAT tax provision of Rs. 297 Lakhs.

Deposits primarily reflect the security deposits for utilities and office brmises paid.

13. Trade Receivables

Current Trade receivable increased to Rs. 2447 lakhs as at March 31, 2016 as against Rs. 2323 lakhs as at March 31, 2015.

Current Trade receivables from 100% subsidiaries amounted to Rs. 594 lakhs as compared to Rs. 703 lakhs in the brvious year rebrsenting amount received from subsidiary amounting to Rs. 267 lakhs offset by additional invoices raised amounting to Rs. 158 lakhs during the year.

The sundry debtor in terms of days of sales (DSQ) as at 31 March 2016 is 81 days (86 days for brvious year). The DSQ without considering the receivables from 100% subsidiaries is at 58 days for the current year (62 days).

14. Other Assets

Non-Current bank balances rebrsent the Fixed Deposit given as a Margin Money for opening SBLC with Banks and are maturing after 31 March 2017. Interest accrued on those deposits is also classified with the deposit as Long term.

Other current assets rebrsent Interest on Fixed Deposits which are maturing before 31 March 2017 and interest accrued on those deposits. Interest accrued on loans given to subsidiary amounted to Rs. 117 lakhs and Unbilled Revenues amounted to Rs. 312 lakhs (Rs. 311 lakhs).

15. Current Investments

Current investments rebrsent balances invested in mutual funds. The Balance as at 31 March 2016 is Rs. 1911 lakhs (Rs. 175 lakhs).

16. Cash and Bank Balances

Cash and Bank balances increased to Rs. 683 lakhs as at 31 March 2016 as against Rs. 369 lakhs as at 31 March 2015. This rebrsents deposit accounts including margin money deposits amounting to Rs. 269 lakhs (brvious year: Rs. 224 lakhs) and yearend cash and bank balances of Rs. 414 lakhs as at end March 2016 as compared to Rs. 145 lakhs as at end March 2015. The increase in cash and cash equivalents of Rs. 269 lakhs during the year rebrsented by

a) Net Cash inflow from operations amounting to Rs. 1938 lakhs (brvious year cash outflow of Rs.142 lakhs)

b) Net cash used in Investing activity amounted to Rs. 1541 lakhs (brvious year net cash inflow of Rs. 54 lakhs) and

c) Net cash used in financing activity amounted to Rs. 128 lakhs (brvious year net cash inflow of Rs. 42 lakhs)

Disclaimer This discussion and analysis report présentation may include statements that are not historical in nature and that may be characterized as "forward-looking statements", including those related to future financial and operating results, future opportunities and the growth of selected verticals in which the organization is currently engaged or proposes to enter in future. You should be aware that future results could differ materially from past performance and also those contained the forward-looking statements, which are based on current expectations of the organization's management and are subject to a number of risk and uncertainties. These risks and other factors are described in Allsec's annual reports. The Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company. The information brsented herein should not be construed as earnings guidance under the terms of the stock exchange listing agreements.