Dear Shareholders,
 
 The Indian economy like the global economy is in the midst of a
 slowdown. The financial year 2011-12 came with a number of upheavals in
 the economy and financial markets, internationally as well as at
 domestic level. These have adversely affected the pace of push in
 infrastructure spend which aided India''s growth story in the recent
 past.
 
 Infrastructure sector has been interrupted by Government of India''s
 policy paralysis. On this account there has been a slow down in order
 off-take and liquidity crunch, putting a large number of companies in
 the sector in financial stress.
 
 Further, inflationary pressures resulted in an all-round increase in
 costs especially of petroleum products and major construction
 materials.
 
 Your Company generated losses in 2011-12, the details of which are
 outlined in the chapter on Management Discussion and Analysis and the
 audited financial statements. It has also put pressure on your
 Company''s cash position and debt servicing ability. Indeed, the
 decision-making paralysis has extended to a situation where a large
 portion of your Company''s work-in-progress and receivables from various
 projects have been pushed into claims. All these factors have led to
 higher working capital requirements and an increase in debt and finance
 costs.
 
 The Company had decided to approach the bankers and financial
 institutions for a Corporate Debt Restructuring (CDR) under Reserve
 Bank of India formulated CDR rules.  The formal flash report has been
 accepted by CDR authority. With the active support of our bankers and
 other lenders, the final scheme is being submitted and is likely to be
 heard during the next 4-6 weeks.
 
 I would assure you that your Company is fully geared to address the
 current situation as it unfolds and is taking all steps to bring back
 the equilibrium to its operations and put it back on a growth
 trajectory once more.
 
 Meanwhile, to meet these challenges, the Company has put in place deep
 austerity measures, the effects of which will be seen in the current
 financial year.
 
 In the life cycle of any company there are periods of stress. Your
 management is fully geared to address them in the shortest possible
 time. Special management teams have been formed to address the
 settlement of claims and we hope to see results in the next 6-8
 quarters.
 
 In time like this we are also gearing ourself to achieve higher
 efficiency in utilisation of man, machinery and money.
 
 I heartily thank each one of our employees whose commitment, hard work
 and dedication are making us sail through the difficult times. I am
 grateful to the Board of Directors for their unwavering encouragement
 and guidance. I would also like to express my gratitude to all our
 customers, business associates, banks and shareholders, who have
 reposed trust in us. Given your continued support, I believe C&C will
 overcome all the obstacles, meet emerging needs and pursue growth for
 maximizing shareholder value over the coming years.
 
 Sincerely,
 
 Gurjeet Singh Johar
 
 Chairman