Dear Shareholders:
 
 Over a period of lime my conviction for creating clean, innovative
 tech- solutions which are also sustainable has only strengthened
 further. We at Moser Baer are truly committed towards creating a
 sustainable profile for the company. How do we do it and what does it
 mean for us? It means outperforming the expectations of our customers,
 striving to create immense share- holder value, securing the long term
 commitment of our employees by offering fulfilling careers, and helping
 develop and transform the communities in which we operate. We are
 making huge efforts towards creating safe and sustainable processes and
 focussing on not only about what we do but also how we do it.
 
 Today the world looks very different post economic crisis. Most of the
 industries are passing through difficult times since 2008. And along
 with it the threat of climate change has forced entities world over to
 relook at their business models and issues pertaining to
 sustainability. Today, I am happy to say that your company has taken
 timely steps to keep pace with the changing world.
 
 To give you an example: by optimizing machine efficiency, your company
 has saved 14.52 million units of energy which amounts to saving 6243
 tons of C02 emission only in 2010-11. Additionally, by converting HFO
 based generators to CNG base we have success- fully reduced 30542 tons
 of C02 emission during the same period. Such steps have helped us
 reduce our carbon footprint significantly. Given that Moser Baer is not
 a part of the polluting industry, still we are deeply wary of our
 carbon footprint and to reduce it further we promote more recycling. I
 am proud to state that by using ingenious ways of recycling wood
 pallets for packaging, we have saved 10626 trees!
 
 However, several key questions are still around. How can we make our
 products and processes more sustainable? Globalisation, use of newer
 technologies and increasing transparency has changed the rules of the
 game. How can we gauge the impending risks ahead? When we have
 unpredictable environment, how do we forecast and analyse for better
 strategic planning? Answers to these complex issues point at one
 consistent direction - need to develop sustainable competitive
 advantages. I have come to believe that instead of being really good at
 doing few particular things, we must strive to be really good at
 learning how to do new things. To stay ahead in a rapidly changing
 environment in a sustainable way we will continue with parallel
 innovation and superior flexibility to enhance our adaptiveness, for,
 adaptive approach is the key for us.
 
 I must compliment our dedicated pool of employees for their innovative
 ideas, their hard work and commitment and their full support. We
 treat them with dignity and respect and will continue investing in
 their development and providing them with a safe and healthy working
 environment
 
 Now let''s see how our different businesses have performed in the year
 that passed by
 
 SOLAR PHOTOVOLTAIC
 
 The increasing demand for clean energy which is non-depleting and
 environmentally benign led to a robust growth in the global solar
 industry during the year 2010-11. You will be delighted to know that
 Moser Baer has achieved the distinction of being the first Solar PV
 Company from India to achieve 100 MW of instalations glcoalyuncer
 its own brend''. We expanded our presence in 9 more countries during the
 past year, thus taking our global footprint to 35 countries across
 the globe Our continuous focus on Six Sigma and lean methodologies has
 enabled the com- pany to increase the existing module line capacity
 from 80 MW to 110 MW As a result of this, we have reached a combined
 module capacity af over 200 MW across technologies and have thus become
 one of the leading PV players in India.
 
 We have launched a lead-free Crystalline Silicon Module which is
 specifically designed to reduce carbon footprint. Additionally, your
 company has started domestic production of India''s first (YUKITA Brand)
 junction boxes in technology partnership with Yukita Electric Wire Co.
 of Japan for solar PV modules Junction boxes are a critical component
 in solar PV installations and with our installed capacity of 2.5
 million junction boxes a year, we are confident of catering to the
 entire demand for the same emanating from the phase 1 of the National
 Solar Mission
 
 Apart from manufacturing, your company has also established its
 leadership position in concept to com- missioning of solar projects,
 thereby, showcasing its strong EPC capabilities. We have successfully
 executed more than 150 solar installations thus achieving the
 leadership status in the EPC segment. Some of the installed systems are
 located in the most challenging locations for Defence at an altitude of
 16000 ft. in minus 5°C temperature condition, with a wind velocity of ~
 100 km/hr and at places having minimal oxygen levels.  Notably, the EPC
 arm has already commissioned a 5 MW Thin Film plant in Sivaganga, Tamil
 Nadu. Among other installations across the country, there are more than
 20 standalone power plants installed in Leh & Kargil - the most
 challenging terrain
 
 We are also proud to announce that your company has won several awards
 and recognitions for the photovol- taic business during the past year.
 Apart from being recognized as the only solar power company in the
 world to receive 5-star rating by TUV Rheinland. we were also awarded
 the Qimpro Quality Award and the Golden Peacock Award We are
 consistently working on bringing down the costs of manufacturing by
 improvement in our internal processes and through our ongoing
 Research & Development efforts.
 
 STORAGE MEDIA AND CONSUMER PRODUCTS
 
 The storage media industry is witnessing significant changes globally
 which is driving a consolidation in the sector resulting in a
 significantly improved market position. I am happy to inform you that
 Moser Baer continues to be among the market leaders in the optical
 media segment, even in such challenging market conditions. There has
 been an increasing demand for external storage devices like Flash
 Drives, SD and Micro SD cards in the last five years, which is expected
 to continue in the foreseeable future too. To add to the existing
 manufacturing capacity of 2 million memory devices per month, your
 company has been investing majorly in the manufacturing capability of
 Memory Cards and Pen Drives in India.
 
 We also continue to enjoy a healthy market share in the Consumer
 Electronics and IT peripherals segment due to a wide range of
 innovative products launched during 2010-2011. A robust channel
 distribution network and strong brand presence helps us achieve our
 sales targets, and our highly competent design and testing center
 enables us to introduce new products at regular intervals.
 
 ENTERTAINMENT
 
 Following the calibrated growth approach, your company continues to
 dominate the home entertainment space Our unique business model is
 aimed at attracting customers through original high-quality products at
 affordable prices Since the market conditions were quite challenging
 during the past year, we acquired only those films that recovered its
 investment within 90-120 days of release date. We are now looking to
 acquire numerous big banner films in order to maximize our
 profitability
 
 Another strategy we have adopted to expand our business is utilizing
 the growing reach of retailers in the country. We have started
 partnering with retail giants
 
 Leisure and other strong brands in retail, which have a strong presence
 in major cities in India.
 
 Your company is taking sure steps in the right direction and
 strengthening its core businesses. We are also making conscious efforts
 and investments in fostering innovation and getting the right talent on
 board so that we can fulfill the expectations of our stakeholders. I
 can assure you that we will continue to save resources by being more
 efficient at what we do and we will continue to invest in clean
 sustainable processes as part of the triple bottom line approach as it
 is the key to our business model. This way we are certain that our
 efforts will incorporate all three critical dimensions: environmental,
 social and economic.
 
 By employing breakthrough technologies at our manufacturing processes
 we hope to contribute positively to the global challenge of climate
 change. Needless to stress that we are developing new processes and
 more sustain- able practices to work in partnership with our customers
 and suppliers as well to help them achieve their environ- mental goals.
 
 I thank all of you for being part of this exciting journey of growth
 and hope that you will continue supporting us in our future endeavors
 too. It is your support that will inspire Moser Baer to gain more
 recognition, profitability and prosperity in the coming years
 
 Best regards, 
 
 (Deepak Puri)