Dear shareholders,
 
 From times immemorial, agriculture and construction have been the prime
 instruments to drive the development and prosperity of society where
 construction, in the form of housing, infrastructure, industrial,
 defense system has contributed stupendously. Benevolent and wises,
 kings and comrades have invested substantially in infrastructure
 development in the past, an example of which is the GT Road initiated
 by Hindu King Chandra Gupta Maurya /Sher Shah Suri.
 
 Post-Liberalization, in the last decade, the Indian economy has grown
 at the rate of 8% p.a. on an average, which is the cause and effect of
 increasing construction activities. We noticed a spurt in the
 development of infrastructure, industrial and housing construction,
 which needs to grow 14%-15% annually, to sustain the 8% plus annual GDP
 growth.
 
 Of-late, the rate of growth in construction activity seems to have
 slowed down, be it in the sector of Power, Railways, Ports, Roads,
 Urban Infrastructure or Housing. Te targets set by the Planning
 Commission have been under-achieved. Tis scenario started with the
 financial break-down in the leading financial institutions of America and
 Europe. Although, India was comparatively less affected by this
 downturn, still the rate of growth slowed down.
 
 The Government expenditure on infrastructure construction has come down.
 The socio-political issues, environmental issues, governance issues have
 considerably impeded the decision making and infra spending. The high
 rate of inflation and subsequently growing interest rates has
 contributed to less investment in construction activities. The
 spill-over effect of the global recessionary trends , the financial
 crunch, dear- money policy, elongated working capital cycle, reduced
 demand, regulatory delays in approvals, complex land acquisition
 regulations and increased competition have impacted the construction
 industry in general and our Company is no exception.
 
 Fortunately, Simplex was structured to meet these type of challenges.
 Our business model is broad - based and diversified over the years, in 9
 construction verticals and geographies pan - India and overseas, adding
 projects in Bangladesh, Middle East countries and Ethiopia.  The
 strategy has borne good dividends both during the good and bad cycles.
 The overseas share in the total revenue had grown to almost 30% in FY 08
 and FY 09, propelling the overall growth of nearly 65% each year.
 Tereafter, the overseas share has come down to 13% in FY 11, bringing
 down the overall growth rate to just below 10%, despite healthy growth
 in domestic sales.
 
 The region around India, Middle East upto Europe have developed at a
 very fast pace.The emergence of multiple growth centers acted as a
 self-generating engine to increase the overall momentum
 
 of the economy. Along with a conducive environment, the improvement in
 transportation, communication and technology, forced the lesser
 developed regions to unfold their domain and India was no exception. The
 large population, the favorable demographics, the abundance of natural
 resources, talent and with the Indian economy starting on a low base,
 all the factors will impel this region to grow deliberately, for a long
 time.
 
 A paradigm shift is taking place with more foreign players coming in
 the market and with increase in competition. To meet the external
 challenges, we are in the process of building up our in-house
 capability in further strengthening and improving the internal
 processes as well as the business model. Tough the environment for
 growth is conducive, still, it is the survival of the fittest. The
 increased use of ICT related technologies such as ERP, its different
 modules in accounts, materials, receivables, plant management, project
 execution and progress monitoring have gone a long way in helping us
 improve our processes, monitoring and control of vast numbers of job
 sites. The IT enabled software tools have revolutionized the design,
 planning process, MIS and is helping us integrate the functional
 components in an effective manner with the help of capable developments
 and an implementation team.
 
 We have pitched in with a skill development mission aiming to have a
 pool of trained and skilled manpower.We have taken up HR practices like
 training, employee mapping and sourcing of young talent to strengthen
 our HR functions. We are working towards attitude development and
 improving our work environment. As a CSR initiative, we have also
 started imparting training to unskilled workers to make them skilled,
 more productive, enhance their employability and earning potential and
 to tide over the manpower shortages at various times in different
 pockets. All these initiatives help us manage over 175 ongoing projects
 simultaneously & across geographies.
 
 Our Research & Development activities span across construction
 technology, methodology, materials, machines and manpower. We are
 re-energizing our R & D focus and efforts to confront complex
 construction challenges, enhance productivity, efficiency, wastage
 reduction, quality improvement, improvement of health, safety and
 environment. We use R & D to modify imported equipment to adapt to
 local conditions and develop spare parts for cost efficiency. We are
 continuously evolving strategies to improve the working of the Company
 in terms of automation and shorter delivery cycles. New technologies
 such as off-site production, pre - fabrication technology, pre - cast
 technology, pre - engineered solutions, improvements in shuttering and
 scaffolding systems, etc., helps us reduce our direct cost.
 
 We have identified and pursued some more growth opportunities in the
 areas of power transmission and real estate development.  We are also
 participating in bidding for roads and power transmission projects,
 under Public – Private Partnership (PPP) model with a view to improve
 our long term cash–flows and profits.We are venturing into new project
 delivery systems such as the BOOT project, BOT project and have also
 started letting out spare plants on rent. We are focusing on our
 financial model, cashflow and interest rates with better utilization of
 money.
 
 During the year, our construction business, on a consolidated basis,
 has recorded the highest ever order inflow of Rs. 83823 mn increasing
 the order book by 28% to Rs.147070 mn, last year''s figure being
 Rs.114910 mn. The healthy order books and repeated orders from large
 clients, reflects the confidence reposed in us. The turnover for the
 financial year stood at Rs. 47497 mn as against Rs. 44435 mn in the
 previous year, registering a modest growth of 7%. It is pertinent that
 the domestic turnover grew by 23% to account for 87% share. To reckon,
 the year 2010 - 2011 saw us building on our strengths in quantitative
 terms.
 
 Along with the size, the nature of the projects we are executing has
 undergone a sea-change in recent years, being quite diversified and
 complex, for which we are looking for collaborations with foreign
 companies to execute the projects.  The award of the 117- storey
 residential tower in Mumbai, “World One (King Tower) stated to be the
 World''s tallest residential building is a testimony of the faith
 reposed in our skills. We are also constructing the Durgapur Airport
 for Bengal Aerotropolis consortium on a design and EPC basis. The
 recently completed work on Dahej port, featuring deep steel piles is
 yet another example of our expertise. Simplex is involved in metro rail
 transport projects in almost all the major cities.We have constructed
 India''s longest flyover of 11.5 km in Hyderabad and are in the process
 of constructing a 9 km long flyover in Bangladesh.
 
 To conclude, I would like to record my gratitude to all employees for
 the commitment and hard work they have exhibited in obtaining, managing
 and executing projects, despite many challenges. I would also like to
 thank business associates, lenders, customers, auditors, consultants
 and shareholders for their abiding faith in us. Finally, I am indebted
 to the Members of the Board for guiding us with wisdom. Tank you all
 for making Simplex Infrastructures what it is today.
 
 Tank You
 
 B. D. Mundhra
 
 Chairman and Managing Director