My dear fellow Shareowners,
 
 It gives me great pleasure to share with you the highlights of our
 Company''s performance during the year 2010-11.  I am delighted to
 inform you that Reliance infrastructure, one of the country''s fastest
 growing companies in the infrastructure sector, continues to play a
 pivotal role in driving the India growth story. Our rapid strides
 towards achieving leadership positions across all major infrastructure
 domains, is leading the way in creating inclusive growth for the nation
 and superior returns for stakeholders.
 
 Over the past few years, the infrastructure sector in India has
 undergone a paradigm shift. The Government, for long the lead direct
 investor in infrastructure creation, has iincreasingly played the role
 of a facilitator, focusing its attention iinstead on formulating the
 appropriate policy framework for attracting privateinvestments into
 the sector through the public-private- partnership model.
 
 The private sector has responded to this shift in economic perspective
 with a great deal of excitement and alacrity as is evident from its
 growing participation in the entire spectrum of infrastructure projects,
 be it roads, ports, airports, urban utilities and transport systems or
 power.
 
 I am proud to report that Reliance infrastructure is now the largest
 private sector infrastructure developer in India. We have made
 significant strides in the development of roads and highways, metro
 rails and other mass rapid transit systems, sea link, airports, cement,
 etc. We have already commissioned or are in the process of doing so
 over 2 dozen large infrastructure projects including 11 road projects,
 3 metro rails, 5 transmission lines, 5 brown field airports, 2 cement
 plants and the Mumbaii sea link.
 
 We are at the threshold of an exciting journey that will take us to
 even greater heights. I seek your continued support in this mission.
 
 Performance Review
 
 I am happy to share with you the highlights of our financial and
 operational performance during the year 2010-11.
 
 - Total income ofRs. 10,266 crore (US$ 2.3 billion), as against Rs. 
 10,908 crore in the previous financial year.
 
 - Cash Profit of Rs. 1,336 crore (US$ 300 million) against Rs. 1,435 crore
 in the previous financial year.
 
 - Net Profit of Rs. 1,081 crore (US$ 242 million) against Rs. 1,152 crore
 in the previous financial year
 
 - Cash Earnings Per Share for the year of Rs. 50 (US$ 1.1) against Rs. 59
 in the previous financial year
 
 - Earnings Per Share (EPS) of Rs. 43 (US$ 1) against Rs. 51 in the previous
 financial year.
 
 With a net worth of about Rs. 17,670 crore (US$ 4 billion), Reliance
 infrastructure ranks among the top performing Indian private sector
 companies in the country
 
 Our group revenues stand at about Rs. 28,270 crore (US.34 billion),
 while our gross fixed assets amount to Rs. 26,050 crore (US$ 5.84
 billion).
 
 Buy-back of Shares
 
 In keeping with our overriding philosophy of creating value for our
 investors, we decided to utilize a part of our accumulated surpluses
 for buy-back of shares, Improving in the process our return on equity.
 Our Company has bought back 18 lakh equity shares for an aggregate
 value of Rs. 115.58 crore up to May 27, 2011.
 
 Power feneration, transmission and distribution Power Generation
 
 Our power generation units at Dahanu, Samalkot, Goa and Koch continue
 to demonstrate significant improvements across major operational,
 environmental and safety performance parameters The Dahanu Thermal
 Power Station, the flagship plant of the Company, continues to operate
 at Plant Load Factor of over 100 per cent over the last eight years
 while all our other power plants recorded plant availability in the
 range of over 90 to 96 per cent.  The Dahanu plant continues to make
 significant progress on six sigma quality iinitiatives for all round
 improvement in business processes. During the year, the Dahanu plant
 iiimplemented the Energy Management system, BS EN 16001 -2009, Power
 Transmission
 
 The Company is developing five transmission projects worth about Rs.
 7,000 crore, making it the largest private player in the transmission
 sector. Reliance Power Transmission Limited (RPTL) the transmission arm
 of the Company, has emerged as the successful bidder in four of the
 eight inter-state transmission projects notified by the Ministry of
 Power, Government of India RPTL will actively participate in the
 bidding for new projects worth approximatelyRs. 8,000 crore so far
 notified by the Ministry of Power.
 
 RPTL has completed two transmission lines of 440 ckt kms associated
 with the Western Region System Strengthening Scheme-II with line length
 of 116 kms. These are the first set of 100 per cent privately owned
 extra high voltage transmission line in India to achieve commercial
 operation. The first line was commissioned in a record of 15 months
 and ahead of schedule.
 
 The Company has also made substantial progress in the remaining
 transmission projects including the Parbati Koldam 40 kV transmission
 line currently being executed by our joint venture company with Power
 Grid Corporation of India Limited and in which RInfra holds 74 per cent
 equity stake Power Distribution
 
 Our Company''s distribution network in Mumbai continues to enjoy the
 distinction of consistently operating its network at 99.98 per cent
 reliability. The Company''s distribution license mentions the terminal
 date as August 15, 2011. The Company has submitted an application to
 Maharashtra Electricity Regulatory Commission (MERC) for a firesh
 license for distribution of electricity. With its consistent
 performance over the last eight decades and world class quality and
 system reliability, the Company is confident that MERC would grant the
 distribution license and ensure that we continue to serve the consumers
 of Mumbai suburbs with renewed vigour and commitment. The Company has
 also initiated various energy conservation and energy efficiency
 programmes under Demand Side Management to create greater social
 awareness on the iiimportance of smarter usage and conservation of
 energy. To bridge the shortfall in the supply of power, the Company has
 initiated procurement of power for medium and long term through a
 competitive bidding process Our two power distribution companies in
 Delhi, BSES Rajdhan Power Limited (BRPL) and BSES Yamuna Power Limited
 (BYPL) again clocked strong operating numbers backed by improvement
 across all major performance parameters. These Discoms have succeeded
 in achieving significant reduction of AT&C losses While BRPL reduced
 its losses from 19.03 per cent to 16.83 per cent, BYPL brought them
 down from 23.11 per cent to 19.89 per cent during FY11. This
 continuing reduction in losses entitles the two companies to a
 performance incentive from the state regulator for the fourth year in a
 row.
 
