Dear Shareholders,
 
 The Indian economy continued to face macro headwinds through FY 11-12
 as the sovereign debt crisis in Europe took a new and dangerous turn
 during the second and third quarter. Unprecedented action by the ECB
 helped stave off a grave situation; however the reverberations continue
 to impact capital flows and investments in developing economies such as
 ours. While India has enjoyed the fruits of being a part of the
 interconnected global economy over the past decade, recent events also
 highlight the downside risks associated with the same. The year under
 review saw continued erosion of the Rupee as well as below trendline
 economic growth as a consequence of demand contraction as well as the
 ballooning fiscal deficit. The good news however is that the inflation
 genie seems to have been brought under control with the resolute
 policies of the RBI, with core inflation dipping to 5%. These
 developments as well as the gradual return to normalcy in the US, bode
 well for future growth as hopefully the painful period of deleveraging
 across the globe should be drawing to a close.
 
 For the digital pay TV industry, FY 11-12 was a remarkable year during
 which the Government wrote into law the Digital Addressable System
 mandate, which envisages the mandatory transformation of the entire
 television distribution system through a digital pipe by December 2014.
 
 This is truly a landmark opportunity for all digital television
 distribution platforms and your Company as the pioneer and leader in
 the digital TV revolution is uniquely placed to reap the benefits of
 the DAS mandate.
 
 Your Company continues to strengthen its infrastructure, service, and
 CRM capabilities in anticipation of the huge surge in demand expected
 over the next three years as an outcome of this mandate and is well
 placed to retain its leadership position in the market place. Your
 Company now has the deepest distribution reach in both urban and rural
 areas, reaching over 80,000 retail outlets for STBs and reaching over
 2,00,000 outlets for recharge availability. Unique tie ups with
 organizations such as FINO enable your Company to reach out deep into
 rural India as well. Your Company has expanded its direct service
 network to 96 cities and has plans to increase this network to over 200
 cities in the near future. Your Company has substantially increased its
 investments in Customer relationship management and support and
 currently has the capability of handling and servicing over 3 million
 queries and customer calls every month.
 
 During the year under review, your Company continued to maintain its
 leadership in the marketplace and added 2.5 Mn subscribers, taking the
 overall subscriber base to 12.7 Mn subscribers as of March 31, 2012.
 Your Company is now the third largest DTH platform by subscribers
 globally and the largest operator outside of the USA.
 
 Revenues continued to grow strongly with topline growing 36% to 1957.8
 cr, while EBITDA marked a substantial jump of 109% to 498.4 Cr. Steady
 growth in ARPU was maintained with ARPU for the year being Rs. 153.
 
 Your Company continues to focus on innovation and product development.
 During the year, in the industry first, your Company introduced the HD
 DVR with unlimited recording facility at no extra cost to its
 customers. The product has been extremely well received in the
 marketplace and should further help reinforce the Company''s leadership
 position in the market.
 
 During the fourth quarter, your Company unveiled the new brand
 positioning Sab Par Dish Sawaar Hai to capture the passion of the
 television viewing as experienced through Dish TV. The campaign with a
 memorable jingle, resulted for the first time, in a DTH Company bagging
 the top spot in the most recalled advertisement during the month of
 February 2012.
 
 Your Company continues to set the trend and tone for the industry both
 in product innovation, communication and customer delight. The huge
 opening up of the market with the advent of the DAS mandate will
 provide yet another opportunity for your Company to demonstrate its
 continued leadership in communication, innovation and customer
 satisfaction leading to superior returns to all stakeholders in the
 years ahead.
 
 Subhash Chandra 
 Chairman