Dear Shareholder,
 
 Cairn India is now responsible for the delivery of significant
 domestic crude production from its operated assets across the country.
 This has brought significant benefits to the nation, to the states of
 Rajasthan and Gujarat, our joint venture partner, Oil and Natural Gas
 Corporation Limited, and to the Company. With Cairn India now
 accounting for more than a fifth of India''s total crude oil output, it
 has contributed significantly to savings in foreign exchange on
 account of crude oil imports.
 
 FY2011 has been a year of delivery for your Company. Production from
 the Rajasthan block reached 125,000 barrels of oil per day with the
 crude now being transported to a number of Indian refineries by the
 world''s longest continuously heated and insulated pipeline. This
 pipeline infrastructure is not only a global engineering achievement,
 but also a strategically important asset because all the remaining fi
 elds and discoveries in Rajasthan can be quickly connected to the
 market.
 
 The successful start-up of piped oil production from the Mangala
 Processing Terminal has provided a tremendous platform for future
 growth, and contributed
 
 a record turnover of INR 102.8 billion, or USD 2.26 billion in FY2011;
 and profit after tax of INR 63.3 billion, which translates to USD 1.39
 billion.
 
 The total Rajasthan resource base supports a vision for a potential
 production of 240,000 bopd, subject to further investment and approvals
 from the Government of India and the joint venture partner.
 
 I would like to recognise all the hard work and commitment the
 management, employees and contractor teams working for Cairn India have
 put in. At the peak of construction, more than 16,000 people were
 involved in building the Mangala Processing Terminal, the pipeline and
 related infrastructure — making it, without doubt, the biggest onshore
 oil and gas production project in India. The successful completion of
 Phase-I of the project stands testament to the skills and ingenuity
 that the Cairn India team has displayed in creating long lasting value
 to you as a shareholder and to other stakeholders in India.
 
 Cairn India''s experience has shown that it is possible to build
 world-class developments using the latest and most innovative
 technologies. The Rajasthan development has demonstrated your Company''s
 ability to operate large scale projects in a safe and efficient manner
 and at a low cost.
 
 The support of the Government of India, the state governments, our
 joint venture partner Oil and Natural Gas Corporation Limited, local
 communities and key contractors has been vital to the Company''s
 exciting journey.  I would personally like to thank all those who have
 played their part in developing this key project for India.
 
 With a strong and sustainable cash flow, Cairn India is well
 positioned for future growth. It is now focused on maximising value
 from the phased development of the Rajasthan resource base in the
 coming years.
 
 In the summer of 2010, Cairn Energy PLC was approached by Vedanta
 Resources Plc with a proposal to purchase the majority of Cairn''s
 Energy PLC''s equity in your Company. The proposed transaction was
 agreed and announced by the two companies in August 2010, and approved
 by the shareholders of Cairn Energy PLC and Vedanta Resources Plc in Q4
 CY2010.  The transaction is currently awaiting approval from the
 Government of India.
 
 Irrespective of this transaction, I look forward to Cairn India
 producing more hydrocarbons for the nation, and generating more income
 and profits for its shareholders.
 
 
 Sir Bill Gammell
 
 Chairman
 
 Date: 25 June 2011