 I am also proud to report that these Discoms played a pivotal role in
 the successful organization of the Commonwealth Games by ensuring
 uninterrupted power supply, a fact widely acknowledged and appreciated
 by the organizers as well as the Government.  Power Trading
 
 Reliance Energy Trading Limited (RETL), the trading arm of the Company,
 has positioned itself as a favoured trader for trading of power from
 captive / independent power plants and has been consistently ranked
 among the top five trading licensees in terms of volume. RETL is also
 expecting a significant boost in volume through the trading of merchant
 power from the group''s upcoming power projects.  The EPC Business
 
 The Engineering, Procurement and Construction Division (EPC) achieved a
 turnover of Rs. 3,389 crore during the year. It has a record order book
 position of Rs. 29,635 crore as on March 31, 2011. The Division is
 equipped with the requisite expertise and experience to efficiently
 undertake large and complex EPC projects and complete them ahead of
 schedule.  We employ state-of-the-art technology in engineering design
 and project management to execute our projects. The Division is
 currently implementing 7 power projects aggregating 9,900 MW, apart
 from transmission and road projects. We are also developing
 competencies in other infrastructure sectors such as metro/mono rails,
 airports and cement plants infrastructure Projects Road Projects
 
 Our Company is now one of the largest developers of road and highway
 projects for the National Highways Authority of India (NHAI) under the
 build, own, transfer (BOT) scheme. Our roads portfolio includes 11
 projects totaling 970 kms and connecting major urban centres in 6
 States at an investment of about Rs. 12,000 crore. Three of the projects
 are operational and six more road projects will be commissioned in the
 current financial year. Construction work is in full swing at all the
 project sites. I am glad to inform you that the Company was the first
 developer to iintroduce Einterprise Toll Management System which would
 facilitate real time toll plaza monitoring, auto MIS and single console
 for the projects.  Metro Projects
 
 I am glad to inform you that our Company is today the largest
 established private player in metro rail sector in the country. The
 Delhi airport express link started commercial operations from February
 2011, the first ever public-private partnership project to become
 operational in India. The airport express link has been built in a
 record time of 27 months and connects New Delhi Railway Station to
 Dwarka via the Indira Gandhi international airport. The construction of
 Mumbai Metro Line I covering Versova-Andheri-Ghatkopar is in full swing
 and we expect to commission the corridor ahead of the contractual
 commissioning date.  For Mumbai Metro Line II covering Charkop-Bandra-
 Mankhurd corridor, financial closure has been achieved and preliminary
 work is in progress.  Cement Business
 
 Reliance Cementation Private Limited, a wholly owned subsidiary of the
 Company, is developing two cement plants of 5 million tonnes each at
 Maihar in Madhya Pradesh and Mukutban in Maharashtra respectively.
 Significant progress has been made in project related activities.
 Airport Projects
 
 Reliance Airport Developers Private Limited has been awarded lease
 rights to develop and operate 5 brownfield airports in Maharashtra. It
 is also developing an airstrip/airport at Sasan in Madhya Pradesh where
 a captive power plant is being developed by a subsidiary of Reliance
 Power.  Western fireway Sealink
 
 The Company has formed a special purpose vehicle to execute the Western
 fireway Sea Link Project which envisages operation and maintenance of
 the existing Bandra-Worli Sealink and construction of Sealink between
 Worli to Haji Ali in Mumbaii for a concession period of 40 years. The
 project is proposed to be completed within a period of 42 months from
 the date of handing over of the existing Bandra-Worli Sealink,
 Corporate Governance
 
 Rinfra has always maintained the best governance standards and
 practices by adopting, as is the norm for all constituent companies of
 the Group, the Reliance Group - Corporate Governance Policies and Code
 of Conduct. These Policies and Code prescribe a set of systems,
 processes and principles, which conform to the highest international
 standards and are reviewed periodically to ensure their continuing
 relevance, effectiveness and responsiveness to the needs of investors,
 both local and global, and all other stakeholders Social Commitments
 
 As a responsible corporate citizen, we take our social obligations
 seriously. During FY 2011, we pursued a number of welfare programmes
 aimed at Improving the quality of life of communities in and around our
 businesses. Our iinitiatives have focused on education, health, water,
 sanitation, rural development, safety and environment, giving priority
 to the needy and economically vulnerable sections of society in the
 vicinity of our power stations and contracting sites.  Awards and
 Recognitions
 
 It is a matter of pride and satisfaction that our Company has received
 several prestigious national and global awards in appreciation of our
 outstanding contribution in various fields viz. energy management and
 energy conservation, quality environment best practices, water
 management, health and safety, human resource training and development.
 Our Commitment
 
 Our founder, the legendary Shri Dhirubhai Ambani, gave us a simple
 maintra: to aspire to the highest global standards of quality,
 efficiency, operational performance and customer care. We remain
 committed to upholding that vision. Dhirubhai exhorted us to think big.
 With your continued support, we will think bigger.  Indeed not just
 bigger but better, creating ever greater value for all our
 stakeholders.
 
 Anil Dhirubhai Ambani
 
 Chairman