Dear Shaheholders,
 
 The evolution in the external environment and the internal dynamics are
 just right to pave the way for overall growth across the foreseeable
 future. It may also be fair to state that the seeds of growth have
 already been sown.  What you witness today is just the beginning of
 growth in the company.
 
 Dear Shareholders,
 
 It gives me great pleasure to outline the reasons for optimism of the
 young and spirited demerged RDB Realty and Infrastructure Ltd in its
 second year of existence.
 
 We finished 2010-11 with all-round growth reflected in an increase in
 our topline from Rs.44.04 cr to Rs.65.39 cr.  Operating profit increased
 from Rs.8.18 crtoRs.11.83 cr, EBDIT increased from Rs.8.65 crtoRs.12.19 cr and
 bottomline increased from Rs.5.41 cr to Rs.6.13 cr. Besides, we launched
 more than 25 lakh sq. ft. of additional saleable space through RDB
 Realty and Infrastructure Limited along with its subsidiaries.
 
 However, the most prominent initiative we undertook during the year
 under review was the de-merger of RDB Industries Limited (now NTC
 Industries Ltd.).
 
 Both our tobacco and real estate businesses were growing demanding
 greater focus and prioritization on individual levels. The businesses
 also needed to be correctly assessed and understood for them to be
 aligned to domestic and international benchmarks. The strategies for
 both verticals needed to be more defined and teams more structured.
 Also, different management teams at the helm to navigate the individual
 courses of the two verticals is a positive outcome of this demerger.
 
 Our presence in tier-ll and tier-Ill cities has provided us with a
 sustainable growth foundation. As a practice, RDB has always focused on
 tier-ll and tier-Ill cities and on the semi- urban target segment that
 had huge untapped potential.  Land acquisitions in these locations were
 cheaper, making it possible for us to scale at a relatively low cost.
 We leveraged our growing brand to accelerate property sale on the one
 hand and generate a steady rental income out of property leases on the
 other.
 
 We incorporated a new Subsidiary with Legend group of Hyderabad
 wfiereby our holding being 51%. Through this subsidiary we launched new
 projects such as Harmony, Coconut Grove, Marie Gold, Mint, Blue Hope,
 Dawn and Melno Park with total area under construction being about 30
 lakh sq. ft. During the year we bagged prestigious contract from
 Ministry of Defense to Construct Dewelling Unit for Navy at Chennai.
 
 We have plans to diversify into hospitality sector in coming years as
 we entered into an MOU with tourism Department of Government of
 Gujarat.
 
 The outlook for the company is favorable across the medium and the
 long-term. We are optimistic of achieving a consolidated turnover of
 Rs.125 cr in the Financial year 2011-12.1 take this opportunity to thank
 all those who contributed to the company''s growth - customers,
 employees, partners, suppliers and community members.
 
 Sincerely,
 
 Sunder Lai Dugar
 
 Chairman and Managing Director