Letter from the CEO
 
 The year 2010-11 was marked by periods of volatility and lackluster
 performance in the Indian Capital Markets. Global uncertainties
 continue to rise primarily driven by the sovereign and banking sector
 default risks in part of Europe, and most recently in the United
 States. A rise in the global equity markets may shift investor
 preference away from emerging markets to advanced economies.
 
 Global uncertainties as well as domestic developments impacted Indian
 Financial Markets. They however remained largely orderly, despite the
 challenges posted by persistent inflation and the consequent monetary
 tightening by the Reserve Bank of India, culminating in eleven
 successive rate hikes. Therefore, markets remained range bound for most
 part of the year. The subdued activities of Flls, interest rates moving
 north, inflationary pressures, rising crude prices and the Tsunami in
 Japan all contributed to the markets remaining depressed. The primary
 markets also echoed this sentiment as large number of IPOs did not
 reach subscription levels as anticipated, due to significantly lower
 retail participation.
 
 In India, another major factor affecting the performance of most
 capital market players was the dynamic shift of volumes from Cash
 Segment to Future & Options Segment.  This has resulted in
 significantly lower broking incomes, thereby affecting the overall
 performance.
 
 Your Company too has to an extent, withstood the challenge of the
 dynamic shift of volumes from , Cash Segment to Future & Options
 Segment. Our strong fundamentals focus on processes, people and
 technology has helped us through this challenging phase. Your Company
 is actively looking into alternate revenue generating models to recoup
 the yields lost on account of this dynamic shift.
 
 Notwithstanding the difficult and challenging environment, we have
 continued with our maxim to reward our shareholders by announcing a 50%
 interim dividend (i.e. Re. 1/- per equity share on face value of Rs.
 21- per equity share) during the year. I am also pleased to announce
 that CRISIL has yet again reaffirmed our BQ-1 Grading, which is once
 again a reflection on our quality of operations and customer service
 strengths.
 
 The long term outlook remains positive for the Indian Equity Market in
 the overall context of positive demography, economic growth and
 earnings momentum. The growth prospects and the related capital
 requirements of Indian Companies will continue to drive strong growth
 in the Indian Capital Markets. Your company is well positioned to
 capitalize on the positive momentum once these temporary dark clouds of
 uncertainty are behind us.
 
 Thank you.