ILandFS Investment Managers

The financial year that has just gone by has seen extreme upheaval in
 the world financial markets. The problem had its origins in the relaxed
 monetary policies and low interest rates prevailing in the United
 States for over a decade. The lax monetary policy was accompanied by
 extreme latitude in the supervision of banks. The net result was a
 significant under-pricing of risk and excessive leveraging. In due
 course, the contagion had spread to the European markets as well
 
 Several economists had been warning the investing community about the
 developing crisis in the sub-prime mortgages. Yet, when the storm
 arrived in the June - September Quarter of 2008, the intensity of the
 disturbance took everyone by surprise.  Practically, all the developed
 economies as well as several not-so-developed ones, have gone into
 recession, and Governments across the world as well as the IMF have
 been forced into unprecedented emergency measures. The rate of decline
 has come down but the revival is yet to come
 
 Our national economy, despite its integration with the global economy,
 has largely escaped the fury, primarily because of the prudent and
 conservative policies followed by the principal financial regulator.
 Although the external sector of the economy has been deeply affected by
 the global developments, the robust domestic consumption has been the
 major contributor to the continued significant growth in our economy.
 Investment in Industry has continued despite the severe constraints
 imposed upon the flow of financial credit. Therefore, as and when the
 world economy recovers, we shall witness a faster growth
 
 The Company has been able to continue its planned growth in the funds
 under management which has now reached US.5 billion. We have been
 able to continue our investment activity, though at a slower pace than
 before, and the quality and valuation of the deals have improved
 because of the slowdown
 
 The return of a stable Government following the elections, promises
 concerted action upon various fronts to restore our growth impetus. We
 look forward with confidence and optimism on continued, profitable
 growth for the Company
 
                                                    With best wishes
 
                                                           S M Datta
 June 5, 2009