Dear Members,
 
 The Directors have pleasure in presenting the Eleventh Annual Report
 together with the Audited Accounts of the Company for the financial
 year ending 31st March, 2011.
 
 1. Financial Highlights
 
                                                  (Rs. in crores)
 
 Particulars                                     2010-11      2009-10
 
 Sales & Other Income                            1257.47      1013.09
 
 Profit before Depreciation, Interest and Tax     279.22       187.70
 
 Less : Depreciation                               28.22        13.54
 
 Interest                                          99.03        53.07
 
 Profit Before Tax                                151.97       121.09 
 
 Less : Tax Expenses
 
 a) Current Year                                   30.23        25.33
 
 b) Earlier Year                                       -            -
 
 c) Deferred Tax                                    9.57         5.68 
 
 Profit After Tax                                 112.17        90.07
 
 Balance brought forward from previous year       169.97        86.34 
 
 Amount Available for Appropriation               282.14       176.42
 
 Appropriations
 
 a) Dividend                                        1.48         2.96
 
 b) Tax on Dividend                                 0.24         0.54
 
 c) Transfer to General Reserve                     1.48         2.96
 
 Balance Carried to Balance Sheet                 278.93       169.97
 
 Earning per Share (In Rs.)                        75.57        70.48 
 (equity shares of face value of Rs. 10)
 
 2.  Result of Operation
 
 During the year, your Company has scaled new heights and several new
 benchmarks in terms of revenue and asset base has been created. Total
 revenue for the year was Rs. 1257.47 crores against Rs. 1013.09 crores
 in the previous year showing an increase by 24.12%.
 
 Profit after tax for the year was Rs. 112.17 crores as against Rs.
 90.07 crores for the previous year showing an increase by 24.53%.
 
 3.  Order Book
 
 Your Company has an order book of more than Rs. 3,221 crores, which
 includes the following major works:
 
 a) Construction, rehabilitation and widening of Cuttack - Paradeep
 road, Orissa with a contract value of Rs. 208.27 crores
 
 b) Construction of BRTS Corridor and Development of road, Jaipur
 Development Authority, Rajasthan, having a contract value of Rs. 159.02
 crores
 
 c) JSPL, Angul, Orissa Project-Work Order for execution of Rail
 Infrastructure Work with a contract Value of Rs. 261.00 crores
 
 d) Construction for widening and strengthening of existing carriageway
 to two lane for Chandbali- Bhadrak-Anadpur (Km 0/0 to Km 45/0 of SH-9
 and Km 0/0 to Km 50/0 of SH-53), Orissa, having a contract value of Rs.
 216.23 crores
 
 e) Widening and Strengthening of Existing Carriageway to 2 lane for
 Bhawanipatna to Khariar (2/0 Km to 70/0 Km SH-16), Orissa, with a
 contract Value of Rs.  105.51 crores
 
 f) Construction for widening and strengthening of existing carriageway
 to two lanes for Berhampur to Taptapani (Km 0/0 to Km 41/0 of SH-17)
 Orissa, with a contract Value of Rs. 81.97 crores
 
 g) Construction of a new 2-lane Highway from km 38/00 to km 71/00
 (length=33.0 Km) in Mizoram, with a contract value of Rs. 163.11 crores
 
 h) Widening to 2 lane and improvement in km 0/0 to 102/9 km of
 Parlakhemundi-R. Udayagiri-Mohana road (SH-34) under LWE Scheme. Orissa
 with a contract value of 153.91
 
 i) Construction of earthwork, bridges, supply of P-way material, supply
 of ballast and P-way linking for proposed private railway siding taking
 off from Chacher railway station to in plany yard and including inplant
 yard of NTPC Mauda (but excluding works within railway boundary and
 excluding rail over rail bridge) Dist Nagpur (M.S.) with a contract
 value of 114.49
 
 j) Improvement of existing single intermediate lane of NH-44 to two
 lane with paved shoulders from km 230/200 to km 247/00, km 261/504 in
 the State of Assam with a contract value of 104.05
 
 k) Widening & Reconstruction of Package-1, Shahdol- Singhpur-Turla
 Pandariya Road (SH-9) under Regular Contract with a contract value of
 Rs. 99.90 crores
 
 4. Auditors
 
 M/s. P.A. & Associates, Chartered Accountants, Statutory Auditors of
 the Company, hold office until the conclusion of the ensuing Annual
 General Meeting and are eligible for reappointment.
 
 The Company has received letter from them to the effect that their
 reappointment, if made, would be within the prescribed limits under
 Section 224(1B) of the Companies Act., 1956 and that they are not
 disqualified for reappointment within the meaning of Section 226 of the
 said Act.
 
 5. Report of Auditors
 
 The notes on accounts and observations of the Auditors in their report
 on the accounts of Company are self explanatory except clause no. 4.2
 which calls for further explanation. They are as follows;
 
 Profit from HCIL-Adhikaria- ARSSPL JV has been ascertained on the basis
 of Provisional Accounts as on 31.03.2011 and also for earlier years
 instead of audited accounts, which is not in accordance with Accounting
 Standard – 27, Financial Reporting of Interest in Joint Ventures
 issued by The Institute of Chartered Accountants of India.
 
 HCIL-Adhikaria- ARSS, an international J V, a partner of the Company,
 which prepare their accounts in a different basis for a different
 period than our Company. As their accounts are not yet finalised, the
 profit from the JV has been considered on provisional basis. This is
 beyond the control of the management and the Company does not expect
 any substantial deviations in the audited accounts.
 
