In my last two years annual report speeches, I had promised to
 accelerate your companys growth trajectory, partaking of the nations
 burgeoning economy as well as contributing to its growth momentum.
 These last three years, while we were trying to deal with the aftermath
 of the 2008 meltdown, we had also simultaneously embarked on a major
 transformation of our business and took some hard decisions on the way.
 Today, I am here before you to redeem those promises as I announce a
 record performance by the company on all the business parameters for
 the year ended March 201 1 - an Assets Under Management of Rs. 19,825
 crore, Revenues of Rs. 2,510 crore, Profit After Tax of Rs. 751 crore.
 In keeping with our philosophy of rewarding our shareholders, your
 Board of Directors has recommended a very handsome dividend payout of
 Rs. 10/- per share for the full year, including Rs. 5/- per share
 interim dividend already paid. In the coming year, well redouble our
 efforts to take your company to the next level not only in terms of
 size & scale, but also in terms of profitability and sustainability.
 
 Sharpening Our Focus
 
 Sustainability comes with a long term vision and focus. We had
 envisioned a lucrative future for the company premised on three tenets
 inherent to our growth strategy:
 
 Secure,
 
 Scalable &
 
 Sustainable growth
 
 The above three key elements continued to define our growth strategy.
 The year gone by represents a continuum in our quest for the last three
 years to morph into a successful mortgage lender. As promised in my
 last speeches, we have transformed our loan book into almost 100%
 secured lending, with 71% of it comprised of mortgage loans.  Our
 continued focus on low risk mortgage loans, diversified & long duration
 liability base, reduction in cost-income ratio and lower delinquency
 levels has helped company post higher revenues and profits in FY 2010-1
 1. This is a welcome indication of our magnitude in terms of growth and
 sustenance in this highly competitive market. Over the last couple of
 years, we have steadily grown our Home Loan portfolio by offering loans
 at competitive rates to borrowers with good credit profile. We have
 been able to carve a distinct niche in this segment not only by lending
 at rates comparable with the best in the industry, but also through our
 expeditious disbursal process, thereby contributing our bit to the
 socially desirable goal of home ownership.
 
 Ahead of the curve
 
 Thanks to our prudent approach and thrust on mortgage based lending,
 IBFSL could not only come out of the preceding few years economic
 turmoil unscathed, but reaped rich dividend when the economy started
 showing signs of revival during the last year. Call it our
 farsightedness or nimble footedness; we had adopted a cautious lending
 approach when others were jumping the sub- prime wagon, and accordingly
 shifted our focus to relatively safer, stable and sustainable business
 model. A tribute to these visionary steps came in the form of our
 enhanced long term debt rating of AA+, making us one of the very few
 NBFCs in the country to enjoy this rating. The rating is a testament to
 your companys strong business growth with its safer asset class of
 mortgage loans, improvement in maturity profile of its liabilities and
 improvement in its profitability. The robust financials of the company
 as reflected in the rating upgrade, together with our single minded
 focus to pursue opportunities helped fuel our growth.
 
 Robust Outlook
 
 Today, we are one of the best capitalized NBFCs (our CRAR stands
 upwards of 20% as against the prescribed 15%) with healthy ratings for
 both its long term (AA+) and short term (P1+) debt, comfortable
 liquidity and fund raising capabilites as demonstrated by the
 stupendous success of our bond offerings to the tune of over Rs. 3,000
 crore in FY 2010-11. The Company has seen six quarters of continuous
 reduction in Gross and Net NPA levels as low-risk mortgage portfolio
 increases the asset base, while contributing very low incremental
 delinquencies. The Gross NPA stood at 1.03% and Net NPA stood at 0.37%.
 Total provisions were 4.19 times the regulatory requirement. On the
 back of a strong and steady demand for Home Loans, the company has seen
 sustained growth in its Assets Under Management during the year. Loan
 Assets have grown to Rs. 19,825 crore as of March 31, 2011. Long-term,
 Low-risk Mortgage Loans constitute 71 % of the Asset Book.
 
 Building Relationships Key to Improved Resource Profile
 
 Our ongoing efforts to broaden and deepen our banking relationships are
 borne out by the fact that despite being primarily reliant on the
 wholesale liabilities, your company has a well diversified resource
 base. Amongst its lenders, the company now counts 54 strong
 relationships: 21 PSU banks, 1 1 private and foreign banks, and 22
 mutual funds, provident funds, pension funds and insurance companies.
 These include almost all the marquee lenders in their respective
 domains, resulting in stable and long term sources of funding. Funding
 cost has been brought under control while the maturity profile of our
 borrowings has been elongated so as to manage our ALM in a much better
 way.
 
 Yielding Dividends
 
 Growth means delivering strong returns for our shareholders: IBFSLs
 audited report for the year 2010-11 depicts an excellent performance:
 The Consolidated Total Revenues stood at Rs. 2510 crore, while the
 Profit After Tax was at Rs. 751 crore, as on March 31, 2011 as compared
 to March 31, 2010.
 
 The Directors have recommended final dividend of Rs. 5/- (250%) per
 share of face value of Rs. 2/- Proposed total dividend for FY 2010-1 1
 (including interim dividend of Rs. 5/- already paid) is Rs. 10/- (500%)
 per share of face value of Rs. 2/-. EPS is Rs.  23.86 up by 140% from
 Rs. 9.94 for FY 2009-10.  Return on Equity (ROE) has grown to 17%.
 Growth in Low Risk Mortgage Loans, Diversified and Long Duration
 Liabilities, Decreasing Cost-Income Ratio (down to about 20%) and
 falling delinquency levels have boosted the companys revenues and
 profits in the year 2010-1 1. Improvement in our internal systems and
 controls has also resulted in reduced operating costs for the last
 three successive years, and we hope to continue this trend.
 
 New Business Initiative
 
 Indiabulls Mutual Fund, sponsored by your company has got final
 approval from Securities & Exchange Board of India to launch its mutual
 fund business.  The company plans to hit the market with its maiden
 offering in both equity and fixed income segment in a couple of months.
 It is at an advanced stage of operational preparedness with almost the
 entire research and operations team in place, and is currently working
 on the initial product profile. IBFSL together with other group
 companies has a strong country wide presence in its lending business.
 It considers mutual funds business a natural extension of its existing
 financial services business. Given the opportunity Indian markets
 offer, Indiabulls Mutual Fund would be retail focused, targeting
 Indias growing investor base.
 
 Lastly, I take this opportunity to warmly thank all our shareholders,
 customers, employees, bankers, and regulators for reposing their faith
 in us and motivating us to excel in all facets of our business.
 
 Thank you!
 
 Sameer Gehlaut
 
 Founder & Chairman