It gives me great pleasure to present the Annual Report on performance
 of the Company during the year ended 31 March 2011.
 
 As you all may well be aware by now, this year we commenced
 celebrations of the Centennial year of ALSTON! in the country. It is a
 phenomenal achievement for any organization and I truly feel proud and
 privileged to be Chairman of ALSTOM Projects India Ltd. as we commence
 the journey of ALSTOM into its next century in India. Over these years,
 ALSTOM has been contributing significantly to the growth and
 development of infrastructure in India and moving forward, we will
 continue to partner the nation in its growth to success.
 
 Before I dwell upon about the performance of your Company in the year
 under review and our future plans, I would briefly outline the major
 developments that framed our operating environment. Over the span of
 last one year, the Indian economy has posted a good recovery, improving
 the countrys GDP to 8.6 per cent in 2010-11 as compared to 7.2 per
 cent during 2009-10. The power and transport sectors are vital to the
 economic development and social integration of the country. The focus
 on investments in power sector has been continuing and the economic
 activity in the transport sector has shown better growth in 2010-11
 over the preceding year.
 
 With the active support of its parent viz: the ALSTOM Group, your
 Company continues to offer a wide range of products and services in the
 power and transport sectors. As you are already aware, your Company is
 engaged in the power sector in the business of engineering,
 procurement, construction and servicing of power plants and power
 equipment wherein the Companys customers enjoy the most
 environmentally friendly, advanced and innovative technologies being
 delivered by us. In the transport sector, your Company has the
 capability to supply traction equipment, signaling equipment and Train
 Management Solutions.
 
 Business environment
 
 The power sector reforms initiated by the government of India are yet
 to achieve their full potential. Having said that, there has never been
 a period in the history of independent India as we observe now, of such
 great growth as now in ordering and execution of power generation
 projects. Despite this, availability of electricity remains one of the
 most significant problems for India. In view of the current power
 availability situation in the country the Government of India has been
 taking certain important steps such as signing the nuclear energy deal
 in 2008, public-private partnership, inviting foreign direct investment
 in the sector and encouraging domestic manufacturing capabilities in
 the country. In view of the prevailing peak deficit and energy
 shortages, the Government of India has estimated a capacity addition
 requirement of 100,000 MW in the XIIth Five Year Plan commencing in
 April 2012.
 
 Indian Railways is expanding its network rapidly by executing several
 new lines, doubling and gauge conversion projects. Indian Railways
 vision 2020 plan proposes to invest Rs. 12.38 lakh crores by the year
 2020 in capacity enhancement, asset modernization and rolling stock
 acquisition.
 
 Your Company is poised to participate and contribute in the emerging
 opportunities in both the power and rail transport sectors.  
 
 Companys Performance
 
 I would like to inform you that your Company has achieved revenues of
 Rs. 1,803.63 crores for the year ended 31 March 2011.  Profit after tax
 stood at Rs. 169 crores as against Rs. 167 crores in the previous
 fiscal 2009-10. This has resulted in slightly higher earnings per share
 of Rs. 25.20 as compared to Rs. 24.95 in the previous year.
 
 Keeping this in view, your Board of Directors has recommended a
 dividend of Rs.10 (100%) per share on the equity shares of the company.
 
 I would now like to briefly highlight the two sectors in which your
 Company operates:
 
 Power
 
 India has an installed capacity of 173,626 MW as on 31 March 2011.
 According to Central Electricity Authoritys data, the Indian power
 utilities have been able to add only about 47.78 per cent of the target
 in last 4 years at 32,512 MW (between April, 2007 to January, 2011).
 However, India is rapidly increasing its generating capacity. The
 market potential to sustain the GDP Growth rate of India © 8% plus per
 annum needs the power sector to grow at 1.8 to 2 times the GDP rate of
 growth.
 
