Dear Shareholders,
 
 It is a matter of privilege to present to you the Company''s performance
 for financial year 2011-12. During the year, the deteriorating global
 economy impacted the real estate sector in India as well. However, even
 in a hostile environment, Peninsula Land executed its projects in time
 and launched projects in new cities.
 
 World Economy
 
 The last one year has been tougher than what we expected. The world
 economy has gone through a very tough time. It clocked an annualized
 growth of 3.9% in 2011 and the fourth quarter last financial year has
 been pretty bad.
 
 The debt crisis in Spain, Greece and Italy impacted the stronger
 countries like Germany, France and UK. Nine Eurozone nations were
 downgraded by Standard & Poor (S&P).
 
 Over the last few weeks, there have been some positive developments and
 the financial indicators seem to have stabilized, especially in the US.
 The US economy has regained some traction but there are concerns about
 its sustainability. Even as the prospects for recovery have improved a
 bit, significant risk still remains.
 
 Real GDP growth should pick up gradually during 2012-13. It is forecast
 to slow to about 3.5% in 2012, from about 3.9% in 2011, and to return
 to 4% in 2013 as against the 3.6% projected earlier for both years.
 
 Indian Economy
 
 During the year, Indian economy grew at a nine-year low of 6.9% in
 2011-12, which can be attributed to external as well as domestic
 issues. International crude oil prices have surged and have been
 consistently over 0 per barrel for most part of last year. Exports
 from India to Europe were also affected due to the financial crises in
 Europe.
 
 During the year, the Inflation has been a major cause of concern and
 has been on the rise. The Reserve Bank of India did intervene and
 implemented measures such as increase in interest rates and CRR. Food
 inflation, after a seasonal decline, rose again. The growth rate of
 investment in the economy is estimated to have registered a significant
 decline during the current year.
 
 The Indian economy is estimated to have grown by 6.9% per cent during
 the financial year 2011-12, after growing at the rate of 8.4% in each
 of the two preceding years.  Agriculture is estimated to grow at 2.5%
 for 2011-12, a little lower than expected.
 
 The International Monetary Fund (IMF) as well as Asian Development Bank
 (ADB) has projected only a 6.9% economic growth for India in 2012. This
 is below the 7% projected in January this year.
 
 India is the only emerging economy for which growth projection has been
 pared.
 
 Real Estate Sector in India
 
 Over the last one and a half years, though the real estate sector
 witnessed a gradual consolidation, according to reports by rating
 agency Fitch: demand for office space is likely to be maintained at
 2011 levels. This momentum in demand will basically be driven by the
 additional hiring momentum by IT/ITeS sector which is the major
 consumer of office space in India.
 
 Though the real estate sector contributed only 5% of India''s overall
 GDP in 2011-12 as compared to a contribution of 10.6% in FY 2010-11,
 according to ULI- PricewaterhouseCoopers (PwC) report, India still
 leads the pack of top real estate investment markets in Asia.
 
 According to industry experts, the real estate sector in India is being
 recognized as an infrastructure service that is driving the economic
 growth engine of the country.  In fact, foreign direct investment (FDI)
 in the sector is expected to increase to US$ 25 billion in the next 10
 years, from present US$ 4 billion, according to a latest industry body
 report.
 
 Peninsula Land: Way Forward
 
 Peninsula Land has completed and executed 6.4 million sq ft of
 development in the residential, commercial and retail space till date.
 
 During the year, having completed Mumbai projects, the company spread
 its wings and launched projects outside Mumbai in new cities like
 Nasik, Pune, Goa, and Lonavala.  With the launch of these projects, the
 company has undertaken an additional development close to 3 million sq
 ft in these cities. And the value of these projects will be about Rs1500
 crores.
 
 In Goa, Peninsula Land is constructing premium residential development
 - Ashok Beleza, which is expected to be completed by the end of 2013.
 Since its launch, this project has received a favourable response from
 customers.
 
 Ashok Astoria, the residential projects at Nasik has already been
 launched and part of the project has already been sold. At Lonavala,
 work has started at Ashok Nirvaan, a second home project which will
 have modern contemporary villas.
 
 Even as the company is busy breaking ground and launching new projects,
 acquiring land had been the focus for the last 18-24 months. Over the
 last two years, the company has strengthened its land bank and acquired
 land parcels to the tune of Rs1150 crores. During the year, the company
 acquired properties in Mumbai, Pune and Bengaluru.
 
 With all this, Peninsula Land has embarked on the second phase of
 growth. And going forward, we will focus on monetizing our land parcels
 and executing our projects in time that will further strengthen our
 financial position.  The company has a surplus of cash and healthy
 debt- equity ratio.
 
 Let me thank all of you for the immense support and faith reposed in
 the company that has helped us to move closer to our goal. I am
 confident that this continued support will help us sustain our growth.
 
                                                       Yours sincerely 
 
                                                          Urvi Piramal