Dear Shareholders
 
 It gives me great pleasure to share with you the highlights of our
 Company''s performance during the year 2011-12.
 
 The Company in recent years has expanded its business landscape from
 power generation, distribution, transmission and trading to
 infrastructure sectors such as roads, metros, airports and has made
 large investments in these areas.
 
 I am glad to inform you that the Company is engaged in developing two
 metro rail projects in Mumbai and is already operating the Airport
 Metro Express in Delhi; It has been awarded
 
 II road projects with total length of 1,000 kms; is maintaining five
 airports in Maharashtra and is developing two cement plants of five
 million tons each in Maharashtra and Madhya Pradesh. I am sure, the
 progress being achieved by your Company would bring in vibrancy and
 growth in the infrastructure sector and contribute in the growth of the
 economy..
 
 Performance Review
 
 I am happy to share with you the highlights of our financial and
 operational performance during the year 2011-12
 
 - Totallncome of Rs. 18,615 crore (US$ 3.7 billion), as against Rs. 10,210
 crore in the previous financial year.
 
 - Cash Profit of Rs. 2,619 crore (US$ 515 million) against Rs. 1,336
 crore in the previous financial year.
 
 - Net Profit of Rs. 2,000 crore (US$ 393.1 7 million) against Rs. 1,081
 crore in the previous financial year
 
 - Cash Earnings Per Share for the year of Rs. 99 (US$ 1.9) against Rs. 53
 in the previous financial year.
 
 - Earnings Per Share (EPS) of Rs. 76 (US$ 1.5) against Rs. 43 in the
 previous financial year.
 
 With a net worth of about Rs. 18,541 crore (US$ 3.6 billion), Reliance
 Infrastructure ranks among the top performing Indian private sector
 companies in the country.
 
 Our group revenues stand at about Rs. 35,570 crore (US$ 7 billion), while
 our gross fixed assets amount to Rs. 29,830 crore (US$ 5.9 billion).
 
 Buy-back of shares
 
 The Company by declaring a buy-back programme during the last year, has
 ensured that each of your share becomes more valuable and represents a
 greater percentage of equity in the company. This is in keeping with
 our overriding philosophy of creating value for our shareholders. The
 Company bought-back 44,30,262 equity shares of an aggregate value of Rs.
 234.88 crore representing 1.66 per cent of the pre buy-back paid up
 equity shares at an average price of Rs. 528.91 per equity share.
 
 Power generation, transmission and distribution Power Generation
 
 Dahanu Thermal Power Station (DTPS) achieved Plant Load Factor (PLF) of
 more than 100 per cent, The power plant has been operating with a PLF
 of more than 100 per cent consecutively for the last six years and
 achieved this unique distinction eight times in overall, since
 inception. The Dahanu Thermal Power Station has emerged as the
 country''s best thermal power plant with respect to various operating
 plant parameters such as PLF, availability, heat rate and auxiliary
 power consumption. All the power stations, viz. DTPS, Samalkot Power
 Station and Goa Power Station continue to pursue various six sigma
 quality initiatives for continual improvement.
 
 Power Transmission
 
 I am glad to inform you that six transmission lines associated with the
 Western Region System Strengthening Project with a cumulative length of
 about 1,450 ckt kms out of the total length of 3,000 ckt kms have been
 commissioned so far and are being successfully operated by Reliance
 Power Transmission Limited (RPTL). With the commissioning of these
 lines, RPTL has become the first ever private transmission licensee to
 build, own and operate the interstate transmission lines in the
 country.  RPTL has made significant progress on the remaining lines of
 the project and they are expected to be commissioned during the
 financial year 2012-13.
 
 Engineering activities for the Parbati Koldam Transmission Line project
 being executed in joint venture with Power Grid Corporation of India
 Limited have been completed. Significant progress has been made in
 implementing the project and the project is scheduled to be
 commissioned by the end of 2012- 13.
 
 The Company incurred capital expenditure of Rs. 324 crore during 2011-12
 for strengthening and augmenting the transmission network in Mumbai.
 The Company has been granted a transmission licence in Mumbai
 distribution area for a period of 25 years with effect from August 16,
 2011.
 
 Power Distribution
 
 Maharashtra Electricity Regulatory Commission (MERC), being satisfied
 with the power procurement plan and the management and technical
 expertise of the Company granted a fresh distribution licence for the
 Company for a period of 25 years from August 16, 2011. The
 observations made by the MERC is a testimony to the Company''s inherent
 strength and its track record of serving millions of industrial,
 commercial and residential consumers in Mumbai, benchmarked to
 international standards of quality, operational performance, efficiency
 and customer care.
 
