Dear Fellow Shareholders,
 
 FY11 was a truly transformational year for Network18 and I am delighted
 to place your company''s Annual Report for the year 2010-11 in your
 hands.  In the year gone by, we returned to operating profitability at
 a consolidated level, signaling the onset of a new growth phase in the
 group''s journey with our Television and Digital businesses performing
 above our expectations. I am also pleased to report that the ''Scheme of
 Arrangement'' that we announced during the year, aimed at the
 optimization of our group companies, was recently approved by the
 Honourable High Court.  The optimisation of the group structure heralds
 a new beginning that will
 
 help catalyse value creation for all our stakeholders.
 
 Our Television Business with its nine market leading channels across
 News and Entertainment crossed the Rs. 1100 crores mark for the
 financial year with operating profits up 9x from the previous year. Our
 Digital and eCommerce Business delivered combined revenue of over Rs.
 200 crores. Our operating assets across platforms including our entire
 market leading bouquet of channels: CNBC-TV18, CNN IBN, Colors, CNBC
 Awaaz, IBN7, MTV, VH1, Nick and IBN Lokmat; our formidable online
 properties like moneycontrol.com, ibnlive.com and in.com; our
 pioneering businesses like HomeShop18 and BookMyShow; our print titles
 under the Forbes India and Infomedia18 umbrellas – each one of them had
 another spectacular year reasserting their preeminent market leadership
 positions. Our investments under the Capital18 umbrella and our
 fledgling businesses like E18, Newswire18 and Sport18 continued to grow
 from strength to strength breaking new ground on the way. 2011 was also
 special as we forayed into distribution with Sun18 Media Services and
 announced our partnership with AETN Network.
 
 From our humble beginnings as a one channel business news broadcasting
 company in the year 1999, we at Network18 have traversed a long journey
 growing rapidly as India transformed into an economic powerhouse in the
 twenty first century. At Network18, we have always believed that in the
 world''s largest democracy, the raison d''etre of a media network is to
 capture and reflect the mood of the nation and her people and enable,
 enrich and entertain audiences. We are a child of India''s
 liberalization and our expansion traces the expansion of India''s
 affluent and consuming classes and our network''s relative youth is
 reflective of a young and vibrant India. We are shaped by Indians''
 world view and reflect it back, shaping in turn their world view.  From
 business news to general news, from entertainment to digital media
 consumption; we expanded our electronic media offerings to fulfill the
 media needs of our consumers growing our business from one channel to
 ten channels and a host of digital and ecommerce properties.
 
 I believe that this journey is entering an exciting new phase as a
 billion young Indian dreams begin to fly and we endeavour to be the
 media that helps join the dots in each of these billion dreams. We
 expect that the growing Indian middle class and youth populations will
 drive long term growth in Indian media and entertainment spending which
 is considerably under-indexed
 
 compared to other emerging markets. In India different media segments
 like television broadcasting, digital, radio and print will not grow
 linearly and sequentially but grow simultaneously and exponentially
 albeit at different growth rates making this a unique and challenging
 media market.
 
 The Network18 family believes that your company''s strong brand
 recognition and salience, its leadership positions in television
 broadcasting and digital media and ability to leverage its cross-media
 ecosystem of audiences, advertisers and talent, position it well to
 capitalize on this promising and challenging growth opportunity ahead.
 The management continues to be focused on monetizing the leadership
 position across businesses to rapidly increase the return on
 investments made over the years and leverage the opportunities that
 these exciting times present to us.
 
 On your behalf, let me also take this opportunity to thank our
 employees whose talent, dedication and passion have taken your company
 from strength to strength. I would also like to place on record my deep
 gratitude to our investors, shareholders, business associates and
 bankers for their continued and unstinting support to your company.
 
 As we look ahead and embark on the next phase of our journey together,
 we are confident and exuberant yet humble and mindful. The best times
 are still ahead of us.
 
 With best wishes
 
 Raghav Bahl
 Founder, Editor & Managing Director,
 Network 18