Ann: Operations Update, page-44

SBF,

What has S2 picked?

For starters, he doesn't even know that TSI own the managed service platform. It's not Mphasis'.

Where in any TSN company announcements (not a 3rd party website link) does it highlight this? Nowhere. Hence, no leasing costs to Mphasis that he keeps banging on about.

Now to the Operations Update...

* Review of TSN's buy out option continues but internal forecasts and assumptions for growth have been impacted by the government policy changes. It didn't say it was due to something outside of this. I want to see things stabilise first but that will take a few more months.

* Costs up - yes. But only during this period until things stabilise, then expected to return to normal or better.

* Dip in quarterly transactions - yes, but only by 2.24% during this change is quite ok considering imo. Once things stabilise, the company highlighted that transaction volumes may show an increase once stabilisation occurs.

* Revenue down, but only marginally. September and October months were good.

* TSI India's ATMs - 80% of TSI India's ATMs are now receiving constant cash supply.
Currency supply expected to return back to normal, but not until the end of March 2017.

* Compensation claims raised during this period, but timing or decision of entitlement not determined as yet. I'm not confident that this will work in their favour, but hope I'm wrong.

* SREI delayed until currency circulation normalised and they can see clarity for their WLA business model. This may take SREI 2-3 months to recommit to the deal. TSI management expect things to normalise by the end of March 2017. No one knows at least until then.

* Bill Payment transactions increased by 32% on their 400 or so kiosks.

* TSI India's e-surveillance solution has now been deployed at 400 Andhra Bank ATM sites.

* TSI India's in house e-surveillance solution has now been successfully completed at over 170 Kotak Mahidra Bank ATM sites.

* Agreement secured with Kindred Technologies and TSI India. This will be a work in progress. This is a potential new revenue stream. As highlighted TSI are expecting to leverage off Kindered's business Utility relationships and are looking at identifying ways to monetise traffic at ATM transactions.

Many have sold today on this Operations Update. Some long termers, many short termers. I don't have any issue with that and sincerely wish everyone all the best. Everyone must stick to their business plan/strategy. I have the patience and faith in management to see this through. They haven't let me down. But that's just me.

Disclosure: I have not sold one share. I continue to hold.

Tony