Dear Shareholders,
 
 Despite multiple domestic challenges and weak global recovery, the
 Indian economy has demonstrated its thirst for sustained growth,
 driving a qualitative change in lifestyles and aspirations. The media
 and television industry in India reflects this transformation
 significantly, and is today a sector that has evoked global interest.
 
 2010-11 will be remembered as the precursor of significant
 transformation in media and entertainment in India. The advanced
 digitization is evolving the industry at a speed never seen before. The
 consumers are gradually realizing the benefits of advanced technology,
 and consequently, the High Definition channels are enjoying greater
 penetration in the Indian market. On the other hand, the regional
 markets are also growing rapidly. With more opportunities for rural
 income generation, India''s rural market for entertainment has grown
 phenomenally
 
 In fact, rural market was the major growth driver for the digital TV
 growth in India. The Indian film industry is also growing attractively.
 Domestic box office revenues registered high growth in 2010-11, backed
 by growing multiplex penetration. Even though the traditional formula
 of big budgets and star power continues to be accepted, the audience
 has started appreciating experimental and niche content. This is an
 unmistakable paradigm shift of viewer preferences which Balaji seeks to
 capitalize on
 
 At Balaji, we have always acknowledged the fact that ''content is king''.
 Nothing can overcome a powerful and a convincing storyline. We have
 evolved significantly with the changing entertainment requirements of
 viewers and provided unmatched creative content to our shows. Our
 versatility in content helped us to fulfill specific entertainment
 requirements for multiple viewer categories. To leverage the burgeoning
 opportunities in the Indian film industry, we have enhanced our focus
 on film production and successfully established BMPL as a serious
 player in the film industry.
 
 We have encountered many hardships in the current fiscal and this has
 impacted our financial performance, but we are confident to overcome
 the challenges by virtue of our deep market insight and understanding
 of evolving viewer aspirations. Moreover, we are thriving to create a
 professionalized working environment with a rationalized cost model and
 optimum utilization of talent and resources.
 
 At Balaji, we have come a long way since inception, but our job is only
 half done. We will continue our mission with greater vigour, to ensure
 that we retain our leadership and continue to create game changing
 content. I am confident that our team has the capabilities to take on
 the industry challenges and move forward. I would like to convey my
 gratitude to all our investors, business partners, viewers and all the
 members of the Balaj family for their guidance and support.
 
 Warm regards, 
 Jeetendra Kapoor