Dear Shareholders,
 
 It is always a pleasure to address you and so it is this time as well.
 
 India''s GDP grew by 8.5% in a year when some major economies were only
 sluggish in their revival, indicating a relatively stronger growth
 driven by domestic consumption. The medium to long- term outlook for
 India''s economy continues to be healthy and firm.
 
 The Indian power sector had short spiked positive developments to show
 across the three parameters of generation, plant load factor and
 overall growth this year. However, the role of companies such as yours
 is critically important if India is to meet its energy demand. Between
 now and 2017 which is the end of the 12th Plan period, there has to be
 a capacity addition of more than 100,000 MW. Your company will be a
 major EPC contractor that will address this opportunity.
 
 For your company, FY 2010-11 has been a year of setting new records in
 growth and performance.
 
 - Your company joined the premier billion dollar club this year by
 achieving sales of Rs. 4747.49 crore - a growth in turnover of 55%
 
 - Profits surged to Rs. 324.21 crore as against Rs. 201.02 crore last year
 - a rise of 61% in profit after tax.
 
 - EBIDTA grewata brisk clip to 11.60%
 
 - Basic EPS is at a promising high of Rs. 44.97.
 
 - Your company became the first private sector player to commission
 three 500 MW units in one financial year.
 
 Your Directors recommend an increased dividend of Rs. 10 per share with
 great happiness.
 
 You are already aware that our BTG collaborations with Hitachi have put
 us on the path of becoming a full-spectrum EPC company. Coupled with
 the achievements of this year, they take your company several notches
 higher on the market leadership scale.
 
 This strong and credible position is also one that puts on us an
 immense responsibility - one of being sustainable performers in the
 power sector at a time when the 11th Plan targets for the sector have
 seen a mid-term downward revision.
 
 Recently, a quartet of challenges has accosted the power sector in
 India-coal linkage, land acquisition, environmental clearance and
 credit deficit. While these reasons have impacted order books across
 the sector, I take this opportunity to assure you that your company is
 fully competent and capable to meet these challenges on the side of
 success. Our results in the coming years will bear my hope for
 your company well.
 
 You will appreciate that having the support of a professional
 management leadership team and a steady-handed Board, it is easy for me
 to be confident of future achievements and profits.  For having put me
 in this happy position, may I thank you - our shareholders, your Board,
 the management team, our employees, foreign collaborators, customers,
 vendors and bankers with a request to continue offering your support
 and encouragement to the company''s sustained performance.
 
 The year ahead is ripe with opportunity and your company is fully
 geared up for the work.
 
 Thank you.
 
 B. G. Raghupathy
 
 Chairman & Managing Director