Dear Shareholder''s
 
 I always consider myself fortunate to have grown up, and worked so
 closely with Mr. P.N.C. Menon - our founder, mentor and my father - who
 passionately created Sobha, a brand that is today synonymous with
 excellence and trust. Right from my early years in Muscat, I could
 observe the traits that I thought made him a very unique and amazing
 personality: the sheer discipline, integrity, passion, and the equal
 love and care for family, colleagues and the community. The value
 systems that he taught me, and in which I strongly believe, have always
 helped me in my journey. On completion of nine years at SOBHA, I am
 equally humbled by the fact that you have reposed your faith in me to
 carry his glorious legacy forward. It is a great honour and
 responsibility to take over the mantle of leadership. Guided by his
 wisdom and experience, I am confident of effectively executing the
 responsibilities bestowed on me and leading the Company towards greater
 echelons of success.
 
 Our improved focus on product deliveries has reaped rich dividends with
 the cumulative execution levels of the Company leaping from 10.14
 million square feet in the year 2004-05 to 56.25 million square feet in
 the year 2012-13. The Company''s average execution of 6.25 million
 square feet for the last six years is a record in the Indian
 construction industry.
 
 Having actively diversified into new geographical territories over the
 years, SOBHA has gradually grown from being a Bangalore-based Company
 to a nationally recognised and respected player with a presence in 23
 cities and 13 states across India. We aspire to judiciously expand our
 real estate footprint in other cities like Kochi, Kozhikode, Hyderabad
 and Noida / Ghaziabad. Our foray into the space of commercial
 development will also be accelerated in the times to come.
 
 In this new phase of development, we have many opportunities ahead of
 us to leverage SOBHA''s distinct capability.  We will continue to
 solidify our position in the industry and seize every opportunity to
 build, grow and sustain.
 
 We truly believe in creating value through all-round performance. With
 an in-house design to delivery potential, SOBHA is poised for
 sustainable progress. Above and beyond the technical and economic
 quality of our projects, our goal is to enhance their social and
 environmental value by providing solutions that address the long-term
 issues facing the society as a whole. By investing in eco-design
 technologies and increasing participative innovation, we improve the
 energy and climate performance of a building.
 
 SOBHA is a company, which invests in details, however small or
 insignificant they may appear to be. The hallmark of a world-class
 product lies in its detailing. Attention to details is deeply embedded
 into our work culture, the reflection of which can be seen in the image
 of the Company as a developer of repute. We reassess our quality
 management systems and practices to make sure our work is done right
 the very first time, every single time.
 
 Our Company is a highly process-driven organisation wherein standard
 work procedures are laid down, documented, periodically monitored and
 strictly adhered to. I believe that our carefully structured, strong
 and robust business model is capable of sustaining and thriving even
 under adverse circumstances.
 
 We work hard to ensure that we are a good steward at our worksites and
 in our communities; and strive to do our bit every day. I remain
 steadfastly committed to the best-in-class community service
 initiatives that have been developed with sheer devotion and compassion
 for the needy. I will strive to further expand the reach of the
 Company''s activities in the realm of Corporate Social Responsibility
 
 The success of the Company is a testament to the talent and expertise
 of the people associated with it.  I would like to acknowledge the hard
 work, commitment, and skills of our employees who are ultimately
 responsible for executing our vision into reality. My sincere gratitude
 is also due to my colleagues on the board for their guidance and
 support.
 
 We remain fully confident of the growth potential of our businesses.
 The future is indeed more exciting today than ever. With a clear
 strategy, solid fundamentals and an active market presence in
 fast-growing cities, SOBHA is forging ahead in a changing world, fully
 prepared for the challenges of tomorrow.
 
 On behalf of our employees and customers, I thank you for your
 unflinching support. I look forward to seeing you at our annual
 shareholders''meeting on July 5th, 2013.
 
 Yours sincerely,
 
 Ravi PNC Menon