Dear Shareholders,
 
 Our passion to deliver excellence continues. We started the year on a
 high, and closed it on an even higher note.  More excitement, more
 happiness, more offerings was the sole mantra for us throughout the
 year and after clocking exceptional numbers in the previous year, we
 continued to surge forward, notching many more milestones and
 recognitions in F.Y. 2011-12.
 
 Despite the odds, the challenges
 
 This was a year of global challenges and uncertainties.  Events like
 natural disaster in Japan, growing unemployment in the US, Euro-zone
 crisis and political and economic turmoil in the Middle East and North
 African states have had a detrimental repercussion.  Volatility in
 commodity prices and disruptions to supply chains impacted businesses
 globally. These events have raised serious concerns over the stability
 of the developed nations, as the recoveries in these economies have
 stalled and governments and consumers have deleveraged.  Whilst this
 stumbling global recovery has seen growth estimates cut across the
 board, the transfer of economic power from mature to emerging economies
 is gaining momentum. Asia too has its own challenges. However, China
 and India have emerged as the hope for rest of the world. While it will
 take a longer time for the matured markets to reach the pre-recession
 level growth rates, a rebalancing of global economic power can be
 foreseen in the medium-term.
 
 The unbalancing effect
 
 The dual impact of higher product prices in 2011-12 driven by excise
 duty and high cotton prices along with continuing headwinds in the form
 of stubborn inflation and high interest rates have impacted the
 consumer wallet share.
 
 It would be easy to lose hope in this prevailing environment; however,
 it would be important to reiterate that the long-term prospects of the
 Indian textile (hosiery) industry remain optimistic.
 
 Factors that will accelerate demand
 
 One is optimistic of the prospects of India''s textiles sector for some
 good reasons:
 
 Surge in population : India''s population rose 181 million to 1.21
 billion in the last 10 years. Based on the existing trend, India will
 cross China''s population by 2030.
 
 Increasing affluence : India''s per capita income increased from Rs.
 31,206 in 2006-07 to Rs. 60,603 in 2011-12, resulting in increased
 disposable incomes. Besides, India''s urbanisation is expected to
 increase from 30% to 40% over the coming decade; the 2.4% CAGR is among
 the fastest urbanisation rates in the world.
 
 Growing younger: Half of India''s population is below 25. Interestingly,
 in India, the working age has declined sharply, generating higher
 disposable incomes. Close to 65% of Indians between 20-60 years are
 working, leading to higher disposable incomes and lifestyle
 aspirations.
 
 The wealth pyramid : Rural income is increasing significantly. Credible
 estimates suggest that a 1% increase in India''s rural income translates
 into US billion of buying power. Annual rural household consumption
 stands at about Rs. 50,000 - total rural consumption estimated at US0
 billion, making the rural consumption market greater than the GDP of
 Singapore and Hungary combined. Rural consumption is expected to treble
 in 10 years.
 
 These factors are expected to drive the boost the demand for knitwear
 products in India.
 
 The winning streak
 
 The worst of times often bring out the best in companies and so it was
 the same with Rupa. Despite various challenges, our Company posted
 healthy results across the board. Our Revenue grew by 9.38% to Rs. 711.00
 crores, PAT grew by 29.24% to Rs. 43.56 crores, EPS grew by 29.25% to Rs.
 5.48 per share. Our EBIDTA saw a surge of 28.65% to Rs. 91.06 crores in
 2011-12. Our Company enjoys stronger cash flows and thus on the
 backdrop of that our Company declared a 150% dividend of Rs. 1.50 per
 share.
 
 Blueprint
 
 Proximity   Innovation = Profitable growth is an equation that pretty
 much encapsulates our strategic blueprint.
 
 The proximity streak : We leveraged our sales team to reach deeper
 pockets of various markets with superior brand promotional activities
 and brand recall leading to enhanced visibility.
 
 Our distribution network comprised of more than 950 dealers &
 distributors, 2000 SKUs and are sold through 1,00,000 retail outlets in
 600 locations across the country. We widened our product offering for
 all sections of society be it mass, semi-premium and premium segments
 covering various price points.
 
 We associated with Hrithik Roshan to enhance our brand appeal and
 visibility of our Macroman-M Series brand.
 
 Innovation : Our key growth engine has been our undying passion to
 offer unique products to various customers - increasing the market size
 and our share in it. We closely follow the customer''s aspirations that
 drive market evolution. In India and across the world, customers seek
 better value, they want differentiation in the same product category.
 This has been our guiding philosophy in creating brands that customers
 love to associate with.
 
 We added a bunch of new products into our offerings, viz Euro Jeans,
 Femora, Unwind and Tots in order to peneterate the outer wear segment
 and enhance our market share.
 
 Basis of optimism
 
 Firstly, the listing of our shares at National Stock Exchange Limited
 and Bombay Stock Exchange Limited will ensure the better visibility of
 our stock, which in turn would lead to shareholder value creation.
 
 Secondly, the abatement of 55% from the maximum retail price (MRP) has
 also been raised to 70%. This would bring down the incidence of duty as
 a percentage of MRP from 4.5% to 3.6% and the impact of the same would
 be visible in the figures of 2012-13.
 
 As we enter F.Y. 2013, we do so with a stronger vision of success.
 Going ahead, we shall continue to invest, innovate and remain focused
 on providing the best possible experience to our consumers while
 delivering the maximum return to our shareholders.
 
 Nurturing relationships for a better tomorrow
 
 We continued to invest towards developing and grooming new talent. With
 the industry becoming significantly competitive, we have taken
 appropriate measures to maintain a high retention rate. Besides, we
 continued to enhance our focus on the community initiatives,
 environment monitoring, health, safety and ethical governance to
 maintain a sustainable business practice.
 
 Message to shareholders
 
 The value that we deliver to shareholders will now be accelerated by a
 significant increase in production volumes, a widening consumer
 presence and rising value addition derived from new products, sizes and
 designs.
 
 Thank You,