It is a great privilege to share our vision and some of our inner
 strengths with you all. We are indeed living in exciting though
 challenging times.  There is unanimous consensus amongst economists on
 the growing stature of emerging economies, each assuming much greater
 significance in the new world economic order, especially since the
 aftermath of the 2008 global financial meltdown and the current
 concerns of European debt. Amongst the emerging economies, India in
 particular has earned admiration for its resilience, powered by robust
 financial markets, sound regulatory regimes, favorable demographics,
 and higher rate of savings to name just a few. Indias economy has
 averaged about 8 percent growth over the past three years- one 
 of the fastest rates in the world. It is expected that the
 country will continue to grow in high single to low double digits in
 the next decade.
 
 For India to migrate into a first-world nation during this era, great
 emphasis will need to be placed on the expansion of its physical
 infrastructure, thereby presenting immense opportunities for growth.
 There is ample evidence that this focus is taking priority at both
 public and private levels and we expect that along with sustained
 growth in housing construction, the projected investments flowing into
 infrastructure projects over the next decade bodes well for the cement
 industry. At DCBL, we recognise that we are at an inflexion point of
 Indias growth story and are preparing ourselves to play a key part in 
 this next big future.
 
 SATISFACTORY PERFORMANCE IN CHALLENGING TIMES
 
 FY10 was another good year for your Company as it continued on its
 growth journey despite the challenges presented by the market
 conditions. It was characterised by contrasting fortunes in the cement
 and sugar segments, two of our major business units. Cement faced some
 pressure due to slowdown in demand growth in our key markets in
 Southern India whereas sugar witnessed one of the best years in terms
 of realisations.  Overall, it was a satisfactory year for us as the
 Total Income increased by 23% to Rs. 21,938 million from Rs. 17,787
 million a year earlier. Sugar business outshone and recorded a growth
 of 63o/o with income at Rs. 5,873 million in FY10. Your company showed
 a lot of resilience to the slower cement industry demand growth of 50/0
 in the key geographies that it operates in and registered four times
 the industry volume growth. This helped the cement business record
 modest income growth of 130/0 to Rs. 14,691 million despite fall in
 prices.
 
  THE POWER OF OUR INNER STRENGTH
 
 Development and Institutionalisation of our values has helped us
 believe in our inner strength as we embarkon our growth journey. Today,
 DCBLs future looks promising. The key reason for our optimism is our
 core inner strength that is fundamental to our business model which
 includes:
 
 - Our pioneering spirit-we have
 
 the courage, ambition and the capabilities to bet on ourselves and our
 vision and then to follow it up with implementation. Our history has
 many examples that demonstrate our desire and willingness in taking new
 innovative paths.
 
 - Our ability to scale up-we know
 
 that dreams are realised only through hard work and rigorous execution.
 Our ability to concurrently establish new plants and make substantial
 upgradation of existing ones well within challenging timeframe is
 testimony to our strong project management and execution skills.
 
 - Our ability to build strong
 
 brands-Strong brands enhance our customersloyalty to our products.
 Over the years, we have strengthened our brands to become entrenched in
 the minds of our customers and users, allowing us to compete and gain
 market share more effectively.
 
 - Our flexibility to adapt to
 
 change-We view change as an opportunity, not a threat. Through our
 history, we have become nimble on our feet to counter economic cycles
 and bring about a sea change, if necessary, on how we do things.
 
 - Our concentration on quality
 
 and efficiency-Quality is the common denominator that drives every
 action in the Company. Our obsession with quality is fundamental to
 making the business highly sustainable and to deliver long term value
 to all our stake holders.
 
 - Our people-Over the last few years, we have instilled a
 transformation in the management cadre to infuse a healthy mix of
 proven talent and experience. Led by capable leaders, we are
 confidently embarking on our ambitious journey ahead.
 
 A VISION FOR SOLID GROWTH
 
 The journey we began 70 years ago has helped us arrive at a major
 threshold where our vision for growth has been reset. From where we
 stand today, we see a vast horizon that spells opportunity where
 theres still so much more to achieve. The time is now ripe to set new
 goals for ourselves that are ambitious, yet credible. Going forward, we
 believe that the next decade will be transformational in seeing India
 prosper and develop. We are now preparing for unequivocal growth in
 many ways.
 
 We have allowed ourselves to think BIG. This mindset is necessary if we
 are orienting ourselves to become leaders in our space. We are
 implementing business restructuring of the Company that will not only
 unlock value for the stakeholders, but will give us the focus and
 flexibility to accelerate growth in each of our businesses. Under the
 Scheme of Arrangement and post its approval by the regulatory
 authorities, the shareholders of DCBL would be entitled to equity
 shares of the newly listed company, Dalmia Bharat Enterprises Limited
 (DBEL) in the ratio of 1:1. Current company would continue as an
 integrated Sugar Company while Cement, Power and some of the other
 businesses would be transferred to DBEL. Thirdly, we are bolstering our
 Balance Sheet with new equity partners who share our vision for growth.
 We warmly welcome
 
 Kohlberg Kravis Roberts & Co. LP.  (KKR), a leading global private
 equity investor, to join our other esteemed institutional investors, in
 building a long term relationship for growth and value creation in the
 cement business.  Finally, we are aligning all our people to think BIG
 and to believe in themselves to bring about transformational growth.
 People have always been at the centre stage of DCBLs growth journey.
 Their passion and conviction will continue to be the key driver of all
 our growth strategies and initiatives. As we differentiate ourselves
 through products, processes, excellence and solid execution, we are
 confident on reaching our set goals.
 
 We take this opportunity to thank all our stakeholders in placing their
 faith in us and look forward to an exciting journey ahead.
 
 
 Jai Hari Dalmia                             Yadu Hari Dalmia