Dear Shareholders,
 
 The company has had a very significant year in terms of its
 geographical spread as far as the core print business is concerned by
 entering and publishing from Kerala, we have completed the last mile in
 coverage of the four states of South I ndia and have emerged as the
 undisputed no. 1 English daily in South India.
 
 The growth in revenues this fiscal has been challenging both for your
 company and the nation that is grappling with high inflation, high
 interest rates and a looming threat of slowdown in the GDP growth
 coupled with not so encouraging global economic environment as well.
 
 This has been a further daunting task in the face of political
 uncertainties in the southern states that your company operates in.
 
 We have also witnessed a rising raw material cost that has not helped
 the situation. Despite these, the management of your company and its
 committed team has achieved satisfactory results and have made constant
 innovation to mitigate the risks.
 
 After three years, Deccan Chargers has a new team which is young in its
 median age and committed to improve on the previous teams performance
 going forward.
 
 As I pen this letter to you, the country has had a good monsoon and we
 a re seeing decline in commodities prices which signal tapering
 inflation and pause to interest hikes which will increase consumer
 spend and growth, that gives us the confidence that from the last
 quarter of 2011 and first quarter of 2012 we will see the start of an
 uptick in revenues & profitability.
 
 I take this opportunity to thank the support of your board of
 directors, suppliers, employees and our millions of readers.
 
 Sincerely,
 
 T. Venkattram Reddy
 
 Chairman