Dear Shareholders,
 
 In a challenging global business environment and in a difficult year
 for the Indian real sector, predictability is passes. As a result,
 businesses are finding it increasing difficult to assess and mitigate
 risks, realize their true potential and create value for stakeholders.
 The year has been a challenging one for the Indian economy. High
 inflation, elevated interest rates and a lack of economic reform have
 led to weak economic sentiment and the lowest GDP growth in last nine
 years. The real estate sector has been especially impacted by these
 factors.
 
 The prevailing macro-economic scenario looks grim. China and fellow
 Asian emerging economics face slower economic growth in FY 2012-13 on
 weak external demand. According to IMF India is forecasted to expand
 6.9% in 2012 and 7.3% in 2013, growing slighting below the revised
 forecasts of January as result of weak demand and higher interest
 rates. The primary reasons for the economic slowdown including rising
 inflation, coupled with banks getting stricter on housing loans and
 high interest rates.
 
 Against the backdrop of such a volatile environment. Your Company
 naturally had its own set of challenges. The double whammy of plunging
 sales and rising costs took their toll on the profitability of real
 estate majors. Also, banks turned cautious towards rescheduling debt or
 issuing fresh loans to real estate companies. Upward spiraling cost of
 construction materials has put great pressure on project execution, in
 turn leading to project delays. This year truly tested our stability
 and agility.  Prices of steel, cement and labour have risen
 substantially since 2009.
 
 Over the coming year, we intend to launch new projects as and when we
 perceive a latent demand.  Anand Group also keeps raising the bar of
 corporate governance and the Company''s keen desire to embrace these
 norms in addition to the local norms shows its commitment to good
 practices with a view to create and sustain stakeholder confidence.
 
 I would like to thank you the Board of Directors, Bankers, Employees
 and Shareholders for their unstinted support, reposing their confidence
 in the Company and the confidence reposed on us.
 
 Yours sincerely,
 
 Ramesh L. Shah
 
 Managing Director