Dear Shareholders,
 
 The year 2010-11 took off where the previous year ended - in an upbeat
 mode - but as the year progressed, uncertainties in the domestic
 economy emerged. Among the factors that have led to moderation of
 growth are higher inflation, higher interest rates that led to reduced
 liquidity, lower consumption, unabated increase in commodity prices and
 other input costs.
 
 However, our order intake of the past two years, which has remained
 stable, is evidence of the fact that Siemens Ltd. came out of the
 economic crisis of 2007-08 stronger. Since a majority of our revenues
 are generated from the domestic business, our steady financial
 performance also proved that the Indian economy is indeed resilient
 compared to the global economy. We built capabilities oriented toward
 making us more customer-focused, worked on strengthening internal
 processes and streamlined the organization to increase our
 competitiveness. These initiatives will enable us to sustain our growth
 path.
 
 It is significant to note that the company''s parent Siemens AG increased
 its stake from 55% to 75% earlier in the year through an investment of
 approximately 1 billion Euros. This is a clear message that Siemens
 Ltd. and the Indian market will play a greater role in Siemens
 worldwide.
 
 Performance Highlights
 
 All our three Sectors performed satisfactorily despite stiff
 competition and pricing pressure. For the financial year ended
 September 30, 2011, Sales rose by 28% to Rs 11,941.9 crores for the year
 ended September 30, 2011, as compared to Rs 9,315.2 crores in the
 previous year.
 
 The Company received New Orders valued atRs 12,288.6 crores, a marginal
 1% drop in the face of tough market conditions in the 12 months ended
 September 30,2011, as compared toRs 12,430.5 crores in the previous
 year. On a comparable basis, though, and after excluding the impact of
 two Mega Projects awarded by Torrent Power, the UNO SUGEN and DGen, and
 from the Qatar General Water & Electricity Corporation (Kahramaa) in
 the previous and current periods, Orders of our base business grew by
 25%.
 
 The unexecuted order value as of September 30, 2011 stood atRs 13,921.3
 crores - a rise of 2% as compared to Rs 13,583.9 crores in the previous
 year.
 
 Profit from Operations was stable at Rs 1,19 7.4 crores, as compared to
 Rs 1191.7 crores in the previous year.
 
 For the year ended September 30,2011, the Company''s Profit before Tax
 stood atRs 1,275 crores, as compared to Rs 1,258.7 crores in the previous
 year. The Profit after Tax also stood atRs 845.4 crores as compared to Rs
 827.2 crores in the previous year. Please note that our profits are
 strictly not comparable to last year''s financials as in the last year
 Group companies - Siemens Building Technologies Pvt. Ltd., Vista
 Security Technique Pvt. Ltd., Siemens Healthcare Diagnostics Ltd. and
 Siemens Rolling Stock Pvt. Ltd. - were merged into Siemens Ltd.
 
 The Board of Directors has recommended a dividend of Rs 61- for every
 equity share of Rs 21- for the financial year ended September 2011.
 During the previous fiscal, the Company had paid a dividend ofRs 5/- for
 every equity share ofRs 2/-.
 
 Performance Analysis
 
 Operationally, all three Sectors - Energy, Healthcare and Industry -
 performed well, with many business units maintaining their leadership
 positions in the markets they operate in.
 
 Among the maj or achievements during the past year, the Energy Sector
 rolled out its 100th gas-insulated switchgear (GIS) substation from its
 factory in Aurangabad. The state-of-the-art factory has achieved a
 distinction by supplying the complete range of GIS, starting from 72.5
 kV up to 420 kV in a short span of time. The Energy Sector also
 launched a new wind turbine for the Indian market. The new product is
 ideal for areas with low-speed winds and for customers engaged in power
 generation.
 
 The Industry Sector executed an order for a special electronics package
 called Race Control Management, which is one of the most crucial parts
 of Fl race tracks, for the recently-held Fl Grand Prix - the first time
 the race was held in India. The package also included video
 surveillance and storage, digital signaling system and a time keeping
 system. Additionally, Siemens also provided the complete IT backbone
 (VOIP & Data network), information displays and media distribution
 system for the media centre for this project. The Siemens Race Control
 Management system enabled the FIA staff to control the race centrally
 
 The Mobility Division won India''s largest Cargo Handling System
 contract from Delhi Cargo Service Center. It also won contracts to
 electrify the Kolkata Metro and Chennai Metro.
 
 The Healthcare Sector continues to bring affordable healthcare into the
 Indian market. It set industry benchmarks by supplying over 100
 Magnetic Resonance Imaging (MRI) units and over 150 Computerized
 Tomography (CT) units during the year. The Imaging (HIM) and Clinical
 Products (HCP) business units also maintained their leadership
 positions in the industry. The Healthcare Sector also installed
 high-end technologies for Kovai Medical Center & Hospital such as Artis
 Zee Biplane Cathlab, MAGNETOM Skyra 3T MRI scanner, Biograph 6 PET/CT
 scanner, Symbia T SPECT-CT scanner and MAMMOMAT Inspiration mammography
 system - all the products made available in the state of Tamil Nadu for
 the first time.
 
 The year was also a successful one for the SMART initiative, the
 company''s bottom-of-the-pyramid product strategy. The company launched
 ten products with localized features during the year, winning the
 confidence of customers. Our order intake for SMART products doubled
 this year compared to last year in terms of percentage of total order
 intake.
 
 It is clear from consumption trends that more and more corporate are
 seeking sustainable solutions that are environment-friendly. Sales of
 our environmental portfolio grew by 35%.
 
 People - our Mainstays
 
 The Company''s motivated employees have been one of the most significant
 mainstays in the performance of the organization. It made consistent
 efforts to become an employer of choice, and attract, retain and
 develop its talent. I am glad to share that the Company has been
 maintaining an attrition ratio below the industry average. Apart from
 introducing high-potential recruiting initiatives such as the Siemens
 Graduate Program, the Company increased its emphasis on work-life
 balance and conducted various on-going skill and competence development
 programs. Among the significant learning and development initiatives
 were the Siemens Core Learning Programs including the Supply Chain
 Management (SCM) 3 Core Learning Program, the Sales Management Learning
 Program and the Leadership Excellence Program.
 
 The mantra for the Companys human resource department has been to
 Connect, Automate and Communicate. This effort was reflected in the
 results of the Global Engagement and Compliance Survey 2010 conducted
 to help create an inspiring and motivating work environment for its
 employees where the Company received 93% favorable responses in the
 Employee Engagement category.
 
 The Road Ahead - Outlook for Siemens Ltd.
 
 The current state of the economy, with a moderated pace of growth, is
 expected to spill over into the next financial year.
 
 Siemens Ltd. however is ideally poised to meet the infrastructure needs
 of the country through its Energy, Industry and Healthcare Sectors.
 With the creation of a fourth Sector for Infrastructure & Cities it has
 placed an added focus on the infrastructure requirements of rapidly
 growing cities and urban areas.
 
 With the Company''s continued focus on generating sustainable value to
 its customers and stakeholders, I am confident that the company will
 continue to do well.
 
 In conclusion, I would like to heartily thank the Board, the management
 and especially our dedicated employees for their consistent support and
 commitment to Siemens Ltd; as well as our esteemed customers for their
 confidence and loyalty.
 
 Deepak Parekh 
 
 Chairman