This fiscal our results reflect a gratifying year of consolidation,
 combined with growth, and continued excellence in execution. We are
 also poised to explore newer markets in our Real Estate business and
 have added new clients to our prestigious list of Contractual
 customers.
 
 Our continued focus on consolidation resulted in a net reduction in
 debt by 2,430.70 million rupees and a debt to equity ratio of 0.65 as
 on March 31, 2011 as compared to 0.85 at the beginning of the Fiscal.
 This was largely possible because we generated an operating cash flow
 of 4,143.60 million rupees which supported the repayment of loans
 during the year.
 
 On the growth front, our top-line this year, the highest in the history
 of our company, grew at 30.82 percent to 14,643.15 million rupees. We
 have continued to maintain our EBITA margins at 21 percent in spite of
 increasing input costs in our industry.
 
 FISCAL 2011: A YEAR OF CONSOLIDATION AND GROWTH.
 
 We, this year, have successfully completed and handed over 4.12 million
 square feet of residential space, and delivered 2.20 million square
 feet of contracts. Our legacy of 16 years of superior execution are
 endorsed by 262 projects measuring 42.68 million square feet. Of this,
 67 percent is completed from just the last 5 years.  This speaks
 volumes of our scaling in execution capabilities.
 
 Our excellence in execution have once again been recognized with an
 award from CNBC Awaaz for our outstanding Sobha Daffodil project in
 Bangalore. Builders Association of India and Architects, Engineers and
 Surveyors Association in Pune, have awarded our design and build
 project - Food Court 3, for our long- associated customer, Infosys. We
 are also proud to have completed to our credit, a LEED platinum eco-
 commercial building for our client, Bayer, in Noida.
 
 SOBHA IS ADMIRED FOR SUPERLATIVE DELIVERY CAPABILITIES.
 
 Of course, we have no intention of resting on our laurels now. We
 continue to seize opportunities for the future growth of our company,
 and have launched 4.30 million square feet of residential space, and
 have confirmed 11.48 million square feet of contractual orders to be
 executed. We are poised to move into newer geographies during the
 coming year, and plan on systematically scaling our operations, taking
 advantage of our strong execution track record.
 
 Over the past 16 years, one key attribute to the milestone rise of
 Sobha is our stringent focus and attention to details in every element
 of our business. It is this passion for perfection that drives us to
 deliver the best time and again. We are a team of more than 2,200 that
 believe and strictly follow the doctrine that even the smallest
 consideration makes the largest difference.
 
 WE BELIEVE
 
 DETAILS MAKE THE DIFFERENCE.
 
 Our investments in state of the art manufacturing units - Interiors,
 Glazing and Metal work, and Concrete products have further enhanced our
 ability to embrace our culture of detailing.
 
 On our social responsibility initiatives: at our Sobha Academy,
 Hermitage and Health Care we spend considerable effort on all the finer
 aspects to ensure we provide best-in-class facilities, and make optimum
 utilization of these centers for the benefit of our society.
 
 The task at hand, now and in the future, is a sustained focus and sharp
 eye for detail in our journey to deliver the best.
 
 Yours sincerely, 
 
 PNC Menon