Dear Shareholders,
 
 Infrastructure, energy and petroleum are the major growth drivers of
 economies the world over including India. Moreover, with the Prime
 Minister''s continued reaffirmation of his goal of achieving double
 digit GDP growth, India is now one of the focal points for investment
 globally. We therefore believe that India has the highest growth
 potential for infrastructure business and have geared ourselves to tap
 the same.
 
 Like any other business opportunity, there are challenges which need to
 be confronted. The most important being persistent inflation; which has
 resulted in increased cost of implementation of projects. Another major
 impact of inflation has been repeated hike in interest rates. There has
 also been a meltdown in the equity markets; particularly in the
 infrastructure sector. The global scenario also looks bleak in the
 short term with the looming American and European debt crisis while at
 the domestic level there is some uncertainty on pace of privatisation
 due to certain unfortunate revelations of financial impropriety in
 various government tenders. However your Company has the required
 managerial and financial resources to maneuver through these challenges
 and drive sustainable and stable growth of the organisation.
 
 Since my last communication with you, the Company has started tolling
 operations of the Mumbai-Nasik Highway Project. The Company has also
 achieved financial closure of Patna-Muzafarpur Highway Project and
 Paradip Port Project and additionally taken exploratory steps for
 venturing into thermal power generation. I am also happy to inform you
 that your Company has started receiving dividends from
 Rajahmundry-Dharmavaram Highway Project and Dharmavaram-Tuni Highway
 Project which shall be utilised for meeting the capital expenditure for
 other projects.
 
 The Company will soon approach you with a rights issue of equity shares
 to the extent of about Rs. 200 crores; which will mainly be used as
 equity contribution towards ongoing projects. As your Company is
 continuously investing in new and existing projects, the Company has
 not declared any dividend for the Period.
 
 One of the most critical areas which drive stakeholder value is a
 strong team and I would like to thank each and every colleague for
 their efforts and support provided throughout the year. Mr. K. K.
 Mohanty has taken over the reins of the Company recently as the
 Managing Director. Mr. Mohanty brings varied skills to the Company, key
 among them being enterprise building, economic value creation and
 efficient financial engineering which he has garnered in over thirty
 years of experience in the infrastructure sector. Mr. R. K. Malhotra,
 with over thirty two years of civil engineering experience in the
 parent company has been appointed on the Board as a whole time
 director. Mr.  Malhotra shall be in charge of project engineering and
 execution. Both these appointments have been placed before you for your
 approval.
 
 Looking ahead, your Company intends to set on a high growth trajectory
 by focusing on early delivery of existing projects and procurement of
 value accretive projects. The management is also mulling the
 possibility of encashing the intrinsic value of some projects with a
 view to meet the funding requirements of the existing and future
 projects.
 
 Gearing for the future, the Company shall strive to expand its basket
 of projects in existing as well as new sectors and also realigning
 sectoral focus. The Company also intends to establish its global
 footprint and explore opportunities in certain selected emerging
 economies. Your Company has always been known as a pioneer in the
 Public Private Partnership arena. We intend to carry forward this
 legacy by striving to create standards in the three basic tenets of
 infrastructure development; viz: quality execution, engineering
 innovation and financial engineering. This shall ultimately result in
 higher value creation for all stakeholders including our beloved
 motherland.
 
 I thank you for your cooperation and continued support to the Company.
 Together, let us make this an infrastructure company the nation and the
 world will be proud of.
 
 Regards,
 
 Abhijit Rajan
 
 Chairman & Managing Director
 
 Date: August 11,2011