As I look hack on the year gone by. I am convinced in my belief that
 India will take its rightful place in the world as a global superpower.
 Despite crisis and challenges.  Indias resilience to withstand and
 weather these adverse challenges is commendable. The Government managed
 to overcome several apprehensions and controversies which threatened to
 disrupt the Commonwealth Games - the biggest international multi-sport
 event to be held in Delhi - but it successfully averted attention from
 negative reporting with a spectacular opening and a resounding finish
 with global praise and applause.  Having embarked on the journey
 towards economic development. we must face all challenges and obstacles
 to ensure that our rightful place in the world is not compromised. I am
 pleased to inform you that as committed. The Leela Palace New Delhi
 opened several rooms in time for the Games - in the year that also
 marks the centenary of the establishment of Delhi as the capital city
 of modern India.
 
 With the grand opening of The Leela Palace New Delhi at Chanakyapuri.
 we have strengthened our position as a premier player within the luxury
 segment of the Indian hospitality industry. The hotel benchmarks new
 standards of luxury, service and comfort in the country.  The hotel is
 already creating waves in the international market. The Conde Nast
 Traveller UK has voted The Leela Palace New Delhi as among the best new
 hotels to be opened in the world in its Hot List.
 
 The hotel has also featured in the IT List of Travel + Leisure USA as
 among 50 favourite new hotels and in How To Spend It - the luxury and
 lifestyle supplement of Financial Times UK.
 
 We have strengthened our brand image in the international markets by
 placing strategic advertisements in well placed international
 publications. The Leela Palaces. Hotels and Resorts are the exclusive
 India partner for the GHA Discovery Guest Recognition Programme
 launched in Financial Year 2010. The programme already has 1.6 million
 members globally which should have a positive impact on the occupancy
 rate, driving incremental revenues and building customer loyalty
 
 Industry Initiatives
 
 Indias GDP performance continues to be strong and encouraging. The
 country continues to be an exciting destination for the global business
 and leisure traveller due to the continued pace in economic activity
 and the efforts made by the Ministry of Tourism promoting India
 overseas through the aggressive Incredible India campaign.  The pace of
 constructing hotel rooms however need to be accelerated and this can be
 done by giving the industry the much needed status of infrastructure
 industry. The hotel industry is a highly capital intensive industry and
 the considerable benefits it will get by granting infrastructure status
 will not only help in cheaper finance for expansion but also give the
 industry tax sops that will boost the tourism industry. This will in
 turn, create thousands of jobs enhancing the employment opportunities
 in the country.
 
 Performance Review
 
 In the fiscal year 2010 -11. I am happy to inform you that your company
 has announced encouraging results. With the stabilization of The Leela
 Palace Udaipur. improved performance of our other hotels and the
 addition of The Leela Palace New Delhi, the revenue is expected to go
 up by 45°. in the Financial year 2011-12. Going forward we also plan
 new properties in Agra. Lake Ashtamudi (in Kerala) and Jaipur.
 
 Acknowledgement
 
 People have always been our most valuable asset and I would like to
 acknowledge and thank the exemplary hard work and commitment of each
 and every employee of the Leela family who ensure that the Leela
 Experience is never compromised. I also take this opportunity to
 extend my gratitude to all our shareholders and Board members for their
 support and good wishes.
 
                                   Captain C.P. Krishnan Nair
                                   Chairman
                                   Hotel Leelaventure Limited