 The Company achieved the distinction of consistently operating its
 distribution network at 99.98 per cent availability in Mumbai.  The
 Company, through customer centric initiatives has been providing
 best-in-class services to its customers in the areas of billing,
 metering, payment mode, access to billing information, speedy redressal
 of grievances and energy audit service to its consumers. The Company
 continues to focus on system loss through a variety of technical and
 physical means and has one of the lowest system losses in the country.
 
 The Delhi distribution companies, viz. BSES Rajdhani Power Limited
 (BRPL) and BSES Yamuna Power Limited (BYPL) are implementing a series
 of measures to improve customer service, and to reduce aggregate
 technical and commercial (AT&C) losses so as to achieve enhanced
 customer satisfaction. The AT&C losses have declined to 17.81 per cent
 in BRPL and 17.84 per cent in BYPL which were as high as at 51 percent
 in BRPL and 63 per cent in BYPL when these Discoms were taken over in
 2002-03. The reliability index too had gone up from a common average of
 about 88.00 to 99.85 in BRPL and 99.91 in BYPL.
 
 Power Trading
 
 Reliance Energy Trading Limited (RETL), the trading arm of the Company,
 is a professional member of power exchanges with a significant market
 share of exchanged traded volume. RETL apart from being engaged in
 trading of power from captive/ independent power plants is also
 targeting industrial/open- access consumers in several States as also
 exploring options in trading of renewable energy.
 
 The EPC Business
 
 The Engineering, Procurement and Construction (EPC) Division has
 achieved a turnover of Rs. 11,689 crore during the year. It has a robust
 order book position of Rs. 17,280 crore as of March 31, 2012.  The
 Division over the years has emerged as from being a limited work
 execution provider to a total solution provider in the Indian power
 sector. The Division''s excellent engineering capabilities and
 integrated project management and control system have been contributing
 significantly to achieve faster project implementation at optimum cost
 and better quality.
 
 Infrastructure Projects
 
 Road Projects
 
 The Company through its special purpose vehicles has been developing 1
 1 road projects with capital outlay of about Rs. 12,000 crore of which
 five projects have commenced generating revenues and additional six
 projects would start generating revenue shortly. The company continues
 to explore opportunities in the road sector by shortlisting 21 projects
 worth Rs. 40,000 crore for bidding.
 
 The Company has developed the Enterprise Road Business Management
 system (ERMS) which is a bundled package comprising of real time toll
 monitoring, accident reporting, enterprise reporting, environment and
 operation and maintenance aspects of business.
 
 Metro Projects
 
 Delhi Airport Metro Express Line was commissioned within a record time
 of 27 months from the date of signing of the concession agreement,
 reducing travel time to airport to mere 18 minutes. The Line provides
 unique services to the customers, viz. check-in for both domestic and
 international travellers, integrating baggage handling with the system
 at the airport for seamless transfer of luggage.
 
 The Mumbai Metro I Versova-Andheri-Ghatkopar Mass Rapid Transit System
 (MRTS) has been making steady progress and is scheduled to be
 commissioned ahead of the contractual commissioning date. The line will
 result in reduced travel time from 120 minutes to about 20 minutes
 along with improved travelling experience.
 
 Cement Business
 
 Reliance Cement Company Private Limited (RCCPL), subsidiary of the
 Company, has achieved certain milestones towards setting up two plants,
 one in Maihar, Madhya Pradesh and the other in Mukutban, Maharashtra.
 The construction of the satellite grinding unit at Butibori (Nagpur),
 linked to the Mukutban Project is nearing completion and is expected to
 commence commercial production in the later half of the current year.
 In line with RCCPL''s vision to set up cement projects across India, it
 has applied for mining leases/prospecting licenses in various parts of
 India.
 
 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 continued
 relevance, effectiveness and responsiveness to the needs of investors,
 both local and global, and all other stakeholders.
 
 Social Commitments
 
 The Company places high importance to the development of the community
 in and around our areas of businesses. The primary focus of social
 welfare and community development measures is on health care and
 education. We are committed to improving the quality of life in the
 communities in which we operate and to contributing to the overall well
 being of under privileged citizens.
 
 Awards and Recognitions
 
 It is a matter of pride that our company continues to receive numerous
 awards in recognition of its outstanding performance in various fields.
 This is in recognition of the passion for quality and excellence
 exhibited by various Divisions of the Company.  These accolades cover a
 wide gamut of specific areas including environmental management, energy
 conservation, water management, safety record, pollution control,
 quality leadership and corporate social responsibility.
 
 Our Commitment
 
 Our vision is continued growth and improved operational efficiency. Our
 founder, the legendary Shri Dhirubhai Ambani, gave us a simple mantra;
 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