Dear Shareholders,
 
 It is a matter of great privilege to present to you the Companys
 performance for 2010-11 - a year when the real estate industry was in a
 state of flux. We experienced a situation where Indias economic growth
 rate was lower than what had been projected, as a sequel to the global
 financial performance.
 
 World Economy:
 
 Global growth attained an annualized rate of 4.3 percent in the first
 quarter of 2011. The growth is not expected to sustain across the
 balance quarters due to unexpected events like earthquakes and tsunamis
 which hit the Japanese economy. The supply disruptions effect lowered
 the industrial production, consumer sentiment and spending.  Higher
 commodity prices pushed up the global inflation to 4 percent in the
 first quarter of 2011, from 3½ percent in the last quarter of 2010.
 This lead to lower growth in the US economy. However, the fundamental
 drivers of growth, like overall accommodative macroeconomic conditions,
 pent-up demand for consumer durables and investment and strong
 potential growth in emerging economies, remain in place.
 
 Growth in advanced economies is projected to average about 2½ percent
 during 2011-12. This will represent a modest deceleration from an
 average of about 3 percent in 2010. Growth in emerging and developing
 economies is expected to be 6½ percent during 2011-12, compared with
 about 7½ percent in 2010.
 
 Over all, the world economy is expected to clock a growth rate of 4.2%
 this year.
 
 India in 2011-12
 
 High inflation and rising interest rates will weigh heavily on the
 overall growth in 2011-12. Elevated crude prices pose a further
 downside to overall growth. This may pull down both, investment and
 consumption growth.
 
 Agriculture growth, in spite of a normal monsoon, would decline given a
 higher base. Therefore, expect GDP growth to moderate from an estimated
 8.6 per cent in 2010-11 to settle in a range of 7.7 to 8.0 per cent in
 2011-12.
 
 Capital flows are expected to remain robust in 2011-12 led by higher
 interest rates and robust economic growth in India vis-à-vis the West.
 However, the pace of appreciation is expected to remain uneven and a
 bit lower than what was witnessed during 2010-11. Rupee is expected to
 strengthen in a range of Rs 43.0-44.0 per dollar by the end of 2012.
 
 According to the 9th Annual European Attractiveness Survey by Ernst &
 Young, India will continue to be an attractive investment destination
 for global investors and Indian companies will keep up their forays of
 global expansion.
 
 Real estate sector in India
 
 According to the Department of Industrial Policy and Promotion (DIPP),
 FDI flows into housing and real estate in April-January 2010-11 stood
 at US$ 1.05 billion. Housing and real estate sector, including
 cineplex, multiplex, integrated townships and commercial complexes
 attracted a cumulative foreign direct investment (FDI) worth US$ 9,405
 mn. from April 2000 to January 2011.
 
 The real estate sector in India is witnessing increasing recognition as
 an infrastructure service which is driving the economic growth engine
 of the country. India has the potential to attract investments in the
 real estate sector on account of strong economic growth and a
 developing and lucrative real estate market. It is the most viable
 investment destination in real estate, according to a research report
 by PricewaterhouseCoopers (PwC) and Urban Land Institute (ULI).
 
 A report by International rating agency Fitch Ratings, says, that the
 high growth in the Indian economy will drive the demand for residential
 units, which in turn will drive the real estate sector in the
 medium-term. Residential property prices have stabilized and are deemed
 attractive for investors. With attractive pricing and innovation in
 construction technology and variety of designs, overseas investors are
 taking a fresh look at India as a unique market in which they can
 invest.
 
 Foreign direct investment (FDI) in the Indian real estate sector is
 estimated to increase to US$ 25 billion in the next 10 years, from the
 present US$ 4 billion.
 
 Peninsula Land: marching ahead
 
 During the year, PLL accelerated and moved to the next phase of growth.
 The company launched premium residential projects in Nasik and Goa.
 
 In the last one year, the company focused on execution and completed
 most of the projects in Mumbai. Ashok Gardens, a residential project at
 Sewri was completed and handed over to the customers. Another
 commercial project, Peninsula Business Park at Lower Parel, is expected
 to be completed in the next few months. Work on Peninsula Technopark at
 Kurla is progressing as per schedule.
 
 Till date, the company has executed 4.2 mn sq ft of development in the
 residential and commercial segments.  Another 3 mn sq ft of development
 is under execution in Mumbai, Goa and Nasik.
 
 Even as execution remained our priority, the company acquired fresh
 land parcels in Mumbai as well as in the West and South of India. PLL
 spent about Rs 1200 crores in acquiring land parcels in Mumbai,
 Alibaug, Lonavala, Hyderabad and Bangalore in the last 18 months.
 
 With this, the current land bank with the company aggregates to over
 500 acres. We will continue to acquire land parcels with a development
 horizon of 3-5 years.
 
 Our philosophy to not take undue risks has helped us and today we are
 not over-leveraged in any way.
 
 Peninsula Land is in a strong financial position with a surplus of over
 Rs 500 crore in cash. This is in addition to one building in Peninsula
 Business Park which is complete but not monetized.
 
 Outlook
 
 Peninsula Land is on an accelerated growth path. With a solid
 foundation and sound business strategy, the company has embarked on the
 second phase of growth. We will continue to focus on timely completion
 of our projects which will further strengthen our cash flows.  We will
 also add to our bank of land parcels and be on the lookout for more
 land at the right price.
 
 Last but not the least, let me thank you all for the support you have
 rendered that has enabled us to move closer to our goal. I am confident
 that this continued support will enable us to scale new heights.
 
 Yours sincerely
 
 Urvi Piramal