Dear Shareholders,
 
 The global economy is now fraught with uncertainties, with the US and
 Euro zone economies facing unprecedented crisis. Weak economic recovery
 in the US and the spread of debt burden in the US and Euro zone can
 decelerate the pace of global economic growth. Despite the looming
 clouds and the hidden fears of slower than expected global recovery,
 India will continue to grow much faster than developed economies. The
 country''s enormous domestic demand, driven by rising affluence in
 semi-urban and rural areas, is expected to catalyse the next phase of
 economic growth.
 
 India''s gems and jewellery industry will be largely benefited by rising
 aspirations and increasing disposable income of people residing in
 Tier-2 and Tier-3 cities and towns. Recently, the preference for
 branded jewellery has also increased substantially among the rural and
 semi- urban populace. At Gitanjali, we are aggressively focusing at
 expansion in Tier 2 and Tier 3 towns and cities.
 
 Our strategy has been to market multiple brands with a multi- channel
 approach across varied geographies. Celebrity endorsements have also
 been one of our highly successful strategies to grab maximum ''eye
 share''. Let me enumerate the specific rules we have adopted to drive a
 multi-brand and multi- format strategy.
 
 Rule 1: Each brand must be meant for a specific target segment Studies
 show that consumers purchase a product, when they specifically know
 what the product is, what it stands for and what status symbol it
 carries. Hence, it is important to distinguish amongst the various
 product brands and clearly define what each brand would offer and for
 whom the brand is meant for.
 
 Rule 2: Each brand must carry its own architecture and personality,
 which relates to the brand ambassador It is important for the brand
 ambassador''s personality to relate to the brand image we wish to
 instill in the consumer''s mind.
 
 Rule 3: Each brand must be glocal, a combination of global and local
 Brands must be country specific, as different geographies have
 different cultures, lifestyle patterns and income or savings patterns.
 
 Rule 4: Adopt clearly defined advertisements that are specifically
 meant for the target audience, with subsequent ads reflecting the same
 brand perception
 
 A new brand must be launched with clearly defined and targeted ad
 promotional campaigns. Positioning a new brand is easier than changing
 the perceptions of an existing brand. The initial brand advertisement
 should be carefully crafted to establish the brand''s identity, with
 subsequent advertisements complementing the initial one.
 
 Gitanjali is today one of the leading global players in jewellery
 branding and retailing. The Group is present across the entire value
 chain, right from sourcing diamonds to retailing jewellery.
 
 The year 2010-11 was an outstanding year for us. Our revenues surged by
 45%, catalysed by powerful branding initiatives, launch of new
 collections and retail sales. The year focused on retail expansions of
 the franchise, shop-in shop and owned store formats. During the year,
 we increased our own stores from 185 to 210, and added 40 new
 franchises to take the store count to 255.  The shop-in-shop modern
 retail format reached 520 at the end of FY 2011. Since many of these
 stores were started in the last three years, we are now achieving
 robust sales from most of them. We are expecting an overall growth of
 40-45% in our retail segment.  As of 31st March, 2011, Gitanjali''s
 retail space stood at over 1.3 millions square feet. Gitanjali
 currently occupies about 60% of the Indian organised mall space
 belonging to the jewellery category.
 
 The Group underwent an identity makeover during the year. This was
 primarily required to establish our multiple brands and to position our
 Group as one of the largest global conglomerates in our industry,
 offering a tantalising array of brands in the lifestyle and luxury
 segment. The new corporate identity is an endeavour to reinforce
 consumer trust in our ''brand strength'' or brand capital, as well as to
 communicate the values each brand espouses.  The evolution and vision of
 the Group also needed to be re- emphasised.
 
 Global acquisitions have been high on our agenda to enhance visibility
 and acquire knowledge. During the year, we acquired Giantti Italia Srl.
 This Italian jewellery company will operate as our wholly-owned
 subsidiary. Besides providing access to designing and branding
 expertise from Italy, the acquisition would help Gitanjali to grow its
 overseas business. Globally, Gitanjali has stores in the US and the
 Middle East.
 
 We are also focusing on aggressive expansions in India, increasing the
 retail presence to 2 million square feet by FY 2015. With organised
 domestic retail expected to grow annually at 10-12%, Gitanjali expects
 to grow 25-30% in the next five years. Alliances with global players
 have helped us bring innovative and unique design collections. Te
 lifestyle business and the branded jewellery retail business derive
 synergy from each other, thus enhancing market visibility.
 
 2010-11 has set the pace for more exciting innovations, branding and
 retail expansion at Gitanjali. Tanks for your trust and support. It''s
 our most coveted asset to fuel future growth.
 
 Warm Regards,
 
 Mehul C Choksi
 
 Chairman and Managing Director