Dear Shareholders,
 
 I am writing this letter to you in unprecedented times, when the
 developed world is struggling to emerge out of the financial turmoil
 and domestically the macroeconomic environment has worsened to
 multiyear lows. This double whammy of weak global demand and protracted
 recovery in the domestic economy has had its impact on the financial
 services industry reflecting in low activity in both primary equity
 markets and M&A segment, tapering off of credit growth, high
 restructuring activity etc. Although, the recent policy measures
 undertaken by the government gives us hope that the investment and
 financial services activity should see some improvement going forward,
 the actual translation to business activity is yet to be seen.
 
 At Centrum Group, business still remained on track in relative term
 despite challenging times and volatility. The total income of the
 Company, on a standalone basis, grew by 7.9% to Rs. 602.570 million for
 the 12 months ending 30th June, 2012, as compared to Rs. 558.583 million
 for the same period in the previous year. The Company managed to
 turnaround at operating level by cutting down overall operating
 expenses - we posted operating profit of Rs. 103.34 million in FY2012 as
 against operating loss of Rs. 51.01 million in FY2011. However, we posted
 a net loss of Rs. 97.317 million in FY2012 as compared to net loss of Rs.
 131.788 million in FY2011 - we managed to reduce net loss by 26% this
 year due to effective cost control measures, despite finance cost
 shooting up by 156%.
 
 Centrum''s endeavor is to build strong business relationships and be
 the partner of choice for all its stakeholders - corporate,
 institutions, retail customers, employees and investors. As an
 integrated, complete financial services Company, Centrum specializes in
 equity, debt, infrastructure, wealth management, fixed income, foreign
 exchange, margin funding and loan against securities.  Its foray into
 wealth management led to building up of assets over Rs. 10 billion in the
 shortest span of time. Centrum continues to be recognized as a premium
 integrated financial services company, renowned for its ethics and good
 business practices.
 
 Moving forward, volatility in the global and Indian economy is going to
 create significant difficulties for businesses in general, and the
 investment banking business too is expected to have a fair share of
 challenges. However, we believe that even within this phase of churn
 and challenges, our wealth management and debt restructuring businesses
 will ultimately throw up interesting opportunities. We have been
 successful in attracting a strong team of professionals from the
 reputed global organizations like Barclays, Credit Susie, Citi Bank,
 HSBC Bank, etc. We are confident that with our focused approach, strong
 team, market and industry specific, professional business approach, we
 have the right ingredients to emerge as winners across different
 verticals of our business.
 
 As merchant bankers, we, at Centrum, see the environment of increasing
 Non Performing Assets (NPA''s) as an opportunity for a lot of
 Corporate Debt Restructuring (CDR). Our experienced team of senior
 banking professionals, with deep domain understanding, provides us a
 strong footing in this business segment.
 
 Centrum offers comprehensive, structured and well- planned Wealth
 Management Services to High Net-Worth Individuals. We are proud of the
 fact that today we are providing wealth management services to several
 well known CEOs and top-end professionals in the corporate world. We
 were also successful in attracting NRI clients for our wealth
 management business from countries like Dubai, Oman, Hong Kong, Canada,
 etc.
 
 During the year we have also successfully started our offshore fund
 Progressive India Fund through a joint venture with reputed
 Commonwealth Finance Corporation Limited, Hong Kong. We are hopeful of
 reaching the fund size of 0 million within a year or so.
 
 Centrum enjoys a formidable presence in the Forex segment, being a
 leader in the pre-paid cards and travelers cheque segment. Centrum is
 poised to further consolidate its leadership in the forex business with
 focus on airport counters.
 
 The current global economic scenario notwithstanding, it is evident
 that overall growth prospects are positive for the Indian economy. With
 India still remaining as the second fastest growing major economy in
 the world, ranking number 1 in the world in drawing remittances from
 the non-residents (estimated to be over  billion for CY2012, ahead
 of China) and the Indian financial services market still growing
 significantly provide us potential for further growth. The burgeoning
 Indian middle class, rising income levels, increasing standards of
 living and government''s efforts to open up the aviation and retail
 sector for foreign direct investments are expected to transform the
 economic landscape of the country and push growth across the entire
 gamut of financial services. Our core expertise, dedicated, talented
 professionals and focused business approach will enable us to maneuver
 the challenges and make the best of the emerging opportunities. Our
 ability to successfully establish strong relationships with our
 corporate clients, financial institutions, banks, retail clients,
 employees and investors, boosted by our initial success in drawing
 clients across the globe will enable us to nurture these relationships,
 providing us a strategic advantage.
 
 As we meticulously and carefully traverse the future with concrete
 plans, I solicit your continued trust and thank you for the faith and
 confidence reposed in the Centrum
 
 Group of Companies. I take this opportunity to thank all members of the
 Board and senior management team for their valuable insights,
 particularly in the prevailing scenario which will test the mantle of
 our industry and the country as a whole.
 
 I would also like to thank all our clients, bankers and stakeholders
 for the trust reposed in the Centrum Group.  On behalf of the members
 of the Board, I would specially like to place on record our sincere and
 heart-felt gratitude to all employees for their commitment, and I hope
 you will continue to support the Company in its future endeavor of
 growth and prosperity.
 
 Yours sincerely,
 
 Chandir Gidwani