Dear Shareholder,
 
 The global economy has just undergone a seismic change.  These are
 testing times for all of us.We need to learn our lessons from this
 change and strategize our operations accordingly. The first and
 foremost lesson, in the role of leadership, not just of the managing
 director of the company but of the entire top management is the
 importance of being nimble on your feet by accepting, analyzing, and
 responding to changed circumstances.  I firmly believe that you require
 prudence and conservatism in addition to being resilient and flexible
 for building a strong foundation for the future. A diversified business
 portfolio helps in managing risks.  More importantly it is about
 bullet-proofing strategies by testing them under different scenarios.
 The key is also to never lose focus on the basic things such as costs
 and efficiency which will help us come out on the right side.
 
 Despite the overwhelming need for infrastructure in the country, the
 construction industry as a whole has been witnessing sluggishness 
 ( slow order inflows, high & rising interest costs & rise in commodity
 prices). This last year has been particularly challenging for the 
 Company and the performance has not met either our expectations or 
 targets; the revenue growth has been adversely affected by natural 
 calamities like flash floods, order delays and cancellations due to 
 environmental concerns and current political scenarios.
 
 Asia has become the engine of world growth and despite lingering
 economic uncertainty and ongoing political uncertainty, the outlook for
 India remains positive as a major contributing factor offering great
 opportunities.  The rapid changes of the last decade are only a
 precursor to the much greater growth and prosperity that we can achieve
 in the coming years and the Company is well placed to benefit from
 these opportunities. The Company is a key player in India''s economic
 landscape.  The company expects to deliver increased revenue and
 operating profit on the back of high levels of work in hand and
 improving economic conditions in the country.
 
 2011 FINANCIALS
 
 The figures below indicate the Company''s growth in the Industry on
 consolidation basis:
 
 ¦ Revenue from Operations increased by 8.93% to
 
 Rs 34,759.09 for the financial year ended March 31, 2011 from Rs
 31,909.33 million
 
 ¦ Operating profit (excluding other income) stood at Rs 4,619.75
 million.
 
 ¦ Profit before tax stood at Rs 1,847.17 million.
 
 ¦ Profit after tax stood at Rs 1,226.05 million.
 
 ¦ The EPS (fully diluted) stood at Rs 17.56.
 
 ¦ Net worth of the Company stood at Rs 14,196.16 million.
 
 BUSINESS PROGRESS 2011
 
 Construction & Engineering
 
 The order book as on March 31, 2011 stands at around 95000 million. We
 are confident of receiving a fair price of the contracts issued by the
 Government and doubling our turnover from the core business over a 5
 year period.
 
 Power
 
 The 1050 MW Coal based Thermal Power Plant, Tamilnadu is taking shape.
 Most of the approvals for imitating the construction process have been
 received. We expect the financial closure to be completed in FY 12.
 
 The DPR and land acquisitions of 144 MW Hydro Power project in
 Arunachal Pradesh have beencompleted and the Statutory Clearances are
 in place. The financial closure is expected to be completed and the
 construction of the project is expected to commence in FY 12.
 
 Transmission
 
 The Company has forayed into transmission business. The first
 assignment we received is from the Government of India to establish 765
 kv transmission system associated with Krishnapattam
 
 UMPP through tariff based competitive bidding process. The project is
 being executed jointly with Simplex Infrastructure Ltd and BS Transcomm
 Ltd through a special purpose vehicle viz Raichur Sholapur Transmission
 Company Ltd.
 
 Real Estate
 
 Real Estate like the power business is gaining sharper focus.
 
 Neotown''s first phase under the brand ''Smondville'' (construction of
 residential apartments) is scheduled to be completed by January 2012.
 
 Smondoville 2.0, the next version of Smondoville was launched to
 provide a customized solution with larger spaces, grand balconies,
 terraces, and a swimming pool. India''s first and largest strip mall
 over 16 acres under the brand ''Neomall'' was launched and is expected to
 be operation in 2013.
 
 The commercial project in Jogeshwari, Mumbai is in progress and the
 estimated time to complete the whole project is 30 months.
 
 The Mauritius project has commenced and is in line with the
 implementation program and infrastructure works have started.
 
 The execution and construction of the Nodia project under the brand Pan
 Oasis is running in full swing and the subsidiary executing the project
 has recognized revenues during the year from this project.
 
 In closing, I wish to thank you for the confidence that you have placed
 with us which fuels our drive to deliver value in the hands of all
 those who invest and team with us.