Dear Shareholders,
 
 I am extremely happy to share with you the highlights of an exciting
 and eventful year for the company Prime Focus is firmly established at
 the forefront of delivering cutting-edge and top-class creative and
 technical services in the VFX, animation and post- production space to
 the media and entertainment industry globally I am proud to say that in
 a short- span of fourteen years, Prime Focus has become a name
 synonymous with quality, innovation and committed delivery
 
 This year the company delivered sterling results.  Here are the
 highlights:
 
 - Total Income up by 12.21% to Rs. 5,17936 million
 
 - Profit After Tax (before minority interest) up by 123.87% to Rs.
 881.88 million
 
 - Net Worth up by 82.08% to Rs. 3,505.71 million
 
 - Reserves up by 87.31% to Rs. 3367.52 million
 
 We started in India in a small way in 1997. Firmly believing in our
 dreams and focused on making them come true, we have been taking steady
 strides to evolve into a truly global Visual Entertainment Services
 group. Today, we have sixteen facilities spanning three continents and
 four time zones with over 3,500 people working around the clock to
 provide our clients with an unmatched service. We are focused on our
 operations and passionate about our clients, who have been with us
 throughout these fourteen eventful years, and have grown with us. We
 are committed to delivering our loyal clients the best creativity,
 technology and services. We want them to be part of the transformation
 of our business - bringing ''home'' our learning from other parts of the
 world to help make our Indian facilities the best they can possibly be.
 India is the bedrock of the Prime Focus global offering - the
 powerhouse behind the global group.  Without India, the Prime Focus
 global offering would not exist.
 
 Over the course of last year, we have made significant investment in
 our facilities and infrastructure in India, and are committed to
 continue doing so. These investments will not only ensure that we
 continue to offer our local Indian clients a world-class service, but
 also have enormous benefits for the group globally.
 
 As part of revitalising our operations in India, we opened our new,
 state of the art, 75,000 sq.ft. global headquarters in Mumbai, complete
 with 7 theatres and over 600 artist seats offering a complete and
 comprehensive end-to-end solution. In December 2010, we announced the
 opening of a 50,000 sq.ft.  Film VFX and 3D conversion facility at
 Chandigarh.  With a 3,000 artist capacity, this facility marks the
 major expansion in capacity to cater for both domestic and
 international film projects, whilst also providing a significant number
 of new jobs for the local population. During the year, we also
 relocated the Prime Focus advertising facility from Lower Parel to
 Khar. The completely renovated Khar facility is scheduled for September
 2011 re-launch. The Mastermind building in Royal Palms, the original
 home of the Prime Focus VFX division, is also undergoing refurbishment.
 
 These initiatives continue to be spearheaded by the new CEO of Prime
 Focus India. Early in 2011, I appointed Mr. Ramki Sankaranarayanan,
 President and CEO of Prime Focus Technologies, as the new CEO of Prime
 Focus in India, in a move which saw him become responsible for all of
 the operations and business lines of Prime Focus in India, in addition
 to maintaining his leadership of Prime Focus Technologies. This renewed
 focus is already paying dividends and I am confident that Ramki will
 continue to drive and deliver the highest levels of service to our
 clients, and returns to our investors.
 
 I have re-located to Los Angeles this year to personally direct the
 business in North America.  Prime Focus today is a name to be reckoned
 with in the global media and entertainment industry. With our sustained
 investment in facilities and people, and with our commitment and focus
 to delivering world- class creativity, technology and services, Prime
 Focus is ready for its next phase of growth.
 
 I thank all our clients, our investors, our vendors, and most of all,
 our people who have always remained focused on delivering matchless
 performance day on day, month on month, year on year.
 
 NamitMalhotra 
 
 Managing Director