 Contributing towards the Indian power sector, during the year under
 review your Company had been awarded various significant contracts such
 as Yeramarus for Rs. 467 crores and Bellary for Rs. 142 crores from
 BHEL; for hydro mechanical products it was Hulu Terengganu (Malaysia)
 for Rs. 166 crores, Tidong for Rs. 81 crores and Phata Byung Rs. 55
 crores and for heat recovery
 
 steam generators from Az Zour (Kuwait) for Rs. 239 crores. The company
 was awarded a contract for a combined cycle power plant and the
 corresponding long term maintenance for Rs. 854 crores. In fact in
 order to harness the vast potential that exists in the hydropower
 market, we recently inaugurated our hydro bearing factory in Vadodara.
 The state-of-the-art factory will serve markets across several regions.
 
 Transport
 
 The rail transport sector in India has expanded manifold in fifty years
 after independence, both in terms of spread and capacity. The growth in
 the importance of rail transport within the transport sector is borne
 out by its growing share in GDP.
 
 The company is investing in expanding capacity and capability of the
 Transport Information Solutions Engineering and Development centre in
 Bangalore to address Indian and global markets.
 
 Indian Railways are in the process of finalising the framework for the
 large rolling stock projects. We expect this to be finalised soon and
 benefits to the Company will accrue mainly for components from unit at
 Coimbatore.
 
 During the year under review the Company had won the following two
 significant contracts:-
 
 - Chennai Rolling Stock - Additional business for traction component from
 Coimbatore (in consortium with ALSTOM Transport, SA).
 
 - Chennai track work in consortium with L & T.
 
 Environment, Health & Safety (EHS)
 
 In ALSTOM, we consider with great importance, the health and safety of
 our employees, contractors, customers and stakeholders.  Your company
 maintains high standards of safety, health and environment care at all
 its operating locations, always ensuring the increasing scale of
 operations without compromising on the standards of safety, health and
 environment. Compliance with relevant regulations and effective
 management of these issues is an integral part of the Companys
 operating philosophy. EHS is managed and controlled in ALSTOM through
 an integrated EHS Management System providing continuous improvements
 in EHS Performance.  EHS Management System is based on an EHS
 Roadmap, which fulfils the objective of defining the EHS Management
 Standards for all sites of the Company and provides an audit guideline
 in order to assess the implementation of these standards.
 
 Established systems and procedures are constantly revised for
 improvement to achieve higher standards of safety, occupational health
 and environment protection.
 
 All major locations of the company have well equipped health care
 facilities / arrangements. The company enables awareness programs on
 EHS for creating and maintaining awareness among employees about safety
 and health related issues. In India, various initiatives such as
 training programs on safety issues and mock drills are conducted in all
 the locations to increase EHS (Environment, Health, and Safety)
 awareness amongst the employees.
 
 Corporate Social Responsibility
 
 ALSTOM employees have long campaigned alongside local partners around
 the world to improve the quality of life in the local communities
 neighbouring its plants, sites and corporate offices. Under the aegis
 of ALSTOM Foundation, ALSTOM has been actively focusing on concrete
 campaigns to protect the environment. Some of the recent campaigns that
 ALSTOM has been involved in are: restoring the soil to increase
 agricultural productivity in remote areas of Gujarat and in setting up
 of 50 windmills for salt farmers in Gujarat in an effort to help them
 switch from fossil fuel to renewable energy. ALSTOM is also
 contributing significantly in recharging 30 natural springs in the
 Kumaon region of the Himalayas for a period of over two years.
 
 Acknowledgements
 
 Last but not the least I take this opportunity to thank and
 congratulate all employees of the Company for their unstinting efforts
 to ensure continued good results for the Company. I must also thank all
 shareholders for their continuous encouragement and support.  Finally,
 I also thank the ALSTOM Group for providing your Company its unwavering
 support as always.
 
 
 
 With regards,
 
 Sunand Sharma
 Chairman
 ALSTOM Projects India Limited