Dear Shareholders,
 
 It gives me great pleasure to welcome you to the 48th Annual General
 Meeting of your Corporation. The Annual Accounts together with the
 Directors'' Report have already been circulated and with your permission
 I take them as read
 
 Economic Scenario
 
 In the financial year 2007-08, the Indian Economy pegged GDP growth at
 9%. Despite a global slowdown, the Construction Industry remains a
 booming industry with immense potentials for heavy and civil
 engineering projects including both residential as well as commercial
 complexes. With inflation rate hovering around 12% and measures taken
 by the government to contain the money supply resulting in hike in
 interest rates and unprecedented rise in prices of cement and steel,
 the construction industry is in a state of flux. The contractors are
 finding it difficult to deliver the projects in time as their cash
 flows have gone hay-wire and on the other side the customers are wary
 on making investment decisions. The situation is unlikely to stabilize
 in the near future. This is a matter of great concern since most of the
 projects are getting delayed or heading towards disputes. Your Company
 has taken proactive steps and certain innovative decisions have been
 taken in the Board to ensure that projects do not suffer and
 credibility of your Corporation and the profitability remain intact.
 
 Financial Performance
 
 Despite the above environment, your Corporation achieved an all time
 high turnover (sales) of Rs.1969.99 crore (US $ 500 million approx.) in
 the year 2007-08, thus registering an increase of 35% over the previous
 year turnover which was Rs.1459.93 crore. You will also feel proud to
 note that the gross margins (profits) surged by 226% from Rs.129.42
 crore to Rs.421.54 crore (US $ 100 million approx.) while net profit
 after tax enhanced by 245.98% from Rs.80.88 crore to Rs. 279.83 crore.
 Your Corporation today is a ''no-debt'' company having cleared all the
 old liabilities till date. In view of the spectacular performance, your
 Directors have recommended a dividend @ 20% of profit after tax
 amounting to Rs. 55.96 crore, which is 62% of the paid up capital of
 Rs.90 crores.
 
 Here, I would like to make a special mention about the overall growth
 of your Corporation during the past seven years. The compounded average
 growth rate (CAGR) has shown upward movement in net worth by 90%,
 turnover has risen by 30% and profit after tax has shown increase of
 106%. With this achievement, your company has now become the largest
 Public Sector Company in the Construction Industry.
 
 I am delighted to inform you that your Corporation has made a
 successful presentation before the Public Enterprises Selection Board
 on 23rd July, 2008 and is likely to be bestowed with Schedule ''A''
 status shortly. Formalities for grading your company as a Mini-Ratna
 have already been completed and the categorization is expected soon.
 Business Outlook
 
 Your Corporation aims to achieve a turnover target of Rs.4500 crore by
 2012. Keeping this in view, the Corporation will continue to focus on
 development of business in Real Estate, Power and Environmental Sectors
 with its core competency lying in Construction, Consultancy, Project
 Management, Real Estate Development and EPC Contracts.  Your
 Corporation has already completed some large value real estate projects
 and presently is undertaking prestigious projects in Delhi and Kolkata.
 Ministry of Rural Development has selected your Corporation as an
 executing agency for construction of Rural Roads in Bihar & Tripura
 under Pradhan Mantri Gram Sadak Yojna.  Works for construction of rural
 roads have been awarded of 944.71 kms in Bihar and 1750 kms. in
 Tripura.  Similarly, your Corporation has been appointed as an
 executing agency by the Government of Haryana for executing projects
 under JNNURM. Your Corporation is also making efforts to expand its
 operations overseas in consortium with other companies.
 
 Project Management & Consultancy Services
 
 Your Corporation is working as an extended arm of Ministry of Urban
 Development, Ministry of Housing & Urban Poverty Alleviation, Ministry
 of Defence, Ministry of Home Affairs and various other Central/State
 Government Ministries. PMC Services entails implementation of the
 projects from Concept to Commissioning by ensuring Cost & Quality
 competitiveness. Your Corporation is executing infrastructure
 developmental projects in North East Region, Indo-Pak & Indo-Bangla
 Border Fencing works, Defence Housing Sector Projects at different
 stations and Solid Waste Management at different Airfield Towns all
 over India.
 
 Computerization and Transparency
 
 Your Corporation is continuing to observe good corporate practices
 aiming at total transparency and development of ERP Software System is
 in progress. Web site of your Corporation has been hosted on the
 Government portal ''nbccindia.gov.in'' which is linked with the website
 of Ministry of Urban Development, Sarkari website, GOI directory and
 also major search Engines viz. google, yahoo and msn. The website has
 dynamic link with NIC Tender Portal to facilitate posting of all
 tenders/NITs on web. The web site has secured web based e-mail
 facility. E-auction has been resorted to for real estate projects,
 resulting in record realization in a most transparent manner.
 
 Customer Satisfaction
 
 Your company''s approach is towards Total Customer Management (TCM) in
 a structured form. In every project a customer feedback is taken at
 regular interval. Your Company''s priority is to provide value
 addition to clients by implementing the projects within time and cost
 while ensuring high level of quality. Customers have reposed their
 confidence by placing repeat order on your Corporation.
 
 Social Responsibilities
 
 NBCC is committed to the principles of Corporate Social
 Responsibilities and continuing its membership with the Global Compact
 Society. In case of any disaster, our staff is always ready to move in
 any affected part of the country for providing rehabilitation services
 to the needy. In the past, your Corporation has undertaken the
 rehabilitation work for the earthquake affected people of J&K and
 victims of Tsunami in Andaman & Nicobar Islands.
 
 Acknowledgements
 
 I would like to place on record my sincere thanks to the Ministry of
 Urban Development, Ministry of Housing & Urban Poverty Alleviation,
 Ministry of Home Affairs, Ministry of Defence, Ministry of Rural
 Development, Ministry of Commerce, Ministry of Finance, Ministry of
 Information & Broadcasting, and various Departments of the Government
 of India and the State Governments and various client Organisations,
 PSUs etc. for continuously reposing their faith in NBCC. I must mention
 the trust, support and encouragement that I have received from the
 Hon''ble Urban Development Minister and the Secretary, Urban
 Development.
 
 I sincerely express my appreciation and gratitude to all members of the
 Board for their invaluable support and guidance in the decision making
 processes of your Corporation.
 
 Last but not the least I would also like to place on record my
 appreciation for the whole hearted contribution made by the employees
 at all levels without whose support it would not have been possible in
 achieving new milestones every year, for the Corporation.
 
                                                   (Arup Roy Choudhury) 
 
                                        Chairman-cum-Managing Director
 
 Place: New Delhi
 
 Dated: August 14, 2008