 6.  Dividend
 
 Your Directors propose to recommend a dividend of Rs.  1/- per equity
 share (last year Rs. 2/- per equity share) for the financial year
 ending March 31, 2011, amounting to Rs. 148.43 lacs (Excluding of
 dividend tax of Rs. 24.08 lacs). The lower rate of dividend than
 previous year is due to owing to deployment of more internal earnings
 in the working capital requirement of the company.
 
 7.  Directors
 
 During the year Mr. S.R. Chaudhuri and Mr. S.C.Chakraborty have
 resigned w.e.f 07.02.2011 due to their other pre occupations. D r.
 Bidhubhusan Samal retires by rotation at the ensuing Annual General
 Meeting and being eligible, have offered himself for re-appointment.
 
 Brief resumes of Dr. Bidhubhusan Samal proposed to be reappointed,
 nature of his experience and names of the companies in which he holds
 directorship and membership are provided in the Notice for convening
 the Annual General Meeting.
 
 8. Particulars of Employees
 
 As required under the provision of section 217(2A) of the Companies
 Act, 1956, read with the Companies (particulars of employees) Rules,
 1975 as amended, the names and other particulars of employees are given
 below :
 
 Sl.Name of the Designation Qualification Age Date of Experi
                                                        -ence      Gross
 No person                                in  Joining (No of Remuneration
                                          years        years)     (Rs.)
 
 1 Subash 
   Agarwal      Executive 
                Chairman        B. Com      46 05/11/
                                                2007     20  1,50,00,000
 
 2 Rajesh 
   Agarwal      Managing 
                Director     B.E. Civil     36 01/10/
                                                2006     15    90,00,000
 
 3 Sunil 
   Agarwal      President 
                & CEO           B.com       35 01/04/
                                                2005     12    34,80,000
 
 4 Anil Agarwal Sr. VP & COO    B.com       42 01/04/
                                                 2006    16    34,80,000
 
 5 S. K. Singla VP & Project 
                Head         B. Tech, Civil 47 01/07/
                                                2006     17    42,00,000
 
 6 C.J. Soni    Sr. Vice 
                President     D.C.E         51 16/12/
                                                 2010    30    10,50,000
 
 9. Responsibility Statement
 
 In pursuance of Section 217 (2AA) of the Companies Act, 1956, the Board
 of Directors of the Company confirms:
 
 i) that in the preparation of Annual Accounts, the applicable
 Accounting Standards issued by The Institute of Chartered Accountants
 of India have been followed by the Company and there has been no
 material departure
 
 ii) that the Directors have selected such Accounting Policies and
 applied them consistently and have made judgments and estimates that
 are reasonable and prudent so as to give a true and fair view of the
 state of affairs of the Company as at 31st March, 2011 and of the
 profit of the Company for the year ended on that date
 
 iii) that the Directors have taken Proper and sufficient care for
 maintenance of adequate accounting records in accordance with the
 provisions of Sec-209 of the Companies Act, 1956 for safeguarding the
 assets of the Company and for preventing and detecting frauds and other
 irregularities and
 
 iv) that the Directors have prepared the Annual Accounts on a going
 concern basis
 
 10.  Conservation of Energy, Technology Absorption, Foreign Exchange
 Earnings and Outgo etc. U/S 217 (1) (e)
 
 During the year under review, the Company has taken adequate measures
 for conservation of energy and also has not gone for any technology
 absorption whatsoever in accordance with the provisions of Section 217
 (1) (e) of the Companies Act, 1956 read with the Companies (Disclosures
 of particulars in the Report of Board of Directors ) Rules, 1988.
 
 The Company has neither earned any income nor incurred any expenditure
 in foreign currency during the financial year ended 31st March, 2011.
 
 11.  Public Deposits
 
 Your Company has not invited any deposit from public and shareholders.
 So, the provisions of the Section 58A of the Companies Act, 1956 are
 not attracted.
 
 12.  Corporate Governance
 
 Your Company is committed for adopting best ethical business practices
 in the management within the regulatory framework applicable to it.
 Accountability, Disclosure and strict compliance is the essence of good
 corporate governance. On the one hand good corporate governance calls
 for accountability of the persons who are the helm of affairs of the
 Company and on the other hand it also brings benefits to all
 stakeholders of the Company such as investors, customers, employees and
 the society at large. Your Company continues to believe in such
 business practices and has been extremely transparent in providing
 reliable financial information and in maintaining transparency in all
 its business transactions and ensuring strict compliance of all
 applicable laws.
 
 Your Company has adopted the requirement of corporate governance as
 prescribed under clause 49 of the Listing Agreement and a separate
 section titled Corporate Governance has been included in the Annual
 Report along with Management Discussion and Analysis Report.
 
 13. Industrial Relation
 
 Employee relations continued to be cordial throughout the year. The
 whole-hearted support of employees and a sense of belongingness with
 the organisation and solidarity with the management of the Company have
 helped achieve better performance during the year.
 
 14. Acknowledgement
 
 Your Directors would like to place on record their appreciation for
 assistance and co-operation received from the financial institutions,
 banks, Government authorities, customers and members during the year
 under review. Your Directors also place on record their deep sense of
 appreciation for the committed services by the executives, staff and
 workers of the Company.
 
                            For and on behalf of the Board of Directors
 
 Place: Bhubaneswar                                      Subash Agarwal
 
 Dated: The 11th day of May, 2011                              Chairman